Quillan

180 F. 681, 103 C.C.A. 647, 1910 U.S. App. LEXIS 4790
Court of Appeals for the Second Circuit·Decided July 6, 1910·No. No. 313·Published·Cited by 8 cases

Opinion

WARD, Circuit Judge.

November 25, 1905, Eleller, Hirsch & Co. chartered the schooner William J. Quillan to carry a cargo of tankage from Barren Island, N. Y., to Savannah, Ga. Tankage is a dry powder, the result of the boiling, drying, and pressing of street garbage, and is packed in bags. Heller, Hirsch & Co. bought the tankage from the manufacturer, and had themselves nothing to do with the making, bagging, or stowing of the same. It has been the subject of transportation for 25 or 30 years, and shippers and shipowners must be taken to have knowledge of its character.

Saturday, January 13th, at about 8 a. m., the schooner sailed from Barren Island with a cargo consisting of 14,515 bags. On the morn[682] ing of January 14th it w.as discovered that the cargo was on fire. Thereupon the master deviated to Norfolk as a -harbor of refuge, arriving there at 7 p. m. Sunday evening. In the course of the next day or two the city fire engines at his request poured water into the hold and extinguished the fire. Nine hundred and fifty-four bags were found to have been damaged by fire and the remainder by the water used to extinguish the .fire. The value of the water-damaged bags less the proceeds of sale was $5,714.07. The Atlantic Insurance Company, which as insurer of the cargo had paid the loss, filed this libel against the vessel, alleging that-a statement of general average which it was the duty of the vessel owners to prepare would show the amount payable by the schooner on account of the cargo sacrificed by the water damage to be $4,750 or thereabouts. The claimant denied that the shipper was entitled to contribution in general average on the ground that the cargo was not in a fit and proper condition for shipment through the neglect and fault of the shippers in failing to have it properly cured and dried out, and that its spontaneous combustion caused the fire.

The actual cause of the fire was not proved, but the district judge assumed that it was due to the nature of the goods, and, following the case of Pierce v. Winsor, 2 Cliff. 18, Fed. Cas. No. 11,150, dismissed the libel on the ground that the shipper was liable for shipping dangerous cargo, although neither he nor the carrier knew, of its dangerous .condition. Many kinds of cargo are, liable to spontaneous combustion when confined in the vessel’s hold, if they contain too much moisture, e. g., jute, cotton, lime, coal, hay, and grain. We shall consider the case upon the same assumption of facts as did the district judge.

As there is no pretense that the fire was due to the fault either of the shipper or his servants, the question whether a shipowner, constructively negligent can be brought into a general average adjustment in view of the provisions of section 4282, Rev. St. U. S.,1 limiting the liability of shipowners for damage caused by fire and of the Harter act, does not arise. We are accordingly relieved of the considerations which we lately discussed in the case of the steamship Tason, 178 Fed. 414.

The question to be determined is whether by the maritime law the shipper is deprived of the benefit of contribution in general average when the peril' is caused by a concealed defect in his shipment equally unknown to him and to the shipowner. There is very little authority upon the subject, but it has been lately considered by the Court of Appeal and the House of Fords in the case of Greenshields v. Stephens, 1 King’s Bench, 51 (1908), and Appeal Cases, 431 (1908). The fire in that case arose out of spontaneous combustion in a shipment of coal, on the Knight of the Garter. Both courts affirmed the judgment of Channell,' J., allowing contribution on. the ground that the shipper could be deprived of the benefit of contribution in general .average only when he has been guilty of actionable fault or negligence. Lord Chief Justice Alverstone and Lord Justices Bulkeley and Ken:nedy in the Court of Appeal and the Earl of Halsbury and Lords Ash-[683] bourne, Macnaghten, Collins, and James in the House of Lords were unanimously of this opinion. Mr. Justice Kennedy said at pages 61, 62, 1 King’s Bench (1908):

“In the present case there is no actionable wrong. The courts of this country have never laid it down that the mere fact that the mischief arose out of the goods shipped by the person claiming general average deprived him of his right so to claim. There is no absolute warranty by the shipper of safety of carriage in cases where the goods shipped may be openly seen and are known by the shipowners to be by their nature possibly productive of danger. See Brass v. Maitland, and especially the Judgment of Crompton, J. It was contended by Mr. Hill that, even though there be no liability to action on the part of cargo owners in such a case as the present, yet it is on moral grounds unreasonable and unfair that they should be entitled to claim in general average. For myself I cannot see what there is unreasonable or unfair in their so doing. As between themselves and the shipowner, they have merely shipped that which the shipowner knew he was taking on board with its liability to spontaneous combustion. So, too, with the other shippers— they either knew that the cargo other than their own was coal, or they did not choose to inquire, and, in either case, they took upon themselves the risk of damage arising from the coal’s natural tendency to heat. The coal in this case was not exceptionally combustible, nor were the shippers guilty of any negligence in the shipping of it. Under those circumstances, it seems to me that there is nothing unfair or unreasonable in the shippers of the coal retaining their rights in common with others to a general average contribution in respect to such of their goods (not having been actually on fire) as have been sacrificed for the safety of the general adventure.”

The conclusion arrived at by the highest courts of the greatest commercial nation in the world ought to have weight everywhere. We prefer to follow it, nothwithstanding that it may be inconsistent with the views expressed by Justice Clifford at circuit in Pierce v. Winsor, supra. In that case mastic, a new article of commerce, had been shipped on a general ship from New York to San Francisco. On the voyage it melted and then solidified so that the shipowners were put to great expense to free it from the other cargo and from the ship. For this they sued the shippers and were allowed to recover. Mr. Justice Clifford said: , .

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Quillan, 180 F. 681, 103 C.C.A. 647, 1910 U.S. App. LEXIS 4790 (2d Cir. 1910).

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