Fanny ( 1812 privateer ) Fanny was an armed merchantman that sailed between Liverpool and South America . Her master was James Laughton , the father of Sir John Knox Laughton . On 5 December 1812 , Laughton was granted a Letter of Marque for the ship . On 19 April 1814 , the American privateer schooner " General Armstrong " captured her , though shortly thereafter recaptured her . The insurance and marine salvage issues involved gave rise to three notable court cases . Voyage to South America . " Fanny " sailed from Falmouth 26 August 1813 to Rio de Janeiro in convoy with about 30 others and a Royal Navy escort . For the return voyage , Laughton sought permission from the station admiral to return home without convoy . Laughton hired thirty additional men and took on board some additional arms . The station admiral thought " Fanny " was competent to defend herself and permitted the solo voyage . On 8 March 1814 " Fanny " left Maranham for Liverpool . Battle with " General Armstrong " . At about midday on 18 April 1814 , " Fanny " was near the Irish coast when the American privateer schooner " General Armstrong " , captain " Guy R . Champlin " , from New York sighted her . Due to squally weather , the " General Armstrong " did not immediately engage , but shadowed " Fanny " until early the following day , when the " General Armstrong " closed to pistol shot range and opened fire . The faster and better armed American schooner inflicted significant damage on " Fanny " , their French long 42 - pounders being the most devastating . The musket fire from the schooner was so severe that it was impossible to maintain station on the quarter deck . " Fanny " returned fire and caused some damage to the American . However after about an hour of close combat , never out of pistol shot , Laughton struck her colours . One of the severely injured was one of " Fanny " s co - owners , John Begg , who later recovered from his injuries and continued his trade with South America . Captain Laughton wrote to his employer : She had scarcely a shroud left standing , nor one brace , the sails completely reduced , several gun carriages disabled , not a breeching left whole , one shot between wind and water , several others through different parts of her hull , the maintopsail and topgallant yards shot through , not a running rope but what was cut to pieces , a complete wreck on the quarter deck , the second mate , my brother , killed by my side , and six others wounded , five severely , one slightly . " " Fanny " s crew transferred to the " General Armstrong " and she put a prize crew on " Fanny " . Later that day the American schooner encountered the " Principe " , captain " da Silva " , a Portuguese vessel en route from Maranham to Liverpool . 130 prisoners including Laughton and his crew were transferred to the " Principe " and arrived in Hoylake , England , on 23 April , when the " Principe " ran on shore . Subsequent events . The captain sent a letter to James Brotherston describing the loss of " Fanny " . On 25 April , James Brotherston filed a claim for total loss with his insurers abandoning all interest in the ship to the insurers . " Fanny " was insured for £7 , 000 and the freight was insured on 22 April for £4 , 000 " Fanny " was recaptured by " Sceptre " on 12 May and returned , arriving off Skelling Rock on the west coast of Ireland with the " Sceptre " on 8 June . " Fanny " was attacked by a Russian Man - of - war in The Downs on 18 June , losing a mast and other damage , arrived in Gravesend on 24 June . " Fanny " finally arrived in Liverpool on 26 September and the cargo of cotton , coffee and tallow was delivered to the consignee . Salvage amounts : Following the discharge of cargo , the ship was sold and the underwriters recovered about £2310 . Court cases . These subsequent events gave rise to three civil claims : Davidson v . Case . " Fanny " and the freight ( charges ) were insured separately . An abandonment to the underwriter on the ship transfers the freight subsequently earned incident to the ship . Therefore where ship and freight were insured by separate sets of underwriters and the ship being a general ship , was captured and ship and freight were abandoned to the respective underwriters , who paid each a total loss ; and the ship being recaptured ; performed her voyage and earned freight ; which was received from the consignee for the use of those who were legally entitled thereto . It was held that the underwriter on ship was entitled to recover the freight charges . Brotherston and Another v . Barber . Brotherston and Another had insured " Fanny " ' s cargo against loss . Barber was the insurer . Brotherston claimed that he was due the full sum insured as a total loss . At the time of the claim this was the case and he had abandoned all rights to the vessel . The court found that the plaintiffs were only due a partial loss . The " Fanny " [ 1 Dods 443 ] . The Portuguese owners of the cargo contested " Sceptre " s claim for marine salvage . They contended that their property was neutral in this conflict and would not have been declared as a prize in an American prize court . The crown contended that lading the goods on an armed merchant vessel of one of the conflicting states surrendered this neutrality to that state . The courts found in favour of " Sceptre " , agreeing that the cargo owner had forfeited neutrality by lading his goods on an armed merchant vessel from one of the warring states . This case is often cited in text books of international law .