Tom C. Clark

“ The basis of the decision was that Congress intended the Act to protect the investment of ship owners, and if the latter were prevented from indemnifying themselves from loss of their investment in the ship it would be contrary to the purpose of Congress as well as to the spirit of commercial jurisprudence. ”

“ Unless the owner is afforded an opportunity to provide for such protection, the purpose of Congress to encourage investment in American ships will be just as much thwarted as it would have been had the owner's right to buy insurance protection in The City of Norwich not been recognized. ”

“ Had the owner not purchased liability insurance the claimants could not, under any condition, recover more than the value of the damaged hull if there is no 'privity or knowledge'. The owner's liability insurance is the sole source of the claimants' hope for a recovery beyond the value of the damaged hull. ”