Peter Hagan v. Scottish Union & National Insurance Company

United States Supreme Court

186 U.S. 423

PETER HAGAN and Edward F. Martin, Petitioners,  v.  SCOTTISH UNION & NATIONAL INSURANCE COMPANY.

 Argued: April 8, 1902. --- Decided: June 2, 1902

This is a libel in admiralty by the petitioners, Peter Hagan and Edward F. Martin, on a policy of insurance issued by the Scottish Union and National Insurance Company, November 19th, 1897, against loss or damage by fire to an amount, not exceeding $2,000, on the tug boat Senator Penrose. The district court made a decree for the libellants. 98 Fed. 129. This decree was reversed by the circuit court of appeals for the third circuit. 43 C. C. A. 55, 102 Fed. 919.

By the policy it is provided, among other things, that the company—

'In consideration of the stipulations herein named and of twenty-five dollars premium does insure Peter Hagan and Company for account of whom it may concern for the term of one year from the 19th day of Novemver, 1897, at noon, to the 19th day of November, 1898, at noon, against all direct loss or damage by fire, except as hereinafter provided, to an amount not exceeding two thousand dollars, to the following-described property while located and contained as described herein, and not elsewhere, to wit:

'On the iron tug Senator Penrose, her hull, tackle, apparel, engines, boilers, machinery, appurtenances, furniture, and supplies.

'Privilege to engage in such employment as may be incidental to her trade; also to lay up and haul out on railways and dry docks and to undergo alterations and repairs; also to use kerosene oil for lights.

'Other insurance permitted without notice until required.

'N. Y. and Penna. standard.

Percentage coinsurance clause.

'If at the time of fire the whole amount of insurance on the property covered by this policy shall be less than 80 per cent of the actual cash value thereof, this company shall, in case of loss or damage, be liable for only such portion of such loss or damage as the amount insured by this policy shall bear to the said 80 per cent of the actual cash value of such property.

'Attached to policy No. 2,139,457, Scottish U. & N. Insurance Co.

'S. D. Hawley & Son,

Agents, Resident Managers.'

• * * * *

'This entire policy, unless otherwise provided by agreement indorsed hereon or added hereto, shall be void if the insured now has, or shall hereafter make or procure, any other contract of insurance, whether valid or not, on property covered in whole or in part by this policy; or if the subject of insurance be a manufacturing establishment, and it be operated in whole or in part at night later than ten o'clock, or if it cease to be operated for more than ten consecutive days; or if the hazard be increased by any means within the control or knowledge of the insured; or if mechanics be employed in building, altering, or repairing the withindescribed premises for more than fifteen days at any one time; or if the interest of the insured be other than unconditional and sole ownership; or if the subject of insurance be a building or ground not owned by the insured in fee simple; or if the subject of insurance be personal property and be or become encumbered by a chattel mortgage; or if with the knowledge of the insured foreclosure proceedings be commenced or notice given of sale of any property covered by this policy by virtue of any mortgage or trust deed; or if any change, other than by the death of an insured, take place in the interest, title, or possession of the subject of insurance (except change of occupants without increase of hazard), whether by legal process or judgment, or by voluntary act of the insured, or otherwise; or if this policy be assigned before a loss,' etc.

The words 'Peter Hagan and Company for account of whom it may concern' are written with a pen, while the paragraphs commencing with the words 'On the iron tug,' and ending with the words 'S. D. Hawley & Son, Agents, Resident Managers.' are in typewriting, and on a separate strip attached to the face of the policy.

In June, 1898, Peter Hagan, who obtained the insurance, sold one-half interest in the tug to Edward F. Martin, and the latter held that interest at the time of the destruction of the tug by fire. No notice was given to the insurance company of the fact that Martin had acquired an interest in the boat. The respondents denied all liability to the plaintiffs because no notice was given of the change of ownership or of the interest in the tug by respective libellants as required by the terms of the policy.

Messrs. John F. Lewis and Horace L. Cheyney for petitioners.

Mr. Henry R. Edmunds for respondent.

Mr. Justice Peckham, after making the foregoing statement of facts, delivered the opinion of the court:

Notes