28 F. Cas. 1260 | D. Mass. | 1834
This is the case of a libel in rem for freight earned under a charter-party, brought by the general owner of the schooner Volunteer against the homeward cargo, (the proceeds being substituted for it by consent of parties.) which the claimants assert a title to under an assignment of the charterers, who became insolvent in the course of the voyage.
Three questions have been made at the bar. First, whether the district court possesses jurisdiction, as a court of admiralty and maritime jurisdiction, over the cause. Secondly, who, upon the true interpretation of the terms of the charter-party, was the owner for the voyage. Thirdly, whether, upon the terms of the instrument, there is any lien on the homeward cargo for freight, supposing the ownership for the voyage to be in the libellant.
It is now approaching nearly to twenty years, since I had occasion to consider with laborious care and attention the nature and extent of the jurisdiction of the admiralty over maritime con
In regard to the jurisdiction asserted by the admiralty over charter-parties, it can be traced back to theveryeariiestrecords of the court We find from the records contained in the Black Book of the Admiralty, (a work of high antiquity and undoubted authority,) that as early as the - second year of the reign of Edward the First, that monarch with the assent of his lords, (ses seigneurs,) by an ordinance made at Hastings, expressly prohibited all seneschals and bailiffs of the lords of franchises on the seacoasts from taking cognizance of any pleas touching merchant or mariner, as well by deed as by charter of ships, obligations, and other deeds beyond twenty shillings or forty shillings in amount, upon penalty of prosecution therefor in the admiralty. And it was declared by the same ordinance, that every contract made between merchant and merchant, or merchant and mariner, beyond seas or within the flood-mark, should be tried before the admiral, and not elsewhere. Clerke’s Praxis, Roughton, pp. 143, 144, art. 28, cc. 20, 21; Id. p. 120, art. 17; Id. p. 130, art. 26; Prynne’s Animad, pp. 111, 114-116; Id. pp. 83, 88, 90, 103, 123; De Lovio v. Boit [Case No. 3,776]. This ordinance was fully recognized and enforced by penal sanctions in the reign of Edward the Third. Id. The early commissions to the admiralty were conceived in terms so general and broad, as to include an ample jurisdiction in all maritime contracts. See Prynne’s Animad, pp. 85, 118-122; De Lovio v. Boit [supra]. After the passage of the statutes of 13 Richard II. c. 5, and 15 Richard XL c. 3, whose prohibitions can by no just construction be applied to charter-parties made in foreign ports for foreign voyages, even if they can be applied (which I do not admit) to charter-parties made within the realm, for voyages on and over the high seas, or beyond seas, the commissions of the admiralty contained a proviso, that the admiralty should not
In the next place, as to the doctrine of the courts of common law. It is true, that the I jurisdiction asserted by the court of admiralty over charter-parties and maritime contracts, was not, after the statutes of Richard H., admitted by the courts of common law to be well founded. But it is equally true, that it was not uniformly denied by those courts.. On the contrary, there are to be found various cases, where the jurisdiction has been disectly or indirectly affirmed. See De Lovio v. Boit [supra]; Exton, Mar. Dic. pt. 3. p. 338, c. 7; Id. p. 352, c. 8; Id. p. 360, c. 9. The struggle, indeed, by the admiralty to maintain its ancient jurisdiction was constantly renewed, as often as the courts of common law sought to restrain it. This struggle was, about the middle of the reign of Queen Elizabeth, (in May, 1575,) brought to an issue by a complaint of the court of admiralty to the queen; and thereupon the judges of the king’s bench, and the judge of the court of admiralty, came to an agreement on the subject, which is given at large by Prynne, and Zouch, and Lord Coke. 4 Inst. p. 134; Zouch, Adm. p. 14; Prynne’s Animad, p. 98; [U. S. v. Bevans] 3 Wheat. [16 U. S.] 365, 367, note. One of the articles of agreement is as follows: “It is agreed, that the said judge (of the admiralty) may have and enjoy knowledge and breach of charter-parties made between masters of ships and merchants, for voyages to be made to the ports beyond the seas, and to be performed beyond and upon the seas, according as it hath been accustomed, time out of mind, and according to the good meaning of the statute of 32 Hen. VIII. c. 14, though the same charter-parties happen to be made within the realm.” This agreement remained in full force and operation until Lord Coke became , chief justice of the court of common pleas, in the sixth year of the reign of James the First, when he granted a prohibition in a case of this sort. The subject was then brought before the king; and we have now the answer of Lord Coke and his
The controversy was from that time renewed with unabated vigor on each side, and continued until the reign of- Charles the First, when the subject was again brought before the king in council, upon the complaint of the admiralty; and the matters in difference between the admiralty and the courts of common law were several times heard and debated at large. At length, in February, 1632, certain articles were drawn up, read, agreed to, and resolved upon, by the king and council, and signed and assented to by the twelve judges of England, and the then attorney general, and entered upon the registry of the council. Prynne’s Animad, pp. 100, 101; Godol. Adm. p. 157; Exton, Mar. Dic. p. 403; Zouch, Adm. pp. 122, 123; 2 Browne, Civ. & Adm. Law, p. 78; Hall, Adm. Intro. Jur. 24, D. To these articles of agreement Lord Coke’s objection cannot apply, that they were never signed or assented to by the judges. The first of these articles is in these words; “If a suit should be commenced in the admiralty upon contracts made, or other things personal done, beyond' the seas, or upon the sea, no prohibition is to be awarded.” The ■ second is: “If suit be before the admiral for freight, or mariners’ wages, or for breach of-charter-parties, for voyages to be made beyond the seas, though the charter-party happens to be made within the realm, so as the penalty be not demanded, a prohibition is not to be granted. But if the suit be for the penalty;' or if the question be whether the charter-party were made or not; or whether the plaintiff did release, or otherwise discharge the same within the realm; this is to be tried in the king’s court at Westminster, and not ■in his court of admiralty.” The restrictions here insisted on, are of matters exclusively arising on land within the realm, and in no wise facts arising on the sea, or beyond seas.
It is difficult to conceive, how any case of jurisdiction could be more firmly and deliberately settled, than on such an occasion. The very circumstance, that it contained the opinions, and had the judicial assent of the judges of the realm, as well as of the king and his council, (an uncommon number being assembled for the purpose,) gives to it as great a sanction of authority in point of law, as any, which can be imagined. If the opinions of Lord Coke and his brethren at a former period are to be held of any authority, as evidence of the law; how much more weight ought to be attributed to such a solemn re-examination of the whole subject under such circumstances? I profess myself wholly unable to comprehend any grounds, upon which the conclusiveness of such an adjudication can be gainsaid or overturned. Sir Leoline Jenkins has remarked, that this act of council was the result of many solemn debates; and not the effect of artifice and surprise; that it was enrolled in the several courts of Westminster, as the resolutions of all the judges, and as a standing rule to be observed for the future; and that it was punctually observed, as to the granting and denying of prohibitions, until the late disorderly times, (the times of the commonwealth,) bore it down, as an act of prerogative, prejudicial (as was pretended) to the common laws, and the liberty of the subject. And he then adds, that it was not long before the usurping powers found it necessary, for the encouragement of trade and navigation, to make several ordinances confirming the jurisdiction. 1 Sir Leo. Jenkins’s Works, Argument on Adm. Jur., 6 Hall, Law J. p. 568.
The learned judge is well warranted in these statements. There is a case of a libel for freight reported by Piynne, in which he was counsel, and which was finally decided by the house of lords upon appeal in 1645, in which the jurisdiction of the admiralty to maintain such a suit, was expressly affirmed, and a pro-cedendo was awarded to the court of delegates, (in which the suit was then pending,) to proceed-and decide the cause; and they accordingly did decide it in favor of the libellant, and he had execution for his debt and costs accordingly. Prynne’s Animad, pp. 123, 124. (Mr. Prynne has given a copy of the judgment of the house of lords.) Here, then, we have the highest judicial authority of the realm asserting the same jurisdiction, which had been asserted by the twelve judges in 1632. In Scobell’s Collection of Ordinances during the Commonwealth, we also find the act or ordinance, passed by parliament during the time of the commonwealth, on the subject of the jurisdiction of the admiralty. It was first passed in 1648, and was by subsequent ordinances made perpetual. But, though it was carried into full effect during the protectorate, yet upon the restoration of Charles the Second it was treated, like all the other ordinances of parliament during the commonwealth, as an act of usurpation, and therefore it then in a legislative sense expired. The ordinance expressly declares, among other things, that the court of admiralty shall have cognizance and jurisdiction “in all cases of charter-parties, or contracts of freight, bills of lading,” &c. See Hall, Adm. Jur. 24, E.
The next question is, who is to be deemed owner for the voyage under the terms of this charter-party? The instrument begins in the common form; and after naming the parties, it proceeds to state, that it is witnessed, “that the said.Weston, (the libellant.) for the consideration thereinafter mentioned, has letten fo freight the whole of the said schooner with appurte
Such is the substance of the charter-party. And upon the construction of the terms of it, I cannot entertain a doubt, that Weston, (the libellant,) remained the owner for the voyage. The vessel was equipped, and manned, and victualled by him; and at his expense during the voyage; and he covenanted to take on board such goods in the voyage, as the' charterers should think proper. The whole arrangements on his part in these respects sound merely in covenant. It is true, that in another part of the instrument it is said, that he has letten to freight, (which may seem to import a present demise or grant, and not a mere covenant,) the whole schooner for the voyage. But this language is qualified by what succeeds. And the whole schooner is not let; for there is an \ express exception of the cabin and certain portions of other room under deck. If the whole schooner, then, was not granted during the voyage on freight, how is it possible to contend, that the libellant did not still remain owner for the voyage? The master was his master, appointed by him, and responsible to him; the crew were hired and paid by him; and the victualling and manning were at his I expense. He also retained the exclusive pos- i session of a part of the vessel for the voyage, and the control and navigation of her during the voyage. Taking, then, the whole instrument together, it seems wholly inconsistent with the manifest intent of the parties, that the charterer should be the owner for the voyage. It appears to me, that this case is governed in all its circumstances by decisions, which have been made by the supreme court of the United States. In Hooe v. Groverman, 1 Cranch [5 U. S.] 24, under circumstances far less cogent and expressive, the supreme court held the general owner to be owner for the voyage, although in that ease the whole tonnage of the vessel was let for the voyage. The case of Mascardier v. Chesapeake Ins. Co., 8 Cranch [12 U. S.] 39, is almost identical with the pres-I ent in its leading circumstances. And the court there laid down the broad distinction in the following terms: “A person may be owner for the voyage, who by contract with the general owner hires the ship for the voyage, and has the exclusive possession, command, and navigation of the ship. But where the general owner retains the possession,, command, and navigation of the ship, and contracts to carry a cargo on freight for the voyage, the charter-party is considered as a mere affreightment, sounding in covenant; and the freighter is not clothed with the character or legal responsibility of ownership.” Tided by this test, there cannot be a doubt, that the libellant remained the owner for the voyage. See also Gracie v. Palmer, 8 Wheat. [21 U. S.] 605, and Colvin v. Newberry, 1 Clark & F. 283. I am aware, that there are in the English cases some very nice distinctions, and perhaps some decisions not very easily reconcilable with each other. But it appears to me, that the current of authority in the courts of Westminster HaE ranges itself on the same side with the decisions of the supreme court, and with the decisions of the American state courts on the same subject. I do not go over the cases. Many of them will be found collected in Abbott on Shipping, and in the notes to the American edition of 1829 (pages 19-22, 173-178); in-Holt’s Law of Shipping (part 2, pp. 195, 196, § 15); and in the learned Commentaries of Mr. Chancellor Kent (3 Kent, Comm. 2d Ed. p. 137, lect. 45). See, also, Pickman v. Woods, 6 Pick. 251; Clarkson v. Edes, 4 Cow. 478; Christie v. Lewis, 2 Brod. & B. 416; The Master, &c., of Trinity-House v. Clark, 4 Maule & S. 288; Colvin v. Newberry, 8 Barn. & C. 166; s. c. on appeal, 1 Clark & F. 283. Some stress was laid, in the argument at the bar, on the fact, that the master received his letter of instruction from the charterers; and .that the libel-lant gave him a copy of the charter-party only, and verbal orders to proceed accordingly. But I cannot perceive, how these circumstances vary, in the slightest manner, the legal predicament of the case. They are perfectly consistent with the EbeHant’s remaining owner, for the voyage.
The third and far the most difficult question is, whether there was a lien on the home
The question, then, in the first place is, whether the present charter-party contains any stipulation incompatible with the notion of a lien; for otherwise it will clearly attach. The only clause bearing upon this point is that which provides for the payment of the freight "within ten days after her (the schooner’s) return to Boston, or. in case of loss, to the time she was last heard of.” This latter provision of this clause establishes' the fact, that the payment of the freight was not in every event to be contingent on, or subsequent to, the delivery of the cargo; and the other clause by no means carries with it any implication, that the delivery of the cargo- shall precede the payment of freight. By our laws the term of rtf teen days from the arrival and report of the ship at the custom-house is allowed for the entry and discharge of the cargo; and In some cases twenty days is allowed. See duty collection act of 1799, c. 128, §§ 36, 56 [1 Story's Laws, 606, 622; 1 Stat. 665. 669]; Act 3d March, 1821, c. 180 [3 Story’s Laws, 1819; 3 Stat. 640], So that an unlivery may be rightfully postponed beyond the ten days after the return of the ship, when by the terms of the charter-party the freight would become due. It is quite remarkable, that the charter-party does not contain any stipulation for the delivery of the homeward cargo, or prescribe any time for its delivery. So that the parties are left afloat, as to this point; and their rights are to be disposed of by the general principles of law.. The question, then, is, whether the claimants could by law insist upon a positive delivery within the ten days after the return of the schooner. I know of no principle of law, upon which that can be generally affirmed. The delivery must be within a reasonable time. But can that be deemed an unreasonable delay, which falls short of the time allowed by the statute law of the country for an unlivery of the cargo? Besides; on what ground can the court say, that the libellant, if the goods were unlivered, might not insist upon retaining them until the ten days were passed, or payment, or security for payment, of the freight was given? The parties have not stipulated for a delivery of the cargo within the ten days, or for any delivery at all without payment of freight. And in a case of mutual silence on each side on the point, there seems no ground for a court to say) that a detention for the freight under such circumstances would be inequitable or unreasonable. Lord Tenterden in his excellent work on Shipping (part 3, p. 177. c. 1. § 7) has deduced from the eases this general result; that the right of lien for freight does not absolutely depend on any covenant to pay freight on delivery of the cargo. But it may exist, if it appears, that the payment is to be made in cash or bills before or at the delivery of the cargo; or even if it does not appear, that the delivery of the cargo is to precede such payment. Now, in the present case, the latter is the very predicament, in which the charter-party leaves this matter. But the ease does not rest merely upon this negative inference. There is an express clause in the charter-party, (as we have seen.) by which the parties bind themselves, the libel-lant his ship, and the shippers their cargo, to the faithful performance of all and singular the covenants, agreements, and payments of the charter-party. This is a common clause in charter-parties. It is borrowed from the general maritime law, by which the ship is bound to the merchandise, and the merchandise to the ship. Abb. Shipp, pt. 2. p. 93, c. 2, § 3; Id. pt. 3, p. 169, c. 1, § 6 (b); Id. p. 170, § 7; Cleirac, Us et Cout. de la Mer, p. 72. Cleirae lays it down in express terms; and it is specially declared in the ordinance of Louis the Fourteenth in 1681, which Valin treats on this point, as an affirmance of the general maritime law. Id.; 1 Valin, Comm. liv. 3, tit. 1; Des Charte-Parties. p. 629, art. 11. Lord Tenterden in commenting on this clause, after remarking, that this principle of the maritime law cannot be carried into effect against the ship in England.' from a supposed defect of the admiralty jurisdiction, at the same time adds, that the owners may be made responsible by a special action on the ease at the common law, or by a suit in equity. He does not, however, treat this clause as senseless, if it were capable of a specific execution. Abb. Shipp, pt. 2, pp. 93, 94, c. 2, § 5. In another place, commenting on the same clause, he states, as the result of the authorities, (which I shall immediately consider,) that the part of it binding the cargo is inoperative; and that the lien for freight is not derived from it; but is derived from some general principle of law, or some special contract. Certainly the lien is derived from some general principle of law, or some special contract. Id. pt.
But let us now see, what are the authorities, upon which a different doctrine is maintained. The first case is Paul v. Birch. 2 Atk. 621, where the charterers liad bound the goods to be put on board for the payment of the hire or freight; and afterwards became bankrupts. Lord Hardwicke gave full effect to the clause, as against the assignees of the bankrupts. But an attempt was made to charge the goods of third persons, who were shippers under the charterers, with the full amount of the hire or freight. This last claim was resisted: and Lord Hardwicke held these latter goods liable only to the extent of the freight payable to ¡ the charterers by the shippers. And this is ! in perfect coincidence with what is now the established law. See Christie v. Lewis. 2 Brod. & B. 410: Small v. Moates. 9 Bing. 574: Faith v. East India Co.. 4 Barn. & Ald. 638. So that this case, as far as it goes, does in fact support, instead of impugning the doctrine. The other case is Birley v. Gladstone, 3 Maule & S. 203, where certainly a question did arise upon the meaning and effect of the stipulation now under consideration. The question there was, whether the owner of the ship was entitled to detain the cargo, not for freight generally, but for dead freight, that is, for the freight of goods not laden. The court held, ¡ | ¡ ! that he was not. Lord Ellenborough on that occasion said. “The clause is not familiar to us in England, but has been imported from Pothier.’’ (In this his lordship is certainly mistaken, for it had an existence centuries before.) ‘•It is, like the charter-party, I believe, of French origin: and I know not, whether there may not be some immediate proceeding upon it in that country.” Beyond question there is such a remedy in France. But charter-parties did not originate in the French law. They were known in other countries at as early, if not at an earlier period. He afterwards proceeded to say: “I do not say, that a court of equity might not afford a remedy to the party under the clause, though there does not seem to be any instance of its being done. But at law. what lien is there under it? &e. It is absurd to imagine, that this clause, which cannot be mutually obligatory, was intended to give a lien on one side, without the like remedy on the other. &c. There has been no remedy afforded under it in a court of law, and still less by means of actual lien. &c. This is not freight earned within the terms of the charter-party. It falls under the general covenants, either for damage, or for providing a full cargo. But the party cannot have .this suppletory remedy by way of lien. It would be going too far to hold, that this clause gave him a lien for the non-performance . of covenants.” The other judges concurred with Lord Ellenborough; but their opinions proceeded on the same grounds as his, and throw no additional light on the subject. The effect, then, of this decision is, that the clause is wholly nugatory and inoperative; that it is vox, et pnurera nihil. The course of reasoning, by which it is sustained, amounts to this, that because by the law of England an active remedy by a proceeding in rem is not provided for in all cases under the clause, therefore no passive remedy by way of lien at law can exist for either party; and that though the language of the parties, binding the property, is clear, they cannot intend it, because there cannot be a mutual remedy, and it would be inconvenient for them to'have their property bound for the performance of covenants generally, sounding in damages. I confess, that I cannot understand the. ground, upon which such reasoning is to be supported. Where words are sensible in the place, in which they occur in an agree- ¡ ment, they are to be presumed to be used to ex- | press the intention of the parties, and to constitute a part of their agreement. They are not to be declared a nullity, because in the opinion of the court they may lead to inconvenient consequences. which the parties, if they had foreseen. would have guarded against. Courts are to construe instruments, and not make them for the parties. Besides; there is nothing irrational, or in a large sense inconvenient in parties binding their property for the fulfillment of their covenants sounding in damages. If the parties here had respectively said, that the ship and the cargo should stand mortgaged as security for the due fulfillment of the covenants on each side; or that each should have a lien therefor; it
The case of Birley v. Gladstone was after-wards brought into cliancery. in order to ascertain whether there was a lien in equity under the clause. It is reported in 2 Mer. 401. Sir William Grant denied any relief, upon the ground, that a court of law had already decided, that the clause created no lien; and that the same construction must prevail in equity as at law, since the lien, if any, was of a legal and not of an equitable nature. On that occasion the learned judge said; “A court of competent jurisdiction has decided, that neither law nor contract has in this ease given any such right. And, without directly contradicting that decision, it is impossible for me to say, that the plaintiffs have a right, &c. It was asked, what effect the clause could have, if it gave no lien, either in law or in equity? A court of equity is not bound to find an equitable effect for a clause, merely because the construction a court of law has put upon it would leave it inoperative. In truth, it has been copied from foreign charter-parties with very little consideration of the effect, that might be allowed to it by the law of this country. I think it very probable, that in other countries it would have the effect of entitling the ship-owner to retain the cargo for every sort of demand, that would accrue to him under the charter-party. If that be not the effect of it, I do not see what other effect it can have. But as I am bound by the construction which it has received from a court of law, and conceiving that this is not a case in which equity can give a lien, that does not legally exist, I must dismiss the plaintiffs’ bill.” Now, in this language of the learned judge, (and a truly great judge he was.) I most heartily concur. I put upon the instrument the very construction, which he gives it; and if that be the correct construction, and be the agreement of the parties, where is the principle of the 'common law. which prohibits giving effect to ft. at least by way of a lien or right of detention for the freight? I know of no such principle. And the learned judge was right in making the suggestion, that the court of king’s bench did not deny, that such a lien might by the law of England be contracted for. If then the terms of the contract are plain; if they have in the maritime law a clear and determinate meaning; it seems to me, that it is the duty of the court to give effect to that meaning, and to save to the parties the very rights and remedies, which they intended, and the maritime law would give them, at least as far as those remedies are within the compass of the common law. I cannot, therefore, assent to the decision in the case of Birley v. Gladstone in 3 Maule & S. 205. It seems to me utterly unfounded in principle; and I cannot otherwise interpret the language of Sir William Grant, than as a disapprobation of it, although he felt himself bound by it. And I find, that the same view of the clause was taken by Mr. Chief Justice Parker in Pickman v. Woods, 6 Pick. 252, where, in delivering the opinion of the court, he says: “It is most usual (iii charter-parties) to stipulate, that the goods are bound for the freight, or that freight shall be paid or secured on delivery; and in all such cases the lien is considered perfect, notwithstanding there are covenants in the chartev-party for the payment of freight.” Mr. Chancellor Kent manifestly maintains the same doctrine in his Commentaries, as a result growing out of. and in conformity to. the maritime law; and few judges have a better title than he to speak strongly upon questions ot commercial and maritime law. 3 Kent. Comm. (2d Ed.) p. 220, lect. 47. See, also, the elaborate judgment of Judge Ware in Drinkwater v. The Spartan [Case Ño. 4,085], and The Rebecca [Id. 11,019], on the same subject.
i My judgment, therefore, is. that the clause in ! question contains an express contract for a lien i for the freight in this case; and that if it did j not. still that it contains enough to repel any ! notion, that the delivery of the goods should ¡ precede the payment of the freight, or that the I lien by the maritime law for freight was in- ! tended to be waived by the parties. The consequence is. that the libellant is entitled to a decree for the freight against the proceeds now in court. The decree of the district court [case unreported] is therefore affirmed with costs.
The learned reader will find this subject much discussed in Prynne’s very able expositions of Lord Coke’s errors, in his Animadversions on the 4th Institute, c. 22, on the admiralty court. Prynne’s Animad, pp. 75-133. See also Buller, J., in Smart v. Wolff, 3 Term R. 348; 2 Browne, Civil & Adm. Law, pp. 83-85, 100.
Prynne’s Animad, pp. 85, 118-122. Mr. Prynne has with great learning and ability endeavored to show from the petitions to parliament, on which the statutes of Richard the Second were grounded, that they were not intended to abridge the original jurisdiction of the admiralty; but to take away encroachments of the admiralty in regard to persons and things, which had nothing to do with maritime contracts or transactions on or beyond the seas. Prynne’s Animad, pp. 77-85.
The statute is given at large in the recent' edition of the statutes, published by authority of the British parliament. Prynne, in his Animadversions (pages 121, 122), has given the proviso verbatim; and I have myself examined the statute in order to ascertain its correctness. See, also, Zouch, Adm. p. 106.
A similar commission, with similar terms of jurisdiction was granted to Governor Went-worth of the royal province of New Hampshire, in 6 Geo. III. There will be found a citation from it of a corresponding passage in De Lovio v. Boit [supra], note.