Deppe v. Lufkin

31 F. Supp. 323, 1940 U.S. Dist. LEXIS 3589
CourtDistrict Court, D. Massachusetts
DecidedJanuary 23, 1940
DocketNo. 5313
StatusPublished

This text of 31 F. Supp. 323 (Deppe v. Lufkin) is published on Counsel Stack Legal Research, covering District Court, D. Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Deppe v. Lufkin, 31 F. Supp. 323, 1940 U.S. Dist. LEXIS 3589 (D. Mass. 1940).

Opinion

McLELLAN, District Judge.

This action of contract was begun in 1932. The original plaintiff, Armement Deppe, a Belgian corporation, was the owner of the S. S. Louvain, which in August, 1926, came into the port of Boston. By amendment, Furness, Withy & Co., Ltd., agent of the original plaintiff, was added as party plaintiff. The original defendant, who was Collector of Customs, died in 1934 and later the executrix of his estate was substituted as defendant. Though there are now two plaintiffs, Armement Deppe, the owner of the vessel, and Furness, Withy & Co., Ltd., agent for the owner, the parties have stipulated that “if the action can be maintained by either of the parties plaintiff, the second plaintiff * * * is the proper plaintiff.”

[325]*325Accordingly, the first four counts of the declaration, which relate to the owner, may be disregarded. The fifth count relates to the plaintiff Furness, Withy & Co., Ltd., a British corporation having a usual place of business in Boston, and agent for the S. S. Louvain, which as heretofore stated was owned by the other plaintiff. This fifth count alleges in substance and I find that in 1926, the Belgian Steamship Louvain arrived in Boston from Antwerp and that upon examination by an Immigration Inspector, eleven of the crew were found by him not to be bona fide seamen, and the master was ordered to detain these men on board. Four of them having escaped, fines aggregating $4,000 Were imposed upon Furness, Withy & Co., Ltd., as agent of the vessel. It is alleged that these fines were imposed improperly upon the plaintiff since it had not been served with notice to detain the men. It is the fact that such a notice addressed to the “owner, agent, consignee, master or officer in charge” of the vessel was served only upon the master. Though the persons involved did not then know it, this, as I shall conclude in its proper place, was fatal to the validity of the fine imposed upon the plaintiff. The declaration goes on to state that the “fines were paid by Furness, Withy & Co., Ltd., under protest and by reason of duress” and it is the equivalent of these fines which this plaintiff (hereafter called the plaintiff) seeks to recover. The case was tried on January 3, 1940, upon a “statement of facts agreed upon” which are incorporated herein by reference as a portion of these findings of fact, and upon certain records of the Department of Labor or of the office of the Collector of Customs.

It can serve no useful purpose to state at length the contents of the “Statement of Facts Agreed upon.” Such statement discloses, as heretofore found, that while notice to detain these men was addressed among others to the owner, agent and master of the ship, it was served only on the master. Thereafter, four of the men escaped and the Acting Commission of Immigration sent the plaintiff as agent for the vessel a notice of liability for fine for failure to detain them and offering the plaintiff an opportunity for a hearing “as to whether” fines “should be imposed.” At this time the vessel was in the port of Boston and desirous of obtaining clearance in order to sail therefrom and there was on file with the Collector of Customs a $50,000 bond in Which H. L. Porter was the principal obligor, the American Surety Company the surety, and the United States of America was the obligee, reciting that certain vessels assigned to the above principal “are expected to enter at and clear from the port of Boston” and, as the parties have agreed, conditioned to pay, among other things, “all immigration fines.” An inspection of a copy of this bond which was adduced in evidence shows that the instrument was under seal and that the representative capacity of H. L. Porter the principal obligor is not there disclosed. He was, however, in fact the plaintiff’s manager. It is also agreed and I find that “as a condition to permitting the vessel to clear port, the defendant Collector of Customs made a charge against this bond to secure the $4,000 of fines. After this charge was made, the vessel was given clearance and sailed.” Thereafter, according to the “Statement of Facts Agreed upon”, the plaintiff wrote the Secretary of the Treasury, requesting that the fines be not imposed and gave in substance as its reason that compliance with the notice of detention was impracticable. (The statute makes detention necessary irrespective of due care.) The reply of the Secretary of the Treasury, dated September 20, 1926, and addressed to the Commissioner of Immigration in Boston, recommended that the “penalty * * * be imposed.” An examination of the files of the U. S. Department of Labor indicates that the fines were imposed in October, 1926, and I so find. See Pink Record and Schedule of “Immigration Fines.” While the foregoing shows that the plaintiff protested against the imposition of the fines, upon the untenable ground that the escapes were unavoidable, I am unable to treat this evidence as requiring a finding that the plaintiff paid the fines under protest.

Thereafter, demand for payment was made on the plaintiff “by the Collector of Customs and the fine was paid” by the plaintiff. “At the time of the payment, the bond above referred to was still on file and still charged with the fine. The $4,000 was thereafter covered into the Treasury of the United States.” If the expression that the bond was “still charged with the fine” means anything more than that a book entry was made somewhere to that effect, the evidence does not disclose it and the burden of proof is upon the plaintiff to show that anything more than this was done.

[326]*326Basing my conclusions of -fact upon the agreed facts and the immigration record, if any further question of fact, as opposed to a conclusion of law is here involved, I find that the plaintiff’s payment of the fines was not the result of duress and that it was not made under protest.

Perhaps I should add that no claim was made that the fines were paid under a mistake of fact and that there was no mistake of fact. If there was any mistake, it was one of law, and no such mistake is urged as a ground for recovery.

In accordance with the plaintiff’s requests numbered respectively 1 and 2, I rule that upon the agreed facts there was no basis for imposing fines aggregating Four Thousand Dollars ($4,000) on Furness, Withy & Co., Ltd., the agent, or on Armement Deppe, the ship-owner.

I may add that the reason on which this ruling is based is that the notice to detain the seamen, though addressed to the agent and owner among others, was not served upon either of them. See Comphgnie Generate Transatlantique v. Elting, Collector of Customs, 298 U.S. 217, 56 S.Ct. 770, 80 L.Ed. 1151, decided in 1936 long after the controversy in the case at bar arose.

The plaintiff’s request numbered 3 that the payment of the fines “constituted as a matter of law, payment under duress, which may be recovered,” is denied. Upon the agreed facts incorporated into the foregoing findings of fact and upon other facts established by the evidence it appears that the plaintiff sought to avoid the imposition of fines upon a ground which was not tenable. But the payment of the fines was voluntary. It is needless to discuss whether the payment was so clearly voluntary that a formal protest would have been insufficient to permit treating it as involuntary.1 As heretofore found, there was no such protest, formal or informal.

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Bluebook (online)
31 F. Supp. 323, 1940 U.S. Dist. LEXIS 3589, Counsel Stack Legal Research, https://law.counselstack.com/opinion/deppe-v-lufkin-mad-1940.