Armour & Co. v. Fort Morgan S.S. Co., Ltd., 270 U.S. 253 (1926)

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Armour & Company v. Fort Morgan Steamship Company

No. 135

Argued January 14, 1926
Decided March 1, 1926
270 U.S. 253

CERTIORARI TO THE CIRCUIT COURT OF APPEALS

FOR THE FIFTH CIRCUIT

Syllabus

1. The liability of a ship as surety for damage resulting from her unseaworthiness to a shipment undertaken by her charterer is released by a compromise between the shipper and charterer discharging the primary obligation of the latter. P. 257.

2. A chartered ship is not liable for damage to a shipment from unseaworthiness when the unseaworthiness was caused by her conversion by the charterer and shipper to a use not authorized by the charter party. P. 258.

3. The existence of admiralty jurisdiction cannot be established conclusively by allegations in the libel, but depends upon the facts as revealed in the case. P. 258.

4. Admiralty jurisdiction over a libel based on maritime contracts is not defeated by the bringing in of nonmaritime contracts by way of defense. P. 259.

297 F. 813 affirmed.

Certiorari to review a judgment of the circuit court of appeals which affirmed a judgment of the district court dismissing the libel in a suit in rem brought by Armour and Company against the steamship Fort Morgan to collect damages to cargo alleged to have been due to the unseaworthiness of the ship. The Fort Morgan Steamship Company defended as claimant and impleaded the Central American Cattle Company.