Pavlis v. Jackson

131 F.2d 362, 1942 U.S. App. LEXIS 4657, 1943 A.M.C. 75
CourtCourt of Appeals for the Fifth Circuit
DecidedNovember 10, 1942
DocketNo. 10004
StatusPublished
Cited by23 cases

This text of 131 F.2d 362 (Pavlis v. Jackson) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pavlis v. Jackson, 131 F.2d 362, 1942 U.S. App. LEXIS 4657, 1943 A.M.C. 75 (5th Cir. 1942).

Opinion

SIBLEY, Circuit Judge.

The sponge boat Portaritisa was libeled by E. Z. Jackson for supplies furnished and money advanced for her use and was claimed by Virginia Pavlis, whose husband Nikitas Pavlis was the boat’s master. The special master to whom the case was referred decided there was a maritime lien for the supplies but none for the money, because the boat’s crew to whom most of the money was paid as an advance on their future earnings were joint adventurers and had no wage claims and hence no lien. The judge held that the advances of money carried a lien, but that usury was charged which forfeited all interest, and he also disallowed a few items, giving a decree for libelant otherwise. Mrs. Pavlis appeals, and Jackson though making no appeal specifies as error the disallowance of the interest and the items above referred to.

It is contended that Jackson is not in position to attack the rulings made against him because he did not appeal. On an appeal in admiralty the hearing is de novo, and it is our duty to review the whole case and make such decree as ought to have been made. This we will do.

And we deny appellants’ contention that the so-called replication to claimants’ answer ought to have been stricken and ought now to be ignored. It is argued that it ought in form to have been an amendment of the libel, and it needed allowance by the court, a replication being unknown to admiralty pleading. But the order of the judge refusing to strike it and that it be considered as a denial of new matter set up in the answer, amounts to an allowance and gives it standing as a part of the pleadings. We also hold that although the original libel did exhibit as a single account libelant’s dealings with the vessel on three voyages, seeking [364]*364recovery for the general balance, that the later pleading which set up that there were three separate voyages, and that what is now claimed is the cash advanced on the first voyage, and a small balance of cash advanced on the last voyage, and the supplies for the last voyage, was effectual thus to modify the claim.

In the evidence' there is no dispute that three separate voyages with different crews were made, for each of which money was advanced and supplies furnished substantially as stated in the exhibited accounts; that both money and supplies for the second voyage were settled for, as the accounts show; that at the end of the first voyage the account against the “Diving Boat Portaritisa” for supplies, kept on a separate'page, was entered “12/11/39, Paid by check $1086.43”, being the full amount, while the page for the “Cash paid out” totalling $1,074.40 has a credit “12/11/39, Paid 63.57 Inst.” The accounts for the third voyage show the cash advances are paid, and libelant in his testimony abandoned the claim for any balance, while the supplies $832.66 (corrected to $997.66 by the master) are unpaid. There is no real dispute about any of the items having been advanced or furnished, but it is claimed that usury has been charged as to the money, and that the items of supplies were really disguised loans of money on which usury was charged, and if not, that the supplies were exorbitantly charged for. Contentions of law are that there is no maritime lien for money advanced before a voyage begins, and that Jackson was not a licensed merchant in Florida and could not lawfully sell supplies.

On the last point, it appears that some years before 1939 Jackson was adjudged mentally incompetent, and was not relieved of this disability till January 30, 1940. He was, however, carrying on a business of filling station and light, groceries in the name of an employee to whom a license was granted. The Florida statute prohibiting the engaging in business without a license, Laws of Florida of 1937, Chapter 18011, was not thereby violated. It appears to be a revenue measure, and the license tax sought to be enforced had been duly paid. Jackson’s business accounts are not outlawed.

The supplies furnished were in part for the equipment of the vessel, such as fuel, and in part things necessary for the venture in which she was engaged, such as diving suits, food for the crew, and the like. A maritime lien exists for both classes of supplies, 38 C.J., Maritime Liens, § 30; 46 U.S.C.A. § 971. The master of the boat ordered them all, and selected some, and all were received and used by the boat, so far as we can tell. The master testified, and did not point out anything which did not go to the vessel. The fact that many of the articles were not kept by appellee in his store- is unimportant. He procured and paid for all, and even when the master took appellee’s checks to make payment on delivery the intent was that the articles delivered were sold to appellee and by him resold to the boat. They were so charged on the books, and appellee delivered invoices to the master for them. The agreement was that appellee for this use of his capital or credit was to charge a price which would yield him a profit, the master testifying that ten to fifteen percent was contemplated and usual, appellee testifying that there was no exact agreement and he had added 30% as profit. Inasmuch as there was a lien on the vessel and on the catch, and the voyages were not to be long, we think 30% unreasonable, and will disallow half of it, deducting from the bill for supplies on this account $120.90. No usury is involved, for there was no loan of money, but only a furnishing of goods. We disagree with the holding that the diving suit $67.50 is to be treated as cash advanced. It stands like other articles bought and paid for by appellee and delivered to the boat. It cost him, however, only $50, and $57.50 is all that he should be allowed to charge for it. That amount will be restored to the supply account. The elimination of the items of money sent the Captain while on the voyage as “Expense money” we let stand, it not clearly appearing what was done with the money and the amount sent being disputed and uncertain. We fix the supply account for the third voyage at $762.69.

The account for cash is for money paid to the master and by him to crew members for advances to enable them to provide a support for their families during the voyage, or else paid directly to them by order of the master. As a basis for them appellee took during the first voyage notes signed by the master, one for $1,500, and later one for $300, promising to pay interest at 10% No money [365]*365was paid on giving the notes, but their consideration was the advances to be made as above stated from time to time, for the ship’s use. Advances oí a seaman’s wages are in general prohibited by 46 U. S.C.A. § 599, but as pointed out in the editorial comment thereunder, the Act of Dec. 21, 1898, 30 Stat. 764, excepts fishing or whaling vessels or yachts. The Act of June 28, 1906, 46 U.S.C.A. § 598, made the prohibition to apply to vessels taking oysters. This indicates that Congress understood oyster boats to be included among fishing boats before the latter Act. We think sponge boats are fishing boats, so that advances may lawfully be made to their crew members.

And we hold these advances are wages, and not mere anticipations of profit on a joint enterprise. This boat, as is customary in the locality, made voyages to fish for sponges, obtaining a crew by promising to pay each member an agreed share in the catch, after paying the expenses of the voyage. The vessel brought the catch in and sold it, deducted from the proceeds the outlay for fuel and supplies, and awarded each seaman his part of the remainder.

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Bluebook (online)
131 F.2d 362, 1942 U.S. App. LEXIS 4657, 1943 A.M.C. 75, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pavlis-v-jackson-ca5-1942.