Document: 348 U.S. 310 75 S.Ct. 368 99 L.Ed. 337 WILBURN BOAT COMPANY, et al., Petitioners,v.FIREMAN'S FUND INSURANCE COMPANY. No. 7. Argued Oct. 14 and 15, 1954. Decided Feb. 28, 1955. Rehearing Denied April 11, See 349 907, 575. Messrs. Theodore G. Schirmeyer, Houston, Tex., Mark Martin, Dallas, for petitioners. Mr. Edward B. Hayes, Chicago, Ill., respondent. Justice BLACK delivered the opinion of Court. 1 This case raises questions concerning power States to regulate terms conditions marine insurance contracts. 2 Glenn, Frank Henry Wilburn, merchants in Denison, Texas, bought a small houseboat use commercial carriage passengers on nearby Lake Texoma, an artificial inland lake between Texas Oklahoma. The respondent Firemen's Fund Insurance Company insured boat against loss from fire other perils. While moored was destroyed by fire. Following respondent's refusal pay loss, this suit brought state court Wilburns their wholly owned corporation, Wilburn Boat which boat's legal title had been transferred. After removal United District Court because diversity, answered, admitting issuance policy, payment premiums destruction boat. Liability denied, however, alleged breaches printed policy or 'warranties,' providing that, without written consent company, could not be sold, transferred, assigned, pledged, hired chartered, must used solely private pleasure purposes.1 submitted stipulated facts supplemented oral testimony. Contending that evidence showed contract have made petitioners urged all were controlled law. If law does govern, provision pledging may invalid.2 Furthermore, no breach provisions is defense any under unless contributes loss.3 Without finding whether refused give State's effect at all, holding since maritime contract, federal admiralty law—not law—governed.4 went hold there established rule requires literal fulfillment every warranty so bars recovery, even though would happened carried out letter. Finding breached transfer, pledge boat,5 entered judgment company. Approving Court's actions respects, Appeals affirmed, saying 'It settled doctrine 'derived from', 'governed by,' 'part of' general world.' 201 F.2d 833, 837. Importance involved prompted us grant certiorari. 347 950, 74 674, 98 1097.6 3 Since here sued Admiralty Clause Constitution brings it within jurisdiction. New England Mutual Marine Co. v. Dunham, 11 Wall. 1, 20 90. But follow, as courts below seemed think, term can only some federally defined rule. In field contracts7 torts,8 National Government has left much regulatory States. As later discussed more detail, power, exercised with acquiescence, always particularly broad relation companies contracts they make. 4 Congress taken over regulation dealt warranties all; hence possible question conflict statute. answer presented, absence controlling Acts fashioned large part existing rules govern admiralty. And override such judicial validly than Congress. See, e.g., Garrett Moore-McCormack Co., 317 239, 63 246, 87 239. Consequently crucial narrow down these: (1) Is judicially governing these warranties? (2) not, should we fashion one? 5 decision relied support its requiring strict Imperial Fire Coos County, 151 452, 379, 38 231. There, warranty, company relieved liability court-house fire, said immaterial contributed loss. remotely nor reliance Writing own 'general law,' custom diversity cases prior Erie R. Tompkins, 304 64, 58 817, 82 1188, County simply followed commonly applied types insurance.9 A mere cursory examination cases, federal, will disclose through years common-law doctrine, when accepted, treated but applicable many including insurance.10 There are very few considered. two circuits appear thought law.11 On contrary, circuit decisions, ones those one admiralty, seem indicate applying rule12 decided uniform practice during era Swift Tyson, 16 Pet. 10 865.13 did say 'must strictly literally performed.' Hazard's Administrator Ins. 8 557, 580, 1043. slightest indication statement referred fact expressly Massachusetts decide another case. Whatever origin 'literal performance' be,14 think plain body country. Therefore, scope validity consequences breaching them determined law15 now prepared rules. 6 whole legislative history warns creation warranties. control primarily function came into being. 1869, held Paul Virginia, 168, 19 357, possessed business strongly indicated power. Three later, first authoritatively supra, exercise 'jurisdiction' 1894, after Dunham holding, Virginia same insurance. Hooper People State California, 155 648, 15 207, 39 297. Later, reaffirmed Nutting Commonwealth Massachusetts, 183 553, 22 238, 46 324. constitutional carrying implications exclusive remained until 1944 South eastern Underwriters Ass'n, 322 533, 64 1162, 88 1440. Thus clear least contracts, like others, subject control.16 vast amount litigation throughout our also bears witness recently legislatures extent insurance.17 aptly illustrated 1893 generally worded statute relating equally companies. Durkee India 159 Mass. 514, 34 N.E. 1133. 7 Not courts, Congress, companies, acted assumption Merchant Act 1920, recognized operating laws.18 Then, following three-year study insurance, 1922 passed regulating Columbia.19 enactment Columbia Model Act, backing hailed model hoped copy. Because bill offered 'policy' forms conditions,' criticized national association shipowners approved removed.20 Hearings make then, continue be, regulated serve pattern follow widespread doubt created California Federal enter all.21 Again 1935 congressional hearings connection Limitation Act. 49 Stat. 1479, U.S.C. §§ 181—196, U.S.C.A. 181—196. representatives opposed authority, arguing better retain function.22 Finally, 1945, before consideration bills specifically designed authorize At beginning extensive Committee's attention directed deciding kinds businesses.23 again Committee reminded together previously well types. Passage Southeastern despite embodied line interstate transactions. case, opinions emphasized historical free measure shortly thereafter, known McCarran assure continue. Accordingly, contains declaration continued public interest, silence construed impose barrier States.24 reveal complexities difficulties attempt unify nationwide basis, Courts find task far difficult. passing laws limited factual situation particular controversy lawsuits. replace presently functioning regulations comprehensive Courts, do piece-meal, case-by-case basis. Such creeping approach result leaving largely unregulated come.25 9 provisions, once faced difficulty determining what breaches. We adopt old forfeiting right recovery performance warranties, harsh rule.26 Most States, deeming breeder wrong injustice, abandoned part. open kind new substituted fair both holders. Out abundant experience business, adopted another.27 Some example denied forfeit policies insured's bad faith fraud. Other inadequate stamp forfeiture practices deemed evil. result, pointed out, statutes 'go root evil' forbid actually bring about against. Northwestern Life Riggs, 203 243, 253—254, 27 126, 128—129, 51 168. number choice involves varied considerations obviously peculiarly suited decline undertake task. Halcyon Lines Haenn Ship Corp., 342 282, 285, 72 277, 279, 96 318. Under present system diverse regulations, Union, become great enterprises Nation. exceedingly cautious disturbing system, where undoubted.28 We, leave been—with States.29 judgments reversed cause remanded trial appropriate 12 It ordered. 13 Judgments directions. FRANKFURTER, concurring result. concerns covering yacht, inappropriately named Wanderer, plying waters coverage restricted Wanderer's trip 'solely purposes.'* Wanderer while lying idle discovered certain ignored petitioner. petitioner probably unable recover policy. law, might excuse although means clear. Our problem situation—involving basis litigation—calls country similar matters affecting affairs excluded indulging variant policies. E.g., Chelentis Luckenbach S.S. 247 372, 501, 62 1171, Lottawanna, 21 558, 654. Equally, predominantly range significance need fashioned. Madruga Superior Court, 346 556, 298, 290; C. J. Hendry Moore, 318 133, 499, 663; Hamilton, 207 398, 28 52 264. Therefore question, decided, demands uniformity relevant require yacht Texoma recreation 'confined,' arrival, Tahoe Champlain. whereby warranted 'that vessel confined Texoma' conveys emphasis situation—the essentially localized incidence transaction route reaching circumscribed radius move. reasonable conclude interests concerned shipping international aspects substantially unconcerned situations. I join compass. 17 Unfortunately, reasons appreciate, goes beyond needs it. Unless misconceive opinion, language invoked decisively different degree come seems equal force ocean-going vessels trade, coastal, intercoastal river commerce. assumed Queen Mary, world cruise, touch York City, Orleans Galveston, Lloyds voyage subjected varying York, Louisiana Texas? assumption, am confident, prevail necessary. often related success manifestations endeavor demand application eliminate vagaries keep harmony powers. America Globe & Rutgers 263 487, 493, 44 175, 176, 68 402; Calmar Steamship Corp. Scott ,345 427, 442—443, 73 739, 747, 97 1125. cannot suddenly jettison past Article III renounce requirements uniformity, except insofar enacted them, 18 recall preponderant comes Judicial enforcement regarding is, my brother REED cogently shows, deeply rooted history. What reason abruptly turning over, pending action crazy-quilt long courts? true interests, inflexible preclude balancing competing claims state, interests. process unlike State, action, commerce affected. rejecting abdication responsibility uniformities complete surrender required embrace absolute, absorption entire exclusion necessary assert if cognizable admiralty—whether craft pleasure, touched five states, nations never confines lake. deceptive lure certainty symmetry permitted canceal admiralty's expansion 'the ebb flow tides' response inclusive mechanical uniformity. distribution authority local developed hundred rulings absolutes either abstension extension. able dissenters, hope dicta found situations called forth, applicable, adjudication. REED, whom BURTON joins, dissenting. states one?' By means, enforced relieves insurer shown 23 concludes decision. acknowledges jurisdiction Constitution. recognizes 'to rules' rests Government—in courts. However, determines formulation applies conclusion 24 disagree conclusions. laws, common England. matter American tend Scott, 345 Before Revolution, compliance England.1 That persists. cited says presupposition consistently reasoning earliest days.2 specific.3 No holds contrary. 25 inclined consider modifying contribute task,4 unnecessary me go farther amelioration his warranty.5 26 phase which, says, 'leaves States.' dominant issue here, strikes deep principle unduly burdening presented petition certiorari argued petitioner's brief merits. One stands unquestioned. enforce substantive rights according law.6 excellent discussion Judge Magruder Doucette Vincent, Cir., 194 834, 841 seq. insurer's upon broken clearly relies 357; 297; 324, 'States insurance.' Those approve agents take licenses conform various preliminary doing business.7 inaction, organization, taxing licensing casualty Columbia, existence 1922, relevancy given Nor legislate change fundamentally law.8 Maryland Casualty Cushing, 409, 413, 608, 610, 306. governs lies nature 29 Constitution, Art. III, § provides 'The Power shall extend * Cases Jurisdiction *.' First district 'shall original cognizance civil causes saving suitors, remedy, competent *.'9 manner asserted litigation. needed Republic bordered length Atlantic littoral navigable furnished best avenue transportation. 30 Although trade granted Necessary Proper adequate enable declare prevailing Nation.10 Commerce aids affected, 'navigable waters.'11 Congressional rest where, constitutionally delegated exists, established. Moses Taylor, 411, 429, 397. remedy preserved savings clause Judiciary 1789, 'is remedy.' Id., page 431. meaning quoted becomes plainer read Taylor unconstitutional. statute, authorized 'proceeding vessel,' rem proceeding pages 412, personam. Consequently, resident court, he pursuing remedy. therefore, outside minth section 1789.12 31 hand, sell lien Knapp, Stout McCaffrey, 177 638, 824, 921, owner, personam, equity foreclosure possessory lien. '(T)he chosen plaintiff detention raft towage charges.' 644, 827. state-approved procedure accord reservation admiralty.13 Thus, suitor's (Supp. V, 1952) 1333, furnish time adoption rights, remedies statute; whatever rem.14 32 provide remedies, changing enforceable states' arising incidents definition. vary course navigation changes. exists circumstances, see Just Chambers, 312 383, 388, 61 687, 691, 85 903, and, majority minority Jensen 244 205, 37 524, 1086, each situation.15 principles assertion sphere are, complementary harming desirable uniformity.16 legislation burden variable destroy uniformity.17 33 exclusive, somewhat analogous interfering direction, bear heavy burdened uniformity.18 thing allow add create activity. quite relinquish making activity violence premise constructed.19 markings, lights, signals, barred operation. just dealing boats plough waters. moves along coasts rivers. lines run channel across usually covers wherever go. anywhere, seaworthiness presents operation boats. Kelly Washington, 302 87, 94, 3. For issued extra-state interpreted burdens operations unduly. Shipmasters know how handle preserve Insurers risks assuming fix premiums. govern—that issued, accident, forum? unreasonable interference 35 refuses done 'piecemeal basis.' prefer await code. interpretation equipped handle. desirable; establish binding land. certainly defer legislature enact code, State. To destroys essential 36 My understanding issues deduced joining concurrence MR. JUSTICE FRANKFURTER. addition lake, covered 'cruise Greenville, Mississippi, via Mississippi Red Rivers Texas' then navigated itself water lead favor changed relatively involved, few, ultimate destination affects longest cruising capacity Wanderer. 264, permits high seas. event local, general.20 When intrudes imposed invalid occurs incident happens mighty river. affirm. Also Agreed void Policy interest thereby transferred previous writing assurer.' 'Warranted assured purposes currency chartered permission endorsement hereon.' Vernon's Rev.Civ.Stat.1936, 4890: 'Any property encumbered character encumbrance render effect. Any placed null void.' V.A.T.S., Code, art. 5.37. 4930: 'No violation condition therefor, personal property, constitute thereon, property.' 6.14. said: 'After above matter, therefore governed notice constantly purposes. waived estopped plead Questions contentions remain had. Texas. us, express aspect Cf. Watson Employers Assur. 66, 166. Likewise Wilburns' transactions constituted breaches, correct holdings 654; 290. cf. Union Fish Erickson, 248 308, 112, 261. 903; Pope Talbot Hawn, 406, 202, 143; Butler Boston Savannah 130 527, 557 612, 619, 1017. Phoenix Raddin, 120 183, 189—190, 500, 502, 644. collected A.L.R. 1074; L.R.A.1918B, 429; L.R.A.,N.S., 563; 981; Am.Jur., Insurance, 529 Aetna Houston Oil Transport 1931, 121; Home Ciconett, 1950, 179 892. Gelb Automobile 168 774; Levine 139 217; Shamrock Towing 57. Gypsum North America, D.C., F.Supp. 767. Goulder, Evolution Law Am. Lawyer 314. Canton Office, Ltd. Independent Transp. 217 F. 213, L.R.A.1915C, 408; Whealton Packing 185 108, Robinson 3; Fidelity-Phenix Chicago Title Trust 573. Vance, History Development Warranty Law, Yale L.J. 523; Patterson, Warranties Col.L.Rev. 595. cited. subsequent Robertson 328 440, 66 1160, 90 1366; Prudential Benjamin, 408, 1142, 1342. 1123; 216; 42 113; A.L.R.1314; 893; 43 222; L.R.A.1917C, 730; L.R.A.1916F, 1171; 742; Am.St.Rep. 854; 227—237, 758—785, 1032 1051, 1198—1224; note 10, supra. 41 1000, 885(a)(2), 885(a)(2). 401, D.C.Code 1951, 35—1101 Senate S. 210, 67th Cong., 1st Sess. 111, 113. 20—30. S.Rep. 228, Sess.; H.R.Rep. 582, 2d House Fisheries H.R. 4550, 74th 124 Joint Hearing Subcommittees Committees 1362, 3269, 3270, 78th Attention Cravens, 178 389, 962, 1116, bar contrary compel inclusion welfare. 59 33, 1011, 1011. multitudinous experience, see, McKinney's N.Y.Consol.Laws, c. Law; La.Stat.Ann.Rev.Stat.1950, 22; 78, 1.01 criticisms 14, Couch, Cyclopedia 819 seq.; Appleman, Practice, 7251 instances relaxed 2695; id., 7354. war risk 773, 1281—1294, 1281—1294. governmental agencies insuring interest. 992, 868, 868; 969, 1271—1279, 1271—1279; 55 50 U.S.C.App. 1273, U.S.C.A.Appendix, 1273. faintly contended forbids acquiesces consents. contention lacking merit discussed. purchased Mississippi. port Greenville basin, Dennison, overland 'skid' around dam onto contemplated 'locked Lake,' lacks permitting passage Bean Stupart, Doug. 11; DeHahn Hartley, T.R. 343 (each reported Eng.Rep., full reprint, 1130, respectively); Arnould (14th ed.) 20. Hodgson Alexandria, Cranch 100, 109, 48: being general, parties 'for person persons appertain,' containing neutrality, belligerent it.' Livingston 274, 278, 222: words; 'warranted, assured, proof only.' admitted strictest sense term; contended, Baruro, Spanish subject, cargo, falsifies warranty. 'Whether Baruro considered having intricacy, decided; way other, affect warranty; because, understood warrant cargo neutral, neutral.' Hazard Mar. 570, 1043; 432—436, 742—744, Ogden Ash, Dall. 162, (Reprint 174), (Common Pleas Philadelphia County); Martin Delaware C.C.D.Pa., Fed.Cas. p. 894, 9,161; Snyder D.C.S.D.N.Y., 133 848; L.R.A., N.S., Office 57, 60; 892; Top Brewing Mazzotti, 202 481; Compare unknown Texoma. pledged assurers, further indorsement policy.' 834. All breached. reasonably issuing Watts Camors, 115 353, 91, 406; 249, 239; 'Even Hawn seeking state-created right, controlling. sometimes supplement policies, deprive substantial acts interpretative decisions These frequently declared adhere them.' Talbot, Inc. 409—410, 561, 301, 413—419, 423 seq., 610—613, 615, Armar (1954), Lloyd's List Rep. 95, 101 (N.Y.Sup.Ct.). Benedict, Admiralty, 55, n. 77. 1133, upon. 1012, 1012. 9, intentional revision 1948, reads: '(1) jurisdiction, suitors otherwise entitled.' Reviser's states: 'saving suitors' 41(3) 371(3) (of U.S.C., 1940 substituting words 'any entitled' simpler expressive intent conformity Rules Civil Procedure abolishing distinction equity.' Propeller Genesee Chief Fitzhugh, How. 443, 459—460, 1058; includes jury; re Garnett, 141 12, 840, 842, 631; Southern Pacific Jensen, 215, 528, 1086; Panama Johnson, 264 375, 385, 391, 393, 748; Nogueira N.H. 281 128, 138, 303, 306, 754; 244, 250, O'Donnell Great Lakes Dredge Dock 36, 39, 488, 490, 596; Pennsylvania O'Rourke, 344 334, 337, 302, 304, 367. City Norwalk, 98, 105. Belfast, 624, 640, 266. efforts liens proceedings Robert W. Parsons, 191 17, 37, 8, 48 73, Glibe, 167 606, 616—618, 623—624, 930, 933—934, 936, 296. Brown wrote Court: invasions this: itself, monition If, personam individual defendant, auxiliary attachment thing, defendant jurisdiction.' 829. Rounds Cloverport Foundry Machine 237 596, 598, 966; 137, Cross Line Fruit 123 124, 276—277, 582: 'right remedy,' saved mentioned, include attempted changes (i.e., unconstitutional, 'invalid, modify displace features law'), employed redress injury involved. pais, court; conferred law; equity, 644 824 (827) 921; 966. Hine Trevor, 555, 451; Glide, concurrent attach incidents, sees fit. confer perform agreement arbitration, valid contained terms, performed there.' Steamboat Chase, 522, 530 369; Vasquez, 271 560 597, 70 1085. Cooley Board Wardens, 299, 316, 996; Standard Dredging Murphy, 319 309, 1067, 1068, 1416; Caldarola Eckert, 332 155, 158, 67 1569, 1570, 91 1968; 410, 418, 209, 143. Levinson Deupree, 914, 1319. 386 387, 393—394, cited; Western Fuel Garcia, 257 233, 242, 89, 90, 210; 381 503, cited: 106. (6th ed.), 53. Minnesota Rate (Simpson Shepard), 230 352, 399, 729, 57 1511. 392, 693, 14—15, 94. Arizona, 325 761, 769, 65 1515, 1520, 89 1915. standpoint 572, Uniformity Maritime Mich.L.Rev. 544, 556; Tompkins Uniform General Harv.L.Rev. 269.

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