The Poznan

9 F.2d 838, 1925 U.S. App. LEXIS 2465, 1925 A.M.C. 1289
CourtCourt of Appeals for the Second Circuit
DecidedJuly 13, 1925
Docket243
StatusPublished
Cited by40 cases

This text of 9 F.2d 838 (The Poznan) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
The Poznan, 9 F.2d 838, 1925 U.S. App. LEXIS 2465, 1925 A.M.C. 1289 (2d Cir. 1925).

Opinion

ROGERS, Circuit Judge (after stating the facts as above).

The libel in this case was filed against the steamship Poznan by the dock company as the owner of a private wharf under a license issued by the city of New York. The libelant claimed that for wharfage services extended to the vessel there was due to it the sum of $17,462.03, with interest. It asserted that demand of payment had been made, but payment had been negv lected or refused. It prayed that a decree for the amount named might be entered, and that the vessel might be condemned and sold to pay the demand.

It appears that, prior to the filing of the libel above mentioned, the ship had been libeled by Joseph H. Davis and various other libelants, including the John B. Harris Company. These libels were filed for breach of contract of affreightment. By order of the court they were consolidated into one suit, which is hereinafter referred to as the consolidated cause. In that cause a decree was entered in favor of the libelants, the vessel was sold, and the proceeds were paid into the registry of the court. They were insufficient to satisfy the decree.

In the meantime the dock company had *841 filed its libel (the instant ease) which libeled the vessel for wharfage, and the John B. Harris Company intervened, excepted, and later answered to protect its lien obtained in the consolidated cause.

The court below decreed in the instant case that the libelant, the dock company, should recover the sum of $20,325.41. This amount included interest and costs. It ordered and-decreed that this sum constituted a prior lien to that of the John B. Harris Company and the various other libelants in the consolidated cause who filed the earlier libel for breach of the contract of affreightment, and who obtained the decree under which the Poznan was sold, and which resulted in the deposit of the proceeds in the registry of the court. This decree was entered in the instant case on June 17, 1924.

At the time of this suit about $240,000 was left in the registry, being the proceeds of the sale. It is agreed that the libels in the consolidated cause claim damages aggregating about $1,700,000, and that the actual provable damage will exceed the amount left in the registry of the court.

The John B. Harris Company, in its own behalf and that of the other libelants in the consolidated cause which had been previously commenced against the Poznan, appealed from two decrees entered in the suit now before the court. These were:

(1) An interlocutory decree dated July 23, 1923, which decreed that the libelant (the dock company) had an equitable lien upon the proceeds in the registry for the value of its wharfage services, and that this equitable lien had priority to the prior maritime liens against such proceeds of the libelants in the consolidated suit.

(2) The final deeree of June 17, 1924, which decreed that the total sum duo to the libelant (the dock company), including interest and costs, amounted to $20,325.41. And it further decreed that the aforesaid amount constituted a prior lien upon the proceeds of the sale of the ship deposited in the registry of the court, and it directed that the said amount should be paid “and discharged in full out of said proceeds in priority and preference to any payment from said proceeds to John B. Haras Company, the intervener herein, or to the libelants in the said consolidated cause of Joseph II. Davis against the steamship Poznan, her engines, etc., et al., or to either of them; and it is further ordered, adjudged, and decreed that New York Dock Company, the libelant herein, recover of said John B. Harris Company, intervener, such part of the costs heretofore or hereafter taxed herein as shall not be satisfied from the proceeds of said vessel.”

The District Judge, disposing of the libel brought by the dock company, held that, after tlie vessel was arrested, no maritime liens arose against her, and that, in so far as the bill depended upon a maritime lien, it failed. But he held that the dock company, which furnished the wharf, while it did not have a maritime lien on the ship, nevertheless had an equitable claim on the fund in the registry of the court, and that this amounted to an equitable lien against the lienors’ (the John B. Harris Company and various other libelants) rights in the vessel arising after she was in custody. He held that it “was a lien on their liens justifiable in this court only because the court had custody of the vessel under the arrest. That was the holding in The St. Paul (C. C. A.) 271 F. 265. It was not necessary that the lienors should consent, though possibly a consent might here be spelled out. A lien may arise based upon equitable considerations when the circumstances are such that the owners have enjoyed a benefit which it would be unjust for them to retain at the expense of him who rendered the services.” From that decision the John B. Harris Company, intervener on its own behalf and that of the other libelants in the consolidated cause, has appealed.

It is therefore necessary for this court to determine whether the dock company’s claim against the Poznan for the use of the wharf gave rise to an equitable lien which is entitled to priority over the lien of the John B. Harris Company and the other libelants in the consolidated cause, whose liens arose out of a breach of contracts of affreightment.

No question is raised on this appeal as to the right of shippers to a lien on the ship for the performance of a contract of affreightment. It is a thoroughly established principle of the general maritime law that the vessel is liable in rem for the performance of its agreement for the transportation of goods; the goods having been laden on board. The Bark Edwin, 24 How. 386, 16 L. Ed. 599; The Freeman, 18 How. 182, 15 L. Ed. 341; The Yankee Blade, 19 How. 82, 15 L. Ed. 554; The Hermitage, Fed. Cas. No. 6,410, 4 Blatchf. 474; The Bark Winslow, Fed. Cas. No. 11,736, 4 Biss. 13; The Flash, 1 Abb. Adm. 67, 9 Fed. Cas. 252, Case No. 4,857; Scott v. The Ira Chaffee (D. C.) 2 F. 401. In the Freeman Case, supra, Mr. Justice Curtis said: “Under the. maritime law of the United States the vessel *842 is bound to the cargo, and the cargo to the vessel, for the performance of a contract of affreightment.” The right of a lien in such cases is recognized in Osaka Shosen Kaisha v. Pacific Export Lumber Co., 260 U. S. 490, 499, 43 S. Ct. 172, 174 (67 L. Ed. 364), where the court said: “The contract of affreightment itself creates no lien, and this court has consistently declared that the obligation between ship and cargo is mutual and reciprocal and does not attach until the cargo is on board or in the- master’s custody. We think the lien created by the law must be’mutual and reciprocal; the lien of the cargo owner upon the ship is limited by the corresponding and reciprocal rights of the shipowner upon the cargo.”

And in The Esrom, 272 F. 266, 270, decided in this court, it was said: “But the lien of the vessel upon the goods and of the goods upon the vessel attaches from the moment the goods are laden on board.” That an action in rem lies against a vessel for breach of a contract of affreightment is not controverted in this ease, and is not before this court.

The question which is here relates to wharfage.

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Bluebook (online)
9 F.2d 838, 1925 U.S. App. LEXIS 2465, 1925 A.M.C. 1289, Counsel Stack Legal Research, https://law.counselstack.com/opinion/the-poznan-ca2-1925.