24 F. Cas. 316 | D.S.C. | 1857
The libel in this case asks the aid of the court in three modes of relief: First, in a stipulation from the other part owners for the return of the vessel; -second, in having .an account taken • of her earnings; third, in a decree for sale, upon two grounds:' 1st, an irreconcilable disagreement among the owners, as to the mode in which the vessel should be employed; 2dly, misrepresentation in inducing the libellant to become the purchaser of the shares now owned by him in this vessel. The application for the stipulation, intended to secure the interest of a dissenting part owner, in case of a loss in a voyage undertaken against his wishes, has now become a familiar subject for the exercise of admiralty jurisdiction. He who is unwilling that a vessel shall proceed on a given voyage, may give notice thereof to his co-owners; and in case of loss he cannot be made liable to contribute (Abbott, 123), or he may apply to this court, and will be entitled to a stipulation. by which, in the event of loss, they shall be bound to him for the value of his share (Id.). So much of the prayer in the libel as relates to the stipulation has therefore been granted. It may not be improper for me to say. that the stipulation, in such matters, is in its nature provisional. It is not treated nor allowed as a continuing, permanent arrangement, by which the rights of an owner are protected and preserved; but simply as a present measure of relief, afforded in a particular case, for a particular voyage.. And when the application for it is regularly made, it then is apparent that a fixed discordance has arisen between the owners, which would seem to call for the exercise of some relief to be adopted, either by them or for them, more perfect and enduring. In relation to the account which is prayed for, it is,- in this branch of the case, sufficient for me to say, that considered in itself as a separate 'and independent mode of relief, it cannot be obtained in the admiralty. The Orleans v. Phœbus, 11 Pet. [36 U. S.] 175; Minturn v. Maynard, 17 How. [58 U. S.] 477. An account will be ordered as an incident of other matters concerning which the court has admitted cognizance. Davis v. Child [Case No. 3,628]. In this case, therefore, the question for an account depends on another question involving the sale prayed for. If a sale can be ordered, then, before the court can divide the proceeds, the mutual accounts of the co-owners must properly be entertained and adjusted, in making a just distribution. Andrews v. Wall, 3 How. [44 U. S.) 568.
The question of the power of this court to order a’ sale, in a case of disagreement among part owners, has been, and is still, in some respects,' a matter of equal importance and doubt. In coming to that conclusion which I shall now announce, it is fitting that with it I should -state the' reasons which have guided and- governed me.
In Great Britaiii,- the power of'the 'a'dmi-ralty to order á sale among .part'-own.eri,'in case of disagreement, has -been ..hitherto stoutly denied. The case of Ousten v. Hebden, 1 Wils. 101, is cited as the direct-authority for the opinion that the-.admiralty cannot compel a sale of a ship, on the application of a part owner who objects to a certain voyage; and Lord Stowell, in The Apollo, 1 Hagg. Adm. 300, speaking of the stipulation, has declared that “beyond this limit, the court has not moved.” But it .aids us very little to determine satisfactorily. the true nature and extent of the admi- ■ ralty and maritime jurisdiction in the courts of the United States, to refer to the opinions of the courts in Gieat Britain. In the first place, it is now generally conceded, that the jurisdiction of this court, intended to be exercised in the United States,- is not limited, ■as it was known in Great Britain anterior to the Revolution, and us-declared by the courts of that kingdom. De Lovio v. Boit [Case No. 3,776]; The Genesee Chief v. Fitzhugh, 12 How. [53 U. S.] 443. In the next place, it is not always that we can be certain. that even in the judgments of these courts, will we find a reliable exposition of the powers which have been admitted to belong to this jurisdiction. In Great Britain, the right of the admiralty to order a stipulation is now undoubted; yet in the court of king’s bench. Chief Justice Holt held that the practice was unlawful; and by others
We are then enabled, in opening our examination of the question here to be decided, to start with two principles of admitted admiralty jurisdiction in the United States;. 1st. that disagreement among part owners as to the employment of a vessel is a ground for the interference of this court, admittedly so far as may be necessary to secure to the dissentient minority the value of their interest; and 2d, that in rejecting any distinction between the possessory and petitory proceedings, a jurisdiction was affirmed, although a question of title might be involved. It is well, also, to be borne in mind, that in the case of Ousten v. Hebben, the question of a sale was not before the court. The application related solely to a stipulation, and the opinion of Chief Justice Holt, is in fact, little more than obiter dictum. Abb. Shipp. 12(i, note. Unquestionably, in the administration of admiralty and maritime jurisdiction in Great Britain and the United States, this marked difference exists in the sources from which the law is derived. as administered by each. In Great Britain the jurisdiction of the court is determined, partly by legislation — by conferences among the judges — and the opinions of judges of the king’s bench, in cases before it,. in which applications were made for a prohibition against the exercise of admiralty jurisdiction in some particular ease. And we are constantly reminded that reference is not made to the maritime law of the world, to determine whether a case can be adjudicated by a tribunal created' originally for the administration of that jurisprudence, but to another tribunal .not superior, but equal, animated with a jealous rivalry equally unreasonable and .unyielding. The Seneca [Case No. 12,070]. It is true, that the popular objection derived from the non obstante statuto clause in the admiralty commission, was rightfully one which, in a government resting upon popular principles, should be watched, and indeed should be exploded. But the legitimate consequence -of the argument from this, used against the admiralty, should have been extended to. and • embraced the king himself. Under the republican government of England, a juster sense of the mode in which the admiralty jurisdiction should be administered, seems to have been adopted: and the rule was then laid down, that matters submitted to it, should be determined “according to the laws and customs of the sea;” but this rule expired with the republican government, and was not re-enacted after the Bestoration. Hall. Adm. 26; Ben. Adm. 54.
Considered then in this light, the great argument against the exercise of this or any other power, derived from the “abstemiousness” of the admiralty in Great Britain, to borrow the language of Lord Stowell, loses much of the force it would otherwise possess. We are not at liberty to consider the conduct of the admiralty courts in Great Britain, as the evidence of such a jurisdiction being inconsistent with the limits which should be here assigned to it. and are forced, in this, as in many other questions, to seek other sources of information, in enabling us to decide whether the power is properly to be exercised or not. I shall, therefore, proceed to
In 182S, in Pennsylvania, the question again arose in the case of Davis v. The Seneca [Case No. 3.650]. before Judge Hopkinson. The libellants were owners of one-half the brig. The other half of the brig was owned by the captain, who kept possession of her. The ease, in fact, was one of disagreement between owners of equal shares as to the best
In the case of The Orleans v. Phœbus, 11 Pet. [36 U. S.] 175, Judge Story declared that “the jurisdiction of courts of admiralty in cases of part owners having unequal interests or shares, is not, and never has been applied to. a direct sale, upon any dispute between them as to the trade and navigation of a ship engaged in maritime voyages.” Nor do 1 understand him — although he is referred to as having done so — (Collyer, 996, in note) as extending the jurisdiction at any time farther than the case of an equal division among the owners, in relation to the employment of the vessel. Story, Partn. § 439. Although the title by which a vessel is held is not subject to the general law of a partnership, by which each partner has the power of disposition over the property of the concern; but instead of this, each stands to his associates in the relation of a tenant in common, with a perfect right to dispose of his own share, without affecting the shares of his co-owners; yet that general principle in all voluntary associations, by which the opinion of the majority controls in whatever relates to the subject matter of the common property, must still be recognized as applicable to the ownership in vessels. In the references which I have made to the established sources of the maritime law in Europe, it will be seen, that this, to me. seemingly necessary authority in the majority, is everywhere recognized as a part of the fundamental law. How far the practice, adopted at a very early day in Great Britain, of qualifying the right of the majority by a stipulation for the benefit of the minority, is adopted among continental courts in the exorcise of admiralty jurisdiction, it is not easy to ascertain; but in Great Britain and in the United States, it is now recognized as an appropriate exercise ot admiralty jurisdiction. and a proper condition to be imposed upon the general authority vested in the majority of the part owners for their employment of a vessel, against the wishes of the minority.
The right ot the majority to employ a vessel, against the wish of a minority desiring some other voyage, subject to the condition of giving a stipulation, is then clear, and the right of the majority to employ a vessel against the wish of a minority not desiring any employment of the vessel, is equally clear, subject to the same condition. The source of the right is in the fact of there being a majority in interest who favor the employment; but superadded to it, is another reason, derived from the considerations of public policy, and which is said to require the employment of vessels. Whether in the case where a majority desiring the employment of a vessel, a minority not desiring any employment, and that majority unable to make a sufficient stipulation; considerations of public policy would override the condition for the stipulation, or the latter will be preserved te the suppression of the former, and the destruction of the vessel, is a question yet to be decided; and upon its decision depends the decision of another question, which is. whether the order for a stipulation is a matter of right, or subject in any degree to the discretion of the court. If the order for the stipulation be a matter of right, then it may be, that the inability of the majority to give it, might present the case of the vessel rotting in her dock. “The right,” says Judge Story (Partnership, § 439,) “to order a sale of property subject to its jurisdiction, is clearly a matter within the competency of a court of admiralty, and indeed is familiar in practice, in order to'prevent irreparable mischief, or impending losses.” But conceding this to be so, as of course it must be, upon the familiar principle that a court has the power to preserve the subject of its jurisdiction pendente lite, yet it does not aid us in resolving the doubt, for the propositions stand to each other in this position; if the power of sale is in the court, (in case of irreparable mischief or impending loss,) it is because the case and the thing to which the case relates, is within its jurisdiction, and if the case is subject to its jurisdiction the power of sale (in the cases stated In the text) is necessarily in the court. The solution of either will .determine the other, but neither or both decide the real question, whether a power in the admiralty to decree the sale of a vessel, as a substantive power, is or not. within its jurisdiction.
I have had occasion to refer to the article in the marine ordinances of I.ouis 14th, which provides that in everything which concerns the common interest of the owners, the opinion of the greater number will prevail; and farther, that, that shall be reputed the greater number which represents the larger interest. By this, the major part may employ the vessel in a certain voyage, by the mere fact of being the major part, though the minority object. 1 Valin. Comm. 582.
If we come to a closer examination and summary of the general maritime law upon this question, we shall arrive at these results: A vessel, although the subject of private ownership, is regarded as a matter also of public interest. The public interest is protected in securing the employment of the vessel. In the management of a vessel, the opinion of the majority in value shall prevail, unless it forbids its employment, in which case it yields t.o the minority desiring its employment. The sale of a vessel is not encouraged, because the interference of the court in aiding a discontented part owner to force a sale, would in many cases ¡serve only to gratify caprice or passion, tend to the injury of other part owners, and invite frequent and injurious interruptions of commercial operations. In case of disagreement between part owners who have an equal interest concerning the employment of the vessel, a sale will be ordered, but such disagreement must not be upon the question of employment or not, for in such case, they who desire to employ, shall prevail, but it must be a disagreement as to the manner in which the vessel shall be employed. It seems to me that in these cases of disagreement among part owners, to which branch of the general question I confine myself, the admiralty will decree a sale; if beyond these, a sale will be ordered, it must depend upon some special considerations connected with a certain ease out of which no general rule can be framed. In the first of these cases, a sale will be ordered, because it is impracticable to decide the differences between the owners by the application of any other principle of the maritime law. In the second case, because by the application of the general rule of the maritime law, injury may ensue. In the third case, because it carries into execution a fundamental rule of the maritime law. The first case is illustrated by a disagreement between owners equal in interest, and both desiring to employ the vessel; here it will be seen that the rule respecting the wish of the majority cannot prevail for they are equally divided, nor can you decide this difference by the rule which gives the preference tp such as wish to employ the vessel for both desire to do so. It is obvious, then, that as no ground exists for the preference of one over the other, a .sale is necessary. The second ease is illustrated by what has been already hypothetically stated, where the minority do not wish to employ the vessel, but the majority who wish to employ the vessel, cannot give a sufficient stipulation. If the court cannot exercise a discretion in dispensing with the stipulation — and it would seem as if it were a matter of right which, demanded by the minority, cannot be refused — then a sale would also be necessary to prevent the destruction of the property. The third case, is where a majority in value showing it to be for the general good, ask for a sale; and in granting it the principle is recognized that the opinion of the majority in value shall .prevail, which by the Consulat de la Mer is specially applied to a sale. Nor should it be forgotten, that when these principles of maritime law were laid down, a greater necessity existed for the exercise by the court of the power to sell than can now be presented. Then a restraint was imposed upon the exercise of the owner's right to sell, in some cases until a voyage was performed, in others until the expiration of a certain period of time. Dur
The second ground upon which the libel-lant asks a sale, is that he became the purchaser of the share now owned by him in the vessel under certain representations made to turn as to the employment of the vessel; that these have not been fulfilled, and the neglect has been productive of injury to him. This is no ground for a sale. If the representations were all that the libel-lant considers them, and if they were connected with it and affected the other- part owners as if made by them, it would be a case for relief but not for a sale. Part owners may agree as to the mode in which the vessel shall be managed, and the substance of the representations charged by the libel-lant as made to him is not unusual in such agreements It is simply that the libellant should have the agency of the vessel for the purpose of employing her in the Florida trade. Such an agreement properly made out by proof and affecting the other part owners, would be enforced in this court, not upon the ground of the specific performance of an agreement, which is an appropriate head of equity and not of admiralty jurisdiction, but as a maritime contract. Whatever may be the representations made to the libellant by the captain, they have not been proved to affect the other owners. There is no evidence that such representations from the captain to the libellant were ever known to them. It was not an agreement which the captain, in that capacity, had authority to make, so as to bind the owners, nor as co-owner had he authority to bind his associates by any such agreement. He may have incurred a personal liability to the libellant, but he has not affected the other owners with any liability. The libel can only be retained for the stipulation which it asks, and which has been granted. The rest of the prayer, which asks for an account and sale, is refused.