DC Andrews & Company v. United States

124 F. Supp. 362, 129 Ct. Cl. 574, 1954 U.S. Ct. Cl. LEXIS 104
CourtUnited States Court of Claims
DecidedOctober 5, 1954
Docket96-54
StatusPublished
Cited by11 cases

This text of 124 F. Supp. 362 (DC Andrews & Company v. United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
DC Andrews & Company v. United States, 124 F. Supp. 362, 129 Ct. Cl. 574, 1954 U.S. Ct. Cl. LEXIS 104 (cc 1954).

Opinion

LITTLETON, Judge.

Plaintiff sues for $13,764.82 claimed to be due it as brokerage commissions. The United States had chartered certain of its vessels to the India Supply Mission. Incorporated in the charter party was the following provision:

“Commission — Commission or brokerage is due and payable by the *363 Owner in accordance with and to the extent of applicable regulations of the War Shipping Administration to * *

Plaintiff’s suit is based upon the alleged breach by the United States of the obligation to pay such brokerage commissions to plaintiff who acted as cargo broker for the Indian Supply Mission.

Defendant contends that the suit is for the breach of a charter obligation and is therefore cognizable only in the District Courts under the Suits in Admiralty Act. 1

Section 2 of the Suits in Admiralty Act provides:

“In cases where if such vessel were privately owned or operated, or if such cargo were privately owned and possessed, a proceeding in admiralty could be maintained at the time of the commencement of the action herein provided for, a libel in personam may be brought against the United States * *

As stated by defendant, all maritime causes of action against the United States where it owns vessels or where the vessel is operated by or for the United States, fall under the Suits in Admiralty Act. The issue for decision is, therefore, a narrow one, i. e., is the claim stated in the petition a maritime cause of action so that if the vessel were privately owned a proceeding in admiralty could have been maintained on it?

Defendant first contends that because the obligation is expressed in the charter party itself, the claim on it must be maritime in nature and cognizable only in the District Court under the Admiralty Act, citing as authority Matson Navigation Co. v. United States, 284 U.S. 352, 52 S.Ct. 162, 76 L.Ed. 336. In the Matson case, the plaintiff sued on a provision in a so-called requisition charter between itself and the United States, which charter provided that the United States would reimburse plaintiff for any increases in seamen’s wages. The Government contended that the cause of action was maritime and fell within the exclusive jurisdiction of the District Court. Plaintiff insisted that the so-called requisition charter was in reality a mere agreement for the payment of just compensation for requisitioned ships. The Supreme Court held that the document in question was a contract for the operation of a vessel for the United States and that a suit on that contract was a' maritime cause of action. The subject matter of the suit was the wages of seamen who operated the vessel and as such, between private parties, has always been cognizable on the admiralty side of the District Courts. 2 In Field v. United States, 113 F.Supp. 190, 125 Ct.Cl. 559, certiorari denied 346 U.S. 922, 74 S.Ct. 308, it was held that contracts of marine hull insurance are maritime and outside the jurisdiction of the Court of Claims. In this connection, however, it should be remembered that contracts to procure insurance for a vessel are non-maritime and not cognizable in a court of admiralty. Reliance Lumber Co. v. Rothschild, D.C., 127 F. 745.

While it is true, as defendant says, that plaintiff’s rights arise out of a provision in the charter party, this alone does not render the claim a maritime cause of action.

Plaintiff contends that brokerage or agency contracts have always been held to be non-maritime, and that suits for breach of such contracts are not cognizable in courts of admiralty. Plaintiff relies primarily on two cases: The Thames, D.C., 10 F. 848 and Taylor v. Weir, D.C., 110 F. 1005. In The Thames, the admiralty court dismissed a libel by a charter broker on the ground that his services were preliminary leading up to a maritime contract and were not themselves maritime in nature. Taylor v. Weir also involved a libel in personam to recover commissions for services as a *364 broker in negotiating a charter for a ship. In this case, however, the charter party itself contained the provision that the charter’s agent or broker should be paid a commission at a specified rate of freight. The admiralty court dismissed the libel on the ground that the contract to obtain a charter was not a maritime contract, quoting with approval the following language from Zeigler v. The Paola R., C.C., 32 F. 174:

“ ‘Maritime liens are stricti juris, and do not arise on all contracts, made by the owners to result in profit to the ship. The test is to be applied to the subject, and not to the object. It is the subject-matter of the contract which must be maritime, and not the mere object, — the ship. (Italics supplied.)”’

The court also held that the fact that the agreement for commissions constituted a clause in the charter party did not make that agreement a maritime contract. “The question of jurisdiction does not depend upon the form of the contract, but the substance of the undertaking.” 110 F. 1005. See, also, Richard v. Hogarth, D.C., 94 F. 684.

Defendant next says that the cases relied on by plaintiff involve contracts for the services of charter brokers whereas plaintiff was acting as a cargo broker. It appears, however, that the same rule applies to contracts of cargo brokers. In The Crystal Stream, D.C., 25 F. 575, libelant was a freight agent or cargo broker suing in admiralty for compensation for services rendered to the steamer Crystal Stream. Libelant had been employed by the master and charterer to solicit or procure freight and passengers for the steamer. Plaintiff solicited freight and passengers and upon nonpayment of his commission, he sued the ship owners in admiralty. The court held that the action could not be sustained unless the broker’s services were maritime. It was concluded that the broker’s services were not directly connected with the navigation of this ship nor did they directly enable her to earn freight;' that all the maritime services of the ship and all maritime duties and obligations began after the goods had been procured and sent to the ship and after the libelant’s services had ended. The services of the cargo or freight broker were characterized as wholly preliminary to the maritime contract of the ship for the transportation of the cargo that the broker procured and were held to be not essentially different from those of other agents or clerks who might be employed in a permanent office on shore for the transaction of other necessary parts of the freight business. The libel was dismissed as being outside the jurisdiction of the admiralty court. We have no doubt that if the contract for the services of the cargo broker had been embodied in the charter party, the result would have been the same. Other cases holding the contract employing a person as passenger or cargo broker to be non-maritime, are, The Humboldt, D.C., 86 F. 351; The Harvey and Henry, 2 Cir., 86 F. 656.

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124 F. Supp. 362, 129 Ct. Cl. 574, 1954 U.S. Ct. Cl. LEXIS 104, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dc-andrews-company-v-united-states-cc-1954.