Commercial Pacific Cable Co. v. The Steamship Manchuria
Commercial Pacific Cable Co. v. The Steamship Manchuria
Opinion of the Court
The libelant excepted to a portion of the answer of the intervenor and claimant. The portion excepted to is as follows:
*144 “And in this connection claimant alleges that on the evening-of said August 20th its agents asked those in charge of said Restorer whether it would be possible to use said Restorer to assist said Manchuria, that those in charge of said Restorer replied that it would not be possible without cabled instructions from home, that the claimant thereafter and on August 21st, 1906, sent a cable'to Mr. E. IT. Harriman, its representative in New York, a man well known there and of large interests, to see if he could make arrangements for the use of said Restorer; that the libelant herein was under certain obligations to said Tlarriman and to the claimant herein and said Tlarriman felt that said libelant would. be anxious to oblige him and said claimant, that said Tlarriman thereupon informed libelant by telephone that he would' appreciate assistance to said Manchuria by said Restorer, to which message libelant later replied that it had cabled to its agents in Honolulu to assist said Manchuria with said Restorer; that said Restorer proceeded to said Manchuria solely because of said cable from libelant in New York. And the claimant in this connection further alleges that the use of said Restorer was considered by the libelant, the claimant and said Harriman as in the nature of a special and personal favor to said claimant and said Harriman, and not as an agreement or contract for the performance of salvage services and was so understood by libelant, and that had the 'claimant or said Harriman believed that said Restorer would make any claim to salvage said Restorer would‘'not have been used by the claimant, since her use could have been easily dispensed with, all of which matters the claimant sets up in mitigation of damages.”
. The ground of exception is that the matters excepted to do not constitute any defense or properly affect the measure of damages and cannot properly be set up in mitigation of damages.
While it is clear from the authorities that an agreement for services connected with assisting a vessel in distress is no defense to a libel for salvage unless the contract is “to pay a given sum for the services to be rendered or a binding engagement to pay at all events whether successful or unsuccessful in the enterprise,” (The Camanche, 75 U. S. 448, 477; The Excelsior, 123 Id. 40, 49) the matter excepted to raises a some
It is a well established principle in law and equity that no financial obligation is incurred by the recipient of services that are gratuitous. “ The principle is by no means limited to cases of express agreement that no compensation shall be made, but extends to cases where from the acts of the parties and the surrounding circumstances it is apparent that the party by whom the.services were rendered did not intend to charge therefor and the party for whom they were rendered accepted them in reliance upon such intention.” 2 Page on Contracts, sec. p. 1176; Potter v. Carpenter, 76 N. Y. 157, 159-160; Allen v. Bryson, 67 Iowa, 591, 596. The matter excepted to alleges that the use of the Restorer was considered not only by the claimant and said Iiarriman but also by libelant as in the nature of a special and personal favor to said claimant and Iiarriman and not as an agreement for the performance of-salvage services, and that it was on this basis only that the Restorer, was used by the claimant.
I do not know of any reason why the principle of non-liability for gratuitous services does not apply in admiralty. If this engagement of the Restorer was, as alleged, an agreement
The exception is allowed.
Reference
- Full Case Name
- COMMERCIAL PACIFIC CABLE COMPANY v. THE STEAMSHIP MANCHURIA
- Status
- Published
- Syllabus
- Pleading — Allegation of answer in mitigation of damages — Exception: The answer alleged among other matters that assistance furnished by libelant through its steamship to libellee while in a perilous situation, was understood both by the claimant and its representative and by the libelant to be in the nature of a special and personal favor to the claimant and its representative and not as a rendering of salvage services, and that such matter is pleaded in mitigation of damages. Eeld,, on exception, that such allegation offers no basis for mitigation of damages.