Findlay v. United States

225 F. 337, 139 C.C.A. 207, 1915 U.S. App. LEXIS 2100
CourtCourt of Appeals for the Ninth Circuit
DecidedJuly 12, 1915
DocketNo. 2511
StatusPublished
Cited by5 cases

This text of 225 F. 337 (Findlay v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Findlay v. United States, 225 F. 337, 139 C.C.A. 207, 1915 U.S. App. LEXIS 2100 (9th Cir. 1915).

Opinion

MORROW, Circuit Judge

(after stating the facts as above). [1] 1. When this case on the bond was first heard by the court below the evidence consisted of the bond in suit; its execution and delivery ; the determination by the Acting Secretary of Commerce and Labor that the principal on the bond had incurred penalties amounting to $7,960; the notice of such determination; demand for payment of the sum found due; and the failure to pay. After the case had been submitted the court reached the conclusion that the bond could not, on its face, be sustained as a common-law obligation. The court thereupon upon its own motion opened the case and received evidence over Hie objection of the plaintiff in error of the negotiations and proceedings leading up to1 the giving of the bond for the purpose of interpreting the sense in which the parties understood the terms of the bond. In other words, the court was of opinion that the condition of the bond was open to interpretation, and that, it was its duty, in order to decide upon its meaning, to look not only to the language employed, but to the subject-matter and surrounding circumstances. _ This was in accordance with the rule declared by the Supreme Court in Barreda v. Silsbee, 21 How. 146, 161, 16 L. Ed. 86; Nash v. Towne, 5 Wall. 689, 18 L. Ed. 527; Canal Co. v. Hill, 15 Wall. 94, 21 L. Ed. 64; Mobile & Montgomery R. Co. v. Jurcy, 111 U. S. 584, 592, 4 Sup. Ct. 566, 28 L. Ed. 527. We are of opinion that this evidence was properly admitted.

[2, 3] The court also admitted evidence of the subsequent proceedings in presenting the facts to the Department of Commerce and Labor. This evidence was also objected to by the plaintiffs in error. The bond recited that it was given to insure the payment of such penalties as should be determined by the Department of Commerce and Labor to have been incurred by the master—

“after tlie presentation within a reasonable time by the said master or his agents or attorneys, and the ofiieials of the United States at said Honolulu, of the facts to said department.”

It was manifestly proper for the court to receive evidence concerning the presentation of the facts to the Department of Commerce and Labor for determination. It was a condition of the bond that such facts should be presented, and it was a question for the court to- decide whether the facts had been presented to the Department as provided in the bond. In the letter of the Acting Secretary of the Department of Commerce and Labor, determining the master’s liability to penalties, there were recitals referring to this evidence; but it was also competent for the court to receive evidence showing that the facts had been submitted. Whether all the letters, telegrams, and reports, including’ the report of the grand jury, were admissible in the proceedings before the department we do not decide. That was not a question for the lower court, and it is not a question for this court. We have tio authority to revise the proceedings before the department and determine what evidence it should have received or what evidence it should not have received. The jurisdiction of the court is limited to the question whether the facts had been submitted to the department and a [344]*344determination by the department had been had upon such facts. We find no error in the admission of this evidence.

[4] It is contended by the plaintiffs in error that the bond in suit was given involuntarily, under dur'ess, and without consideration, and is therefore void. This contention is without merit. The British steamship Orteric arrived at the port of Honolulu on April 13, 1911, on a voyage from the foreign ports of Oporto and Lisbon, Portugal, and Gibraltar, the well-known British port on the southern coast of Spain, with about 1,500 steerage passengers. An examination of the vessel was made by two inspectors of the customs under the direction of the Collector of the Customs of that district in accordance with the provisions of section 11 of the act of August 2, 1882 (22 Stat. 186, 190). The inspectors, under date of April 17, 1911, reported to the Collector that the act of Congress had been violated by the master of the vessel in a number of particulars set forth in the report, and thereupon and on the same day the Collector notified the master of the vessel that he was liable to certain penalties for alleged violation of the Passenger Act of 1882, as amended, specifying wherein the act had been violated and the maximum penalties that had been incurred by such violations. The notice called the attention of the master to section 13 of the act relative to the collection of these penalties. The section provides that the penalties imposed by the act should be liens upon the vessel, and such vessel might be libeled therefor in any Circuit or District Court of the United States where such vessel shofild arrive or depart. The notice further informed the master that prior to-instituting proceedings for the enforcement of the penalties, he would be given an opportunity to present any statement he might desire to make, and suggested that whatever statement he desired to make should be made in the form of an affidavit. On April 22, 1911, the agents of the steamship addressed a letter to the Collector of Customs, requesting the Collector to cable to the Secretary of Commerce and Labor at Washington for permission to grant clearance to the steamship upon a satisfactory bond being furnished for the payment of any penalties which might be imposed with respect to the alleged violations of the Passenger Act by the captain, and full particulars regarding the matter to be furnished to the Department of Commerce and Labor for determination of what should be done -in connection therewith. On the same day the agents addressed a letter to the Collector of Customs stating that in view of alleged violation of the Passenger Act of 1882, aggregating penalties in the sum of $10,000, they would furnish' to the Collector an adequate bond in the sum of $20,000 covering the same, providing that the facts concerning such alleged violations should be submitted to the Secretary of Commerce and Labor for determination. In answering the cable sent by the Collector at the request of the agents of the vessel to- the Secretary of Commerce and Labor, the latter replied : “With approval of United States Attorney, clear Orteric fifteen thousand dollar bond.” The bond in suit was thereupon given and approved by the United States Attorney as to form and sureties. There is not the slightest evidence of compulsion on the part of the Collector of Customs, the Secretary of Commerce and Labor, or any [345]*345other officer of the government, in these proceedings. The offer to give the bond was voluntarily made by the agents of the vessel and the acceptance of the offer by the Secretary of Commerce and Labor was at their request, and was manifestly a matter of favor to the agents and to the master of the vessel. The Collector notified the master that he was about to comply with the law and report the case for proceedings to enforce the payment of the penalties. The application of the agents of the vessel to give a bond was their own proposition. Its purpose was to obtain an immediate clearance of the vessel and secure a stay of the legal proceedings until the evidence could be considered and the liability of the master for the penalties determined by the Department of Commerce and Labor. It was not proposed by the officers of the government, who were pursuing the method pointed out by the statute to secure the payment of the penalties.

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Bluebook (online)
225 F. 337, 139 C.C.A. 207, 1915 U.S. App. LEXIS 2100, Counsel Stack Legal Research, https://law.counselstack.com/opinion/findlay-v-united-states-ca9-1915.