Gaston, William & Wigmore S. S. Corp. v. Cunard S. S. Co.

270 F. 239, 1920 U.S. Dist. LEXIS 772
CourtDistrict Court, S.D. New York
DecidedDecember 6, 1920
StatusPublished
Cited by3 cases

This text of 270 F. 239 (Gaston, William & Wigmore S. S. Corp. v. Cunard S. S. Co.) 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
Gaston, William & Wigmore S. S. Corp. v. Cunard S. S. Co., 270 F. 239, 1920 U.S. Dist. LEXIS 772 (S.D.N.Y. 1920).

Opinion

MAYER, District Judge.

Thé question raised by the exceptions is important and interesting. The libel alleges that libelant is a Delaware corporation and the time charterer of the British steamship Lord Duiferin. The charter in question, a copy of which is made part of the libel, was in the usual “government' form” and was for a period of “about five years” from April, 1915.

The libel further alleges that on February 28, 1919, the steamship Lord Duiferin, while operating under said charter, after having been loaded by libelant, was lying, securely anchored, off the Statue of Liberty, and that, while so anchored, she was collided with by the Aquitania which cut off her stem, making it necessary to beach the steamer, ánd inflicting great damage upon her. The libel then sets forth that libelant as time charterer, by reason of the collision, has been “wrongfully deprived of the use of the steamship Lord Dufferin for a long time to come, and has suffered other damages and incidental expenses,” the amount claimed being $1,700,000.

The owner of the Lord Dufferin is not before the court on this hearing, but the court will take judicial notice that the owner (Gaston, Williams & Wigmore of Canada, Limited, a Canadian corporation, not this libelant) has filed a libel in this court, to recover the damages sustained by the owner, which are stated in that libel to consist of expense of repairs, “loss of use during the period of repairs, and other incidental losses and expenses,” the amount claimed being $1,000,000.

■The exceptions to the libel are: (1) That it does not state facts sufficient to constitute a cause of action; (2) that the allegations of the libel do not disclose any maritime claim or lien against the Aquitania; and (3) that it appears on the face of the libel that at the time of the collision libelant was not the owner of the Lord Dufferin.

The consideration of the question involved starts with the impetus that the aim of the admiralty courts is to work out principles which make for justice and seek to avoid the turning away of a suitor without remedy.

• An owner, possessing the full estate in a vessel, can, of course, recover for the loss 'of use of his vessel, damaged in a collision by the fault of another. The. question is whether, when án owner, for a consideration, has parted with the use of his vessel to a time charterer, that fact will justify a full release to the claimant of the damages sustained for loss of use of the vessel. The damages are the same, and thus the inquiry is whether the legal position of the time charterer is such as to debar the recovery sought.

There are four cases in which recovery has been had by the time charterer under circumstances which can be justified only on the theory [241]*241pressed by libelant in the case at bar. In these cases, however, the question here involved is not precisely discussed, as will appear infra,

(1) In a per curiam opinion of the Vice Admiralty Court of Quebec, in 1883, the view here urged by libelant seems, in effect, to have been taken as matter of course.

(2) In the Beaver litigation, Mr. Keating and Mr. Bradley have carefully prepared for the court an outline of the essential features of the record, and the court, on examination of the record, finds that the digest thus made covers the points relevant here for consideration. This digest is annexed as an appendix hereto for the convenience of those who may have occasion to study the Beaver record. The Beaver (D. C.) 197 Fed. 866; The Beaver, 219 Fed. 134, 135 C. C. A. 32, Id., 219 Fed. 139, 135 C. C. A. 37. In the District Court (197 Fed. 866) the opinion is taken up with the question as to which vessel was at fault.

Appeals were taken to the Circuit Court of Appeals in two of the three cases, in the case brought by the master of the Selja against the Beaver, and in the case brought by the charterer against the owners of the Beaver. The former is reported in 219 Fed. 134, 135 C. C. A. 32, and the latter in 219 Fed. 139, 135 C. C. A. 37. The former case is entirely devoted to the question as to which vessel was at fault. This case was appealed to the Supreme Court of the United States (243 U. S. 291, 37 Sup. Ct. 270, 61 L. Ed. 726), but that court did not have before it the question presented here.

The other appeal (219 Fed. 139, 135 C. C. A. 37) was by the owner of the Beaver from that part of the decree which awarded the charterer of the Selja recovery “for the loss of its bill of lading freight * * * for the value of the bunker coal, flour slings, house flag, and dunnage wood and mats.” The court stated the question on appeal as follows (219 Fed. 140, 135 C. C. A. 38):

“Tlie parties to this appeal are agreed as to the value of those respective items, but the appellant contends here, as in the other case, that the disaster was caused by the joint fault of the two ships, and that because of the fault of the Selja the appellee is entitled to recover only subject to the rule of cross-liabilities.”

The opinion of the District Judge shows that the same question was the only one discussed in the court below. The right of the charterer to recover as such was not discussed, but the question was whether the negligence of those in charge of the navigation of the Selja could be imputed to her charterer, as it was to her owner, so that the rule of divided damages could be applied in the charterer’s case. Both the court below ’ and the court above held that it could not. The court below said:

“The charterer had no control .over her navigation and was in no way responsible for the negligence which caused tlie damages.”

The Circuit Court of Appeals said (219 Fed. 142, 135 C. C. A. 40):

“The charterer in the present case, having nothing whatever to do 'with the navigation of the Selja, upon the most obvious principles of justice cannot be held in any way responsible for the negligence of her master, who, in. the matter of her navigation, was the agent of her owner, and not the agent of the charterer.”

[242]*242It thus appears that in the Beaver Case the question argued and decided was whether the negligence of those in charge of the navigation of the Selja could be imputed to her charterer. The question whether the charterer as such could recover was conceded by the pleadings.

It is, nevertheless, a matter of some importance that the charterer had recovery under the decree, and such recovery is, necessarily, consistent with libelant’s theory in the case at bar. It is apparent that neither the proctors nor the court, in a case as substantial and important as The Beaver, regarded the libel or the decree as requiring contest in this regard.

(3) In Sibiria S. S. Corporation et al., owner and time charterer of S. S. Sagua, v. S. S. Binghamton, the report of an experienced special commissioner (former Judge Veeder) came up to this court. In correspondence with counsel, the special commissioner stated:

“I find, also, that the item of damages claimed by the Atlantic Fruit Company, as time charterer of the steamer Sagua, should be allowed.”

The interlocutory decree had provided, inter alia, that the special commissioner, in addition to taking proof as to the amount and validity of items claimed as damages by the Sibiria Steamship Corporation, as owner of the Sagua, was also—

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Cite This Page — Counsel Stack

Bluebook (online)
270 F. 239, 1920 U.S. Dist. LEXIS 772, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gaston-william-wigmore-s-s-corp-v-cunard-s-s-co-nysd-1920.