277 F. 438 | D. Maryland | 1922
The Globe Ship Building & Dry Dock Company, hereinafter called the “contractor,” .about the 1st of October, 1921, contracted with the claimant, the Merchants’ & Miners’ Transportation Company, hereinafter called the “owner,” to make certain repairs to the latter’s steamship, the Juniata, for a price of something less than $1,900. Among them was a certain rather small amount of welding, of the value of less than $100. The contract, however, contained a provision that, if additional welding was found to be needed and ordered, it should be paid for in some circumstances at so much an hour, and under other circumstances at so much per square foot. The contractor had no welding plant of its own, and that fact was known to some of the officials of the owner, although not to others. The contractor invited proposals for welding from two concerns, and the libelant, the SOS Welding Corporation, being the lowest bidder, received the order.
In the course of making the repairs, it was found that very much more welding was needed than was at first supposed, and the contractor was directed to do it. It had the work done by the subcontractor, and the subcontractor rendered a bill therefor to the contractor for $2,379.51. There is no question as to the correctness of this bill, and that the contractor owes it.
The contractor operated a large shipyard, recently constructed at a cost of some millions. After the work on the ship was finished, it assigned to the Commercial Credit Company, for cash, its account against the ship and owner, including therein its charge for the welding done by the subcontractor, which charge was naturally appreciably larger than that made by the subcontractor to it. Shortly thereafter, upon an involuntary petition in bankruptcy, the contractor was adjudicated a bankrupt. The subcontractor thereupon gave notice to the owner that it would claim a lien in rem for the amount of its bill against the ship, and filed its libel to enforce such a claim. The
It follows that the libel must be dismissed.