Kunglig Jarnvagsstyrelsen v. United States

19 F.2d 761, 1927 U.S. App. LEXIS 2332, 1927 A.M.C. 866
CourtCourt of Appeals for the Second Circuit
DecidedMay 9, 1927
Docket281
StatusPublished
Cited by16 cases

This text of 19 F.2d 761 (Kunglig Jarnvagsstyrelsen v. United States) 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
Kunglig Jarnvagsstyrelsen v. United States, 19 F.2d 761, 1927 U.S. App. LEXIS 2332, 1927 A.M.C. 866 (2d Cir. 1927).

Opinions

MANTON, Circuit Judge.

The appellant, a Swiss corporation, with no office, place of business, or agent in the United States, sought to maintain this libel, filed under the Suits in Admiralty Aet approved March 9, 1920, to recover for loss of cargo. On May 8, 1920, at the port of Philadelphia, Pa., a shipment of coal was made on the steamship Alderman, and bills of lading were issued. Later the coal was sold to the appellant and the bills of lading transferred. The ship sailed for Mahno, Sweden, and on the 9th of May was obliged to turn back to Philadelphia because of an accident. It remained in the port of Philadelphia until December, 1921. The libel alleged that, because of negligence of the master and agents of the ship in stowing and caring for the coal, it became overheated and caught fire on July [762]*76220, 1920, and again on August 1, 1920; that eventually the vessel was discharged and the coal sold in Philadelphia for $2 a ton; that the lihelant has received no part of the proceeds o£ this sale, and that the coal has become a total loss to it.

Exceptions were filed to this libel by the appellee because (a) it failed to allege that the libelant was a resident or had a principal place of business within the district; (b) or that the steamship was found within the district at the time the libel was filed; (e) that it failed to allege that the claimed cause of action set forth is within the admiralty jurisdiction of the court, and (d) it failed to allege when the claimed cause of action arose.

The District Judge sustained the exceptions, because the suit was not brought within the Eastern district of Virginia, where the ship was located at the time the libel was filed. He said that it should be definitely pleaded that the cause of action arose within the statutory period of limitation, and pointed out that, if it be established that the vessel was within the Eastern district of Virginia, the court may have jurisdiction to transfer the case to the proper district for trial.

An application was made to transfer the suit, and this was denied for want of power to grant such removal. The affidavit in support of the application for removal set forth that the libelant intended to move to amend the libel, showing that the steamship Aider-man mentioned and described in the libel was at the time of the filing thereof in the state of Virginia.

Jurisdiction under section 2 of the Suits in Admiralty Act (Act March 9, 1920, e. 95, 41 Stat. 525 [Comp. St. § 1251%a] provides :

“Such suits shall be brought in the district court of the United States for the district in which the party so suing, or any of them, reside or have their principal place of business in the United States, or in which the vessel or cargo charged with liability is found.”

This section was considered in Nahmeh v. United States, 267 U. S. 122, 45 S. Ct. 277, 69 L. Ed. 536, and the court held, in construing the section that Congress was evidently anxious to consult the convenience of intending libelants, and in taking away what was then protected by the law, namely, the rights of claimants to sue merchant vessels of the United States, as if they were private vessels, and as the United States is present everywhere in the United States, libelants may name as the proper place for suit, either the place of residence of the parties suing, or of any one of them or their present place of business, or where the vessel or cargo charged with liability was found. In Eastern Transportation Co. v. United States (decided January 3, 1927) 47 S. Ct. 289, 71 L. Ed. —, by the Supreme Court, a suit was brought by a Maryland corporation in the Eastern district of Virginia. The decision points out the great liberality of construction of the Suits in Admiralty Act (Comp. St. §§ 1251% to 1251%!) in favor of libel-ants. It plainly exhibits an intent to subject merchant vessels of the United States to the responsibility of privately owned vessels. It points out that questions of venue may be waived.

The provisions of section 2, as to the district in which suits may be brought, refer to where the venue of the suits may be laid; also to which it may be removed under the following language: “Upon application of either party the cause may, in the discretion of the court, be transferred to any other District Court of the United States.” It has .been held that a libel in admiralty may be maintained against a corporation in any district by service there upon an attorney, appointed by the corporation, as required by the statutes of the state for service of legal process. In re Louisville Underwriters, 134 U. S. 488, 10 S. Ct. 587, 33 L. Ed. 991. The District Court has jurisdiction, unless dismissed for defects in venue.

This act was passed for the purpose of relieving the United States from obstruction of its commercial traffic by the seizure of merchant vessels owned by it or under its control, and was intended to substitute an equivalent remedy against the United States in personam for the right in rem agajnst the vessel which the Act of September 7, 1916, § 9, e. 451, 39 Stat. 728 (Comp. St § 8146e), had permitted. Blamberg v. United States, 260 U. S. 452, 43 S. Ct. 179, 67 L. Ed. 346; Shewan & Sons v. United States, 266 U. S. 108, 45 S. Ct. 45, 69 L. Ed. 192.

By the exceptions filed, not only is an attack made upon the venue of the suit, but the sufficiency of the libel. The tenth paragraph of the libel pleads that the District Court has jurisdiction in the premises.

Article 3 of the exceptions filed pleads that “the libel fails to allege that the claimed cause of action set forth is within the admiralty jurisdiction of this court,” and article 4 that it fails to allege “when the claimed cause of action arose.” Article 5 is an exception to the eleventh interrogatory attached to the [763]*763libel, because it calls for information which is “immaterial, in that it is not germane to the alleged cause of action.” These exceptions do not raise merely the question of the jurisdiction of the court as such. There is a plea to the merits of the controversy. We have in name a special appearance, but in fact a general appearance. The jurisdiction of the District Court as such is accepted by the appellee to determine the sufficiency of the libel and, indeed, the controversy on the facts and law. Thames & Mersey Ins. Co. v. United States, 237 U. S. 19, 35 S. Ct. 496, 59 L. Ed. 821, Ann. Cas. 1915D, 1087; Jones v. Andrews, 77 U. S. (10 Wall.) 327,19 L. Ed. 935. By this pleading, a general appearance was made in the District Court, which, under article 10 of the libel, was claimed to have jurisdiction. And Congress by Suits in Admiralty Act, § 2, granted jurisdiction to the court in personam of the United States. It likewise provided for correction of a defect of venue by transfer to the proper district.

In United States v. N. Y. & O. S. S. Co. (C. C. A.) 216 F. 61, we pointed out the difference between jurisdiction of the subject-matter and of the venue of the suit, holding that the general intent of the act there under consideration — the Tucker Act (24 Stat.

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Kunglig Jarnvagsstyrelsen v. United States
19 F.2d 761 (Second Circuit, 1927)

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Bluebook (online)
19 F.2d 761, 1927 U.S. App. LEXIS 2332, 1927 A.M.C. 866, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kunglig-jarnvagsstyrelsen-v-united-states-ca2-1927.