Lehigh Valley R. Co. v. State of Russia

21 F.2d 396, 1927 U.S. App. LEXIS 2727
CourtCourt of Appeals for the Second Circuit
DecidedAugust 8, 1927
Docket318, 319
StatusPublished
Cited by64 cases

This text of 21 F.2d 396 (Lehigh Valley R. Co. v. State of Russia) 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
Lehigh Valley R. Co. v. State of Russia, 21 F.2d 396, 1927 U.S. App. LEXIS 2727 (2d Cir. 1927).

Opinion

MANTON, Circuit Judge.

The defendant in error has recovered a judgment against the plaintiff in error for loss of explosives and ammunition while in transit from the United States to Russia and while in its possession as carrier in its freight yards at Jersey City, N. J. The loss is due to a fire and explosion occurring July 30, 1916, and it is admitted that the fire was incendiary in its origin. The action by the defendant in error was instituted by the Russian government, and after the deposition of the then government of Russia, pursuant to an order granted, the action was continued in the name of the state of Russia.

Eight carloads of high explosives were on the same railroad siding, and, separated by a single ear, on the same siding were seven cars of benzol and wet nitrocellulose; on an adjoining track wore seven cars of ammunition of cannon. In the same vicinity were eight other cars of ammunition of cannon, two cars .of combination fuses, and another ear of benzol. A fire started in a car of ammunition prior to the first explosion, which occurred on a barge in the North River, which barge was also loaded with explosives, and then another explosion occurred in a car in the terminal. The barge was owned and operated by the Johnson Lighterage Gompany. After the fire started, no one, because of fear of the result that might follow from the explosive materials, attempted to put out the, fire. . Neither the railroad men, private detectives, nor the city firemen attempted to apply water or otherwise combat the fire, with one exception, a crew of the railroad men, who succeeded in removing some cars to a place of safety. Some lost their lives in this act. The railroad company failed to maintain a locomotive at the Black Tom Terminal, and the engine used in removing these cars was brought 2% miles from Communipaw yards. At the time there was in force regulation No. 1906, which provided that, in ease of fire, to protect cars marked by placards “Inflammable,” they should bo quickly isolated.. But in any case the explosions occurred before the engines arrived. Liability was imposed below because of the breach of the railroad’s; obligation as a common carrier; as supplemented by the Carmaqk Amendment (Comp, St. § 8604a [49 USCA § 20]), under the terms of the bills of lading issued.

There is a companion case (C. C. A.) 21 F.(2d) .406, referred to as action No. 2, but which is based upon the theory of negligence, which was tried at the same time. The trial of this- action was suspended; and’ action No, 2 was begun and concluded, before the same judge, but a different jury. It involved the destruction of war materials, aluminum, and other property in a nearby warehouse. The parties in writing stipulated that the specific findings, answering two questions -propounded to the jury in action No. 2, might be used as facts in- action No. 1. The jury found that the fire originated in the railroad terminal and the first explosion occurred on the barge Johnson No. 17. It also found, in action No. 2, that the railroad company’s sole negligence was the proximate cause of the loss of the aluminum in the warehouse.

At the outset the railroad company attacks the right of the defendant in error to maintain the suit, and to do so in the courts of the United States. The right to recover damages for breach of this carrier’s obligation became the property of the state of Russia on July 30, 1916, when the loss occurred. The government was then the Russian Imper rial Government. • The right of a foreign government to sue is now well-recognized. Oetjen V. Central Leather Co., 246 U. S. 297, 38 S. Ct. 309, 62 L. Ed. 726; The Sapphire, 78 U. S. (11 Wall.) 164, 20 L. Ed. 127. It is equally a settled rule of law that the foreign *400 relations of onr government are committed by the Constitution to the executive and legisla^ tive departments of our government, and what is done by such departments is not subject to judicial inquiry or decision. In re Cooper, 143 U. S. 472, 12 S. Ct. 453, 36 L. Ed. 232; Williams v. Suffolk Ins. Co., 13 Pet. 420, 10 L. Ed. 226; United States v. Palmer, 3 Wheat. 610, 4 1. Ed. 471; The Penza (D. C.) 277 E. 91. Who may be the sovereign de jure or de facto of a territory is a political question; not judicial. Oetjen v. Central Leather Co., supra; Jones v. United States, 137 U. S. 212, 11 S. Ct. 80, 34 L. Ed. 691. The state is a community or assemblage of men, and the government the political agency through which it acts in international relations. State of Texas, v. White, 7 Wall. 700, 19 L. Ed., 227; Cherokee Nation v. Georgia, 5 Pet. 52, 8 L. Ed. 25; Foulke, International Law, vol. 1, pp. 62, 82, 102, 192. The foreign state is the true or real owner of its property, and the agency the representative of the national .sovereignty. The Sapphire, supra; The Rogdai (D. C.) 278 F. 294.

On July 5, 1917, Mr. Boris Bakhemeteff was recognized by our State Department as the accredited representative of the Russian government — the provisional Russian Government — as successor to the Imperial Russian Government. He continued as such until July 30, 1922. At that date he retired, and the custody of the property of the Russian government, for which Bakhemeteff was responsible] was recognized by the State Department to vest in Mr. Ughet, the financial attache of the Russian embassy. The Soviet government, which later secured control of the Russian government, was never recognized by our State Department, and ever since the diplomatic status with our government was never altered by the termination of the ambassador’s duties. Therefore the provisional Russian Government is the last that has been recognized, and after its ambassador retired its property was considered by the State Department to vest in its financial attache. Prior to his retirement, and while the accredited ambassador, Mr. Bakhemeteff authorized the suits here considered, which were commenced July 23, 1918.

Various preliminary attacks by motions to dismiss the complaint have been made, and the District Court has in each instance properly denied them, recognizing the principles of law referred to and their application to the fact that there has been no change recognized in the government or agency for Russia by the political branches of our government. Mr. Ughet, by the State Department’s determination, is entitled to the custody in the United States of the' property of Russia, and as part of that duty he was authorized to continue the suits for the state of Russia. This duty became obvious. It became important to avoid efforts to destroy the right of action as a basis of keeping its property, when motions to dismiss were made and delays occurred which would give rise to the bar of limitation to sue. The question of Mr. Ughet’s power under his agency is generally important, because of the change in name of the plaintiff in the action to the state of Russia in substitution of the Imperial Russian Government. We must judicially recognize that the state of Russia survives.

Abatement of the action or a dismissal could only be sustained by reason of the nonexistence of the state, or the action of our government to no longer recognize the agency once accredited and never revoked. The action was properly started by an unquestioned agency. The attorneys and the agency thus employed were obliged to continue until some other government was recognized. It has been recognized that diplomatic agents of one state, while in another, may commence and maintain actions on behalf of their state while they are recognized as such. Republic of Mexico v. De Arangoiz, 12 N.

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Bluebook (online)
21 F.2d 396, 1927 U.S. App. LEXIS 2727, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lehigh-valley-r-co-v-state-of-russia-ca2-1927.