Merchants and Sailors Who Are about to Undertake a Return Voyage May Not Be Detained to Testify Regarding Depositions Made by Others.

Merchants and sailors who are about to sail out into the sea cannot be detained to give testimony in any litigations that are to commence at that moment, if their vessel, raft, or barque is ready to sail or is on the sea, provided that they give assurance that they shall return to give such testimony upon returning from the voyage.

Undertaking of a Voyage to Fulfill an Agreement

If a party agreed to undertake a voyage with a shipment of cargo that he had accepted under his control, neither his wife nor any creditor may institute any legal action against him, or demand that he return the cargo that had been entrusted to his care for that voyage, until the party who had entrusted such merchandise to his care shall not have taken possession of such merchandise or some other merchandise that the former had purchased for the money entrusted to him.

Ordinances of King James Relating to the Same Matters

We, James, by the Grace of God, etc., send greetings to our faithful Judge and Governor-General f Barcelona, etc.,

We are well aware of the fact that when merchants of Barcelona undertake a voyage to any place after accepting the responsibility for the care of the cargo of one or several citizens of Barcelona and should die while engaged in such a journey, and their wives take possession of such a cargo and claim it as personal property and use it to pay their own expenses, since such a practice is contrary to all [284] customs, ordain and proclaim that if such an incident should take place in the future, regardless of the claims presented by the wives of the deceased merchants, such cargo shall be returned and surrendered to the party who had entrusted it to the care of the deceased, provided that the owners of such cargo can prove their ownership of such cargo by public documentary evidence or by trustworthy witnesses.

Given at the Court of Barcelona, the second day of August, A. D. 1271.

Ordinances of the Councilmen of Barcelona Regarding Bills of Exchange

Upon the advice of the judge, the Councilmen and Elders of the city of Barcelona with the intent to prevent the great abuses and to avoid all sorts of losses that many people had suffered by using such bills of credit, decree:

Every person in this city, regardless of his status, allegiance, or circumstance, now and in the future, against whom bills of credit are issued by any party, should attend to the person who holds such bills of credit within twenty-four hours after being notified in order to inform the holder of these bills of credit whether he will honor or refuse to accept the responsibility for such bills of credit; if he should refuse to accept such a bill of credit, he shall note the date and the hour such a bill was presented to him on the face of the bill. After attending to this matter in the manner prescribed above, the note shall be returned to the party who had presented it for payment.

If the party to whom a bill of credit was presented for payment shall not reply in twenty-four hours, it can be taken for granted that he had accepted the bill of credit, for no other assumption can be made; the party who had accepted the note shall be responsible for liquidating it within the time mentioned within the note.

Charter of King Alfonso, Issued at Barcelona, on the Twenty-fifth Day of May, A. D. 1432

We herein ordain that any person holding an office of rank, who had purchased any merchandise required in his official capacity, regardless of the fact whether he had actually made such purchase personally or through some other party and should become insolvent, shall be imprisoned personally in the same manner as if he had accepted such merchandise under his care, unless he can prove that the merchandise had been lost owing to ill fate. We further decree that [285] it be forever adhered to in the city of Barcelona that any person who takes anything in the exercise of his office and should fail to satisfy his creditors and is called to appear before judges appointed by Us, shall be declared a bankrupt, immediately cast into prison, and kept in prison in conformity with the laws mentioned above.

Petition of the Consular Court of Barcelona, on the Eighth Day of October, A. D. 1481, Regarding the Jurisdiction of that Court over All Donations for Public Welfare as well as for the Benefit of Widows and Other Unfortunate Persons

In order to relieve the Consular Courts of some matters relating to the various aspects of marine commerce, where these matters are adjusted summarily and instantly, there are often made false and fraudulent legacies as well as other special concessions and agreements to favor certain persons, that is, widows, wards, or other unfortunate persons, which agreements under certain circumstances remove these cases from the jurisdiction of the Consular courts and maneuver such litigation into other courts, and in this manner delay the adjudication of such issues:

The above mentioned Consular Court presents this petition in order that His Majesty the King would at His pleasure order that if any donations, bequests, or other types of agreements of this nature are made to benefit the widows, wards, or unfortunate people are attempted to be withdrawn from the jurisdiction of the Consular courts, they shall be declared invalid if they were withdrawn in order to remove them from the jurisdiction of such courts, and that such cases shall be heard and disposed of in these Consular courts, and that the above should be applicable to all the Consular courts in the principality of Catalonia.

His Majesty has consented to confirm the above petition in principle.

Guarantee of Safe Passage for Those Who Wish to Sail Beyond the Seas or to Return from Beyond the seas

Furthermore, His Majesty the King confirms for himself, his heirs, and successors in substance the contents of this article by his Royal assent, and guarantees safe conduct to all the merchants regardless of their place of origin or territorial jurisdiction, as well as to all other persons, his subjects or foreigners notwithstanding their rank, social status, legal responsibility, condition, or occupation, who may be sailing aboard vessels into the environments of [286] Alexandria or the Sultanate of Babylon, or be returning from there; ⁽¹⁾ and who will be engaged in selling, transporting, and exchanging cargoes, merchandise, and any type of commodities, according to their own disposition with the exception of items and categories of goods forbidden by the general statutes. All the above mentioned parties may proceed to any locality where they may trade more advantageously without any restrictions imposed by His Majesty the King, his officers, or any other persons; they may do this without any fear of displeasure of His Majesty the King, or of any prohibitions that he had issued or might issue, or fear of any punishment that had been imposed or might have been imposed formerly against all those engaged in sailing to the above enumerated territories. It shall not be permissible to demand payment of ransom or use of any type of retribution against the vessels proceeding in that direction; further, in the period of four months from the date of the return of the vessels to Barcelona, they shall be able to proceed to all the lands and possessions of His Majesty the King, safely and peacefully, under his patronage and under his special care and protection; and in these circumstances these vessels shall be free of all burdens and any kind of obstacles and interference, as well as ransom, retributions, payments of any kind, or assessments to the account of His Majesty the King, His functionaries, or any other persons.

His Majesty the King wishes and orders that merchants, regardless of which kingdom they may have come from, when venturing into the environments of Alexandria or the territories of the sultanate, or who are resident there and wish to leave these territories in order to migrate to the southern nations from beyond the seas, may benefit from the guarantees and safe conduct mentioned above even in a situation if they did not arrive aboard the same vessel, and independent of whether the merchants came to reside permanently in the Kingdom, with their goods and effects, or if they just arrived to buy and trade cargo.

His Majesty the King further guarantees that in such cases and in any issues connected with such litigations, He will not order that an investigation be made as to their character and their possessions, nor will He institute any juridical action against them or subject them to any forms of taxation; on the contrary, the King shall protect their property, cargoes, and other possessions, and will on all occasions order that they not be subjected to interrogation or examination, or [287] taxation, or any civil or criminal punishment of ordinary or special nature presently existing or that shall be legislated in the future, as well as any other restrictions applicable to such persons; the above privileges apply to all the prohibitionary statutes of His Majesty the King as well to those that had been decreed by His father the King.

Thus, all persons previously mentioned, individually as well as collectively, for the causes mentioned above or any other reasons, cannot be detained, imprisoned, dispossessed, disturbed, interfered with, or subjected to interrogation because of some accusation made against them, or become objects of any judicial investigation, nor ever be sentenced to any punishment by mutilation. Thus, neither the King's functionaries nor His Majesty the King will ever be able to invoke against these persons or their property any ransom payments, measures of retribution, nor will they be able to make any other demands upon them, force them to give up anything, nor will they be allowed to accept anything from them.

Furthermore, His Majesty the King guarantees to the former persons that He will not issue, or agree to the issuance under any circumstances or necessity, even if such a necessity was of an urgent character, any prohibitions, obstacles, or make any demands of any nature regarding their vessels, cargoes, or crew. Under no circumstances can they be delayed or prevented from undertaking their voyage, but on the contrary, any prohibitions or penalties proclaimed by His Majesty the King and his functionaries cannot apply to them, regardless of the nature of such acts, because such vessels, cargoes, sailors, and other persons together with their possessions and properties must, as has been explained, be allowed to complete their voyage without any interference.

His Majesty Don Ferdinand during His long sojourn in Barcelona, in the Year of Our Lord 1493, ordered in Article 2, that all the alcaldes would render to the parties concerned full assistance in carrying out their decisions in all commercial matters, in accordance with the ordinances of Queen Mary. ⁽²⁾

Ordinances Recently Enacted by the Councilmen of Barcelona Regarding Marine Insurance
 

The following is to be made public to all by the orders of Their [288] Mightiness Anthony Peter de Roca-Crespa, Cavalier, Regent, of the Judiciary, and William Poncgen, Governor-General of the City of Barcelona, each within his own jurisdiction.

The Councilmen and Elders of the latter city have decreed the following:

Due to the fact that formerly there had been issued varied ordinances regarding the risks and dangers involved in marine and commercial insurance, affecting and endangering vessels, cargoes, marine loans, other property, and possessions, which due to the passage of time should be amended, changed, and modified, these former ordinances are superseded by the articles given below. All ordinances of this nature issued before are invalidated by this ordinance, which is binding from this moment in all matters of insurance.

Firstly, these Councilmen and Elders have decreed that all vessels and all other surface craft owned by the subjects of His Majesty the King, as well as those owned by foreigners, regardless of their nationality, as well as all marine loans negotiated for the benefit of these vessels, as well as all cargoes, possessions, and other property carried aboard such vessels to any destination in the world, regardless of their ownership, that is, whether it be the property of the subjects of His Majesty the King or of foreigners, may be insured in Barcelona, the insurable property of the subjects of His Majesty the King, to the amount seven-eighths of its actual value, and the property of foreigners to the extent of three-fourths of its actual value, and that to the actual value of the objects insured may be added the cost of transportation, and the amount of the insurance premium and other expenses.

Subjects of His Majesty the King who insure their vessels, cargoes, marine loans, and other properties shall assume a risk of one-eighth of the amount of insurance, while those who are foreigners shall assume the risk of one-fourth of the amount of coverage.

If anyone violates these ordinances either arbitrarily or unintentionally, any policy that provides a coverage of more than seven-eighths for any subject of His Majesty the King, and more than three-fourths coverage for any foreigner, such policy cannot be held valid and the claim cannot be paid. However, the insurance brokers shall receive the full premium but will be required to pay claims only up to seven-eighths and three-fourths of the coverage and no more, and no one can assess a higher amount of claim against them.

It is to be understood and it is so agreed that if it was impossible to estimate the actual value of the cargo loaded aboard the vessel in [289] Barcelona, the value declared at the time the vessel clears the customs shall be accepted.

If there were any marine loans taken out on the vessel, cargo, merchandise, or any other property, the amount of such loans shall be deducted from the assessed value of the vessel, cargo, merchandise, or other property. After the amount of such loans has been deducted, the insured party shall assume the loss for the remainder, that is, a subject of His Majesty the King, one-eighth of the amount insured, and a foreigner one-fourth of the amount covered, as had been stated above.

It should be understood and it is so ordained that if such vessels belonged to enemies of His Majesty the King, or to friendly people who, however, are in partnership with His enemies, such vessels or cargo cannot be insured in Barcelona either directly by its owners or by some intermediary, even if such vessels possessed iron letters; ⁽³⁾ if these ordinances are violated, the insurance policies issued shall be invalidated, and this matter cannot become a subject of any kind of litigation.

Let it be further understood that an insurance broker, before undertaking to provide such risk coverage for such vessels and loans, should have the vessels assessed by a reliable consul with the aid of the Elders, and on the basis of this estimate, which shall be entered into the policy, there should be deducted one-eighth from the estimated value, if the insured is a subject of His Majesty the King, and one-fourth of the value if such a vessel belongs to a foreigner. These portions of the risk shall be borne by the insured party, as had been stated before, and the question of the full amount of the risk involving the vessel can even be limited and reduced to cover the keel of the vessel only.

In case the insurance coverage of a vessel extended only to the hull of the vessel, and such vessel was wrecked, the parts salvaged from the vessel will be assessed proportionally in paying the claim of the wrecked hull. In such cases the salvage parts and the hull will be evaluated as one unit.

Cargo Shipped from the Other Side of the Straits of Gibraltar to Flanders or the Barbary Coast Cannot Be Insured

[290] Furthermore, the former Councilmen and Elders have ordained that cargo loaded aboard the vessels on the other side of the Straits of Gibraltar, regardless of the location where it was loaded aboard the vessel, and intended for shipment to Flanders, England, or any other territory on the opposite side of the Straits of Gibraltar, or destined for any part of the Barbary Coast, or any other vessels sailing into these waters, cannot be insured in Barcelona, due to the lack of information regarding such vessels and the impossibility of ascertaining the cargo carried actually aboard such vessels; such insurance coverage could not become a basis of any legal action for claims, and all underwriters are hereby released from all responsibilities of any claims.

Excepted from the above restrictions are cargoes belonging to citizens of Barcelona. Such cargoes may be insured, provided that their owners accept the responsibility and liability to the extent of one-eighth of the value of coverage as had been stated above. If the vessels are cargoed on the other side of the Straits, and they are bound for this side, they may be insured at Barcelona, if such vessels do not sail into the Barbary Coast area, under this stipulation, that the party who insured his cargo shall accept the liability of one-eighth of the value, if these parties are the subjects of His Majesty the King, and accept a liability of one-fourth of the claim if they are foreigners, as had been stated before.

All Cargo Bound to or from Barcelona Is Insurable

Furthermore, the Councilmen and Elders of the latter city have decreed that all cargo and merchandise regardless of its caliber taken aboard a vessel in any part of the world and destined for Barcelona, as well as any other types of vessels that carry such cargo, and are encumbered with loans that include the usual marine risks, and all cargo and merchandise loaded at Barcelona, and all vessels carrying such cargo, even if these vessels were owned by enemies of His Majesty the King, as well as all loans encumbering the vessels, may all be insured at Barcelona to the amount of three-fourths of their actual value, of both the goods and the bottoms, but cannot be insured for more than their actual value plus the cost of transportation and insurance premiums.

Cargo Loaded Aboard at Alexandria May Be Insured According to Its Cash Value at Alexandria or in the Amount Estimated by the Parties [291] Concerned.

Furthermore, the Councilmen and Elders taking under advisement the situation that much of the cargo, merchandise, and other goods taken aboard at Alexandria is purchased on credit, and that a great profit is realized by exchanging such shipment while en route for other cargo and goods, and thus the actual value of such shipments cannot be ascertained for the purposes of insurance, have decreed the following: that from this date on, all insurance negotiations, the declaration of value of all cargo and goods taken aboard be stated according to the cash value such shipment had in Alexandria; thus the insured as well as the insurance brokers will be able to reach an understanding and arrive at an honest cash value of such a shipment.

The Degree of Liability of the Insurance Underwriters

Furthermore, the latter Councilmen and Elders decree that in the event the amount of the cargo, merchandise, or other goods aboard the vessel does not correspond to the amount of cargo insured, plus one-eighth, which liability is assumed by the insured if he is a citizen of His Majesty the King, and one-fourth if he is a foreigner, or if the parties concerned cannot negotiate the marine loans, or if the vessels do not undertake the journey, or had failed to return back from a journey, the underwriters in such cases do not receive either a full or partial payment of the premiums, but only to the extent the coverage was effected.

If, however, no cargo had been loaded aboard, or if the marine loans could not be negotiated, or if the vessel had neither left for a voyage nor returned from a voyage, the underwriters under such circumstances are required to refund the insurance premiums that had been paid to them.

No One Can Insure His Shipment Anywhere Else for More Than Seven-eighths of Its Value if He Is a Subject of His Majesty the King, and More Than Three-fourths of its Value If He Is a Foreigner

Furthermore, the latter Councilmen and Elders had decreed that anyone who had insured his vessel and its contents anywhere else may buy insurance in Barcelona only in the amount that he will need to reach the amount of seven-eighths of the maximum coverage possible and allowable for a subject of His Majesty the King, and three-fourths of the coverage allowable for foreigners, since he must assume [292] the liability himself for the remainder of one-eighth of the value of the insurable property.

Similarly, anyone who insures himself in Barcelona will be able to insure himself elsewhere only in the amount necessary to reach the maximum coverage of seven-eighths of the total value and assume the liability for one-eighth of the value himself, if he is a subject of His Majesty the King, since he must always assume a minimum liability of one-eighth of the value of the insured property, and if he is a foreigner only enough to reach the estimated value of three-fourths, since he shall always have to assume liability for one-fourth of the cargo.

In the event the above should be violated, it shall not benefit the insured or harm the underwriter, in conformity with what has been stated above; it cannot be a basis for any legal judgment, and the insurance premium shall be paid to the underwriters. The amount of insurance that had been beyond the sum allowable to be insured shall accrue to the underwriters, that is to say, that this amount shall be taken into consideration when claims are adjusted.

All Insurance Contracts Are Required to be Executed in the Form of a Notarial Act

Furthermore, the latter Councilmen and Elders have decreed that all insurance contracts executed in Barcelona shall be prepared by a notary in form of an official notarial document, and not in form of an ordinary policy, promissory note, or some other type of an agreement of private contractural nature.

If such insurance contracts were entered into in a form of a policy, a promissory note, or other type of agreement of private nature, they shall be unenforcable and invalid in the eyes of the law, and the underwriters cannot be forced to pay any liabilities, nor can such contracts become a basis of any judicial adjudication.

Regardless of the illegality of all such acts, the underwriters, the insured, their agents, and any third parties involved in such transactions shall be fined, each of those who bought such insurance, in the amount of the policy, and each of the underwriters, in the amount of coverage sold, while any agent or third party involved in such transaction shall be fined ten livres.

One-third of the amount of the levied fines shall be taken by the functionary who conducted the hearings in these matters, one-third shall be given to the accuser, and the remaining third shall be set aside for the charitable activities of the city.

Penalties for Violation of These Ordinances

Furthermore, the latter Councilmen and Elders have decreed that any underwriter guilty of violation of any of the above ordinances in any manner whatsoever shall forfeit his office and his property in addition to the penalties prescribed above.

Buyers of Insurance Are Required to Make a Deposition under Oath That the Estimate of the Value of Their Insurable Property Is Truthful

Furthermore, the latter Councilmen and Elders have decreed that those who purchase insurance in their own name or on behalf of some other party, or while acting under the power of attorney, or recommend that someone be insured, are required above all to state under oath that the cargo or other goods insured is real and not fictitious, and that the commodities that they wish to insure belong to them or to the party in whose behalf they are acting, or to their partners or other interested parties who have an investment in this insurable merchandise.

In such insurance contracts they are required to state specifically and accurately, as far as that is possible, all essential facts about the goods being insured, such as weight, quantity, value, and price of the insurable items, and if vessels are being insured, the amount at which such vessels have been evaluated, in conformity with what had been stated previously, and finally, they shall promise that these goods have not and will not be insured somewhere else also. If it should happen that these goods had been or would be insured somewhere else, they must agree to notify the underwriters immediately and shall make a note of this action on the bottom of the page of the insurance contract, in which they will state in what manner they were notified and will name the place where the insurance was purchased, giving the date and the amount of coverage bought.

If the insured failed to make such depositions, and the consuls assert that this particular party concluded an insurance contract, even though such a party knew that such goods had already been insured elsewhere and failed to mention this fact, it should be taken for granted that the underwriters were misled and that the contract was invalid. Nevertheless, in all such circumstances the underwriters shall be allowed to retain the insurance premiums they had been paid.

[294] In such cases of attempted fraud, the insured parties shall pay a fine of one hundred Barcelona livres, of which one-third of the amount shall be retained by the official who conducted these hearings, one-third of the amount shall be given to the party who initiated the accusation, and the remaining one-third of the amount shall be set aside for the charitable purposes of the city.

Oath of Office Required of Insurance Underwriters

Furthermore, the latter Councilmen and Elders have decreed that insurance underwriters must take an oath before undertaking to sell any insurance that the risk liability they are about to underwrite actually exists and is not fictitious, that they are not taking such responsibility in an attempt to defraud under the guise of protection, and that they are not entering into such contracts in the name of other parties.

All Insurance Contracts Written Shall Conform to the Meaning and Intent of the Above Ordinances

Furthermore, the latter Councilmen and Elders have decreed that underwriters and purchasers of insurance should invoke these ordinances in all contracts and abide by them and also promise that in all circumstances they shall be bound by them, that they will in cases under dispute submit the issue to the Consular court and to no other judicial body, and that they renounce all rights to institute litigation in these cases before tribunals that may be partial to their cause. All these matters must be attended to in the manner and procedure believed by the notaries to be most apropos to the insured party.

The Right to Challenge the Jurisdiction of Consular Courts

Furthermore, the latter Councilmen and Elders have decreed, in due consideration of the fact that the purpose of liability insurance is to facilitate commerce, it would be improper that disputes arising from this pursuit should be adjudicated in other courts or by other functionaries and not by marine consuls, and appealed to the Judges of Appeal, who are called together with the Elders for the purpose of adjudicating such issues in conformity with these ordinances and the customs set forth in the Consulate: [295] They have decreed that from this moment no underwriter or purchaser of risk insurance can challenge the jurisdiction of the consular courts, nor be allowed due to his rank or title or any other privilege to take any issue concerned with liability insurance before any other judicial body. If this ordinance is violated, the insured party who appealed to another court, attempting to use some privilege or other reason, will be liable to a fine, to which he had voluntarily agreed when he negotiated the instrument of insurance. He shall also lose all rights to adjudication of this issue, which he had before on the basis of the agreement he reached and which he could use before paying the claim. The insured parties shall be released from all their obligations and will not be required to defend themselves in any legal action brought against them.

If the insured after accepting the claims paid them instituted legal action for additional claims before any but the consular court, under the guise that their rank, status, or some other privilege entitled them to take the case to another court, they shall pay a fine, which they had agreed to at the conclusion of such an agreement and shall be required to refund to the underwriters the amount they had received in claims, and shall be prevented from advancing any other grievances.

If the underwriters should challenge the jurisdiction of the consular court under the pretext that their rank, status, or any other privilege entitles them to other considerations, or should have instituted action in any other court of law, they shall pay the penalty agreed to freely at the time they had concluded an insurance contract, and any action taken against them is automatically allowed, and no attempt shall be permitted to frustrate any such action, in order to be exempt from paying such a fine, nor shall any other attempt to oppose the rights of those insured be allowed. Thus, in this manner they will actually act as their own accusers and subject themselves to the payment of the fine to which they had freely agreed, and they shall also be forced to pay all the claims of the insured party together with all the expenditures the latter suffered in prosecution of that case.

All of the above resolutions shall be rendered more binding by the taking of an oath by the parties concerned and by the relinquishing of the right of appeal to a court that would be partial to their cause, as well as the renouncement of all clauses and stipulations that the notary who had prepared the insurance contract would consider useful and necessary.

The Impropriety of Including of Clauses into the Contract That Would Be in Conflict with the Object of This Ordinance

[296] Furthermore, the latter Councilmen and Elders have decreed that in any insurance contract the introduction or incorporation of any clauses or obligations contrary to this ordinance shall be prohibited, nor shall the words "binding" or "not binding" or "there is," or "there is not," be written into the contract, nor finally, to decide that an insurer who is the subject of His Majesty the King will not bear the one-eighth liability of the insured amount, or one-fourth of the liability of the amount if he is a foreigner. Under no circumstances are any deviations from the meaning and intent of these ordinances allowed; as they were enacted for the public good and for common usage, any attempt to deviate from the above shall render all the instruments of insurance void and nonconsequential.

Punishment of Notaries

Furthermore, the latter Councilmen and Elders have decreed that any notary who had prepared an insurance contract should first of all administer an oath to the underwriters, and then demand that they make a deposition that their liability is actual and that they are not issuing a policy with the view of deceiving or defrauding anyone, and that they are not accepting this risk to pass it on to someone else, because the other underwriters shall accept the liability in their stead; they shall execute all insurance contracts in accordance with the form prescribed by this ordinance and are not allowed to deviate from the wording of the same.

The notaries should insist that the buyers of insurance sign the policy before the underwriters are allowed to affix their signatures. They are forbidden to include any stipulations in any insurance contract and must not allow either party to such a contract to make any stipulations intended to avoid the acceptance of one-eighth of the liability, or one-fourth of the liability by the party purchasing the insurance, as had been stated above.

Any notary guilty of violating these ordinances shall be required to pay damages to both the underwriters and the purchasers of the policy, because he had failed to live up to the obligations expected of him.

Failure to Pay the Premium Invalidates the Policy

Furthermore, the latter Councilmen and Elders have decreed that all insurance policies will be voided and unpayable until the premiums have been paid, and until the underwriters execute and endorse these [297] policies in accordance with the procedure outlined above.

Simultaneous Signing of All Insurance Contracts

Furthermore, the latter Councilmen and Elders have decreed that all signatures of parties who had purchased risk insurance that have been affixed to the insurance policy are to be considered as having been affixed at different dates. Thus, none of the signatories have priority of making claim demands, and no court of law may give cognizance to such a claim.

Risk Insurance Purchased Fraudulently Is Invalid

Furthermore, the latter Councilmen and Elders have decreed that if an agreement had been reached regarding the insuring of vessels, marine loans, cargo, merchandise, or other property, which had been taken aboard and carried to any place outside of Barcelona, and the above shipment had been lost, and at the time of signing of such an agreement by some or all of the insured, the news of the loss of such shipment could have reached Barcelona, the insurance contract shall be declared voided and nonexistent. The underwriters, however, cannot retain such a premium and must refund it to the purchasers of the policy, regardless of any charges that would be made against them; the underwriters cannot be hailed before a tribunal under any pretext in an attempt to force them to assume the liability and to pay the claim, and they cannot be found guilty of any charges.

In order to remove all uncertainty as to the actual date that such information could have been available, the Councilmen and Elders have decreed the following: that if the vessel was lost on this side of the sea, that is, in the waters from which the news of the loss of the vessel could have been sent overland without the necessity of it crossing the sea, the minimum time required will be judged to be at the rate of one mile per hour. Thus, it would have taken as many hours for the news to travel as there are miles separating the two places, that is, the exact location and the time the insured property was lost, and for which the underwriters will be required to pay liability to the insured party at Barcelona.

If the loss of the vessel had taken place in waters from which it will be necessary to send news of its destruction by sea or across the Straits, the time estimated for this information to reach Barcelona will be counted from the time this information had reached this side of the sea; from this point it shall be measured at one mile per hour.

[298] If, however, such information is brought directly to Barcelona across the sea, the time estimated for this information to reach Barcelona shall be from the moment the vessel came in contact with the land or was moored; if, in the opinion of the consuls, enough time had elapsed for this information to have reached the policy buyers before they had signed such an insurance contract, in such a case the insurance contract will be voided, in conformity with what had been previously stated.

If it should happen that the policy buyer knew of the loss of the vessel before he undertook to insure it, he will be fined one hundred Barcelona livres, of which one-third will accrue to his accuser, one-third to the official conducting the hearings, and one-third shall be set aside for the charity fund of the city.
 

Furthermore, the latter Councilmen and Elders have decreed that wheat, oats, vegetables, beans, wine, and olive oil, taken aboard and destined for Barcelona, may be insured at Barcelona, regardless of the above ordinances to the full amount of the value or estimate mutually agreed upon, but only within the wording and meaning conveyed in this ordinance; in all other circumstances all the provisions of the ordinance shall be strictly observed.

Furthermore, the latter Councilmen and Elders have decreed that the underwriters collectively and individually are required to pay all the claims for which they assumed liability, or such part of it as they underwrite in a period of two, three, four, or six months, depending on the distance, counting the time from the moment the vessel reached Barcelona, and notifying the majority or all of the underwriters with the knowledge of the consuls of the verified information about the loss or damage that the vessel or other insured property suffered; all such claims shall be attended to as quickly as the payment of bills of exchange.

If the underwriters advanced some reasons why they are not liable or if such insinuations appeared well-founded to the consuls, in each instance where the information received about the loss or damages is accepted, and if sufficient time had elapsed as had been determined above, and the insured demand payment of their claims, the underwriters shall be required to pay such claims upon demand, regardless [299] of any insinuations that may be made.

If the underwriters would be able to present clear and indisputable proof that the insured should not and cannot be paid any part of the damages asked for, and if the local court determines that these charges are of such nature that the parties insured, who demand payments of claims, should show and prove the injustice of these accusations made by the underwriters, refusing to honor such claims, in such a case when the insured demands payment of the claims, he shall be required to furnish a guarantor (the expenses of this guarantor will be paid by the underwriters and not by the insured party) whose ability to pay the amount in question will be determined by the Consuls, who will also guarantee to each of the insured parties the damages together with all the expenses and costs incurred, as well as interest at two soldinos per livre per year, if within one year from the day of the payment of the claim, the insured parties cannot get a decree from the Consular court to the effect that the claims they had been paid were justly received.

Due to the fact that some non-God-fearing people had accepted payments of claims, even though such insured cargo or merchandise was actually never loaded aboard the vessel, and the vessel actually never undertook the voyage or returned from one, and the marine loans were not negotiated, the guilty party shall be fined two soldinos for every livre of evaluation for each such offense, and in addition shall pay two soldinos per livre for the amount he had insured his shipment or vessels; the third part of this fine, at the rate of two soldinos per livre shall accrue to the consuls and shall be added to the fees of the court; one-third of the amount shall be given to the underwriters, and the remaining third part shall be given to the charity fund of the city or to the fund of the public marine defenders.

It shall not be permissible for anyone who had concluded an insurance agreement and paid the risk premiums with the thought that he would be paid the amount of the insurance purchased without any additional expenses should have to suffer due to some accusations made by the underwriters, which accusations cannot actually prevent payment of any justifiable claims; the Councilmen and Elders had decreed that such accusations of the underwriters shall be set aside; the underwriters shall be ordered to pay the insured all the expenses borne in order to get a judgment for such payment, as well as the payment of all damages, as had been stated before.

When the Insured Unable to Get a Legal Judgment Will Be Required to Refund the Claim Payments

[300] Furthermore, the latter Councilmen and Elders have decreed that in the event the insured were forced to refund the claim payment received due to their inability to get the final decree in accordance with what had been stated above, after returning such a payment each party retains all the rights and legal avenues that may be resorted to in order to resolve the issue if the underwriters shall be required to pay the insurance to the insured. The underwriters shall retain a percentage of the amount and shall not be required to refund this, even if it had been decided that they shall pay upon demand part or all of the claim. The adjustment of such an issue lies within the jurisdiction of the consuls, and in the event an appeal is taken before the judge of appeals, but to no other court whatsoever.

When the Insured Agree to Allow the Amount of the Claim under Dispute to Remain in the Hands of the Underwriters until the Final Disposition of the Case Is Made

Furthermore, the latter Councilmen and Elders have decreed that in the event the consuls have decided that the insured should procure a guarantor, as had been stated above, and the latter fail to comply with such a request, but rather allow the underwriters to retain control of all or part of the money due to them in payment of their claims, and subsequently the Consular court orders that the underwriters shall pay the damages to the insured, regardless of any opposition of the latter, the underwriters shall be forced to pay the insured all the expenses in the amount ascertained by the consuls, with an interest of two soldinos per livre per year, for the entire period of delay of the payment.

In regards to the payment of claims and the interest, the underwriters will be required upon the demand of the insured, after posting a guarantee in court, unless immediately after making the accusations and agreeing to furnish a guarantor, they will deposit an amount equal to the amount due in claims with the court.

The Underwriters May before the Date Due for the Payment of Claims, Prove the Validity of the Accusations They Intend to Make

Furthermore, they have decreed that before the lapse of time when the claims are to be paid, that is, two, three, four, or six months, depending upon the distances involved, the underwriters present and demand that the accusations that they had made in order to prove that they should not be required to pay the claims, and that [301] the issue be examined and proved, they may do so. If the date of the payment of claims had arrived before the issue was adjudicated, the underwriters shall be required to pay all the claims without any further delay and without any regard to the accusations made, in accordance with the statements made above. After they have made these payments, they may, however, pursue this matter.

Time Limitations on Claims Payments

Furthermore, they had decreed that such claim payments shall be made as follows:

In a period of two months, if the vessels were to sail, or the cargo or merchandise was to be shipped and delivered within the territorial boundaries of the Kingdom of Catalonia or the Kingdoms of Valencia, Majorca, Minorca, or Ibiza;

In a period of three months, if the destination was within the territories of the Kingdom of Naples, Sicily, and the Barbary Coast, on this side of the Straits of Gibraltar;

In a period of four months, if the destination was beyond the boundaries of the territories enumerated above, in any direction whatsoever;

In a period of six months, if there is no information available as to the direction the vessel had sailed.

All Insurance Contracts Entered into Prior to the Promulgation of These Ordinances Are Not Subject to These Provisions

Furthermore, the latter Councilmen and Elders have decreed that all kinds of risk insurance bought to insure all kinds of goods, property, vessels, or anything else, and entered into in Barcelona before publication of the above ordinances, regardless of the nature and form of such contracts, shall be binding and valid, and neither these nor other ordinances that were issued subsequently can invalidate any such existing contracts.

However, from the moment this ordinance is proclaimed by a public proclamation at the various places in our city customarily used for such purposes, all the insurance contracts must be entered into in the spirit and the procedure set forth by this ordinance.

Oath Pledged by the Underwriters and the Parties Buying Insurance before the Consuls

[302] Furthermore, the latter Councilmen and Elders have decreed that all consuls who presently administer and will in the future administer this office are forbidden to issue a decree in any insurance litigation before administering an oath to all the underwriters and the parties purchasing marine insurance, that neither the underwriters nor the policy purchasers had entered into any agreement, orally or in writing, that would be contrary to this ordinance. If they had reached an agreement in violation of this ordinance, the terms of such a contract cannot become a basis of any judicial decision.

The latter Councilmen and Elders reserve to themselves the right of interpretation, correction, and amendment of all provisions in such a contract that may appear to them to be ambiguous or dubious, every time they shall consider this action indicated and necessary.

This ordinance was proclaimed by Anthony Strada, the city summoner, on the third day of June, in the Year of Our Lord, 1484.
 

At this point we come to the end of all the ordinances relating to marine insurance that have been lately issued.

1. Area described here includes modern Egypt and Syria and territories immediately adjacent.

2. Alcalde, in Spanish use, a mayor of a town who exercised in addition certain judicial powers.

3. Iron letters, a letter of safe conduct, similar to navicert issued by modern navy.