The New York herald., 1871-01-18
IMPORTANT INSURANCE DECISION.
Case Of the Samuel I. Keys Lost In the Gulf Of
Mexico, with Arms for the Mexican Govern
ment-0ne Of Series Of Suits Against
Insurance Companies Decision
by Judge Mccunn.

| In 1867 General Sturm shipped to the govern
| ment OF Mexico on the Samuel T. Keys, q guam
| tity OF arms. The value OF the cargo was esti-
mated at S213,ooo, upon which insurances were
effected to the amount OF S16500o in various nsu-
rance companies In this city, The vessel was lost In
the Gulf of Mexico. Suits were instituted to re-
cover the nsurances Several OF these have already
been tried. The last In the the suit against
the Great western Insurance Company. This case
has been trial several days before Judge McCunn
OF the Superior Court. The Judge yesterday rem.
dered the following
DECISION IN THE CASE.
engaged uyinss case details Of which,
with ss .ss nsr require
been viglant in attention to its details than
been tried by some Of my prehren and they pursued f
the
recovery than in the other cases or this knew not but
has easd to my mind to say the least ncs Ss singular
sun condition Of aGaI. VIII not waran! me me
IN allowing the Jury 70 pass upon them The plaintiff alleges
engaged in the purchase Of arms and. his
loaded schooner io tons burden The mate tess
sss he for large number Of boxes and the steve
did the contents Of the boxes-naeed no one
he ss
for them II greenb.cks not checks that he paid him
s but sSd no q
where; indeed IT i clear that be i. Of no &C.
sas s1 or ass:
hs en hs " fs
the plaintiff says that excepting the moneys he
pna s PAID sAEs s 81
the goods being al paid for In Mexican bonds at sixty cents
Of N this extensive and out Of the
such quantities OF equipments and accoutremens
NOT A SINGLE aEsPEcTABLR FIRM
IN this city s shown to nave sen, single package Now
he did not ac4uan them that the valuation when he
was based on Of sixty. In his
book which be publishes be shows that these bonds
says freighed schooner twothirds OF large
sixty csDs this concealed the company Not
nss s has worth vet o that
goods all together that board Of this vessel
the IS ,Ss as
ARMS AND MUNITIONS OF WAR,
s eSass
s M s os the To ss to ys seEeo e
$s3c0o aud then ie OF voyage siysn
ing The trip experienced yet the schooners
started and she wen, apparently down from her own in
in ordinary seagoog weather. without any supervening
decay about ship thar she sank in conse
s Ssof sSs
s. c. R. 2O2) negotiating . contract OF Insurance the
,nsrer is 70 Be and the n
formed In respect to the subject TO be insured Hence in
inquire for himself. does not rel, on his resources
but reposcs exclusively on the intelligence communicated
ing this unequal position the law exacts OF the party
holding the position OF advantage the insured
the facts affecting the risK So 10 the contract Of
insurance ts characterized in legal language as q
to 1 n so that OF pens ns
duty bound to disclose whatever may be material
premium he consciously withhold any such material
The contract viated in its and
conceament. This only dictate morality
but in harmony with ali the analoges of phillips
contract tort the plaintiff is precluded from
recovery the moment appears his wrong negligence
Of the thing insured Is obviously essentially mate
ria as well TO the risk the indemnify to
be paid aud the insured knowingly exaggerate that
value, and the insurer rely upon such
excessive value in entering INTO the contract the former
overestlmates the OF the thing tempted to
relax those precautions for its protection which
son IN the lcas effective aspect for might be
cnred presumption Of law that he who desgnedy and
egregousy ovcestaates the value Of the which
insues does SO with sinister purpose The books
do not reckon generalization among the mrepre-
senalions which Jucto avoid policy Nor should
nal or unmportani honest avail TO deprive
she party OF all redress But when the
the case on trial. designed and not only INTENTIONAL but
ont OF all proportion beyond the the mar
that such generalization should be deemeda
CoNCLusivE PRESUMPTION FRAUD,
thai Notwithstanding such deliberate nagrant oyervau
atop the insured yet according
w9qd S se to enable hn' to realize an nodnsts IN.
obtais compensation In conformity 20 honesty
painr himself bsv M aypwsd that he I Snownglv causss
the goots 10 be Insured hgare enormously
s @ mas d0 n sa Gr % actual
o. justice can recognize and enforce. The nonsut