The Robertson

20 F. Cas. 940, 8 Biss. 180
CourtDistrict Court, E.D. Wisconsin
DecidedMarch 15, 1878
StatusPublished
Cited by2 cases

This text of 20 F. Cas. 940 (The Robertson) is published on Counsel Stack Legal Research, covering District Court, E.D. Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
The Robertson, 20 F. Cas. 940, 8 Biss. 180 (E.D. Wis. 1878).

Opinion

DYER, District Judge.

On the 14th day of August, 1876, the steam barge Mary R. Robertson, a foreign craft, hailing from a Canadian port, and owned by Frederick A. Robertson, was at the port of Milwaukee, and was there seized under a monition issued out of this court upon a claim for supplies furnished the vessel by Frederick G. McDowell and others. The owner interposed his claim of ownership in the action, and being a stranger at the port of Milwaukee, and without money or credit, applied to the present libellant to sign a stipulation for the release of the barge from the custody of the marshal, and thus enable her to proceed on her voyage. Upon repeated solicitations, and upon the understanding with the owner that he should have — and in the belief that by operation of law he would have — a lien upon the barge, the libellant, Young, executed the required stipulation, which was filed in the proceedings then pending, and the barge was enabled to proceed upon her then pending voyage. By virtue of the stipulation thus made, Young became liable to pay the claim of the original libellants if decree should be rendered in their favor. Subsequently such a [941]*941decree was entered, execution was issued, and on the 19th day of September, 1876, Young was compelled to pay. and did pay, the amount of the decree, with interest and costs, amounting in all to 830S.13. To induce, the present libellant to sign the stipulation, in addition to the representation and understanding that libellant would have a lien on the vessel, the owner, Robertson, agreed, for purposes of further indemnity, to deposit $250 with William Young & Co. as soon as he could obtain it, and thereupon drew a draft for that amount upon himself, payable on demand at Goderich, Canada, which was dishonored and never paid. Young’s dealings in the transaction were entirely with the owner of the vessel. The answer of the present claimant alleges that in March. 1877, the barge was sold at public auction at a Canadian port under and by virtue of a mortgage then existing upon the vessel, and they became the purchasers and paid full value without knowledge or notice of the present libellant’s claim. These allegations of fact are not disputed.

The libellant files the present libel .against the barge to recover the amount paid by him upon the former decree in favor of McDowell and others, insisting that by virtue of the proceedings before recited he lias a lien which may be enforced in admiralty. The claimants, on the other hand, insist that libellant’s remedy is not in rem against the vessel, but is one that is only enforceable against Robertson, the former owner." '

' Various propositions stated by the learned counsel for the libellant in his. argument are indisputable. There is no doubt that a maritime lien may arise or be implied for necessary advances made and necessary supplies furnished on the request of the owner of a vessel. This was held in the cases of The Guy, 9 Wall. [76 U. S.] 758, and The Kalorama and The Custer, 10 Wall. [77 U. S.] 204, 215. In the two last mentioned cases the proposition is thus stated: “It is no objection to the assertion in the admiralty of a maritime lien against a vessel for necessary repairs and supplies to her in a foreign port, that the owner was there and gave directions in person for them, the same having been made expressly on the credit of the vessel.”

It is also well settled that, “where proof is made of necessity for the repairs or supplies, or for funds raised to pay for them by the master, and of credit given to the ship, a presumption will arise, conclusive in the absence of evidence to the contrary, of necessity for credit.” The Grapeshot, 9 Wall. [76 U. S.] 129. Numerous cases cited in the brief of counsel also affirm the rule that a maritime lien may exist for moneys advanced to purchase or pay for necessaries supplied to a ship, in favor ‘of the person making such advances, in cases where such lien existed or would arise for the uecessaties themselves. As the rule is stated in Thomas v. Osborn, 19 How. [60 U. S.] 28, “it is not material whether the hypothecation-express or implied — is made directly to the furnishers of repairs and supplies, or-to one who lends money on the credit of the vessel, in a case of necessity, to pay such furnishers.”

Invoking these general principles, counsel for libellant claim that the exigency in which the barge was placed by reason of her seizure under the libel in favor of McDowell, the vessel being in a foreign port and the owner being without money or credit, created a case of necessity, and that the transaction on the part of libellant as the signer of the stipulation which secured the release of the barge, was in effect an advance of money on the credit of the vessel for the payment of necessary supplies, and that within the principles before stated, a maritime lien was created which may now be enforced against the vessel; that the signing of the stipulation and the -ultimate payment of the money was in effect one continuous transaction, and that the right to the lien accrued when the stipulation was signed, and the right to enforce it arose -when the decree was paid by the stipulator; furthermore, that libellant became subrogated to the rights of McDowell, the original nDel-lant and furnisher of supplies, and that up-on the equitable principles of substitution, he may enforce against the vessel the same security and remedy as that held by the original creditor. I was impressed on the argument with the force of this view of the case. But in testing its soundness, serious difficulties arise. If by signing the stipulation and paying the amount of the McDowell decree, libellant was placed in the position of a party who, in a case of necessity and on the credit of the ship advances money for supplies or to pay the furnisher of supplies, thus enabling the vessel, then in a foreign port, to pursue her voyage, it would seem that he should have a lien. If he is in the position of a party who advances to the master or owner, money to pay the wages of a seaman, thereby becoming subrogated to the rights of the seaman as against the vessel and acquiring as security for his advance the seaman's lien, then the question is free from difficulty. Counsel for the respondents admits that if the libellant, instead of signing the stipulation had at the time advanced the money to pay the McDowell claim, he would have been subrogated to McDowell’s rights and have a lien.

The question which the case- suggests, seems to center in the inquiry, when did libellant's lien, if any, accrue? When and by virtue of what acts did he become sub-rogated to the rights of the party holding the primary claim and lien? The vessel was under seizure. He executed a stipulation by operation of which the vessel was released [942]*942Tlie stipulation or bond took tbe place of tbe vessel. Tbe original libellant could no longer pursue tbe vessel. The liability of the stipulator became substituted for tbe original lien. Tbe lien was then gone, tbe debt, however, remaining unpaid. Did Young then acquire a lien upon the vessel, or become sub-rogated to any rights of tbe then libellant McDowell? It seems quite plain that he did not, for tbe reason that be then parted with nothing. Up to that time he had made no adtances for payment of the claim out of which the original maritime lien sprung. He had done that which in the law gave to the owner a release of his vessel, and by substitution of his voluntary individual liability debarred the original creditor from further asserting a lien upon the vessel.

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Bluebook (online)
20 F. Cas. 940, 8 Biss. 180, Counsel Stack Legal Research, https://law.counselstack.com/opinion/the-robertson-wied-1878.