The Eliza Lines

199 U.S. 119, 26 S. Ct. 8, 50 L. Ed. 115, 1895 U.S. LEXIS 3817
CourtSupreme Court of the United States
DecidedOctober 30, 1905
Docket12
StatusPublished
Cited by34 cases

This text of 199 U.S. 119 (The Eliza Lines) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
The Eliza Lines, 199 U.S. 119, 26 S. Ct. 8, 50 L. Ed. 115, 1895 U.S. LEXIS 3817 (1905).

Opinion

199 U.S. 119

26 S.Ct. 8

50 L.Ed. 115

THE ELIZA LINES.

No. 12.

Argued April 11, 12, 13, 1905.

Decided October 30, 1905.

Messrs. L. S. Dabney and F. Cunningham for Booth.

[Argument of Counsel from pages 120-122 intentionally omitted]

Messrs. Edward S. Dodge, Harrington Putnam, and Frederic Dodge for Black, administratrix, and Banque De Genes.

Messrs. James A. Lowell and John Lowell for Hans Andreasen, claimant, etc.

[Argument of Counsel from pages 122-125 intentionally omitted]

Mr. Justice Holmes delivered the opinion of the court:

This case comes here by certiorari to the circuit court of appeals. The decree in that court was made in a cause in which were consolidated four suits: A libel for salvage against the Eliza Lines, her cargo and freight; a libel for possession by the cargo owners against the cargo; a libel by the master against cargo and cargo owners for freight and general average; and a libel by a bottomry lender against the vessel and freight. The Eliza Lines, a Norwegian bark, was bound on a voyage from Pensacola to Montevideo with a cargo of lumber, under a charter party, 'the dangers of the seas, fire, and navigation always mutually excepted.' It was abandoned, justifiably, in consequence of dangers of the seas, and was afterwards picked up by salvors and brought into Boston on September 19, 1889. The master was notified by the owners, and came on from St. John, New Brunswick, arriving on September 21. The cargo owners (Ward & Company) and the master both demanded possession of the cargo from the salvors, but the salvors retained possession, and filed their libel for salvage on September 26. The next day the master filed a claim for ship and cargo, and within an hour Ward & Company filed their claim for the cargo, as above mentioned. On October 5 the vessel was delivered to the master, and on October 18 the master moved for a delivery of the cargo to him upon stipulation, in order to resume his voyage, while Ward & Company moved that the cargo be sold, on the ground that its value was rapidly diminishing by reason of charges and costs. The former motion was denied and the latter granted on November 16. On November 27 the master filed his libel for freight and general average. The circuit court, reversing the decision of the district court, held that the master should have been allowed to complete the voyage and earn freight, and charged the cargo owners personally with the net freight that would have been earned, with other particulars not necessary to mention. 61 Fed. 308, 102 Fed. 184. The decree was affirmed with a slight variation by the circuit court of appeals. 52 C. C. A. 195, 114 Fed. 307.

The question is whether the abandonment of the vessel by the master and crew gave the cargo owners a right to refuse to go on with the voyage in the circumstances disclosed; in other words, whether the cargo owners properly were treated as guilty of a breach of contract for preventing the continuance of the voyage by their refusal and by procuring a sale. It will be noticed that the decree must stand on the ground that the contract was broken by the cargo owners, and that the shipowners were entitled to recover under it, although the voyage was not completed. The decree was not upon a new contract, such as it was attempted to set up in Hopper v. Burness, L. R. 1 C. P. Div. 137, or upon the analogy of a quantum meruit at common law, which was expressly disavowed. The very foundation of a recovery upon the latter ground is that the express contract is out of the way, but that a benefit has been received which ought to be paid for. Therefore, in such a case the recovery cannot exceed the benefit, as often has been explained in the books. Gillis v. Code, 177 Mass. 584, 59 N. E. 455; Keener, Quasi-Contracts, chap. 4. See Flaherty v. Doane, 1 Low. Dec. 148, 150, Fed. Cas. No. 4,849. In the case at bar, while the district court allowed freight pro rata as a charge on the proceeds of the cargo, the circuit court of appeals held the cargo owners personally for a sum much exceeding that amount, and therefore much exceeding the benefit actually received. It will not be necessary to consider the decree of the district court, since that was not appealed from by the cargo owners, and we shall not discuss the effect of the judicial sale, as it is not necessary in the view which we take.

There is no doubt that the English decisions confidently assert the cargo owner's right to refuse to go on. They may be read in the reports, and there is no need to do more than to refer to them. The Arno, 8 Asp. Mar. L. Cas. 5; The Leptir, 5 Asp. Mar. L. Cas. 411; The Argonaut, Shipping Gazette, Weekly Summary, Dec. 5, 1884, p. 775; The Cito, L. R. 7 Prob. Div. 5; The Kathleen, L. R. 4 Adm. & Eccl. 269. The only point which they leave open is whether, if the master should get the abandoned vessel and cargo back from the salvors before the cargo owners had declared an election to end the contract, he might in that way revive his right to finish the voyage. On that point it is enough to say here that if the English rule is right, then, even if there is any such qualification to it, the exception must depend upon something more substantial than a few minutes' priority in filing a libel, when neither master nor cargo owner has possession either of cargo or ship, as, plainly, neither had in this case.

The right of cargo owners to treat the contract as ended by the abandonment of the ship was asserted much earlier than the English cases by Judge Ware in Lewis v. The Elizabeth & Jane, 1 Ware, 41, Fed. Cas. No. 8,321, and earlier still by Mr. Story, before he became a justice of this court, in his Edition of Abbott on Shipping (1810), pp. 338, 512, citing Dunnett v. Tomhagen, 3 Johns. 154, and Mason v. The Blaireau, 2 Cranch, 240, 2 L. ed. 266. We see nothing in The Nathaniel Hooper, 3 Sumn. 542, Fed. Cas. No. 10,032, sufficient to prove that he changed his opinion. That case is cited in 3 Kent, Com. 13th ed. 228, along with Post v. Robertson, 1 Johns. 24, in which, and in Dunnett v. Tomhagen, 3 Johns. 154, the supreme court of New York and Chief Justice Kent took the same general view, subject to the question whether there might be a recovery on a quantum meruit when benefits were accepted under the contract, in spite of a failure of complete performance. See Caze v. Baltimore Ins. Co. 7 Cranch, 358, 362, 3 L. ed. 370, 371; 3 Kent, Com. 229. Other cases are Smith v. The Mansanito, Fed. Cas. No. 13,075; The James Martin, 88 Fed. 649. See also 3 Kent, Com. 196. In short, we are aware of no decision in this country or in England before the present case which casts any doubt upon the rule.

It was thought by the circuit court and circuit court of appeals that the doctrine so unanimously sanctioned by so many of the most eminent judges of this country and of England is unjust; and the case was put of a long voyage nearly completed and the ship and cargo subsequently brought by salvors intact to the port of destination.

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Bluebook (online)
199 U.S. 119, 26 S. Ct. 8, 50 L. Ed. 115, 1895 U.S. LEXIS 3817, Counsel Stack Legal Research, https://law.counselstack.com/opinion/the-eliza-lines-scotus-1905.