Transportes Maritimos Do Estado v. T. A. Scott Co.

295 F. 829, 1924 U.S. App. LEXIS 3248, 1924 A.M.C. 437
CourtCourt of Appeals for the Third Circuit
DecidedJanuary 9, 1924
DocketNo. 3024
StatusPublished
Cited by12 cases

This text of 295 F. 829 (Transportes Maritimos Do Estado v. T. A. Scott Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Transportes Maritimos Do Estado v. T. A. Scott Co., 295 F. 829, 1924 U.S. App. LEXIS 3248, 1924 A.M.C. 437 (3d Cir. 1924).

Opinion

WOOLLEY, Circuit Judge.

The question brought here on this appeal, broadly stated, is whether the district court lost its jurisdiction in admiralty on a suggestion of immunity of a foreign sovereign from suit. The general rule exempting a government, sovereign in its attributes, from being sued without its consent is not disputed. Porto Rico v. Rosaly, 227 U. S. 270, 33 Sup. Ct. 352, 57 L. Ed. 507. The real question in the case is whether the sovereign, under the circumstances, gave or withheld its consent.

The steamship Sao Vicente stranded on Packet Rock, Sconticut Point, Massachusetts. She was floated and delivered at New Bedford by the T. A. Scott Company. Later she made her way to New York Harbor where, incurring debts for repairs and supplies and failing to pay them, she was arrested under several libels filed in the District Court of the United States for the Southern District of New York and under this libel filed in the District Court of the United States for the District of New Jersey. Being represented in several suits by the same proctors who pursued in each suit the same line .of defense, the proceedings in some of the actions are, in .the main, the same, and, to a certain extent, the questions raised are likewise the same. Hence, we refer to the opinion of the Circuit Court of Appeals for the Second Circuit in The Sao Vicente, 281 Fed. 111, for a statement in detail of proceedings which, with the quoted pleadings, are, in a measure, similar, mutatis mutandis, to those in the case at bar.

We shall discuss the law applicable to the proceedings in the order in which they occurred.

On April 11, 1921, the T. A. Scott Company filed a libel in the district court against the steamship Sao Vicente and Transportes Marítimos Do Estado for salvage services. Whatever may be the character of this body, there can be no doubt of the libellant’s right to institute suit or of the jurisdiction of the district court initially to entertain suit against it. Nor did the Transportes Marítimos Do Estado question either this right of the libellant or the jurisdiction of the court just then, but appeared by its proctors and filed a claim of ownership in the usual form, concluding with a prayer for leave to defend thg action. 281 Fed. 112.

There was nothing said or done to indicate either the fact or purpose of a special appearance. Without doubt the claimant’s appearance was general. Pursuant thereto, its proctors proceeded to a stipulation for [831]*831costs, and to a stipulation for value in the usual form (281 Fed. 113), upon condition to “abide by all orders of the court, interlocutory and final, and to pay the amount awarded.” Whereupon the ship was released from custody and she sailed away.

On June 2, 1921, the claimant changed its proctors. On the same day, its new proctor filed its answer, traversing none of the averments of the libel but raising for the first time the defense that the ship is a Portuguese vessel owned and operated by the Transportes Marítimos Do Estada, which is a department of the Republic of Portugal; that it objects to and protests against the assumption of jurisdiction by the district court in a suit to which the sovereign foreign government has not consented, maintaining that the settlement of the matter in dispute “should be left to the Portuguese consul at the port of New York.” 281 Fed. 113.

The answer was verified by Prista, Vice Consul General for the Republic of Portugal at New York.

Exceptions by the libellant to the claimant’s answer were sustained by the district court on the ground that the claimant had entered a general appearance, and, having submitted itself to the jurisdiction of the court, it thereby had waived any right to appear specially at that late day for the purpose of attacking its jurisdiction.

We think the court was right on two grounds: First, because a sovereign may waive its immunity, and it is considered to have done so when it has entered litigation with a general appearance and when, , as here, it has acted for a time and in a manner entirely consistent with such an appearance. Beers v. Arkansas, 20 How. 527, 15 L. Ed. 991; Clark v. Barnard, 108 U. S. 436, 447, 2 Sup. Ct. 878, 883, 27 L. Ed. 780; Richardson v. Fajardo Sugar Co., 241 U. S. 44, 36 Sup. Ct. 476, 60 L. Ed. 879; Porto Rico v. Rosaly, 227 U. S. 270, 33 Sup. Ct 352, 57 L. Ed. 507; Porto Rico v. Ramos, 232 U. S. 627, 34 Sup. Ct. 461, 58 L. Ed. 763; Gunter v. Atlantic Coast Line, 200 U. S. 273, 284, 26 Sup. Ct. 252, 50 L. Ed. 477; The Sao Vicente (C. C. A.) 281 Fed. 111. We know of no more orderly way for a foreign government to consent to suit and submit to jurisdiction than by the voluntary act of entering a general appearance, and when this is followed by conduct permissible only under an appearance of that character, the sovereign must be held to have waived its immunity to suit. It will not suffice for it to change its attitude after the litigation is under way, for, as Mr. Justice Mc-Kenna, in the Ramos Case, supra, said:

“The immunity of sovereignty from suit without its consent cannot be carried so far as to permit it to reverse the action invoked by it and to come in and go out of court at its will, the other party having no right of resistance to either step.”

Second, we think the trial court was right in sustaining the exceptions to the claimant’s answer for the added reason that the suggestion of immunity of the sovereign — itself insufficient in substance— was not made through the proper official channels. It was made in the claimant’s answer signed by its proctor and verified by the Portuguese Vice Consul General at the port of New York. That the public status of a ship cannot, be determined upon the mere suggestion of private [832]*832counsel was decided in Ex parte Muir, 254 U. S. 522, 41 Sup. Ct. 185, 65 L. Ed. 383, and that the Consul General of the Republic of Portugal is not competent, merely by virtue of his office, to appear in court and claim immunity for his government was decided in The Sao Vicente, 260 U. S. 151, 43 Sup. Ct. 15, 67 L. Ed. 179, on certiorari to the Circuit Court of Appeals for the Second Circuit, it being the case to which we have made frequent reference. 281 Fed. 111. Lacking competency by virtue of his office to speak for his government, there is nothing in the record which shows that the Vice Consul General was specially authorized by his government to interpose a claim to immunity on its behalf. Therefore, on the record as it stood after the court had, without error, sustained exceptions to the claimant’s answer by striking out the abortive suggestion of immunity of a sovereign, the claimant remained on the record in the situation in which it had placed itself by its general appearance. Thereupon, the court entered an interlocutory decree and made an order referring the amount of salvage to a special commissioner. Here another substitution of proctors occurred.

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295 F. 829, 1924 U.S. App. LEXIS 3248, 1924 A.M.C. 437, Counsel Stack Legal Research, https://law.counselstack.com/opinion/transportes-maritimos-do-estado-v-t-a-scott-co-ca3-1924.