Netherlands American Steam Nav. Co. v. Gallagher

282 F. 171, 1922 U.S. App. LEXIS 2603
CourtCourt of Appeals for the Second Circuit
DecidedMarch 8, 1922
DocketNo. 142
StatusPublished
Cited by18 cases

This text of 282 F. 171 (Netherlands American Steam Nav. Co. v. Gallagher) 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
Netherlands American Steam Nav. Co. v. Gallagher, 282 F. 171, 1922 U.S. App. LEXIS 2603 (2d Cir. 1922).

Opinion

ROGERS, Circuit Judge

(after stating the facts as above). This ease presents an interesting and important question, involving the jurisdiction of the courts of the United States and the applicability of the laws of a state .to the cause of action which the plaintiff asserts. As the plaintiff at the time of his injury was performing service as a stevedore in unloading an ocean steamer at her pier in Hoboken, and the injury happened to him on the pier, it is necessary, in determining the' issues involved, to consider the limits of the admiralty and maritime jurisdiction of the federal courts.

The limits of the admiralty and maritime jurisdiction, as distinguished from the jurisdiction of the common-law courts, have not been precisely defined, and this fact has led to much embarrassment and controversy. In England the courts of admiralty have exercised a more limited jurisdiction than the like courts in Ireland, and in Scotland the admiralty courts have exercised a more comprehensive jurisdiction than the same courts have enjoyed in either Ireland or in England; and as Judge Story in his Commentaries on the Constitution, vol. 2, p. 450, points out, the limits of the admiralty jurisdiction have been a matter of “heated controversy” between the courts of common law [174]*174and the High Court of Admiralty in England, with alternate success and defeat. In the United States the courts of admiralty have exercised a much more extensive jurisdiction than have the like courts in England.

For ,a time there was perhaps no subject in this country concerning which the rulings of the federal courts were so wanting in uniformity as upon the admiralty jurisdiction. It is still true that on some matters pertaining to this jurisdiction much uncertainty still prevails, to the embarrassment of courts and litigants. In 1861 Mr. Chief Justice Taney, in The Steamer St. Eawrence, 1 Black, 522, 527, 17 L. Ed. 180, after referring to the fact that circumstances rendered it difficult to define the exact limits of the admiralty and maritime jurisdiction of the United States, said:

“And the reports of the decisions of this court will show that the subject has often been before it, and carefully considered, without being able to fix with precision its definité boundaries; but certainly no state law can enlarge it, nor can an act of Congress or rule of court make it broader than the judicial power may determine to be its true limits.”

The Constitution (article 3, § 2) provides that the judicial power of the United States shall extend to all cases of admiralty and maritime .jurisdiction. The jurisdiction thus conferred embraces two classes of civil cases. The first respects acts or injuries done upon navigable waters. The second respects contracts purely maritime, and touching rights and duties pertaining to commerce and navigation. The first of these classes is usually divided into two subdivisions—one embracing captives and questions of prize arising jure belli; and the other acts, torts, and injuries of civil cognizance, independent of belligerent operations. 2 Story, Com. on Const.- (4th Ed.) § 1666. The admiralty and maritime jurisdiction extends, then, to maritime contracts and to maritime torts. And as the cause of action in the case now before the court is not one brought on the contract, but is one brought to recover for the tort, which tort is not maritime, it is not one which is within the admiralty and maritime jurisdiction.

The Judiciary Act o'f 1789, which vested in the courts of the United States exclusive jurisdiction of all civil causes of admiralty and maritime jurisdiction, contained a provision saving to suitors in all cases the right of a common-law remedy, where the common law is competent to give it. 1 Stat. 77, § 9. That provision has never been repealed, and has been held constitutional. The Moses Taylor, 4 Wall. 411, 18 L. Ed. 397. It is not a remedy in the common-law courts which is saved, but a common-law remedy. So it has been held that a mariner may sue in a state court in personam to recover his wages, as the common law is as competent ás the admiralty to give him a remedy in such a case. Leon v. Galceran, 11 Wall. 185, 20 L. Ed. 74. In such cases, the contract being maritime, the state and federal courts exercise a concurrent jurisdiction. But in cases of tort, if the tort is non-maritime, it is not within the maritime jurisdiction, and relief is to be had in a common-law action in the state courts.

The admiralty jurisdiction, of course, extends to maritime contracts; for such contracts are regulated and enforced by maritime law. Ben[175]*175edict’s Admiralty (4th. Ed.) § 143. Assuming that the plaintiff was employed as a stevedore, his contract to render service in loading or unloading a ship is to be regarded as a maritime contract. In the case of New Jersey Navigation Co. v. Merchants Bank, 6 How. 344, 12 L. Ed. 465, Mr. Justice Nelson, speaking for the court as to the admiralty jurisdiction in matters of contract, stated that the inquiry was as to—

“the nature and subject-matter of the contract, whether it was a maritime contract, and the service a maritime service, to be performed upon the sea or upon waters within the ebb and flow of the tide.”

The last distinction, based on the ebb and flow of the tide, has since been abrogated by later decisions of the court; for since the case of The Propeller Genesee Chief v. Fitzhugh, 12 How. 443, 13 L. Ed. 1058, decided in 1851, it has been established that the admiralty and maritime jurisdiction of the federal government is not limited to tide waters but extends to all public navigable waters where commerce is carried on between the states or with a foreign nation. And in The Robert W. Parsons, 191 U. S. 17, 24 Sup. Ct. 8, 48 L. Ed. 73, decided in 1903, it was declared to extend to the Erie Canal, although wholly within a single state, as being a great highway of commerce between ports in different states and foreign countries. In The Belfast, 7 Wall. 624, 19 L. Ed. 266, Mr. Justice Clifford, speaking of the jurisdiction of the admiralty in matters of contract, stated that it depended on the nature of the contract.

[1] The question whether a contract is maritime or not depends-in-this country simply on the subject-matter of the contract, and not on the place where the contract is made. While the contrary rule was established in England, it was not without protest, and in Menetone v. Gibbons, 3 Term, 269, Lord Kenyon recognized the absurdity of the English rule and said:

“If tbe admiralty has jurisdiction over the subject-matter, to say that it is necessary for the parties to go upon the sea to execute the instrument borders upon absurdity.”

The English courts have placed a more restricted construction upon the limits of the admiralty jurisdiction than have the courts of the United States. As was pointed out by Mr. Justice Bradley in Insurance Co. v. Dunham, 11 Wall. 1, 24, 20 L. Ed. 90, it has been held in England with respect to contracts that, with the exception of the cases of seamen’s wages and bottomry bonds, no contract was allowed to be prosecuted in the admiralty, unless it was made upon the sea, and was to be executed upon the seaand even then it had to be under seal. But the courts of the United States have taken a more enlarged view of the subject.

[2]

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Bluebook (online)
282 F. 171, 1922 U.S. App. LEXIS 2603, Counsel Stack Legal Research, https://law.counselstack.com/opinion/netherlands-american-steam-nav-co-v-gallagher-ca2-1922.