Corp. of Royal Exchange Assurance v. United States

75 F.2d 478, 1935 U.S. App. LEXIS 2968, 1935 A.M.C. 278
Court of Appeals for the Second Circuit·Decided January 14, 1935·No. No. 190·Published·Cited by 14 cases

Opinion

CHASE, Circuit Judge.

Both of these suits were brought under the amendment of 1932 to the Suits in Ad[479] miralty Act (46 USCA § 745). Exceptions to the original libels were sustained, and, after the libels were amended, the same ruling was made, and they were dismissed.

The libelant, an insurer of cargo, is seeking to recover, as assignee of those entitled to delivery, for the nondelivery of 480 barrels of wine and 3,883 pieces of lumber laden on the steamship West Aleta at San Francisco for transportation to Cardiff, Wales, The steamship was owned by the United States and operated by the United States Shipping Board Emergency Fleet Corporation, whose name was subsequently changed to United States Shipping Board Merchant Fleet Corporation, and as such it is the respondent in one of these suits. As the libels are in all essentials identical in both suits and the issue is the same, we will treat the actions as one for the purposes of this appeal.

The West Aleta was a merchant vessel engaged in the common carriage of goods, She sailed from San Francisco on January 6, 1920, with this and other cargo of unknown quantity of which a part was evidently additional wine and lumber and was con-ligned to Hamburg, Germany, and Amsterdam, Holland. She proceeded by a route common both to a voyage to Cardiff and to Hamburg and Amsterdam to a point in the Atlantic from which the direct route to Cardiff was by way of Bristol Channel, but, instead of taking that route, elected to proceed toward Hamburg and Amsterdam by way of the English Channel and stranded on February 12, 1920, on Tershelling Island. If she had proceeded directly by way of Bristol Channel to Cardiff, it is agreed that she would have delivered the wine and lumber there on February 10, 1920, two days before she stranded. It is alleged and not denied that, on the route she was taking when the strand occurred, she could not have reached Cardiff until after February 18, 1920.

The importance of these dates is due to the fact that suit was first brought by the libglant against the United States Shipping Board Emergency Fleet Corporation in the Supreme Court of the state of New York on February 17,1926, and that suit was removed to the District Court for the Southern District of New York where it was dismissed on February 24, 1930, not for lack of prosecution, but as contrary to the provisions of the Suits in Admiralty Act. The present suits, prosecuted by virtue of the amendment of 1932 to the Suits in Admiralty Act (46 USCA § 745) can be maintained only if the cause of action so revived accrued within six years of the time when suit was brought in the state court. Only the first and third causes of action to recover for nondelivery of cargo are now relied on. The other causes of action based on alleged deviation, and the appellant has abandoned them.

On February 18, 1920, a salvage contract was made with a salvor by representatives of the respondents. At that time about 600 tons of cargo had been salved and placed in storage ashore.

Jt is agreed that: “During the entire course of the salvage operations 15,152 casks 0f wine were salved and taken ashore of which 9,873 casks were delivered in Holland to consignees, 4,179 casks were shipped to consignees at various places, and 1,100 casks, the ownership of which could not be established, were sold at Amsterdam; also, 1,608 pieces of lumber were salved" of which 182 Pieces were used during the course of the salvage operations, and 1,462 pieces, the ownership of which could not be established, were sold in Holland.” It is further agreed that all things done in the salvage of the car- §° and the disposition made of it were reasonable and proper under the circumstances and done in good faith. The bills of lading under which these goods were shipped contained broad provisions respecting a choice °t- r°nte by the ship, and, though it seems to bave been at least tacitly understood by the Pities that she did exceed her liberties to deviate, we do not now stop to inquire whether a breach of contract by deviation §'ave rise to a cause of aciion for nondelivery o£ ear8’° 011 I ebruary 10, 1920, when^ she would have delivered it at Cardiff by direct rou^e to that port.

None of the wine or lumber consigned to the libelant’s assignors was ever delivered, None of it could be identified, after the ship stranded, as a part of the shipment except ten barrels of wine. Although the rcspondeld; bad the right, and^ the correlative duty (see Gans Steamship Line v. Wilhelmsen [C. C. A.] 275 F. 254) to transship these ten barre^s wine, they were sold in Holland. The proceeds of the sale, which included what was eah-ed Share-blank casks, were paid over to representatives of the consignees, but °^her than that the goods consigned to Cardiff beeame a total loss to tIlc consignees,

Since the parties have agreed that the salvage operations were properly conducted, it follows that solely because of the stranding it became impossible to identify and deliver any part of this cargo except the ten barrels [480] of wine. As to that portion of the cargo there has been an acceptance of the proceeds of the salvage and sale, and the parties have agreed that the disposition made of it was-“reasonable and proper in the circumstances,” which we take to mean that no right to recover for failure to deliver those ten barrels apart from the-failure to deliver the remainder of the shipment is now claimed, and they will be disregarded in what follows..

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Corp. of Royal Exchange Assurance v. United States, 75 F.2d 478, 1935 U.S. App. LEXIS 2968, 1935 A.M.C. 278 (2d Cir. 1935).

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