Lusitania Catastrophe–Part III: Federal Court, Southern District of New York

THE SINKING OF THE LUSITANIA AND INSURANCE*–

*There will be little out-and-out said in this essay about insurance. It lurks behind everything, however. This blog is about a judicial decision regarding negligence on the part of the owner of the ship–the Cunard Line–and its employees. If the relevant war risk insurance covering the vessel contained a liability part, then that insurer may have hired the lawyers representing Cunard Line. Obviously, the issues of this case are a potential foundation of liability insurer liability. Part I is found in Quinn’s Commentaries on Insurance Law and is dated March 11, 2015. Part II pertains to the judicial inquiry which took place in England almost immediately after the sinking. It is to be found in Quinn’s Commentaries on Lawyers and Lawyering. “Lusitania Catastrophe-Part II: Wreck Commission,” Blog Date April 30, 2015. A version of this blog will also occur in Quinn’s Commentaries on Insurance Law. 

Lusitania Torpedo Catastrophe:

Cunard Limits Liability: Federal Litigation

Part III

Michael Sean Quinn

(See below for more information.)

Some Quick Background

What would now be called personal injury litigation was initiated in the United States almost immediately after the ship was sunk, no doubt because at least most of the plaintiff’s were family members or beneficiaries under the estates of Americans killed in the attack.

Nowadays, of course, most personal injury cases, including wrongful death cases are litigated individually or as class actions. Admirality situations may be a bit different sometimes.  There were no class actions in 1915; they didn’t exist as litigation entities yet,  and there weren’t going to be any for a long time. Consequently, there were many actions filed, almost certainly, all of them against the owner of the vessel and maybe a travel agent or two, since Germany had taken out an ad in some newspapers, in effect, warning people of the dangers of getting on any cruise vessel going to Great Britain.

Today, the chances are that liability carriers would be involved to some degree in defending a target defendant, assuming it is insured.  So, did Canard Steam Ship, Ltd, the owner of the Lusitania, have an insurer with a duty to defend?  It had war risk insurance that covered the ship itself plus its cargo, and with an exposure that large, undoubtedly, there was reinsurance and hence probably reinsurers. But I don’t know whether the war risk property insurance policy also had a liability section.

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Lusitania Litigation 1918: Part III — Judicial Opinion and Expert Opinions

THE SINKING OF THE LUSITANIA AND LITIGATION, ESPECIALLY INSURANCE*–

*There will be little out-and-out said in this essay about insurance. It lurks behind everything, however. This blog is about a judicial decision regarding negligence on the part of the owner of the ship–the Cunard Line–and its employees. If the relevant war risk insurance covering the vessel contained a liability section, then that insurer may have hired the lawyers representing Cunard Line. Obviously, the issues of this case are a potential foundation of liability insurer liability. Part I is found in Quinn’s Commentaries on Insurance Law and is dated March 11, 2015. Part II pertains to the judicial inquiry that took place in England almost immediately after the sinking. It is to be found in Quinn’s Commentaries on Lawyers and Lawyering. “Lusitania Catastrophe-Part II: Wreck Commission,” Blog Date April 30, 2015. A version of this blog will also occur in Quinn’s Commentaries on Insurance Law. Part IV will consist of two parts. Part IV.A pertains to a life insurance case in the New York Court of Appeals arising out of the Lusitania sinking; Part IV.B pertains to another, a little bit similar looking, enemy attack, to wit, Pearl Harbor, and the case was decided in the Hawai’i Supreme Court.

Lusitania Torpedo Catastrophe:

Cunard Limits Liability: Federal Litigation

Part III

Michael Sean Quinn
(See below for more information.)

Some Quick Background

What would now be
called personal injury litigation was initiated in the United States almost immediately after the ship was sunk, no doubt because at least
most of the plaintiff’s were family members or beneficiaries under the estates
of Americans killed in the attack.

Nowadays, of course,
most personal injury cases, including wrongful death cases are litigated
individually or as class actions. Admiralty situations may be a bit different sometimes.  There
were no class actions in 1915; they didn’t exist as litigation entities yet,  and there weren’t going to be any for a long
time. Consequently, there were many actions filed, almost certainly, all of
them against the owner of the vessel and maybe a travel agent or two, since
Germany had taken out an ad in some newspapers, in effect, warning people of
the dangers of getting on any cruise vessel going to Great Britain.

Today, the chances
are that liability carriers would be involved to some degree in defending a
target defendant, assuming it is insured. 
So, did Canard Steam Ship, Ltd, the owner of the Lusitania, have an
insurer with a duty to defend?  It had
war risk insurance that covered the ship itself plus its cargo, and with an
exposure that large, undoubtedly, there was reinsurance and hence probably reinsurers. But I don’t know whether the war risk property insurance policy also had a liability section.

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Luistania Catastrophe Part II: Wreck Commission of 1915

REPORT OF WRECK COMMISSIONER’S COURT:

Lusitania’s Sinking

July 18,
1915

Michael Sean Quinn

(For more information see below.)

As everyone knows,
out of the 1,959 persons (passengers and crew) on the Lusitania 1,195 perished when a German submarine
torpedoed the cruiser off the south coast of Ireland as part of World War
I.  As is not unusual after incidents
like this, even in yesteryear, litigation began immediately.

The event happened
on May 7, 1915. The first case proceeded in the Wreck Commissioner’s Court[1*]
sitting in, and around Westminister, Great Britain. The “trial” or “hearings”
lasted several days (June, 15-18, 1015, while the “court order” bears the date
July 17, 2015).  Thus the case began
approximately 6 weeks after the catastrophe and was “decided” a month after
that.  One might think this
extraordinary, given the amount of time it to travel, etc., in those days. [The bracketed numbers are EndNote numbers.]

Various people
testified; various depositions became part of the record; and Lord Mersey, the
Commissioner,[2]
heard the case and was assisted by several other appropriately experienced men
served as “Assessors.”[3]
 Lord Mersey himself delivered the
“Report on Loss of the “Lusitania” pursuant to “The Merchant Shipping Acts,
1894 t o 1906.” (*Readers will notice reference to the Assessors in the lengthy
quotation from Lore Mersey set forth below.)

The “Report” ended
with a one page “ruling,” but there was a longer account of the facts of the
case attached to it. A good deal of evidentially material is to be found
annexed (attached, in today’s lingo) to the very short “order.”[4]
It looks like all the material before the Commission can be found on the
Internet under “Lusitania Inquiry Project”; however, I have yet to find the
relevant war risk insurance policy issued by Liverpool to London [sometimes called “London and Liverpool”]War Risk
Association.  One of the most interesting
portions of those records is the testimony of Captain Turner who was in command
of the ship.  (If a reader should have it
in its pocket or purse, please send it along.)

The British
government was trying to blame him (along with the German U-boat) for the disaster—that
is, make him to blame and not it.[5]
The Admiralty, of which Churchill was First Lord, representative from the
cabinet,  at the time of the sinking, claimed among many other things that the ship was too close to shore, that it
wasn’t going fast enough and that the crew of the ship was ill prepared and
trained and so could not competently handle the problem. 

Captain Turner was
asked whether the crew was “proficient,” and he said that it was not.  He was later asked if he meant that it was
not “competent.” He said that he meant not such a thing. It was well known at
the time, that virtually all experienced seamen had been “drafted” into the
Royal Navy and that commercial lines were using less experienced hands.
(Perhaps this is the kind of questioning and answering—distinguishing between proficiency and competence–only a litigator would love, but then, that’s what the
author has done for 35 years, so far, along with insurance disputes.)

In the end, Lord
Mersey held that everyone did just OK-to-fine, or better, and spent a good deal of his “opinion”
extolling the competence and virtue of the crew and Captain Turner. He draws
particular attention to an 18 year old newbie who, with a mate, courageously saved as many
as 60 lives by heroic acts in the water. 
Here is a famous part of his Report. It is quoted at length in The Lusitania [Petition of Cunard S.S. Co.,
Limited], 251 F. 715 (S.D.N.Y. 1918)[6]

Capt Turner was fully advised as to the means which,
in the view of the Admiralty, were best calculated to avert the perils he was
likely to encounter, and in considering the best question whether he is to
blame for the catastrophe in which his voyage ended I have to bear this
consideration in mind. It is certain that in some respects Capt. Turner did not
follow the advice given to him.  It may
be (though I seriously doubt it) that, had he done so, his ship would have
reached Liverpool in safety. But the question remains: Was his conduct the
conduct of a negligent or of an incompetent man? On this question I have sought
the guidance of my assessors, who have rendered me invaluable assistance, and
the conclusion at which I have arrived is that blame ought not to be imputed to
the captain. The advice given to him, although meant for his most serious and
careful consideration was not intended to deprive him of the right to exercise
his skilled judgment in the difficult questions that might arise from time to time
in the navigation of his ship. His omission to follow the advice in all
respects cannot fairly be attributed either to negligence of incompetence. He
exercised his judgment for the best. It was the judgment of a skilled and
experienced man, and although others might have acted differently, and perhaps
more successfully, he ought not, in my opinion, to be blamed.

Was Assessor
Inglefield appointed for Lloyd’s related reasons? After all the war rich
insurer was a Lloyds syndicate, was it not? Was Lord Mersey writing in such a
way as to prevent the government’s getting away with blaming Captain Turner,
while getting the government off the hook as well?

In any case, it is
worth noting that Lord Mersey’s point might be put a bit differently
today.  Today it might be said that Capt.
Turner, like any other sea captain, at least a that time,  had the discretion to make decisions for a
ship while at sea, and there wasn’t evidence to prove that Turner abused his
discretion.

Eventually, the
author may write further on this part of the litigation-“afterstory,”

especially as it
pertains to insurance. Time will tell. 

Michael Sean Quinn, Ph.D.,
J.D., c.p.c.u. . . .

The Law Firm of Michael Sean Quinn et

Quinn and Quinn

                                 1300 West Lynn Street, Suite 208

                                             Austin,
Texas 78703

                                                 (512)
296-2594

                                            (512)
344-9466 – Fax

                                E-mail:  mquinn@msquinnlaw.com

[1] It
appears that this Court may, somehow be connected to the Board of Trade.  I am not yet clear how that worked.

[2]
Significantly, Lord Mersey had served in a similar capacity after the sinking
of the Titanic. For more on Lord Mersey, see Wikipedia, “John Bingham, and 1st
Viscount Mersey.”

[3]
In this case, an Assessor was a knowledgeable person that could advise the
judge or commissioner as to facts, customs, industry practice, and the
like.  One of the Assessors was Admiral
Sir Edward Fitzmaurice Inglefield. After his naval career ended, he became
Secretary to Lloyds of London (1906-21).  

[5]
Parts of the general population found lots of reason to blame Admiralty: not
send a convoy to protect the ship,  poor
instructions to the ship captain, using endangering the ship as a device to
encourage America to enter the war, not insisting that the ship zigzag, not
making sure the crew was better trained, not requiring the ship to go around
the north end of Ireland, not keeping the ship further away from shore– you
name it.

[6] This case will be discussed in Part III of this series
of blogs.

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Crime Against Lawyer

Young Lawyer Murdered: A Twisted Tale With a Twist

Part II

Michael Sean Quinn(See below*)

Part, I of this story, was told earlier, in a blog of nearly the same name entered on April 14, 2015. It was revealed in the press a few days ago, which there is yet more to the story.  The background has nothing to do with the guilt of the murderess.  It has only to do with the background. 

The background is simple enough. Lawyer David led three lives: (1) law firm associate, (2) married man, and (3) gay fellow.  Often passion as to (1) ruins (2), and when (2) and (3) go together, there is frequently trouble.

The now available information reveals that the hotel where David was stabbed to death was a standard locale for male encounters.  David had arranged them by over the Net, it seems.  

There are several interesting facts about this twist.  And I have two predictions of a business nature.

First,  the revealing records were kept at court, under seal for an interval. Why#1? 

Second, details were revealed when “Wife” discovered David’s “private” tablet that was filled with all sorts of information. 

Third, the murderous girls must have known what was going on at the hotel and have used it as an extortion biz. This means there were at least several other David-like encounters. (Either that or David was their first whack at gayness extortion; they were really not good at it at all, and will now grow up and get old in the slammer.) 

Fourth, and this is my favorite, the police almost certainly realized and hence knew right from the start of their investigation what had happened.  That’s probably why the tablet became important in the investigation. 

Quinn’s First Prediction: The overnight business at the hotel has declined sharply. 

Quinn’s Second Prediction: Wife will sue the hotel.

Quinn’s Third Prediction: We will see a version of this drama dramatized in the fall on cable TV. My recommendation is that the David character be set up a partner. Maybe Ms. Murderess’s accomplice should be David’s missing step-sister. 

Being a gay lover and being a lover of gaiety are quite different things.

Attachment of August 24, 2015

The young woman who stabbed the young lawyer from DLA Piper pleaded guilty on Friday, August 21, 2015 and was sentenced to 24 years in prison. Her even younger accomplice got a much, much lighter sentence, 12 months, with 6 months suspended + 3 years probation. 

What’s wrong with this picture?

*Law Office of Michael Sean Quinn

+

Quinn and Quinn

1300 West Lynn #208

Austin, Texas 78703

mquinn@msqlaw.com

(Resumes: www.michaelseanquinn.com)

(o) 512-296-2594

(c) 512-656-0503

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“Insurance Coverage Opinions”–An Essay

Once upon a time, Michael Sean Quinn and Kimberly Steele wrote an essay together entitled “Insurance Coverage Opinions.” It was published in the volume 36 of the SOUTH TEXAS LAW REVIEW in 1995 pp. 79-152. (It was also reprinted in a periodic anthology.)
The authors have gone their separate ways. Ms. Steele is still at a large law firm in Dallas, Texas, Sedgwick Law, practicing principally insurance law,  while Mr. Quinn has bounced around some–various law firms, various kinds of law firms, expert witnessing, and various kinds of practice, though insurance law remains part of his practice.  

It is said from time to time that if one wants to learn how to do coverage work, this essay is a good pleace to begin. 

*Michael Sean Quinn, Ph.D., J.D., c.p.c.u. . . .

The Law Firm of Michael Sean Quinn et

Quinn and Quinn

                                 1300 West Lynn Street, Suite 208

                                             Austin, Texas 78703

                                                 (512) 296-2594

                                            (512) 344-9466 – Fax

                               E-mail:  mquinn@msquinnlaw.com

www.michaelseanquinn.com

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Quinn Quotes

Truth is not a relative (or relativistic) concept. Factual propositions are true; they are false; they are too vague to have a true value, or their true value has not been determined. We don’t know, or we do not know yet, is a permissible answer to a question, so long as it is true. It is not always the case that false propositions must be apparently false. Sometimes a false proposition can look true. And vice versa. ~Michael Sean Quinn, PhD, JD, CPCU, Etc.Tweet

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Michael Sean Quinn, PhD, JD, CPCU, Etc*., is available as an expert witness in insurance disputes and other litigation matters. Contact