Carter v. C. R. Bishop & Co.
Carter v. C. R. Bishop & Co.
Opinion of the Court
First: Are mortgages recorded with the Collector, and not with the Registrar valid? The statute reads thus: “All mortgages of chattel property * * shall, in order to their validity, he recorded in the office of the Registrar of Conveyances, in default of which, no such instrument shall be binding to the detriment of third parties, or conclusive upon their rights and interests.” Section 1268, Civil Code. “It shall be the duty of the Collector General to keep a record of all transfers, by sale or otherwise, and all mortgages or hypothecations, of any Hawaiian registered vessel, or any part thereof; and no such transfer, mortgage, or hypothecation, shall be valid or effectual, unless made by written instrument, nor until such instrument shall have been deposited with said Collector General for record,” * * Section 640, lb. “Every transfer of a registered vessel, or any part thereof, duly made and recorded as prescribed in the last preceding section, shall entitle the transferee, being a Hawaiian subject, or otherwise entitled to the right of registry of such vessel, to all the rights and interests of the original registered owner, in respect to such vessel and entry.” Section 641, lb. Sections 642 and 643, lb., provide for recording the discharge of mortgages with the Collector, under penalty of fine, and require the owner to produce before the Collector the certificate of registry within three days, under penalty of seizure and condemnation of the vessel.
It was claimed in behalf of' the mortgagees, that the question is between the original parties, inasmuch as the assigdees merely represent Spencer & Co., and take the interests of that firm, subject to all legal and equitable claims existing at the date of the assignment. The authorities are uniform, that assignees take the property of a bankrupt subject to the liens legally and bona fide existing against him. James’ U. S. Bankrupt Law, p. 36, el seq., and cases there cited; Story’s Partn., § 361. But these are not proceedings in bankruptcy,
The only object of recording with the Registrar is notice ; .the Collector’s record both gives notice, and fixes the nationality of the vessel, with all the privileges and liabilities consequent thereon. The former is insufficient for either of these purposes, by the express words of the statute, and the
Second: Have Spencer & Co., as ship’s husbands and part owners, a lien for their disbursements for the vessel, preceding the mortgagees’ claims ?
The statutes of this country make no provision for preferred claims by those furnishing materials, repairs, or supplies. A maritime lien gives a peculiar privilege over other debts, a right to the property itself, or jus in re, and whether it exists by statute or by the general maritime law, it is strieti juris, and should receive a construction limited solely to the objects for which it exists. It is a case under the maxim of the Civilian Paulus, — “Quce propter necessitaiem recepta, sunt non debent in argumentum trahi,” “ necessity justifies no argument beyond the case it has enforced.” See the Young Mechanic. The Kiersarge, 2 Curtis, Cir. Court Rep., 404, 421. Those objects are, to promote the interests of commerce, and that “ ships may plow the ocean, and not rot by the wall.” In the bark George, our late learned Chief Jus-, tice Lee appears to have regarded the doctrine of the civil law which allows liens for supplies on domestic vessels, as in force here. We are not aware that the law of that case has been doubted in this Court, or that shipping or mercantile interests have suffered any inconvenience therefrom. But by all the authorities to which we have access, that decision is not applicable to the present case. The lien of part owners who are also ship’s husbands, for their advances, was extended even by Lord Hardwieke only to eases of partner
The authorities cited are clearly to the effect that neither a part owner, as such, nor a ship’s husband, as such, has a lien on the shares of the other owners, or on the entire ship for advances. See, also, Flanders on Shipping, § 388. The cases distinguish between the lien on the proceeds of a voyage and on the ship itself.
The shares mortgaged by Spencer & Co. could no longer be their own security for advances made by themselves. Babcock’s share was also mortgaged, together with that of Spencer & Co., and with their full knowledge. How could they expect his share to pay them for subsequent outlay ? Even a lien for repairs must not be allowed to remain unenforced, until bona fide purchasers may have reason to think that none exists. Admiralty Courts do not sit to enforce stale claims. To cite again from the Civilians : “ Every one must suffer the consequences of his own delay ; ” “ unieuiqae mora sua nocet.” To allow the lien claimed in this case would be going further than ignoring mere laches, or neglect: it would open»the door to endless difficulties, one of which would be, to destroy the value of mortgage securities.
Although we are not bound by the English and American decisions, to the extent and in the manner that the courts there are governed by them, we have, on that account, no more power to decide arbitrarily.
The case has been fully and ably presented by the learned counsel, but we are compelled, upon full consideration of the authorities, and by fixed principles of law, to disallow the claim of the assignees, and to declare the mortgages to be valid.
Let judgment be entered accordingly, with costs to the mortgagees.
Reference
- Full Case Name
- H. A. P. Carter and T. H. Davies, Assignees of C. N. Spencer & Co. v. C. R. Bishop & Co., and L. B. Green, Mortgagees
- Status
- Published