84 Mass. 86 | Mass. | 1861
The insuperable difficulty in the way of a recovery by the plaintiff on the policy declared on is that he fails to show that he had any insurable interest in the freight, for the loss of which he seeks to recover in this action. He was not the owner or charterer of the vessel, and had no interest either direct or remote in her earnings. They were not pledged to him as security for the money which he advanced to the owners, nor had he any lien upon them for his reimbursement in case the contract of affreightment was not fulfilled. The money advanced for the carriage of that part of the cargo which belonged to him was not intended as an absolute payment of the freight. By the terms of the bill of lading, the contract was entire, and no freight would be earned unless the coal was carried and delivered at the port of destination. If, for any reason not imputable to the plaintiff, the owner of the vessel failed to deliver the coal according to the terms of the bill of lading, the plaintiff might recover back the sum advanced. Griggs v. Austin, 3 Pick. 20. Brown v. Harris, 2 Gray, 359. How then can it be said that he had any interest in the earnings of the vessel ? His right to claim repayment of the owner did not operate as an assignment or pledge of the earnings of the vessel, or give him any lien on them. It was only a personal liability of the owner of the vessel for the amount advanced, dependent on the contingency of the fulfilment of the contract for the carriage of the cargo. If the vessel arrived at her port of destination and delivered the coal, there would be no debt due to the plaintiff; if she failed to arrive, the owner would be indebted for the amount advanced. It was in the nature of a conditional loan. The liability depended on the contingency of the arrival of the vessel and delivery of the cargo. But this liability did not constitute the subject of insurance. It was the freight or earnings of the vessel which the defendants agreed to insure. In these the plaintiff acquired no
It was urged by the learned counsel for the plaintiff, in his very ingenious and elaborate argument, that the word freight, as used in this policy, is not to be taken in its ordinary and legitimate sense, but that it is to be construed, in connection with the context, as equivalent to the words goods on board. But this seems to us to involve the startling proposition that, under an insurance on freight, the underwriter may be held liable for a loss on cargo. Such a construction would amount to a perversion of terms. The word freight, as used in policies of insurance, has a well settled and distinct meaning. It does not include cargo or goods laden on board. These are insured under the term goods, or cargo, or merchandise, or words of like import. Freight signifies the earnings or profit derived by the ship-owner or the hirer of a ship from the use of it himself, or by letting it to others, or by carrying goods for others. 1 Phil. Ins. §§ 327, 469. 1 Arnould on Ins. 200. It cannot be made to comprehend the profit which the owner of a cargo, having no interest in the vessel or earnings, as such, expects to derive from the transportation of his goods to their port of destination. The defendants have a right to stand on their written contract;
We are therefore of opinion that the plaintiff had no interest in the freight to which the policy could attach; that the contract did not extend to and cover the increased value which the cargo might have in the port of destination ; and that he can recover in this action only the premium paid by him for the policy.
Judgment accordingly.