CONTINENTAL GRAIN CO. v. BARGE FBL-585 ET AL.
No. 229
Supreme Court of the United States
Argued April 20, 1960. Decided June 27, 1960.
364 U.S. 19
George B. Matthews argued the cause for respondents. With him on the brief were Charles Kohlmeyer, Jr. and Selim B. Lemle.
The single issue presented for decision in this case is whether the United States District Court in New Orleans, acting under
The facts and circumstances on which the District Court transferred this case are these. Barge FBL-585, a respondent here under an ancient admiralty fiction, is owned by Federal Barge Lines, Inc., the other respondent. After the barge was partially loaded by petitioner, Continental Grain Co., with its soybeans at its wharf in Memphis, the barge sank, causing damage both to the barge and to the soybeans. A dispute arose over what caused it to sink. The barge owner, Federal Barge Lines, Inc., brought an action for damages in a Tennessee state court charging that the barge sank because the cargo owner, Continental Grain Co., had been negligent in loading it. The cargo owner later brought this action in the United States District Court in New Orleans against the barge and its owner, in a single complaint, charging that the vessel had sunk because of its defects and unseaworthiness, and claiming damages for injury to the cargo. In the meantime the damage case against the grain company had been removed from the Tennessee state court to the United States District Court at Memphis. While the litigation arising out of this single occurrence was in this posture in the New Orleans and Memphis courts, the barge-owner defendant, at New Orleans, filed a motion and accompanying affidavits under
“For the convenience of parties and witnesses, in the interest of justice, a district court may transfer any civil action to any other district or division where it might have been brought.”
The New Orleans District Court found that the issue in the Memphis case
“that is, the cause of the casualty, is precisely the issue in the case at bar. The convenience of the great majority of witnesses in this case dictates that this case be tried in Memphis. The efficient administration of justice requires that this claim for cargo damage be tried by the same court which is trying the claim for hull damage, both claims being between the same parties, and relate to the same incident.”
These findings were well supported by evidence, were approved by the Court of Appeals, are not challenged here, and we accept them. The case, therefore, if tried in New Orleans, will bring about exactly the kind of mischievous consequences against “the interest of justice” that
The grain company argues that this frustration of the basic purpose of Congress in passing
The fiction relied upon has not been without its critics even in the field it was designed to serve. It has been referred to as “archaic,” “an animistic survival from remote times,” “irrational” and “atavistic.”2 Perhaps this is going too far since the fiction is one that certainly had real cause for its existence in its context and in the day and generation in which it was created. A purpose of the fiction, among others, has been to allow actions against ships where a person owning the ship could not be reached, and it can be very useful for this purpose still. We are asked here, however, to transplant this ancient salt-water admiralty fiction into the dry-land context of forum non conveniens, where its usefulness and possibilities for good are questionable at best. In fact, the fiction appears to have no relevance whatever in a District Court‘s determination of where a case can most conveniently be tried. A fiction born to provide convenient forums should not be transferred into a weapon to defeat that very purpose.
This Court has not hesitated in the past to refuse to apply this same admiralty fiction in a way that would cut
“To say that an owner is not liable, but that his vessel is liable, seems to us like talking in riddles. A man‘s liability for a demand against him is measured by the amount of the property that may be taken from him to satisfy that demand. In the matter of liability, a man and his property cannot be separated. . . .” The City of Norwich, 118 U. S. 468, 503.
Fifty-seven years later this Court was confronted with a similar argument about another section of the same statute, and after referring to the analysis in City of Norwich concluded,
“The riddle after more than half a century repeated to us in different context does not appear to us to have improved with age. . . . Congress has said that the owner shall not ‘answer for’ this loss in question. Claimant says this means in effect that he shall answer only with his ship. But the owner would never answer for a loss except with his property, since execution against the body was not at any time in legislative contemplation. There could be no practical exoneration of the owner that did not at the same time exempt his property.” Consumers Import Co. v. Kabushiki Kaisha Kawasaki Zosenjo, 320 U. S. 249, 253-254.
We follow the common-sense approach of these two cases in interpreting
“Admiralty practice, which has served as the origin of much of our modern federal procedure, should not be tied to the mast of legal technicalities it has been the forerunner in eliminating from other federal practices.” British Transport Comm‘n v. United States, 354 U. S. 129, 139.
It is relevant that the law of admiralty itself is unconcerned about the technical distinctions between in rem and in personam actions for purposes of transferring admiralty actions from one court to a more convenient forum. This Court‘s Admiralty Rule 54, which prescribes the procedures for owners’ limiting their liability after vessels have been libeled, provides in language broader than
The idea behind
For the reasons stated here the judgment is
Affirmed.
MR. JUSTICE FRANKFURTER, whom MR. JUSTICE HARLAN joins.
Although this case also involves some nice questions of admiralty procedure, since the claimant barge owner has moved for transfer and has agreed to “pay any final decree which may be rendered against” the barge, the controlling considerations for me are those set forth in my opinion in Sullivan v. Behimer, 363 U. S. 351. Accordingly, I would affirm the judgment.
MR. JUSTICE WHITTAKER, with whom MR. JUSTICE DOUGLAS joins, dissenting.
I think that this case, if its true facts be recognized and faced, is controlled by the Court‘s opinion in Hoffman v. Blaski and Sullivan v. Behimer, 363 U. S. 335. I also think that the Court‘s opinion fails to recognize and face the crucial fact — that one of the two claims in this “civil action” was brought in rem against the Barge, not as an attachment or “device” to force appearance of the owner or to provide security for the payment of any in personam judgment which might be recovered against the owner, but as a personified “debtor or offending thing” as the settled law author-
On July 2, 1958, petitioner, Continental Grain Company,7 brought this libel in personam against Federal Barge Lines, Inc.,8 and in rem against Barge FBL-585 (“Barge“), in and on the admiralty side of the United States District Court for the Eastern District of Louisiana, New Orleans Division — where the Barge then was, and ever since has been, located — to recover damages in the sum of $90,000 to petitioner‘s cargo, caused by the alleged unseaworthiness and consequent partial sinking of the Barge while being loaded at Memphis, Tennessee, on November 6, 1957. The libel prayed a decree against both Federal Barge Lines, Inc., and Barge FBL-585, for the cargo damage; that Federal Barge Lines, Inc., be cited to appear and answer; that process issue against “Barge FBL-585 and that all persons claiming any interest in said vessel be cited to appear and answer this libel,” and that “Barge FBL-585 be condemned and sold to pay the amount due libelant herein.”
After Federal Barge Lines, Inc., was served with process, and after process had issued against the Barge but before actual arrest of the Barge thereunder, Federal Barge
“It is the intent of this undertaking that the rights of the libelant and claimant-respondent in this proceeding shall be, and for all purposes shall be taken to be, precisely the same as they would have been had the vessel, in fact, been taken into custody by the United States Marshal under said in rem process, and released by the filing of claim and release bond, we, as claimant, reserving in behalf of the vessel all other objections and defenses otherwise available except those which might be predicated upon the fact that the vessel was not actually so seized.”
Accordingly, on July 29, 1958, Federal Barge Lines, Inc., filed its claim to “Barge FBL-585, proceeded against herein, and claim[ed] the said barge as owner and pray[ed] that it be permitted to defend according to law“; and on September 18, 1958, it filed its answer to the libel.
On October 13, 1958, Federal Barge Lines, Inc., filed its motion to transfer “this action to the United States District Court for the Western District of Tennessee, Western Division, on the ground that such transfer is
Petitioner then sought and was allowed an appeal by the Court of Appeals under
Although the Court of Appeals found “that fair application of the letter undertaking . . . requires that we treat it as though, upon the libel being filed, the vessel had actually been seized, a Claim filed, a stipulation to abide decree with sureties executed and filed by Claimant, and the vessel formally released,” it held that, inasmuch as the claimant-respondent had by its motion to transfer consented “to an unlimited submission of the cause [to the Tennessee District Court] even though it could not have been filed there initially,” transfer of the in rem action to that court “presents no real or conceptual difficulties,” because “[t]he Court does not undertake to transfer the res, nor does it even attempt to transfer the cause while the res is still in custody of the Court“; that when, as here, a “bond (stipulation)” is given and substituted for the vessel “[t]raditional notions are not affected if that security floats with the cause wherever the law navigates it.” Id., at 243, 244.
It is not disputed that the libel, insofar as it is in personam, might have been brought by petitioner against respondent, Federal Barge Lines, Inc., in the United States District Court for the Western District of Tennessee, as that court had jurisdiction to entertain such an action and Federal Barge Lines, Inc., was amenable to the service of monition there. Hence, if this libel had been brought only in personam against Federal Barge Lines, Inc. — i. e., had omitted the claim in rem against the Barge — it could have been transferred to the Tennessee District, for such an action could have been brought in that forum. But, as the parties agree, petitioner had a legal right to join in one action, as it did here, a claim in personam against Federal Barge Lines, Inc., and one
The Court treats this case as a “single” damage action against only the barge owner. That treatment simply ignores the crucial fact which gives rise to the question we have here. Of course, if this were simply a “single” action for damages against only the barge owner we would not have the question that confronts us, for we all agree that such an action “might have been brought” in the Memphis forum, and, hence, if brought elsewhere it could have been transferred to that forum under
Petitioner, relying on the established principle that an action in rem may be brought only in the district where the res is located,13 or possibly, under the accustomed practice in admiralty, in the district where, as alleged in the libel, the res (vessel) will be “during the pendency of the process [issued on the libel],”14 contends that inasmuch as the Barge was located in the Eastern District of Louisiana when the libel was filed, this action could not have been brought or prosecuted in any other district and, hence, the court was without power, under
Respondents next contend that even if
But admiralty proceedings in rem are not a mere security device. From its earliest history to the present time,
“Actions in personam with a concurrent attachment to afford security for the payment of a personal judgment are in a different category. The Belfast, supra; Taylor v. Carryl, 20 How. 583, 598, 599; The Robert W. Parsons, supra. And this is so not only in the case of an attachment against the property of the defendant generally, but also where it runs specifically against the vessel under a state statute providing for a lien, if it be found that the attachment was auxiliary to the remedy in personam. Leon v. Galceran, 11 Wall. 185; see also Johnson v. Chicago &c. Elevator Co., 119 U. S. 388, 398, 399; Knapp, Stout & Co. v. McCaffrey, 177 U. S. 638, 646, 648.” Id., at 307.
The cases cited by the Court,24 holding that in expressly exonerating by statute shipowners from certain liabilities for casualty losses of cargo at sea, Congress similarly intended to exonerate their property, i. e., their ships, from such liabilities, are wholly inapposite. They involved only interpretation of particular statutes, and did not at all deal with, and certainly were not intended to destroy, for they expressly recognized, the historic differ-
The Barge itself being the “offending thing,” and here being itself subject to suit, and having been sued, in rem, we think it may not be said that the giving by respondent, Federal Barge Lines, Inc., and the acceptance by petitioner, of the “letter undertaking,” to prevent the physical arrest of the Barge, converted the in rem action into one in personam. That letter expressly said that the rights of the parties would for all purposes be “precisely the same as they would have been had the vessel, in fact, been taken into custody by the United States Marshal under said in rem process, and released by the filing of claim and release bond . . . .” That this letter was legally effective in accordance with its terms is not disputed. This Court has from an early day consistently held that a bond, given to prevent the arrest or to procure the release of a vessel, is substituted for and stands as the vessel in the custody of the court.25 Inasmuch as
Respondents finally argue that even though the Barge itself could be and was sued as the “offending thing” and, being located in the district of suit, this action in rem against it could not have been brought elsewhere without respondent‘s consent, it was as possible for the Barge voluntarily to enter appearance in and submit to the venue and jurisdiction of the transferee court as it would have been for one sued in personam to do so,26 and that their motion to transfer had that effect. Whether jurisdiction over a res in an action in rem may be conferred by consent of its owner, given either before or after the action has been brought, upon a court that does not have territorial jurisdiction or custody of the res we need not decide, for the question here is not such, but, rather, it is simply whether a District Court is empowered by
