Document: 343 U.S. 236 72 S.Ct. 666 96 L.Ed. 907 UNITED STATESv.ATLANTIC MUT. INS. CO. et al. No. 450. Argued and Submitted March 7, 1952. Decided April 21, Mr. James L. Morrisson, Washington, D.C., for petitioner. Leonard J. Matteson, New York City, respondents Farr Sugar Corp. Messrs. Cletus Keating, Edwin S. Murphy, Louis Gusmano, all of respondent Belgian Overseas Transport S.A. etc. Justice BLACK delivered the opinion Court. 1 Respondents are cargo owners1 who shipped goods on steamship Nathaniel Bacon owned by petitioner, United States, operated as a common carrier hire. It collided with Esso Belgium respondents' was damaged. The ships were also This litigation brought in District Court to determine liability damages suffered owners physical damage caused ships. agreed that: 2 (a) collision due negligent navigation employees both no way at fault. 3 (b) Belgium, one two joint tortfeasors, must pay '100%' Bacon's owners. 4 (c) Because § Harter Act2 4(2) Carriage Goods Sea Act,3 barred from directly suing damages. 5 (d) Since mutually fault, aggregate should be shared both.4 6 (e) In computing ships, account taken recovered 7 (f) bill lading issued contained 'Both-to-Blame' clause.5 clause, if valid, requires indemnify any amounts loses because included divided between 8 only question presented us is whether clause valid. Respondent contend that it void unenforceable violation long-standing rule law which forbids carriers stipulating against consequences their own or employees' negligence. Petitioner, contends Act, substantially reenacted provides special statutory authorization permitting ocean deviate general stipulate negligence they did here. held 90 F.Supp. 836. Appeals reversed. 191 F.2d 370. Deeming decided sufficient importance justify our review, this granted certiorari. 342 913, 359. 9 There cannot immunity agents' While fashioned courts, has been continuously accepted guide common-carrier relationships more than century6 acquired force precision legislative enactment. Considering relationship said 1901 'in view well-settled nature time statute adopted, result approval clear implication given then existing cases where not changed.' Kensington, 183 263, 268—269, 22 102, 104, 46 190. Our therefore language carved out exception so permit deprive its part fruits judgment obtain direct action noncarrying vessel contributes collision. 10 Prior passage Act 1893, U.S.C.A. 190 seq., incurred both-to-blame could full either ship. Atlas, 93 302, 23 863. under some circumstances, took away right owner sue his carrier's servants agents. tort Chattahoochee, 173 540, 549—550, 19 491, 494, 495, 43 801. Nor go far insulate responsibility another ship Delaware, 161 459, 471, 474, 16 516, 522, 523, 40 771, declined give such broad interpretation even though itself, 'broadly construed' considered alone, would have justified an interpretation. addition, does exonerate obligation share noncarrier one-half paid supra, pages 551—552, page 495; see Aktieselskabet Cuzco v. Sucarseco, 294 394, 401—402, 55 467, 470, 79 942. 11 Apparently until about forty years after shipowers first attempted stipulation recovery See W. Bruce, 14 894, reversed other grounds, Cir., 94 834. present effort shipowners appears date 1937 when North Atlantic Freight Conference adpted clause.7 So appears, test legality appeared courts. When Congress passed 1936, 1300 indicated surpose bring change long-existing obligations shippers relevant validity clause. At interested groups owners, shipowners, representatives insurance companies before congressional committees.8 Although petitioner appear find comfort hearings 1936 nothing persuades intended alter respect material controversy. 12 Petitioner argues remove 'anomaly' arises Court's construction Act. 'anomalous' hold liable alone guilty but same indirectly jointly it. Assuming moment rules symmetrical, we think owner, unquestioned recover vessel, can compelled up portion exacted lading. Moreover, there indication designed long-established burden losses sustained equally. Yet very purpose exacting enable escape equal shifting 13 Here, once more, 'we consideration best fair accommodation diverse related interests'9 varied affected controlling without authority agents servants. If changed, Congress, it.10 Affirmed. 15 FRANKFURTER, whom BURTON joins, dissenting. Only few weeks ago unanimous Fourth Circuit, Lilly C.I.R., 188 269, had opposed public policy, agreements whereby retailers eyeglasses turned over purchase price oculist referred customer them. doing, voice(d) business ethics policy involved' agreements. 90, 97, 497, 501. refusal make private views into legal standards activities men affairs increasingly characterized decisions vague area challenged offensive what deemed legally policy. 'In absence plain (dominant public) through long governmental practice enactments, violations obvious ethical moral standards, assume declare contracts War Department contrary policy.' Muschany 324 49, 66—67, 65 442, 451, 89 744. No unrestrained justification warrants courts strike down Jedged standard, enforced. 17 Before Act1 passed, seagoing passengers defined exercise admiralty maritime jurisdiction case case. Toward stood relation insurer, save act God; owed duty highest care. holding mark thought safety operation achieved undue imposition eliminated. 18 sought avoid these stipulations bills lading, relieving them liabilities incur laid upheld efforts, reserved refuse enforce contractual exemptions trenched upon judicial notions policy.2 most important limit thus set power contract commonlaw relieved hire Applied railroads, Central R. C. Lockwood, Wall. 357, 21 627, doctrine extended sea later Liverpool & Great Western Steam Co. Phenix Ins. Co., 129 397, 469, 32 788. Underlying decision premise agreement, enforced, tend relax vigilance care seamanship threat encouraged. 371, 377—378, 627. process body exceptions developed typical growth judge-made system. Without guidance, judges deciding necessarily thrown resources ascertaining applicable particular situations. 20 judge's function become otherwise legislature formulated Courts longer large. They carry disregard determination good demands. Twin City Pipe Line Harding Glass 283 353, 51 476, 477, 75 1112. By supplanted ideas. legislation, often case, represents compromise among competing interests. judicially imposed insurers' liability. return required forego possibility avoiding certain specified obligations. Finally, those fact performed,3 faulty altogether disallowed. provision, embodied Act,4 expressed rejection conceived foundation antedated namely, necessary spur discarded remains revive basis striking agreement here question. 'The Legislature decide shall be, intimated will, however indirectly, will recognized obeyed. major conclusion statute, induces enactment, may terms, adequate discharge say: We you driving at, it, before.' Johnson 163 F. 30, 32, L.R.A.,N.S., 1194, per Holmes, J.; Landis, Statutes Sources Law, Harvard Legal Essays, 213. To sure, terms prescribe amount non-carrying ship, attributable payments made non-carrier vessels blame. Hence 801, available mere Similarly, period shortly since specify participate average5 peril navigation, participation stipulated Irrawaddy, 171 187, 831, 130. But participation, sustain stipulation. Jason, 225 560, 56 969. 'Instead merely sanctioning covenants limiting (the shipowner's) liability, went further rendered unnecessary repealing declaring shipowner diligence respects seaworthy, properly manned, equipped, supplied, neither her etc., responsible loss resulting faults errors management antithesis worth noting. says shipowner: responsibilities incident your occupation carrier, although agree relieved; (provided fulfil conditions specified) cargo." 50—51, 562. opinion, master crew, him average contribution growing negligence; * *.' Id., 55, 564. 24 bears exactly Chattahoochee Jason bore Irrawaddy. rejected disregards appropriate considerations governed application earlier decisions.6 derive relieves entirely wholly blame loss, implied restriction voluntary arrangement relief half blame, surely odd use put statute. fashion ought less perverse illogical operation. 25 suggested, however, real meaning remitted whatever immunities granted. That doctrinaire take disposes notion.7 What legislate generally relations commerce. Generally, comprehensively code excluding consensual arrangements within industry. legislation 'indicate(s) require(s) law, expresses specific likely occur mind.' 32. heed admonition Holmes 'that dealing statutes sometimes too slow recognize covering imply different exclude reference scope.' Panama Rock, 266 209, 215—216, 45 58, 60, 69 250, J., Taft, C.J., McKenna Brandeis, JJ., I Congressional pronouncement policy—when exempted navigation—precludes issue. Certain parties suit subrogees insured Some insured. 27 Stat. 445, U.S.C. 192, 192. section exercised making seaworthy 'neither agent, charterers, 49 1210, 1304(2), 1304(2). nor arising from—(a) neglect, default master, mariner, pilot, ship; bear two-thirds one-third total damages, normal division Halcyon Lines Haenn Ship Ceiling Refitting Corp., 282, 284, 277, 279. reads follows: 'If comes act, neglect Master, pilot Carrier carried hereunder of, to, claim whatsoever goods, payable set-off, recouped carrying Carrier.' See, e.g., 1889, 438—444, 470—473, 788; Knott Botany Worsted Mills, 1900, 179 69, 71, 90; 1873, 627; Boston Maine R.R. Piper, 1918, 246 439, 38 354, 355, 62 820; Ansaldo San Giorgio I. Rheinstrom Bros. 1935, 496, 483, 484, 1016. And collected Am.Jur. 874—877. Robinson, Admiralty, 872, 873; Knaugh, Ocean Bills Lading (3d ed. 1947), 95, 136, 175. Hearings Senate Committee Commerce 1152, 74th Cong., 1st Sess. 286, 280. overlooked argument contribute sacrifices expenses order preserve whole. 'was admitted circumstances he responsibility.' 403, Here relieve itself connection inflicted ship—'circumstances (not) Feb 13, 445. now superseded 1207, changes issues involved. based reservation observation shipper little choice accept carriers' terms. 379, 441, circumstance many upheld. provided refusing offended pronounced proviso eliminated 1304, 1304. sacrificed residue shipwreck, each property saved proportion value whose benefit. characteristic Dean Barr Ames's fertile generalization manifestation comprehensive quasi-contractual principle unjust enrichment. Reliance 190, misplaced, quotation setting. passenger's baggage, ticket noted applied 'when engaged classes carriage coming statute'. 268, 104. passengers' baggage class carriage, struck ground applied, violative stowage, specifically forbidden Act; course, voiding retained force. Certainly affirming continued applicability withdrawn negligence, event totally inapposite pre-existing cargo, not, drawn blue. reality had, outlawing regarding prohibition continue defined, limited qualification. rule, statutory. action. outlaw generally. reasons grounded denied smacks fanciful suggest really raise absolute premise.

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