Barratry (admiralty law)

Last updated

In admiralty law, barratry is an act of gross misconduct committed by a master or crew of a vessel resulting in damage to the vessel or its cargo. These activities may include desertion, illegal scuttling, theft of the ship or cargo, and any act carried out against the best interests of the shipowner.

Contents

As barratry is considered misconduct against the shipowner (or demise charterer), who is the only party having standing to sue for damages, any affected owners of cargo must normally bring claims against the shipowner (or demise charterer) for breach of contract of carriage to receive compensation. [1]

Description

Barratry is defined in the Marine Insurance Act 1906 as "every wrongful act wilfully committed by the master or crew to the prejudice of the owner, or, as the case may be, the charterer" [2] and thus usually considered a crime against the ship's owner. Therefore, if the owner himself chooses to wreck the ship, no crime is committed, as the owner has simply destroyed his own property. However, his actions can constitute a crime against any other owners of the ship. [3] Harm to the crew can constitute barratry regardless of who damages the vessel. [4] [5] Throughout the 19th century, US courts struggled to define and understand the law of barratry. Courts have since concluded that negligence alone is not sufficient to qualify as barratry; rather, there must be an intentional act and an intent to defraud. [3] Similarly, deviating from the assigned course does not itself constitute barratry. [5]

Barratry differs from the crime of mutiny in which the crew disobeys the captain of the ship in that in the former case, the crew remains loyal to the captain, who disobeys the owner of the ship.[ citation needed ]

Case law

The US Supreme Court case Patapsco Insurance Company v. Coulter explored the meaning of barratry in detail. [6] In that case, a ship was provisioned to sail to Gibraltar to sell flour, the profits of which were to have been used to purchase goods in Marseille. However, at Gibraltar, a fire started aboard ship and destroying it and the cargo inside. The plaintiffs argued that the crew could have saved the ship but failed to do so. The court ruled that failure to extinguish a fire, even if negligent, does not constitute barratry. Fire was ruled the cause of the cargo's destruction, not barratry, and the insurance company was required to pay. [6]

National Union Fire Insurance Co. v. Republic of China et al. considered how the law of barratry applies during periods of civil war and insurrection. [7] In the 1940s, the US had sold 13 ships to the Nationalist government of the Republic of China. In 1949, during the Chinese Civil War, the communist People's Republic of China took control of Mainland China and forced the Nationalist government to flee to Taiwan. Six of the ships were at ports in Mainland China, and a seventh was at sea. The Republic of China ordered all seven ships to set sail for Taiwan, but none of them complied since they chose instead to turn themselves over to the communist People's Republic of China. Although the Republic of China's insurance policy excluded losses from civil war, insurrection, or mutiny, it covered barratry. The court ruled that the ships had been lost to barratry, not mutiny, since the captains themselves had ordered their crews to hoist the flag of Communist China.[ citation needed ]

Penalties

Until 1888, barratry was a capital offense in the United States. Juries routinely refused to convict people of the crime, even if their guilt was obvious, because they did not agree with the death penalty for barratry. That came to a head with the destruction of Mary Celeste in 1885. Mary Celeste had become infamous after being discovered adrift in 1872, in good condition, with no one on board. In 1885, her final owner, Captain G. C. Parker, was accused of barratry for deliberately running her aground and burning her off the coast of Haiti and then making an exorbitant insurance claim for a nonexistent cargo. Despite the obvious attempt at insurance fraud and clear evidence of his guilt, five of the twelve jurors refused to convict Parker to avoid condemning him to death. The death penalty for barratry was abolished three years later. [8]

Barratry in fiction

Related Research Articles

Admiralty law or maritime law is a body of law that governs nautical issues and private maritime disputes. Admiralty law consists of both domestic law on maritime activities, and private international law governing the relationships between private parties operating or using ocean-going ships. While each legal jurisdiction usually has its own legislation governing maritime matters, the international nature of the topic and the need for uniformity has, since 1900, led to considerable international maritime law developments, including numerous multilateral treaties.

<i>Mary Celeste</i> Ship found abandoned in the Atlantic Ocean in 1872

Mary Celeste was a Canadian built, American-registered merchant brigantine that was discovered adrift and deserted in the Atlantic Ocean off the Azores Islands on December 4, 1872. The Canadian brigantine Dei Gratia found her in a dishevelled but seaworthy condition under partial sail and with her lifeboat missing. The last entry in her log was dated ten days earlier. She had left New York City for Genoa on November 7 and was still amply provisioned when found. Her cargo of alcohol was intact, and the captain's and crew's personal belongings were undisturbed. None of those who had been on board were ever seen or heard from again.

<span class="mw-page-title-main">Nortraship</span> Shipping and Trade Mission to administer the Norwegian merchant fleet during WWII

The Norwegian Shipping and Trade Mission (Nortraship) was established in London in April 1940 to administer the Norwegian merchant fleet outside German-controlled areas. Nortraship operated some 1,000 vessels and was the largest shipping company in the world. It made a major contribution to the Allied war effort.

Protection and indemnity insurance, more commonly known as P&I insurance, is a form of mutual maritime insurance provided by a P&I club. Whereas a marine insurance company provides "hull and machinery" cover for shipowners, and cargo cover for cargo owners, a P&I club provides cover for open-ended risks that traditional insurers are reluctant to insure. Typical P&I cover includes: a carrier's third-party risks for damage caused to cargo during carriage; war risks; and risks of environmental damage such as oil spills and pollution. In the UK, both traditional underwriters and P&I clubs are subject to the Marine Insurance Act 1906.

Shipbroking is a financial service, which forms part of the global shipping industry. Shipbrokers are specialist intermediaries/negotiators between shipowners and charterers who use ships to transport cargo, or between buyers and sellers of vessels.

Chartering is an activity within the shipping industry whereby a shipowner hires out the use of their vessel to a charterer. The contract between the parties is called a charterparty. The three main types of charter are: demise charter, voyage charter, and time charter.

Marine insurance covers the physical loss or damage of ships, cargo, terminals, and any transport by which the property is transferred, acquired, or held between the points of origin and the final destination. Cargo insurance is the sub-branch of marine insurance, though marine insurance also includes onshore and offshore exposed property,, hull, marine casualty, and marine losses. When goods are transported by mail or courier or related post, shipping insurance is used instead.

A shipowner, ship owner or ship-owner is the owner of a ship. They can be merchant vessels involved in the shipping industry or non commercially owned. In the commercial sense of the term, a shipowner is someone who equips and exploits a ship, usually for delivering cargo at a certain freight rate, either as a per freight rate or based on hire. Shipowners typically hire a licensed crew and captain rather than take charge of the vessel in person. Usually the shipowner is organized through a company, but also people and investment funds can be shipowners. If owned by a ship company, the shipowner usually performs technical management of the vessel through the company, though this can also be outsourced or relayed onto the shipper through bareboat charter.

<span class="mw-page-title-main">General average</span> Maritime law

The law of general average is a principle of maritime law whereby all stakeholders in a sea venture proportionately share any losses resulting from a voluntary sacrifice of part of the ship or cargo to save the whole in an emergency. For instance, should the crew jettison some cargo overboard to lighten the ship in a storm, the loss would be shared pro rata by both the carrier and the cargo-owners.

<span class="mw-page-title-main">Prize (law)</span> Vessel, cargo, or equipment captured during armed conflict on the seas

In admiralty law prizes are equipment, vehicles, vessels, and cargo captured during armed conflict. The most common use of prize in this sense is the capture of an enemy ship and her cargo as a prize of war. In the past, the capturing force would commonly be allotted a share of the worth of the captured prize. Nations often granted letters of marque that would entitle private parties to capture enemy property, usually ships. Once the ship was secured on friendly territory, she would be made the subject of a prize case: an in rem proceeding in which the court determined the status of the condemned property and the manner in which the property was to be disposed of.

A charterparty is a maritime contract between a shipowner and a "charterer" for the hire of either a ship for the carriage of passengers or cargo, or a yacht for leisure.

A maritime lien, in English and US law and elsewhere, is a specific aspect of admiralty law concerning a claim against a ship for services rendered to it or injury caused by it.

The Articles of War are a set of regulations drawn up to govern the conduct of a country's military and naval forces. The first known usage of the phrase is in Robert Monro's 1637 work His expedition with the worthy Scot's regiment called Mac-keyes regiment etc. and can be used to refer to military law in general. In Swedish, the equivalent term Krigsartiklar, is first mentioned in 1556. However, the term is usually used more specifically and with the modern spelling and capitalisation to refer to the British regulations drawn up in the wake of the Glorious Revolution and the United States regulations later based on them.

The Vice Admiralty Court was a prerogative court established in the late 18th century in the colony of New South Wales, which was to become a state of Australia. A vice admiralty court is in effect an admiralty court. The word "vice" in the name of the court denoted that the court represented the Lord Admiral of the United Kingdom. In English legal theory, the Lord Admiral, as vice-regal of the monarch, was the only person who had authority over matters relating to the sea. The Lord Admiral would authorize others as his deputies or surrogates to act. Generally, he would appoint a person as a judge to sit in the Court as his surrogate. By appointing Vice-Admirals in the colonies, and by constituting courts as Vice-Admiralty Courts, the terminology recognized that the existence and superiority of the "mother" court in the United Kingdom. Thus, the "vice" tag denoted that whilst it was a separate court, it was not equal to the "mother" court. In the case of the New South Wales court, a right of appeal lay back to the British Admiralty Court, which further reinforced this superiority. In all respects, the court was an Imperial court rather than a local Colonial court.

<span class="mw-page-title-main">History of insurance</span>

The history of insurance traces the development of the modern business of insurance against risks, especially regarding cargo, property, death, automobile accidents, and medical treatment.

Affreightment is a legal term relating to shipping.

Admiralty law in the United States is a matter of federal law.

<i>Hong Kong Fir Shipping Co Ltd v Kawasaki Kisen Kaisha Ltd</i> 1962 English contract law case

Hong Kong Fir Shipping Co Ltd v Kawasaki Kisen Kaisha Ltd [1962] 2 QB 26 [1961] EWCA Civ 7 is a landmark English contract law case. It introduced the concept of innominate terms, a category between "warranties" and "conditions".

<i>United States v. Shi</i>

United States v. Shi, 525 F.3d 709, is a case involving piracy on the high seas. The case held that United States could try foreign nationals on foreign-flagged vessels for crimes committed on the high seas, outside the territory of the United States.

Seaworthiness is a concept that runs through maritime law in at least four contractual relationships. In a marine insurance voyage policy, the assured warrants that the vessel is seaworthy. A carrier of goods by sea owes a duty to a shipper of cargo that the vessel is seaworthy at the start of the voyage. A shipowner warrants to a charterer that the vessel under charter is seaworthy; and similarly, a shipbuilder warrants that the vessel under construction will be seaworthy.

References

  1. Modern Maritime Law - Alexa Mandaraka-Shappard
  2. "Marine Insurance Act 1906" . Retrieved 1 August 2022.
  3. 1 2 Robert Morton Hughes (1901). Handbook of admiralty law. West Publishing Company. p.  72 . Retrieved December 14, 2011. barratry admiralty law.
  4. "Understanding Barratry". Williams Kherker. Archived from the original on 2011-10-30. Retrieved December 14, 2011.
  5. 1 2 Nicholas Baylies; Sir Thomas Edlyne Tomlins; John Ilderton Burn (1814). A digested index to the modern reports, of the courts of common law, in England (1689–1809) and the United States (1799–1812). proprietors. pp.  227–228. Retrieved March 2, 2012. barratry ship.
  6. 1 2 Patapsco Insurance Company v. Coulter, 28U.S.222 , 222( United States Supreme Court 1830).
  7. Elihu Lauterpacht; C J Greenwood (1963). International Law Reports. pp. 72–75. ISBN   9780521463713 . Retrieved March 19, 2012.,
  8. Paul Collins (December 6, 2011). "Ghost Ship". Slate.com . Retrieved December 6, 2011.