Providence Washington Insurance Co. v. Adler

Stone, J., delivered the opinion of the Court. The plaintiffs shipped by a line of steamers, running from New York to the south, a quantity of oil cloth clothing to Louisiana and Texas. They insured this clothing before shipment in the office of the defendant company. The clothing was packed in boxes, and on its arrival at its destination, it was found injured and comparatively worth ¹⁶⁶ less, either by spontaneous combustion or by some chemical action arising from the material in the goods themselves.

They all presented the appearance of having been burned or charred within the boxes. The clothing was' not injured by any external force or accident, but whatever the injury was, it was the result of the inherent in-, firmity of the goods themselves. Neither the plaintiffs nor the defendants knew at the time the insurance was effected, that the goods were liable to spontaneous combustion, or to be injured by any inherent defect in the goods. No extra premium to cover such risk was paid.

Under these circumstances, the defendants claim that by the general principles of insurance law, they are not liable for a loss by spontaneous combustion, caused by the inherent infirmity of the goods themselves. This was a marine policy, and one of the dangers insured against, by the terms of the policy, was fire. But while this is undoubtedly so, the question remains, and is still undecided in this State, whether the term “ fire ” used in the ordinary marine policy will, upon general principles, cover the case of spontaueous combustion, caused by an inherent infirmity in the article insured, and not the result of accident or peril of the sea. There is no doubt of the liability of the defendant company, under its policy, had the ship taken fire, and the goods been consumed ; or had the fire originated from any of the perils insured against; but the question is a very different one, when, as in this case, the goods are in good faith insured, and believed both by plaintiffs and defendant, not to be liable to spontaneous combustion by reason of their inherent infirmity, but which in fact were so liable, and were so injured.

The authorities are few upon this subject, and neither full nor satisfactory. One of the oldest to which we have access is Emerigon, who says, page 290 : “Art. 12 of another title establishes, as a general rule, that everything which happens through the inherent vice ¹⁶⁷ of the thing, or by tlxe act of the owners, master or merchant shipper, shall not be reputed a peril, if not otherwise borne on the policy.” It is then certain that the insurers never answer for damages and losses which happen directly through the act or fault of the assured himself. It would be in fact intolerable that the assured should be indemnified by others, for a loss of which he is the author. This rule is grounded on first principles.

It is a general rule, from which it is not permitted to derogate by a contrary agreement. As Pothier remarks, “it is evident that I cannot validly agree with any one, that he shall charge himself with the faults that I shall commit.” We do not understand this learned author to mean, that an article may not be insured that is inherently liable to spontaneous combustion, or decay, provided it is so expressed in the policy, but not otherwise. But if the loss happens through the fault of the assured, then the insurers are not liable, whatever may be the terms of the policy. For example, if an article is insured, which when dry is not liable to spontaneous combustion, but when he puts it on board, it is wei, in such case no recovery can be had.

Such we understand to be the views of this author. The next case to which we are referred, is the case of Boyd vs. Dubois, 3 Campbell. In that case Lord Eelenborougk said, “ If the hemp was put on board in a state liable to effervesce, and it did effervesce, and generate the fire which consumed it, upon the common principles of insurance law, the assured cannot recover for a loss which he himself lias occasioned.” The defendant in that case attempted to prove that the hemp, which was insured, was put aboard ship in a damaged condition; and for that reason, was apt to ferment and take fire. This case is in accord with Emerigon.

The next authority, is Parsons on Contracts, 2 vol., page 374, 6th edition. The author therein says: ¹⁶⁸ “It is another rule, that insurers are not liable for property destroyed by the effect of its own inherent deficiencies or tendencies, unless these tendencies are made active and destructive, by a peril insured against. Thus, if hemp, which was dry when laden, be afterwards wet by a peril of the sea, and by