The Paraiso

226 F. 966, 1915 U.S. Dist. LEXIS 1201
CourtDistrict Court, W.D. Washington
DecidedSeptember 9, 1915
DocketNo. 3999
StatusPublished
Cited by4 cases

This text of 226 F. 966 (The Paraiso) is published on Counsel Stack Legal Research, covering District Court, W.D. Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
The Paraiso, 226 F. 966, 1915 U.S. Dist. LEXIS 1201 (W.D. Wash. 1915).

Opinion

NETERKR, District Judge.

The Dong Beach Steamship Company, as owner, and the Pacific Coast Steamship Company, as charterer, of the steamship Paraíso, filed a petition for limitation of liability, under sections 4283 and 4286, Rev. Stat (Comp. St. 1913, §§ 8021, 8024), and allege that oti the morning of August 29, 1915, the steamship collided with the steamship Admiral Watson, and that because thereof the Admiral Watson, sank in 30 feet of water, and that a libel has been filed against ihe Paraíso by the owners and charterers of the Admiral Watson, claiming damage in the sum of $247,000; that other intervening libels have been filed; that the interest of the owner in the Paraíso is worth $172,000, and of the charterer by reason of the charter is $500, and $1,294.84 for pending freight-said petition containing the usual allegations, with the further allegations that each petitioner desires to contest all liability for any loss or damages and prays an appraisement of their respective interests in said vessel, to the end that stipulations with approved sureties for the payment of such ap-praisement of its interest in said vessel and freight pending when such payment shall be directed by the court.' On hearing in open court pr.rsuant to notice it was agreed by the parties that the value of the interest of the owner in said steamship Paraíso is $180,000, and of the charterer in the vessel and pending freight $5,000, and that certain oil tanks placed on the vessel by the charterer for carrying oil for commercial purposes were of the value of $1,000; but it was denied that such tanks were fixtures on said vessel, and that it has been the intention to remove them, and that they were being unfastened at the lime of the collision.

1 think that the tanks at the time of the collision were fixtures on said vessel, as between the charterer and libelants and other claimants, and that the interest of the charterer in said vessel was therefore 86,000. Testimony wras offered which fully sustained the stipulation of the parties. Petitioners each offer to execute the usual bond in such Case, for $180,000 and $6,000, respectively, for the release of the vessel. It is conceded that a bond should be accepted, but it is contended by the claimants that, since the charterer manned, victualed, and navigated flic vessel, it was pro hac vice owner, and that the stipulation shot lid he given by the charterer as principal, and that the owner, so far as this proceeding is concerned, was a stranger and not competent, except as joint maker with the charterer or surety. It is strongly [968]*968urged thát by the provisions of section 4286 the charterer is considered owner of the vessel, and that the Supreme Court, in Thorp v. Hammond, 12 Wall. 408, 20 L. Ed. 419, held that section 5 of the act of March 3, 1851 (9 Stat. 636, c. 43), which is brought forward as section, 4286, R. S., made the charterer owner and the only principal competent to act. It will be noted by the provisions of section 4283 that:

“Tile liability oí the owner of any vessel * * * for any loss, damage, for injury by collision, * * * done, occasioned, or incurred, without the privity or knowledge of such owner or owners, shall in no case exceed the amount or value of the interest of such owner in such vessel, and her freight then pending.”

And by section 4286:

“The charterer of any vessel, in case he shall man, victual, and navigate such vessel at his own expense, * * * shall be deemed the owner of such vessel within the meaning of the provisions of this title relating to the limitation of the liability of the owners of vessels; and such vessel, when so chartered, shall be liable in the same manner as if navigated by the owner thereof.”

The offending thing or wrongdoer is the ship (The John G. Stevens, 170 U. S. 113, 18 Sup. Ct. 544, 42 L. Ed. 969), and the ship, by whomsoever navigated, is liable for damages (Workman v. New York City, Mayor, etc., 179 U. S. 573, 21 Sup. Ct. 212, 45 L. Ed. 314), and the vessel which makes the aggression is considered the offender (The Barnstable, 181 U. S. 464, 21 Sup. Ct. 684, 45 L. Ed. 954). No greater liability under these sections, however, can attach than the interest of the vessel; if the collision was occasioned without the privity or knowledge of the owner or owners, and liability can be limited, then the only liability will be the several interests in the vessel. The vessel is liable in any event, irrespective of the charter party, and the loss of the charterer would be the interest in the vessel and pending freight, or $6,000, and the loss of the owner, the value of the ship, which is $180,000. If the" court required the charterer to malee the stipulation for $186,000, the full value of the vessel and pending freight, it would require the charterer to assume a liability of $180,000, for which, under these sections, it cannot be holden, and to compel the owner to make a joint bond would be to require it to assume $6,000 more than the value of the vessel, the limit of its liability.

The claimants ground their contention on Thorp v. Hammond, supra, decided in December, 1870, in which the court held that the part owner of a vessel operating a vessel on shares, himself manning, victualing, and navigating it, although there was no formal charter party, was a charterer, and liable in personam, for damages occasioned by a collision, and the court (12 Wall. at page 416, 20 L. Ed. 419) used this language:

“He sailed the vessel on sbares, hiring his own crew, paying and victualing them, paying half the port charges, retaining half the net freight after the port charges were taken out, and paying to the general owners the other half. It is clear, therefore, that he must be considered as having been the owner ‘pro hac vice.’ This accords with the authorities generally. Notwithstanding this, however, and though Hammond was the special owner, it has [969]*969boon contended on behalf of the libelants that all the general owners are liable for Hie torts committed by the schooner while she was thus let to charter. The Circuit Court was of opinion that they are not, and this court is equally divided upon the question. But we are all of opinion that the owner pro hae vice is liable, and that he may be charged in this proceeding. The court below held that he had beikn sued merely as a part owner, not as the charterer, wrongdoer, or active cause of the disaster, and that, as his liability was placed by I he libel on the same ground as that of other owners, the suit must stand or fall as to all the respondents, and they held the act of March 8, 1851, a bar to the suit in the form in which it had been brought. The court, therefore. di: missed the libel. This, we think, was an error. The act of March 3, 18ÜÍ, enacts, by its fifth section, that the charterer or charterers of any ship or vessel, in case he or they shall man, victual, and navigate such vessel at his or their own expense, or by his or their own procurement, shall be deemed the owner or owners of such vessel within the meaning of the act. The previous section had declared what shall be the liability of owners for collisions. Hammond, therefore, is. to, be regarded as the owner, because the charterer, and as such responsible for the tortious acts of the vessel. If the other general owners are not, he Is. * * * Had Hammond been suedalone, as he might have been, the libel need not have averred more respecting his ownership than is averred now.

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Cite This Page — Counsel Stack

Bluebook (online)
226 F. 966, 1915 U.S. Dist. LEXIS 1201, Counsel Stack Legal Research, https://law.counselstack.com/opinion/the-paraiso-wawd-1915.