Standard Oil Co. v. United States - 267 U.S. 76 (1925)
U.S. Supreme Court
Standard Oil Co. v. United States, 267 U.S. 76 (1925)
Standard Oil Company of New Jersey v. United States
Argued January 14, 1925
Decided February 2, 1925
267 U.S. 76
1. A vessel insured by the United States against "takings at sea, arrests, restraints and detainments of all kings, princes, and peoples," etc., "and all consequences of hostilities or war-like operations" was stopped by a British war ship and boarded by a British naval officer with armed men; her navigation was resumed by her master, but under the general control of the officer; she struck a rock and was lost. Held that the proximate cause was the seizure and paramount control (insured against), and not the marine peril. P. 267 U. S. 77.
2. When the United States goes into the business of insurance (Act of Sept. 2, 1914, c. 293, § 5), issues policies in familiar form, and provides that, in case of disagreement, it may be sued, it must be assumed to have accepted the ordinary incidents of suits in such business, including the payment of interest. P. 267 U. S. 79.
291 F. 1 reversed.
Certiorari to a judgment of the circuit court of appeals reversing a decree of the district court awarded against the United States, as respondent, in a libel on two war risk insurance policies, issued under the War Risk Insurance Act of September 2, 1914.