Standard Fruit & Steamship Co. v. United States

103 Ct. Cl. 659, 1945 U.S. Ct. Cl. LEXIS 53, 1945 WL 4037
CourtUnited States Court of Claims
DecidedMarch 5, 1945
DocketNo. 45267
StatusPublished
Cited by6 cases

This text of 103 Ct. Cl. 659 (Standard Fruit & Steamship 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
Standard Fruit & Steamship Co. v. United States, 103 Ct. Cl. 659, 1945 U.S. Ct. Cl. LEXIS 53, 1945 WL 4037 (cc 1945).

Opinion

Whitaker, Judge,

delivered the opinion of the court:

Plaintiff sues for $103,565.15, an amount alleged to be due it by the defendant for the carriage of mails between April 16, 1937, and March 1942.

Plaintiff is the successor of Yaccaro Bros, and Company. It operates steamers between the United States and Jamacia, Cuba, and Central American countries. For a number of years its ships have carried mails between the United States and some or all of these countries. It had no formal contract therefor. Its right to recover, if at all, arises from the following transactions:

On or about the first of each month plaintiff received from the Post Office Department a blank form to be filled out, giving the names of its steamers and dates of sailing, their ports of call, destination and registry. Plaintiff filled out this form and returned it. Thereafter, shortly prior to the sailing date of a steamer, plaintiff was furnished another form to be filled out, giving the name of the steamer, the registry, the time of sailing, the pier from which it would sail, the ports of call, and the speed of the steamer. This form contained the following notice:

Mails for dispatch by outgoing steamships shall be delivered by the post office at the time agreed upon to the respective steamship companies, who must convey them to their steamships.
It is understood that the mails shall be carried in accordance with the terms, conditions, and responsibilities prescribed by the Postal Laws and Regulations of the United States (or in accordance with the terms of the contract covering the service, where there is such a contract).

[681]*681This form was also duly filled out by plaintiff and returned to the Post Office Department.

Thereafter, at the time agreed upon, plaintiff called for the mail at the proper post office, received it, delivered it by truck to its steamer, and by its steamer to its destination, which was to points in Central America and the West Indies.

Plaintiff was regularly paid for the carriage of this mail at the rates prescribed by the postal laws and regulations until December 1,1932. Thereafter, defendant paid plaintiff for so-called non-Convention mail only. From that time on it refused to pay for the carriage of so-called Convention mail, that is, mail covered by the provisions of the Postal Convention between the Americas and Spain, signed at Madrid November 10, 1931, and approved by the President February 9, 1932 (41 Stat. 1924^-1956). This suit is to recover for the carriage of such mail. Defendant refused to pay for its carriage because of the provisions of that Convention.

The plaintiff company was organized under the laws of the State of Delaware, but its steamships which carried the mails in question were registered under the flag of the Republic of Honduras. Both the defendant and Honduras were signatories to this Convention. Article 3 of it (41 Stat. 1925) reads as follows:

Free and gratuitous transit. — 1. The gratuity of territorial, fluvial and maritime transit is absolute in the territory of the Postal Union of the Americas and Spain; consequently, the countries which form it obligate themselves to transport across their territories and to convey by the ships of their registry or flag which they utilize for the transportation of their own correspondence, without any charge whatsoever to the contracting countries, all that which the latter may send to any destination. * * $ « A

The same provision was incorporated in the later Convention of 1936, ratified August 12, 1937, and approved by the President August 20,1937 (50 Stat. 1657,1658).

The defendant contends that under the terms of this article Honduras only is liable for the charges for the carriage of this mail. Plaintiff says that it was not á party to that Convention and is not bound by it, but that its rights are determined by the postal laws and regulations and that it [682]*682is entitled to the compensation fixed by the Postmaster General in those regulations under the authority granted by section 4009 of the Revised Statutes, as amended. To this defendant replies that the above-quoted provision of the Postal Convention was a part of the postal laws and regulations of the United States, and that according to its terms Honduras, and not the United States, was liable for the carriage of the mails in question.

Defendant is right in saying the Postal Convention is a part of the postal laws and regulations. It was entered into under the authority of R. S. 398, which reads: (Sec. 372, Title 5, U. S. C.)

For the purpose of making better postal arrangements with foreign countries, or to counteract their adverse measures affecting our postal intercourse with them, the Postmaster General, by and with the advice and consent of the President, may negotiate and conclude postal treaties or conventions, and may reduce or increase the rates of postage or other charges on mail matter conveyed between the United States and foreign countries; Provided, That the decisions of the Postmaster General construing or interpreting the provisions of any treaty or convention which has been or may be negotiated and concluded shall, if approved by the President, be final and conclusive upon all officers of the United States. (R. S. sec. 398; June 12,1934, ch. 473,48 Stat. 943.)

It has the same force and effect as any other regulation issued by the Postmaster General under authority of law. 33 Op. A. G. 276, 278; Four Packages of Cut Diamonds v. United States, 256 Fed. 305.

Under that Convention Honduras is plainly liable for the carriage of the mails in question. Under it the United States assumed liability for the carriage of mails by ships of its registry, Panama by its ships, and Honduras and the other Central American countries by their ships. Plaintiff carried the mails in question with knowledge of the terms of this Convention, and we think it is bound by it.

But, plaintiff says that it was the defendant that required it to carry the mails, and not Honduras, and from this very fact an implied contract arises on the part of the defendant to pay it compensation therefor. It points to section 4016 [683]*683of the Revised Statutes, as amended (18 U. S. C. 326), which requires it to take the mail from the United States Post Office when its ships are leaving our ports, and imposes on it a fine of $1,000 for failing or refusing to do so. It also points to the Act of February 6,1929 (ch. 157,45 Stat. 1153), which authorizes the Postmaster General to require any steamship to carry the mail between the United States and any foreign port “at the compensation fixed under authority of law,” and which authorizes the Collector of the port, or other officer, to refuse clearance of a vessel upon its refusal to accept the mail tendered. It says it was obliged under these Acts to carry the mail and, therefore, that an implied promise arose that the defendant would pay for it, whether or not Honduras was also obligated to do so.

It is true that ordinarily when the United States demands service from a person, it impliedly agrees to pay just compensation therefor, but we do not think such an implied contract arose under the facts and circumstances of this case.

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Related

Williams v. Blount
314 F. Supp. 1356 (District of Columbia, 1970)
Marine Insurance Co., Ltd. v. The United States
410 F.2d 764 (Court of Claims, 1969)
United Fruit Co. v. United States
134 Ct. Cl. 315 (Court of Claims, 1956)

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Bluebook (online)
103 Ct. Cl. 659, 1945 U.S. Ct. Cl. LEXIS 53, 1945 WL 4037, Counsel Stack Legal Research, https://law.counselstack.com/opinion/standard-fruit-steamship-co-v-united-states-cc-1945.