Berwind White Coal Co. v. The Kate

56 F. 614, 1893 U.S. Dist. LEXIS 96
CourtDistrict Court, S.D. New York
DecidedMay 27, 1893
StatusPublished
Cited by5 cases

This text of 56 F. 614 (Berwind White Coal Co. v. The Kate) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Berwind White Coal Co. v. The Kate, 56 F. 614, 1893 U.S. Dist. LEXIS 96 (S.D.N.Y. 1893).

Opinion

BROWN, District Judge.

The libelant claims to have liens for cóal supplied to the above-named steamers in November, 1892, all under substantially the same circumstances. The steamers were of foreign registry, belonging to British subjects. During the 12 or 18 months prior to November, 1882, they had been chartered and run by the Brazil Mail Steamship Company, in addition, to some five' other large steamers, which had long been owned and run by that company in its regular line. The company was a New York ■corporation. In February, 1893, it became embarrassed, and failed fó pay its bills. All the coal in question was supplied in New York city upon the order of the U. S. & Brazil Mail Steamship Company under an arrangement made between that company and the libel-ant in’Jude, 1891, under which it was expected that the company would pay the bills within.60 days after the delivery of the coal. [615]*615At that (line the company was not running any chartered. vessels, but its own only. The underala tiding as regards prompt payment was not carried out, and at times the indebtedness of the company to the libelant amounted to some $70,000. This was much re;-dncod, however, at the lime when the company suspended,payment, in February, 1893. '

In June, 1891, when (lie arrangement for the supply of coal was made, it was consented that tin libelant should be at liberty to file its claim of lien against the company’s vessels, and have any benefit that that course might give it, although in some of the correspondence the steamship company denied that, the libelant would thereby acquire any lien. But this consent had no reference to chartered steamers, since no chartered steamers were at that time operated by the company, nor until several months afterwards. Accordingly, the libelant, after June, 1891, regularly filed specifications claiming a lien under the stale law, according to its provisions, within 30 days after tlie delivery of the coal to the steamship company’s vessels respectively. When afterwards the chartered steamers were employed, the libelant, filed its claim of lien against (lie chartered steamers in the same maimer as against those owned by the company.

The chartered steamers were all opta-a ted under what is known as “time charters,'’ the provisions of which required that the charterers should pay for all coal, and certain other expenses ox the voyage. The vice president of the libelant company, who attended to its business in New York, was daily accustomed to be present at the Maritime Exchange; and from the general information then-; acquired, as well as from ihe names of ihe chartered steamers, as. contrasted with the peculiar names of the vessels ownied by ihe Brazil line, he understood that these steamers were chartered upon :ime diariera, requiring the Brazil Company (o pay for the coal. The dealings were always with that company exclusively; never with the owners, nor with their agents in this city, nor with the masters of the steamers. The bills were rendered to the Brazil Mail Bteamship Company only; and no notice either- of (he bills ihemsoives, or of any claim to liens therefor upon the chartered' vessels, was ever given to the master, the owner, or to the» agents in ¡his city, until after the company’s failure. The company alow* was expected to pay the hills; and the specifications of claim were tiled in order to obtain the benefit, of a lieu, provided the state law gawe any: and the only question is, whether, under such circumstances, there is any lien either under the maritime law, or under rke statute of this state.

1. It seems to me clear that there is no lien in these cases under the maritime law. For in each case the dealings of (he libelant were neither with the owner of ihe .ships, nor with the master, nor with any of ihe officers of the ships: but, solely with the Brazil Mail ¡dieaniship Company, who were virtually known to be charterers bound to supply the coal on their own responsibility, and who had contracted with the libelant accordingly. That company had absolutely no authority to bind the ship for coal; and. the libelant in [616]*616effect knew it. The libelant bad no dealings whatever witb any one that had any real, or even any apparent, or implied authority to bind the ship, such as the master or the agent of the ship, but dealt with the charterers only, whom he knew in effect to have no such authority; and there was never any common agreement or understanding that the libelant should have a lien. Under such circumstances no lien arises under the maritime law, even upon a foreign ship. The Stroma, 3 C. C. A. 530, 53 Fed. Rep. 281; The Samuel Marshall, 49 Fed. Rep. 754, affirmed 54 Fed. Rep. 396; The Turgot, 11 Prob. Div. 21; The Aeronaut, 36 Fed. Rep. 497, and eases there cited.

2. A statutory lien is, however, claimed under the law of the state of Hew York, which gives a lien on the vessel upon a debt for supplies “contracted by the master, the owner, charterer, builder, or consignee, or by the agent of either of them within this state.” Laws 1862, c. 482; Laws 1885, c. 273. This claim is made irrespective of the question whether the vessels should be treated as foreign or domestic, under the terms of the charters, whereby it is claimed that the charterers became owners pro hac vice. -

The charters in these cases were of a somewhat mixed character. The fiction of regarding the charterers as owners pro hac vice, whether strictly applicable to these cases or not, does not seem to me to furnish any aid to the solution of the question here presented. For the difficulty with the libelant’s case is that the libelant’s representative voluntarily dealt with the charterers alone, whom he knew in effect to have no authority to bind the ship for coal; and the obligations of good faith, therefore, do not permit any lien in such a case. ' The state statute cannot be reasonably construed as designing to create what would virtually amount to a confiscation of the property of one man to pay the debt of another, not only without any express or implied authority of the formerj but contrary to his express and known stipulation. Stephenson v. The Francis, 21 Fed. Rep. 715, 726. If that result was really intended by the state statute, the act would be unconstitutional and void in its application to commercial and maritime transactions, as an unreasonable and unjust interference' with commerce, and as imposing an unjust burden on ships as the instruments of commerce, beyond the power of state authority. Henderson v. The Mayor, 92 U. S. 259, 273. And see Harman v. Chicago, 147 U. S. 396, 13 Sup. Ct. Rep. 306.

I have said that Mr. Ilerwind knew in effect that the steamship company had no authority to bind the chartered vessels for coal. This is necessarily to be inferred, not only from his knowledge of facts sufficient to put him upon inquiry, but because, notwithstanding his testimony that as to various particulars asked of him, he had no positive knowledge, yet ho does nevertheless stab; explicitly that he understood these vessels, to have been chartered by the steamship company on time charters, and that the charterers were to pay for the coal; and his manner in giving this testimony added much to the persuasive force of those ' explicit statements, and leaves no doubt that he virtually and in effect [617]*617knew that the company, and not the owners, were to supply the coal. He says:

"Answer.

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Bluebook (online)
56 F. 614, 1893 U.S. Dist. LEXIS 96, Counsel Stack Legal Research, https://law.counselstack.com/opinion/berwind-white-coal-co-v-the-kate-nysd-1893.