McCormick v. Shippy

Citations

• 119 F. 226
• 1902 U.S. Dist. LEXIS 263

Syllabus

<p>1. Charter Party—Demise of Vessel—Stipulation Relieving Charterer from Liability for Negligence of Master.</p> <p>A time charter of a steam yacht, to be delivered in commission, contained a provision that “the charterer shall assume no responsibility for loss' or damage to the yacht,” and a clause in the printed form requiring the charterer to keep the vessel insured for the benefit of the owner was stricken out. It also provided that the hire should continue until her redelivery in good condition, “unless lost,” and that, in case of her loss during the term, hire paid in advance and not earned should be returned. She was delivered in commission, and the officers and crew were retained by the charterer; the master being recommended by the owner as competent to navigate the yacht, both as master and pilot, In any waters within the limits of the contract, in conjunction with local pilots. The charterer had no knowledge of navigation, and accepted and relied upon the master in all respects. The yacht was lost through the negligence of the master in failing to take a pilot in waters with which he was unfamiliar, though his taking one was suggested by the charterer. Eéld thqt, although the charter was a demise of the vessel, which made the master the agent of the charterer, who would be responsible for his negligence to third persons, and ordinarily as between the parties, he was protected from liability to the owner for the loss of the yacht by the provisions of the charter, by which the owner clearly assumed the risk of such loss.</p> <p>2. Same—Validity—Public Policy.</p> <p>A stipulation, in a charter demising a vessel, by which the risk of loss or damage to the vessel through the negligence of the master, which the law would otherwise east upon the charterer, is assumed by the owner, is not invalid as against public policy.</p>