United States v. The Pietro Campanella

81 F. Supp. 475, 1948 U.S. Dist. LEXIS 1918
CourtDistrict Court, D. Maryland
DecidedDecember 1, 1948
DocketNos. 2498, 2499
StatusPublished
Cited by1 cases

This text of 81 F. Supp. 475 (United States v. The Pietro Campanella) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. The Pietro Campanella, 81 F. Supp. 475, 1948 U.S. Dist. LEXIS 1918 (D. Md. 1948).

Opinion

CHESNUT, District Judge.

In March 1941, 28 Italian merchant ships were lying idle in various ports of the United States. At that time Italy was at war with France and England but not with the United States. About March 23 of that year the masters and crews of many of these ships respectively, acting on orders of the Naval Attache of the Italian Embassy in this country, intentionally injured or destroyed the machinery and motive power of the ships, to immobilize them and prevent them from possibly falling into the hands of the enemy. For these acts the masters and some members of the crews of the respective ships were indicted in the appropriate federal district courts for violation of section 1, Title III of the Act of June 15, 1917, 40 Stat. 217, 221, 18 U.S. C.A. § 502 [now § 2275], Upon the trial of the respective cases the defendants in most of them were convicted and the judgments in some of the cases were affirmed by the Circuit Courts of Appeal. Two of these ships, the Euro and Campanella, were anchored in the Baltimore Harbor. The masters and crews of these two ships were prosecuted in this court and judgments against them were affirmed by the Court of Appeals for this Circuit. Bersio v. United States, and Pieraccini v. United States, 4 Cir., 124 F.2d 310. See also Marchese v. United States, 5th Cir., 126 F.2d 671.1

On July 19, 1941 the United States filed in this court libels for forfeiture of the Euro and Campanella under § 3, Title II of the Act of June 15, 1917, 50 U.S.C.A. § 193 [now 18 U.S.C.A. § 2274], Since then there has been a long judicial history of litigation in this court affecting these two Italian ships. Exceptions to the libels were filed and sustained on formal grounds with leave to amend. Exceptions to the amended libels were overruled. D.G, 44 F.Supp. 348. On September 11, 1941 the United States Maritime Commission requisitioned the ships under the authority of the Act of Congress of June 6, 1941, Public Law 101, 77th Cong. c. 174, 1st. sess., H.B.4466, 50 U.S.C.A. War Appendix § 1271. On October 6, 1941 the United States filed petitions in these cases asking the delivery of the ships in accordance wtih the requisition order. This was opposed by the proctor for the claimants of the ships respectively, two Italian corporations. But the court granted the order for delivery of possession on the condition that the ships should remain in the constructive possession of the court under the designation of a master of the ships as a deputy of the marshal. It was also noted that the Act of Congress under which the requisition was made provided that compensation to the owners or claimants was to be secured by deposit of an adequate fund with the Treasurer of the United States, and subject to payment to persons entitled thereto; and also that satisfactory provision had been made for the determination of just compensation in the event of disagreement. See D.C., 41 F.Supp. 656, 657.

In December 1941 war was declared between the United States and Italy. On July 22, 1942, the Alien Property Custodian made a vesting order (No. 52, 7 F.R. 5738) with respect to the ships or the fund to be substituted therefor under the Act of October 6, 1917 as amended, 50 U.S.GA.Appendix, §§ 5(b) and 7(c), and Executive Order No. 9095 as amended, 50 U.S.C.A. Appendix, § 6 note. Promptly thereafter he filed a petition in these cases praying to be substituted for the claimants or owners of the ships with authority to act as dominus litis, and thus potentially excluding the claimants of the ships from further opportunity to defend against the libels for forfeiture. This petition was again opposed [478]*478by the proctor for the claimants with the result that the Alien Property Custodian was allowed to intervene and made a party to the case “with full right to hereafter receive and hold any interest in the ships which the claimants had at the time of the vesting order”; but not with power to act .as dominas litis to the extent of excluding a defense of the claimants against the alleged forfeiture. A stay of prosecution of the libels for forfeiture was also granted in view of the then existing war and until further consideration of the subject. See D. C., 47 F.Supp. 374.

The progress and determination of the war with Italy is a matter of recent well ■known history. The litigation affecting the ships was not again brought before the court until after the end of the war when, on request of counsel for the United States, there was a trial of the libels for forfeiture. It then developed that during the war the ships, while being operated by the United States, had been sunk by enemy action. The amount of just compensation to be paid to the United States for the ships had never been ascertained and deposited with the Treasurer of the United States. Probably, by reason of the conditions of active warfare, none of the parties to the case had diligently prosecuted administrative remedies with respect to the determination of just compensation for the ships. The claimed forfeiture.of the ships was vigorously defended by the same proctor for the original claimants of the ships. The result of the trial was that this court determined in a lengthy opinion, 73 F.Supp. 18, that under the facts found the ships were not subject to forfeiture under the Act above mentioned relied upon by counsel for the United States. But it was also concluded that the Alien Property Custodian succeeded to the rights in and to the fund which the claimants had at the time of the vesting order of July 22, 1942 subject only to the undecided question whether the proctor for the claimants “have a lien upon the fund for professional services”. , During the hearing an Italian representative of the claimants appeared in court and then stated their position to be that they did not wish to further oppose the claims of the United States, but the authority of this representative was then challenged by the- proctor who had previously been acting for the claimants throughout the- litigation, and the evidence then submitted was not sufficient to determine whether the representative, an Italian citizen temporarily in this country, was authorized to speak for the claimants.

It thus appears from this recital that the only remaining question in the case is whether the proctor mentioned, Mr. Homer L. Loomis, -is entitled to an award for' a proctor’s fee out of the fund which under the legislation above mentioned was to be available in substitution for the ships themselves. But before the consideration of this particular question, it is necessary to mention two other events which have recently occurred affecting the matter.

Congress passed a point resolution, Public Law 370, 80th Cong. c. 49, 1st sess., approved August 5, 1947, entitled “To provide for returns of Italian property in the United States, and for other purposes”. This resolution amended in certain respects § 32 of the Trading with the Enemy Act, 50 U.S.C.A.Appendix, § 32 (not the Volume entitled War-Appendix). It recited art. 79 of the Treaty of Peace with Italy on February 10, 1947, which provided that the United States might retain all property rights and interest within this territory belonging to Italy or Italian Nationals, and apply such property or the proceeds thereof to such purposes as it may desire, within the limits of its claims and those of its Nationals against Italy or Italian Nationals, and that all Italian property or proceeds thereof in excess of the amount of such claims should be returned; and that pursuant to art.

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Bluebook (online)
81 F. Supp. 475, 1948 U.S. Dist. LEXIS 1918, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-the-pietro-campanella-mdd-1948.