Document: 345 U.S. 427 73 S.Ct. 739 97 L.Ed. 1125 CALMAR S.S. CORP.v.SCOTT et al. No. 303. Argued Jan. 15, 1953. Decided April 27, Rehearing Denied June 1, See 971, 1110. Mr. Edwin S. Murphy, New York City, for petitioner. Hubert H. Margolies, Washington, D.C., United States, as amicus curiae by special leave of court. Russell T. Mount, respondents. Justice FRANKFURTER delivered the opinion Court. 1 This is a suit in admiralty against British underwriters on war-risk policy issued to cover Calmar Corporation's Portmar voyage, winter 1941—1942, from States port or ports Philippine Islands and return an Atlantic Pacific States. After voyage had commenced Australia was duly substituted outbound destination. The under charter suit, based damage inflicted enemy aircraft, tried together with libel claiming recovery same well additional hire. Steamship Co. v. U.S., 446, 733. District Court held liable constructive total loss vessel. 103 F.Supp. 243. Appeals reversed. 2 Cir., 197 F.2d 795. We granted certiorari, 344 853, 92, because wide use, so advised, clauses this makes their construction, necessary issue here, matter more than individual concern. Pursuant agreement between Corporation left San Francisco Manila November 28, 1941. She carried high-octane gasoline, ammunition other military supplies equipment. some 600 miles southeast Hawaiian December 7, when Pearl Harbor attacked. Her master at that time put her southerly course avoid combat area. On 11, naval routing orders were received radio Portmar. From day until she damaged abandoned, little over two months later, every movement obedience competent Australian authorities. Portmar, which flew American flag, subject these orders. 3 30, arrived Sydney, Australia.1 Without being permitted discharge cargo, dispatched up coast Brisbane. There cargo unloaded sorted, part it back her, sent almost half-way around island Port Darwin. been Brisbane week January 9, 1942. Darwin 19th lay anchor till 31st, waiting dock cargo. then did, part. Still carrying thousand drums original load February 4 relatively short trip across Joseph Bonaparte Gulf Wyndham, where 8th. returned empty 12th. took aboard troops equipment armament joined exceedingly perilous expedition Koepang, Island Timor, 500-odd northwest ran into heavy air attacks turned back. 18th February, again, awaiting turn personnel taken on. While thus morning 19th, underwent bombing strafing Japanese airplanes sustained forced beach caused him abandon her. Article 2.17 sailed provided owners might obtain insurance, be paid Before commencement out now question hull machinery valued $860,000. insured 'only risks war, strikes, riots civil commotions.' It assembled—that seems appropriate word—by superimposing age-old Lloyd's form layer upon warranties riders. Warranties free obligations imposed riders, subsequent riders reimpose avoided. 5 'Touching Adventures Perils we Assurers are contented bear do take us Voyage,' basic states, 'they are, Seas, Men-of-War * Enemies Takings Sea, Arrests, Restraints Detainments all Kings, Princes People *.' 'warranted capture, seizure, arrest, restraint detainment, consequences thereof any taking Vessel, requisition otherwise also hostilities warlike operations warranty known capture seizure warranty. superseded rider, provides: 6 'It agreed insurance covers only those would covered attached absence C. & but excluded 7 'This subject, however, following clauses:— 8 'The Clause shall construed including piracy, revolution, rebellion insurrection strife arising therefrom, floating and/or stationary mines torpedoes whether derelict not aircraft enforcement sanctions members League Nations excluding arrest customs quarantine regulations, similar arrests, restraints detainments actual impending sanctions.' 9 A further warranty, carves specific exception rider. holds 10 'free claims Capture, Seizure, Arrest, Restraint, Detainment, Requisition, Nationalization Condemnation authority government Great Britain its dominions allies, forces acting cooperation control them them.' 11 But saving clause, immediately, provides 12 'unless Vessel condemned exclude losses gunfire, torpedoes, bombs, implements stranding, sinking, burning collision, such marine (in hereto attached) warranted Seizure Detention.' Construing conglomerate provisions requires skill unlike called decipherment obscure palimpsest texts. judicial sigh recently uttered seat evokes sympathetic echo. 'Freight entered old deletions additions adapt intended contract (has) invariably given rise difficulties, present case (is) no exception.' Sellers Maritime Gibbon, Law Report, March 16, 1953, Times, 17, p. 11.2 One envies merely perceptiveness Lord Mansfield matters commercial law his genial means informing himself. cannot resort elastic procedure sought enlightenment dinners 'knowing considerable merchants,'3 nor have Elder Brethren Trinity House help us. To sure benefit views most experienced judges. Considering scanty contact has days maritime law, pay especial deference weighty judgment before since us, abdicate duty decide must end exercise our own however unsure be. 13 Assuming force attacked, there doubt whatever adventures perils clause alone. Cf. Standard Oil Jersey 267 76, 45 211, 69 519. hand, would, course, hold free. understand rider provide follows: Risks risks, remain covered. These include, language 'Restraints People,' or, 'restraint otherwise.'4 turn, again very likely liability case. one 'otherwise policy' within terms elsewhere it, is, Since 'condemned' 'implements war,' reinstates, case, coverage avoided still assuming, loss.5 14 contend phrase 'losses refers if they Allied detainment. say, followed deviation which, occurred pursuant orders, excusable terminated coverage. context precludes sophistical reading. plainly intended, proviso restricting therefore takes in, make certain doubly whole event enlarged.6 Moreover, sense covered' press quite devoid meaning. uselessly preserve securely anyway, despite presence 15 second argument concerning clause. They contend, consistently earlier argument, meant save occur while vessel restraints, limited number, others. underwriters, trial, offered prove much expert witness. No need said vary mean what meant7 face mean—would reform contract, requirements equitable doctrine reformation met 16 read insuring though consequence ally. So, reasoning substantially along lines, did Court, proceeded liable. assumed 'labyrinth verbiage, lurks made, understood agree that, although ship princes,' should 'the longer occurred, having come it.' page 796. ended, court said, dominion exercised authorities complete, probably continue indefinitely. policy, written could outlast would. Precisely frustration latter, releases underwriter liability. 17 facts deduced detainment prolonged indefinitely these. When reached working command Pacific, threatened invasion. shipping dire, use made herself shows. Indeed, after beached, salved patched hastily. eventually requisitioned title used finally destroyed. An colonel charge transportation testified trial serious shortage shipping, he continued throughout year late 19, Darwin, learned agent Commission chrome ore expected Philadelphia April. not, place dearth time, nothing record show spot last word future oceangoing vessel; were, strain credulity. Two points noted. First, Army damaged, condition ocean voyages, readily condition. And formally her—at first time. Second, testimony indicating vessels detained early 1942 through year. held. witness—the charge—spoke '(s)ome 21 small Dutch vessels.' 18 In point fixed Brisbane, during period here. Part Portmar's sorting, was, seen, there, can hardly maintained vessel's trips parts Sydney constituted departure excusable. For specified single destination, 'port ports' back, 'via order.'8 That so, find ended theory requisitioning became complete hence intention cause formed manifested. maintained, be, explicit decision, objectively provable, allow ever authorities, showing charterer discontinuing voyage. evidence, change releasing shown overtly employed manner inconsistent purpose route Compare Thellusson Ferguson, Doug. 360, Tasker Cunninghame, Bligh 87, Woolridge Boydell, 16; see Arnould, Marine Insurance (13th ed., Chorley 1950) §§ 381, 385. Consequently, no, started Koepang expedition, just before, conceded equally Rickards Forrestal Land, Timber Railways (1942) A.C. 50, 80. 19 undoubtedly venture insurance.9 prepared assume, decide, terminated, grounds abandonment war completely subsequently attributable causes, cf., e.g., 340 54, 71 135, 95 68, recovery. assume circumstances inferred basis situation, retained requisition, over. here virtue insure requisition. insured, words, interruption necessarily throw chances completing planned. Circumstances may termination risks. other, both implied different will undertaken. light express things policies. 20 If, owner who bought resulting entirely stand footing respect sovereign's retain indefinitely, substantial respect. little, anything, other. inferences permanence, strong surely permissible friendly sovereign uses. hard imagine situation enough lead commander field himself vessel, sufficiently presumptively indefinite, least uncertain, duration mind. Thus difference containing without like narrows down, holding Appeals, this: class nature duration, common example inspection. This, exactly result flow construction placed underwriters' witness,10 contrary correct one. As normally recourse either owner, type second; theory, another; expressly fact expectation, him, effectively obtained it. significant risk purchased separately, above ordinary great expense, rendered nugatory. contain limitations insure. consequently, recognizing '(i)ndeed, broad coverage!', felt constrained extend nature, past definitely frustrated. thus, effect, changes referring, voluntary only. Co., support position Court.11 persuasive authority, '(t)here reasons keeping harmony laws England, business Queen Ins. Globe Rutgers Fire 263 487, 493, 44 175, 176, 68 402. required accept ground rested. contended anything done officer official scene explicit—and provable—that even thought postpone unreasonably. Such decision prompt attention owners, whereas absence, informed guess fate appreciable safely predictable protection does detainments, unambiguous, provable 22 number subsidiary questions decided favor important raised contention never validly abandoned such. view disposition found unnecessary consider questions. related major remit Appeals. 23 vacated remanded proceedings opinion. 24 ordered. 25 Judgment directions. 26 MINTON dissents stated Circuit Judge Learned Hand, 27 DOUGLAS, whom CHIEF JUSTICE concurs, dissenting. 28 I, voted grant certiorari dismiss improvidently granted. principle requiring restatement clarification,1 involved. later point. not. speaking unanimously was. turns weighing many factors conditions background practice custom nowhere near familiar judges below. me improvident reweigh fragments evidence Augustus N. Harrie B. Chase, JJ., weighed, 795, 799—801, revise minds totality Yet escape conclusion frustrated 12, concedes, emptied loaded troops, equipment, 'an Darwin.' says: 29 her.' 30 Certainly 12th purposes venture, commercially speaking, ended. engaged enterprise far beyond contemplated parties. Not reach diverted set Manila. due negligence master, adventure sturdy insistent efforts keep touch owners. simply security regulations proper difficulties communication. news, chose act providing: 'Held breach date sailing notice Insurers Assured managers premium required.' communicated destination underwriters. latter letter dated 6, retroactive. required. truth (the) collection rules ancient annexed dates sixteenth century, document Sir Frederick Pollock characterized, justifiable asperity, 'clumsy, imperfect, obscure' *. 'Innumerable devised supplement form. Unhappily tradition cases Oddly enough, infected Legislature microbe inaccuracy. 1746 Act re-insurance illegal, except assurer insolvent, become bankrupt, die.' inconceivable insolvent desire re-insure, obviously evil aimed double assured. 'Re-insurance,' meaning, draftsman wrong order maintain obscurity.' MacKinnon, L.J., Rickards, (1941) K.B. 225, 246—247. Lewis Rucker, Burr. 1167, 1168. 'Lord converted occasional regular institution, trained corps jurors permanent liaison commerce. He won confidence social, professional, condescension, 'not conversing freely court, inviting dine him." Fifoot, 105, quoting Campbell, Lives Chief Justices 407. slight ambiguity. 'only' paragraph indicate sets outer limit itself reinstate urge reading, think reasonably so. Following paragraph, insures specifically mentioned excludes defainments connected 'actual hostilities.' If why referred 'additional' one? What singling exclusively clearly clause? Why covering commotions,' comprehensively itself? Finally, construing nonoperative final clause—that full force—is automatically complied once established policy.' warranties, assembled, constitute often independently developed. explain overlapping extreme caution making clauses. often—as case—written separately losses, collision example, hazards navigation. n. 5, supra. witness, William D. Winters, chairman board leading company manager, years, Syndicate, former president Institute Underwriters, 'During Allies contraband them. Government captured. (G)oing ports, (was) dangerous operation settled, didn't doing job. So constructed go policies willing, notwithstanding captured, nevertheless, entering blown mine went ashore refuse claim happening. assured something captured of, point, condemning boat say condemned, liable, finding boat, perhaps, ahead care unusual situation. always framework particular incident words general, I heard ruling admissibility, ambiguous. ruled Winters' inadmissible. sure, going instead discharging exposing greater risk. returning rather either. potential writing another Nor complain hugged coast, increasing and, sense, safety, justifiably south deviation, worth noting precisely inescapable excusable, might, more, release obligations. true occasioned peril against. Robinson Johns., N.Y., 89, Scott Thompson, Bos. Pul. (N.R.) 181; supra, § 435. cf. Aktiebolaget Malareprovinsernas Bank Merchant 241 N.Y. 197, 149 N.E. 830. unless marked one, end. Lords dealt detainments. Upon declaration Germany September 1939, masters three neutral then, German Government, subjects, run blockade try ports. voyages for. port. intercepted scuttled capture. princes—i.e., binding masters—did relieve attempt distinguish grounds. pass validity distinction. dispose appeared now: 'Warranted kings, princes, peoples.' urged whenever frustrates relieved restraint. simple answer 'based voyage;' Of lost, severely applies cases, therefore, effect loss, indeed, authoritatively told achieve sweeping result. observations Viscount Maugham. A.C., 72—73, Porter, id., 106, K.B., 252. usurpation function commonly Federal Employers' Liability Act. Wilkerson McCarthy, 336 53, 413, 93 497.

Category: 7