The Underwriter

119 F. 713, 1902 U.S. Dist. LEXIS 286
District Court, D. Massachusetts·Decided August 1, 1902·No. No. 1,007·Published·Cited by 9 cases

Opinion

DOWFDD, District Judge.

This was a libel filed against the tug Underwriter for the value of coal furnished her in a foreign port while under charter to the Atlantic Transportation Company. The charter provided that the charterer should pay for coal. The coal was furnished upon the order of the master. The evidence is somewhat conflicting, but I find that the following facts are established:

The libelant, through its officers and agents, either knew that the Underwriter was under charter to the transportation company, or knew enough to put upon inquiry a reasonable man who wished to know if there was such a charter. The libelant did not know that the charter expressly provided for the furnishing of supplies by the charterer, but it was put upon inquiry concerning this fact also, and might easily have ascertained it. The coal was ordered by the master. The libelant charged the coal to the tug and owners, and in fact looked to the tug for payment. There was no contract made between the charterer and the libelant to furnish the coal. The correspondence between the two, if any existed, amounted to no more than a request by the charterer for the libelant’s price list. If the libelant had a right to look to the'vessel for the coal, it did not waive that right by any act. No actual necessity for pledging the credit of the vessel was shown. I'do not think that the conversation between Capt. Wiley and Mr. Abemethy regarding the credit given to the tug was proved. Under these circumstances the court has to determine if a lien exists where, in a foreign port, necessary supplies are ordered by the master of a vessel known by the libelant to be under a charter which provides for the payment for supplies by the charterer. No reference has been made to any statute, and the case must be decided by the general admiralty law. This question has not always received the same answer in the courts of the United States, and similar answers have not always rested upon like grounds. For this reason a somewhat extended examination of the history of the lien of a materialman upon a vessel seems desirable.

The admiralty law on this subject administered in the federal courts is derived rather from the civil law and the maritime law of continental Europe than from the common law of England. Dig. 42, 5, 26, 34, provides, “Qui in navem extruendam, vel instruendam, credidit, vel etiam emendam," privilegium habet.” “Quodquis navis fabricando, [715] vel emends, vel armandae vel instruendae causa, vel quoque modo crediderit, vel ob navem venditam petat, habet privilegium post fiscum.” See Dig. 49, 14, 17. If this language be taken literally, and if “privilegium” be translated “lien,” then, so far as the Roman law is concerned, the question is answered, and a lien is created by a mere contribution to the construction or maintenance of a vessel, irrespective of the authority of the person ordering the work or supplies. The lien depends upon the fact that the materialman has contributed to the existence or maintenance of the object upon which he claims the lien. See, also, Dig. 20, 4, 5. This construction has been put upon these passages by some civilians and by some courts of England and the United States. See The Sandwich, 1 Pet. Adm. 233, note (s. c. Fed. Cas. No. 13,409). This seems to have been the opinion of Mr. Justice Story. See The Nestor, 1 Sumn. 73, 79, Fed. Cas. No. 10,126; The General Smith, 4 Wheat. 438, 4 L. Ed. 609. But in The Young Mechanic, 2 Curt. 404, Fed. Cas. No. 18,180, Mr. Justice Curtis pointed out the difference between “lien” and “privilegium.” A privilege may mean no more than a general priority in the distribution of the debtor’s assets. See Desjardins, Droit Com. Mar. 1, 213. See, also, Pardessus, Lois Mar. I, p. 98, note 4, page 113, note 1, and page 119, note 3, where the author states that, according to the best opinion, an express agreement is necessary to create the lien mentioned in the texts of the digest above quoted. If this be true, then these texts prove no more than that an express hypothecation of the vessel to pay the debt of a materialman gives priority over other liens, hypothecations, and conveyances, and is inferior only to the fisc. Under this construction of the Digest, no lien, exists by force of the repairs and supplies without an express hypothecation of the vessel. The authority to hypothecate, therefore, must be important.

Another text of the Digest seems to have affected more considerably the later continental law regarding the rights of the material-man. Dig. 14, 1, 1-7. “De exercitoria actione.” This text deals with the authority of the master to bind the owner of the vessel for repairs, supplies, seamen’s wages, etc., and his authority to borrow money for these purposes. It declares how far the owner is bound if the master misapplies the money borrowed; and it makes the right of action against the owner to depend, not upon the actual maintenance of the ship, for the right of action may exist where the ship gets no benefit, but upon the authority of the master to contract, reasonably supposed to exist by the materialman or lender. How far this text deals with a lien upon the ship, rather than with the personal liability of the owner, is not clear.

The maritime law of England was affected more directly by the maritime laws of continental Europe than by the Roman law. As applied in the English admiralty, the civil law was usually, though not always, first passed through a later continental medium. It is to “the ancient collections of sea laws,” as Mr. Justice Curtis calls them, rather than to the Digest, that reference is commonly made by modern judges; and it was these collections, rather than the civil law at large, by which the commons of England in the fifteenth century [716] wished the English courts of admiralty to be governed. I Rolle, Abr. 528; 3 Rolls Pari. 498. Of these laws, in their relation to the Roman law and to maritime liens, Mr. Justice Curtis said in The Young Mechanic, 2 Curt. 404, 408, Fed. Cas. No. 18,180:

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