The opinion of the court was delivered by: BYERS
This is an action at law, a jury having been waived, in which the plaintiff seeks to recover for the loss of molasses in bulk, the result of escape of a portion thereof from a broken section of a pipe line leading from the plaintiff's storage tank to a valve at the dock where a ship lay in which the cargo was laden; the value was connected with the ship's hose leading over the ship's side.
The loss occurred at New Orleans on September 16, 1930.
The insurance contract is an open policy issued March 20, 1930, and consists of a printed form attached to which is a printed rider containing twenty-one paragraphs, some of which contain typewritten matter; attached to the printed rider are three typewritten riders; there are also two separate typewritten riders attached to the printed policy.
The printed contract recites that the defendant insures the plaintiff from "ports * * * in the World to ports * * * in the World generally via any route * * *, including risks of transhipment and lighterage, whether customary or otherwise."
The subject-matter is "lawful goods and merchandise, consisting principally of molasses shipped per iron or steel steamer * * *, and connecting conveyances, by land or otherwise, but excluding sailing vessels * * *, except as a connecting conveyance."
Insurance commences upon the merchandise "from the time when the Goods or Merchandise shall be laden on Board the said Ship * * * and until the said Goods and Merchandise be discharged and safely landed as above."
Further, "No risk on shore is covered by this Policy unless specifically assumed in writing, but when any risk on shore is so specifically assumed by this Policy, it is agreed that if thereby this Policy attaches on board railroad cars, the risks of fire, derailment and collision only are covered * * *; and if thereby this Policy attaches on board any other land conveyance, or on docks, wharves, or elsewhere on shore, the risks of fire and rising navigable waters or river floods only are covered." (This must be read in connection with paragraphs 9, 20 and 21 of the rider.)
The policy is agreed not to cover more than $175,000.00 in any one casualty.
The foregoing provisions occur in the printed body of the contract, which counsel have referred to as the basic policy.
The principal rider, so far as material, is as follows:
The effective date is agreed to be March 15, 1930, to continue until cancellation.
Coverage is of goods and merchandise, principally molasses, valued at "sales price," shipped per iron or steel steamer "and connecting conveyances, by land or otherwise, but excluding sailing vessels * * *, except as a connecting conveyance"; "from ports * * * in the World to ports * * * in the World generally, via any route * * *, including risks of transhipment and lighterage, whether customary or otherwise."
Paragraph 9: "Including while on docks, wharves or elsewhere on thore and/or during land transportation, risks of collision * * *, or any accident to the conveyance and/or collapse and/or subsidence of docks, and to pay loss or damage caused thereby, even though the insurance be otherwise F.P.A."
Paragraph 10: "All goods shipped are insured:
"Molasses in bulk insured:
"Warranted free from particular average unless the vessel * * * and/or the interest hereby insured be stranded, sunk, burnt, on fire, or in collision, but not liable for leakage unless the vessel be stranded, sunk, burnt, on fire or in collision, * * *, or same be caused by explosion or by the vessel coming into contact with any floating or stationary object and provided in all the above cases that the leakage shall amount to over one (1%) percent, a deduction to be made from all settlements of one-quarter of one (1%) percent allowance for ordinary leakage. The contents of each tank shall be considered as separately insured. * * *
"D. Notwithstanding any average warranty contained herein, these insurers agree to pay landing * * * charges * * *, as well as any partial loss arising from transhipment. * * *"
Paragraph 11: "Including risks of craft to and from the vessel, each lighter, craft or conveyance to be considered as if separately insured. * * *"
Paragraph 14: "In case of short shipment in whole or in part by the vessel reported for insurance hereunder, * * *, this insurance shall nevertheless cover the goods until safe arrival and delivery at destination, provided prompt notice be given these insurers when such ...