Henderson v. Three Hundred Tons of Iron Ore

38 F. 36, 1889 U.S. Dist. LEXIS 41
CourtU.S. Circuit Court for the District of Southern New York
DecidedFebruary 5, 1889
StatusPublished
Cited by6 cases

This text of 38 F. 36 (Henderson v. Three Hundred Tons of Iron Ore) is published on Counsel Stack Legal Research, covering U.S. Circuit Court for the District of Southern New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Henderson v. Three Hundred Tons of Iron Ore, 38 F. 36, 1889 U.S. Dist. LEXIS 41 (circtsdny 1889).

Opinion

Brown, J.,

([after stating the facts as above.) This controversy has grown out of an attempt of Henderson Bros., in conjunction with the managers of other lines of Mediterranean steamers, to establish a regulation for the provisional payment of freight at their respective offices according to weights named in the bills of lading, before the actual delivery of the goods, leaving the correction of any errors therein to future adjustment, after the weight is ascertained; like the custom-house usage in the provisional and final liquidation of duties. A joint circular to this end was previously issued in December, 1881, which seems not to have reached Mr. Marvel.

When the payment of freight and delivery of the cargo, as a whole, are by the legal rule made concurrent acts, great practical difficulties arise, if the quantity is large, and each side stands on its legal rights. The amount may be so great that part of the cargo may have to be removed before the rest is discharged; and if the consignee refuses to pay pro rata freight on what is removable, or to give security for payment, the ship is not bound to deliver piecemeal, and may remove and store such parts as are necessary to be removed at the consignee’s expense. Brittan v. Barnaby, 21 How. 527, 534; The Kathleen Mary, 8 Ben. 165, 170. See The Tangier, 32 Fed. Rep. 230.

1. The legal effect of the terms of this bill of lading was to make payment of freight and delivery of the goods concurrent.' Although the bill [39]*39of lading reads, “Freight being paid on the cwt. delivered, as per margin,” and the margin says, “300 tons,” T cannot hold that the words “as per margin” qualify the previous restriction to the cwt. delivered, or that they even make the 300 tons named in the margin any such prima facie evidence of the freight due as to warrant the ship in holding the ore for that amount, without taking any steps to ascertain how many cwt. were delivered. Under the clause “weight unknown,” the statement of “300 tons,” in the bill of lading, was not even prima facie evidence as to the weight against the ship, when it appeared that all received was delivered. The Ismaele, 14 Fed. Rep. 491; Matthiessen v. Gusi, 29 Fed. Rep. 794.

It was the ship’s duty, therefore, to ascertain the weight; because she could not lawfully continue to hold possession of the cargo after the consignee was ready to receive it, without informing him, as soon as reasonably practicable, of the amount of freight to be paid. Nine Thousand Ox Hides, 6 Ben. 199, 202. There is no such ambiguity in the terms of the bill of lading as to permit their legal effect to be changed by any proof of custom, or by any regulation sought to be imposed by one of the parties to the contract without the consent of the other. Any sucli change, extremely desirable as it no doubt is, in such cases, for the convenience of both parties, could only be made by mutual agreement, or by further stipulation in the bill of lading itself. Brittan v. Barnaby, 21 How. 527, 534.

The commencement of the suit on May 4th — two days before the weight was ascertained — was therefore premature, since the libelant did not know how much he had a right to demand, nor the consignee how much he was required to pay. All costs and expenses incident to the premature bringing of the suit must therefore fall upon the libelants. One Thousand Two Hundred and Sixty-Five Vitrified Pipes, 14 Blatchf. 274. When the tender was shortly afterwards made, —on the 10th, —the consignee having ascertained the true weight in the mean time, as he had a right to do, though he had no right to demand a custom-house certificate from the libelants, the latter had no right to claim indemnify for the costs and expenses up to that time, but should have accepted the tender, and discontinued their suit. The time taken by the consignee to determine upon this course, rather than to bond the goods in the usual way, was not unreasonable. The tender not being accepted, the continuance of the suit was at the libelant's risk of all the subsequent legal costs and expenses also. Had the cargo not been sold, it must, upon dismissal of the suit, have been returned to the claimant free i'rom all charges and expenses for its arrest and preservation; or, rather, all such expenses would have been charged against the libelants as taxable costs. The Georgeanna, 81 Fed. Rep. 405. In this case it was the groat expense of keeping the property that made it “perishable.” The sale was to avoid that; and the incidental expenses of the sale stood in the place of further expense in keeping the property. Though the proceeds of sale represent the ore, and bound the claimant thereto, so far as relates to the prices that the ore brought, as to all the expenses the claimant ought not to be put in any worse position in consequence of the sale; and all these charges must [40]*40therefore be borne by the libelants. The refusal of the tender prevents the libelants from benefiting by the fact that the previous inchoate right of suit had then become perfected, (The Martha, Blatchf. & H. 169,) and the special circumstances do not .exist here upon which recovery is sometimes allowed in suits premature at the start, (Eight Hundred and Forty-One Tons of Iron Ore, 15 Fed. Rep. 615, 25 Fed. Rep. 864.)

2. The cross-libel suit commenced May 5th for the recovery of $3,000 damages was also premature; for the ship still had not only a lien .on the ore for the unascertained freight, but also the right of possession, and the right- to prevent the ore going out of her presence or control. The discharge into the canal-boat along-side was no waiver of either right. That was not done for the.purpose of putting the ore under the absolute possession and control of the consignee, but for mutual convenience in the handling and weighing of the ore in the process of discharge, and to enable the consignee to remove the ore immediately when he should become entitled to its possession upon payment or tender of the freight ascertained to be due. Had any attempt been made to run away with the ore, no doubt a libel and an arrest of the ore would have been sustained to maintain the ship’s right of possession, as replevin or trespass would lie upon any similar unlawful attempt to remove the ore, had it been discharged upon the dock. Neither the libel nor the proof shows any such attempt or intention.

The cross-libel, filed May 5th, and served the same day, alleges only that the carriers “willfully and wrongfully refused to deliver” the ore, i. e., on or before the 5th of May. As no payment or tender of freight had then been made, the refusal to deliver was not wrongful, but rightful. The supplemental cross-libel filed in March, 1883, “reiterates the allegation of the libel,” and says the weight and freight were ascertained “on or about May 5th, and that thereupon” the amount due was tendered, but delivery of the ore refused. But the weight was not ascertainable till the 6th, and the tender Avas not made till May 10th; so that it still remains true that the original cross-libel Avas premature. No cause of action existed when the vessel was arrested on May 5th, and the rule of pleading is that a bill wholly defective cannot be sustained through a supplemental bill founded on matters arising subsequently. Candler v. Pettit, 1 Paige, 168; Pinch v. Anthony, 10 Allen, 471, 477; Mason v. Railroad Co., 10 Fed. Rep. 334; Muller v. Earle, 37 N. Y. Super. Ct. 388.

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Bluebook (online)
38 F. 36, 1889 U.S. Dist. LEXIS 41, Counsel Stack Legal Research, https://law.counselstack.com/opinion/henderson-v-three-hundred-tons-of-iron-ore-circtsdny-1889.