Cunningham v. Switzerland Marine Ins. Co.
Cunningham v. Switzerland Marine Ins. Co.
Opinion of the Court
The above libels were filed by cargo-owners to recover the expenses of defending a suit on a bottomry bond, under the “sue and labor” clauses of certain policies of insurance issued by the respondents upon the cargo of the Julia Blake, from Rio to Now York. On the voyage the vessel put into St. Thomas, where extensive necessary repairs were made, in order to procure which a bottomry bond was given to the Bank of St. Thomas upon hor hull and cargo. The vessel with her cargo uninjured, subsequently arrived in New York. The vessel, freight, and cargo were thereupon libeled for the enforcement of the bottomry bond. Practically no defense in that suit was made as respects the ship and freight. The controversy as regards the cargo was carried to the supreme court. Tlie decisions of this court and of tlie circuit court were there affirmed, and the cargo released on the ground that no communication was had with the owners of the cargo prior to executing the bottomry bond. The Julia Blake, 16 Blatchf. 472; S. C. 107 U. S. 418; S. C. 2 Sup. Ct. Rep. 692.
At first the insurers employed proctors and counsel to defend against the claim on bottomry. They appeared for the owner of the vessel, and answered in behalf of the owner; and also as agent or carrier, in behalf of the cargo. Some months afterwards the libelants, owners of tlie cargo, themselves intervened and answered separately by proctors and counsel of their own; and, after the decree in tlie district court, they represented mainly, if not solely, the interests of the cargo in that suit. The insurance companies had previously agreed to pay any sum which might be fixed by the average adjusters as general average. The, libelants now sue for their expenses and counsel fees in that litigation.
In the present action the respondents have set up in defense the unsoaworthinoss of the vessel when she left Rio, and allege that the policies consequently never attached. As the claim in suit rests upon the stipulations of the policies only, there can be no recovery if the policies never attached, nor became operativo as respects tlie cargo. It is urged that this defense ought not to be regarded as made in good faith, because no such ground was taken in the previous litigation, and because the insurance companies did not act upon that theory; but during the progress of tlie action in the district court, at least, were active in defeating the bottomry bond upon other grounds. Two answers are given to this contention that I think are sufficient. No issue of unseaworthiness would have been material in tlie former action. On the contrary, the more unseaworthy the ship the greater would be
Reference
- Full Case Name
- Cunningham and others v. Switzerland Marine Ins. Co. and others
- Status
- Published