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BRISTOL S.S. CORP. v. LONDON ASSUR.

November 10, 1975

BRISTOL STEAMSHIP CORPORATION, Plaintiff,
v.
The LONDON ASSURANCE and H. O. Linard, Defendants


Bonsal, District Judge.


The opinion of the court was delivered by: BONSAL

BONSAL, District Judge.

The issue of liability under the parties' port risk marine insurance agreement was tried before the Court on documentary evidence. No witnesses were called by either side. Plaintiff, a Panamanian corporation, was owner of the steamship the "DELFINI", which, while at anchor at the Port of Osaka on February 15, 1968, broke adrift, collided with other vessels, became stranded, sustained damages and was thereafter sold at public auction in Japan on or about January 14, 1969. Plaintiff commenced this action under 28 U.S.C. § 1333 *fn1" to recover on its port risk insurance agreement, Policy No. H.01622, subscribed to by defendants The London Assurance, a corporation engaged in the business of insurance, and H. O. Linard, an insurance underwriter, as well as other underwriters. *fn2"

 The original port risk insurance agreement was dated November 10, 1967 and covered the DELFINI for one month. At the time of execution of this agreement, the vessel was anchored at the Port of Hirohata, Japan. The agreement provided as to coverage:

 
"Whilst at Hirohata within breakwaters or held covered at a premium to be agreed.
 
"With leave to shift, in tow or otherwise and including docking, undocking, overhauling, fitting out and whilst on trial trips within port limits or otherwise held covered at a premium to be agreed."

 The agreement slip also incorporated by reference the "American Institute Port Risk Clauses (lines 148/165 deleted)", "War &c. Risks as per Institute Clauses [March 7, 1961]", and "P. & I. as per Institute Port Risk Clauses limited to the Hull Value", and the agreement stated "Usual American Clauses as applicable".

 The "American Institute Port Risk Form" (hereinafter referred to as "AIPR Form") provides that:

 
"[the vessel being insured has] leave to go on or off docks, cradles, . . . and to shift (in tow or otherwise) within said limits; but if the Vessel commence . . . a voyage during the term of this insurance, this Policy shall thereupon terminate as soon as the Vessel leaves her moorings to depart from the above named port." [Lines 37-39]
 
* * *
 
"In the event of deviation to be held covered at an additional premium to be hereafter arranged, provided previous notice be given." [Line 47]
 
* * *
 
"The terms and conditions of this form are to be regarded as substituted for those of the Policy to which it is attached, the latter being hereby waived, except provisions required by law to be inserted in the Policy." [Lines 166-167].

 There is no dispute that the parties extended the term of the November 10, 1967 agreement by initialling renewal slips on December 5, 1967 and on January ...


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