Samuel Sanday & Co. v. United States

76 Ct. Cl. 370, 1932 U.S. Ct. Cl. LEXIS 315, 1932 WL 2130
CourtUnited States Court of Claims
DecidedNovember 14, 1932
DocketNo. C-712; No. F-71; No. C-1007; No. C-1008; No. C-1021; No. C-1325; No. C-1006; No. C-1009; No. C-1010; No. C-1020; No. C-1022; No. C-1023; No. C-1024; No. C-1025; No. C-1026; No. C-1066; No. D-19; No. E-559
StatusPublished

This text of 76 Ct. Cl. 370 (Samuel Sanday & Co. v. United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Samuel Sanday & Co. v. United States, 76 Ct. Cl. 370, 1932 U.S. Ct. Cl. LEXIS 315, 1932 WL 2130 (cc 1932).

Opinions

Whaley, Judge,

delivered the opinion of the court:

This is a demurrer filed by defendant to dismiss on the ground that the Court of Claims lacks jurisdiction in these cases.

The S.S. City of Brunswick was owned and operated by the TJnit&g, States and was employed solely as a merchant vessel. The vessel after loading cargo at New Orleans and Mobile, sailed from Mobile on August 13, 1921, bound for Antwerp, Belgium, and on August 25, 1921, the Gity of Brunswick grounded near the entrance of Halifax Harbor, resulting in a total loss of the vessel and her cargo.

In each of the eighteen cases under consideration the petitions set forth and the undisputed facts introduced by way of stipulation show that the plaintiffs were owners of the merchandise lost and owners and holders of the bills of lading covering the merchandise, and that in each case the plaintiffs have brought suit in this court at the request of and for the benefit of various underwriters who have paid the plaintiffs or their agents the moneys representing the losses sustained.

The defendant urges that the Supreme Court by its decisions such as in Johnson v. Fleet Corporation, 280 U.S. 320, and Matson Navigation Co. v. United States, 284 U.S. 352, has declared that this court is without jurisdiction to hear and to determine claims against the United States upon causes of action arising out of the ownership, possession, and operation of merchant vessels by the Government, [372]*372and that the Supreme Court has declared such- remedy exclusive under the suits in admiralty act.

The provisions of section 2 of the admiralty act of March 9,1920, 41 Stat. 525, are as follows:

“ That in cases where if such vessel were privately owned or operated, or if such cargo were privately owned and possessed, 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 agavnst the United States' or against such corporation, as the case many be, provided that such vessel is employed as a merchant vessel or is a tugboat operated by such corporation. 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 liability is found. The libelant shall forthwith serve-a copy of his libel on the United States attorney for such, district and mail copy thereof by registered mail to the-Attorney General of the United States, and shall file a sworn return of such service and mailing. Such servicíPlnd mailing shall constitute valid service on the United States and such corporation. In case the United States or such corporation shall file a libel in rem or in pérsonam in any district, a cross-libel in personam may be filed or a set-off claimed against the United States or such corporation with: the same force and effect as if the libel had been filed by a private party. Upon application of either party the cause-may, in the discretion of the court, be transferred to any other district court of the United States.” [Italics ours.]

In the present instance any suit filed under the admiralty act would necessarily be one “ in personam ” and not in rem, as the vessel and cargo were lost.

Section 2, as indicated above, clearly states that a libel. in personam may be brought against the United States “ provided that such vessel is employed as a merchant vessel and defines the manner of bringing such suits in the districts in which plaintiffs reside or have a principal place-of business or. where the vessel or cargo is found.

It therefore becomes necessary to consider the residence or-place of business of the various plaintiffs, and the cases-are accordingly divided into three groups, as follows:

[373]*373GROUP 1

Samuel Sanday & Co., C-712.

John F. Meyer & Sons Milling Co., F-71.

The commissioner has found in his report in the Sanday ■case that the plaintiffs are copartners having a place of ^business in London, England, and are citizens of the United Kins ''om of Great Britain, but that the said Samuel Sanday .& Com ->any both prior and subsequent to the filing of the • original petition in this case, June 7, 1923, had a place of business in New York City, and used in their correspondence a letterhead upon which the name of Samuel Sanday and Company appears.

In the case of John F. Meyer & Sons Milling Company the petition sets forth that plaintiffs were “ a corporation •organized under the laws of the State of Missouri, with office and principal place of business in the city of St. Louis, :State of Missouri.” It has also been stipulated in this case that “ claimant has the legal status of citizenship as alleged in the petition.”

In both of the above cases it therefore appears that plaintiffs have a place of business in the United States, and suit ■should therefore have been brought in the district courts under the admiralty act in the district wherein plaintiffs reside or have their place of business.

The demurrer as to these two cases is sustained and they are dismissed.

GROUP 2

A. de Brouchere, C-1007.

Magasins Eug. Schmidt & Co., C-1008.

L. Brabandt & Co., C-1021.

C. Jussiant & Co., C-1325.

In all of the cases in this group the cargo was insured by Lloyd’s of London, England, which is an unincorporated ■organization having their principal place of business in London, and neither in 1921 nor at any time thereafter •did the underwriter at Lloyd’s have a place of business in •the United States. Such facts are based on the stipulation [374]*374filed in these cases. Also in each of the fonr cases plaintiffs were citizens and residents of Belgium carrying on business in a foreign country and did not have an office, agency, or place of business in the United States.

GROUP 8

L. Brabandt & Co., C-1006.

Du Pasquier & Co., C-1009.

C. Jussiant & Co., C-1010.

Heirs of Emile Gesnot, C-1020.

Am. Vermeulen, C-1022.

Henri Deweert, C-1023.

Devriendt Freres, C-1024.

Gaston B. Schul, C-1025.

Carl Sensing, C-1026.

Van Nuland Freres, C-1066.

M."& J. Caron Freres, D-19.

Carel Frederick Marie Stahl, E-559.

The remaining cases forming this group are those in which the plaintiffs are foreigners, having no place of business in the United States, with underwriters in each instance having a principal place of business in the United States.

The Government urges that the underwriters therefore could have brought an action upon the subrogation rights under the admiralty act.

In

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Bluebook (online)
76 Ct. Cl. 370, 1932 U.S. Ct. Cl. LEXIS 315, 1932 WL 2130, Counsel Stack Legal Research, https://law.counselstack.com/opinion/samuel-sanday-co-v-united-states-cc-1932.