Huasteca Petroleum Co. v. Cia. de Navegacao Lloyd Brasileiro

297 F. 318, 1924 U.S. Dist. LEXIS 1710
CourtDistrict Court, E.D. New York
DecidedJanuary 12, 1924
StatusPublished
Cited by8 cases

This text of 297 F. 318 (Huasteca Petroleum Co. v. Cia. de Navegacao Lloyd Brasileiro) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Huasteca Petroleum Co. v. Cia. de Navegacao Lloyd Brasileiro, 297 F. 318, 1924 U.S. Dist. LEXIS 1710 (E.D.N.Y. 1924).

Opinion

CAMPBELL, District Judge.

This'is a motion by the respondent on an order obtained by it directing the several libelants to show cause — ■

“why an order should not be entered herein vacating and dismissing the several writs of foreign attachment and of arrest heretofore issued out of this court, and staying all proceedings in the said actions against the respondent herein and the vessels attached, and all other property and moneys within the Eastern District óf New York, belonging to the respondent, or its agents, and releasing said steamships Pocone and Alegrete from said process of attachment issued out of this court and dismissing the libels herein for want of jurisdiction of this court.”

It is opposed by the libelants, who admit that they are stayed from taking any further proceedings pending the entry of the final decree in the proceedings to limit respondent’s liability, but contend that they are entitled to retain the security which they acquired by foreign at[319]*319tachment before the issuance of the injunction in such limitation of liability proceeding.

A brief statement of the several suits, necessary for consideration in the matter at bar, and the various steps taken therein, especially with reference to the time of the happening thereof, is necessary for a proper understanding of the cdnflicting contentions of the parties and is as follows:

Under date of December 1, 1923, libel in the name of David G. Evans Coffee Company et al. v. Steamship Pelotas, and libel in the name of David G. Evans Coffee Company et al. v. Companhia de Navegacao Uloyd Brasileiro, the respondent, each in the sum of $1,-000,000, were filed in the United States District Court for the Eastern District of Louisiana. Under process issued in the first-mentioned libel, the steamship Pelotas was seized by the marshal for the Eastern district of Louisiana.

On December 1, 1923, libel in the name of Huasteca Petroleum Company against the respondent for salvage in the sum of $100,000 was filed in this court and process of foreign attachment was issued thereunder and the steamship Pocone was seized by the marshal of this district on the same day.

On December 1, 1923, libel in the name of Merritt-Chapman & Scott Corporation against the respondent for salvage in the sum of $50,000 was filed in this court and process of foreign attachment was issued thereunder, and the steamship Pocone was seized by the marshal of this district on the same day.

On December 5, 1923, the' respondent filed a petition for limitation of its liability in the United States District Court for the Eastern District of Louisiana. No stipulation for any alleged value of the steamship Pelotas was filed at that time, nor was any surrender made or offered to be made of the steamship1 Pelotas and her pending freight to a trustee.

The court appointed appraisers to ascertain the value of the vessel, and the appraisers filed their report on December 6, 1923.

Under date of December 8, 1923. libel in the name of Westfeldt Bros, et al. against the respondent was filed in this court alleging damages in the sum of $500,000, and a writ of foreign attachment was issued, and by virtue thereof tbe marshal seized the steamship Pocone and the steamship Alegrete.

The first-named steamship was attached by the marshal under this process on December 8, 1923, and the steamship Alegrete was attached under this process about 10 a. m. on December 12, 1923.

On the morning of December 12, 1923, libel in the name of Sprague-Wamer & Co. et al. against the respondent, alleging damage in the sum of $300,000, was filed in this court, and process of foreign attachment was issued thereunder, and the steamship Alegrete was seized by the marshal of this court at about 10 a. m. on the same day.

On the morning of December 12, 1923, the said respondent as petitioner moved in the United States District Court for the Eastern District of Louisiana for the appointment of a trustee; the court appointed a trustee; the petitioner assigned its interest in the steamship Pelotas to the trustee, together with certain freights alleged to be due. The [320]*320court thereupon issued monition and injunction in the form ordinarily-employed in limitation proceedings. The monition and injunction were signed by the judge of said court between 10 and 11a. m., on the morning of 'December 12, 1923, at New Orleans, La,, and filed in the clerk’s office of said court shortly before 11 o’clock on that day.

There is ..a difference in time of one hour between Brooklyn, N. Y., and New Orleans, La., and therefore the attachment in this district of the steamship Alegrete was effected at least one hour before the monition and injunction were issued by the court' at New Orleans. The steamship Pocone had been attached several days prior thereto.

So much of the statute as is necessary for consideration in the case at ■ bar reads as follows:

Section 4282, R. S. (Comp. St. § 8020):

“No owner of any vessel stall be liable to answer for or make good to any person any loss or damage, wbicb may happen to any merchandise whatsoever, which shall be shipped, taken in, or put on board any such vessel, by reason or by means of any fire happening to or on board the vessel, unless 'such fire is caused by the design or neglect of such owner.”

Section 4283, R. S. (section 8021):

“The liability of the owner of any vessel, for any embezzlement, loss, or destruction, by any person, of any property, goods, or merchandise, shipped or put on board of such vessel, or for any loss, ‘damage, or injury by collision, or for any act, matter, or thing, lost (loss), damage, or forfeiture,' done, occasioned, or incurred without the privity, or knowledge of such owner ox-owners, shall in no case exceed the amount or value of the interest of such owner in such vessel and her freight then pending.”

Section 4284, R. S. (section 8022);

“Whenever any such embezzlement, loss, or destruction is suffered by several freighters or owners of goods, wax-es, merchandise, or any property whatever, on the same voyage, and the whole value of the vessel, and her freight for the V05rage, is not sufficient to make compensation, to each of them, thej shall receive compensation from the oxvner of the vessel in propox-tion to their respective losses; and for that' purpose the freighters and [owner] [owners] of the property, and the owner of the vessel, or any of them, may take the appropriate proceedings in any court, for the purpose of apportioning the sum for which the owner of the vessel may be liable among the parties entitled thereto.”

Section 4285, R. S. (section 8023):

“It shall be deemed a sufficient compliance on the part of such owner with the requirements of this title relating toi his liability for any embezzlement, loss, or destruction of any property, goods, or merchandise, if he shall transfer his interest in such vessel and freight, for the benefit of such claimants, to a trustee, to be appointed by any court of competent jurisdiction, to act as such trustee for the person who may prove to be legally entitled thereto; from and after which transfer, all ¿aims and proceedings against the owner shall cease.”

Respondent contends that by the use of the word “cease” in the statute and in Providence & N. Y. S. S. Co. v. Hill Mfg.

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Cite This Page — Counsel Stack

Bluebook (online)
297 F. 318, 1924 U.S. Dist. LEXIS 1710, Counsel Stack Legal Research, https://law.counselstack.com/opinion/huasteca-petroleum-co-v-cia-de-navegacao-lloyd-brasileiro-nyed-1924.