Sundry Material-Men of Norfolk & Portsmouth v. Pioneer Transp Co.

20 F. Cas. 195, 2 Hughes 44, 1876 U.S. Dist. LEXIS 42
CourtDistrict Court, E.D. Virginia
DecidedFebruary 26, 1876
StatusPublished
Cited by3 cases

This text of 20 F. Cas. 195 (Sundry Material-Men of Norfolk & Portsmouth v. Pioneer Transp Co.) is published on Counsel Stack Legal Research, covering District Court, E.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sundry Material-Men of Norfolk & Portsmouth v. Pioneer Transp Co., 20 F. Cas. 195, 2 Hughes 44, 1876 U.S. Dist. LEXIS 42 (E.D. Va. 1876).

Opinion

HCGIIES, District Judge.

It is evident from this state of facts that the question in the case is between the deed of trust creditors, who lent money to the company, and the material-men who furnished supplies for operating the steamers. If these supplies had been furnished in any other port than a port of the state of Virginia to these steamers owned here, there would be no doubt of the lien of the material-men, and its priority over that of mortgagees. The doubt in the case arises from sundry decisions of the supreme court of the United States, in which it is held that supplies furnished a vessel in a domestic port are not the subject of a maritime lien, and of a proceeding in rem against the vessel, unless the local law, that is to say the law of the state, gives a lien upon the vessel for such supplies* In the absence of such state law the lien is good only against vessels from other states.

The history of the rulings of the supreme court on this highly important question has been as follows: The material-man had a lien for supplies under the old admiralty law, and has now throughout Europe under the general admiralty law, upon all ships and vessels, without any distinction between foreign and domestic vessels. Some of the authorities on the subject may be found cited in 2 Pars. Shipp. 322; Ben. Adm. § 272, and notes; and The Calisto [Case No. 2,310]. This was so in England until a decision of the house of lords, in the reign of Charles II., took the lien away in the case of domestic vessels, and left the material-man to his common law lien, which was only good where possession of the vessel was retained. But even in England the lien of the material-man on a domestic vessel has been restored by act of parliament since 1S40, and this lien follows the vessel independently of possession. In consequence of several rulings of the supreme court of the United States, and not by any act of congress, it was for a long time a part of the American admiralty law, that material-men had not a lien for repairs or supplies upon domestic vessels, unless it was given by the local law. Those rulings of that court have been ascribed to the “insensible” influence upon its justices of the rulings of the English common law courts on the subject, before 1S40. While the supreme court held this doctrine, it established the 12th rule in admiralty, in the. original form of that rule, by which it gave the proceeding in rem against a domestic vessel to the material-man, only where the law of the state gave him a lien. After-wards, in 1859, the supreme court amended rule 12 so as to take away this proceeding in rem altogether from the material-man, thus ignoring the laws of such states as gave the lien. This rule, thus amended, continued in that form until 1872, when the supreme court again amended it, and provided, that “in all suits by material-men for supplies or repairs, or other necessaries, the libellant may proceed against the ship and freight in rem, or against the master or owner alone in personam.” The adoption of this rule seemed to imply that the supreme court had determined to abandon the inconvenient distinction which it had been making on this subject between a domestic and foreign vessel, whereby it had established a variable maritime law, changing with the boundaries and with the legislation of each state. The rule of 1S72 seemed to imply that the law of maritime lien, as to material-men, was to be uniform in the United States, and in conformity with that law as it was enforced in the maritime courts of all or nearly all nations of the world. But the recent decision of the supreme court in The Xiottawanna Case, 21 Wall. [88 U. S.] 55S, destroys this implication, and re-establishes the doctrine that the material-man has not a lien for supplies furnished upon the credit of a vessel, if it be a domestic vessel, unless the law of the state give such a lien as can be treated by an admiralty court as creating a maritime contract between the material-man and the vessel itself. The principles on which that court grounds the distinction it thus makes between foreign and domestic vessels are these: The foreign vessel is a wanderer; neither her owner nor master being known in the port where she seeks to obtain supplies. When furnished, these are necessarily furnished on her own credit, and not on that of her owner or master. Being herself thus the obligor, the admiralty gives a proceeding against herself [197]*197in rem. But in a domestic port a vessel’s owner or master is supposed to be known,' and, if supplies are furnished, they are presumed to be furnished on the personal credit of the master or owner, and the admiralty does not give the proceeding against the vessel herself. But if the local law gives a lien upon the vessel herself, then the admiralty will presume, if credit is given the vessel, that it is given on the faith of the local lien, and therefore will enforce the contract by the proceeding in rem. It is not the lien itself which the admiralty enforces in such a case, but the contract which arose on the faith of the lien.

It was contended at bar that the legislature of any particular country cannot create a maritime lien, and that even if legislation could do so in the United States, such a thing could only be done by national and not by state legislation. This proposition would •seem to be negatived by the supreme court in its rulings in several cases, more especially in that of The Lottawanna [supra], its latest decision on the subject. In that case it said: “It cannot be that the framers of the constitution contemplated that the (maritime) law should forever remain unaltered. Congress undoubtedly has authority under the commercial power, if no other, to introduce such changes as are likely to be needed. * * * As to the right of material-men in reference to supplies and.repairs furnished to a vessel in her home port, there does not seem to be any great reason to doubt that congress might adopt a uniform rule for the whole country. * s *" Page 577. “It seems to be settled in our jurisprudence that so long as congress does not interfere to regulate the subject, the rights of material-men furnishing necessaries to a vessel in her home port may be regulated in each state by state legislation. State laws, it is true, cannot exclude the contract for furnishing such supplies from the domain of admiralty jurisdiction, for it is a maritime contract, and they cannot alter the limits of that jurisdiction, nor can they confer it upon the state courts so as to enable them to proceed in rem for the enforcement of liens created by state laws, for it is exclusively conferred upon the district courts of the United States. They can only authorize the enforcement thereof ■by common law remedies, or such remedies as are equivalent thereto. But the district courts of the United States, having jurisdiction of the contract as a maritime one, may enforce liens given for its security, even when created by state laws. The practice may be somewhat anomalous, but it has existed from the origin of the government. * * * Whatever may have been its origin, and whether or not it was based on the soundest principles, it became firmly settled, and it is now too late to question its validity. It is true that inconveniences arise from the often intricate and conflicting state laws creating liens, * * * but where a lien does exist it removes all obstacles to a proceeding in rem, if credit is given to the vessel. It would undoubtedly be far more satisfactory to have a uniform law regulating such liens, but until such law be adopted (supposing congress to have the power), the authority of the states to legislate on the subject seems to be conceded by the uniform course of decisions.” Pages 580, 5S1.

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Bluebook (online)
20 F. Cas. 195, 2 Hughes 44, 1876 U.S. Dist. LEXIS 42, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sundry-material-men-of-norfolk-portsmouth-v-pioneer-transp-co-vaed-1876.