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Admiralty Law Keyed to Maraist
United States v. Atlantic Mutual Insurance Co.
Citation:
343 U.S. 236, 72 S.Ct. 666, 96 L.Ed. 907, 1952 AMC 659 (1952)Facts
The United States owned the steamship Nathaniel Bacon, which operated as a common carrier transporting cargo for hire. The vessel collided with the Esso Belgium, and both ships were damaged. Cargo belonging to the respondents was also damaged in the collision. It was agreed that the collision resulted from negligent navigation by employees of both ships, while the cargo owners were not at fault. Under maritime law, the Belgium, as one of two joint tortfeasors, was liable for 100% of damages suffered by the Bacon’s cargo owners. The Harter Act and Carriage of Goods by Sea Act barred cargo owners from directly suing the Bacon for cargo damages. The bill of lading issued by the Bacon contained a “Both-to-Blame” clause, which would require cargo owners to indemnify the carrier for any amounts the carrier lost because damages recovered by cargo owners from the Belgium were included in the aggregate damages divided between the two ships.
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