In re Whitelaw

71 F. 733, 1896 U.S. Dist. LEXIS 53
CourtDistrict Court, N.D. California
DecidedJanuary 8, 1896
DocketNo. 11,156
StatusPublished
Cited by8 cases

This text of 71 F. 733 (In re Whitelaw) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Whitelaw, 71 F. 733, 1896 U.S. Dist. LEXIS 53 (N.D. Cal. 1896).

Opinion

MORROW, District Judge.

A petition for a limitation of the liability of the owners of the wrecking schooner Sampson, under the provisions of sections 4282 et seq., Rev. St. U. S. (Act 1851), was filed in this court on April 10, 1895. In accordance with the prayer of the petition, a monition returnable July 16, 1895, citing all persons to appear who had any claims against said vessel, etc., or her owners, was issued; also an order restraining the prosecution of two suits pending in the state court against the owners of the vessel. Thereupon the plaintiffs in these suits filed tlieir claims in this court against said vessel and her owners, and have demurred to the petition, and also entered a motion to dissolve the restraining order. The only real question presented for decision by the demurrer and motion to dissolve is whether this court, having original and exclusive jurisdiction of the limitation of liability proceedings, can enjoin tbe suits in the state court. It is to be observed that the suits in the state court were commenced prior to the institution of the proceedings to limit the liability of the owners.

Section 720, Rev. St., is cited in support of the motion to dissolve. It provides as follows:

“The writ of injunction shall not he granted by any court of the United States, to stay proceedings in any court of a state, except in cases where [734]*734such injunction may be authorized by any law relating to proceedings in bankruptcy.”

This provision, as originally enacted, and contáined in the fifth section of the act of March 2, 1793 (1 Stat. 335), did not include the exception relative to bankruptcy proceedings; otherwise it is substantially the same. Following the rule of interpretation contained in the maxim, “Expressio unius est exclusio alterius,” the provision would seem to apply to all proceedings other than those specially excepted, and would therefore be applicable to a proceeding to limit the liability of shipowners under the act of 1851, in view of the fact that the only exception specified is that relating to “proceedings in bankruptcy.” But when we come to examine critically the language of the act limiting the liability of shipowners, and the decisions and rules of the supreme court providing a method of procedure, among which the writ of injunction forms an orderly part, and when we consider the plain object and scope of the proceedings, and the benefits to be reached thereby, there will, I think, be little, if any, doubt that section 720 is inapplicable.

In the first place, it has been determined that the limited liability act of 1851 “is nothing more than the old maritime rule, administered in courts of admiralty in all countries except England, from time immemorial; and, if it were not so, the subject-matter itself is one that belongs to the department of maritime law.” Providence, etc., S. S. Co. v. Hill Manuf'g Co., 109 U. S. 578, 3 Sup. Ct. 379, 617.

In Butler v. Steamship Co., 130 U. S. 555, 9 Sup. Ct. 612, it was said:

“The law of limited liability, as we have frequently had occasion to assert, was enacted by congress as a part of the maritime law of this country, and therefore is coextensive, in its operation, with the whole territorial domain. of that law.”

Norwich Co. v. Wright, 13 Wall. 104, 127; The Lottawanna, 21 Wall. 558, 577; The Scotland, 105 U. S. 24, 29, 31.

The act of 1851 did not designate the court in which the proceedings to limit the liability of the shipowners should be instituted, nor did it specify any regular method of procedure. When the act was reproduced in the Revised Statutes, in sections 4282 et seq., these deficiencies were not supplied. But the supreme court has settled any question of doubt in that connection, and rendered the act efficient in its workings. In the case of Norwich Co. v. Wright, 13 Wall. 104, where the act seems to have first come up for consideration before the supreme court, it was held that, although the act did not specify in which court the proceedings to obtain the benefit of the limitation of liability should be instituted, yet that no court is better adapted than a court of admiralty to grant the relief contemplated by the act, and that, therefore, the district courts, as courts of admiralty, had original and exclusive jurisdiction of the proceedings. It is also now well settled that such proceedings in the appropriate district court of the United States supersede all other acts and suits for the same loss or damage in the state or federal courts, upon the matter being properly pleaded therein, and that the effect [735]*735of swell proceeding in superseding oilier actions and suits does not depend upon the award of an injunction by the district court, but upoii the object and intrinsic character of the proceedings themselves and (he express language of the act of congress. Providence, etc., S. S. Co. v. Hill Manuf’g Co., supra; Butler v. Steamship Co., supra. It is also clear that the act contemplated that there should be but one litigation; that the shipowner should establish his right to a limitation of his liability; and that the claimants for damages should contest such application, and present and litigate their claims against the res or fund, and against the owner thereof, in one and the same suit or proceeding.

As was said in Butler v. Steamship Co., supra:

“The benefieient object of the law in enabling the shipowner to bring all parties into concourse wlxo have claims arising out of the disaster or loss, and thus to prevent a multiplicity of actions, and to adjust the liability to the value of the ship and freight, has been commented on in several cases that have come up before this court, notably in the cases of Norwich Co. v. Wright. 13 Wall. 104, and Providence, etc., S. S. Co. v. Hill Manuf’g Co., 109 U. S. 578, 3 Sup. Ct. 379, 617.”

That there should not be any proceedings in other courts is plain from the provision contained in section 4285, Rev. St. U. S. This section, after providing for a transfer of the interest of the owners in the vessel and freight to a trustee for the benefit of the claimants, reads: “From and after which transfer all claims and proceedings against the owner or owners shall cease.” While the act does not, in terms, provide for the process of injunction, yet it is evident that the supreme court regarded such proceeding as implied and included in the peremptory provision that “all claims and proceedings against the owner or owners shall cease.”

In speaking of the proper course to be pursued to obtain the benefit' of the act, Mr. Justice Bradley, in Norwich Co. v. Wright, supra, said:

“Having dono this [filed a petition for limitation of liability, and surrendered tlie ship and freight], the shipowner will be entitled to a monition against all persons to appear and intervene pro interesse suo, and to an order restraining the prosecution of other suits, if an action should be brought in a state court, the shipowner should file a libel in admiralty, with a like surrender or deposit of the fund, and either plead the fact in' bar in the state court or procure an order from the district court to restrain the further prosecution of the suit.

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Bluebook (online)
71 F. 733, 1896 U.S. Dist. LEXIS 53, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-whitelaw-cand-1896.