Phenix Ins. v. Chadbourne
U.S. Circuit Court for the District of Massachusetts
The facts in this case were that the vessel was in Georgia, and it became necessary to raise money to put the vessel in condition to make a voyage to South America. Parsons & Loud, of New York, were agents of the owners, and advanced the money, taking out a policy of insurance to secure the amount thus advanced. The vessel ivas lost, and the insurance money collected by Parsons & Loud, and the plaintiff took an assignment of the claim.
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The facts in this case were that the vessel was in Georgia, and it became necessary to raise money to put the vessel in condition to make a voyage to South America. Parsons & Loud, of New York, were agents of the owners, and advanced the money, taking out a policy of insurance to secure the amount thus advanced. The vessel ivas lost, and the insurance money collected by Parsons & Loud, and the plaintiff took an assignment of the claim. The defendant Chadbourne is administrator of the estate of Neliemiah Gibson. •
1Opinion of the CourtNelson, J.
It is perfectly clear, from the facts agreed upon in this case, that the insurance on the advances made by Parsons & Loud on the *301credit of the vessel and freight were effected at the defendants ’ request, at their cost, and for their benefit, and that Parsons & Loud were bound by their contract with the defendants to apply the insurance money, when received, to the payment of the debt incurred on account of the advances. The receipt of the insurance money by Parsons & Loud, therefore, operated at once as an extinguishment of the debt, and they could thereafter have maintained no action…
2Cases cited1 opinion
- Phœnix Insurance v. Erie & Western Transportation Co.Supreme Court of the United States · 1886
3Cited by2 opinions
- Liverpool London Globe Ins. Co., Ltd. v. OrrellSupreme Court of Florida · 1939
- Wright v. North River Ins.Court of Appeals for the Fifth Circuit · 1928