James McLanahan, Wilhelmus Bogart, and John Joseph Coiron, Plaintiffs In Error v. the Universal Insurance Company, Defendants In Error

• Decision Date: 01 January 1828
• Parties: JAMES J. MCLANAHAN, WILHELMUS BOGART, AND JOHN JOSEPH COIRON, PLAINTIFFS IN ERROR, v. THE UNIVERSAL INSURANCE COMPANY, DEFENDANTS IN ERROR
• Court: U.S. Supreme Court

26 U.S. 170

1 Pet. 170

7 L.Ed. 98

JAMES J. MCLANAHAN, WILHELMUS BOGART, AND JOHN JOSEPH

COIRON, PLAINTIFFS IN ERROR,

v. THE UNIVERSAL INSURANCE COMPANY, DEFENDANTS IN ERROR.

January Term, 1828

THE action, in the Circuit Court for the district of Maryland, was instituted by the plaintiffs in error, on a policy of insurance, in the usual form; and a verdict was rendered for the defendants, under the opinion of the Court, upon the first of nine exceptions, taken by the plaintiffs.

The material facts in the case were.—Insurance was effected in Baltimore, in the name of Thomas Tenant, to the amount of 10,000 dollars, on the brig Creole, for a voyage from Havre de Grace to New-Orleans, with liberty to touch and trade at Havana. The policy was dated upon the 22d day of December 1823. The insurance was made for the plaintiffs, the sole owners of the vessel, under the following circumstances:——

John Joseph Coiron, one of the plaintiffs, while at Havre de Grace, on the 19th of October 1823, addressed to Mr. John Stoney, of Charleston, the following letter:——

Havre, October 19th 1823.

Mr. John Stoney, Charleston——

DEAR SIR:—Please to have in red, for my account, for the account and risk of whom it may concern, ten thousand dollars on the brig Creole, of New-Orleans, Captain Jacob Goodrich, for New-Orleans, touching at the Havana. The brig and boats in the best order, having a round house on deck, containing fourteen births; the crew are seventeen in all. We intend sailing to-morrow. I have with me my family, consisting of two children and two nephews. The wind having shipped round suddenly, I write this in haste; my first will be more satisfactory to you, for particulars. The new Georgia upland cotton, twenty sous; rice, thirty francs.

Your devoted servant and friend,

JOHN JOSEPH COIRON.

And also another letter, as follows:——

Duplicate.

Havre, October 20th 1823.

Mr. John Stoney, Charleston——

DEAR SIR:—I have yesterday requested you to have insured, on my account, for the account of whom it may concern, ten thousand dollars, on the brig Creole, of New-Orleans, Captain Jacob Goodrich, from this port back to New-Orleans, touching at the Havana, the vessel and boats in the best order, having a roof on deck, containing fourteen births, manned by seventeen hands. You know the vessel—I have only to add, that I have made a thousand dollars' worth more of repairs and improvements on her. She is now a very convenient packet. I will feel gratified to hear from you, at the Havana. I intend but making a very short stay there, having two children and two nephews with me, and being anxious to meet Mrs. C., I cannot give you any favourable information respecting business, in this part of Europe.

With the pleasing expectation of being soon near you, I remain, respectfully, dear Sir, your devoted servant and friend,

JOHN JOSEPH COIRON.

This letter was enclosed in another, addressed by Quartier and Drogy, of Havre, to Mr. Stoney, dated 23d of October 1823, and stamped with the post mark of Savannah, December 10th; which, with the endorsements thereon, were as follows:——

P. Hesperus.

Havre, October 23d 1823.

John Stoney, Esq., Charleston——

SIR:—We are indebted to our mutual friend, Mr. J. J. Coiron, from whom we beg leave to hand you the enclosed letter, for an introduction to your respectable firm, and should feel particularly happy, if it became the means of an active correspondence between us; the produce of your country, and particularly cotton, being always of an easy and frequently advantageous sale in this part of France, on account of the vicinity of the metropolis, and the principal manufacturing towns, which gives Havre a decided preference over the other commercial ports of France. Georgia short staple, sells at 27 c. 29, and the stock on hand not considerable, few arrivals being expected, until the new crop, which can hardly reach our market before the month of December. It would, however, not be prudent to speculate on the present prices, as they will be likely to give way, on arrival of the new crop, and occasion considerable losses. Our opinion is, that purchases ought to be made at from 11 to 13d, and not to exceed 14d, to offer a benefit here.

Should you feel disposed to enter into a connexion of business with us, and honour us with an answer, we could, if you are so inclined, commence with an adventure of a hundred bales of cotton, for mutual account, and successively enlarge the speculation, if the result prove satisfactory. As to the reimbursement for our share, we authorize you to draw on us, at Paris, at sixty or ninety days sight, if the exchange be advantageous; else we may either make you remittance, or open you a credit at New-York. In case it should suit you to speculate for your own account, we beg to offer you the facility of an anticipation of half the amount of the consignments you may please to intrust to our care, on receipt of the bills of lading and order for insurance. We are also ready to offer the same facilities on shipments which you may sway to us, for account of other houses, and to grant you a share in the commission on the same.

Would oblige us to render us the following service, viz:—to procure acceptance of the enclosed bill of 420 dollars, sixty days sight, on Barbet & Esnard, of your city; and, when accepted, to hand the same to Mr. Sam Simon, at Augusta, &c.

Believe us, with due regard, Sir, your most obedient servants,

A. QUARTIER & DROGY.

John Stoney, Esq., Charleston, S. C.

No. 9, 1823.—QUARTIER & DROGY, Havre, Oct. 23.—Received 13th December.

Hesperus.

The letter of the 19th October, was despatched, in a single form, from Havre, on the 20th, by a vessel sailing on that day, for Philadelphia; and was received by Mr. Stoney, on the 15th December—a duplicate of the letter of the 20th, was despatched on the 23d of October, by the Hesperus, via Savannah.

On the 12th of December, 1823, Mr. Stoney applied to the Fire and Marine Insurance Company, and to the Union Insurance Company in Charleston, for insurance on the Creole, and both offices refused the risk, upon the ground that they ought to have received account of the arrival of the brig before that time. The offers were withdrawn, and upon the 13th of December, he wrote to Thomas Tenant Esqr. at Baltimore, the following letter. The letter was post marked at Charleston, on the day of its date; and was received, in Baltimore, by Mr. Tenant, on Saturday, the 20th December, in due course of mail.

Charleston, 13th December, 1823.

THOMAS TENANT Esqr. Baltimore:

DEAR SIR—I received, the day before yesterday, a letter from John Joseph Coiron, via Savannah, (extract annexed,) in which he requests me to have insurance effected on the Creole, on his account, and others, valued at ten thousand dollars, $10,000. The two offices here are afraid of their own shadow, and will not underwrite her. I must, therefore, request the favour of your having the insurance done, agreeable to his order annexed, and I will be answerable to you for the premium, &c. Good upland cotton 14 cents, and declining. I have only to confirm my respects of the 3d inst. which I hope you have received before this. If the insurance cannot be done with you, please write to New-York, to have the same effected.

Expecting the pleasure of hearing from you soon, I am, very respectfully,

Your most obedient servant,

JOHN STONEY.

Duplicate. (Enclosed.)

Havre, 20th of October, 1823.

MR. JOHN STONEY, Charleston:

DEAR SIR—I have yesterday requested you to have insured, on my account, for the account of whom it may concern, ten thousand dollars on the brig Creole, of New-Orleans, Captain Jacob Goodrich, from this port, back to New-Orleans, touching at the Havana. The vessel and boats in the best order, having a roof on deck, round house, containing 14 births, manned by 17 hands; you know the vessel. I have only to add, that I have made one thousand dollars' worth more of repairs and improvements on her. She is, now, a very convenient packet.

Extract Thomas Tenant, Esqr., of Baltimore, Maryland.

No. 1. John Stoney, Charleston, 13th Dec. 1823, and 20th Dec. [mail,] order for insurance.

On the 22d of December, 1823, Mr. Tenant applied to the defendants, the Universal Insurance Company, for insurance, by the following written order for the same; and, upon the contract thus made, the policy was on the same day filled up and executed. 'I want insurance, for account whom it may concern, on the brig Creole, Jacob Goodrich master, at and from Havre de Grace to New-Orleans, with liberty to touch and trade at Havana, against all risks—and in case of loss, the same to be paid to me. The vessel valued, independent of freight, to this sum—10,000 dollars.

The Creole was completely rebuilt and coppered at Charleston, S. C. in last summer, at great expense, and is now considered a remarkably fine vessel. She was, and I presume still is, owned by McLanahan and Bogart, and J. J. Coiron. The latter gentleman was on board her, and I presume is returning in her to New-Orleans: He writes from Havre, under date of 20th October, but does not say when the brig would sail. She sails under a certificate of ownership. What will be the premium on the above risk?

THOMAS TENANT,

By RICHARD G. COX.

Baltimore, 22d Decr. 1823, 8 per cent

Accepted. T. Tenant.

On the day the insurance was so made, Mr. Tenant had made application, in the same terms, to the Maryland, Chesapeake, and Baltimore Insurance Companies, all of which declined the risk. The Phoenix Insurance Company, upon application, declined, on the ground that the time of sailing was not ascertained; and the Patapsco Company were willing to take 5000 dollars, at 5 per cent. premium. The insurance effected by Mr. Tenant, was the only one made upon the Creole.

No information relative to the loss of the Creole was received in Charleston, nor was her loss known there, until the 15th of December; on which day the brig...