Fidelity-Phenix Fire Ins. Co. Of New York v. Flota Mercante Del Estado. The Rio Gualeguay

STRUM, Circuit Judge.

This libel in admiralty was brought, against the owner and operator of the-Steamship Rio Gualeguay to recover for fire damage to a shipment of newsprint on-December 3, 1943, while the vessel was in-the harbor of New Orleans, Louisiana. Libellant is the insurer of the newsprint, to-whom the rights of the owner thereof were assigned upon payment of the loss. The appeal is from a decree dismissing the libel. 102 F.Supp. 861.

The vessel’s No. 2 hold had been divided in half by a thwartship wooden bulkhead, the after half of the hold being used for the stowage of reserve bunker…