## Facts

- Dunham, a New York citizen, held a marine insurance policy issued in Boston on March 2, 1863 by New England Mutual Marine Insurance Company, a Massachusetts corporation.
- The policy insured $10,000 “for whom it might concern” on the vessel *Albina* for one year against perils of the seas and other specified risks.
- During the policy period, *Albina* was struck on the high seas by another vessel, allegedly due to the negligence of those in charge of that other vessel, causing damage.
- Dunham alleged he spent substantial sums repairing *Albina* and sought payment from the insurer under the policy.
- Dunham filed a libel in personam in the U.S. District Court for the District of Massachusetts sitting in admiralty to recover for the loss.
- The district court entered a decree for Dunham.
- The insurer appealed to the Circuit Court for the District of Massachusetts, where the judges disagreed on whether the district court, as a court of admiralty, had jurisdiction over a libel in personam on a marine insurance policy.
- The circuit court certified the point of division to the Supreme Court under the Act of April 29, 1802 (certificate of division procedure), raising an additional question about whether that certification mechanism still applied after the circuit courts were reorganized by the Act of 1869.

## Issues

1. Whether, after the 1869 reorganization creating circuit judges, the Supreme Court had jurisdiction under the 1802 statute to decide a certified division of opinion between a Supreme Court Justice and the circuit judge sitting as the circuit court.
2. Whether a marine insurance policy is a “maritime contract” within Article III and the federal grant of admiralty and maritime jurisdiction, so that a federal district court sitting in admiralty may entertain a libel in personam to recover for a loss under the policy.

## Decision

- The Court held it had jurisdiction, under the Act of 1802, to decide a certificate of division arising from a disagreement between a Supreme Court Justice and a circuit judge sitting together under the Act of 1869.
- The Court held that a contract of marine insurance is a maritime contract within the admiralty and maritime jurisdiction of the United States.
- The Court answered the certified question in favor of admiralty jurisdiction: the district court, sitting in admiralty, could entertain Dunham’s libel in personam on the policy to recover for the loss.
- The Court stated that admiralty jurisdiction over marine insurance is not exclusive; state courts may also hear such disputes.
- The Court approved Justice Story’s view in *De Lovio v. Boit*, 2 Gall. 398 (C.C.D. Mass. 1815), that marine insurance falls within admiralty contract jurisdiction.

## Legal Principles

- U.S. admiralty and maritime jurisdiction is determined by the Constitution and federal law and is not confined by English statutes or English court-imposed limits that historically narrowed admiralty in England.
- For contracts, admiralty jurisdiction turns on the nature and subject matter of the agreement—whether it relates to maritime service, maritime transactions, or maritime casualties—rather than the place of contracting.
- A marine insurance policy, which allocates risk of loss from maritime perils and casualties, qualifies as a maritime contract and may be sued upon in admiralty by libel in personam.
- The territorial reach of maritime jurisdiction extends beyond the open sea to all navigable waters of the United States or bordering on them, whether salt or fresh, and whether there is a tide or not.
- Federal admiralty jurisdiction over marine insurance is concurrent, not exclusive: state courts retain authority to hear actions on such policies.
- After the Act of 1869, the certificate-of-division procedure in the Act of 1802 remains available when the circuit court judges are divided in opinion, and the Supreme Court may finally decide the certified point.

## Conclusion

The Supreme Court confirmed that it could decide a certified division of opinion from the reorganized circuit court and held that a marine insurance policy is a maritime contract within federal admiralty jurisdiction, permitting an in personam libel in admiralty while leaving state-court jurisdiction concurrent.


New England Mut. Marine Ins. Co. v. Dunham, 78 U.S. (11 Wall.) 1 (1870)