Equitable Insurance Company v. Hearne

APPEAL from the Circuit Court for the District of Massachusetts.

The controversy in this case grew out of a contract of insurance upon the same charter-party as in the preceding case, though here the insurance was by a different company from the insurance there. The present case was thus:

On the 2d of May, 1866, Hearne addressed a letter to the Equitable Insurance Company as follows:

'Insure $4000 on the charter-party of the bark Maria Henry, valued at $16,000, if you will not charge me more than 3 per cent.; voyage from Liverpool to Cuba, and to Europe via Falmouth, for orders where to diseharge. She will take her registered tonnage of coal.'

On the 4th of the same month the company replied:

'We cannot write the charter of the bark Maria Henry at your rate, viz., 3 per cent., including coals, from Liverpool to Cuba. Our rate will be 4 per cent. for the voyage, to include coals.'

On the 7th of the month Hearne answered, arguing against the rate proposed, and offered '3 per cent., or 4 per cent., 1 1/2 per cent. to be returned if no loss.'

On the day following the company responded:

'We will write upon the charter of the bark Maria Henry as proposed by you-Europe to Cuba and back to Europe-at 3 1/2 per cent. net. It is worth something, you know, to cover the risk at the port of loading in Cuba.'

On the next day Hearne wrote:

'I accept your proposition in reference to the insurance of the bark Maria Henry. Please insure $4000, at 3 1/2 per cent., on the charter valued at $16,000, at and from Liverpool to Cuba, and to Europe via a market port, for orders where to discharge.'

The contract, as expressed in the policy, was for—

'Four thousand dollars on charter of bark Maria Henry, at and from Liverpool to port of discharge in Cuba, and at and thence to port of advice and discharge in Europe.'

The facts of the case were the same in all respects, down to the close of the litigation at law between the parties, inclusive, as those in the case immediately preceding, where the controversy was with the other company. That case is referred to for the particulars. Hearne having been defeated in his action at law, filed this bill for the reformation of the contract, as stated in the policy. The Circuit Court decreed in his favor. The company brought the case here for review.

Mr. J. C. Dodge, for the appellant; Mr. Walter Curtis, contra.

Mr. Justice SWAYNE, having stated the case, delivered the opinion of the court.