United States v. Neptune Line, Inc.

12 F.2d 568, 1926 U.S. App. LEXIS 3299, 1926 A.M.C. 687
CourtCourt of Appeals for the Fourth Circuit
DecidedApril 14, 1926
DocketNo. 2456
StatusPublished
Cited by5 cases

This text of 12 F.2d 568 (United States v. Neptune Line, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Neptune Line, Inc., 12 F.2d 568, 1926 U.S. App. LEXIS 3299, 1926 A.M.C. 687 (4th Cir. 1926).

Opinion

PARKER, Circuit Judge.

This is an appeal in admiralty from a decree against the-United States, as owner of the steamship. Eort Logan, for damages done by that vessel, in a collision with the barge Sea King. A libel in personam was filed against the United States under the “Suits in Admiralty” Act. of March 9, 1920 (Comp. St. Ann. Supp. 1923, §§ 1251%-1251%Z) and the sole question involved is the extent of the liability of the United States under that act.

The Eort Logan was a merchant vessel. [569]*569belonging to the United States. She was chartered by the United States Shipping Board to the States Steamship Corporation on the bare boat basis, and was in the exclusive possession of, and was being operated by, the States Steamship Corporation on May 13, 1920, when she collided with, and did serious damage to, the barge Sea King of the Neptune Line. It is admitted that the Fort Logan was solely at fault in this collision, and that the damages to the Sea King, as a result thereof, amounted to $18,705.31. It is also admitted that, at the time of the collision, the Fort Logan was worth $100,000. The libel herein was not filed, however, until March 7, 1922, almost two years after the collision; and in the meantime the Fort Logan had greatly deteriorated and decreased in value. Shortly after the filing of the libel, she was surrendered to the court and sold by the marshal for $3,150. There is no evidence that she was worth more than this amount at the time the libel was filed. This sum has been distributed in payment of wage claims of seamen, which constituted prior liens on the vessel.

The contention of the libelants is that the effect of the Suits in Admiralty Act is to substitute the liability of the United States for the liability of the ship, and that this liability cannot be limited to less than the value of the ship at the time of the collision. This was the holding of Judge Woods, who heard this phase of the case in the District Court, and, if his holding be correct, libelants are entitled to recover the whole of their claim against the United States, as the vessel was admittedly worth much more than that at the time of the collision. The contention of the government, on the other hand, is that the effect of the Suits in Admiralty Act was, not to substitute the liability of the United States for the liability of the ship, but to substitute a remedy against the United States for a remedy against the ship; that, as the vessel was being operated under a bare boat charter, there was no liability on the part of the United States, as owner, for damage done by her in the collision; that, in the absence of the Suits in Admiralty Act of March 9, 1920, the sole remedy of libelant would have been a libel in rem against the vessel, in which the limit of recovery would have been the value of the vessel at the time of her attachment under the libel; that the only effect of the Suits in Admiralty Act is to permit the recovery, in an in personam proceeding against the United States, of what was formerly recoverable against the vessel; and that, as the vessel was covered with liens for seamen’s wage claims and libelant could not have recovered anything in a libel against it, nothing can be recovered in the in personam proceeding against the government. We think that this contention is correct.

It is perfectly clear that, if the Fort Logan had been privately owned, the limit of the recovery would have been her value at the time of seizure under libel proceedings. The ship of a private owner is liable for damage caused by her in a collision, but the owner who has parted with all control to a charterer under a bare boat charter, is not personally liable. The Barnstable, 181 U. S. 464, 21 S. Ct. 684, 45 L. Ed. 954; Reed v. U. S., 11 Wall. 591, 600, 20 L. Ed. 220; 24 R. C. L. pp. 1109, 1110. If the vessel had been privately owned, therefore, the only remedy of libelant would have been a libel in rem against the vessel, and the limit of the recovery would necessarily have been what could have been realized from the vessel after she had been seized in the libel proceeding. As nothing remained after the payment of the wage claims constituting prior liens on the vessel, it is manifest that nothing could have been recovered in libel proceedings against her, if she had been privately owned.

Formerly, for damages done in collision by the ships of the government, the courts of admiralty of the United States had no jurisdiction to entertain suits in personam against the United States or in rem against the offending vessel. The Western Maid, 257 U. S. 419, 42 S. Ct. 159, 66 L. Ed. 299. The Lake Lida (C. C. A. 4th) 290 F. 198. In 1916, however, an act was passed by Congress providing that vessels purchased, chartered, or leased from the United States Shipping Board, “while employed solely as merchant vessels shall be subject to all laws, regulations and liabilities governing merchant vessels, whether the United States be interested therein, in whole or in part, or hold any mortgage, lien, or other interest therein.” Act of Sept. 7,1916, c. 451, § 9, 39 Stat. 730, re-enacted by Act of July 15, 1918, c. 152, § 3, 40 Stat. 901 (Comp. St. Ann. Supp. 1919, § 8146e). It was held that the effect of this act was to make vessels in which the United States had an interest, wMle employed in the mercantile trade, subject to arrest or seizure for the enforcement of maritime Kens. The Lake Monroe, 250 U. S. 246, 39 S. Ct. 460, 63 L. Ed. 962; Blamberg Bros. v. U. S., 260 U. S. 452, 43 S. Ct. 179, 67 L. Ed. 346. Neither this act as originaHy passed, nor the amendment, imposed any personal KabiKty upon the United States as owner. It merely subjected the vessels, themselves, when em[570]*570ployed as merchant vessels, to the liability of merchant vessels privately owned.

To avoid the embarrassment to which the government found itself subjected by the seizure of its vessels under the Act of Sept. 7, 1916, c. 451 (39 Stat. 727), the Suits in Admiralty Act of March 9, 1920, c. 95 (41 Stat. 525), was passed. Blamberg Bros. v. U. S., supra. This statute forbade the arrest or seizure by judicial process of vessels owned by the United States or by a corporation the stock of which was owned by the United States or its representatives, and provided that a libel in personam might be brought against the United States. Whether the effect of this statute was to impose upon the United States the substantive liability, which under the act of 1916 existed only with respect to the vessel, thereby making the United States liable in eases in which private owners would not be liable, or whether its effect was merely to substitute, as a remedy, a proceeding in personam for' a proceeding in rem, without imposing upon the government a substantive liability beyond that of private owners, is the precise question involved in this ease.

It is not necessary that we decide whether the effect of the Act of March 9, 1920, was also to create a right to recover from the government in cases where, under the maritime law, there is personal liability on the part of private owners, as distinguished from the liability in rem of their ships, as to which there has been some division of opinion among the courts. Compare Bashinsky Cotton Co. v. U. S. (D. C.) 8 F.(2d) 79, and Markle v. U. S. (D. C.) 8 F. (2d) 87, with Atlantic Fruit Co. v. United States (D. C.) 8 F. (2d) 81.

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Cite This Page — Counsel Stack

Bluebook (online)
12 F.2d 568, 1926 U.S. App. LEXIS 3299, 1926 A.M.C. 687, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-neptune-line-inc-ca4-1926.