Wood & Co. v. Phœnix Insurance Co.

1 F. 235, 1880 U.S. Dist. LEXIS 11
CourtDistrict Court, E.D. Pennsylvania
DecidedMarch 23, 1880
StatusPublished

This text of 1 F. 235 (Wood & Co. v. Phœnix Insurance Co.) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wood & Co. v. Phœnix Insurance Co., 1 F. 235, 1880 U.S. Dist. LEXIS 11 (E.D. Pa. 1880).

Opinion

Butler, J.

On the fourth of October, 1879, the libellants shipped on board the “Mary and Eva,” then lying at Mill-ville, New Jersey, a cargo of iron pipe, loaded in part above and in part under deck, 31 tons of which were to be delivered in New York and the remainder at West Point. In the course of the voyage the vessel encountered tempestuous weather, and it became necessary to throw a portion of the deck cargo overboard. The respondent had insured what was under deck with knowledge that similar cargo was to be carried above. The libel assorts “that it is the custom of the trade, in shipping cargo of iron pipe, to load a part thereof on deck,” and claims that the respondent is liable to contribution by general average. The answer denies the existence of such a custom and of all liability for the loss. It would seem that the deck [236]*236load was not included in the policy because the libellants were not willing to pay the respondent’s terms for such insurance. The propriety of the jettison is not questioned.

The doctrine of general average for property thus lost was a part of the celebrated maritime code of the ancient Bhodians, in which it was thus stated: “If goods are necéssarily thrown overboard, for the purpose of lightening the ship, the loss is to be made good by the contribution of all, because it was insured for the benefit of all.” No clearer statement has been made since. The doctrine is founded in pure equity. The sacrifice being made for the safety of the vessel and remaining cargo, the owner of the goods should bear no more than his just proportion of the loss thus incurred.

From the benefit of this right to contribution the owner of goods loaded above deck was excluded on the ground that such loading is improper, tending to embarrass the movements of the crew and the working of the ship. To the universal application of the rule (excluding deck cargo) serious objection has been made from the outset, and strenuous effort used to limit its operation. It has been urged that some goods may be placed on deck without embarassing the crew, or the movements of the vessel, and especially in short voyages from port to port; that custom has established the safety of such loading in some kinds of cargo and in voyages .between certain places; and that where such loading is in pursuance of contract with the carrier he cannot urge the objection that it is improper. From the beginning most, if not all, elementary writers on the subject have stated the rule with exceptions. Yalin says: “The doctrine excluding goods carried on deck (and jettisoned) from general average ought to be controlled by the usages of trade; and accordingly contribution may be claimed for goods thrown overboard from the decks of small coasting vessels, or river craft, which usually carry part of their, cargo on deck.” Yalin Ord. de la Mar. art. 13.

The only exception which seems well supported, of an early date, is one in favor of goods carried on deck in pursuance of custom. What is said in the early cases and elementary works, respecting goods so carried on small coasting vessels, [237]*237must be referred to custom, and is true only to the extent that such custom is shown to exist. As the reason for exclusion is the unsafe and improper loading, it might be supposed that the rule would not apply in any case where it could be shown by testimony that, from the character of the cargo or the voyage, the loading is safe and proper. A careful examination of the authorities, however, will show that this question is referred to the judgment of the trade as expressed in its customs, and cannot be inquired of in any other way.

'When steam was applied to purposes of navigation it was found that cargoes could be carried on the decks of vessels thus propelled with safety, and the rule has not, therefore, been applied to cargoes so carried. At the present time a further exception is allowed in most maritime countries against the vessel and its owners, where the cargo is carried on deck, by agreement between the owner of the cargo and the vessel.

In England, until the year 1837, no exception whatever was allowed. Goods carried on deck were, un der all circumstances, excluded from the benefit of contribution. In that year the cases of Gould v. Oliver, 4 Bing. (N. C.) 134-140; Hireley v. Milward, 1 Jones & Carey, 240, arose, and were followed in 1842 by Milward v. Hibbard, 3 Ad. & El. (N. S.) 121. Since the decisions in these cases the exceptions allowed elsewhere —in favor of goods carried on deck in pursuance of custom, carried on the decks of steam vessels generally, and by contract where the claim is against the vessel — may be regarded as well established there. Elementary writers and judges in numerous instances have used language indicating a belief that the exceptions are more extensive, embracing deck cargo in all coastwise trade, and justifying claims against the owners and insurers under deck where previous knowledge is shown of an agreement to load above. No case, however, lias been cited by counsel nor found by the court in which this has been allowed. In Johnson v. Chapman, 35 L. J. C. P. 23, (decided in 1865,) which followed the ruling in Gould v. Oliver and the other English cases cited, the learned counsel who depended on these cases said, (as appears by the report:) “It was decided in Gould v. Oliver that, as between the shipper [238]*238on deck and the vessel, where the goods are so carried by agreement, the latter is liable to contribution for jettison, but not the owners or the underwriters of the under deck cargo.”

In Hireley v. Millward, Johnson v. Chapman, and in every other casé found in which the claim for contribution was based on an agreement to carry on deck, the suit was against the vessel or its owners alone.

Lownds on' General Average, at él and succeeding pages, saysj (after noticing the change effected by Gould v. Oliver, and the other cases cited:) “Where the provision for carrying on deck is' inserted in the charter-party the loss for jettison is replaced by contribution between the ship-owner and the owner of the deck load. It is adjusted in the same manner as a general average would be, but it is- a general contribution. Payment by general contribution is enforced from no one who has not, by express contract, made himself a party to the stowage on deck. If there are on deck goods belonging to a third party, such party is not held liable to pay any share in the contribution. No insurer is asked to replace what his assured has contributed unless there is a clause in the policy assenting to the deck shipment. The principle of these adjustments is that, as between the assenting parties to such stowage, the deck must be taken to be a proper place for such stowage, which is thence to be treated as if stowed below; but, as regards all parties who have not thus assented, the old rule remains in force, and from them there is no general average.”

There is no proper warrant for the suggestion that owners below deck, and underwriters, may be held to an implied assent that goods shall' be carried above, from knowledge that the master has contracted so to carry. The author just quoted, when remarking upon -the general terms employed by the court in Johnson v. Chapman, and other cases, says: “These observations must be understood with reference to the question before the court; that is, to the right of the owner of the deck load to contribution from the owner of the ship.”

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Lawrence v. Minturn
58 U.S. 100 (Supreme Court, 1855)
Harris v. . Moody
30 N.Y. 266 (New York Court of Appeals, 1864)
Meaher v. Lewis
21 Tex. 383 (Texas Supreme Court, 1858)
The Milwaukee Belle
17 F. Cas. 434 (D. Wisconsin, 1869)

Cite This Page — Counsel Stack

Bluebook (online)
1 F. 235, 1880 U.S. Dist. LEXIS 11, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wood-co-v-phnix-insurance-co-paed-1880.