Swift v. Tatner

89 Ga. 660
CourtSupreme Court of Georgia
DecidedAugust 23, 1892
StatusPublished
Cited by4 cases

This text of 89 Ga. 660 (Swift v. Tatner) is published on Counsel Stack Legal Research, covering Supreme Court of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Swift v. Tatner, 89 Ga. 660 (Ga. 1892).

Opinion

Simmons, Justice.

A ship belonging to several owners in common was chartered by one of them, who owned a majority of shares,/ to a merchant to sail between specified ports daring a term not to exceed six months. It was arranged between owner, charterer and master that the charterer should pay a certain amount of freight upon the completion of each' return voyage and delivery of the cargo in the charterer’s port, of which amount the master should receive two thirds to reimburse him for expenses of manning and victualling the ship, etc., and to pay for his services as master, the remaining third, less expenses for repairs, etc., to go to the ship, that is the owners. Part of this arrangement was embodied in the charter-party, and a part of it appeared in the oral testimony introduced on both sides. Pending the performance of the charter-party the ship was seized in the charterer’s port under an attachment for a personal debt of the majority owner, and not being replevied by him or the other owners, was detained and thus prevented from making one or more voyages in pursuance of the contract. The master now sues all the owners in an attachment levied on the ship, for damages on account of being prevented by the first attachment and failure to replevy from making voyages which he could have made had the ship been free, and also for his expenses and wages during the delay, and for his share of the chai’ter money of one voyage actually made, which he alleges that the owners prevented him from collecting.

1. The first question respects the liability of those [663]*663owners who did not join in the charter-party or the collateral agreement with the master. The court charged the jury thus : “ If you find from the evidence that Tatner had an arrangement with Swift as the managing owner whereby he, Tatner, was to represent the vessel and owners under certain circumstances and for certain purposes, and if you find that the other owners made no objection to this arrangement, and that they received the charter money or any portion of it without objection, then this arrangement would be just as binding upon them as upon Swift, and whatever Tatner was authorized to do under his arrangement with Swift would be equally binding upon all of the owners.” “ Hence the question is . . . whether Tatner has a claim against Swift and the other owners of the vessel; if he has, then his claim extends to all of those whom you find to be owners of that vessel.” It is complained that these instructions were erroneous, and also that the court failed to instruct with reference to the defendants’ contentions that there was no privity between them and the master; that none of them, except Swift, could be liable on account of the ship’s detention under the attachment, they being not liable for the debts of Swift or for the action of his creditors, over which they had no control; and that they were not liable for the breach of the charter-party or the acts of Swift, or for the wages of the master. It may be observed that, if special instructions were desired as to the different defendants who were making a common defence, they ought properly to have been requested. But since the charges given were excepted to, and as there is to be a new trial for another reason, it is well to state the principle governing the liability of the minority owners. Swift testified that he owned thirty-nine sixty-fourths of the ship at the time of the charter. He was thus a majority owner. The rights of a majority owner are [664]*664very large. It is to the interest of all the owners, and of the public, that the vessel be kept in trade and not be forced to lie idle because the owners may not agree on her employment. Therefore the majority owner is entitled to the possession and management of the ship. And the minority owners, unless they expressly dissent, are held to acquiesce in and be bound by the acts and doings of the majority owner. He represents them as their agent, they having the right and duty to share rat-ably in the profits and losses of the joint enterprise. He does not need their express authority in order to bind them, but they need to expressly withdraw their authority in order not to be bound. They can avoid liability, and loss in any particular venture of which they do not approve, by requiring the majority owner to give bond for the safe return of the ship. Abbott on Shipping (13th Eng. ed.), 85 et seq., 90 et seq.; Carver on Carr, by Sea, p. 40; .1 Pars. Ship.- & Adm. 95, 97; Desty, Ship. & Adm. §§36, 37, 47; 23 Myer’s Fed. Dec. §1166 et seq. Thus the minority owners, unless they dissent from, are presumed to agree to the voyage and all the liabilities occasioned by it, and the burden is on them to show their dissent and consequent non-liability when its exists. Hnder this principle, it may be said, in a general way, that the minority owners of the ship in question are bound by the charter-party and by any agreement which the majority owner may have made with the master for his employment and compensation, and by any acts or omissions of the majority owner which affected or determined the peformances of the ship. This is certainly true of those who were owners at the time the contract was made, and they could not divest themselves of liability by parting with their interest in the ship, unless perhaps the credit were given entirely to the ship ; for a party cannot thus shift his contract on to another to whose résponsi[665]*665bility the opposite party might not be able or willing to trust. As to owners who became such after the contract was made, the evidence furnishes only one example, the defendant Adams. He figures first as the assignee in bankruptcy of Swift, and afterwards as owner of the ship. In the former capacity he received one payment of the ship’s share of the charter money and became so connected with her subsequent detention as to gain a knowledge of all the circumstances. "When he after-wards acquired his interest, whatever it is, he had notice of the outstanding engagement of the ship and of the liability of the ownei’s to make good the time lost by the delay. Besides, the jury might be warranted in finding from his admissions in the letter of February 20th, 1890, in which he said he was then sole owner, and in the letter of February 26th, in which he said he owned fifty-nine sixty-fourths of the vessel and was more interested than any one to have the vessel clear, and from other correspondence and all the circumstances, that he was owner for part of the time of delay and was-actually responsible to some extent for the tardiness with which the bond was given and the ship released. Indeed he seems to have been the chief actor on the owner’s side all through the complication which detained the ship, but how long as assignee of Swift and how long as owner is not clear. There may be little doubt that one who was part owner at the time of the ■ occurrence causing the damage sued for would be represented by the then majority owner, or the managing owner, and liable for his acts and defaults touching the operation of the ship. And one buying after the breach of contract might be bound for the damages, at least to the extent of his interest in the ship. But it is not intended to rule these questions now, because the evidence does not show when the defendants, with the exception of Swift and Adams, acquired their interest, [666]*666or that they ever had any at all. If either party desired a decision on these points, he ought to have shown when the various defendants acquired their ownership. The court below could not properly charge on mere assumptions, nor can exceptions for review be predicated on a purely hypothetical state of facts.

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Bluebook (online)
89 Ga. 660, Counsel Stack Legal Research, https://law.counselstack.com/opinion/swift-v-tatner-ga-1892.