Harned v. Churchman

4 La. Ann. 310
CourtSupreme Court of Louisiana
DecidedApril 15, 1849
StatusPublished

This text of 4 La. Ann. 310 (Harned v. Churchman) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Harned v. Churchman, 4 La. Ann. 310 (La. 1849).

Opinion

The judgment of the court (King, I. absent,) was pronounced by

Sudem,, J.

This suit was brought by Harned, as the endorsee of a bill of exchange for $1210 20, payable at thirty days after date, drawn at Philadelphia, on the 19th February, 1848, by James Robertson, master of the barque Due d’Orleans, in favor of Heald, Buckner Co., for their disbursements on account of the vessel in the port of Philadelphia. It was drawn on Churchman of New Orleans, the former owner of the barque, and was accepted by him. The bill was protested at maturity, and, on die 24th March, 1848, this action was brought against the acceptor; and Woodruff, the present owner of the barque, upon which a lien is claimed, was made a defendant, The barque was sequestered. The plaintiff had judgment in the court below against Churchman, with a privilege on the barque. Woodruff has appealed.

The barque left New Orleans, her home port, about the 1st January, 1848, consigned by Churchman to Heald, Buckner Co. In a letter of the 3d January, he remarks, to them:—“I am arranging a bill of sale of the Due d’Orleans, and will forward that also.” The barque arrived at Philadelphia, on the 4th February, 1848, and left that port for New Orleans on the 19th. Part of her cargo was for the owner’s account, so that her freight list to Philadelphia produced only $443 95, which was collected by Heald, Buhner 8f Co., and carried by them to Churchman’s credit in account. They had had previous dealings; and the antecedent charges against Churchman seem to have been more than sufficient to absorb the freight money. The vessel, while at Philadelphia, incurred various [311]*311expenses for services and supplies by carpenters, sail-makers and chandlers, for towage, pilotage, custom-house charges, &c; for the payment of these, and also in the form of cash advances to the captain (for what purpose, or upon what representation, does not upper,) Heald, Buckner 8¡- Co. disbursed a sum which amounted, with the customary commission and interest, to $1210 20 ; and for this amount the captain’s bill on Churchman was taken.

Churchman sold thebarque on the 11th, January, 1848, to De Coverly and others. The purchasers got out a new register, on the 18th March, 1848. They resold the barque at auction, on the 23d March, 1848, to the appellant.

It may be conceded, for the purpose of the present enquiry, that, by the transfer of the bill of exchange, the holder may be considered as equitably invested with any accessary rights which accompanied it in the hands of the payees, who made the advances in consideration of which it was drawn.

Looking to all the facts of this case, we think it has been properly said by the appellant’s counsel that, the money must be considered as having been advanced solely on the personal credit of the owner. He was the former correspondent of Heald, Buckner Sf Co. They were consignees of the vessel. They also were aware that he contemplated selling her. They permitted the vessel to depart, and took a bill of exchange at thirty days, on Churchman, payable in New1 Orleans, for the amount of the advances.

In a veiy extended examination of the authorities upon the maritime law, we have not met with a single case, where, under like circumstances, a tacit hypothecation of the vessel in favor of the consignee has been recognized. If we look to the doctrine of special hypothecation or bottomry, the well settled principles of the maritime law respecting the contract are pregnant with air implication against the plaintiff’s pretensions. The writers are unanimous in -a jealous restriction of tire captain’s power to hypothecate by bottomry. It must appear' that the advances wore made for repairs, or supplies, necessary for the voyage, or for the safety of the ship, and that the repair’s or supplies could not be procured on reasonable terms, or with funds within the master’s control, or upon the credit of the owner independent of the hypothecation. See Kent’s Com. p. 171.

Benecke, in speaking of bottomry, remarks: “It frequently occurs, that the master of a vessel is under the necessity of borrowing money abroad, for the purposes of the voyage. If this happens at a place where the owner of the vessel has friends or correspondents, the master applies to them first; and they usually furnish him with the money required, for which they draw bills, including commission and interest, either or the owner, or on such other house as he may direct. But if, either the correspondents refuse to advance the money,, or if it be wanted ata place where the master is not able to raise it upon bills, het is often reduced to the necessity of mortgaging, according to circumstances, either the vessel, or the vessel and caigo.” In Rucker Co., v. Conyngham, 2 Peters’ Ady. 302, Judge Peters observes: “ It is essential to the lawful exorcise of this power that, no other means of procuring funds at the place required, should exist. Of course, if the owners have agents or consignees, who have either funds or property to furnish, or are bound to afford means on the personal credit of the owners, this power in the captain is excluded.” Mr. Jacobson, citing the ordinance of Bilbao as his authority, says the master, if he requires money for the prosecution of the voyage which he cannot have advanced upon his average money, or obtain by bills upon his owners, is authorized' to lien the ship by bottomry. Laws of the Sea, p. 359.- IntheeaseoftheALZcxewiiZer, 1 Dodson, 279, Sir "William SgoW sustained abottomry bond given to the consignee of the cargo. [312]*312saying that as they had no knowledge' of the owners of the ship, it must have been that they looked to the ship itself for their security. See also Holt on Shipping, vol. 1. 399. The Aurora, 1 Wheaton ,104. Smith’s Mercantile Law, 350:

The plaintiff’s counsel has cited Boulay Paty in support of the tacit hypothecation or privilege. The language of that author is: “Le privilege n’en compte pas moins an preteur, quoique l’acte de pret soit tout autre qui’un contrat á la grosse. Aujourd’hui le capitaine peut avoir recours a l’emprunt simple par lettre de change, ou autrement, pour subvenir aux necessités du navire.” Cours dé Droit Commercial Maritime. The case of the owners, consignees and correspondent is not mentioned by this writer as falling within the rule. But however that may be, it must be observed that he is commenting upon the special legislation of the french Code of Commerce, and that the privilege which it grants, is not recognized, without the observance, at the time of the loan, of formalities which seem to point to a contemplation of the credit of the vessel as well as that of the owner. See Code of Commerce, 191, 192, no. 5.

In looking into the english and american authorities we find that, the taking of a bill of exchange upon the owner is considered as creating a presumption that the credit is personal. Thus, in the case of a marihcr, whose claim is peculiarly favored in admiralty: a sailor having been offered his wages in money, elected to' take part thereof in a bill of exchange on the owner, who afterwards became a bankrupt, in consequence of which' the bill was dishonored. It was held that he was not entitled to arrest the ship for wages to the amount of such bill, on thé ground that, having made his election, ho must stand by the risk. The William Money, 2 Haggard, 136.

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Bluebook (online)
4 La. Ann. 310, Counsel Stack Legal Research, https://law.counselstack.com/opinion/harned-v-churchman-la-1849.