Brown & Root, Inc. v. American Home Assurance Company

This case is before the Court again. Mageo Towing Company, which was under contract to transport certain drilling mud by barge, contracted with the appellant, Brown & Root, Inc., for the hire of a tug to move the barge for $900. Near the end of the voyage a substantial part of the mud was lost overboard. Magco’s insurer, American Home Assurance Company, appellee, paid the cargo owners for the loss of the mud. As sub-rogee, American Home sued Brown & Root. The district court held that the tug was at fault and entered a decree in favor of American Home for $20,507.-49 with interest at six…