Bailey v. South Carolina Insurance-Company
Bailey v. South Carolina Insurance-Company
Opinion of the Court
In deciding this case, adoctrine, which has been agitated with great ability in the different courts of the United States, as well as those of England, is brought to our view; and it is a subject of great astonishment to observe the contrariety, as well as vibration of opinion which has existed on it. Before I proceed to give my opinion »n this case, I can but regret, that a case has been
When I read the opinion of some of the most distinguished men who ever graced the English bench, in which they deplore the comity which has given such effect to these sentences, and particularly, that of Lord Ellenborough in two very late cases (Fisher and Ogle, and Donaldson and Thompson,) in which he says, e( the comity by which these sentences are received is overstrained,” and that he, like Lord Thurlow, shall die in the belief that they ought never to have been admitted; that they rest on the authority in Shower, (Hughes vs. Cornelius,) 2nd vol. 232. which does not fully support them, and that the practice of receiving them often leads in its consequence to the greatest injustice-Campbell, 419. 429. When add to this the conduct - of the two great belligerents, who have long since ceased to regard the laws and usages of nations, and from some cause or other have subjected almost every neutral vessel which navigates the ocean to condemnation. When I discover in the admiralty courts of France but an echo of the sovereign’s will, and advert to the open and avowed declaration of ?3ir Wm. Scott, who has said he would be governed jn his decisions by the Orders in Council, I cannot
While I regret that any countenance has been given to the sentences of these foreign tribunals, I rejoice to find that it has not been carried to the length contended for on the present occasion, and to which it has been carried, in some of the cases which are to be found in the English books.
I should not have thought it necessary to consider what was the English doctrine, at the present day, in this respect, had it not been that one of the counsel contended strenuously, that we were bound to decide according to the English law, on account of some such agreement in the policies. Supposing this to be the case, I shall merely refer to Marshall, p. 411. “ The sentence is only conclusive as to the points which it professes to decide.” And the two cases already referred to, decided by Lord Ellen-borough as late as 1808, — 1 Campbell, 418. 429. which decisions were not known, it appears to Mr. Justice Cooper when he delivered his very elaborate opinion in the case of Dempsee vs. Insurance Company of Philadelphia. But I shall never be induced by any authority, however respectable, to give my assent to what I conceive to be so grossly absurd. If there, were no other grounds of condemnation than that of enemy’s property, there might be some reason for the doctrine, but when w.e
As far as the doctrine has been decided in our courts the weight of authority is against the defendants. In Mayley vs. Shattuck, Cranch, 488. Mr. Justice Marshall says, “ these decisions have never been held to establish any particular facts, without which the sentence may have been rightly pronounced.”
I cannot avoid remarking that in most of the cases which have been discussed on this doctrine, there has appeared a strong disposition in the parties concerned, and, in some instances, in the judges to look into the grounds of decision in the admiralty courts. In the. first case, in which this doctrine was suggested by Lord Mansfield, (Bernard vs. Motteaux,) he had the proceedings of the court before
As to the case in which the verdict was given for the plaintiff, I am also of opinion that a new trial should be granted ; for if entitled to recover at all, he has certainly not recovered as much as was due to him. After abandonment the insured is to be considered as agent for the insurers without instructions. 5 Johnson, 324. And if he exercise a sound discretion, he is entitled to recover what expense he may have sustained on account of the underwriters. And here it appears that such a discretion was exercised; for the negroes brought more in New-Orleans, than could have been obtained for them in Nassau. The insured are therefore entitled to the freight of the Euphemia. I am of opinion^ that the motion should be granted.
The importance of this case is not derived from the novelty of the question; nor its difficulty from want of all the light the subject is capable of.
The question whether the sentence of a foreign eourt of admiralty shall be conclusive in any case on a policy of insurance, is not now before us. This eourt has already decided, that it is so, wherever goods are condemned as <( Enemies’ property.” Which, I understand, to mean that it is conclusive as to every thing it professes to decide;
Not having been a member of the bench when that decision took place, I shall give no opinion upon it; but shall consider myself bound by it, until those of my brethren who then, or now, concur in it, shall feel disposed to review their opinions. That decision appears conformable to the settled doctrine in
But the modern innovations made by the belligerent nations of Europe on the laws of nations. Indeed, I may say, the total disregard they have shewn to all the natural and moral obligations by which nations have heretofore been governed will not only require a review of opinions bottomed on principles which no longer govern; but will authorise a departure from the most solemn decisions, founded on reasons which no longer exist. I can not believe that the English judges will suffer the shackles of former decisions long to chain them down to a blind and passive obedience to decrees, founded on evidence unsatisfactory to an honest mind. Judge Gross, 3d Bos. & Pull. 499. “ manifestly unjust.” Heath, Justice, do. “founded on Algerine, or worse “ than Algerine principles, and making the law a si stalking horse for piracy. Ld. Kenyon, 7D &.E. 696. “ proceeding on a system of plunder” Do. Pollard & Bell, 8 Zb & E. Neither will the American tribunals be more disposed to respect the sentences of courts, where the judges’ salaries depend in a great measure on the number of condemnations and their commissions; on the opinion of an executive whose will is law, and with whom power is right. Or of courts where executive decrees are considered in relation to the laws of nations, as the acts of Parliament are to the common law. Case of the Fox, 30th March, 1811, Sir W. Scott,
Before I proceed to a particular consideration of this question, I would observe that the English judges do not now submit to the conclusiveness of foreign sentences because the principle is correct, but because they feel bound by former adjudications. Lothian and Henderson, 3rd Bos. and Pull. 499. Fisher and Oggle, 1 Campbell. If therefore it can be shown that these decisions are founded on reasons, which do not authorise the conclusions drawn from them, it will at least prove that we are not bound to carry the doctrine further than it has already been carried.
The reasons given by the English judges why the sentence of a foreign court of admiralty ought to be conclusive in an action on a policy of insurance, are 1st, Because all the world are parties, and, therefore, all persons ought to be concluded by it. Lord Mansfield, Bernardi and Matheaux, Doug. 554. Park. 355. 2nd, Because their decisions are governed by the laws of nations, or the obligation of treaties. Lord Kenyon, Desoner vs. Ewer, Park. 360. Pollard and Bell, 8 D. and E. 437. 3rd, Because it is a comity due to nations. 5 East, 99.
With regard to the first, the conclusion perhaps
The second is, that courts of admiralty always proceed according to the laws of nations and treaties. But this again is not correct. The courts of every nation feel bound, and are always governed by their own municipal laws and decrees, although they contravene the laws of nations. In the case of Mayne and Walter, Parke, 362. the ship was warranted to be Portuguese, and taken by a French privateer, and condemned as good and lawful prize, because she had an English supercargo on board. But Lord Mansfield declared it to be an arbitrary apd oppressive regulation, contrary to the laws of nations; and that the party ought not to be concluded by it. A violation of the late Milan and Berlin decrees, or the British orders of Council, would afford to their courts as good a ground for the condemnation of a neutral vessel, as the violation of the laws of nations; and the obligation of treaties is as little regarded. The decisions of the English courts, that the muni
But, 3rd, Finding that neither of the foregoing reasons would bear them out, it is said, that it is a comity due to nations to respect the decisions of their courts. I understand comity to mean respect, or what between individuals would be called civility or politeness. But it is to be observed that it is only the British courts, and those of the United States that are governed by this “ comity.” And if the charges made by the English Judges on. the French tribunals, “ that they proceed on a system ee of plunder “ on principles manifestly unjust “ on Algerine and worse than Algerine principles “ making the law a stalking horse for piracythat when they shall learn that the manner of wording their sentences does not render them conclusive, they will adopt such phraseology as will render
None of the reasons then on which the decisions of the British courts have been bottomed, will support their opinions. The time was when the laws of nations were respected, and when treaties were regarded as imposing some obligations on nations. The time, was when even in England and France were, or at least, affected to be, governed by the rules of common honesty, and their courts of admiralty influenced by a sense of moral morality, and when courts of admiralty actually did proceed according to the laws of nations, and the obligations of treaties, then indeed, such comity might be due to them. Then, each nation stood in relation to the other as different districts of the great republic of nations, governed by one great uniform system of laws. In that view, probably, it was, the subject was considered, when it was said, all the world were parties, (í sed témpora mutanturJ’
I have already shewn that even Sir William ¡Scott, the great oracle of maritime law, and of the law of nations, who, like Lord Coke, was thought to he not merely the expounder of the law, but the law itself j and who once professed to make the laws
Indeed, the English common law judges are so well satisfied that the reasons on which the decisions of their courts profess to be founded, will not bear them out, that they do not now pretend to make them the grounds of their present decisions. Their language is u stare decisis.” Lothian and Henderson 3 Bos. and Pull. 499. They acknowledge that they follow those decisions only because the law has been too loug settled, to be now shaken. Lord Ellenborough says it is by an overstrained comity that these sentences are received as conclusive evidence of the facts which they positively aver ; and that like Lord Tkurlow he shall die in the belief hat they ought never to have been admitted. 1 Campbell, 429. I, therefore, repeat again that finding these decisions no longer governed by principles which formerly prevailed, and that the reasons on which their former decisions were founded, no longer exist, they v/ill not only review those decisions, but will reverse them, if other good reasons cannot be found for their support.
But, without disturbing the decisions as far as they have gone, let us proceed to the question im
This question may be considered in a two fold point of view. 1st, Whether it is implied by the terms of the decree that it is enemy’s property. 2nd, Whether it has been so decided by any courts whose decisions we ought to respect, and by which we ought to be governed^
With regard to the first, if there are other causes of condemnation, than that the property belongs to an enemy, which would make it good and lawlful prize, then condemning it for such cause does not necessarily imply that it is enemy’s property. Yet it would be condemned as “ good and lawful prize.” If the decree always set forth the grounds and reasons of the condemnation, the difficulty would be temoved. But we shall find that no reasons will ever be given, if it should be held, that a condemnation as good and lawful prize, without any reasons, should lead to an inference that it was enemy’s property, and, therefore, the decree conclusive.
It has already been shewn that a violation of any municipal decree or law, however oppressive and unjust it may be, is as good a cause of condemnation as that the property actually belongs to an enemy. Of this the case of Mayne and Walter is in point. So we have seen that the violation of the late French decrees, or British orders of council, is con
We niay then admit a decree, condemning goods as enemy’s property, to be conclusive, and yet admit an investigation of the grounds of condemnation as i( good and lawful prize,” without any inconsistency. And it appears to me absurd to say, that a decree shall not be conclusive, where reasons are given which do not authorise it, and yet admit it to be so, where the grounds of condemnation are the same, merely, because the grounds are not stated in the decree. I am of opinion, therefore, that a decree of condemnation as i( good and lawful prize,” without giving any reasons to justify that decree ought not to be conclusive, unless the law. has been so settled by decisions which we are bound to respect, and by which wé ought to be governed. There does not appear to have been any decision of this court on the point. In the opinion given in the case of Walton & Dagan vs. Bethune, it is said, such a decree is not conclusive. But that perhaps ought to be considered as the opinion of an individual judge, and not the opinion of the court, because the point was not then, before the court. But it is sufficient for my purpose to say, it decides nothing as regards the principal case, and, as far as it is to be regarded, accords
The English decisions then on the point appear to be both ways; but the most modern are against the conclusiveness of foreign sentences, where, the property is condemned merely as, “ good and lawful prize,” and where there is no specific ground of condemnation stated. And such is the modern, belligerent code as affords no ground to extend the comity of nations. Treaties and the law of nations afford no security. It is truly said “that in the iniquitous conflict between British orders and French decrees, scarcely a vessel navigates the ocean, that is not subject to the denomination of “good and lawful prize” upon the text of the new belligerent code. Scarcely one escapes the rapacious grasp of the British or French cruisers, which like so many robbers infest the high road of notions. And an insatiable court of admiralty stands forever open to seize upon its prey, “ sedvestigia nulla retrorsum.” And if one fortunately escape condemnation, “ hssret lateri lethalis arando” The delay, the expense, the vexation attending trial, are often worse than condemnation.
The first policy on the sehoolier Lucy, and the second policy on the fifty negroes, a part of her cargo, are both so intimately connected with the third policy, on the eleven negroes, and their fate so interwoven therewith, that, believing as I do, the sentence of condemnation of the court of vice-admiralty, at Nassau, is conclusive to falsify the warranty of neutrality of that part of the cargo, I shall without further investigation, upon that groud alone, object to a new trial on the first and second policies. It will necessarily result, therefore, that we bestow some more attention on the third verdict given on the third policy.
The defendants counsel in this case contended that they were not liable on the policy, because it was vacated by the sentence of condemnation in the vice-admiralty court, which completely falsified the warranty of neutrality.
¡On the part of the plaintiff it was contended, that the sentence of condemnation was not conclusive, and that he ought to be admitted to go into proof, in the
It were to be wished that the reporter in this case had been a little more copious. It appears to me that the short view which he has given of it, and the grounds on which the decision went, is too limited to authorise us in saying that it ought to control all former decisions on the same subject. I cannot easily be brought to believe, that the English courts have now for the first time opened their eyes upon the correctness of this doctrine, and are themselves beginning to correct the error. Nor could I easily be brought to believe that there is more honesty, or more learning on the English bench at this tir than what has existed there since the
In addition to this authority, the plaintiff’s counsel offers the opinion of Judge Cooper, one of the late judges of the state of Pennsylvania, given in the case of the assignees of Brown vs. The Insurance Company of Pennsylvania. This opinion was much relied on to elucidate this question. Yet, notwithstanding its celebrity, and notwithstanding it may be correct in many of its positions, it cannot be received as authority. For it is to be recollected, that judge Cooper stood alone in this opinion, and that there were five other judges, to whose opinions, much' respect ho doubt is due. They all differed from the opinion held by judge Cooper. Then, so far as opinion goes, there were five to one against him. Therefore, by a majority of five to one, this important question is settled in the large and commercial city of Philadelphia, and state of Pennsylvania, that the sentence of a foreign court of admiralty directly upon the point of neutrality is conclusive, in an action between the insured and underwriter. It appears to me, that the opinion of
This appears to have been the principle constantly adhered to by the English courts, and not a novel one adopted to suit the occasion. The principle is also recognised by the Supreme court of the United States. In the case of Rose vs. Himely, Chief Justice Marshall, in delivering his opinion, said, “ if the court of St. Domingo had jurisdiction “ of the case, its sentence was conclusive; if it had e< no jurisdiction, the proceedings were coram non íc judice, and must be disregarded.” His opinion was concurred in by the other judges. 4 Cranch, 276. ,
When this case first came on to be argued, I conceived the question had been s.ettled in this court in the case of Walton & Pagan vs. Angus Bethune, at the January term 1811. That was an action on a policy of insurance to recover from defendant five hundred dollars, the amount of the sum by him underwritten. This insurance was made on goods, wares and merchandise, belonging to Walton and Pagan, citizens resident in Charleston, on board the brig —-- from port Republic to Norfolk in Virginia. On the trial of this cause, before the Circuit Courrt, it was in evidence that the brig on the 1st of February, 1804, with her cargo on board sailed from port Republic for her port of destination in Virginia. On her Voyage she was captured by a French privateer, and soon afterwards recap
That case, and the one before us, are extremely alike in all their material circumstances. But it is said the sentences conclude differently. In that case the conclusion is “ as belonging to enemies of Great-Britain or otherwise.” In this case, (i as good and lawful prize to the captors.” And this constitutes such a difference as will authorize the court to open the case, and let the plaintiff into proof of the neutrality of the property, in the action between him and the underwriters.
I know that the decision, and the unanimous decision, of the court in Walton and Pagan vs. Bethune, in which, they granted a new trial, proceeded
It is said that England is the only nation that holds this respect for the conclusiveness of the sentence of a foreign court of admiralty, and that we ought not to he bound by their decisions, but should adopt a course for ourselves. But why are we to burst.
We were told, and it was pressed with no little zeal in the argument, on the part of the plaintiff, that the British government had lost sight of the laws of nations, and that captures and condemnations are now made under orders in council, paper blockades, &c. that this court ought to set their faces against it, &c. and that their judges are corrupt, &c. I am willing to allow, as I verily believe it to be a fact, that the British government regards the laws of nations no further than comports with their own convenience; and that the courts of admiralty, to speak in the language of Lord Kenyon, will often be found to proceed upon Algerine, and worse than Algerine principles. But I hold it to be a position not to be controverted, that the evil can never be corrected, nor even diminished, by the aid of our common law courts. They may give a new complexion to the decisions on policies of Insurance;
I can foresee one evil, but I can foresee no good, that may result from a decision against the' conclusiveness of the sentence of a foreign court of admiralty. It will give a little more scope to speeula-tipn. If you let in the insured to prove the neutrality of his goods after condemnation, he need give himself no trouble to do so before the court of admiralty; that burden will be imposed on the underwriter, It seems to be verified in the case
It is argued by plaintiff’s counsel, that the necessary papers to establish the neutrality of the goods were taken away by Lieut. Foley. Therefore, they could not be had at the trial. But we find that Captain Hudson, of the- Lucy, has been examined upon interrogatories and he says not a word about them. The captain was the agent of the plaintiff. He gave testimony for them, and he certainaly knew the papers that were necessary to establish the neutrality of the vessel as well as her cargo. They ought to have been produced or accounted for. It is made a distinct ground by defendants against the new trial; that the vessel was not sufficiently documented nor the property insured: And if the papers were not produced, or accounted for, it is evidence of that defect. It is indispensably necessary to have the sea-letter, which specifies the nature and quality of the cargo, the place from whence it comes,
I would further observe, that notwithstanding the alledged corruption of the British courts of admiralty, it is strongly to be inferred from the circumstances attending this trial, that the condemnation Was for the want of proper documents of neutrality. The schooner Lucy, and the fifty negroes in the second policy, were acquitted without any difficulty and with very little delay: but the eleven negroes insured on a different policy, belonging to a different owner, and destined to a different port, were condemned. And this after a long delay in favour of the claimant’s further proof, if the court intended to act corruptly, why let go the schooner Lucy, and why let go the fifty negroes, and only retain the eleven? why not make a bold stroke and condemn the whole? the papers would have been as easily concealed or destroyed for the whole as for a part; and the inducement must have been infinitely stronger.
It is urged, that the British doctrine, if pursued here, would prove very ruinous to the mercantile interest. I deny the position. To fair and hon-ourable enterprise it cannot. Where it is otherwise it is not the object of law to give protection. A merchant may insure against any event in the course of his lawful enterprise. Insurance is a matter depending on contract between the parties. Let the merchant then insure against unjust condemnation — this would not be unlawful. Modify his insurance so as to embrace every risk. This would be sanctioned by our courts of justice. The merchant, it may be said, cannot do this; it would enhance the premium too much. But it is not the merchant alone who is to be protected in his rights. The underwriters are equally entitled. The honest and enterprising merchant is a useful member of
I shall first consider, and give tny opinion in the case respecting the eleven negroes. The verdict in that case was for the defendants, decree of the British vice-admiralty court at Nassau, which was given in evidence, was in these words, u The judge having heard the further proofs read, and advocates and proctors on both sides thereon, pronounced the same to be insufficient; and decreed the said property to be condemned as good and lawful prize to the captors/’ The presiding judge, at the trial in the district court, in-'1 structed the jury to consider this decree as conclusive to falsify the warranty of neutrality, and the jury found accordingly, I am of opinion this instruction was erroneous, and that the plaintiff is entitled to a new trial.
In the case of Walton vs. Pagan, which was determined in this court, in January, 1811, the terms of the definitive sentence of condemnation, though in most respects similar to that now under review, was in one circumstance materially different. In that case, the coffee insured was condemned “ as belonging to the enemies of Great Britain or otherwise.” In the opinion of the court, as it was expressed on that occasion, it was manifest on the face .of the decree, that the condemnation was on the ground of enemies’ property, and on no other ground, and, therefore, it was deemed conclusive to negative the warranty. And it seemed to be admitted by the court in that case, that if the sentence had been general, or had been expressed in ambig-
If, in the present case, the decree was thus positive and explicit; or if the condemnation had been “ because the negroes were not neutral property,” as in the case of Fernandes vs. Dacosta, (Marsh. 290.) I should not be inclined to disturb the verdict. But, I am averse to extending the effect of foreign judgment, and especially admiralty decisions, further than they have been already permitted to go, in conformity to the doctrine of English courts. Lord Mansfield, in the case of Saloucci vs. Woodmass, (Park, 361.) lays it down, that a condemnation, “ as good and lawful prize,” without stating any special ground, is conclusive that the warranty of the property as neutral was untrue. But if it can be collected from the sentence, that the condemnation was for some other cause, as for refusing to be searched, or making resistance, it ought not to be' deemed conclusive. (Saloucci vs. Johnson, 1 Marsh. 292.) In the case of Calvert vs. Bovil, (7 Term Rep. 523.) the sentence declared the brig in question to (( be a good prize for the benefit of the captors,” and this was held not tp
I now proceed to give my opinion in the case of the schooner. In this case also, the verdict was, for the defendants. The Judge who presided at the trial, in charging the jury in this case, and in the ease of the fifty-two negroes, delivered himself to this effect. ii The eleven negroes taken on board (i the schooner, were condemned as good and lawful (i prize; the presumption is, that the condemnation was on the ground of enemies’ property, because ii no contrary reasons are assigned in the sentence. (i This presumption not being repelled, is equal to “ positive proof, and conclusive to falsify the war- “ ranty of neutrality. Then, as the negroes were justly forfeited as enemies’ property, and as they {< were found on board the schooner, the schooner i( was thereby exposed to seizure and detention; (< therefore the underwriters.are not liable.” The Judge however, doubted whether this reasoning ought to extend so far as to affect persons, interested in the fifty-two negroes, who were not interested also in the eleven negroes condemned. Upon the whole, however, he inclined to think the insured
As the logic? by which the jury were" convinced, is not quite satisfactory to my mind? I must take the liberty of dissenting from it. The reasoning of the court may be reduced to a syllogism something like this. The schooner was not condemned as good prize, but was considered in the light of neutral property? and as such was acquitted and ordered to be restored to the owners. But eleven negroes? part of the schooner’s cargo, were condemned as enemies’ property, whereby the warranty of those ne-groes was falsified: therefore the warranty of the schooner was likewise falsified. But this conclusion seems to me to be a non sequitur. This case is not like those where the goods of a neutral are so mixed with those of a belligerent, that they cannot be distinguished one from the other. The schooner was warranted neutral property? and was acquitted. The conclusion must be? that she was not proved to be other than neutral. The indemnity claimed is for damages sustained by the perils of the sea. It seems to be no answer to this claim to say? that she was unjustly captured and detained. Unlawful capture and detention is one of the perils insured against. It. seems to be no good objection to the claim? to pretend that part of the cargo on board was enemies’
I now come to the case of the fifty two negroes, in which case the verdict was for the plaintiff. With this verdict, the plaintiff is not satisfied, but as it is by ño means clear to me that the verdict is not according to the justice of the case, I am opposed to granting a new trial. The brief states that the verdict is for ¡8856,60, being the amount expended by him in cloathing and provisions for the negroes while at Nassau, excluding all compensation for the hire of thé brig Euphemia.” The contract of insurance is a contract of indemnity for all losses within the policy. The inquiry must be, was this loss within the policy, and what was the extent thereof ? Damage by capture and detention, and damage by the perils of the sea,
As to the hire of the brig Euphemia, I lay that out of the case, as irrelevant matter. Suppose the freight had been insured, is it not evident that the plaintiff’s right to indemnity would have been against the insurers on the freight, and not against the insurers on the ship or cargo ? But the plaintiff was his own insurer as to the freight, and must therefore, bear the loss, which happened on that score. As between the insured and the underwriters upon the cargo, it is a contract of indemnity, and the latter has nothing to do with the freight. The owner of the ship has a lien 'on the goods for his freight. Marsh. 628. It was the duty of the freighter to carry the negroes safely to the port of destination, and feed (and perhaps clothe) them on the passage. The allowance for provisions for the negroes, was in my opinion illegal; but as the defendants do not. complain thereof, I am for leaving the verdict unmolested.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.