Daniels v. Atlantic Mutual Insurance

8 Bosw. 266
CourtThe Superior Court of New York City
DecidedJune 1, 1861
StatusPublished

This text of 8 Bosw. 266 (Daniels v. Atlantic Mutual Insurance) is published on Counsel Stack Legal Research, covering The Superior Court of New York City primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Daniels v. Atlantic Mutual Insurance, 8 Bosw. 266 (N.Y. Super. Ct. 1861).

Opinion

By the Court—Hoffman, J.

The ancient and rigorous rule of the maritime law making the wages of seamen dependent upon the performance of the voyage and earning of freight, is unchanged to this day—so far, at least, as that if the vessel and cargo have utterly perished, wages are lost. I refer to Reed v Hussey, (1 Blatchford & Howland, 526,) as a late authority.

But this rule has, from the earliest times, been accompanied and modified by another. If anything was saved of vessel or cargo, it was applied in payment of wages. “ If a nail,” is the strong language of the Oonsolato, “ is saved from the wreck, it shall go to the salary of the mariners.”

The Hanseatic ordinance of 614 directed that if so much of the ship be saved as equals the amount of the wages, the seamen shall be paid the whole amount due them. The ordinance of Rotterdam (2 Magens, 114,) directed the payment of wages out of the relics of the ship; and, by the judgments of Oleron, “ though there should be saved of the ship only a cable or a nail, it is pledged for the payment of wages.”

[274]*274By the ordinance of the French Marine of Louis the Fourteenth, “ if any part of the ship be saved, the sailors hired for the voyage or by the month shall be paid their wages out of what is saved of the wreck; and if there are only goods saved, the sailors shall be paid in proportion to the freight received; and in addition they shall be paid for the days employed by them in saving the wreck and effects shipwrecked.” (Emerigon, 116.)

The leading case of the Neptune, (1 Hagg. Ad. R., 227,) established it as a part of the English Law, that where parts of the vessel are saved by the exertions of the seamen, though no part of the cargo is preserved, the wages of the crew were to be paid out of what is rescued. Lord Stowell rejected the idea that the seamen were thus compensated in the capacity of salvors. The duty of service had continued; the relations under the contracts survived; the authority of the master did not cease at the moment of the wreck, nor the obligation of the crew expire.

The American cases abundantly sustain the rule that the remnants of the vessel must be applied to pay the mariner. They are cited in Mr. Perkins’ note to the Fifth American Edition of Abbott on Shipping, (p. 632, marginal paging.) I refer particularly to Lewis v. The Elizabeth Jane, (Ware’s R., 41,) and The Dawn, (Daveis’ R., 121 ;) and I think the weight of authority is strong to show that they do not take as salvors.

The sailor’s privilege thus adhering to the last relic of the vessel, what is the case when the vessel has utterly perished, but a portion of the cargo has been saved, and freight upon such portions is earned? Justice Stout, in Sheppard v. Taylor, (5 Peters’ U. S. R., 711,) says: “Freight being the earning of the ship in the course of the voyage, it is the natural fund out of which the wages are contemplated to be paid; for though the ship is bound by the lien of wages, the freight is relied on as the fund to discharge it, and it is also relied upon by the master to discharge his personal responsibility. We think, then, that this relation [275]*275between the freight and wages does, by the principles of the maritime law, create a claim or privilege in favor of the seamen to proceed against it under the circumstances of the present case. Here the owner of the ship is also the owner of the cargo. There has been an award allowing the assignees freight, and the owners are insolvent. We can perceive no principle why, in the present case, the seamen may not justly assert a claim on the freight, if the proceeds of the ship are exhausted without satisfying the amount of the wages. Ho authority has been produced against it, and we think it justly deducible from the general doctrines of the maritime law on this subject.”

As early as the case of the Sophia, (1 Gilpin’s R., 77,) Judge Hopkixsox decided, that if any portion of a vessel was saved upon a shipwreck, the crew were entitled to their wages out of it. In the case of the Hercules, (Gilpin, 184,) he gave wages as such.

Poland v. The Brig Spartan, (Ware’s R., 134,) was the case of a libel against the freight and cargo of a vessel for wages. The Oourt held, that the seamen had a lien, as well on the freight as on the vessel. The case arose upon a charter party to the defendants, Quincy and others, who had assigned the share of the cargo belonging to themselves, and the freight of the rest, for the benefit of creditors. The seamen were provided for in certain order of preference. It was held that the freight of the goods consigned to others, and the goods of the charterers, were liable for the wages, and could be reached in admiralty.

In Skolfield v. Potter, (Daveis’ R., 392,) the learned Judge reiterated the doctrine of Poland v. The Spartan. He held, that the freight was hypothecated for the wages, and every part of the freight was liable for the whole wages. Merchandise was bound to the ship for the freight, and the freight to the seamen for their wages. And if owners of the ship are owners of the cargo, the cargo owes freight to the ship, and this freight is pledged for the wages.

[276]*276The Louisa Bertha, (1 Eng. L. and Eq. R., 665,) was a suit by the mate and seamen, prosecuted against the ship and freight, and the claim was resisted by the holders of a bottomry bond. Lushimgtoít said: “The general rule, no doubt, is this—that seamen’s wages are considered a lien on the ship, and are entitled to a priority as against all other claims; as against the owners of the ship the seamen have a perfect right to be paid out of the ship and freight, even if the wages had been earned in two or three previous voyages.

In the case of the Lady Durham, (3 Hagg. Ad. R., 196,) the Court say: “A mariner has no lien on the cargo as cargo. His lien is on the ship and on the freight, as appurtenant to the ship, and so far as the cargo is subject to freight, he may attach it as a security for the freight that may be due.” Whether, if cargo was saved, it could be held to represent the freight, was a question the learned Judge adverted to, but did not decide.

The 13th rule in Admiralty of the United States Courts directs that, in all suits for mariner’s wages, the libelant may proceed against the ship’s freight and master, or against the ship and freight, or against the owner or master alone in personam.

It appears to me entirely clear, that in the case of a vessel wholly destroyed, and cargo saved, the wages attach to the freight of the latter; and I apprehend the better opinion is that the privilege exists as to any part of freight paid upon part of a continuous voyage, as well as upon that resulting from the goods saved at the shipwreck.

The next inquiry is: What is the rule, when there is saved both enough of the ship and enough of the freight to discharge the wages of the mariners? Such is the present case. It is, I believe, entirely undecided in our Maritime Law.

Emerigon discusses the question: “Are the wages to be taken on the freight rather than on the wreck ? A vessel is wrecked; the merchandise and rigging are saved; the [277]*277sailors have a privilege on the freight, and on the vessel, in solido. If the sailors are paid out of the remains of the wreck, there might remain nothing for the insurers.

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