Gokey v. Fort

44 F. 364, 1890 U.S. Dist. LEXIS 28
District Court, S.D. New York·Decided December 24, 1890·Published·Cited by 12 cases

Opinion

Brown, J.

The libelants sue to recover a bill for repairs upon the schooner-J. J. Pharo, of New Jersey, in her home port, in May, 1889. The respondents were the owners of the vessel at the time. The amount of the bill is not disputed, but the respondents set up as a defense the proceedings for the limitation of their liability subsequently taken, and [365] a decree of this court therein, exempting them, in accordance with the provisions of the Revised Statutes, §§ 4288-4285, and the act of June '26, 1884, (23 St. at Large, p. 57, § 18.) The libelants claim that they are not within the provisions of either act, and are not affected by the decree. In the proceedings to limit liability, the vessel was sold, and the proceeds were deposited in the registry of the court. The vessel was in the coasting trade, and on the 31st of July, 1889, by her own fault, came into collision with the brig Kaluna, inflicting damages that exceed the proceeds of the vessel deposited in the registry, and the decree was founded upon those claims. The vessel had been run upon shares by the master. Ho acted as ship’s husband and managing agent, transacting all her business, and reporting to*the owners. The repairs in question were incurred in the yearly overhauling of the ship. They were ordered by the master, under his authority as managing agent, in the home port, with the knowledge also, at the time, of some of the owners. The collision was about two months after the repairs were made, and upon the third voyage after their completion.

1. In the case of The Alpena, 8 Fed. Rep. 280, it was held by Judge Blodgett, in construing the act of 1851 and the provisions of the Revised Statutes, that each voyage or trip—

“Must be treated as a separate venture, involving its own particular hazards, losses, and earnings; and that, when each such voyage is ended, it is for the owner to decide whether the losses have been such as to make it expedient for him to invoke the protection given by this act of congress. * * * The language as well as the evident reason of the statute shows that this proceeding can only be had for the purpose of apportioning the owner’s interest between several persons who have suffered losses on the same voyage. ”

Claims arising out of prior voyages were therefore held excluded from the limited liability proceedings, and not to he bound by the decree therein. I concur in the conclusion-reached by Judge Blodgett in that case, although the practice seems to he that liabilities for torts arising out of a prior voyage, unliquidated and undefined in amount, and often wholly unknown, may be limited upon a surrender of the vessel or her value after a subsequent voyage; the value and freight being determined according as they existed at the close of the prior voyage. See The Benefactor, 103 U. S. 239, 245, 9 Ben. 44, 47; The City of Norwich, (Place v. Transportation Co.,) 118 U. S. 468, 491, 6 Sup. Ct. Rep. 1150; The Great Western, 118 U. S. 525, 6 Sup. Ct. Rep. 1172; The Doris Eckhoff, 80 Fed. Rep. 110. I think the act of 1884 is doubtless to be treated as in pari materia with the act of 1851, (Rev. St. §§ 4233, 4285,) and designed to extend the act of 1851 to cases of the master’s acts or contracts, and thus to bring our law into harmony with the general maritime law on this subject. Butler v. Steam-Ship Co., 130U. S. 527, 553, 9 Sup. Ct. Rep. 612; The Amos D. Carver, 35 Fed. Rep. 669; Force v. Insurance Co., Id. 778; Miller v. O’Brien, Id. 779, 783. The act of 1884, like the act of 1851, limits the owner’s liability to the “value of such vessel ana-freight pending.” But there is no “freight pending,” except upon the current voyage; and this shows that the debts of the last voyage only are [366] intended. It cannot be that prior debts are to be included but not prior earnings. The City of Norwich, ut supra. In the case of debts contracted for the benefit of the ship and of her owners, which are known, and are for known or ascertainable amounts, and of which the owners reap the benefit in the improvement of the ship, and in the freights subsequently earned, there may be sufficient reason to hold that the owners, having knowledge of such debts, adopt them as their own personal liabilities, if the vessel is sent out upon subsequent voyages, and that by so doing they lose their right to limit their liability in respect to such beneficial contracts, even if they were not at first personally liable therefor.

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Gokey v. Fort, 44 F. 364, 1890 U.S. Dist. LEXIS 28 (S.D.N.Y. 1890).

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