Navigating the jurisdictional channels of the federal courts’ admiralty jurisdiction sometimes presents a choice between observance of ancient landmarks and heeding the siren call of the commentators to venture out into uncharted waters. The choice is put to us squarely by this appeal in which we are asked to abandon the longstanding rule that suits upon general agency contracts are not within the jurisdiction *799 of the silver oar. The rеquest is made by plaintiff-appellant Peralta Shipping Corp. (“Peralta”) in its appeal from a judgment of the District Court for the Southern District of New York (Vincent L. Broderick, Judge), dismissing for' lack of subject matter jurisdiction Peralta’s complaint against defendant-appellant Smith & Johnson (Shipping) Corp. (“S & J”). Though we find considerable merit in the arguments favoring classification of general agency and sub-agency agreements as “maritime contracts” cognizable in admiralty, we feel bound by controlling precedent of the Supreme Court and this Court to affirm the judgment of the District Court.
Facts
Peralta, a New York corporation, is the general agent in the United States, Mexico, and the Panama Canal Zone for the Bangladesh Shipping Corporation (also known as Bangladesh National Lines) (“Bangladesh”), an operator of several ocean-going cargo vessels. On July 5, 1979, Peralta and S & J, also a New York corporation, executed an agreement entitled “Agency Agreement,” whereby Peralta appointed S & J as “Gulf agents” responsible for arranging services for all Bangladesh vessels calling at ports between Brownsville,' Texas, and Tampa, Florida.
S & J’s principal obligations under the “Agency Agreement” were as follows:
S & J shall act as ships’ husbanding agents for [Bangladesh’s] vessels at the [Gulf] ports and shall perform the services normally incident thereto, including arranging for entranсe and clearance of vessels' at the Custom House, execution of all Custom House documents incidental thereto, arranging for fuel, water, provisions, emergency repairs, port charges and other similar matters, and for stevedoring, storage and other cargo handling; arranging for tugs ...; assisting in the procuring/repatriating necessary ship’s personnel as requested by the Master; hospitalization of officers and other crew members; and shаll issue bills of lading to shippers and passenger tickets to passengers as Agents as required; and shall use its best efforts in soliciting and securing cargoes in developing traffic and passengers for [Bangladesh’s] vessels.
[S & J shall appoint sub-agents] in all ports where S & J does not have its own offices____
S & J will arrange for all services.necessary for the prompt turnaround of vessels, including all matters of a ship husbanding nature, and will have qualified superintendents in attendance as necessary so as to at all times insure adequate supervision and the efficient working of the vessel, the cost of which is to be borne by S & J.
At a deposition Robert Johnson, President of S & J, summarized S & J’s responsibilities more broadly — “to handle [Bangladesh’s] vessels at [the Gulf] ports, to shift cargo, enter and clear the vessels, 1 M supervise the loading of the vessels and account for the disbursements and expenditures and to collect and remit freights.”
Two years later, on September 10, 1981, Peralta commenced the present action. Although not specifically grounding jurisdiction on 28 U.S.C. § 1333 (1982), which grаnts the district courts jurisdiction over suits in admiralty, Peralta alleged the maritime nature of its suit: “This is an admiralty and maritime claim within the meaning of F.R.Civ.P. 9(h).” Peralta claimed that S & J had breached the “Agency Agreement” and sought an accounting and recovery of monies wrongfully retained by S & J — (i) freight collected on Bangladesh vessels in S & J’s agency, and (ii) monies advanced by Peralta to pay Bangladesh’s vessels’ suppliers and vendors but improperly diverted by S & J. In its answer S & J contested admiralty jurisdiction, but the issue, was *800 not presented for a ruling by a motion to dismiss.
Peralta subsequently moved for summary judgment, alleging as undisputed S & J’s debt in the amount of $112,831.27. S & J did not chаllenge the amount of the sum claimed, but maintained that it was entitled to summary judgment on the ground that its sister corporation, Smith & Johnson (Gulf), Inc., a bankrupt Louisiana corporation, had assumed, with Peralta’s consent, sole responsibility for S & J’s obligations -under the Agency Agreement.
Judge Broderick initially granted Peralta’s motion for summary judgment and found S & J liable in the amount of $112,-831.27. The District Judge rejected S & J’s contention that it had been relieved of its contractual obligations. Prior to the entry of final judgment, however, the District Court, on its own motion, questioned its jurisdiction over this action. After the parties briefed the issue, Judge Broderick concluded that the sub-agency contract under which S & J acted as local port agent for Bangladesh’s vessels was not a maritime contract within the Court’s admiralty jurisdiction. He relied upon our opinion in
CTI-Container Leasing Corp. v. Oceanic Operators Corp.,
In support of the District Court’s decision, S & J invokes the authority of venerable precedents establishing the general rule that general agency contracts are not cognizable in admiralty. Peralta invites us to distinguish the cited authorities on the ground that S & J’s contractual obligations went beyond those of a general agency agreement or, in the alternative, to expand the jurisdictional boundaries to incorporate general agency contracts such as the one at issue.
Discussion
As the Supreme Court has recognized, “[t]he boundaries of admiralty jurisdiction over contracts — as opposed to torts or crimes — being conceptual rather than spatial, have always been difficult to draw.”
Kossick v. United Fruit Co.,
In the absence of express guidance, courts and commentators have struggled to determine how to vindicate the purpose underlying the grant of jurisdiction — protecting the national interest in uniform judicial
*801
supervision of the concerns of maritime shipping. With respect to maritime contracts, courts’ and commentators’ competing jurisdictional “definitions” share a common focus — the relationship between the subject matter of the contract and the concerns of the maritime industry. Under Justice Story’s formulation admiralty jurisdiction “extends over all contracts, (wheresoever they may be made or exеcuted, or whatsoever may be the form of the stipulations,) which relate to the navigation, business or commerce of the sea.”
De Lovio v. Boit,
These broad guiding principles have proven difficult to apply. While the resulting conception of maritime jurisdiction “has been one of fairly complete coverage of the primary operational and service concerns of the shipping industry,” some “anomalous exceptions” abound. See Gilmore & Black, The Law of Admiralty, supra, at 22. The lack of a clear line is not surprising. Obviously, not all contracts with any maritime connection warrant invocation of admiralty jurisdiction. Application of the broad verbal formulations cited above requires some limiting recognition “that the actual concerns of the shipping industry may reach as far as the last ranch that sends cattle to port, and, even without stretching the matter at all, maritime transactions are inseparably connected with and shade into the non-maritime,” Gilmore & Black, The Law of Admiralty, supra, at 29.
The need for consistency and predictability in this area of law suggests that special deference be accorded to prior rulings. “Precedent and usage are helpful insofar as they exclude or include certain common types of contract,”
Kossick v. United Fruit Co., supra,
A demarcation of ancient vintage, consistently recognized from the earliest days, is that agreements preliminary to a maritime contract are not cognizable in admiralty. An early defense of this rule has been of enduring influence.
The distinction between preliminary services leading to a maritime contract and such contracts themselves have been affirmed in this country from the first, and not yet departed from. It furnishes a distinction capable of somewhat easy application. If it be broken down, I do not perceive any other dividing line for excluding from the admiralty many other sorts of claims which have a reference, more or less near or remote, to navigation and commerce. If the brokеr of a charter-party be admitted, the insurance *802 broker must follow, — the drayman, the expressman, and all others who perform services having reference to a voyage either in contemplation or executed.
The Thames,
Under this rationale neither an agreement to procure insurance,
F.S. Royster Guano Co. v. W.E. Hedger Co.,
Nor has admiralty jurisdiction extended to general agency contracts that call for “husbanding” a vessel,
i.e.,
arranging for performance of a variety of services preliminary to maritime contracts, such- as soliciting cargo or passengers and procuring supplies, crews, stevedores, and tugboats. The Supreme Court so held in
Minturn v. Maynard,
This Court has faithfully adhered to the
Minturn
holding. ■ Most prominent among our earlier cases are
Cory Brothers & Co. v. United States,
Admiral Oriental Line
involved two agency agreements — (i) an operating contract, under which the United States, owner of the vessel, appointed Atlantic Gulf “ ‘its Agent to Manage, operate and conduct the business of such vessel ... in accordance with the instructions’ ” of the United States and to “ ‘man, equip, victual ■and supply’ ” the vessel, with compensation based on a percentage of gross receipts, and (ii) a sub-agency agreement under which Atlantic Gulf appointed Admiral Oriental Line “ ‘General Freight Agents’ ” for its vessels in the Far East (the line assuming the obligation to appoint sub-agents at ports where it had no offices of its own)— and two lawsuits.
Although these authorities have suffered some erosion in other circuits,
4
neither the Supreme Court
5
nor the courts of this Circuit have departed from their teachings.
See, e.g., P.D. Marchessini & Co. v. Pacific Marine Corp., supra,
Appellant invites us to distinguish these venerable authorities primarily on the ground that S & J’s contractual obligations went beyond those of a traditional general agent and included supervising the performance of maritime contracts procured by it. We decline the invitation. We acknowledge that
Hinkins Steamship Agency v. Freighters, Inc.,
We find greater appeal in Peralta’s suggestion that the entire class of general agency and sub-agency agreements should be brought into admiralty. We agree with the commentators that the jurisdictional boundaries should reflect the concerns underlying the grant of jurisdiction — the federal interest in promoting and protecting the maritime industry — and that “all those cases involving the enforсement, policing or adjustment of business arrangements as a practical matter primarily concerned with sea, lake and river transport,” Black, Admiralty Jurisdiction: Critique and Suggestions, 50 Colum.L.Rev. 259, 274-77 (1950), should be within the admiralty. A general agency relationship is intimately related with the shipping industry and would warrant inclusion within admiralty. See Gilmore & Black, The Law of Admiralty, supra, at 28 n. 94b (criticizing P.D. Marchessini & Co., supra, as “of dubious defensibility. It is predicted that the .Supreme Court, when the issue reaches it, will hold ‘general agency’ and other vessel-management agreements within the jurisdiction — along with аctions for accountings on them.”); 7A J. Moore, Moore’s Federal Practice ¶ .250 at 3006 (2d ed. 1983) (“Quite clearly, such agreements are an integral part of, and in furtherance of, maritime commerce, and consequently, should be cognizable within the admiralty jurisdiction of the district court.”).
The prediction of Professors Gilmore and Black may be correct. However, we are not free to anticipate the Supreme Court’s overruling of
Minturn v. Maynard,
though we would welcome it. Over forty years
ago we
indicated that if the rule precluding general agеncy contracts from admiralty is “to be overruled, only the Supreme Court should do it,”
Admiral Oriental Line v. Atlantic Gulf & Oriental S.S. Co., supra,
Affirmed.
Notes
. Although the record is somewhat unclear, it appears that S & J "hired" itself to act as stevedore for Bangladesh ships at the port of New Orleans. This fact may explain the difference between S & J’s contractual obligations and Johnson’s broаder description of the duties performed by S & J.
. See,
e.g.,
Ship Mortgage Act, 46 U.S.C. § 911
el seq.
(mortgages); Federal Maritime Lien Act, 46 U.S.C. §§ 971-975 (creating maritime lien for services or supplies furnished to a vessel); Death on High Seas Act, 46 U.S.C. § 761
et seq.
(death outside territorial waters);
see generally Detroit Trust Co. v. The Thomas Barium,
. Most prominently, the Judiciary Act of 1789 conferred admiralty jurisdiction on the district courts in most general terms:
Sec. 9. And be it further enacted, that the district courts ... shall alsо have exclusive original cognizance of all civil causes of admiralty and maritime jurisdiction ... saving to suitors, in all cases, the rights of a common law remedy, where the common law is competent to give it____
1 Stat. 76 (1789), Rev.Stat. § 711 (1875). The "savings clause” was amended in 1948 to state “saving to suitors ... any other remedy.” 28 U.S.C. § 1333.
. In
Hadjipateras v. Pacifica, S.A.,
In
Hinkins Steamship Agency v. Freighters, Inc.,
The distinction between “preliminary” and maritime contracts has also become somewhat blurred.
See, e.g., Stanley T. Scott & Co. v. Makah Development Corp.,
. Nothing in
Archawski v. Hanioti,
. The District Judge ruled, the appellate briefs assume, and we are obliged to agreе that lack of subject matter jurisdiction in the District Court requires us to affirm the judgment dismissing the complaint, even though the District Court has fairly determined, after expenditure of a considerable amount of judicial resources, that the defendant is indebted to the plaintiff in the amount of $112,831.27. Rivaling the precepts of admiralty in ancient lineage is the principle that a judgment entered by a court lacking subject matter jurisdiction may not stand. Indeed, that rule commands virtual unаnimity of support. Lack of subject matter jurisdiction has become the jurisprudential equivalent of the plague, requiring instant extirpation whenever noticed, even years after adjudication,
e.g., American Fire & Casualty Co. v. Finn,
This writer, speaking only for himself, wonders whether such unquestioning condemnation of judgments entered by courts without subject matter jurisdiction is always warranted. Of course a cоurt that arrogates power to itself without even a colorable claim of authority to adjudicate a dispute cannot be permitted to decree any enforceable rights. And I can readily *805 agree that all the technical rules of subject matter jurisdiction should be strictly enforced when lack of such jurisdiction is called to the attention of a court at the initial stages of litigation. But when the parties, with actual or constructive knowlеdge of jurisdictional defects, have been content to let a case proceed through determination of the merits of the dispute and no substantial claim can be made that the court’s technical lack of subject matter jurisdiction implicates its competency to adjudicate the dispute or that the forum with acknowledged jurisdiction possesses superior experience or other attributes commending deference tо its authority, I see no catastrophe in. letting the judgment stand. See American Law Institute, Study of the Division of Jurisdiction Between State and Federal Courts § t386 (1969) (advocating modest reform).
The "fundamental” nature of jurisdiction ought to oblige courts to examine its assertion and timely challenge, but it need not require the automatic waste of judicial resources without even inquiry as to the social costs of retrial in the proper forum. It seems anomalous to permit a criminal defendant to waive his fundamental rights to a jury, а lawyer, and even a trial, yet assert that a civil litigant cannot ever waive lack of subject matter jurisdiction, even when he was the party who invoked the court’s jurisdiction,
see American Fire & Casualty Co. v. Finn, supra,
Even if I felt at liberty to deem lack of subject matter jurisdiction waivable, affirmance would remain appropriate in this case, since the answer of S & J seasonably disputed the District Court’s admiralty jurisdiction and thereby preserved its objection.
