Stevens v. Shippen

29 N.J. Eq. 602
CourtSupreme Court of New Jersey
DecidedJuly 15, 1878
StatusPublished
Cited by3 cases

This text of 29 N.J. Eq. 602 (Stevens v. Shippen) is published on Counsel Stack Legal Research, covering Supreme Court of New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stevens v. Shippen, 29 N.J. Eq. 602 (N.J. 1878).

Opinion

Van Syckel, J.

The facts of this case are fully stated in the opinion of the chancellor, reported in 1 Stew. 487. The only question raised on this appeal is, whether, under the resolution of congress, approved by the president July 17th, 1862, which, by its terms, released and conveyed the unfinished vessel known as the “Stevens Battery,” to the “heirs at law of Eobert L. Stevens, deceased, or tlioir legal representatives,” the title to that vessel passed to those heirs at law, or to Edwin A. Stevens as the residuary legatee of Eobert L. Stevens ?

On the 10th of February, 1843, Eobert L. Stevens entered into a contract with Mr. Upshur, then secretary of the navy, for ..the construction of a war steamer for the United States government, for harbor defence, shot-andsholl-proof; to be built principally of iron, upon a plan devised by Mr. Stevens. The vessel was to be built for a stipulated price, according to plans and specifications agreed upon, and to be completed within two years. Under this original contract, there could bo no doubt that the legal title to the vessel remained in Mr. Stevens until it was completed and delivered to, and accepted by, the government.

On the 14th day of November, 1844, a second contract, explanatory of the first contract, was entered into between Mr. Stevens and Mr. Mason, who had succeeded Mr. Upshur as secretary of the navy. After reciting the contract of February 10th, 1843, it was agreed that it should be modified and explained as follows: The time for the completion and delivery of the vessel was extended two years from the date of the explanatory agreement; the specifications were in some respects altered, and the manner in which the vessel was to be equipped more definitely stated., [604]*604It was further stipulated and agreed that the secretary of the navy should appoint, and that Mr. Stevens should admit within his establishment for building said war, steamer, some person or persons whose duty it should be to attend at the works of the said Stevens, and to receive and receipt for, on account of the navy department, all materials, of every description, which should be delivered for constructing said war steamer, her engines and dependencies; which materials, when so received and receipted for, should be distinctly marked with the letters “ U. S.,” and should become the property of, and belong to, the United States; that the said Stevens’s bills for labor and unwrought materials (already or thereafter to be rendered) should be certified for payment with the customary percentage of addition, and that the authority of the inspecting officer should not'be understood to extend to the right to judge of the quality or fitness of the said materials, or the workmanship of any part of them, but merely to the cost of the same; that the navy department should pay to said Stevens, as the price of the said war steamer, when fully completed and delivered ■ in conformity with the provisions of this contract, the sunn of $586,717.84; that, as security for the faithful perform-' anee of his contract, the said Stevens should execute to the United States a mortgage upon certain specified real estate in Hoboken, with ample power to enter upon and sell the same in case of failure on his part to perform the contract; that, after bills certified to the amount of $500,000 had been paid to Mr. Stevens, the balance of the contract price, if it was deemed necessary for the security of the government, should be withheld, as further security for the execution of the contract by Mr. Stevens, and, in addition to the said mortgage security, that, when the vessel should be full}'' completed in all respects, and duly delivered to and received by the agent of the United States, according to the terms of the contract, the balance of the contract price should be paid to Mr. Stevens, and his mortgage surrendered to him for cancellation.

[605]*605Mr. Stevens executed the mortgage called for by the contract, proceeded with the work upon the vessel, and, in 1856, before its completion, he died.

In 1849, the government, haying advanced $500,000 of the price, refused to make any further payment, and the work was therefore, for a time, suspended, but was again resumed in 1853. At the time of his death, Mr. Stevens had expended upon the vessel, which was then far from completion, over $113,000 of his own money, in addition to the sum of $500,000 received from the United States government. By his will, dated in 1846, he made his brother, Edwin A. Stevens, his residuary legatee, and it is admitted that if the vessel was part of the estate of Robert L. Stevens, it passed, under his will, to his brother Edwin.

The general rule of law, that, under a contract for building an entire vessel, no property vests in the party for whom she is built until she is ready for delivery, and has been accepted and approved by .such party, is not controverted. But it is claimed that this case is taken out of the general rule, by the fact that this vessel was constructed under the superintendence of the government; that payments were made upon her as the work progressed; and that, by the terms of the contract, materials for her construction were to be marked with the letters “ U. S.,” and to be the property of the United States. The case relied upon to support this distinction is Scudder v. Calais Steamboat Co., 1 Cliff. 370, in which Justice Clifford relies upon the authority of Woods v. Russell, 5 B. & Ald. 942.

In this state, in Elliott v. Edwards, 6 Vr. 265, it has been expressly held, contrary to the rule laid down in Woods v. Russell, that, in case of an executory contract to build a vessel, to be paid for in installments as the work progresses, the title remains in the builder until the work is completed and delivered. This case was affirmed in our court of last resort (7 Vr. 449), and must be accepted as the law of this case.

In Clarke v. Spence, 4 Ad. & El. 448, some importance is attached to the fact that the vessel was to be built under a [606]*606superintendent appointed by the purchaser, on the ground that the builder was bound to deliver that particular vessel, and the purchaser was obliged to accept it, and that no other vessel could be delivered in performance of the contract. But the court in that case was constrained to observe, that: “Until, however, the last of the necessary materials be added, the vessel is not complete—the thing contracted for is not in existence—for the contract is for a complete vessel, and not for parts of a vessel; and we have not been able to find any authority for saying that, whilst the thing contracted for is not in existence as a whole, and is incomplete, the general property in such parts of it as are from time to time constructed shall vest in the purchaser, except the above passage in the case of Woods v. Russell.”

It will be observed that there is a circumstance which distinguishes the case in hand from Clarke v. Spence.

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Cite This Page — Counsel Stack

Bluebook (online)
29 N.J. Eq. 602, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stevens-v-shippen-nj-1878.