The Garland

16 F. 283, 1883 U.S. Dist. LEXIS 52
CourtDistrict Court, E.D. Michigan
DecidedMarch 5, 1883
StatusPublished
Cited by3 cases

This text of 16 F. 283 (The Garland) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
The Garland, 16 F. 283, 1883 U.S. Dist. LEXIS 52 (E.D. Mich. 1883).

Opinion

BrowN, J.

I bad occasion to hold, not long since, in the case of The Trenton, 4 Fed. Rep. 657, that the sale of a vessel by the maritime court of Ontario extinguished all prior liens and vested a clear and unincumbered title in the purchaser, notwithstanding such prior liens, contracted in 'this country, could not be made the foundation of a proceeding in rem in the Canadian court. An opinion was intimated that the lienholders in such cases were remitted to the proceeds of the sale in the registry of the court, and that their liens would be respected if valid, according to the lex loci contractus. An exception to the validity of such sales was suggested in cases where the proceedings were fraudulent and collusive, if the purchaser at such sale was a party to the fraud. It is claimed by the libelant that this sale was within the exception.

The Garland was built by the Detroit Dry-dock Company and was sold, when the .keel was laid, for $22,000 to one Horn, and mortgaged back for $12,500; one-half payable in six months and the remainder in one year, with interest at 10 per cent. The mortgage contained a proviso that if the vessel should be moved beyond the limits of the United States, or be permitted to run in debt to an amount exceeding $500, the dry-dock company might elect to treat the mortgage as due, and take possession of the vessel and sell her, upon 60 days’ notice. From January 5, 1880, the date of the mortgage, to July 22d, the dry-dock company received from the earnings of the vessel about $2,000, leaving the interest of the mortgagee upon that day about $10,500.

Upon the evening of July 22d, occurred a collision between the Garland and the little steamer Mamie, in which 17 lives were lost. This collision is claimed to have occurred through the fault of the Garland. Shortly after the collision, one of the directors of the Detroit Dry-dock Company was informed by the libelant’s proctor in this case of his intention to file libels in the names of the fathers or administrators of the deceased, and seize the vessel. The director intimated that he would be willing to negotiate the settlement of those claims as soon as the proper parties could be made through the probate court. Before the proper administrators could be appointed in the due course of law, the Garland (which was engaged, partly, at least, as a ferryboat between Detroit, Michigan, and Windsor, in the province of Ontario) was seized at Windsor, by process from the maritime court, for a coal bill of $86.20, in favor of Odette & Wherry, coal dealers at that place. The bill Was only about two months old. The vessel [285]*285was duly appraised at the sum of $17,000, proper notices of salo given, and on September 15, 1880, she was sold to the dry-dock company for the sum of $17,050. A bill of sale was duly executed by the marshal of that court and possession given to the purchaser. A large number of persons were present at the sale, and there appears to have been a sharp competition between, at least, two bidders. As the dry-dock company had no power, under its articles of association, to engage in commerce, a new corporation was formed upon the day of the sale, under the name of the Detroit Diver Ferry Company, to which the dry-dock company made a bill of sale of the vessel.

The record of the maritime court of Ontario, which is in evidence here, shows that on September 7th, two days before the order of sale was made, Cuddy, the libelant in this case, and eleven others, filed their petitions against the steamer for substantially the same causes of action as are set up in these cases; that about the same time there were other petitions for necessaries filed in the same court, amounting in the aggregate to about $4,300. The record also shows that the dry-dock company filed a petition against the steamer for the protection of its interest as mortgagee.

Upon the trial of a tost ease resembling Cuddy’s, except in the fact that plaintiff did not sue in the capacity of administrator for the value of his son’s services, the petitioner was defeated and appealed to the supreme court, which affirmed the judgment of the maritime court, both courts intimating to him that if he had appeared in the capacity of an administrator, instead of a father, suing for the services of his minor child, he might have recovered under Lord Campbell’s act, which has been substantially re-enacted in Canada.

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Bluebook (online)
16 F. 283, 1883 U.S. Dist. LEXIS 52, Counsel Stack Legal Research, https://law.counselstack.com/opinion/the-garland-mied-1883.