104 F. 918 | W.D.N.Y. | 1900
This is a cause of collision between the steamer Grand Traverse, owned by the Lackawanna Transportation Company, and the steamer Livingstone, owned by the Michigan Navigation Company. Both steamers were found in equal fault, and an interlocutory decree was rendered on January 8, 1899, that the loss and damage accruing to the steamers Livingstone and Grand Traverse, respectively, -be apportioned between them in equal moieties. The Livingstone, 87 Fed. 769. The libel was filed by the Lackawanna Transportation Company, owner of the Grand Traverse, and by the Delaware, Lackawanna & Western Railroad Company as owner of 679 gross tons of nut coal and as bailee in divers other merchandise shipped upon the said propeller Grand Traverse. The Grand Traverse was chartered by the Delaware, Lackawanna & Western Railroad Company for the season of navigation on the Great Lakes for 1896. The libel upon which the suit is based was filed in the joint names of the Lackawanna Transportation Company and Delaware, Lackawanna & Western Railroad Company, and a joint right of recovery is averred therein. The Livingstone was seized under this libel, and was bonded by the Fidelity & Deposit Company of Maryland as surety. The bond runs to the libelants above named jointly and severally in the sum of $75,250, to be paid to the said libelants, their and each of their successors or assigns, and conditioned that, if the claimant of the Livingstone shall well and truly abide and answer the decree of the court in said cause; of libel without fraud or oilier delay, then the obligation to be void. The answer of the Livingstone to the libel denies fault on her part, and avers that the collision was caused wholly on account of the fault, negligence, and improper navigation of the Grand Traverse. The answer also aUeges that the Livingstone suffered damages to the extent of $6,850, which constitutes an enforceable lien against the Grand Traverse, and prays that the libel in the cause may be dismissed, and that such other and further order may be made as will protect the just rights of the respondent. After issue was joined, the Indemnity Mutnal Marine Assurance Company, Limited, of London, England, filed its petition setting forth
It is insisted: First. That the claims for the cargo should be disallowed, because the libel upon which the suit is based was filed in the joint names of the Lackawanna Transportation Company and the Delaware, Lackawanna & Western Railroad Company, and, a joint right of recovery being averred therein, and no new bond having been filed to answer the interveners’ claim, the surety cannot be held liable on the bond in the case, as it simply runs to the joint libelants; that the bond obligates the surety company to answer to any claim which the libelants, to whom the bond was given, may establish in this suit, and does not obligate the surety company to answer to the claim of any other person or company. Second. If the underwriters have a right to intervene in the cause, that then they are entitled to recover only one-half of the value of the cargo. Third. If the respondent the Michigan Navigation Company or its surety is liable on account of the cargo loss, it is entitled to recoup one-half the amount over whatever may be allowed to libelants as owners of the Grand Traverse. I cannot accept the interpretation of the office of a bond or stipulation given in admiralty suits insisted on by the respondent. The bond runs to the Lackawanna Transporta
“I cannot entirely accede to the position which has been laid down in behalf of the claimant that these bonds are mere personal security given to the individual captor, because I think they are given to the court as securities to abide the adjudication of all facts at the time impending before it. The court is not in the habit of considering the effect of bonds precisely in the same limited way as they are viewed by the courts of common law. * * * In this place they are subject to more enlarged considerations. They arei here regarded as pledges or substitutes for the thing itself in all points fairly in the adjudication before the court.”
The cases of The Oregon, 158 U. S. 186, 15 Sup. Ct. 804, 39 L. Ed. 943, and The T. W. Snook (D. C.) 51 Fed. 244, are not at variance with this ruling. In the case first cited it was attempted to enlarge the liability of the stipulators by the inclusion of claims other than the ones which the stipulators agreed to pay. The court said:
“The stipulators may be so well satisfied that the claimant has a defense to the original libel as to be willing to take upon themselves the contingency of*923 a decree requiring its payment, bri Oiey may neither know nor ho able to conjecture what other demands may be made against the property.”
Nor is the case of The T. W. Snook, supra, applicable to the facts of this case. Here the stipulators had notice of the interveners’ claims, and the respondents disputed their right of recovery. After-wards, by stipulation entered into by proctors for all parties, it was agreed that the interveners were insurers upon certain cargo lost upon the propeller Grand Traverse on account of the collision which occurred between the two steamers, and that portions of said lost cargo were the property of certain shippers, whose interests were covered and protected under certain policies of marine insurance underwritten by the intervening companies. The amount of money which the underwriters paid to the owners of the cargo was also stipulated by proctors for respondents and for libelants, and reference was had in said stipulation to marine receipts, bills of lading, and proofs of loss, showing the interest of the interveners. Obviously, the respondents must now he precluded or estopped from asserting that the sureties are not liable to the interveners on the bond. The Delaware, Lackawanna & Western Railroad Company was the owner of a portion of the cargo, and also represented innocent parties. It is well settled (The New York, 175 U. S. 209, 20 Sup. Ct. 75, 44 L. Ed. 135; The Atlas. 93 U. S. 302, 23 L. Ed. 863) that “a plaintiff who has suffered a loss by the negligence of two parties was at liberty, both at common law and in admiralty, to sue both wrongdoers or either one of them, at his election.” And the court in The New York, supra, reaffirming the principle laid down in The Atlas, said:
“It is equally clear that, i£ he [the plaintiff] did not contribute to (he disaster, he is entitled to judgment in either case for the full amount of Ms loss. He may proceed against nil the wrongdoers jointly, or he may sue them all, or any one of them separately. ⅞ * ⅝ Oo-wrongdoers. not partier. to the suit, cannot, be decreed to pay any portion of the damage adjudged to the libelant; nor is it a question in this canse whether the party served may have process to compel the other wrongdoers to appear and respond to the alleged wrongful act.”
In Ibis case the interveners elected to proceed against the Livingstone, and to hold her solely liable for the cargo loss; but it is insisted that the interveners are entitled to recover only one-half the value of the cargo because of the fact that the railroad company was engaged in the navigation of the steamer either as charterer or as owner pro hac vice, and contributed to the disaster, and that, where a collision occurs through the mutual fault of both vessels, the entire'damage resulting therefrom is to he divided between the two vessels. The evidence established that the Grand Traverse was chartered for the entire season of navigation of 189(5 by her owner, the Lackawanna, Transportation Company, to the Delaware, Lackawanna & Western Railroad Company, for the sum of $12,000. The owner was to keep the vessel in condition and pay the insurance on her. In the years 1887 and 1888 the railroad company owned the vessel, but in the following year she was transferred to the Lackawanna Transportation Company, and each season thereafter was chartered by the railroad
"By the act of abandonment the insured renounces and yields up to the underwriters all his right, title, and claim to what may be saved, and leaves it u> him io make the most of it for his own benefit. The underwriter then stands in the place of the insured, and becomes legally entitled to all that can be saved from destruction.”
In The Potomac, 105 U. S. 630, 20 L. Ed. 1194, the court said:
“The insurers of a ship which has been run down and sunk by the fault of another ship are, upon their payment of the total loss, subrogated to the right of the insured to recover therefor against the owners of the latter vessel, and will be entitled to any damages which the insurer might have recovered from such owner.” '
The Chattahoochee, 173 U. S. 549, 19 Sup. Ct. 491, 43 L. Ed. 801, was held liable as one of two wrongdoers for all the damages suffered by cargo innocent of fault.
I am constrained to hold that the interest which passed to the insurer by subrogation is only that of the assured, and that the Delaware, Lackawanna & Western Railroad Company had no such right of recovery as is here pursued by the intervener the Indemnity Mutual Marine Assurance Company, Limited, of London, England. The claim for cargo loss because of the fault of the charterer is of the same class as that of the general owners. The Geo. W. Roby (D. C.) 103 Fed. 336. The recovery from the Livingstone, therefore, by the insurer of the coal cargo, can be only one-half the value of 679 gross tons of nut coal. This principle is not, however, applicable, as we have seen, to the rights of recovery of innocent cargo owners to the full amount of their damages against the Livingstone. The Union Marine Insurance Company. Limited, intervened in behalf of an innocent cargo owner who had not contributed to the disaster. Following the doctrine laid down in The Atlas, The Mew York, and other cases, it is entitled to recover from the Livingstone, against whom it had the right to proceed, the full amount of its cargo damage. It is insisted, however, by proctors for the Livingstone, that, if the Livingstone is liable on account of the cargo loss, or any part thereof, she is entitled to recoup one-half the amount from whatever may be allowed to the libelants, as owners of the Grand Traverse; and the court is referred to The Eleanora, 17 Blatchf. 88, Fed. Cas. No. 4,335; Leonard v. Whitwill, 10 Ben. 649, Fed. Cas. No. 8,261; The C. H. Foster (C. C.) 1 Fed. 733; Insurance Co. v. Alexandre (D. C.) 16 Fed. 279; The Canima (D. C.) 17 Fed. 271; The Hercules (D. C.) 20 Fed. 205; The Job T. Wilson (D. C.) 84 Fed. 204; Jakobsen v. Springer, 31 C. C. A. 315, 87 Fed. 948; and The
The question arises whether recoupment for cargo damages recovered against the Livingstone by the interveners can be had from the amount of damages to be paid to the Grand Traverse by the Livingstone for and on account of the damages sustained to the Grand Traverse by reason of the collision, without filing a cross libel. No affirmative decree is sought against the Grand Traverse or her owners by the respondent:. No case to which my attention has been called has had the question, as applicable to this case, under consideration. After the most careful consideration, I have reached the conclusion that the controversy on this point must yield to the flexibility of procedure in admiralty courts of the United States. "The practice of this court has never been conducted on the strict rules of jiroeedure of the common law. An endeavor always exists to determine the cause submitted to it on equitable prin cipíes, and to do so the court will sometimes disregard mere technical rules and forms, and only look to rules of natural justice.” Davis v. Adams (C. C. A.) 102 Fed. 523; Ben. Adm. (3d Ed.) 190. Whenever the court deems necessary to adjust the equities of the parties, amendments to pleadings are allowed, and relief will be afforded to bring all the parties in court, so that the rights of the parties may be adjusted. I do not think this necessary. The record sufficiently shows that the owner of the Grand Traverse is before the court on all the questions in the case. Although not proceeded against by (he interveners, nor cross libeled by the respondent, her owner is voluntarily on the record as waiving the failure to file cross libel. The Lackawanna Transportation Company, owner of the Grand Traverse, on the 2Gth day of April, 1898, and again on the 4th day of October, 3898, entered into a stipulation of record with all the others concerned as parties in the cause, whereby the interests of the interveners in the cargo of the Grand Traverse at the time of the collision, and the amount paid for insurance, the loss, the subrogation, and the value of the cargo are expressly stipulated. It has certainly assumed a position recognizing the right of the interveners to recover, and waiving any defense which the owner of the Grand Traverse might have or which it might interpose to a cross libel if any were ¿led. It was held that:
“Where a person tacitly encourages an act to be done, he cannot afterwards exercise his legal right of opposition to such consent, if his conduct or act of encouragement induced the other party to change his position, so that he will be pecuniarily prejudiced by the assertion of such adverse claim.” Dodsworth*928 v. Iron Works, 31 U. S. App. 292, 13 C. C. A. 552, 66 Fed. 483; Davis v. Cornwall, 35 U. S. App. 315, 15 C. C. A. 559, 68 Fed. 522.
Manifestly, the owners of the Grand Traverse are estopped from now complaining that no opportunity was afforded to defend against cargo liability, and it seems to me clear that the Livingstone may recoup one-half of the amount of recovery by the Union Marine Insurance Company, Limited, of Liverpool, England.
The findings of the commissioner in respect to the damages sustained by each of the steamers, and his findings allowing the claims of seamen for personal effects alleged to have been lost by reason of the collision, are sustained, with interest at the rate of 6 per centum, as computed by him. The proctors for the Grand Traverse consenting thereto on the argument of this case, the finding of the commissioner making an allowance to the libelants on account of supplies oh the steamer Grand Traverse is disallowed. The interlocutory decree having found both steamers in fault, the Grand Traverse, being a total loss, can recover one-half her value from the Livingstone, less one-half the damages suffered by the Livingstone, as shown by the record in this case. The Indemnity Mutual Marine Assurance Company, Limited, of London, England, insurer of 679 gross tons of nut coal on board the Grand Traverse, of which the Delaware, Lackawanna & Western Railroad Company was the owner at the time of the collision, and to whose rights the insurance company was subrogated, is entitled to recover only one-half its damages from the Livingstone, with interest thereon at the rate of 6 per centum from the time of payment of the insurance to the cargo owners. The Union Marine Insurance Company, Limited, of Liverpool, England, representing innocent cargo owners, is entitled to recover full amount of its damages from the Livingstone, with interest at the rate of 6 per centum from the time of payment of the insurance to the cargo owners, but the Livingstone is entitled to recoup one-half the damages so decreed to be paid to the Union Marine Insurance Company, Limited, and deduct the same from the amount awarded to the owners of the Grand Traverse. The libelant the Lackawanna Transportation 'Company and the respondent or its surety must pay each one-half the costs of this action. Let a decree be entered accordingly.