Asiatic Petroleum Corp. v. Italia Societa Anonima Di Navigazione

119 F.2d 610, 1941 U.S. App. LEXIS 3797, 1941 A.M.C. 689
CourtCourt of Appeals for the Third Circuit
DecidedApril 14, 1941
Docket7536
StatusPublished
Cited by13 cases

This text of 119 F.2d 610 (Asiatic Petroleum Corp. v. Italia Societa Anonima Di Navigazione) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Asiatic Petroleum Corp. v. Italia Societa Anonima Di Navigazione, 119 F.2d 610, 1941 U.S. App. LEXIS 3797, 1941 A.M.C. 689 (3d Cir. 1941).

Opinion

BIGGS, Circuit Judge.

This is a suit in admiralty in personam for breach of contract brought by tlie libellant, Asiatic Petroleum Corporation, a Delaware corporation, against “Italia” Societa Anónima Di Navigazione, an Italian corporation, pursuant to Rule 2 oí the Admiralty Rules of the Supreme Court, 28 U.S.C.A. following section 723. The libel contains a clause of foreign attachment under which attachment was made of the S. S. Belvedere lying in the Port of Philadelphia.

The facts leading up to this and other suits are as follows. Between May 5 and May 25, 1940, the libellant, Asiatic Petroleum Corporation sold and delivered to the respondent oil bunkers for certain of the respondent’s ships at the Port of New York for agreed sums in excess of $80,000. Be *612 tween May 7 and June 10, 1940, the Asiatic Petroleum Company, Limited, of London, England, a British corporation, the libel-lant’s assignor, sold and delivered certain other oil bunkers for use by other vessels of the respondent for an agreed price in excess of $57,000. The total price of all oil delivered was in excess of $137,000. All the oil was sold pursuant to an agreement made by the British company with the Italian company. On May 31, 1940, prior to the declaration of war between the Kingdom of Italy and the United Kingdom of Great Britain, the British company assigned to the Delaware company, the libel-lant, all of its rights in the contract, notifying the Italian company of the assignment. No payment has been made for the oil though demand for payment has been made.

On June 14, 1940, the libellant brought suit in admiralty in personam with a clause of foreign attachment in the District of New Jersey (which we will refer to as the New Jersey suit) against the respondent to recover $140,638.01, there being included in this suit one lot of oil not involved in the suit at bar. Under the foreign attachment issued in the New Jersey suit the steamships Alberta, Arsa and Aussa, owned by the respondent, were attached.

On June 15, 1940, G. W. Haight, the resident counsel of the libellant, telephoned to the manager of the respondent in New York City, I. E. Verrando, and discussed payment of the claim and the possibility that the respondent’s ships had been requisitioned by the Italian government. Mr. Haight in an affidavit filed in this proceeding stated that Mr. Verrando told him that some weeks prior thereto that he (Verrando) had recommended to his company that the vessels be requisitioned and likewise that he thought this had been done. Mr. Verrando, in his counter-affidavit, denied making any statement that he understood that the vessels had been requisitioned and stated that he told Mr. Haight at that time that he could not say whether or not the vessels had been requisitioned. Mr. Verrando also stated in his affidavit that the ships had not been requisitioned. The suit at bar was commenced in the Eastern District of Pennsylvania on June 17, 1940 also to recover the price of the oil. On the same day upon process issued out of the District Court for the Eastern District of Pennsylvania, the libellant, as we have already stated, attached the steamship Belvedere.

The respondent on July 5th appeared specially in the suit at bar and filed a motion to dismiss the libel and dissolve the attachment. In its motion the respondent recited the attachment of the steamships Alberta, Arsa and Aussa in the New Jersey suit and averred that these three ships possessed a value of more than $250,000 each; that the libellant had also attached further vessels of the respondent, viz., the steamship Clara at Savannah, Georgia, and the steamship Leme at Astoria, Oregon. The respondent contended that by reason of these facts the attachment of the S. S. Belvedere in the case at bar was without legal justification. On July 25, 1940, the respondent appeared specially in the district of New Jersey and excepted to the libel on the ground that the libellant was not the real party in interest and therefore not entitled to maintain its suit, alleging that the real party in interest was the British company. The respondent also alleged as additional grounds for dismissing the libel in the New Jersey case that neither the British corporation nor its as-signee, the libellant, was entitled to maintain the suit because Great Britain and Italy were at war and for that reason the respondent was prohibited by Italian law from making any payment and, since the contract to supply oil was between British and Italian nationals, calling for payment in London, the New Jersey court should not assume jurisdiction. No copy of the contract is in the record before us.

In the suits in the Districts of Oregon and Georgia the respondent also appeared specially and moved to dismiss the libels upon the grounds asserted in the suit at bar. These motions have been denied.

In no jurisdiction has the respondent appeared generally or given bond for the release of any of the ships. From the affidavits filed in this proceeding on behalf of the respondent it appears that the value of the three ships seized in New Jersey is in excess of $250,000 each. From counter-affidavits filed on behalf of the libellant it might be concluded that while the vessels have a present putative value of $250,000 each this value is based upon an ability freely to use or dispose of vessels now nearing obsolescence which might be subject to capture if used on high seas even with change of registry. 1

*613 The court below dismissed the libel and vacated the attachment, finding as a fact that the libellant had sufficient security without recourse to the present libel and attachment, stating, “ * * * the attachment of the Steamship ‘Belvedere’ at Philadelphia was not necessary to due protection of the interests and rights of the Libel-lant * * *, and said attachment and suit represent unnecessary litigation which this Court should not be asked to undertake. The Libellant therefore has unnecessarily invoked the jurisdiction of this Court which it is not entitled to do.” The appeal at bar followed.

The retention of jurisdiction of a suit in admiralty between foreign citizens is within the discretion of a district court and the exercise of its discretion in this regard may not be disturbed unless abused. Charter Shipping Co. v. Bowring, etc., 281 U.S. 515, 517, 50 S.Ct. 400, 74 L.Ed. 1008; The Belgenland, 114 U.S. 355, 368, 5 S.Ct. 860, 29 L.Ed. 152; The Maggie Hammond v. Morland, 9 Wall. 435, 437, 19 L.Ed. 772. The libellant, however, is a citizen of the United States and supplied over 60,000 net barrels of the oil. The rights of the parties may be measured by the assignment and by the terms of the contract between the Italian and the British companies. It may be the case that the rights of the citizen rise no higher than that of its assignor and it may maintain the suit at bar only within the discretion of the court below. For possible analogy see The Tricolor, D.C., 1 F.Supp. 934, 936; Wittig v. Canada S. S. Lines, Ltd., D.C., 59 F.2d 428; The Eemdyjk, D.C., 286 F. 385; Goldman v. Furness, Withy & Co., D.C., 101 F. 467; Chubb v. Hamburg-American Packet Co., D.C., 39 F. 431.

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Bluebook (online)
119 F.2d 610, 1941 U.S. App. LEXIS 3797, 1941 A.M.C. 689, Counsel Stack Legal Research, https://law.counselstack.com/opinion/asiatic-petroleum-corp-v-italia-societa-anonima-di-navigazione-ca3-1941.