Norton v. Southern Railway Co.

138 Misc. 784, 246 N.Y.S. 676, 1930 N.Y. Misc. LEXIS 1713
CourtCity of New York Municipal Court
DecidedDecember 16, 1930
StatusPublished
Cited by9 cases

This text of 138 Misc. 784 (Norton v. Southern Railway Co.) is published on Counsel Stack Legal Research, covering City of New York Municipal Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Norton v. Southern Railway Co., 138 Misc. 784, 246 N.Y.S. 676, 1930 N.Y. Misc. LEXIS 1713 (N.Y. Super. Ct. 1930).

Opinion

Eder, J.

Section 741 of title 46 of the United States Code, known as the Suits in Admiralty Act (41 U. S. Stat. at Large, 525), and which concerns suits in admiralty by or against vessels or cargoes of the United States, so far as relevant provides: No vessel owned by the United States or by any corporation in which the United States or its representatives shall own the entire outstanding capital stock or in the possession of the United States or of such corporation or operated by or for the United States or such corporation, and no cargo owned or possessed by the United States or by such corporation, shall, in view of the provision herein made for a libel in personam, be subject to arrest or seizure by judicial process in the United States or its possession *• *

Section 742 declares that In cases where if such vessel were privately owned or operated, * * * a proceeding in admiralty could be maintained at the time of the commencement of the action herein provided for, a libel in personam may be brought against the United States or against such corporation, as the case may be, provided that such vessel is employed as a merchant vessel * * This section, so far as here pertinent, further declares [786]*786that “ Such suits shall be brought in the district court of the United States for the district in which the parties so suing, or any of them, reside or have their principal place of business in the United States, or in which the vessel or cargo charged with iability is found.”

By virtue of section 810 of title 46 of the United States Code (39 U. S. Stat. at Large, 731) the United States Shipping Board was authorized to create and organize the corporate entity known as the United States Shipping Board Emergency Fleet Corporation. (Lembeck v. U. S. S. B. E. F. Corp., 9 F. [2d] 558; Anderson v. U. S. Fidelity & Guaranty Co., 8 id. 428.) By section 810-a of title 46 of the United States Code (44 U. S. Stat. at Large, 1083) its name was changed to the United States Shipping Board Merchant Fleet Corporation. Judicial notice must be taken of the fact that all of its stock is owned by the United States of America. (United States v. Strang, 254 U. S. 491; U. S. ex rel. Skinner & Eddy Corp. v. McCarl, 275 id. 1; United States v. Brown, 247 N. Y. 211.) It, therefore, comes, without question, within the purview of section 741.

By section 743 it is, among other things, provided that “ Such suits shall proceed and shall be heard and determined according to the principles of law and to the rules of practice obtaining in like cases between private parties.” And it is further provided in section 748 that “ Any final judgment rendered in any suit herein authorized, * * * shall, upon the presentation of a duly authenticated copy thereof, be paid by the proper accounting officers of the United States out of any appropriation or insurance fund or other fund especially available therefor; otherwise there is appropriated out of any money in the Treasury of the United States not otherwise appropriated, a sum sufficient to pay any such judgment * * *.” (U. S. Code, tit. 46, § 748.)

In discussing the purpose and object of the Suits in Admiralty Act, the court, in Johnson v. U. S. S. B. E. F. Corp. (280 U. S. 320), says (p. 325): “Prior to the passage of the Act, merchant vessels of the United States were subject to seizure. * * * And the Fleet Corporation was liable to be sued in state or federal courts on causes of action arising out of the operation of such ships. * * *. The Act relieved the United States of the inconvenience resulting from such seizures and gave remedy by libel in personam against the United States and such corporations. * * *. But that is not its only purpose. It authorizes libel in personam where there is nothing on which recovery in rem could be had. * * * And it furnishes the exclusive remedy in admiralty against the United States and such corporations on maritime causes [787]*787of action arising out of the possession and operation of merchant vessels.” (Italics are author’s.) (See, also, Connett v. U. S. S. B. E. F. Corp., 37 F. [2d] 1011, and Duffy v. U. S. S. B. E. F. Corp., 228 App. Div. 808.)

The provisions of all other acts inconsistent with those of the Suits in Admiralty Act were repealed. (See U. S. S. B. E. F. Corp. v. Rosenberg Bros., 276 U. S. 202, 213.) And in the case last cited it is said (p. 214): It follows that after the passage of the Act no libel in admiralty could be maintained against the United States or the corporations on such causes of action except in accordance with its provisions.”

The defendant Fleet Corporation moves to dismiss the actions upon the ground that, as to it, these actions are maritime in their nature; that plaintiff seeks to recover damages for injury to merchandise shipped on the steamship Hatteras, which, at all times mentioned in the complaints, was owned by the United States of America; that the money required to pay a judgment in such actions would come out of the Treasury of the United States; that the said vessel, at all times mentioned in the complaints, was operated by or for the account of the United States of America, acting through the United States Shipping Board by the Fleet Corporation and Consolidated Navigation Company, as its managing agent; that by virtue of these facts, this court lacks jurisdiction of the subject-matter of the actions, as to such defendant, and it relies on the Johnson Case (supra) to sustain its contention.

The plaintiff maintains, in opposition, that the facts in the Johnson Case (supra) and those in the case at bar are not parallel, and it is, therefore, inapplicable.

The facts, in consequence, must be analyzed to determine the question.

These actions were instituted to recover for damage sustained to shipments of flour originating at interior points in the United States, moving by rail to the Atlantic seaboard and from there by water to several ports in Ireland. The plaintiff is the assignee of the owners of the merchandise. The complaints allege the delivery of the merchandise in good order and condition at the places of the origin of the shipments to the initial rail carrier; that in consideration of the payment of the freight, the various defendants agreed to deliver the merchandise safely, and in like good order and condition, to the consignees in Ireland; the failure and neglect of the defendants to do so but that the merchandise was delivered damaged and seriously impaired in value; that the plaintiff is in doubt as to which defendant is liable, and, therefore, pursuant to sections 211 [788]*788and 213 of the Civil Practice Act, joins them all so that the court may determine which of them is liable.

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Bluebook (online)
138 Misc. 784, 246 N.Y.S. 676, 1930 N.Y. Misc. LEXIS 1713, Counsel Stack Legal Research, https://law.counselstack.com/opinion/norton-v-southern-railway-co-nynyccityct-1930.