The Fanny

8 F. Cas. 990
CourtDistrict Court, S.D. New York
DecidedFebruary 15, 1841
DocketCase No. 4,637
StatusPublished

This text of 8 F. Cas. 990 (The Fanny) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
The Fanny, 8 F. Cas. 990 (S.D.N.Y. 1841).

Opinion

•-BEETS, District Judge.'

The steamboat Fanny haring been sold under a decree of this court, and the proceeds brought into •court, rarious petitions were filed claiming ■satisfaction of demands accruing for materials furnished or services performed on board the boat. These petitions were referred to the clerk to examine and marshal the respective claims, and report to the court the amounts due thereon and the considerations upon which they rested. On the coming in of the report, exceptions have been taken to the allowances made therein, and, as the right of the several petitioners to any •compensation out of the fund is an open ■question not yet adjudged by the court, it is also objected that no part of the respective claims can be recovered in this manner. The Ip'etitioners in their own behalf thus become, in some instances, the opposers of the petitions of others.

George C. Knight claims to be entire owner of the steamboat, and entitled to all the funds after satisfaction of such demands as may be deemed to be liens on the boat.' But the title of Knight to more than a moiety of -the boat is contested by Baucher, and upon the proofs it is rendered at least doubtful whether he can maintain a right to more than one half the proceeds, and even strong •shades of suspicion are thrown upon the justice of his claim to that This part of his claim is not, however, directly contested before the court, Gibbons, the only one shown -to have an interest in it, not having made "himself in any way a party to these proceedings. It is a sufficient objection to the petition of Knight that his right to the fund is In dispute, and that the proceedings »re not so shaped that the matter can now be properly and definitely decided. If this court is competent to the adjustment of the equitable title of the respective partie’s to these monies, it could not assume such jurisdiction in a summary and ex parte proceeding, but would require the case to be put in such form that all parties could litigate upon their interests, and that the judgment of the court •could be subject to review. Courts of admiralty would, as a general rule, regard an ■objection to the title of the petitioner to the fund as sufficient to stay all summary action in the matter. The Maitland, 2 Hagg. Adm. 233. Accordingly, the monies coun-teiyclaimed by Knight and Baucher must remain in court until the one or the other establishes a clear title to them. And unless some one intervenes in respect to the other half, or the case is removed to a higher court upon such grounds as shall bring the whole subject passed upon here under review, I shall order that portion of the funds to be paid over to Knight or his proctor, after •such deductions as may be hereafter speci•fied.

In respect to the other petitions, it may be •considered an established principle governing courts of admiralty in the disposition of remnants and surpluses remaining in court, that they will be applied in satisfaction of outstanding claims in themselves or their origin liens on the thing out of which the fund is produced. Gardner v. The New Jersey [Case No. 5,233]; Brackett v.The Hercules [Id. 1,762]; Harper v. New Brig [Id. 6,090]; 5 Wend. 540. This doctrine is probably subject to the exception that the lien be of a character to be enforced in admiralty (The Robert Fulton [Case No. 11,S90]), and that the matter in demand is not controverted (2 Hagg. Adm. 253). Libels were filed upon several of these demands against the boat, and the decisions rendered by the courts in those suits apply to the character Of most of the other petitions. ' The lien claimed .for those demands was under the statute, and tiie court decided that the cases did not come within the statute, and the libels were accordingly dismissed. The matter of the same libels is now presented in the form of petitions against the proceeds In court, and they are supported by arguments which assume that the court, by virtue of its general powers over the proceeds, can exercise equi-. ties existing in respect to them, or the owner, when distribution of the funds is desired, which could not be enforced here by a direct action in rem or in personam. Such doctrine would necessarily import that the court can direct accounts to be taken between such parties, and indeed perform all the essential powers of a court of chancery in order to arrive at a just adjustment of the respective rights and equities of parties. Such powers are out of the sphere of its jurisdiction, even in respect to causes pending in court, and indisputably within its cognizance. [The Orleans v. Phoebus] 11 Pet. [36 U. S.] 175. In respect, therefore, to all the cases of material men, wharfingers, etc., the demands not being, in themselves or their origin, liens which could be enforced in this court against the boat, they are not entitled to come upon the fund in court under the principle on which that species of relief is ordinarily administered. This court has extended the rule beyond the limits assigned it in the Pennsylvania district, and applied it to demands not controverted which are within the jurisdiction of the court, although clothed with no privilege, and it has accordingly held that such claims suable here in per-sonam are entitled to like relief out of the-remnants as if they carried liens with them. It seems to me there is a most impressive equity sustaining such decision, when the justness and amount of the demand is not disputed, and the matter is in prosecution in the court holding the funds which ought to satisfy it. This carried the doctrine no fur-' ther than courts of law go in extending relief to their suitors. They order, as matter of course, monies raised from a party and brought into court on one-execution to be [992]*992paid over on other executions against the same party (Doug. 219); [Turner v. Fendall] 1 Cranch [5 U. S.] 117), and sometimes even direct the transfer to be made by the sheriff, the money and the subsequent execution being in his hands (3 Caines, 84), especially if the right of the junior execution creditor is ascertained (5 Johns. 163; 1 Wend. 87). If, then, the demand is authenticated by a decree, it would fall directly within the principle of those cases, and, instead of enforcing the decree by execution against the property or person of the respondent, the court might order it satisfied out of his surplus about to be paid him from the registry. Nor would the principle be any way varied by regarding a demand not disputed as standing upon equal equity with one reduced to judgment, and discharging it without waiting till it is pushed to a formal decree, and charged with a heavy burthen of costs.

Two objections intervene to prevent the most of the petitioners availing themselves of either of those rules for the admission of their demands: First, that they establish no right of action against Knight, who claims the entire fund, the debts having accrued previous to the 5th of December, 1840, when he became owner of the boat; and, second, that he denies the liability of the boat to these debts, and he is entitled to be heard in defence before his property shall be appropriated to their payment It is true that Sir Wm. Scott in one instance did admit claims to be satisfied out of the remnants in the registry, for which no action could have been sustained in that court. The John, 3 C. Rob. Adm. 288. Sir Christopher Robinson doubts the authority of the court to that extent (The Maitland, 2 Hagg. Adm. 253), and it would certainly present somewhat of an anomalous doctrine to admit the power of the court to pass upon and satisfy demands indirectly and without suit of which it could take no cognizance under any form of action.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Williams v. Rogers
5 Johns. 163 (New York Supreme Court, 1809)
Johnson v. Steam-Boat Sandusky
5 Wend. 510 (New York Supreme Court, 1830)
Armstrong v. Percy
5 Wend. 535 (New York Supreme Court, 1830)
American Insurance v. Coster
3 Paige Ch. 323 (New York Court of Chancery, 1831)

Cite This Page — Counsel Stack

Bluebook (online)
8 F. Cas. 990, Counsel Stack Legal Research, https://law.counselstack.com/opinion/the-fanny-nysd-1841.