Queen Ins Co of America v. Globe Rutgers Fire Ins Co, 116

• Decision Date: 07 January 1924
• Docket Number: No. 116,116
• Citation: 263 U.S. 487,68 L.Ed. 402,44 S.Ct. 175
• Parties: QUEEN INS. CO. OF AMERICA v. GLOBE & RUTGERS FIRE INS. CO
• Court: U.S. Supreme Court

263 U.S. 487

44 S.Ct. 175

68 L.Ed. 402

QUEEN INS. CO. OF AMERICA

v GLOBE & RUTGERS FIRE INS. CO.

No. 116.

Argued Dec. 6, 1923.

Decided Jan. 7, 1924.

Messrs. Oscar R. Houston and D. Roger Englar, both of New York City, for petitioner.

[Argument of Counsel from pages 488-489 intentionally omitted] Mr. Van Vechten Veeder, of New york City, for respondent.

Mr. Justice HOLMES delivered the opinion of the Court.

This is a libel in admiralty upon a New York policy insuring cargo on the Italian steamship Napoli lost by collision in the Mediterranean, in or near the Gulf of Lyons, on July 4, 1918. The libellant also in New York had insured the cargo concerned against marine risks and the libellee had insured it against war risks. Each company by agreement paid half the loss subject to adjustment and took an assignment of the claim of the assured against the other. The main question in the case is whether the loss was covered by the libellee's policy as the libellant contends. We were asked to assume that the exception of 'all consequences * * * of hostilities or warlike operations' in the marine policy and the liability for 'acts of kings, princes and people authorized by and in prosecution of hostilities between belligerent nations' assumed by the libellee were coextensive. For the purpose of argument we shall do so. The courts below in deference to the English decisions held that the loss could not be attributed to warlike operations. There was a difference of opinion as to whether the collision was due to faulty navigation, but all the judges agreed that it was expedient to follow the English law. (D. C.) 278 Fed. 770; (C. C. A.) 282 Fed. 976.

It will not be necessary to state the facts in detail. They are fully set forth in the decisions below but those that are material to our conclusion need but a few words. The Napoli sailed from New York for Genoa with a cargo of which a part was intended for the Italian Government and a small part was munitions of war. All of it was contraband. At Gibraltar she joined a convoy, as it was practically necessary to do although not ordered by the military powers. The convoy sailed with screened lights, protected by British, Italian and American war vessels, and navigated by an Italian commander on the Napoli, subject to the command of a British captain as the senior naval officer present. The route to be followed was ordered beforehand up to a point where instructions from Genoa were to be received but were not, as the convey was ahead of the scheduled time. At about midnight July 4 another convoy similarly commanded met this one head on. It was seen only a very few minutes before the meeting, there was much confusion, and one of its vessels, the Lamington, a British steamship, struck the Napoli and sank her. As our judgment is based on broader grounds we do not describe the movements bearing upon the nice question whether the navigation of the Napolior or the Lamington was in fault.

To show that the loss is to be attributed to warlike operations the petitioner points to sailing under convoy and without lights, both made necessary by the war, as enough. To this it adds that the cargo of the Napoli was an aid in carrying on the struggle, a matter of...