New Jersey Barging Corp. v. T. A. D. Jones & Co.

135 F. Supp. 97, 1955 U.S. Dist. LEXIS 2536
CourtDistrict Court, S.D. New York
DecidedSeptember 6, 1955
DocketAd. Action 183-398
StatusPublished
Cited by10 cases

This text of 135 F. Supp. 97 (New Jersey Barging Corp. v. T. A. D. Jones & Co.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
New Jersey Barging Corp. v. T. A. D. Jones & Co., 135 F. Supp. 97, 1955 U.S. Dist. LEXIS 2536 (S.D.N.Y. 1955).

Opinion

LUMBARD, Circuit Judge.

This is a proceeding in admiralty brought by petitioner, New Jersey Barging Corp., a Delaware corporation, for exoneration from or limitation of liability with respect to an incident which occurred on September 27, 1954 at New Haven, Connecticut. On that day petitioner’s barge, the Perth Amboy No. 1, under charter to the James McWilliams Blue Line, Inc., was loading a cargo of oil at the docks owned by respondent T. A. D. Jones and Company, Inc. The barge was loaded beyond capacity and as a • result a large quantity of oil was spilled into the New Haven harbor. This oil caused extensive damage to numerous ships and shore facilities and property. Petitioner brought this action on December 7, 1954 basing jurisdiction on the fact that the Perth Amboy No. 1 was at that time located in the waters of this judicial district. Numerous claims were filed, totalling over $600,000.

T. A. D. Jones and Company filed a claim by mail but has not answered the petition seeking exoneration or limitation although the time for answering has expired. T. A. D. Jones and Company is a Connecticut corporation which does not do business in New York.

Petitioner now seeks to implead T. A. D. Jones and Company alleging that the above described accident was caused exclusively by the fault of said company’s employees and praying that T. A. D. Jones and Company be cited to appear, that it be made a defendant in the action, *99 that all claimants be required to answer, and that the claimants be granted recovery directly against T. A. D. Jones and Company or in the alternative that the petitioner be granted recovery against T. A. D. Jones and Company in an amount sufficient to indemnify it for all claims allowed against it, together with all costs of the action. This motion to implead is opposed by T. A. D. Jones and Company and by certain of the claimants. There is also a motion before the court by some of the claimants requesting that this action be transferred to the District of Connecticut.

I am of the opinion that petitioner’s motion to implead T. A. D. Jones and Company must be denied. By its impleading petition the New Jersey Barging Corp. seeks to convert this action from a proceeding to limit its own liability under 46 U.S.C.A. § 185 to a proceeding by the claimants against T. A. D. Jones in which it becomes little more than an interested onlooker. It would be odd, indeed, if a shipowner could, by the device of a limitation of liability proceeding, initiate on the behalf of claimants it does not represent an action against a corporation in a jurisdiction where it could not otherwise be sued. Nor can I find any basis for permitting petitioner to recover in this proceeding whatever claims it may have against T. A. D. Jones.

Rule 56 of the Admiralty Rules, 28 U.S.C.A. provides: “In any suit, whether in rem or in personam, the claimant or respondent (as the case may be) shall be entitled to bring in any other vessel or person (individual or corporation) who may be partly or wholly liable either to the libelant or to such claimant or respondent by way of remedy over, contribution or otherwise, growing out of the same matter.”

It has been held that a limitation of liability proceeding is a special statutory proceeding and is not a “suit” within the meaning of the above quoted language. Department of Highways of State of Louisiana v. Jahncke, 5 Cir., 1949, 174 F.2d 894. In that case a claimant in a limitation of liability proceeding sought without success to implead a third party. The decision in the Jahneke case is consonant with the nature and purpose of a limitation of liability proceeding. It is a special proceeding created by statute for a special purpose. It is intended to enable a shipowner to assert his statutory right to limitation of liability in a single proceeding against all claimants. It is a defensive action. Judge Learned Hand pointed this out in Algoma Central & Hudson Bay Ry. Co. v. Great Lakes Transit Corp., 2 Cir., 1936, 86 F.2d 708, 710, where he observed: “At no time can the owner recover a dollar by means of it from anybody.” Thus a petitioner may not seek affirmative recovery by filing a cross-libel against a damage-claimant. The Steel Inventor, D.C.S.D.N.Y., 1925 A.M.C. 226; see 2 Benedict on Admiralty 455 (6th Ed. 1940). It has also been held that a petitioner in a limitation of liability proceeding cannot implead a third party, as petitioner seeks to do here. Petition of Texas Co., D.C.S.D.N.Y.1948, 81 F.Supp. 758; Poling Bros. No. 5-Tom Wogan, D.C.E.D.N.Y., 1937 A.M.C. 1513; but cf., The Clio-The Springhill, D.C.S.D.N.Y., 1948 A.M.C. 75; The City of Boston, D.C.D.Mass.1909, 182 F. 171. In the Texas Co. case the situation was very similar to the situation here in that the individual sought to be impleaded was himself a damage-claimant. The decision in the Poling Bros, case was based on the reasoning that allowance of impleading would broaden the issues beyond those appropriate to the limitation proceeding.

In a limitation proceeding the petitioner has a considerable degree of initiative where his vessel has not been libelled and he has not been sued, for he then has the right, under Admiralty Rule 54, to bring the action wherever his ship may be. Thus, although he is in fact in a defensive position he may deprive the claimants of the right they would ordinarily have to choose their forum. To hold that after having summoned the *100 claimants to a forum of his choosing he may then assert against them his own affirmative claims would go far beyond what the statute permits. Petitioner’s motion to implead T. A. D. Jones and Company must therefore be denied.

Nor is it appropriate to require all of the claimants in this proceeding to file answers. Admiralty Rule 53 requires only that “any person claiming damages * * * who * * * intends to contest the right to exoneration or limitation, shall file an answer to such petition * * A claimant need not file an answer and contest petitioner’s request for exoneration or limitation unless he chooses to do so. Of course all claimants will be bound by an adjudication of limitation or exoneration whether they file answers or not, and any such adjudication will be res judicata in a subsequent action involving the same issues. If petitioner desires to have an adjudication on the question of T. A. D. Jones and Company’s fault, he may raise this issue by objecting to its claim when it is sought to be proved. Of course if petitioner is exonerated, there will be no proof of claims and he will have no occasion to raise these issues in this proceeding, nor is it appropriate that such issues should be raised in a limitation of liability proceeding in which exoneration is granted. Petitioner’s motion must therefore be in all respects denied.

We now proceed to the motion to transfer these proceedings to the District Court for the District of Connecticut. The proponents of this motion base it on two grounds; 28 U.S.C.A. § 1404(a) and Admiralty Rule 54.

28 U.S.C.A. § 1404(a) provides':

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Bluebook (online)
135 F. Supp. 97, 1955 U.S. Dist. LEXIS 2536, Counsel Stack Legal Research, https://law.counselstack.com/opinion/new-jersey-barging-corp-v-t-a-d-jones-co-nysd-1955.