THE JASON
Citation | 225 U. S. 32 |
Decision Date | 13 May 1912 |
Court | United States Supreme Court |
OF APPEALS FOR THE SECOND CIRCUIT
A general average agreement inserted in bills of lading, providing that, if the owner of the ship shall have exercised due diligence to make the ship in all respects seaworthy and properly manned, equipped, and supplied, the cargo shall contribute in general average with the shipowner even if the loss resulted from negligence in the navigation of the ship, is valid under the Harter Act, and entitles the shipowner to collect a general average contribution from the cargo owners in respect to sacrifices made and extraordinary expenditures incurred by him for the common benefit and safety of ship, cargo, and freight subsequent to a negligent stranding.
Under § 3 of the Harter Act, the cargo owners under the same circumstances have a right of contribution from the shipowner for sacrifices of cargo made subsequent to the stranding for the common benefit and safety of ship, cargo and freight.
Under the same circumstances the cargo owners cannot recover contribution from the shipowner in respect of general average sacrifices of cargo, without contributing to the general average sacrifices and expenditures of the shipowners made for the same purpose.
The essence of general average contribution is that extraordinary sacrifices made and expenses incurred for the common benefit are to be borne proportionately by all who are interested.
The Irrawaddy, 171 U. S. 187, distinguished.
Questions certified in case reported in 162 F. 56 and 178 F. 414 answered.
Cross-libels were filed in the United States District Court for the Southern District of New York between the owner of the steamship Jason and the firm of Arbuckle Brothers, owners, and the Insurance Company of North
America, insurers of part of that vessel's cargo, to recover general average contributions. The district court dismissed both libels. 162 F. 56. Upon appeal, the circuit court of appeals at first filed an opinion for affirmance (178 F. 414), but afterwards granted a rehearing, as a result of which the questions of law at issue were certified to this Court as follows:
MR. JUSTICE PITNEY, after stating the case as above, delivered the opinion of the Court.
That the facts present a case of general average within the meaning of the clause embodied in the bills of lading is entirely clear. There was a common, imminent peril
involving ship and cargo, followed by a voluntary and extraordinary sacrifice of property (including extraordinary expenses), necessarily made to avert the peril, and a resulting common benefit to the adventure. McAndrews v. Thatcher, 3 Wall. 347, 70 U. S. 365; The Star of Hope, 9 Wall. 203, 76 U. S. 228; Ralli v. Troop, 157 U. S. 386, 394.
The principal controversy is upon the question of the validity of the agreement that, if the shipowner "shall have exercised due diligence to make said ship in all respects seaworthy, and properly manned, equipped, and supplied," then, in case of danger, damage, or disaster resulting from (inter alia) negligent navigation, the cargo owners shall not be exempted from liability for contribution in general average, but, with the shipowner, shall contribute as if such danger, damage, or disaster had not resulted from negligent navigation. The facts show that the shipowner had fulfilled the condition imposed upon him by this clause -- that is, he had "exercised due diligence to make said ship in all respects seaworthy and properly manned, equipped, and supplied." The question presented for solution turns upon the effect of the third section of the Act of Congress approved February 13, 1893, c. 105, 27 Stat. 445, known as the Harter Act, and of the decision of this Court in the case of The Irrawaddy, 171 U. S. 187.
Prior to the Harter Act, it was...
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