McCargo v. New Orleans Insurance

10 Rob. 202
Supreme Court of Louisiana·Decided March 15, 1845·Published·Cited by 2 cases

Opinion

Bullakd, J.

This case, together with six others, growing out of the loss of the slaves on board the brig Creole, which was carried by the mutineers into the harbor of Nassau, in November, 1841, and which has been the subject of so much diplomatic, as well as forensic discussion, was elaborately argued last, summer, before the adjournment of the court, both by brief, and viva voce. They are actions upon several policies of insurance, underwritten by different insurance companies in this city, upon slaves shipped on board that vessel for this port. As all the cases relate to the same voyage, and all the slaves insured were lost at the same time and by the same disaster, they have all been considered together ; and it is supposed that the opinion which we are about to pronounce in one of the cases, will be decisive of all.

The first question is, what risks did the insurers assume 1 In the present case, and in three others, the terms of the policy are: “ Warranted free from elopement, insurrection, and natural death.” In one of them, to wit, Lockett v. The Firemen's Insurance Company, it is stipulated that the “insurers are not liable for suicide, mutiny, natural death, or desertion.” In the re[313] maining two cases, it is declared that the company shall not be liable for “ suicide, desertion, or natural death.”

In common parlance, there is little or no difference between mutiny and insurrection. In this very case, in the briefs of counsel, in the statements of witnesses, and -in the official correspondence, the rising of the slaves on board is called, indis, criminately, mutiny and insurrection. The parties are supposed to have had in view, the conduct of the slaves, who formed the subject of the insurance, rather than the obedience and subordination of the crew, whose forcible resistance of the authority of the master, would be mutiny, technically speaking. The only difference, therefore, in our opinion, between that case in which the word mutiny is used, and those in which the policy contains the word insurrection, is, that in the first the mutiny is clearly an excepted risk, and in the others is presented the question, much discussed at the bar, whether the expressions amount to a technical warranty, or were only intended to exempt the insurers from the risk of insurrection. On the one hand it has been contended, that it amounts to a warranty, and that the occurring of the insurrection, whether it was the cause of the loss or not, was a breach of warranty, and put an end to the policy; while, on the other hand, it is said, that the only effect of the clause was to throw the risk of loss by insurrection upon the owners, or shippers, leaving all other sea risks to be supported by the underwriters, notwithstanding the happening of the insurrection.

The word warranted is used; but there is often a warranty in form, where there is none in fact; as in the familiar instances of warranted free from average — free from detention and capture, which mean nothingmore, than that those shall not be among the perils and-losses insured against, and for which the underwriter is to be liable. Although these forms of expression (says Phillips) are sometimes spoken of as warranties, it would be absurd to consider them such in their character and construction, since in an insurance free from average, for instance, it would be adopting the doctrine, that the occurrence of the average loss would render the policy void, and consequently the happening of a loss, which is not insured against, deprive the assured [314] of the right to recover for one-that is insured against. 1 Phillips, 127.

We, therefore, view the terms of the policy as not creating a warranty, but only as exempting the insurers from any liability on account of losses which might be sustained in consequence of a mutiny, or insurrection on board; they assuming all other risks, and particularly restraints, arrests, and detentions by foreign powers, or the emancipation of the slaves by foreign interference. All the cases then, which have been argued, may be classed in two categories. 1st, those in which the underwriters assume the risk of loss from insurrection; and 2nd, those in which they are exempted from that loss, by the terms of the policy. The case now under our immediate consideration, belongs to the latter class, the defendants not being liable for insurrection, elopement, and natural death.

The great question,-therefore, upon the merits, which this case, and the others of the same class present, is, whether the loss of the slaves was caused by the insurrection, or by illegal and unauthorised interference on the part of the authorities of Nassau.

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McCargo v. New Orleans Insurance, 10 Rob. 202 (La. 1845).

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