Clydesdale Shipowners' Co. v. William W. Brauer S. S. Co.

Citations

• 120 F. 854
• 1903 U.S. Dist. LEXIS 380

Syllabus

<p>1. Shipping — Breach of Charter Party — Right of Charterer to Rescind for Misrepresentation of Vessel’s Speed.</p> <p>Libeiant made a general charter of a steamer to respondent for three years. During the negotiations libelant stated that the vessel’s average speed was 11 knots an hour, but such representation was entirely outside of the charter, and was made in relation to the employment of the steamer in the carriage of cattle in the transatlantic trade, for which purpose it was understood she was to be used. Respondent subchartered the steamer for a voyage to the western coast of South America, which occupied six months, and thereafter returned her to libelant, on the ground that she failed to make the speed represented. Held, that the representation was material, and if found to be untrue on a fair trial of the steamer, as by a voyage across the Atlantic, such as was contemplated, entitled respondent to rescind the charter, but that the fact that she did not maintain the speed on the long voyage in different waters, and during a part of the time with inferior coal, was not proof of the falsity of the representation, and that, furthermore, libelant was entitled, in case of rescission, to be restored as far as possible to the position it occupied when the contract was made, and respondent was not justified in sending the vessel on a long voyage, and after the lapse of several months asserting a cause of rescission which, if it existed, should have been discovered within a few days.</p>