Hanschell v. Swan

23 Misc. 304, 51 N.Y.S. 42
CourtNew York Supreme Court
DecidedApril 15, 1898
StatusPublished
Cited by1 cases

This text of 23 Misc. 304 (Hanschell v. Swan) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hanschell v. Swan, 23 Misc. 304, 51 N.Y.S. 42 (N.Y. Super. Ct. 1898).

Opinion

Cohen, J.

In September, 1894, the American brig, “John H. Crandon ” of Hew York arrived at Barbadoes, W. I., seeking employment and consigned to the plaintiff, a merchant residing on that island.

The defendant is a citizen andvesident of this state. His father, also' a resident of Mew York, died in January, 1894, leaving a will, admitted to probate in Kings county, whereby he appointed the defendant and two others, his executors. The executors received letters testamentary in Eebruary, 1894, and one-thirty-second of the brig “ Crandon ” passed into their possession, as a part of the estate of Swan, Sr., deceased.

The defendant, being a shipping merchant, continued to act as the managing agent of the “ Crandon,” and the voyage on which she went to Barbadoes was made at his instance.

The master of the “ Crandon,” finding himself in want of funds while awaiting charter at Barbadoes, applied to the.plaintiff for money alleged by him to be necessary for wages, supplies and repairs and the port charges of his brig.

The plaintiff thereupon paid certain hills incurred by the captain and advanced him some cash; the bills and cash together amounting (with the plaintiff’s commission) to $714.78 (or £150 9s. [306]*3068d.), for which, sum the master - gave a draft payable ten days after his vessel’s arrival at port of discharge in Europe and for the payment thereof pledged his “ vessel, her freight and owners.”

The “ Crandon ” obtained a charter for Bremen, but having met with disaster .while crossing the Atlantic, put into Bermuda in distress, was there repaired with money raised upon bottomry, on her arrival in Bremen was sold, and, her proceeds being absorbed by maritime liens prior to the draft above referred to-, the plaintiff, as the holder thereof, was left no recourse other than, a shit against the. owners of the “ Crandon.”

Tins action is upon the draft given by the master; the defendant 'is sued individually, as one of the “ Crandon’s ” owners, and judgment is demanded for the full amount of the instrument in suit.

By commission to Barbadoes, the plaintiff has shown the circumstances under which this draft was given; he has also introduced as his own'witness the late master of the Crandon,” from whose testimony I find as a fact, that the cash received by him from the plaintiff, covered by the draft in. suit, and amounting to $414.20, was given without any knowledge or inquiry on the part of the plaintiff as to the necessity of so large a sum for the purposes of the ship; that thé master told plaintiff that he wanted this money for labor and repairs, for necessaries for the ship and for crew’s wages; that, as matter of fact, the master applied $314.20 of the moneys received either in extinguishment of his own existing claim for wages or in payment of claims for his future services, and actually expended this $314.20 for -his own personal use and gratification; the remaining $100 he applied to the payment of the crew or for their necessities.

I further find that the master of the “ Crandon ” did not need more than $100¡ cash at Barbadoes for the necessities of his ship and crew, in addition to' the hills paid for him by the plaintiff and included in the draft in suit, and that the balance of the cash advanced, $314.20, was improperly obtained and wrongfully expended.

There is no direct evidence as to what would have been a usual and reasonable amount to cover the disbursements of .a ship of the Crandon’s ” size at Barbadoes, but a comparison -of the amount advanced the Crandon ” with the advances to other vessels touching at Barbadoes and consigned to the plaintiff and the fact that $300 of the $414.20 was given the .Crandon’s ” master at one [307]*307time and after $114.20 had been paid out 'in small sums, leads me also to find that the plaintiff, by the extravagance of the master’s demands, should have been roused to an inquiry that would at once have, revealed the impropriety of the last advance of cash.

I find the facts to be as hereinabove set forth and, in so doing, have considered as admitted in evidence all the,answers to all the interrogatories addressed to the witness McCormick, some of which were provisionally excluded at the trial.

Both parties have moved for the direction of a verdict, the plaintiff demanding the face of his draft, with interest^ and the defendant claiming that since his decedent owned but one-thirty-second of the brig and appointed by his will three executors, all of whom qualified, he is hable, under the act of Congress of June 26, 1884 (commonly known as the Dingley Act), for but one-ninety-sixth of the amount justly found due by all the owners.

Under these circumstances the duty is imposed upon the court of ascertaining the facts of the case as well as the law applicable thereto, its findings of fact having the force and effect of thei verdict of a jury. Shultes v. Sickles, 147 N. Y. 704.

Both parties to this action have assumed in argument that, the master of the “Orandon,” by pledging not only his vessel and freight, but “ her owners,” rendered such owners hable for whatever sums the plaintiff was justified in advancing; and that this hability nothing but the Dingley Act can lessen or destroy.

It may well be doubted whether such results flowed from the transaction under consideration. The instrument in suit is a “ master’s draft,” which is but an abbreviated form .of bottomry. The Pride of the Ocean, 3 Fed. Repr. 162. If the master of the Orandon ” had not specifically pledged the credit of his owners, no liability would have attached to them beyond the amount of assets coming into their hands and growing out of the hypothecated vessel and freight. The Virgin, 8 Peters (U. S.), at p. 554. If, as a part of the bottomry transaction, the master had drawn a draft on his owners payable absolutely, the attempted hypothecation would have been invalid. Stainbank v. Fenning, 11 C. B. 51; Greeley v. Smith, 3 W. & M. 234, Fed. Cases, No. 5750; and it has been frequently held that, if a bottomry bond be given and a bill drawn on the owners for the same amount, the bill must share the fate of the bond. The Hunter, 1 Ware. 249, Fed. Cases, No; 6904; Maitland v. The Atlantic, Newb. 514; Fed. Cases, No. 8980.

[308]*308It is not perceived that uniting in one instrument the .hypothecation of the vessel with the draft on the owners, personally, changes the principal of the cases cited; if the “Crandon” had been lost before, arrival at her “port of discharge,” the plaintiff would have wholly lost his money; and this is the essential feature of the transaction under review.that renders it a clear case of bottomry; he has by the creation of prior liens lost the security of the vessel and freight, as thoroughly as if the “ Clandon ” had sunk outright, and it is. questionable, in view of the language of the court in The Virgin, supra, and of Taney, Ch. J., in Naylor v. Baltzell, Tan. 55; Fed. Cases, No. 10061, whether he has not lost his recourse against the owners with the loss of hen on the vessel;' whether the owners’ liability has not vanished with their ownership, or, to vary the statement, whether it is within the power of a shipmaster to add, to a valid marine hypothecation of his vessel and freight, any pledge whatever of his owners’ personal credit, beyond the proceeds of the hypothecated property coming into- their hands.

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Bluebook (online)
23 Misc. 304, 51 N.Y.S. 42, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hanschell-v-swan-nysupct-1898.