Standard Oil Company of New Jersey v. United States (340 U.S. 54)
U.S. Supreme Court · decided November 27, 1950 · Supreme Court Database (Spaeth)
- Citation
- 340 U.S. 54 · 71 S. Ct. 135
- Decided
- November 27, 1950
- Term
- October Term 1950
- Vote
- 6–3
- Majority author
- Justice Black
- Issue area
- Economic Activity
- Disposition
- Affirmed
- Outcome
- Petitioning party lost
- Ideological direction
- Liberal
Opinion excerpt
Mr. Justice Black delivered the opinion of the Court. These are admiralty proceedings involving the Government’s liability on a policy of war risk insurance by which it insured petitioner’s steam tanker John Worthington against “all consequences of hostilities or warlike operations.” Stipulated facts show that on December 16, 1942, there was a collision between the Worthington and the YMS-12, one of three United States Navy mine sweepers clearing the channel approaches to New York harbor. Both vessels were at fault in failing “to comply with the applicable rules” of good seamanship “under the circumstances.” In the District Court the United States conceded that mine sweeping is a “warlike operation” but urged that the evidence failed to show that the collision was a “consequence” of the mine sweeping within the meaning of the insurance contract. Petitioner contended that the mere showing of loss from collision with the moving warship established liability under the policy as a matter of law. It argued that this was the English rule which should be followed by American courts. The District Court did not accept petitioner’s view of the English rule. It read both the American and English authorities as conditioning the underwriter’s liability on proof of facts showing that the “warlike operation” was the “proximate,” “predominant and determining” cause of the loss. The court…
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