London Assurance v. Companhia De Moagens Do Barreiro

Citations

• 167 U.S. 149
• 17 S. Ct. 785
• 42 L. Ed. 113
• 1897 U.S. LEXIS 2091

Syllabus

<p>A cargo of wheat shipped on a British steamer at New York, for Lisbon, was insured by an English assurance company through its agents in Philadelphia “ free of particular average unless the vessel be sunk, burned, stranded or in collision.” ; all losses to be paid in sterling at the offices of the corporation in London; “claims to be adjusted according to the usages of Lloyds.” The cargo was loaded and the lines were cast off, ready to sail, when it was found that there was a defect in the machinery, which detained them a few hours. During the detention a lighter, being towed out of the dock, ran into the steamer-, breaking two plates in the bulwarks and doing other damage. ' This resulted in a farther detention of two days. After sailing, the steamer encountered heavy gales and seas. She took large quantities of water on her decks,- some of which came through the cracks caused by the collision, and was so strained that the water got into the wheat. The machinex'y becoming strained the captain made for Boston, and on arrival there had a survey made, which resulted in the taking oxxt of the cargo, and its sale for the benefit of all . concerned. This libel was then filed by the owners of the cargo to recover for iheir loss. The District Court gave judgment in favor of the owners, and referx-ed it to a commissioner to assess the damages, and gave judgment accordingly. The Court of Appeals having affirmed that judgment, it was brought here by writ of certiorari, for review. Held,</p> <p>(1) That under the circumstances the contract of insurance was to be interpreted according to English law;</p> <p>(2) That, if a ship be once in collision during the adventure, after the goods are on board, the insurers are, by the law of England, liable for a loss covered by the general words in the policy, although such loss is not the result of the original collision, and, but for the collision, would have been within the exception contained in the memorandum, and free from partic