Lowber v. Bangs
Opinion of the Court
delivered the opinion of the court.
The question is, whether it was a condition precedent, that the ship should proceed directly from Melbourne to Calcutta; or, in other words, whether these clauses constitute a warranty, or are merely'-a representation.
“ The construction to be put upon contracts of this sort depends upon the intention of the parties, to be gathered from the language of the individual instrument. Whether particular stipulations are to be considered conditions precedent, or not, must, in all cases, solely depend upon that intention, as it is gathered from the instrument itself.”* “All mercantile contracts ought to be construed' according to their- plain meaning, to men of sense and understanding, and not according to forced and refined constructions, which are intelligible only to lawyers, and scarcely to them.”† “ The rule has been established, by a long series of adjudications in modern times, that the question whether covenants are to be held dependent or independent of each other, is to be determined by the intention and meaning of the parties, as it appears' on the instrument, and by the application of common sense, to each particular case, and to which intention, when once discovered, all technical forms of expression must give' way; and one of the means of discovering, such intention has been laid down with great accuracy by Lord Ellenborough, in the case of Ritchie v. Atkinson,‡ to be this: that when mutual .covenants go to the whole consideration, on both sides, they are mutual conditions, the one precedent to the other; but where the covenants go only to a part, then a remedy lies in the covenant to recover damages for the breach of it, but it is not.a condition precedent."§
Contracts, where their meaning is not clear, are to be construed in the light of the circumstances surrounding the parties when they were made, and the practical interpretation which they, by their' conduct, have given to the provisions in controversy.
This charter-party bears date on the 4th day of June, 1858. The vessel was then on her way to Melbourne. The agreed facts warrant the conclusion, that the owner believed confidently that she would reach Melbourne in advance of the mail, which would carry to her master advice of the charter-party. It was also probable that she might engage her freight before the master could receive the advice. On the other hand, it was improbable that she would have discharged her cargo and have left Melbourne before the mail arrived. Hence, no provision was made by the owners for any other contingency than that she should have become engaged. In that event, they were not to be bound;'and the charterers required it to be stipulated, simply, that if not engaged, she should proceed with all possible despatch from Melbourne to Calcutta.
Promptitude in the fulfilment of engagements is the life of commercial success. The state of the market at home and abroad, the solvency of houses, the rates of exchange and of freight, and various other circumstances which go to control the issues of profit or. loss, render it more important in the enterprises of the trader than in any other business. The result of a voyage may depend upon the day the vessel arrives at her port of destination, and the time of her arrival may be controlled by the day of her departure from the port whence she sailed. We cannot forget these considerations in our search for the meaning of this contract. That
We will now advert to the authorities to which our attention has been directed. Tarrabochia v. Hickie, Dimech v. Corlett, Clipsham v. Vertue, and Freeman v. Taylor, are in point for the defendants in error, and seem to sustain the views of their counsel. In these cases it was held, that unless the delay was so great as to frustrate the object of the charterers in making the contract, it was not material to the rights of-the parties. In two of them the delay was produced by the deviation of the vessel from the. direct course to the port where she was to receive her lading.
The authorities relied upon in behalf of the plaintiffs in error are' equally cogent. In Glaholm v. Hays, the language of the cliarter-partjr was, “ the vessel to sail irom England on or before the 4th day of February next.” This was held to be a condition precedent. Chief Justice Tindal said this language imported the same thing as if it had been “ conditioned to sail,” or “warranted to sail on or before such a day.” In Oliver v. Fielden et al., the contract, as set out in the declaration,- was that “ the ship called the Lydia, .... then on the stocks at Quebec, to be launched and ready to receive cargo in- all the month of May, 1848, and guaranteed
The most recent and most important authority brought to our notice is Behn v. Burness. It was agreed by the charter-party, in that case, that the ship then “ in the port of Amsterdam . . . should, with all possible despatch, proceed to Newport, in Monmouthshire;” and there: take in cargo. At-the date of the contract the ship was not at Amsterdam, but at another place sixty-two miles distant from there. Being detained by contrary winds, she did not reach Amsterdam until the 23d of October. She discharged her cargo as speedily as possible, and proceeded direct to Newport, where she arrived on the 1st of December. The defendant refused to load her. ' The plaintiff sued for damages, and the defendant pleaded that the ship was not at Amsterdam at the time of the making of the contract. The Queen’s Bench ruled in favor of the plaintiff, and he recovered. The defendant took the case, by a writ of error, to the Court of Exchequer, and that court reversed the judgment of the Queen’s Bench. The opinion of the reversing court is characterized by force and clearness, and the leading authorities on the subject are examined. The court say: “We feel a difficulty in acceding to the suggestion that appears to have been, to some extent, sanctioned by high authority (see Dimech v. Corlett), that a statement of this kind in a charter-party, which may
Upon reason, principle, and authority, we are of opinion that the stipulation before us is a condition precedent, and not a mere representation, nor an independent covenant, and that it goes to the entire root of the contract.
Judgment reversed, and the cause remanded for further proceedings, in conformity to this opinion.
Seegur v. Duthie, 8 Common Bench, N. S., 63.
Crookewit v. Fletcher, 1 Hurlstone & Norman, 912.
10 East, 295.
Stavers v. Curling, 3 Bingham’s New Cases, 355
Simpson v. Henderson et al., 1 Moody & Malkin (22 English Common. Law), 313; Hasbrook v. Paddock, 1 Barbour S. C. 635; French v. Carhart, 1 Comstock, 105.
Dissenting Opinion
dissenting.
I am not able-to concur in the judgment of the court in this case, and inasmuch as the questions presented for decision are of general importance, I think it proper to state the reasons for my dissent.
Present defendants, as the owners of the ship Mary Bangs, brought the suit in the court below to recover damages of the charterers for refusing to load the ship as they had covenanted and agreed to do.
Charterers resided in Philadelphia, and the owners of the ship resided in Boston. Charter-party was executed by the defendants at Philadelphia, on the ninth day of J une, 1858, and was received by the plaintiffs in Boston on the eleventh
Voyage is described, as before mentioned, and immediately following that description is the clause which gives rise to the controversy. “ Ship to proceed from Melbourne to Calcutta with all' possible despatch.” Owners engaged, among other things, that the vessel should be kept seaworthy, and be provided with men and provisions, and with every requisite during the voyage. ' On the other hand, the charterers engaged to load the ship, and to provide, as part of the cargo, sufficient saltpetre for ballast, and what broken stowage the master might require, so that the ship might be loa ed full and in a safe and seaworthy manner, and to reasonable draft. Price to be paid for the charter was thirteen dollars per customary ton for whole packages, and half price for broken stowage. Forty running lay days were allowed for loading the ship, and the charterers agreed to pay ninety dollars demurrage for every day the ship should be detained beyond that time, if the detention was by their fault or that of their agent.
Recitals of the charter-party also show that the vessel sailed from New York, on her passage to Melbourne, on the third day of'May, prior to the date of the charter, and the parties agree that such a voyage usually occupied from ninety to one hundred and thirty days, and that it would usually require from two to seven weeks for the vessel to discharge her cargo and get ready to sail. Terms of the charter-party required that the owners should use the most direct means to forward instruction to the master, with a copy of the charter, ordering it to be fulfilled, and .the agreed statement shows that on the same day they received the charter-party from Philadelphia they complied with that stipulation.
Instructions reached the master at Manilla, and on the receipt of the same the master got his vessel ready and sailed for Calcutta to fulfil the charter. Record shows that the vessel arrived there oil the twenty-sixth day of February following, and that the master on the same day called on the agent of the charterers, and he declined to load the ship.
I. Two principal positions are assumed by the defendants, to show that the owners of the vessel ought not to prevail upon the merits.
1. They insist that, by the true construction of the charter-party, it was a condition precedent- to the covenant or promise to load the vessel, that when the master received the instructions to fulfil the charter the vessel should be found at Melbourne disengaged, and that she should proceed direct from there with all possible despatch to the port specified in the charter.
2. Secondly, they insist that the long period which elapsed before the vessel arrived at Calcutta, although,the delay was without fault either of the master or owners, discharged them as charterers from any obligation to furnish a cargo.
Nothing can be more certain than the fact that the two questions presented involve widely different considerations. Obviously, one is purely a question of construction, and must
Province of construction can never extend beyond the language employed as applied to the subject-matter and the surrounding circumstances contemporaneous with the instrument.
General rule is, that the terms of a contract are to be understood in their plain, ordinary, and popular sense, unless they have, in respect to the subject-matter, as by the known usage of trade, or the like, acquired a peculiar sense; but courts of justice are not denied the same light and information the parties enjoyed when the contract was executed. On the contrary, they may acquaint themselves with the persons and circumstances that are the subjects of the statements in' the written agreement, and are entitled to place themselves in the same situation as the parties who made the contract, so as to view the circumstances as they viewed them, and so to judge of the meaning of the words and of the correct application of the language to the things described.
Substance of the first proposition of the defendants is, that the clause, “ ship to proceed from Melbourne' to Calcutta, with all possible despatch,” amounts to a warranty that the ship, when the instructions with the charter should be received by the master, would be found at Melbourne, and that inasmuch as she had left that port before the instructions arrived, and did not proceed from that port direct to the port of lading, they are discharged from all obliga
Speaking of this subject, Mr. Parsons, in the last edition of his valuable Treatise on Maritime Law, says that the doctrine pf dependent covenants, as at common law, sometimes works great hardship, if not injustice, but adds, that as applied to contracts relating to shipping it is seldom laid down without a distinct and adequate reference to the intention of the parties and the actual justice of the case. Indeed, it may almost be said, remarks the same'learned author, that there is a presumption of law, for there is certainly a strong disposition of the courts, against "such a construction of a covenant or promise as will make it a condition precedent. Reason for the rule, as suggested by the same commentator, is that the construction which disconnects the promises and obliges each party to satisfy the other for so-much of his promises as he has kept, saving his right to indemnity for any promises which are broken, will, in the vast majority of cases, do justice, complete justice, to both parties.
Charter-parties, it should be remembered, are commercial instruments,'subject to the rules applicable to commercial' contracts, where the rule of construction, as universally acknowledged, is that it' shall be liberal, agreeably to the
Intention unquestionably is the primary consideration, and when that is ascertained, under the . rules already suggested, all artificial forms of expression, as was well said in Stevens v. Curting,
The purpose of the contract was to let and hire the ship for a voyage from Calcutta to a port in the United States. Defendants had no merchandise on hand, and they had not sent out any agent to make the purchases. Time, frequently a long time, is required to purchase large cargo.es in that market. Adventure was to be undertaken in a. distant port which would involve great expense, and that expense would be greatly increased if the vessel or vessels were sent from the ports of the" United States without a profitable outward cargo. Preference, therefore, .was given by the charterers to vessels navigating in .those seas. They accordingly applied to' the 'plaintifis; but both parties khew that it was impossible to foreknow on what precise day the vessel would arrive at her port of destination, or how long it would take
1,. Owners of the ship stipulated to use the most direct means to forward instructions .to. the master, with a copy of the charter, ordering it to be fulfilled, which was obviously inserted for the benefit of the charterers. Object of the provision was to insure, if possible, prompt notice to the master. But it might happen that the means of transmitting intelligence to him in that distant sea would fail until after he had sailed from the port of destination, and had engaged his ship, and in that event the owners, unless their interests were also protected by some suitable provision, would be liable at law to- the defendants, or the last charterers, in damages.
2. Special provision was accordingly made,-that if it happened that the ship should ari’ive at Melbourne before the instructions, and the master should have engaged the ship before receiving them, the charter should be null.
Both of these provisions are plainly dependent covenants, and they show to a demonstration, as. was wéll .said, by Erie, Ch. J., in Seeger v. Duthie,
Some stress is laid, in the opinion of the court, upon the words, “ with all possible despatch,” and the argument is, that they must have the same effect as a stipulation for a day certain. Covenant that the ship shall be at or sail from a certain place on a certain day, and there to receive cargo, says Mr. Parsons, is a condition precedent, and if she is not there on that day the freighter is discharged from all obligation to load her, as the condition, in that state of the case, is not fulfilled.
Contract, in that case, was as follows: “ the vessel to sail from England on or before the fourth day of February next;” and it was held, and well held, that the clause was.a condition precedent. Where, also, there is a definite statement of a material existing fact, as that “ the ship is now in the port of Amsterdam,” the better opinion is¿ that it is a
Material clause of the charter-party in Bornman v. Tooke,
Origin of the true criterion by which to determine whether a particular covenant is to constitute a condition precedent or not, is to be' found in the case of Boone v. Eyre,
Ruling of Lord Ellenborough in Havelock v. Giddes et al. ,
Repeated decisions confirm this rule, and indeed it may almost be said that it is universally approved. Reference will now be made to some of the more modern cases decided in the courts of the parent country. Excuse for that course, if any be needed, will be found in the opinion of the court, which assumes that those cited by the defendants are inconsistent with those cited by the plaintiffs, which in my judgment is error. Plaintiffs refer to Freeman v. Taylor,
Terms of the charter-party were that the ship should proceed to the Cape of Good Hope, and having there discharged cargo, should “proceed with all convenient despatch to Bombay,” where the freighter engaged .to put on board .a cargo, of cotton for England. Master, instead of conforming to the stipulation,'wilfully deviated, causing a delay of six weeks, and in consequence of the deviation the agent of the defendants refused to load the vessel. Case was tried before Tin-dal, Chief Justice, and he charged the jury that, inasmuch as the freighter might bring his action against the owner and recover damages for any ordinary deviation, lie could not for such a deviation put an end to the contract; but if the deviation was so long and unreasonable that, in the ordinary course of mercantile concerns, it might be said to have put an end to the whole object the freighter had in view in' chartering the ship, in that case the contract might be considered at an end, and lie left it to the-jury to decide whether the delay was of such a nature as to have put an end to the ordinary objects the freighter might have had in view when .he entered into the contract.
Beliance is- placed by the defendants upon the case of Oliver v. Fielden et al.,
Court held that the readiness to receive cargo in all May was a condition precedent. Beyond question the ruling was correct upon the ground that a definite limitation of time is precisely equivalent in principle to a day certain. Pleadings, therefore, presented a case where the condition precedent was clearly and unambiguously expressed. Authorities cited by the court furnish indubitable evidence that such was the view taken of the case at the time of the decision. They cited Glaholm, v. Hays,
Statement was that the vessel is “now at sea, having sailed three weeks ago, or thereabouts,” which was a mate
Provision of the charter-party was, that the ship “ being tight, stanch, and strong, and every way fitted for the voyage, should, with all possible speed, sail and proceed” to- a certain port, and there load a full and complete cargo in the customary manner; Breach alleged was, that the defendants made default in loading- the agreed cargo. Second plea was, that the ship did not, with convenient speed, or in a reasonable time in that behalf, sail or proceed to the port of lading, insomuch that by reason thereof the object of the charter-party and of the voyage was wholly frustrated. Issue was joined and the parties went to trial. Jury found—
1. That the vessel did not proceed with reasonable speed and diligence.
2. That the whole object of the voyage was not thereby defeated.
3. That the vessel was not fitted for her voyage when she sailed for the port of lading, but that she was so fitted when she arrived at that port.
Verdict was entered for the defendant, with leave to the plaintiff to move to enter a verdict in his favor: Bule to show cause was accordingly granted, and the questions were fully argued. Separate opinions were given by Pollock, C. B., and his associates, and they unanimously decided that the stipulation referred to was not a condition precedent. Opinion of the Chief Baron is a very able one, going over
Special reference was made to the remark of Maulé, J., in Glaholm v. Hays,
Repetition of the explanation as to what the distinction is, it seems to me, is unnecessary, as it has already been stated in language as clear as I can employ. Same distinction is explained by Erie, Ch. J., in Seeger v. Duthie,
1. That the ship is “ now at anchor in this port.”
2. That she shall, “ with all convenient speed, proceed in ballast to Alexandria, in Egypt, and there load a full cargo.’'"
1. Suggestion is made that the phrase, “ with all possible despatch,” is more intensified than any of the expressions found in the cases cited by the plaintiffs. Shadowy as the theory appears, still it deserves to be examined on account of the source from which it is suggested. None will pretend, I suppose, that the phrase “ with all possible despatch” is more intensified than the phráse “ as soon as possible,” which is one of daily use; and yet it was held, in the case of Atwood et al. v. Pomeroy,
They provided that if the ship happened to arrive at the port of discharge before the instructions, and the master should ham engaged his ship before receiving them, the charter should be null, but they made no other provision for the terminar tion of the charter, and it is confidently believed that the "suggestion is utterly inconsistent, not only with the intent of the parties, hut with the whole «cope and purpose of the instrument. Suppose the vessel had sailed direct for Calcutta, and the day' after the vessel left the wharf at the port of discharge she had met the British steamer and the master had -received his instructions, or. suppose the ship, instead
Defendants also suggested at the .argument that the case of Graves v. Legg,
1. Because it has no application to the case, being an action upon an ordinary written agreement, and not upon a charter-party.
2. Because, if it were inconsistent with the cases cited for the plaintiffs, the later cases ought to be regarded as furnishing the true rule.
3.' Because the decision is perfectly consistent- with the earlier and later cases to which reference has been made.
Agreement of plaintiff was to sell to the defendant .certain merchandise, to be shipped with all despatch-, “ and the names of the vessels to be.declared as soon ,as the goods were shipped” Names of the vessels were not notified to the .defendants, and they refused to accept-the goods. Held that the provision in the contract that the names of the vessels should be
Result of my examination is that I find no inconsistency between the cases cited by the defendants and- those cited by the plaintiffs. ■ Supposed difference consists only in the application,- and therefore is unreal. Doubts were expressed in Behn v. Burness, whether the first point ruled in Dimech v. Cortlett was correct, but the court finally came to the con-elusion that their decision did “ not at all conflict” with -the decision of the Privy Council, even on that pbint. First point decided, it will be remembered, was, that’the statement that the ship is “now at anchor in this port” was not a warranty, which has no application whatever in this case. Second point decided in that case, which is the one applicable here, was not questioned either by the bar or the bench, and is undoubted law.
II. Second objection is that the delay which ensued before the vessel arrived at Calcutta discharged the charterers from all obligation to furnish., a cargo. Moral wrong is not imputed to. the plaintiffs, and it is quite clear on the facts that perfect justice is done to both parties by regarding the pro: vision as an indepéñdent stipulation. Contraiy .conclusion is .a great hardship, as the' master acted in good faith, and employed his best exertions, after he received his instructions, to fulfil the charter. Granting that the provision is not a condition precedent, then the rule is that unless the deviation was of such a nature and description as to frustrate the voyage or to deprive the freighter of the benefit of his contract, he is not discharged from the obligation, but is remitted to his claim in damages for any injury he may have
' Agent of the defendants arrived at Calcutta on the twenty-fifth of August, and remained there till the twenty-third of January following. Names of the other vessels were the J. P. "Wheeler and the William Cummings. Former arrived on the fourth of November, and the latter on the first of the following month. When the William Cummings arrived the agent had purchased, of certain articles, enough for two ships, but he had not purchased any saltpetre for ballast. Part of the merchandise so purchased was intended for the Mary Bangs, but it was all sent by the other'two vessels. ■ Plaintiffs’ ship arrived, as before stated, and the agent of the defendants refused to load her. Freight at that time had fallen for such a voyage to five or six dollars: Under those circumstances' the agent refused to load the ship, but he immediately chartered another vessel of about the same tonnage to take her place, and loaded the vessel so chartered with the funds provided to purchase a cargo for the Mary Bangs, and the-parties agree that the whole cargo was purchased after the vessel of the plaintiffs arrived.
Defendants do; not venture to suggest that they have suffered any injury, and it is clear that the construction here assumed would, in the language of Mr. Parsons, “ do justice, complete justice, to both parties.” Unless the instructions were received by the master before the vessel sailed seeking business it must have been understood by the defendants that some delay would necessarily ensue in the departure of the vessel; and if, in that contingency, they had been unwilling to accept the contract, the reasonable presumption is that they would have insisted that some more specific provision upon the subject should have been inserted in' the charter-party. They understood the nature and effect of a condition precedent, and if they had intended that the contract
■ .The truth is, they intended no such thing, but the theorj here adopted speaks the true intent and meaning of the contract.
Pursuant to these views I think the judgment should be affirmed.
Barreda et al. v. Silsbee et al., 21 Howard, 161.
Shore v. Wilson, 9 Clark & Finnelly, 569; Clayton v. Grayson, 4 Neville & Manning, 606; Addison on Contracts, 846.
Abbott on Shipping (Ed. 1854), 368.
1 Parsons’s Maritime Law, 272.
Abbott on Shipping, 352.
3 Bingham’s New Cases, 355.
8 J. Scott; N. S., 65.
1 Parsons’ Maritime Law, 271.
2 Manning & Granger, 257.
8 Law Times, N. S., 207.
1 Campbell, 376.
Palmer, 397.
1 H. Blackstone, 273.
10 East, 295.
10 East, 555.
12 East, 381.
Mill-dam Foundry v. Hovey, 21 Pickering, 439; Bennet v. Pixley, 7 Johnson, 249; Smith’s Mercantile Law (6th London ed.), 312, 324.
8 Bingham, 124
5 Adolphus & Ellis, N. S., 265.
4 Exchequer, 136.
2 Manning & Granger, 257.
1 Id. 416.
1 Hurlstone & Norman, 183.
2 Manning & Granger, 263.
Same v. Same, 38 English Law & Equity, 339; Hurst v. Usborne, 18 C.. B., 144.
8 J. Scott, N. S., 64.
12 Moore, Privy Council, 228.
40 English Law and Equity, 415.
Same v. Same, 1 Hurlstone & Norman, 912.
l J. Scott, N. S., 110.
Dimech v. Cortlett, 12 Moore, Privy Council, 227
9 Exchequer, 709.
Adams v. Royal Company, 5 C. B. N. S. 492.
Freeman v. Taylor, 8 Bingham, 124; Clipsham v. Vertue, 5 Adolphus & Ellis, N. S., 265; Seegar v. Duthie, 8 J. Scotty, N. S., 45; .Terrabochia v. Hickie, Thurlstone & Norman, 183; Dimech v. Cortlett, 12 Moore; Privy Council, 227.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.