North American Commercial Co. v. United States

81 F. 748, 26 C.C.A. 591, 1897 U.S. App. LEXIS 1893
CourtCourt of Appeals for the Ninth Circuit
DecidedJune 7, 1897
DocketNo. 337
StatusPublished
Cited by5 cases

This text of 81 F. 748 (North American Commercial Co. v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
North American Commercial Co. v. United States, 81 F. 748, 26 C.C.A. 591, 1897 U.S. App. LEXIS 1893 (9th Cir. 1897).

Opinion

GILBERT, Circuit Judge.

The schooner Louis Olsen was on November 25, 1895, condemned as forfeited to the United States, for having, on September 2, 1895, killed fur seals within the prohibited zone of 60 miles around Pribilov Islands, in violation of tbe act of congress approved April 6, 1894. Under tbe decree of condemnation, the schooner was sold, and the proceeds of the sale were paid into the registry of the court. On December 9, 1895, the North American Commercial Company filed its libel of intervention against the vessel and the proceeds, alleging that in July, 1894, at the port of Dutch Harbor, a foreign port, at the request of the master of the Louis Olsen, and on the credit of the vessel, the company had furnished the vessel with provisions, supplies, and other necessaries, amounting to $400; that the vessel was then about to go upon a sealing voyage, and the said supplies were used by the vessel on the voyage upon which she1 was engaged when she was seized; that they were essential for such voyage, and were furnished in good faith, and without knowledge that any illegal venture or voyage was about to be undertaken. The; United States filed an exception to the libel, as impertinent. The [749]*749exception was sustained, and a final decree was entered, dismissing the bill.

The intervener appeals from the decree, and on the appeal jiresents the question whether the condemnation of a vessel as forfeited to the United Slates defeats a maritime lien created in good faith prior to the illegal act for which the forfeiture is declared. This precise question does not appear to have been before presented for decision, except in the single case of The Florenzo, Blatchf. & H. 52, Fed. Cas. No. 4,886, to which reference will he made hereafter. Both the appellant and the appellee cite and rely upon the decision of the supreme court in the case of The St. Jago De Cuba, 9 Wheat 410, in which it was held that forfeiture does not overreach maritime liens which attached between the date of the illegal act and the subsequent seizure of the vessel for forfeiture on account thereof. In that case, an American vessel, whose owner resided at the port of Baltimore, was sent out in ballast to 'Cuba. There she was colorably conveyed to a resident of that island, and was furnished with a Spanish coasting license, and thence she jiroceeded on a voyage to Havana, thence to Balanzas, where she was equipped for the African trade. On her voyage to the coast of Africa, she was xmrsued by hostile vessels, and was compelled to put into Baltimore to refit. While there, she was libeled by ihe United States for violation of the slave-trade acts, and was condemned as forfeited. On the appeal to the supreme court, the question arose whether the liens of material men who refitted her in Baltimore upon her return, and subsequent to the illegal acts for which she was forfeited, were subsisting liens upon the vessel, the material men claiming to have furnished the supplies upon 1he belief that the vessel was, as she claimed to be, a Spanish vessel, aud that they were ignorant of the fact that in reality her home port was Baltimore. In discussing the question whether the prior forfeiture of the vessel to ihe United States should preclude the general rights of the material men, and place them on the footing of subsequent purchasers, whether with or without notice of the forfeiture, the court said:

“These questions are all solved b.v a reference to the nature, origin, and objects of maritime contracts. The precedence of forfeiture lias never been carried further Than to overreach common-hnv contracts entered into by die owner, and it would be unreasonable to extend them further. The whole object of giving admiralty process and priority of payment to privileged creditors is to furnish wings and legs to the forfeited hull, to get back for the benefit of all concerned; that is, t:o complete her voyage. There are two considerations that fully illustrate this position. It is not in the power of any one but, the shipmaster — not the owner himself — to give those implied lions on the vessel; aud in every case the last lien given will supersede the preceding. The last bottomry bond will ride over all that precede it, and a.n abandonment to a, salvor will supersede every prior claim. The vessel must get on. This is the consideration that controls every other; and not only the vessel, but even the cargo, is sub modo subjected to this necessity. * * •* We concur, them in the opinion of the court below that the fair claims of seamen and subsequent material men are not overreached by the previous forfeiture.”

Upon the part of the ax>pellee it is urged that it is only because the supplies were furnished subsequent to the illegal act in the SI. Ja.go [750]*750Be Cuba Case that the lien therefor was protected by the court, and that the purpose of such protection was to sustain the ship's credit, and enable her “to get back for the benefit of all concerned; that is, to complete her voyage.’’ If such were the reason upon which the decision in that case was based, the facts to sustain it did not exist in the record which was then before the court. At the time when the supplies were furnished the vessel, she was in her home port. It was there that she was seized, upon the libel of the United States. So far as the libelant was concerned, there Was no benefit to be gained by her being fitted out to proceed thence to any other port. Indeed, the supplies were furnished to enable her to leave the jurisdiction of the United States, and proceed a second time upon an illegal voyage. The only ground on which a lien for supplies furnished after forfeiture can be favored is that it is for the benefit of the new title which vests in the United States. It certainly cannot be asserted as a general principle that all supplies furnished after the illegal act will result in benefit to the new title, or that it will be of advantage to the United States to enable, a vessel to get on, no matter where she may be. We do not think it was the intention to place the lien upon so narrow a ground. The general principles announced in that case are broad enough to cover all cases where materials and supplies have been honestly furnished a vessel in a foreign port, to enable her to proceed. They apply as well to maritime liens created before the commission of the illegal act as to those subsequent thereto. The language above quoted, “The precedence of forfeiture has never been carried further than to overreach common-law contracts entered' into by the owner,” excludes from its operation all liens of material men, no matter at what date they may have attached.

In the later case of The Siren, 7 Wall. 152, the supreme court clearly intimated that such was the scope of its prior decision. Referring to the liens of material men. which were held to be protected in the St. Jago De Cuba Case, it said: “Those claims arose1 subsequent to the illegal acts which created the forfeiture; yet they were not superseded by the claim of the government.” It is the clear implication of this language that, if the claims had arisen prior to the illegal acts, in the opinion of the court still stronger reason would have existed for their protection, as against the claim of the government.

The Florenzo, Blatchf. & H. 52, Fed. Cas. No. 4,886, was a case of seizure for violation of the act of. December 31, 1792, under which' it was declared that “such ship or vessel, together with her tackle, apparel and furniture, shall be forfeited.” It was held that the forfeiture, under the statute, does not avoid the liens of seamen and material men existing at the time of the forfeiture.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

United States v. the Pomare
92 F. Supp. 185 (D. Hawaii, 1950)
Jackman v. United States
54 F.2d 227 (First Circuit, 1931)
The River Queen
8 F.2d 426 (E.D. Virginia, 1925)
The Eugenia Emilia
298 F. 340 (D. Massachusetts, 1924)
The Nyanza
276 F. 415 (E.D. New York, 1921)

Cite This Page — Counsel Stack

Bluebook (online)
81 F. 748, 26 C.C.A. 591, 1897 U.S. App. LEXIS 1893, Counsel Stack Legal Research, https://law.counselstack.com/opinion/north-american-commercial-co-v-united-states-ca9-1897.