Black Diamond Coal-Min. Co. v. The H. C. Grady

87 F. 232, 1898 U.S. Dist. LEXIS 23
CourtDistrict Court, N.D. California
DecidedMarch 2, 1898
DocketNo. 11,369
StatusPublished
Cited by7 cases

This text of 87 F. 232 (Black Diamond Coal-Min. Co. v. The H. C. Grady) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Black Diamond Coal-Min. Co. v. The H. C. Grady, 87 F. 232, 1898 U.S. Dist. LEXIS 23 (N.D. Cal. 1898).

Opinion

DE HAVEN, District Judge.

Independent libels were filed by various persons against the steamer II. G. Grady, for supplies furnished in this state for its use, and for work done and materials furnished in this state, for its repair and equipment, and for services rendered on board said steamer. These actions were, by order of the court, consolidated and tried at the same time. Pred B. Strong appeared in the action, and filed a libel of intervention, making answer to the different libels filed, and further asking that he be given judgment against the proceeds of the sale of the steamer, for the sum of $2,750 and legal interest on that sum from the 16th day of July, 1807. In his libel of intervention, he alleges that the steamer was on July 16, 1897, sold by him to W. D. Newhouse, James B. Brooks, Nathan Crocker, J. B. Tilley, and Edward Loughery, for the sum of $3,750,- — $1,000 to be paid on her delivery to the purchasers,' and the balance, of $2,750, to be paid within 60 days thereafter; and that he "then and there delivered said vessel to said purchasers, and retained the legal title thereto, as security for the payment of said1 purchase price,” the purchasers agreeing to keep her free from all liens and incumbrances, until such balance was paid. In another part of his libel of intervention it is alleged, in substance, that the said transaction between the intervener and (he purchasers of the steamer constituted a mortgage. This latter allegation, however, is only the: statement of a conclusion of law, and the question whether such transaction was a conditional sale or a mortgage is to be determined from the essential nature of the agreement itself, as disclosed by the evi-. deuce. ■

What was the agreement? It is not in writing, but there is no-real ■ conflict in the evidence as to its terms. The intervener, Strong, was on July 16, 1897, the owner of the H. C. Grady; and on that day he made a verbal contract to sell her-to Nathan Crocker and James B. Brooks, for the sum of $3,750, the purchasers to have immediate possession. One thousand dollars of the purchase price was paid by the vendees at the time of the delivery of the vessel to them, and the re-‘ maining $2,750 was to be paid within 60 days thereafter. Strong retained the legal title, and I think it sufficiently appears from-the evidence that, under the agreement, the legal title of the steamer was not: to be transferred until the paymeiit of the balance due upon the contract of purchase; and it was also agreed that the purchasers'were, at their own expense, to make such repairs and'changes in the construction and equipment' of the steamer as they might deem necessary, and were to permit no liens to be filed against her while in their [234]*234possession, and prior to the time when they should make final payment on account of the purchase price, and Messrs. Crocker & Brooks subsequently gave to said Strong a bond to secure performance of their agreement in this respect. Strong was a resident of Portland, Or., and, prior to her delivery to the purchasers under this agreement, the steamer was duly registered in the office of the collector of customs for that district, by the said Strong, as owner; and one James E. Denny was appointed by him as her master, and he was instructed by Strong, in effect, to look after his interests, and see that no bills were incurred against the steamer until she was fully paid for. Denny was also the agent of Crocker & Brooks, and acted for them in the negotiation concerning the purchase and delivery of the steamer. After Strong parted with her possession, under the agreement above stated, the steamer was brought to this state, and from the time of her arrival here until some time in September, 1897, was employed by Crocker & Brooks and others, who seem to have made some agreement with them for interests in the steamer, in carrying passengers and freight between San Francisco and different places on the Sacramento river; and, during the time while she was thus in the possession of Crocker & Brooks, supplies were furnished to the steamer by certain of the libelants; and materials furnished for her use, and repairs made upon her, and services rendered on board, by other libelants.

1. In my opinion, the contract between the. intervener, Strong, and Crocker & Brooks, and under which possession of the steamer was delivered to the latter, was a conditional sale; and the nature of the contract is not changed by the fact that Strong may have believed that he held only a mortgage on the steamer for the balance of the purchase price, and that he expressed such opinion when giving his testimony in this case. The court is not bound by the mere opinion of a party or witness in relation to the legal effect of a contract. It is sometimes difficult to determine whether, in a given case, the parties intended to make a completed. sale, the vendor reserving or being given a mere lien on the property for the price, or whether the transaction was intended as a sale upon condition of payment of the purchase price. Each case must depend upon its own facts. In this case it is clear from the evidence that, under the agreement, the legal title to the steamer was to remain in Strong until the payment of the balance of the purchase price, and therefore payment of such balance was a condition precedent to the right of the vendees to demand a transfer of the title to the steamer.. The legal effect of such an agreement is that the sale is not absolute, but conditional, and payment of the entire purchase price is essential in order to pass the legal title. This constitutes a sale upon condition. Harkness v. Russell, 118 U. S. 663, 7 Sup. Ct. 51; Coggill v. Railroad Co., 3 Gray, 545; Strong v. Taylor, 2 Hill, 326; Cole v. Mann, 62 N. Y. 1; Ballard v. Burgett, 40 N. Y. 314.

2. The libels of the Black Diamond Goal-Mining Company, Meyer & Akmann, H. P. Christie, and C. J. Sbarbaro may be considered together. That of H. P. Christie is for materials furnished and used by him in making certain repairs upon the steamer, and for labor performed by him in making such repairs. The materials were furnished [235]*235and repairs made at the request of Captain Denny, the master of the vessel. The remaining libels referred to are for supplies furnished. The evidence shows that the supplies were also furnished for the use of the steamer upon the order of Oapt. Denny. Neither of the libel-ants made any inquiry in relation to the ownership of the steamer, or as to whether she was being operated by any person other than her owner.

It is claimed by the intervener, Strong, that, under these circumstances, the libelants are not entitled to enforce a lien against the steamer. I do not think this contention can be sustained. The person upon whose order the supplies were furnished, and repairs made, was the master of the steamer, duly appointed such by the said Strong, her registered legal owner. Strong, as before stated, was and is a resident of Portland, Or., and the supplies were furnished for the use of the steamer, and the repairs made upon her, in San Francisco. It is the rule of the general maritime law that the master, in the absence of the owner, has authority in a foreign port to bind his owners for necessary repairs and supplies. 2 Pars. Shipp. 6 Adm. p. 8; Bliss v. Ropes, 9 Allen, 339. When these supplies were furnished, and repairs made to the steamer H. O.

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Bluebook (online)
87 F. 232, 1898 U.S. Dist. LEXIS 23, Counsel Stack Legal Research, https://law.counselstack.com/opinion/black-diamond-coal-min-co-v-the-h-c-grady-cand-1898.