Legal Document

340 U.S. 54 71 Supreme Court Reporter 135 95 L.Ed. 68 STANDARD OIL CO. OF NEW JERSEYv.UNITED STATES (two cases). THE YMS—12. JOHN WORTHINGTON. Nos. 27, 28. Argued Oct. 13, 1950. Decided Nov. Mr. Edwin S. Murphy, New York City, for petitioner. Samuel D. Slade, Washington, D.C., respondent. Justice BLACK delivered the opinion of Court. 1 These are admiralty proceedings involving Government's liability on a policy war risk insurance by which it insured petitioner's steam tanker John Worthington against 'all consequences hostilities or warlike operations.'1 Stipulated facts show that December 16, 1942, there was collision between and YMS—12, one three United States Navy minesweepers clearing channel approaches to harbor.2 Both vessels were at fault in failing 'to comply with applicable rules' good seamanship 'under circumstances.' 2 In District conceded minesweeping is 'warlike operation' but urged evidence failed 'consequence' within meaning contract. Petitioner contended mere showing loss from moving warship established under as matter law. It argued this English rule should be followed American courts. The did not accept view rule. read both authorities conditioning underwriter's proof 'proximate,' 'predominate determining' cause loss. court held petitioner, finding fact burden had been met. 81 F.Supp. 183. Appeals reversed. Cir., 178 Federal Reporter, 2nd Series 488. recognized some language certain opinions possibly indicated relied would make underwriter liable Nevertheless, refused go far and, contrary Court, found phase minesweeper's operation caused collision.3 sought certiorari here without relying divergence below findings question causation. Its ground hold petitioner law cases allegedly required. We granted writ, 339 977, 70 1021, because asserted conflict point General company versus Link, 9 173 955. 3 asked only determine whether provision insuring * operations' covered resulting minesweeper. Of course, intention contracting parties control decision, so often case, readily ascertainable. Losses collisions prima facie perils sea standard marine policies.4 To take such out bring coverage of' operations, common sense dictates must causal relationship collision. Courts have long interpreting what meant use phrase consequences' policies.5 turn, existence non-existence connection peril has determined looking factual situation each case applying concept 'proximate cause.'6 Proximate field variously defined. said proximate referred 'cause nearest loss.'7 Again, courts properly stated 'does necessarily refer time But true maxim is, refers most nearly essentially connected its efficient cause.'8 4 foregoing, can erred mine-sweeping, operation, collision? As we record, susceptible inference mine-sweeping activity YMS—12 relation not. That say, reasonable triers considering all circumstances might differ predominately proximately usual navigational hazards (and therefore an ordinary risk) extraordinary stemming risk).9 Indeed, determination. Since consider fact, need no further than considered depending resolution questions. 5 nevertheless contends (1) bound decisions House Lords (2) these announced rule-of-thumb construction result cannot arguments. other emphasized desirability uniformity England interpretation enforcement contracts.10 Especially desirable where, here, particular form words employed originated England. does mean follow Lords' automatically. Actually our practice more accord respect doctrines maritime law.11 6 difficulties inherent rigid conformity obvious those familiar search state decisional Erie-Tompkins doctrine. very we, like Appeals, sure conclusion reach presented it. Some their indicate they operation;12 easily reconciled result.13 Lord Wright declared 'In many reconciliation impossible. What matters decision.'14 And even implying results law, spoken terms cause.15 Their recent decision construing before us states 'question law' technique carefully restricted holdings; Norman warned, 'The numerous cited limited bearing present issue. (T) hey will lead error if attempted extract them principle solve fact.'16 7 This moreover, contracts reference made considerations business practices.17 produced unfavorable reaction among country's underwriters revised clause involved avoid injurious effects decisions.18 policies also altered.19 8 method determining operations may fall short achieving perfect results. For predict certainty trier decide predominant neither could discover 'as law.' Long experience least proven adaptable useful cases. There reason believe application disappoint just expectations insurer insured. judgment affirmed. 10 Affirmed. 11 FRANKFURTER, joined JACKSON, dissenting. 12 Although Standard Oil Company Jersey, nothing case. views Ninth Circuit Insurance America On collided mine sweeper, engaged sweeping mines outside harbor. stipulated 'was contributed navigation SS. Ship consisting failures part rules prevention requirements undamaged, half damage sustained sweeper since ships fault. Standard, self-insurer Worthington, assumed risks except undertaken States, charterer vessel. undertaking insure 13 filed libel recover one-half sweeper. answered tanker, would, nature collision, reimburse any suit.2 dismissed upon theory. Second reversed, 488, certiorari, because, already noted, Circuits. 14 granting limitation petition brought fair implication contained following question: 'Is vessel merchant vessel, vessels, consequence vessel?' & N Dec. Immigration Nationality Decisions do think permissible limit assumption peculiar due incident operation. discussed length based. submission seems clearly adhere he prevailed where applied clear, ought concerned over difference regarding Appeals. clash involve facts, makes uncertainty fails problem fully. cause' best, elusive concept. acquires vivid when abstract discussion leads principle. 15 issue scope given operations,' important place historic setting. Phrases organisms related environment. furthers clarity explicitly set side group earlier arose different several Claims occasion Civil War charters later Government whereby 'war risk' vessels. When first called construe charter risk,' specifically noted dealing construed 'acts public enemy' 'casualties war.' Bogert Ct.Cl. 159, 163. restrictive definition reiterated Morgan 182, 189—190, affirmed Wall. 531, 20 738, became settled doctrine subsequent term. 16 concern, derived term draw evolved insurers. See Atkin Britain S.S. King, (1919) K.B. 670, 692—693. Yorkshire Dale Minister Transport, (1942) A.C. 691, 703, 714, Porter. natural looked illumination look another State aid statute adopted State. Provisions contract become art, content dependably arrived origin acquired. making appropriate imply subservience decisions. 17 Two problems arise clause: constitutes 'hostilities operations?' sweep consequences?' First question, great convoys blacked-out removed stipulation mines—beyond dispute A lose character carried negligently. 18 or, jargon cases, 'Proximate cause,' requirement policy, technical legal conception convenient tag law's response sense. shorthand saying nexus money claimed events giving rise fairly assumed. 'common-sense accommodation kaleidoscopic situations'. Gully National Bank, 299 109, 117, 57 96, 100, 70. 19 Unlike obligations flowing duties imposed people willy-nilly, voluntary voluntarily Therefore subtleties sophistries tort negligence covenants policy. thing impose own notions responsibility, quite engagements paid for. reflects practicalities commercial dealings. play unreal metaphysical game trying find single isolatable factor sole responsibility attributed bought. losses invariably resultant combination factors. cover partly confirmation understanding whose shipping—their contingencies covered. endeavor, inevitable treacheries language, shield basis too remote, tenuous, elements converged toward Looking contract, failure circumstances' relieve operations? words, contributory displace effective force bringing about loss? 21 occurred a.m. swept proceeding seaward her gear steamed. She starboard formation sweepers buoyed channel. Judge, who questioned counsel closely way on: 22 'Here, concededly, existed masters, break chain causation prevent being attributable two accompanying formation, streamed trailing paravanes, unusual unexpected obstacle navigation. YMS—105 guide ship stationed hundred yards beam third AMC—95, echelon right ship, position approximately mile astern midway From encounter until actual continued paravanes trailing; manoeuvres impeded. part, closed lanes affording possible escape ordinarily open her. 23 exist special conditions existing—conditions created sweeping.' 183, 191. 24 Whether reached erroneous proper clear. If viewed simply—according men commerce clear beclouding abstractions—one hardly same similar weaken force. Board Trade Hain Co., (1929) 534; Attorney-General Adelaide (1923) 292. 25 second contention; war-risk extend liability. argument insurer. contention finds support (The Warilda), (1926) 172. changes wording perfectly plain liability.3 26 DOUGLAS, 27 determination coverage. accidents prior made, seem reliable standards interpretation. 534, Attorney 292, dealt precise wholly faulty liable. Adherence British precedents early admonished. Queen Globe 263 487, 493, 44 175, 176, 402. foregoing me authentic none casting doubt holdings presents facts. quoted comes 'F.C. Clause' ('Free Capture Seizure') incorporated written manner: covers sea, generally contains eliminating named risks, operations.' excepted either adding rider original buying underwriter—here Government—who insures excluded Clause.' fully documents obligation rested. history development England, see Halsbury's Laws § 439 (2d ed., 1935); Ionides Universal Marine 1863, C.B.,N.S., 259, 273. Counsel described way: 'A streams behind device cable which, towed along distance water, designed cut surface, destroyed gunfire like.' present, never risk. approved) '"Proximate' means, latest time, predominate efficiency *.' (T)here process selection co-operating causes case.' event preceding pass—and myriad.' 190. then negligently conducted Cf. Mut. Sherwood, How. 351, 452; Phillips (5th ed. 1867) par. 1049. Cases collected, 1912 Defendant Ann.Cases 1038, 1040; Arnould, Average 827a (13th Chorley, 1950). 259; Rutgers Fire 491, 402; 790 Aetna Boon, 395; Kent's Commentaries 302 (14th Gould, 1896); collected Couch, Cyclopedia Law 1463. 492, Howard Norwich N.Y. Transportation 194, 197—199, 378. Dole C.C.Mass.1864, Fed.Cas. pages 837, 853, No.3,966 (C.C.Mass.1864) decided Clifford circuit. Accord: Lanasa Fruit Importing 556, 561—565, 58 371, 373—375, 82 442; 302, n. 1132. Ordinary fortuitous sea. superimposed war. Wrenbury put it, occasioned new arising Ard Coasters (1921) 141, 154. Oriental Automobile 37 461, 463. desire now academic real. issued provisions regard longer possible. Compare 1945 A.M.C. 1035 1036. 304 430, 438, 959, 1443. E.g., 292; cf. Transport 691. Clan Line Steamers 514; Liverpool London Risks Association Ocean (1948) 243. 708. note 12, supra. enacted test into statutory Act 1906, Edw. VII, chapter 41, 55(2). Assn. 243, 270. 362, 452. Arnould 905h 10, requisition Clause Part II provided: 'Unless otherwise mutually arranged, times during currency Charter Charterer shall provide pay assume: (i) Vessel, full hull Shipping Administration, provided assume '(e)xcept liabilities assumed, indemnified (i.e., States) involute somewhat engimatic forms. binder '3. subject rules, regulations, forms prescribed Administration. *' Endorsement Number '2. Administration issuance party relative accepted assured modifications amendments thereto.' included clauses: Clause. Notwithstanding anything Policy, warranted free claim loss, damage, expense capture, seizure, arrest, restraint, detainment, thereof attempt thereat, taking otherwise, peace lawful otherwise; (whether declaration not), piracy, civil war, revolution, rebellion, insurrection, strife therefrom. 'If hereafter endorsement supersede above warranty extent inconsistent while remains force.' An 'It agreed attached (including Collision Clause) absence F.C. therein warranty.' letter dated 14, 1945, Acting Chief Adjuster, Division Maritime Insurance, 'any suit America, Owners Y.M.S.—12, prove concerned, waived.' Interdepartmental Waiver promulgated Legal Bulletin W.S.A. 23, II, January 1943: 'II. Inter-Departmental 'Generally stated, types claims favor department agency, Army, Navy, Lend-Lease etc., turn waived pressed final conclusion. corresponding Warilda forth below:

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