Majority — Johnson J.
p. 581Dorr v. The Pacific Insurance Company.Syllabus
Under a policy containing the following clause: “And lastly, it. is agreed, that if the above vessel, upon a regular survey, should be thereby declared unseaworthy, by reason of her-being unsound or rotten, then the assurers shall not be bound to pay their subscription on this policy,” and it was found by the jury that the vessel was seaworthy attiie'timeof the commencement of the risk, and when she sailed on the voyage insured: Held, that proof, by a regular survey, of unsoundness at any^subsequent period of the voyage, discharged the underwriters.
p. 582An exemplification of a condemnation of the vessel in a foreign Court of Vice Admiralty, reciting the certificate of surveyors, that the vessel was unworthy of being repaired, and unsafe and unfit ever to go to sea again, and produced in evidence by the insured tó prove the . loss, is “ a regular survey,” in the language of the above clause.
But the survey must correspond with the contract, and if the vessel be declared unseaworthy for any additional cause, besides being “ unsound or rotten,” it is not conclusive evidence of unseaworthiness.
Error to the Circuit Court for the Southern District of New-York.
This was an action of assumpsit upon a policy of insurance subscribed by the defendants on the 8th September, 1819, whereby they insured the ship Holofem, belonging to the plaintiff, and valued at $6,125, on a voyage from Wiscasset in Maine to Havana in the West Indies. The policy contained the following clause:
“ And lastly, it is agreed, that if the above vessel, upon a regular survey, should be thereby declared unseaworthy, by reason of her being unsound or rotten, or incapable of prosecuting her voyage on account of her being unsound or rotten, then the assurers shall not be bound to pay their subscription on this policy.”
A special verdict was found by the-jury, stating that the ship Holofem was the property of the plaintiff, and sailed on the voyage, insured, on the 9th September, 1819, and in the course of the voyage she met with violent gales, in consequence of which she sprung aleak, and after attempting,In vain, to pursue her voyage, was compelled to bear away for New-Providence, and arrived in the harbour she grounded,. from an insufficient depth of water, but was got
p. 583and a regular survey was had upon her by surveyors appointed by the Vice Admiralty Court at said Nassau, and upon such survey the said ship was condemned in the manner stated in the sentence of condemnation, of which the following is a copy:
Bahama Islands, } IN THE INSTANCE COURT OF VICE New-Frovidence. $ ADMIRALTY. SHIP HOLOFERN, JOHN S. THOMPSON, MASTER. In the name of God, Amen-!
L. S. At a Court of Vice Admiralty held the twenty-sixth day of October, one thousand eight hundred and nineteen, before me,' the Worshipful Theodore George Alexander, Esquire, Judge and Commissary of the said Court, John S. Thompson, the master of the American ship Holofern, by William Kerr and Henry M. Williams, his Proctor in that behalf duly appointed, came into Court, and alleged, that on the twentieth day of this instant month of October, he did exhibit a libel or information against the said ship, when be gave the Court to understand and be informed, that on the eighth day of October instant, the said John S. Thompson, by his Proctor aforesaid, did make humble petition to the Court, stating.; that on the ninth day of September last past, he sailed in and with the said ship from Wiscasset, in the State of Massachusetts, bound on a voyage to Havana, in the island of Cuba, with a cargo of lumber, spars, oars, anchors, and coals, and on the eighteenth day of the same month, in latitude 28° 39 , by observation, he experienced a very violent gale of of wind, during which the said ship sprung aleak :
p. 584that all hands were, in consequence thereof, employed at the pumps until the twenty -fourth of the same month, when he had proceeded on his voyage as far as the Bahama Bank : that at that time the people, being nearly exhausted by incessant labour at the pumps, they insisted on bearing up for New-Providence, which he thought it prudent to do as the wind was then westerly, and a-head for the Havana : that he accordingly proceeded for New-Providence with the said ship, and arrived in the harbour of Nassau on the twenty -sixth day of the said month of September : that since the arrival of the said ship in the said port, a part of her cargo had been landed, and, upon his inspecting and examining into her condition, he conceived her not only unfit to proceed to sea again in her present s' ate, but altogether unworthy of being repaired. Anc he therefore prayed that a warrant might forthwith issue out of this honourable Court, according to law and the usage and practice of the-said Court in such cases, to cause the said ship to.be surveyed and examined by persons duly competent in that behalf, who might report as to the true state and condition of the said ship. And. thereupon a warrant did issue accordingly, directed to William Gibson and John Russell, of the-island of New-Providence, shipwrights, and Samuel Clutsam, of the same aplace, late a master mariner, who did certify, on the nineteenth day of October instant, on oath, That on the eighth day of October instant they repaired on board the said American ship Holofern, John S. Thompson, master, riding at anchor in the harbour of Nassau, but not finding the said ship more than half
p. 585discharged, they could not then properly proceed to examine into her state and condition. And they did further certify, that on the sixteenth day of October instant, the said ship being then nearly discharged, they were enabled to inspect and examine into her state and condition, and having done so minutely and diligently, they found her to be in a very leaky state, and having at the same time caused a part of her in^ side ceiling to be stripped off, they discovered the said ship to be in a very decayed condition. And they did further certify, that they were of opinion, that the said ship was altogether unworthy of being repaired, and that she ought to be condemned as being unsafe and unfit ever to goto sea again.
Wherefore the said William Kerr and Henry M. Williams, as the lawful Proctor aforesaid, prayed me, the Worshipful Theodore George Alexander, Esquire, Judge and Commissary as aforesaid, that right and justice might be duly administéred to them and their party in the premises; that the said ship Holoférn might, by the decree of this honourable Court, be condemned as unfit for further service, and together with boats, tackle, apparel, and furniture, be ordered to be sold by the Marshal of this Court, and the proceeds thereof might be paid to the said John S. Thompson, or his agent, for the use of the owners and proprietors and insurers thereof, and that such other proceedings might be had and done in the premises as should be agreeable to law, and the style and practice of the Admiralty. And whereas, the usual and proper monition hath been issued and returned in this cause, and no person having appeared .
p. 586to show cause why the said ship should not be condemned agreeable to the prayer of the said master, therefore, 1, the said Theodore George Alexander, Esquire, Judge and Commissary as aforesaid, having considered the whole proceedings had and done before me in this cause, do hereby adjudge, pronounce, and declare the said ship unfit for the further service, and as such do condemn the said ship, and. direct that the same, together with her boats, tackle, apparel, and furniture, be forthwith sold by the Marshal of the said Court, and the proceeds paid to the said John S. Thompson, or his agents, for and upon account and use of the owner, proprietors, and insurers, thereof. In testimony wher.eof, I, the, said Theodore George
Alexander, Esquire, Judge and Commissary as aforesaid, have hereunto set my hand and caused the seal of the said Court to be affixed, at Nassau, the twenty-sixth day of October, in the year of our Lord one thousand eight hundred and nineteen.
(Signed.) TI-IEO. G. ALEXANDER, J. C. V. A*
Bahama Islands, ) W THE VICE ADMIRALTY INSTANCE Hem'-Providence. Í COURT.
In the case of the American ship Holofern, John S. Thompson, master, I certify the foregoing paper writing to be a true copy of the Decree made and given in the above cause.
In testimony whereof, I have hereunto set my hand, and caused the seal of the said Court to be affixed, this seventeenth day of July, in the year of
p. 587our Lord one thousand eight hundred and twenty. ALEXANDER M, EDWARDS, Dep. Reg. C. V. A *- ®
The special verdict also found, that the.said con- . demnation was obtained through the agency of John and George K. Storr, a mercantile house at NeW-Providence, to whom the Holofern was consigned by her captain, and that the said John and George K. Storr, (though ignorant of the insurance in this case,) were the general agents of the defendants to manage their concerns at New-Providence.
The special verdict further stated, that in consequence of this condemnation the ship was sold, and the voyage lost: that the plaintiff exhibited to the defendants the requisite preliminary proofs of interest and loss, more than thirty days before bringing the action.
That the said ship was seaworthy at the time of the commencement of the said risk, and when she sailed upon the voyage insured; and assessed the plaintiff’s damages, in case he was entitled to recover, at.$6,625 20.
The record also contained a bill of exceptions, by which it appeared, that the plaintiff produced a copy of the record of the said Vice Admiralty Court, as preliminary proof of loss, and the judge charged the jury that the said copy of the said sentence of condemnation having been produced in evidence by the counsel for the plaintiff, as preliminary proof of loss,
p. 588was, as against the plaintiff, sufficient evidence of a regular survey,, in the absence of any proof to the contrary: — to which opinion the plaintiff’s counsel . j excepted.
]t further appeared, that the said Admiralty proceedings at New-Providence were conducted under the directions of Messrs. John and George K. Storrs, a mercantile firm of that place, under whose charge the captain had placed the Holofern. The Messrs. Storrs were authorized by a general power of attorney, set cut in the bill of exceptions, to attend to the interests of the defendants at New-Providence, but there was no evidence that they were apprised that the defendants had insured the Holofern.
The counsel for. the plaintiff, for the purpose of proving that the said condemnation had been fraudulently obtained, inquired of the captain of the Holofern, who was a witnesá in the cause, whether he ever made the statement represented by the said sentence of condemnation, to have been made in his petition to the said Court, to wit, that he conceived that the Holofern was not only incapable to proceed to sea in her then state, but altogether unworthy of being repaired ? This question was overruled by the judge.
The same witness was then asked, by the plain- . tiff’s counsel, whether the inside ceiling of the said ship was ever stripped off, as stated, in the said sentence of condemnation, and whether she was not in such a situation, by reason of the position of such parts of her cargo and ballast as remained on board, and of the water in the hold, that it could not have
p. 593mary, (and probably an imperfect one,) which is contained in the rece d of the Vice Admiralty Court, and it is apparent from this record, that the words of the surveyors are not given. If there ever, was any paper in writing signed by the surveyors, it has been wholly re-rriodelled. All the tenses of the verbs are changed.The defendants should have produced the survey itself, or, at least, have distinctly and unequivocally required the plaintiff to produce it. They did neither.Upon what evidence then do the defendants rely to substantiate the fact in question ? Solely on the record of the Court of Vice Admiralty at New-Providence.It is first to be observed that the clause in question in theNew-York policies (of which this isone) differs in one respect from the correspondent clause in the policies of the cities south ofNew-York, upon which adjudications have been had. In the southern policies, the phraseology is such as might seem to point to judicial proceedings ; here the words are, “ if the above vessel upon a regular survey should be thereby declared, he. distinctly placing the bar on the survey alone.The great question between the parties is, whether the decree in the Vice Admiralty Court is conclusive evidence of a regular survey; for if not conclusive, the verdict in our favour will entitle us to judgment.It will scarcely be pretended, that independently of the stipulation in the policy, the record of the Vice Admiralty Court, or even the survey itself, however au~
p. 595did exist, and was proved in everv case reported in the books. Now, we insist that our stipulation, which merely makes this document evidence, does hot in any degree dispense with the ordinary and regular proof of the existence arid conterits of the document itself. The record of the V.,A. Court was hot competent to establish this document, and, as before observed, it does not even attempt to do it.If the record be conclusive evidence of the fact and contents of the survey, it must be for one of two reasons.1. Because it was produced by the plaintiff — or, 2. By its own. efficacy.1st. The plaintiff was bound, by a provision in the policy, to produce to the defendant preliminary proof' Of loss, thirty days before the commencement of the suit, and it was necessary to show on the trial, that he had exhibited this evidence to the defendant.In point of fact, the decree of condemnation in the Y. A. Court of New-Providence occasioned, or rather consummated that loss, and, therefore, the plaintiff produced a copy of that decree. His having done so furnishes no reason why the recitals in that decree should be evidence against him, much less why they should be received as-incontrovertible; and the hardship of such a rule is the greater in a case like the present, where the plaintiff was required to pro~duce the evidence. A protest of the master is usually produced among the preliminary proof, but it was never supposed that the insured was conclusively bound by all the allegations the captain might choose
p. 597decree of the V. A. Court, t£ whereupon the defendants required no further preliminary proof, but refused to pay on the ground of unSeaworthiness.” Agreeably to the spirit of the rule, they ought now to be held to the ground then taken.Again : this objection, viz. that we were bound to produce the survey, assumes a very important fact,which we by no means admit, viz. that there is or ever was a written document signed by the surveyors, which could be produced. This throws us back to the great and only question in this part of the cause, viz.' vdiether the record of the V. A Court is conclusive evidence.But we contend, that independently of its production by the plaintiff, the sentence o ’ the Y. A. Court has not, by virtue of the stipulation of the parties, or its own efficacy, any such conclusive effect as is contended for by the defendants.
It may be said that the necessary effect of the clause is to refer the parties to the municipal regulations of any port where the vessel may happen to be in distress, for there the survey must be had. We admit this in its fullest extent. The foreign Court is to order the survey, appoint the surveyors, and the proceedings are all to be conducted according to the local regulations. But this is all. The parties here made no stipulation as to the mies of evidence, upon which the cause is to be tried here. It is universally true that the evidence is to be given according to the lex fori. We consented that the V. A. Court of New-Providence might order the survey; but then we were to be bound by the survey ftself, produced in
p. 599interested motives, and thus to render more probable . the fraudulent intent imputed to him. It was overruled on the ground that better evidence might have * ° been produced. But the account sales, which is a commercial document, only admissible by a relaxation of the rules of evidence in regard to foreign transactions, was not so good evidence, as the res gesta, which-he offered to prove. The witness, it is true, was not present at the sale, but he offered to prove the fact of his recovering payment from the surveyor, asa purchaser of part of the cargo.The rule is universal, that fraud may be proved, and when proved, will vitiate all proceedings. It must be proved directly, when the party injured by it has á direct opportunity ; and, therefore, in the ordinary case of misconduct of jurors or arbitrators, the party must move to set aside the verdict or award. Butthis rule does not hold where.the person injured was not a party to the proceedings, and of course had no such opportunity. Whatever objections a party to the proceedings might take at the,time, a third person may take at any time, when the proceedings are made to bear against him. But it may be said, that the captain was our agent, and the proceedings were at his instance. This begs the question ; for if the loss were such as tb authorize the abandonment, then the captain by relation was the agent of the underwriters. Besides, the Messrs. Storrs were the agents of the defendants, Their interference in the proceedings is liable to strict scrutiny, and any impropriety ought to invalidate proceedings conducted under their direction, even though it were shown, (as it is not) that the Captain connived with them.
p. 605deration that the account of sales was better evidenee; the declarations, or directions, of an agent, except when they are part of the res gesta, are not evidence against the principal. The circumstances, too, were irrelevant. No fair presumption flows from a purchase of part of the cargo5. As to the supposed collision between the survey and the finding of the jury, it may be observed, that there is no necessary collision. The survey finds the vessel unseaworthy on the 16th of October. The jury find that she was seaworthy when she sailed, on the 9th of September. But ships have the principle of decay inherent in their constitutions, and how can the Court, judicially, say that during the 37 days which elapsed between the sailing and survey, the vessel may not have passed by the progress of decay from a state oFbare seaworthiness to unseawprthinéss ? And, even supposing, there is a collision, the finding of the jury must give way to the survey, because the finding in opposition to the survey was incorrect. Perhaps the Court ought, upon the production of the survey, to have directed the jury to find for the defendants, and to have rendered instanter that judgment which they rendered afterwards. But was this delay error, and such an error as the plaintiff can take advantage of ?
The agreement that the survey shall be conclusive, is the voluntary agreement of the parties. Persons of full age and sound minds have a right to make what contracts they please ; and to have them enforced, provided they be not unlawful. Courts
p. 607have the state of a vessel definitely ascertained where she is broken up, and examined. It is a wise provision, which has been sanctioned by experience, and adopted in other States, and ought not to be made a dead letter by interpretation.Mr. H. D. Sedgwick,
in reply, stated, that it had been contended that it was the plaintiff’s duty to have excepted at the trial to the proof of the survey. He did all that from the nature of the case could have been done. The proof, such as it was, of the survey, was inseparably connected with the preliminary proof of loss, which he was bound to produce. When the defendant’s counsel claimed the effect now sought to be given to the supposed survey, the plaintiff resisted, and excepted to the opinion of the judge that the decree was sufficient evidence of the survey.Besides, the plaintiff’s guarded and qualified admission, viz. that the copy produced was a true copy of the record of the Vice Admiralty Court, shows the intention of the parties. The defendants were therefore fully put upon their guard, and would have produced and proved the survey, if they could have done so.An analogy is supposed to exist between the report of the surveyors, and the award of arbitrators; it is said that an award cannot be impeached under the general issue; and that partiality cannot be pleaded to an administration bond. But these remarks, true or false, apply only to the common law rules of pleading. We are
p. 608read ip admit that the plea nul tielrecord, which denies ihe feet of the award, would no'c lay a proper founelation fox evidence to show partiality in the arbitrators. But it Is enough for our argument, that an award may j.)e impeached for the misconduct of the arbitrators; and whether for this purpose the resort be, as stated on the other side, to a Court of equity, or whether the common law tribunals are competent to the purpose, is a matter wholly depending on the municipal institutions of the country. Some- remedy is confessedly provided. Now, here we had none but to impeach the survey, as we sought to do, on the trial. The opposing counsel showed how much he was pressed- by this consideration, when he referred us to the Vice Admiralty Court at New-Providence, to have the proceedings .overhaled in that tribunal. Such an application would be without a precedent. A survey is never granted, but upon the application of the ship master, founded on present necessity. The Holofern may now be at the bottom of the ocean, or if in existence, not at New-Providence; and if she were there, how could a survey now ascertain what her state was on the 8th of October, 1819, the time when the survey was had, and to which the question relates ?Supposing that we are wrpng in contending that the recitals of the decree are not evidence against us, inasmuch as we produced the decree, still it is competent to us to disprove them. The rule is. merely that a party shall not impeach the character of his own witnesses. He may disprove any facts stated by them. This is the more essential in the case of a
p. 611of the. risk, at least with relation to questions of seaworthiness ; and as it is impossible for a sound vessel to become rotten in a month, it is argued that the verdict of the jury ought to prevail against the evi> dence,. or'influe.nce of the condemnation.
But we think otherwisé. The words of the contract expressly look forward to a future event, “ if the said vessel, upon a regular survey, should be thereby declared unseawo.rthyobviously contemplating two objects : first, tha't a state of rottenness ascertained at any period of the voyage insured shall be conclusive evidence of original unsoundness ; secondly, that the determination of that fact by means of a regula? survey should be received as conclusive evidence between the parties. It is unquestionably true-in thé abstract, that a certificate of survey is not legal evidence 5 because the examination of the surveyors themselves would be better. But parties may by compact adopt that or any other, as the criterion far deciding on their relative rights; and in the case before us, the rights of the parties are made to depend on the fact of the survey rather than qu the truth of it. They have chosen a rule of decision for themselves, and we are not to inquire into their motives or prudence in doing so. Whether the survey in this instance was duly substantiated, is the next question which the case presents. And here it becomes altogether unnecessary to decide whether a condemnation, in ordinary cases, carries with it the evidence of thé fact o:r of the fairness of the survey. For, it must be observed that the exemplification of the proceedings in the Court of Nice Admiralty in New-Providence
p. 612was produced in evidence by the plaintiff “himself. He claimed for aAotal loss, and to support this claim it became necessary to show that the vessel wascondemned and sold, and the voyage broken up in New Providence. But if this exemplification should bé admitted to prove those facts alone, without exposing the causes which led to them ; if the eyes of thejury were to be shut against every thing but the outside of the record,
non constat, but the vessel may have been condemned for some cause for which the underwriters were apt liable, and his case would not .have been made out. Such subtleties cannot be countenanced the survey was a part of the
res gesta, and the plaintiff could not possibly have made out the loss without introducing, the survey which led to it.
The survey was, therefore, properly in evidence, and that it was “ a regular survey,” in the language of the covenant, is to be deduced from two considerations. First, if there was any irregularity in the survey, it is attributable to the plaintiff’s own agents ; for even the Storrs, in this case, although the general agents of the company, were voluntarily selected by the captain. But, secondly, the survey bears every evidence of regularity or authenticity that can reasonably be required. On this subject, the nature of the contract of insurance casts the parties on the municipal regulations of all the world. Every commercial country has its own regulations on the subject of surveys. It is properly a .subject of admiralty jurisdiction ; since mariners and freighters have to claim the aid of the admiralty to release them from their contract in cases of a defect of seaworthiness. A
p. 613regular survey -must, therefore, in every instance, Jbe such as is known to the laws and customs of the port in which a vessel happens to be. In this instance, both from the jurisdictLi. assumed by the Court, and the known habits of British jurisprudence, the mode of passing a survey through a Court to give it authenticity, may well be adjudged a regular survey according to the laws of the port into which this vessel was forced. If this be the case, it follows that thp exemplification of the proceedings of that Court is not only admissible evidence, but perhaps the only evidence that could be received of the survey. And as to the idea of extracting the original return from the files of that Court, to produce it here, it will not bear reflection. The same considerations fullyjustify the Court below in rejecting the evidence of the capta ;n, offered to rebut the decision of a Court, and that decisión, both procured by the plaintiff’s own agent, and produced by himself in evidence.
But it is contended, that though the construction of the covenant be with the defendants, and the survey be held to be legally before the jury, and “a regular survey” within the meaning of the policy, still it is not conclusive against the plaintiff, inas much as it certifies the existence of other causes of loss, besides the decayed state of the vessel.
It is unquestionably true, that thé survey must respond to the covenant, and if the vessel be declared unsea worthy, for any additional cause, besides her beingj in the language of the policy, “ unsound or rotten,” the defeasance, if it may beso called, will not avail the defendant. But what is the case here?
p. 614All the facts to be gathered from the exemplification of the condemnation, taking it from the commencement to the close, are, that the vessel encountered tempestuous weather, that, she was forced to put into New-Providence, in consequence of springing a leak, that the Captain “ conceiving her not only unfit to proceed to sea again in her present state, but altogether unworthy of being repaired,” libelled her in the Admiralty, and prayed a warrant of survey upon her; upon issuing the warrant, the surveyors proceeded to an examination, and finding the vessel very leaky, stripped off part of her ceiling, and found her, as they report, “ in a very decayed condition.” They thereupon certified her to be “altogether unworthy, of being repaired, and that she ought f;o be condemned as being unsafe and unfit ever to go to sea again.” Here decay is exhibited exclusively as the mortal disease, and every thing else, is either inducement or consequence. A bad vessel might have made a safe voyage, had she experienced tiro trying ■weather, and a good vessel would have encountered gales without injury. Springing a leak was the consequence of that state of decay which weakened the whole fabric, and her being unworthy of repair* or unfit to go tó sea, was no additional cause of condemnation, but the mode in which her disease produced her destruction. Causes upon similar policies, and under similar circumstances, have in several instances passed in review before the tribunals of this country, and received decisiohs consonant to this. The.case between the Marine Insurance Company pf Alexandria and Wilson, decided in this Court, did
p. 615not resemble this in any prominent feature, except that the policy contained the-same clause, and the defence was attempted under the protection ofit. But 4 • neither in the evidence nor in tl¡te pleadings, did the defendants bring themselves within the provisions of the clause.
This Court is therefore of opinion, that there was no error in the decision of the Court below. But an inconsiderable omission (made palpable by the briefs furnished by both parties) having been committed in copying the record, and which leaves it doubtful in what form this decision is to be certified to the Court below, this Court will, for the present, order, a certiorari to issue, that the correction may be duly made.
Certiorari awarded.