Fuhr v. Newfoundland-St. Lawrence Shipping Ltd.

24 F.R.D. 9, 2 Fed. R. Serv. 2d 613, 1959 U.S. Dist. LEXIS 4158
CourtDistrict Court, S.D. New York
DecidedJune 1, 1959
StatusPublished
Cited by9 cases

This text of 24 F.R.D. 9 (Fuhr v. Newfoundland-St. Lawrence Shipping Ltd.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fuhr v. Newfoundland-St. Lawrence Shipping Ltd., 24 F.R.D. 9, 2 Fed. R. Serv. 2d 613, 1959 U.S. Dist. LEXIS 4158 (S.D.N.Y. 1959).

Opinion

THOMAS F. MURPHY, District Judge.

This is a claim, tried to the court by agreement of counsel, by an alien seaman against a Panamanian steamship company for overtime and statutory extra wages under Panamanian law. Plaintiff’s second claim for liquidated damages for failure to pay such wages was tried to a jury who returned a verdict for defendant.

Plaintiff, after trial, argues that both claims are properly in this court because they are bottomed on a federal statute, to wit, 46 U.S.C.A. §§ 596, 597, or on an alternate theory that since the jury tried claim was based on a federal statute the court has pendent jurisdiction of the other claim. In his complaint plaintiff claimed to be a citizen of New York and framed his pleading so as to give apparent diversity jurisdiction to his first claim for extra wages, and for his second claim he relied on 46 U.S.C.A. §§ 596, 597. He demanded a jury trial.

Defendant does not contest jurisdiction but we must satisfy ourselves that we have the power to act. We admit to serious doubt on this score but will nevertheless decide the merits with the hope of avoiding another trial in the event we are in error on the question of jurisdiction.

Plaintiff, a citizen of Norway, and not of New York, signed on the M. V. Mercator at New York as chief mate on May 18, 1953, and served in different capacities aboard her until February 18, 1955, when she sailed without him from Bermuda. The M. V. Mercator was registered under the laws of Panama and was owned by defendant, a Panamanian corporation. It flew the Panamanian flag and was engaged in international traffic.

The ship’s articles signed by plaintiff on May 18, 1953, provided for a monthly wage of $270, plus a vacation period at that rate, and for $1 per hour for overtime. While at sea on July 11, 1953, plaintiff and the other members of the crew agreed to eliminate overtime for Sunday and holiday work at sea and each subscribed his name to an agreement to that effect. On February 9, 1954, plaintiff signed a new set of articles as acting master with a salary “as agreed, including vacation pay.” These articles embodied the same terms and conditions as the first set of articles. Each set of articles signed by plaintiff was approved by the Panamanian consul, as was the waiver of Sunday and holiday overtime. On March 1, 1954, plaintiff was demoted to second mate at a salary of $240 per month and continued in such capacity until February 18, 1955, when he missed the ship in Bermuda.

During all of the time plaintiff was aboard ship he worked seven days each week and eight hours a day, divided into two watches. He had 12 days vacation of two six-day periods. He received all the money he was entitled to under the articles he signed and the waiver for overtime on Sundays and holidays. He kept detailed records relating to his hours worked and wages due, and admitted that his computations corresponded to the amounts received. He further admitted that each time he signed the payroll the payroll indicated that the wages received were “in full payment of services as indicated.” His testimony explaining why he missed the ship in Bermuda left much to be desired. It was clear that he took shore leave after working long hours and, when he returned to the pier at a time he thought the ship would be there, it had left without him. We will assume, with our tongue in cheek, that it was not his fault. In any event he next boarded the ship at Savannah, Georgia, on March 8, 1955, in an attempt to secure his wages from the master but could not locate him. He received his wages from the ship’s agents in New York City on March 14, 1955, at which time he signed the account sheet with his name and the phrase, “with reservation.”

[11]*11Plaintiff filed his complaint on April 15, 1957. His second claim, which was tried to a jury, was for liquidated damages pursuant to §§ 596, 597 of 46 U.S. C.A. Those sections permit seamen, including alien seamen, to sue for double wages for the period their wages are wrongfully withheld by the steamship owner. The jury was instructed to assume plaintiff was entitled, pursuant to Panamanian law, to extra wages over and above what he was paid and to resolve only the question whether defendant, without sufficient cause, refused to pay him and, if it did, to fix the amount of liquidated damages. The jury, as stated above, found for defendant.

We were doubtful at the time of the trial whether the court had jurisdiction but on the assumption that it did we permitted the jury to resolve the issue of fact. We were doubtful on two grounds, (1) because there was no proof that the M. V. Mercator was in any United States harbor—in fact there was no proof where the ship was at the time suit was commenced or during its pendency, and (2) because this was not a proceeding in admiralty but an action at law. As we read the statute and reported cases discussing jurisdiction it would seem that the court lacks jurisdiction for claims under §§ 596 and 597 unless the ship is in a United States harbor and, perhaps for venue purposes, within the district at the time suit was started, or at least during its pendency. In Transportes Marítimos Do Estado v. Almeido, 2 Cir., 1925, 5 F.2d 151, 153, Judge Hough said:

“This is a wage claim—it can be nothing else for purposes of jurisdiction. As a suit upon a broken Portuguese contract instituted by one alien against another, it has no place on the docket of the District Court. But as a wage claim it belongs to a class of demands which can only be promoted by seamen on foreign vessels while their vessel is in a harbor of the United States.
“For this reason the judgment is reversed and the cause remanded, with directions to dismiss the complaint.”

Cf. The Strathlorne, D.C.Or.1926, 15 F.2d 210; Stavridis v. Cia Panamena Europa Navegacion, D.C.S.D.N.Y.1950, 90 F.Supp. 187.

If the court was without jurisdiction on plaintiff’s federal statutory claim his other claim, involving additional wages due under the Panamanian law, said to be pendent on the other, would seem to be just floating in thin air. We cannot, therefore, dispose of it on the theory that once having jurisdiction we should resolve the other claims to do substantial justice. The fulcrum has disappeared.

Not being pendent to anything and diversity being absent, the only other possible justification for jurisdiction would be that it is in reality a proceeding in admiralty but incorrectly “labelled.” But neither at trial nor after has plaintiff suggested this, and his counsel is a most experienced and competent lawyer in this type of litigation. Perhaps the reason is that he is not suing on a marine contract but rather for penalties under a Panamanian Fair Labor statute and the admiralty would not have jurisdiction. We need not resolve this thorny problem since we have stated that we would proceed to the merits in any event.

In his second claim plaintiff seeks (a) iy2 days vacation per month of service; (b) overtime pay at the rate of time- and-a-half for each Sunday and national holiday worked by him; (c) overtime pay at the rate of time-and-a-quarter for hours worked in excess of 45 hours each week, excluding Sundays and holidays, and (d) overtime at the rate of time- and-a-quarter for eight hours each week representing a day’s rest plaintiff should have had but did not, since he was required to work seven days a week.

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Bluebook (online)
24 F.R.D. 9, 2 Fed. R. Serv. 2d 613, 1959 U.S. Dist. LEXIS 4158, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fuhr-v-newfoundland-st-lawrence-shipping-ltd-nysd-1959.