Eastern times. [volume] (Bath, Me.) 1846-1857, 1853-05-05
Important Decision.

LIABILITIES OF SHIP OWNERS IN CASES OF
CoLLIsIoN.-The very recent decision OF the
Supreme Court OF the United States respect-
ing the liability Of underwriters 10 pay for
losses occasioned by collision Of vessels, mer-
its the prompt attention of every shipowner.
This decision will be found in the Monthly
Law Reporter Of April.
The opinion of the court, delivered by
Judge Curtis, al the last term AT w ashing ton,
reverses the previous decisions of Judge Sto-
nv, OF the same court, and comes in direct
conflict with the decisions OF the Supreme
Court Of this Stately whichit has been
held that underwriters are liable 10 repay 10
the insured damages paid 10y him 10 the own
ers of another vessel and cargo, suffered in a
collision occasioned by the negligence Of the
master or mariners OF the vessel Insured
This liability of underwriters is one which
they have never been willing 10 acknowledge,
or at least, have acknowledged with reluc-
tance but the decisions of our Courts have
established the fact that il was u liability
which they assumed in their policies, aud
the underwriters of Boston have in more
than one instance paid losses of the kind re-
ferred TO. Nevertheless, the Supreme Court
of the United StaIas is the highest tribunal
in the land, and though its decisions do not
necessarily change those oi our State Courts,
still It's influence cannot fail 10 be in some de-
gree felt; and underwriters, with the weight
of such powerful opinions on their side, will
be more than ever reluctant 10 acknowledge
liability which they have always endeay-
ored to repuGiate.
As collision is one Of the mos; prominent
perls of the sea, it would seem to be one OF
the risks most necessary 10 insure against,
and the damage resulting from collision,
whether 10 the vessel Insured, or 10 the ves-
sci not insured, but caused by the fault OF
the insured vessel, which is responsible tor
damages done 10 the other vessel, is risk
which should be covered by insurance; and
if there is any doubts of this risk being Gov
cred by the policies OF insurance now grained
by underwriters in this country, the sooner
these doubts are solved, by modification Of
the terms Of the policy, the greater will be
the security Of the ship owners.
The object Of effectng insurance is gene
rally supposed to be to protect the assured
from all The ordinary losses, which he is like
ly 10 meet with; and underwriters have al
ways been content 70 take the risk of the neg
ligence, carelessness, or fault of the master
or mariners of vessels, when through such
carelessness or fault the vessel insured was
stranded, or lost, or even damaged by collIs-
ion.
The distinction then that they are not la
Bile for damages done to the vessel not insur-
ed by The one insured, through; the fault OF
The latter, will we fancy hardly be recognized
by merchants, for if the insured vessel is La
bic for such damages, it is clearly damage
TO herself and her owners and the fault OF
the master or mariners should be insured
against in this case, and the owner protected
from loss, the same as if the vessel had been
carelessly stranded. II this principle be not
recognized, every one can see 10 what fear
full losses those interested in navigation would
be liable.
Valuable ships and valuable freights would
be lost, and the owners, though nominally
protected be Insurance, might lind themselves
and their families reduced from affluence TO
poverty. The foundations, even, Of CONNER
ciaI security would be undermined.
To underwriters the risk is a small one,
but 10 individuals it is one of great magnl-
Jude. IF the former find their rates too low
TO cover this risk they should raise them, but
the principle should be established, and es-
tablished without delay. To effect this il
seems desirable that there should be public
meeting of ship owners, and that some gene
raj action should be had on the subject, that
correct understanding OF the same may be
arrived nj. and an effort made TO have poll
cies ofinsurance so framed, mat those inter-
ested in navigation will be protected from
losses occurring by collislon.-Bos. DAILY
ADD. 'H