Cambria S. S. Co. v. Pittsburgh S. S. Co.

212 F. 674, 51 L.R.A.N.S. 966, 51 L.R.A (N.S.) 966, 1914 U.S. App. LEXIS 2112
CourtCourt of Appeals for the Sixth Circuit
DecidedJanuary 6, 1914
DocketNo. 2386
StatusPublished
Cited by7 cases

This text of 212 F. 674 (Cambria S. S. Co. v. Pittsburgh S. S. Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cambria S. S. Co. v. Pittsburgh S. S. Co., 212 F. 674, 51 L.R.A.N.S. 966, 51 L.R.A (N.S.) 966, 1914 U.S. App. LEXIS 2112 (6th Cir. 1914).

Opinion

WARRINGTON, Circuit Judge.

The suit upon which this appeal is based grew out of a collision between the steamer Queen City and the steamer John W. Moore in the Detroit river on October 19, 1907. The final decree was entered July 25, 1912. An interlocutory decree had previously been entered, finding that the damages sustained through such collision, by the colliding steamers, by Jerrainy McIntyre, admin-istratrix of the estate of Duncan McIntyre, deceased, and by the St. Paul Fire & Marine Insurance Company, were occasioned through the sole fault of the steamer Edward Y. Townsend, and making the usual reference to a commissioner to take proofs and ascertain and report the damages. The reasons for the finding and order of reference are stated in the opinion of Judge Denison, who presided at the trial (189 Fed. 653); and his opinion is approved and adopted.

May 17, 1912, upon exceptions to the partial report of the commissioner, the damages awarded, to Jerrainy McIntyre, administratrix, were-reduced by Judge Angelí from $6,000 to $4,000, with interest from that date “if such course shall be deemed not inconsistent with law when the decree is entered,” but without fixing the rate of interest. The remaining damages, as ultimately allowed, were fixed by stipulations, with interest from specified dates though no rate was named. In the final decree Judge Sessions fixed the rate at 6 per cent, per annum from such dates “until paid.” And Judge Tuttle, sitting in the same court, has since then in another case reached the conclusion that the rate allowable upon the items entering into such a decree should be 5 .per cent. The Newaygo (D. C.) 205 Fed. 178. It is contended for appellant that the entire interest allowed should have been at the rate prescribed by statute of Michigan, to wit, 5 per cent, per annum; while it is insisted for appellees that the usual rate allowed in cases arising in admiralty is 6 per cent, per annum. Hence no- question is made touch[676]*676ing the right of the trial court either to have allowed or denied interest ; and it must be conceded that it possessed a reasonable discretion in this behalf. See decisions cited in Thompson Towing & Wrecking Ass’n v. McGregor, 207 Fed. 209, at page 221, note, 124 C. C. A. 479 (C. C. A. 6th Cir.). Since it was determined actually to allow interest as part of the ascertained damages “until paid,” it should- be borne in mind that the question concerns the rate that should have been applied both before and upon the decree.

It is apparent that the question did not arise in Judge Denison’s consideration of'the case. And Judge Sessions appears to have fixed the rate at 6 per cent, because Judge Angelí had previously allowed that rate in an unreported case; but Judge Angelí seems to- have entertained doubt in that case, as also in the present case, touching the allowance of a rate in excess of 5 per cent. Concededly there are admiralty decisions in which the rate of 6 per cent, has been distinctly allowed from the date of loss at least until the date of decree. For example: The Aleppo, Fed. Cas. No. 158, 1 Fed. Cas. 342, 347, decided in 1874 by Judge Blatchford, then District Judge; Dyer v. National Steam Nav. Co., Fed. Cas. No. 4,225, 8 Fed. Cas. 207, 210, decided in 1878 by Judge Blatchford when Circuit Judge; The Mary Eveline, Fed. Cas. No. 9,212, 16 Fed. Cas. 981, by Mr. Justice Hunt, sitting as Circuit Justice, decided after conference with Judge Blatchford and with his concurrence on the day following the decision in the Dyer Case; The Oregon (D. C.) 89 Fed. 520, 526. The Dyer Case, supra, with others, was appealed to the Supreme Court and is reported in the name of The Scotland, 105 U. S. 24, 36 (26 L. Ed. 1001), in which Mr. Justice Bradley said: "The rate of interest allowed, 6 per cent, per an-num, was the proper rate' in such a case.” However, in The New York, 175 U. S. 187, 20 Sup. Ct. 67, 44 L. Ed. 126, a District Court decree was involved, which had been reversed in this court (82 Fed. 819, 27 C. C. A. 154), and in which, as appears in the record of the case, Judge Swan had allowed interest on an ascertained amount of damages at the rate of 6 per cent, per annum for a definite period prior to his decree. Upon reversal of the decision of this court, the District Court was directed to enter a decree “in conformity with the opinion of this (the Supreme) court, with interest from July 3, 1896 (the date of the decree allowing 6 per cent, interest as stated), until paid, at the same rate per annum that decrees bear in the courts of the state of Michigan.” 175 U. S. at 210. In the decree entered pursuant to this mandate, it appears that interest was allowed for a time anterior to the decree; but the rate was not stated, and we are unable to discover it in the record. That decree was affirmed by this court (108 Fed. 102, 47 C. C. A. 232) and by the Supreme Court (sub nom. The Conemaugh, 189 U. S. 363, 23 Sup. Ct. 504, 47 L. Ed. 854); and the only question of rate of interest expressly passed upon in these latter decisions was, which of two different statutory rates then existing in Michigan should be allowed on the decree; and the rate of 7 per cent, prescribed as to state judgments and decrees was adjudged to be applicable. It is further to be observed that no interest at all would have been recoverable upon that decree if the court had not expressly allow[677]*677ed it. The Scotland, 118 U. S. 507, 519, 6 Sup. Ct. 1174, 30 L. Ed. 153; Hemmenway v. Fisher, 20 How. 255, 260, 15 L. Ed. 799; Supreme Court Rule 23, Subd. 4, Appendix p. 1, 133 U. S. (32 Sup. Ct. xi); Dewhurst’s Supreme Court Rules, p. 122, Rule 23 as it now stands.

Now, in view of the two rates of interest thus approved in the one instance and adopted in the other by the Supreme Court, what is the duty of this court in the instant case? It may be conceded that the exercise of discretionary power was involved in both instances, that is, through the Supreme Court’s approval of the discretion exercised by the court below in the first, and through the specific exercise by the Supreme Court of its own discretion in adopting the state rate in the second instance. We are disposed to follow the course adopted in the last instance. The first instance amounts to an approval of the usual 6 per cent, rate where there is no statutory rate that can reasonably be applied; while the second in effect adopts the principle of applying prescribed state rates where the conditions will admit of it. The former illustrates the ordinary conditions attending suits respecting collisions or salvage upon the high seas, and the latter the conditions usually growing out of and involved in suits with respect to similar disasters upon the internal navigable waters. It may be, as respects the latter, a rate lower than that fixed for the decree itself was in practical effect approved with reference to the time for which interest was allowed prior to the decree; but that was due to anomalous statutory conditions then prevailing in Michigan, which (in the absence of stipulation) fixed the rate of interest at 5 per cent, on all obligations other than judgments and decrees, and on the latter the rate of 7 per cent. The New York, supra, 108 Fed. 107, 110, 47 C. C. A. 232 (C. C. A. 6th Cir.), affirmed sub nom. The Conemaugh, supra, 189 U. S. at 368 to 370, 23 Sup. Ct. 504, 47 L. Ed. 854.

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212 F. 674, 51 L.R.A.N.S. 966, 51 L.R.A (N.S.) 966, 1914 U.S. App. LEXIS 2112, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cambria-s-s-co-v-pittsburgh-s-s-co-ca6-1914.