Paxson v. Cunningham

63 F. 132, 11 C.C.A. 111, 1894 U.S. App. LEXIS 2367
CourtCourt of Appeals for the First Circuit
DecidedJune 26, 1894
DocketNo. 91
StatusPublished
Cited by8 cases

This text of 63 F. 132 (Paxson v. Cunningham) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Paxson v. Cunningham, 63 F. 132, 11 C.C.A. 111, 1894 U.S. App. LEXIS 2367 (1st Cir. 1894).

Opinion

GRAY', Circuit Justice.

This was a petition by the receivers of the property of the Philadelphia & Reading Railroad Company for an injunction to restrain the prosecution of a libel in admiralty against a steamship in their possession. The. allegations of ttie petition were, in substance, as follows:

On February 20, 1803, the petitioners were appointed, by decree in equity of the circuit court of the United States for the eastern district of Pennsylvania, receivers of the Philadelphia & Reading Railroad Company, a, corporation of Pennsylvania, and of all its railroads, canals, collieries, boats, and vessels, and other property, real and personal, and were authorized to exercise the franchises of the company, and to run and operate its railroads and canals, and to use and employ its mines in the manner (hat they had been theretofore used and employed; and on February 23, 3893, a like decree was made by the circuit: court of the United States for the district of Massachusetts, appointing them receivers of the property of the railroad company within its jurisdiction. The receivers forthwith exercised the authority conferred by those decrees, and took possession of all the property of the company, including the steamship Williamsport, a steam collier used to carry coal taken from its mines from Philadelphia to Boston; and the use and employment of the steamship was continued by the receivers, and was necessary for the proper management and conduct of the business of the company.

On October 13, 3893, while the Williamsport was in Boston harbor, in the possession and employment of tire receivers, she came into collision with the steam tug Bessie B, belonging to Milford T. Cunningham and others. On October 34th, Cunningham, as managing part owner of the tug, filed in the district court of the United States for the district of Massachusetts a libel in admiralty against the Williamsport, to enforce a maritime lien for damages caused by the collision; and the United States marshal, pursuant to a warrant issued by that court, seized the Williamsport, and took her into his custody and possession, and out of the custody and possession of the receivers. On November 8, 3893, the receivers moved the district court to dismiss the libel, and to deliver the steamship to the receivers, on the ground that the seizure by the marshal was illegal, and that that .court acquired thereby no jurisdiction over the steamship. But the motion was denied. Thereupon, on the same day, the receivers filed in the circuit court of the United States for the district of Massachusetts this petition, praying for an injunction to restrain Cunningham from proceeding further with his libel, and to command him to release the steamship from tlx* custody of the marshal, and deliver her into the possession of the re[134]*134ceivers, and for further relief. Cunningham demurred to this petition upon the grounds that it did not state such a case as entitled the petitioners to an injunction or other relief, or as authorized the court to grant either, and-that the suit which the petitioners prayed to have the respondent enjoined from further prosecuting “is a libel in admiralty, brought by him as managing part owner of the steam tug Bessie B, in due form, and within the jurisdiction provided by the constitution and laws of the United States, against the sáid steamship Williamsport, as an offending res, to answer for her default and misdoing Avitliin the said admiralty jurisdiction, and the said respondent had the right to institute and has the right to maintain said suit, under the maritime law and under the constitution and laws of the United States, against the said steamship Williamsport.”

The circuit court sustained the demurrer and dismissed the petition, and the petitioners appealed to this court.

The case, as stated in- the petition and admitted by the demurrer, is briefly this: After the steamship Williamsport, and all other property of the Philadelphia & Reading Railroad Company, had been taken possession of by the receiA’ers of that company appointed by the circuit court of the United States, sitting in equity, she came into collision with another vessel, and was libeled by the owners of that Aressel in the district court of the United States, sitting in admiralty, to enfprce a maritime lien for damages caused by the collision.

The case involves no question of conflicting jurisdiction between the courts of the nation and those of the state, or of conflicting right between different claims existing against the railroad company or its property at the time of the appointment of the receivers. Bui the question is simply whether the claim of a maritime lien for an injury done by the Williamsport while in the possession and use of the receivers should be tried, in the first instance, in admiralty or in equity.

A maritime lien upon the offending ship for an injury by a collision is a jus in re in the ship herself, and carries with it the right to libel her in an admiralty court of the United States, unless the owners institute proceedings in such a court to limit their liability; and an admiralty court has peculiar rules of its own in some respects,—such as the priority of this and other liens, and the effect ..of contributory negligence of the libelant upon the recovery of damages,—which cannot conveniently, if at all, be applied by a court of equity or of common law. Transportation Co. v. Wright, 13 Wall 104; The Max Morris, 137 U. S. 1, 11 Sup. Ct. 29; The J. E. Rumbell, 148 U. S. 1, 13 Sup. Ct. 498; Moran v. Sturges, 154 U. S. 256, 14 Sup. Ct. 1019; The America, 16 Law Rep. 264, Red. Cas. Ro. 288; Henry, Adm. cc. 3, 4.

Moreover, by Act Aug. 13, 1888, c. 866, § 3, “every receiver or manager of any property, appointed by any court of the United States, may be sued in respect of any act or transaction of his in carrying on the business connected with such property, without the previous leave of the court in which such receiver or manager [135]*135was appointed; but such suit shall he subject to the general equity jurisdiction of the court in which such receiver or manager was appointed, so far as the same shall be necessary to the ends of justice.” 23 Stat. 436.

If the libel now in question bad been in personam against the receivers, it would have been within the very terms of the statute, and might have been filed without leave of the circuit court which appointed the receivers, subject, however, to the control of that, court, so far as necessary to the ends of justice. McNulta v. Lochridge, 141 U. S. 327, 12 Sup. Ct. 11; Railroad Co. v. Cox, 145 U. S. 593, 12 Sup. Ct. 905. The libel in rent against the steamboat for a wrong done by her while In the possession and employment of the receivers, if not within the terms of the Matute, is within its reason and equity. Independently of the statute, there could be no objection to proceeding with that libel, so far as might be done without interfering with the possession of the rt rivers. Heidritter v. Oilcloth Co., 112 U. S. 294, 304, 5 Sup. Ct. 135.

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Bluebook (online)
63 F. 132, 11 C.C.A. 111, 1894 U.S. App. LEXIS 2367, Counsel Stack Legal Research, https://law.counselstack.com/opinion/paxson-v-cunningham-ca1-1894.