In re Canadian Pac. Ry. Co.

278 F. 180, 1921 U.S. Dist. LEXIS 854
CourtDistrict Court, W.D. Washington
DecidedSeptember 30, 1921
DocketNo. 4553
StatusPublished
Cited by4 cases

This text of 278 F. 180 (In re Canadian Pac. Ry. Co.) is published on Counsel Stack Legal Research, covering District Court, W.D. Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Canadian Pac. Ry. Co., 278 F. 180, 1921 U.S. Dist. LEXIS 854 (W.D. Wash. 1921).

Opinion

NETERER, District Judge

(after stating the facts as above). [1] The first matter to be determined is the liability of the petitioners under the Riability Act. There is a distinction between a general liability for acts oE omission or commission with relation to imposed duties and liability under the limited liability act. A distinction, then, between the shipowner’s liability under the general maritime law and his liability under the Rimited Riability Act must be kept in mind. The shipowner is liable for any damage for loss caused by a defective condition of his vessel, either in equipment or crew, whether he had knowledge or not. The Riability Act, however, abridges the shipowner’s liability under the general maritime law, and limits it to his interest in the [186]*186ship and freight, unless he has privity or knowledge of deficiency, except as hereinafter stated. Section 4283, R. S. (section 8021, Comp. Stat.):

“The liability of the owner of any vessel * * * for any loss, damage, or injury ⅜ * * done, occasioned, or incurred, without the privity or knowledge of such owner or owners, shall in' no case exceed the amount or value of the interest of such owner in such vessel, and her freight then pending.”
“The rule of custom from which the liability of the ship’s owner is limited is said to have begun in the Middle Ages, and more particularly in the Mediterranean, where commerce first acquired activity, and extended after the fall of the Western Empire. * * * ” 7 Cyc. 383.

Mr. Justice Brown, in The Main v. Williams, 152 U. S. 122, 14 Sup. Ct. 486, 38 L. Ed. 381, said:

“By the common law, as administered both in England and America, the personal liability of the owner of a vessel for damages ⅜ ⅜ ⅛ is « * * limited only by the losses and by his ability to respond. * * * The civil law, too, as well as the general law maritime, made no distinction in this particular in favor of shipowners, * * ⅜ nor did the ancient Laws of Oleron or Wisby or the Hanse towns suggest any restriction upon such liability. Indeed, it is difficult, if not impossible, to say when and where the restrictions of the modern law originated. They are found in the Consolato del Mare, which, in two separate chapters, expressly limits the liability of the part owner to the value of his share in the ship. Vinnius, an early continental writer, states that by the law of the land the owners were not chargeable beyond the value of the ship and the things that were in it. The Hanseatic Ordinance of 1644 also pronounced the goods of the owner discharged from claims for damages by the sale of the ship to pay them. But however the practice originated, it appears, by the end of the seventeenth century, to have become firmly established among the leading maritime nations of Europe, since the French Ordinance of 1681, which has served as a model for most of the modern maritime codes, declares that the owners of the ship shall be answerable for the acts of the master, but shall be discharged therefrom upon relinquishing the ship and freight * * *”

—and held that:

“Being in derogation of the common law * * * the court should not limit the right of the injured party to a recovery beyond what is necessary to -effectuate the purposes of Congress.”

Mr. Justice Nelson, in Moore v. American Transportation Co., 24 How. 1, 16 L. Ed. 674, said:

“The act was designed to promote the building of ships, and to encourage persons engaged in the business of navigation, and to place that of this country upon a footing with England and the continent of Europe.”

Mr. Justice Bradley, in The Norwich v. Wright, 13 Wall. 104, 20 L. Ed. 585, said:

“The great object of the law was to encourage shipbuilding and to induce capitalists to invest money in this branch of industry.”

Again, in P. & N. Y. S. S. Co. v. Hill, 109 U. S. 588, 3 Sup. Ct. 385, 27 L. Ed. 1038, the same justice uses this language:

“In these provisions of the statute we have sketched in outline a scheme of laws and regulations for the benefit of the shipping interest, the value and importance of which to our maritime commerce can hardly be estimated. Nevertheless, the practical value of the law will largely depend on the man-[187]*187nor in which it is administered. If the courts having the execution of it administer it in a spirit of fairness, with a view of giving to ship owners the full benefit of the immunities intended to be secured by it, the encouragement it will afford to commercial operations (as before stated) will be of the last importance!; but if it is administered with a tight and grudging hand, construing every clause most unfavorably against the ship owner, * * * the law will hardly be worth the trouble of its enactment.”

Judge Gilbert, in Boston Marine Ins. Co. v. M. R. L. Co., 197 Fed. 703, 117 C. C. A. 97, said:

“ ⅜ * * The law g]h(rai<3 i,e construed in a spirit of fairness, with a view of giving the shipowner the full benefit of the immunities in1 ended. * * * ”

This sentiment was taken from La Bourgogne, 210 U. S. 95, 28 Sup. Ct. 664, 52 L. Ed. 973.

[2] The claimant urges at the outset that insurance on the vessel should be considered an interest in the vessel, and transferred to the trustee. Testimony of insurance was offered, hut refused, at the trial. This is finally disposed of bv the Supreme Court in the City of Norwich, 118 U. S. 468, at page 493, 6 Sup. Ct. 1150, 1156 (30 L. Ed. 134), where the court said:

“The next question to bo considered is whether the petitioners were bound to account for the insurance money received by them for the loss of the steamer, as a part of their interest in the same. The statute (section 4283), declares that the liability of the owner shall not exceed the amount or value of his interest in the vessel and her freight; and section 4285 declares that it shall be a sufficient compliance with the law, If he shall transfer his interest in such vessel and freight, for the benefit of the claimants, 1o a trustee. Is insurance an interest in the vessel or freight insured, within the meaning ot: tho law?”

And after extended discussion (118 U. S. on page 504, 6 Sup. Ct. 1163, 30 L. Ed. 134) it says:

“We are not only satisfied that the law does not compel the shipowner to surrender his insurance in order to have the benefit of limited liability, but that a contrary result would defeat the principal object of the law.”

For dissenting opinion see The Great Western, 118 U. S. 526, 6 Sup. Ct. 1172, 30 L. Ed. 156.

[3] It is next urged that, the Sophia being of foreign registry, the owner may not take the benefit of the Rimitation Act; but this question is settled by the Supreme Court in The Titanic v. Mellor, 233 U. S. 718, 34 Sup. Ct. 754, 58 L. Ed. 1171, in which it is said:

“Tho general proposition that a foreign ship may resort to the courts of the United States for a limitation of liability under Rev. Stat § 4283, is esr tablished. The Scotland, 105 U. S. 24; La Bourgogne, 210 U. S. 95.”

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Bluebook (online)
278 F. 180, 1921 U.S. Dist. LEXIS 854, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-canadian-pac-ry-co-wawd-1921.