Lake v. The Manhattan

46 F. 797, 1891 U.S. Dist. LEXIS 83
U.S. Circuit Court for the District of Washington·Decided June 22, 1891·Published·Cited by 5 cases

Opinion

HanfoRD, J.

The Manhattan is an uncompleted vessel. The libel-ant built her in this state, and launched her upon Lake Washington, for persons who intended to own and run her upon said lake, but failed to pay the libelant for her construction according to their contract. For this failure to pay him, the libelant sold the vessel to other parties in the condition in which she then was; that is to say, amere hull, without masts, sails, machinery, or other propelling power. The purchasers caused her to be floated or towed upon the waters of Lake Washington, Black river, and Duwamish river to the harbor of the city of Seattle, and thence to a ship-yard owned and managed by the libelant; and after-wards, under a new contract with them, the libelant performed work and furnished materials towards completing and changing the vessel from a side-wheel steamer into a propeller, and there is now due to him the sum of §1,367.96 for said work and materials, and he has a statutory lien therefor by virtue of the laws of this state in force during the time of the performance of the contract. To enforce said lien this suit ⅛ rem [798] against said vessel was brought.’ Her machinery’ has ndt been placed in said vessel, and she has not been surveyed, enrolled, or documented at the custom-house, and she has never been used. Several intervening libels have been filed by parties claiming to have statutory liens for materials furnished and labor performed, and one wherein the intervening libelant claims to have a maritime lien for towing the vessel from the libelant’s yard to the place at which she was to have received her machinery. The claimant alleges that he has purchased the vessel from the parties who purchased her from the libelant and contracted the debts in suit. The evidence has been taken by.a commissioner, who has certified the same to the court with his findings, which findings the court adopts as the facts in the case.

The ground upon which the claimant defends is that the contracts sued on are not maritime, and not cognizable in admiralty, and that therefore the case is not one of which this court can have jurisdiction. The question here presented is not new. ■ The right to sue in the court of admiralty upon contracts of this class is a subject of discussion which our ancestors brought with them from England before the first courts were established in the American "colonies, and the debate upon it has continued through all thé changes which have transpired in the judiciary of the country. The lawyers and litigants continue to contend for the right in the face of decisions of the courts, and they seem to be determined to not accept the decisions, or regard them as being decisive, and the decisions have not been uniform nor harmonious. According to the earliest reported cases, all contracts for building, repairing, and equipping vessels were held to be maritime contracts, and cognizable in the admiralty courts. In the case of Cunningham v. Hall, 1 Cliff. 43, decided by Mr. Justice Clifford very soon after the decision of the supreme court in the case of Ferry Co. v. Beers, 20 How. 393, that learned justice, in his opinion, reported in 1 Cliff. 53, cites the earlier decisions, and in the same connection makes this clear statement:

, “Contracts for the building of ships, where a lien is given under the local law, have heretofore been regarded as maritime, and in repeated instances the lien so created has been enforced by a proceeding in rem, and the practice appears to be fully sanctioned by the twelfth admiralty rule.”

The twelfth admiralty rule, adopted by the supreme court in 1844, which was thus referred to by the justice, reads as follows:

“In all suits by material-men for supplies, repairs, or other necessaries for a foreign ship, or for a ship in a foreign port, the libelant may proceed against the ship and freight in rem, or against the master or owner alone in person-am, and the like proceeding in rem shall apply to cases of domestic ships, where by the local law a lien is given to material-men for supplies, repairs, and other necessaries.”

This rule was amended by the court in 1859, and again in 1872. The decision of the supreme court of the United States in the case of The General Smith, 4 Wheat. 438, (in 1819,) was the beginning of a departure; and from that time until the Lottawanna Case, 21 Wall. 558, was decided, in 1874, the tendency of the decisions was very strongly against [799] maintaining admiralty jurisdiction in cases founded upon contracts of the class under consideration: and for upwards of 30 years past the courts have uniformly held that contracts for the building of ships, and for furnishing materials to be used in the original construction thereof, are not maritime, and that suits founded upon such contracts are not within the admiralty jurisdiction of the courts of the United States. Ferry Co. v. Beers, 20 How. 393; Roach v. Chapman, 22 How. 129; Edwards v. Elliott, 21 Wall. 532; The Orpheus, 2 Cliff. 29. The courts, however, still maintain that contracts for repairing and rebuilding vessels are maritime, and cognizable in admiralty. Peyroux v. Howard, 7 Pet. 324; The Grapeshot, 9 Wall. 129; The Lulu, 10 Wall. 192; The Kalorama, Id. 204; The Lottawanna, 21 Wall. 558, Hen. Adm. 44.

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Lake v. The Manhattan, 46 F. 797, 1891 U.S. Dist. LEXIS 83 (circtdwa 1891).

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