Universal Ins. v. The Coast Banker

This is a proceeding in admiralty brought in the District Court of the United States for the District of Oregon, pursuant to 28 U.S.C.A. § 41 . From a final decree entered in said court on July 29, 1941, dismissing the libel, this appeal is taken.

The libel is in rem against the steamship “Coast Banker”, an ocean-going vessel about 260 feet long, owned by the Coast-wise Lines, an Oregon corporation. Both the vessel and the corporation are appellees here.

The Knappton Towboat Company is an Oregon corporation, the owner of the diesel tug “Myrtle”. It had a contract with the Northwestern Electric Company for towing .its barges, and in this contract it assumed the full responsibility for the safety of the barges while they were in its custody. - To protect itself against this liability it took-out a policy of insurance with the Universal Insurance Company, the libellant herein and the appellant here.

On January 16, 1940, the “Myrtle”, with two empty barges of the Northwestern Electric Company in tow on a hawser, was proceeding down the Columbia River. On that day the “Coast Banker” was proceeding up the river, with Captain Horats the pilot in charge. In a dense fog, about…