Holmes v. Montauk Steamboat Co.

93 F. 731, 35 C.C.A. 556, 1899 U.S. App. LEXIS 2286
CourtCourt of Appeals for the Second Circuit
DecidedApril 4, 1899
DocketNo. 126
StatusPublished
Cited by3 cases

This text of 93 F. 731 (Holmes v. Montauk Steamboat Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Holmes v. Montauk Steamboat Co., 93 F. 731, 35 C.C.A. 556, 1899 U.S. App. LEXIS 2286 (2d Cir. 1899).

Opinion

LACOMBE, Circuit Judge.

On January 14,1896, a written charter party, drawn up by plaintiff, was executed by defendant and the Key West & Miami Steamship Company, by which defendant agreed to let, and the Key West Company agreed to hire, the steamboat Shelter Island for four months from February 1,1896, to be employed between Key West and Biscayne Bay, for $100 a day. The charter party further provided that the Key West Company should redeliver the steamboat to the defendant; at the termination of said agreement, in the same good condition as received, ordinary wear and tear excepted; that the charterers should have the option at any time during the charter to purchase the steamboat for the sum of $60,000; that, if charterers should exercise such option and purchase said steamboat, all charter money paid should be applied on purchase; that charterers should give a “New York banker's guaranty for the full amount of all charter, charter moneys to be paid during the period of this charter, to insure payments when due, and for the faithful performance of all other conditions of this charter party”; that the charterers should “cause insurance to cover value of said steamboat herein expressed to be effected, in a company satisfactory to the owners of said steamboat, against fire and all marine risks, including collision and damage done to other vessels or received by said steamboat other than by collision, in the name of, and for the benefit of, the owners of said steamboat, and shall pay the premium therefor.” The charter party also contained the following clause:

“Commission of five per cent, on tlie full amount of charter, also on sale of steamer, when sold, is due, on signment hereof, to Samuel Holmes, 06 & 68 Broad street, New York, ship lost or not lost, by whom the vessel is to be reported.”

Holmes, the plaintiff, was the broker through whose intervention the charter was made.

On the signing of the agreement the Key West Company paid to defendant $8,000 in cash and $9,000 in notes. It also effected insurance in conformity with the terms of the charter party, and paid the premiums therefor. The plaintiff duly received $600, being 5 per [733]*733cent, on the $>12,000 so paid by charterers. The steamboat was delivered to the Key West Company on or about February 12, 189(>; and while on her way South she foundered at sea, becoming a total’ loss. Substantially the full amount of insurance was paid to the defendant by the insurance companies.

After setting out briefly the negotiations of plaintiff and the terms of the charter party, including the one last above quoted, as to payment of commission to the plaintiff, the complaint avers that:

“Defendant further promised and agreed, in consideration of the services rendered by plaintiff as hereinbefore set forth, that if the steamboat should be lost before the option to purchase the same was exercised by the Key West & Miami Steamship Company, or before a purchase of the same was actually made by said Key West & Miami Steamship Company, the defendant would pay to the plaintiff 5 per cent, on the insurance money which it might collect and receive under policies of insurance taken out under said agreement; and said services were rendered by plaintiff on the faith of said promise, and in full reliance thereon.”

This averment is specifically denied by the answer, and is the only issue in the cause. Plaintiff and another witness gave testimony tending to show such an agreement to pay 5 per cent, on insurance moneys, and were contradicted by three witnesses called hy defendant. A number of letters and telegrams passing between the parties to the suit or to the charter party were put in evidence, but none of them contained any reference to the particular subject of controversy. The case was sent to the jury, to find, from these letters and telegrams, from the charter party itself, and from the testimony of the witnesses as to the oral conversation, whether any agreement such as the complainant declared upon was in fact made.

The first assignment of error is to the court’s refusal to direct a verdict in favor of the plaintiff. Plaintiff contends that, although the charter party was not a contract between plaintiff and defendant, it was conclusive evidence of a contract between them, by the terms of which plaintiff was entitled to commission on the insurance money paid upon loss. The clause relied upon is, “Commission of five per cent, on the full amount of charter, also on sale of steamer, when sold, is due, on signment hereof, to Samuel Holmes, * * ship lost or not lost;” and the theory of plaintiff is that, “in all fairness,” the phrase “amount of charter” means all that is obtained by the owner under the charter. But, although the premiums of insurance which the charterers agreed to pay may perhaps be said to be obtained by the owner under the charter, the moneys paid by the insurance companies upon loss’of the vessel were obtained under a different and independent contract with the companies themselves. Indeed, it might he very doubtful whether, if the Key West Company had exercised its option, and subsequently bought the steamboat, the purchase money could be held to be “amount of charter,” since an additional contract was necessary to its production. All such doubt, however, was resolved by the addition of the clause, “also on sale of steamer, when sold.” It is argued that the “narrow construction given * excludes the broker from all remuneration for his important services, except for the amount paid on account of the contract.” The important services rendered were twofold: First, [734]*734such as produced the charter party, with the obligations that contract imposed upon the charterers, to which extent 5 per cent, on the amount of their obligations was a full remuneration; and, second, such as were directed towards procuring a purchaser of the boat at $60,000, but no such purchaser was in fact procured, and the boat was never sold. The language of the clause as to commissions above quoted is clear, plainly expressed, and wholly unambiguous; and the contention that it covers the insurance moneys paid upon loss, because it required the charterers to pay the premiums, is wholly without merit. Inasmuch as there was a conflict of oral testimony as to whether defendants had.agreed to pay plaintiff commissions on the insurance moneys, the court properly submitted that question to the jury.

2. It is next contended that the “charter was at least ambiguous, and it was for the. jury to construe it in the light of all the evidence.” This assignment of error is based upon several exceptions to the charge, which, in one way or another, instructed the jury that the charter party did not contain any provision for the payment of commissions on insurance moneys. A single excerpt will be sufficient. The court, in response to a question by a juror, charged as follows:

“Suppose the plaintiff had come here, and put this charter party alone in evidence. That would not have sustained the plaintiff’s case. The plaintiff must have an agreement, outside of this charter party, providing for the payment of the five per cent, on the insurance money which he claims. While you are determining whether such an outside agreement was made, you will consider the charter party. You.

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Bluebook (online)
93 F. 731, 35 C.C.A. 556, 1899 U.S. App. LEXIS 2286, Counsel Stack Legal Research, https://law.counselstack.com/opinion/holmes-v-montauk-steamboat-co-ca2-1899.