274 F. 214 | D. Maryland | 1921
The libelant says that the respondents by word of mouth chartered the steamship American to carry coal from New York to Rotterdam, and then repudiated their agreement. After some delay, the ship was rechartered to others at a somewhat lower rate, and the libelant here seeks to recover for the loss caused by the breach.
It was then about 2 or 2:30 in the afternoon of the 25th. The broker immediately reported the closing of the deal to the libelant’s broker, who prepared a formal charter party, and the respondents’ broker took it to their office. After he had read it over, the respondents’ manager admitted that it was what had been agreed to, but he said he could not give a check until his partner came in, meaning apparently one of the respondents. He also indicated that he was annoyed by the check requirements. He called in a business friend, and had the latter read over the charter, and the latter also commented adversely upon the check proviso. As the so-called partner did not come in, the charter was left with the respondent’s manager. The next morning the two brokers together visited the respondents’ office, and at that time respondents’ manager definitely refused to sign the charter or to go on with the transaction.
The version above stated is that of respondents’ broker, or at least the broker who was not acting for the libelant. It was corroborated by the libelant’s broker on all points as to which his knowledge could be expected to go. In a number of respects it is contradicted by respondents’ manager. • If he is accurate, he could have been confirmed in the more vital .particulars by the business friend who, at his request, examined the draft charter, but no explanation of the failure to produce that gentleman has been made. After seeing the witness who did testify, I feel myself unable to accept the respondents’ account of the transaction.
Even so, they say they are not liable because (1) the parties did not intend the bargain to be obligatory until a formal charter party was signed; (2) because the libelant would not have been bound until respondents’ certified check was given, and that therefore there was no mutually binding obligation on either of them; and (3) that at the most it was not a charter, but a mere agreement to make one, over the breach of which admiralty has no jurisdiction.
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