United States Supreme Court Cases & Opinions

U.S. Supreme Court

Maryland Casualty Co. v. Cushing, 347 U.S. 409 (1954)

Maryland Casualty Co. v. Cushing

No. 11

Argued April 27-28, 1953

Reargued November 10, 12, 1953

Decided April 12, 1954

347 U.S. 409

Syllabus

The owner and charterer of a vessel which collided with a pier and capsized in navigable waters in Louisiana filed consolidated petitions in admiralty in the Federal District Court in Louisiana to limit their liability under the provisions of 46 U.S.C. § 183 and 186. Subsequently, basing jurisdiction on diversity of citizenship and the Jones Act, the representatives of five seamen who had drowned brought this consolidated action in the same District Court against the liability underwriters of the owner and charterer of the vessel. For their right to proceed against the insurance companies, the plaintiffs relied on § 655 of the Louisiana Insurance Code, which authorizes direct suit "against the insurer within the terms and limits of the policy," and on the McCarran Act, 15 U.S.C. § 1012. The District Court dismissed the consolidated suit against the insurers. The Court of Appeals reversed.

Held: the judgment of the Court of Appeals is vacated, and the case is remanded to the District Court to be continued until after the completion of the limitation proceeding. Pp. 347 U. S. 410-427.

198 F.2d 536, judgment vacated and cause remanded.

The District Court dismissed a consolidated suit brought by respondents against the petitioner insurance companies. 99 F.Supp. 681. The Court of Appeals reversed. 198 F.2d 536. This Court granted certiorari. 345 U.S. 902. Judgment of the Court of Appeals vacated and cause remanded to the District Court with directions, p. 347 U. S. 423.

Page 347 U. S. 410