The Hull of a New Ship

12 F. Cas. 860, 2 Ware 203
CourtU.S. Circuit Court for the District of Maine
DecidedSeptember 15, 1842
StatusPublished
Cited by3 cases

This text of 12 F. Cas. 860 (The Hull of a New Ship) is published on Counsel Stack Legal Research, covering U.S. Circuit Court for the District of Maine primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
The Hull of a New Ship, 12 F. Cas. 860, 2 Ware 203 (circtdme 1842).

Opinion

WARE, District Judge.

With respect to most of the claims that were presented and proved before the master, there was no controversy before him, and there has been no opposition to their allowance before me. Being for labor performed and materials furnished for the vessel and actually used, It is admitted that under the statute they ■attach to her as privileged debts, and the suits having been commenced within four days after she was launched, the vessel is bound for them in specie. Being maritime liens, there is no doubt that they may be enforced by process in the admiralty where all may join and have their rights settled in a single suit, or may intervene for their own interest, after a libel has been filed,' and have the whole matter disposed of in, or under, one proceeding or one attachment, instead of having as many suits as there are creditors. Where the local law gives a lien, it may be enforced in the admiralty. Peyroux v. Howard, 7 Pet [32 U. S.] 324; The General Smith, 4 Wheat. [17 U. S.] 438.

Two of the claims against the vessel have been contested; not by the owner, he admits them, but by the other creditors, and the contest has been not so much whether these are privileged debts against the vessel, as whether they stand in the same rank of privilege with the others. The first and the most considerable, is Purinton’s claim. Before Knight began to build the ship he entered into a contract by which Purin-ton agreed to make advances to him for the purchase of materials and payment of the laborers, while the ship was being built, and on the part of Knight it was agreed that he should have a lien on the ship for his security. A doubt was suggested at the argument whether a contract for the hypoth-ecation of a thing not in existence at the time of the contract is not ipso jure void. It is true that one cannot give an interest' or lien on future things by way of pawn or pledge, because the delivery of the possession is necessary for the completion of this contract. But an interest may be given by a contract of hypothecation independent of the possession; and I see nothing in the nature of the thing that should prevent one from giving such a right, not only in what he has in present possession, but in what. he may afterwards acquire. A man may by a valid contract of sale dispose not only of what he has at the time of the contract, but by such a contract he may bind his future acquisitions. As when one sells his harvest of corn before it is grown, or his share in a fishing voyage before the fish are taken. There is no. doubt that such contracts are binding -on the parties when not prohibited by any special law, although'there is nothing in being at the time to which they apply. They attach to and bind the thing as soon as It comes into existence. If future acquisitions, not in existence at the time, may be bound) by a contract of sale, so that, the interest passes to the vendee as soon as they come into existence, no obvious reason occurs to me why they may not as well be bound by a contract of hypothecation. In the case of Macomber v. Parker, 14 Pick. 497, such ,a contract for the hypothecation of bricks, before they were made, was held to be a valid and binding contract, and that it attached and gave to the creditor an interest in the bricks as fast as they were made. Story, Bailm. § 294. A contract for the hypothecation of one’s future acquisitions not yet in being was clearly valid by the Roman law. “Quae nondum sunt, futura tamen sunt,, hypothecae dari possunt; ut fructus pendentes, partus ancillae, foetus pecorum, et ea quae nascantur, sint hy-pothecae obligata.” Dig. 20, 1, 15; Dom. Lois Civiles, liv. 3, tit. 1, § 1, No. 5.

There is then no reason why the contract of Knight should notx operate as a valid hypothecation of the vessel, and bind the property while it was in progress and as fast as it was built It was obligatory between the parties, and it binds Knight’s interest in the vessel. Whether Purinton could hold it under this contract, against a third person, as a purchaser or an attaching creditor without notice, is not necessary to be considered in this case. The only question here is, whether it gave him a lien holding tue same rank of privilege with those of the mechanics and material-men. The lien of Purinton stands on his contract, and can have no other force and extent than what is derived from that. That of the material-men and laborers has its origin in the law independent of contract, and is to be allowed such an extent and operation as will carry into effect the intention of the law-maker. The lien of Purinton covers the whole interest which Knight had in the vessel, but no more. He could give no more. “Nemo plus juris in alium transferee potest quam ipse -haberet” Dig. 50, 18, 54. If this had been, a contract of sale instead of hypothecation, the vendee, when the ship was completed, would have taken precisely the interest which the vendor then had. That would have been the whole ship, subject to the unpaid demands for labor and ma[862]*862terials used in her construction, and would have taken precedence of these, if process was not sued out within four days after she was launched. But during that time the rights of the material-men and laborers continued under the statute, as privileged liens having precedence over all others. The builder could give no more extensive rights by a contract of hypothecation than he could by a sale. The title of Purinton under his contract must therefore be postponed to the liens of the opposing creditors who claim under the statute.

There is another ground on which'he claims to be paid part of his demand concurrently with those who claim under the statute lien. It is this, that the advances made by him were in payment of this very class of creditors. The amount under this' head is $2,-368.43, and the argument is that he may toe substituted as a privileged creditor in the place of those whose claims -he has paid. These payments were made by him on orders drawn by Knight in favor of the workmen, and the payments extinguished the debts. They were not kept alive by an assignment of them by the creditors, but by the payment they were absolutely extinguished and gone, and Purinton became a ■creditor of Knight, not as assignee of the ■original debt, but by virtue of the order which was paid. When the debt was extin- • .guished, the lien which was incidental to it ■ was gone also. The only way by which the.' lien could be preserved would have been by .an assignment of the debt, unless there had been' a special agreement with Knight, the debtor, that upon the payment, the lien should be continued in his favor. Dom. Lois Civiles, liv. 3, tit 1, § 6. No. 5. By such an agreement, in the Roman law, the new creditor might be subrogated to the privileges of. the old one without an assignment of uie debt, and in our law perhaps the same might • be allowed where it did not conflict with the rights of other parties. But these advances and payments were made under the contract. The ship was hypothecated as a security for them, and by this contract Purin-ton was put in the place of the owner.' If either of these precautions had been taken, it is at least doubtful whether it would have strengthened his claim.

Another part of his demand, for which he claims an equal privilege with the material-men and, mechanics, is for money procured by him and expended on the ship, in payment for materials and of the wages of the ■workmen. In this is included $838.75, obtained oil notes of Knight, indorsed and ■taken up and paid by him, and also $2,500 procured on Knight’s note, indorsed by him, which remains unpaid, and which, as Knight is insolvent, must be paid by him. Here .again, the security originally contemplated was the hypothecation of the ship.

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Bluebook (online)
12 F. Cas. 860, 2 Ware 203, Counsel Stack Legal Research, https://law.counselstack.com/opinion/the-hull-of-a-new-ship-circtdme-1842.