The Titanic

209 F. 501, 1913 U.S. Dist. LEXIS 1130
District Court, S.D. New York·Decided April 21, 1913·Published·Cited by 2 cases

Opinion

HOLT, District Judge.

The questions involved in this case arise upon exceptions to a petition for the limitation of liability filed by the Oceanic Steam Navigation Company, Limited, as owner of the British steamship Titanic. The petition alleges, in substance, among other things, that the petitioner, the Oceanic Steam Navigation Company, Limited, is a British registered company, operating a line of cargo and passenger steamships between Southampton and New York; that the petitioner was the sole owner of the steamship Titanic, built in Belfast and launched in 1911; that on April 10, 1912, the Titanic, with passengers and cargo on board, left Southampton on her maiden voyage, bound for New York; that on April 14, about 11:40 p. m., in mid-ocean, in latitude 41° 46' N. -and longitude 50° 14' W., the Titanic came into collision with an iceberg, as a result of which she sank about 2:20 a. m. on April 15, 1912; that 711 persons were saved in the [502]*502boats; that her master, many of her officers and crew, and a large number of passengers, perished; that the vessel, her cargo, the personal effects of the passengers and crew, the mails, and everything connected with the vessel, except 14 lifeboats and their equipment, became a total loss; that the value of the lifeboat's saved and of the pending freight and passage moneys 'did not exceed the sum of $91,-805.54; and that the petitioner claimed exemption from liability. The petition prayed that an appraisement be made of the value of the petitioner’s interest in the Titanic, and of her pending freight; that an order be made authorizing the petitioner to file a stipulation for the payment into court of the amount of said value whenever the court should order; that the court issue a monition requiring claimants to appear before a commissioner and prove their claims; that an injunction issue restraining the prosecution of suits against the petitioner except in the present proceeding, and that the court adjudge that the petitioner’s liability be limited to the value of the petitioner’s interest in the steamship at the end of the voyage. Annexed to the petition is a list of claimants who have filed proofs of claims against the owner of the Titanic. Among them are Harry Anderson and William J. Mellon These claimants have separately filed exceptions to the petition. The exceptions of Mellor are as follows;

(1) That the petition does not state facts sufficient, to show a cause of action for limitation of liability Under United States law, and the i>ractice of this court; (2) that the petition shows on its face that the acts by reason of which and for which it claims limitation of liability took place on board a British registered vessel on the high seas, ’ and not within the territorial waters of any state or country, and therefore the law of Great Britain with reference to limitation of liability, if any, would apply, and not that of .the United States.

The exceptions filed by Anderson, although somewhat more detailed, are substantially to the same effect.

The question whether the owner of a foreign ship could claim exemption from liability under the Limited Liability Act of March 3, 1851, c. 43, § 1, 9 Stat. 635, which was substantially re-enacted in sections 4282 to 4289 of the United States Revised Statutes (U. S. Comp. St. 1901, pp. 2943-2945), is one which was considered early in the cases arising under the act. When that act was passed there was a substantially similar statute in force in Great Britain. The English courts had uniformly held that, in the case of collisions between British and foreign vessels, or between two foreign vessels, neither party could take the benefit of the British act, but each was liable without limit for negligence causing disaster at sea. The Wild Ranger, P. C. Lush. Adm. 553; Cope v. Doherty, 2 De Gex & J. 614; The Carl Johan, 3 Hag. Adm., 186; The Amalia, 1 Moore P. C., N. S., 471; The Zollverein, Swabey, 96; The Saxonia, Lush. Adm., 410. These cases, were all based on the general doctrine that the laws of Great Britain have no extraterritorial effect. By the Merchants’ Shipping Act of 1894, the previous statutes were repealed, and now by that- act the owners of a ship, British or foreign, are liable for damages in respect to loss of life or personal injury to an aggregate amount not exceeding ¿15 for each ton of the ship’s tonnage, and, in [503]*503respect to loss or damage to vessels, goods, merchandise, or other things, to an aggregate amount not exceeding ¿8 for each ton of the ship’s tonnage. MacLachlan’s Law of Merchant Shipping (5th Ed.) p. 129.

The first of these cases under the American statute to which my attention has been called was the case of Dyer v. National Steam Navigation Co., 3 Ben. 173, 8 Fed. Cas. 204, which on appeal is generally cited as the case of The Scotland. The facts in that case were that the British steamer Scotland came into collision with the American ship Kate Dyer on September 8, 1866, about 180 miles off Sandy Hook. The Kate Dyer sank immediately. The Scotland, badly damaged, attempted to reach New York, but sank about two miles from Sandy Hook, at a spot where the Scotland Lightship has since been stationed. The suit was brought in personam by the owners of the Dyer against the owner of the Scotland. In that suit, among other defenses, the defendant pleaded that “there is no liability in personam against these respondents for said loss of the Kate Dyer.” 8 Fed. Cas. 208. There is no reference to this defense in the opinion of Judge Benedict, before whom the case was tried. He decided that the Scotland was in fault for the collision, and rendered a judgment in favor of the libelants for the value of the Kate Dyer. The case was appealed to the United States Circuit Court, and heard before Judge Blatchford. In his decision he considers the defense pleaded of exemption from liability, and refers to the fact that the answer does not state whether the alleged nonexistence of liability is claimed under the act of March 3, 1851, or under the general maritime law. Considering the question on the theory that the act of 1851 applied, Judge Blatchford says .that no proceedings were instituted by the defendant to obtain an exemption from liability, and that no transfer of interest in the vessel and freight to a trustee had Been made, that certain anchors, chains, rigging, etc., hád been saved from the steamer, which were of the value of several thousand dollars, and that that property or its proceeds should have been surrendered or transferred, if the act of 1851 was to be availed of. He, therefore, held that, there having been no such surrender, and no proceedings taken by the defendants to obtain exemption from liability, the defense could not be maintained. He adds at the close of that portion of his opinion which deals with this question:

“I have not found it necessary to determine tlie question wlietlier the act of 1851 applies to the owners of a foreign vessel who seek the benefit of that act.”

He then considered the question whether, under the general maritime law, the defendant is exempt from liability, and held that, as he had not surrendered what was left of the vessel, such exemption could not be claimed under that law. An appeal was taken to the United States Supreme Court, but the case in that court was -not decided until 1881. Meanwhile several other cases arose, and were decided in District Courts.

In Thommessen v. Whitwill, 9 Ben. 403, Fed. Cas. No. 13,929, the facts were that the Norwegian bark Daphne-came into collision with [504]*504the British steamship Great Western, about 180 miles from Sandy Hook.

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The Titanic, 209 F. 501, 1913 U.S. Dist. LEXIS 1130 (S.D.N.Y. 1913).

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