McGrath Corp. v. Vera Cruz Cia. Naviera, S.A.

256 So. 2d 505, 1971 Miss. LEXIS 1151
CourtMississippi Supreme Court
DecidedNovember 22, 1971
DocketNos. 46410, 46411
StatusPublished
Cited by2 cases

This text of 256 So. 2d 505 (McGrath Corp. v. Vera Cruz Cia. Naviera, S.A.) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McGrath Corp. v. Vera Cruz Cia. Naviera, S.A., 256 So. 2d 505, 1971 Miss. LEXIS 1151 (Mich. 1971).

Opinion

BRADY, Justice:

This is an appeal from the Chancery Court of Jackson County, Mississippi, wherein the chancellor sustained general demurrers filed by the appellees together with motions to quash the attachments and dismiss the bills for lack of jurisdiction. On motion of the .appellants,, complainants below, authority to appeal to this Court with supersedeas was granted. The appellants initially were John W. McGrath Corporation and four other stevedore corporations and “Fribexport” Agricultural Export Corporation. They had filed individual suits of attachment in chancery court. After permission was granted to appeal, the cases were consolidated by order of this Court.

The basic facts in the complaint filed on behalf of McGrath Corporation, et al., hereinafter called McGrath, averred that Vera Cruz, a foreign corporation, was indebted to it in the amount of $182,694.97 for “stevedoring and other services.” The bill on the part of “Fribexport” averred that Vera Cruz was indebted to it in the amount of $14,550.32 due to an alleged violation of a charter party by Vera Cruz. In all other respects the bills of complaint are identical, each averring that Ingalls Shipbuilding, a division of Litton’s System, Inc., hereinafter called Ingalls, was indebted to Vera Cruz in an unknown amount by reason of a judgment entered by the United States District Court for the Southern District of Mississippi, Southern Division. The pertinent part of the judgment is as follows:

ORDERED, ADJUDGED AND DECREED that Plaintiffs and Third-Party Defendant and counter-claimant Vera Cruz Cia. Naviera, S. A. recover of and from Defendant Ingalls Shipbuilding Division of Litton Systems, Inc. their losses and damages, sustained by them as a result of the collision of the M/V STELLA MARIS with Ingalls’ No. 1 way on June 5, 1969, plus interest at six percent per annum from the date hereof and Ingalls must reimburse them for any contributions they may be called upon to make in General Average and/or salvage, plus interest at six percent per annum fom the date hereof, together with costs, and that if within (30) days after the adjustment of General Average has been completed the parties have not stipulated the computation of damages, Plaintiffs and Vera Cruz Cia. Na-viera, S. A. may apply to the Court to set a date for trial on the question of damages. * * *

Appellants’ bill of complaint for attachment in chancery is based upon Mississippi Code 1942 Annotated section 2733 (1956) insofar as the appellee Vera Cruz is concerned. Insofar as Ingalls is concerned, appellants’ bill for attachment is based .upon Mississippi Code 1942 Annotated section 2729 (1956).

However, in their brief, appellants state there is one simple issue before this Court and that is simply whether or not the judgment rendered by the United States District Court against the appellant Ingalls in favor of Vera Cruz is subject to attachment under Mississippi Code 1942 Annotated section 2730 (1956).

Although the appellants assign three errors, they argue only two. The first error urged is that the chancellor erred in dismissing this cause for the reason that the judgment rendered against Ingalls in the United States District Court for the Southern District of Mississippi in favor of Vera [507]*507Cruz Cia., Naviera, S. A. was not subject to attachment under Mississippi Code 1942 Annotated section 2729 (1956). In support of the error urged, appellants point out that it is rare in American Jurisprudence that when a judgment as to liability is entered in a court, the damages cannot be immediately determined because of a problem in calculation. Appellants urge that this is true in the case at bar and assert that there are no Mississippi cases directly in point. Nevertheless, appellants urge that the case of American National Insurance Co. v. United States Fidelity & Guaranty Co., 215 So.2d 245 (Miss.1968), should be controlling on the issue before this Court. Appellants urge that the law as it has been determined in Mississippi is traced in detail in that case.

Appellants further urge that our garnishment statutes and attachment statutes are so closely related as laid down in American National Insurance Co. v. United States Fidelity & Guaranty Co., supra, that they can be applied to attachments in chancery. Appellants accurately state that attachment in chancery is a statutory proceeding in derogation of common law and therefore must be strictly followed. Rankin v. Dulaney, 43 Miss. 197 (1870). However, this Court has held that this must be construed liberally for the benefit of creditors and for the advancement of justice and the suppression of fraud. Bank of Augusta v. Conrey, 28 Miss. 667 (1855); Bryan v. Lashley, 13 S. & M., 21 Miss. 284 (1850); Dandridge v. Stevens, 12 S. & M., 20 Miss. 723 (1849).

Appellants itrge that they are favored under the law and that the appellee Vera Cruz is the debtor seeking to avoid payment. The gravamen of appellants’ contention is that the judgment obtained in the Federal Court clearly establishes the liability of appellee Ingalls to Vera Cruz and that the amount under the judgment was to be determined by “General Average,” which is a procedure under Maritime law for determining the amount of damage due to claimants for losses ex delicto to ship cargo, freight or other interests and the possible settlement thereof. Appellants contend further that when the exact amount has been determined by general average and the parties could not agree thereto that the court would determine by trial the amount of damages due by appellants.

Relying upon American National Insurance Co. v. United States Fidelity & Guaranty Co., supra, appellants urge that there is no contingency or question as to the appellees’ liability, the only contingency being the amount of damages to be awarded. In American National Insurance Co. v. United States Fidelity & Guaranty Co., supra, the basis of appellants’ assertions is to be found in 38 C.J.S. Garnishment § 87 (1943), cited therein. In that case garnishment proceedings were brought by the principal’s fidelity insurer against the agent’s fidelity insurer. A judgment was entered in the circuit court in favor of the agent’s insurer and the principal’s insurer appealed. As reflected in the synopsis, this Court held that the insurer which had insured the loan agent from loss was liable to the insurer which had insured the principal against loss of money sustained through the acts committéd by a loan agent and which was entitled to subrogation to principal’s judgment against the loan agent for the amount of the loan collections the agent’s employee had misappropriated.

This Court reversed the lower court and rendered judgment for the garnishor. We pointed out in that case that a debtor’s claim which is uncertain or contingent in the sense that it may never become due and payable is not garnishable' and we cited Mississippi Code 1942 Annotated section 2783 (1956). We pointed out that that section of the code did not permit an un-liquidated tort liability for damages to be subject to garnishment. We pointed out further, however, in that case that where the claim against the garnishee is certain as to liability but contingent as to the amount and where the amount is capable of definite ascertainment that the claim is [508]*508garnishable under said section 2783. We said specifically:

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Bluebook (online)
256 So. 2d 505, 1971 Miss. LEXIS 1151, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcgrath-corp-v-vera-cruz-cia-naviera-sa-miss-1971.