Chamberlain v. Harrod
Chamberlain v. Harrod
Opinion of the Court
The opinion of the Court was afterwards read, as drawn up by
The question presented is, whether the defendant Is or is not chargeable, upon the evidence detailed in the case before us. The vessel, the fourth part of which is in controversy, had been a voyage to New Orleans, had sailed thence to Philadelphia, and
The transfer to and by Bayley, and the title of the defendant derived therefrom, depended upon the bond given by the plaintiff* to Lewis & Co. and upon their authority to Hathaway & Co. dated May. first. By the power, Hathaway was to demand, and by legal means to recover and receive, the amount of the two notes mentioned in the bottomry, and, if need be, to take possession of and to sell the quarter part of the brig. This gave him no authority to assign and transfer the instruments ; that was derived from the letter of instructions, and was to be done for a specific purpose. By these instructions, if he sold, it was not to be for a less sum than fifteen hundred dollars; but as this limitation does not appear in the power, the title of a purchaser under it, without notice of the limitation, would be unaffected by it. But the agent did not sell the brig. The power therefore may be laid out of the case; as he did not act under that instrument. He sold and assigned the bond and the notes. Under what circumstances was he authorized to do this ? A part of the letter of Lewis & Co. of May first, will determine this question. It is in these words : “ Capt. Harrod, the charterer, or any one else, who may be disposed to advance the amount of the annexed demand, shall have for their security the bottomry bond, which we will warrant and defend, and the policy of insurance on said quarter, say sixteen hundred dollars, from the tenth of December, 1820, to the tenth of December, 1821, at noon, at sea or in port, and they shall withhold one fourth part of the charter of said brig, until they are fully reimbursed.” Lewis & Co. were unwilling to sacrifice the interest of the plaintiff; and they guarded against it. The agent must have assigned in the faith that these terms would be complied wkh. Bayley declined making the advances, and giving credit therefor^
In Church v. The Marine Ins. Co. 1. Mason 344. Story J. expresses a strong doubt whether the master, even at a judicial sale, can purchase on his own account •, but he is very clear that he cannot purchase for his own benefit, at a sale which he has had any agency-in directing.
There is no evidence that Lewis, Haven & Co. were pressing for their advances, on account oí the repairs; or that they would have have interposed any obstacle to the sailing of the vessel. For advancing the sum, necessary to liberate her from attachment, they could have taken an assignment of the bottomry, given by the plaintiff to W. Lewis & Co. to be held until reimbursed by the charter: which would have been in accordance with the instructions of W. Lewis & Co. to their agents. They might have been, however, unwilling to do this, unless their previous advances were also included in the bond; and the course pursued by the defendant might have been deemed by him, until he thought proper to set up an adverse and independent title of his own, to be in furtherance of the plaintiff’s interest; the vessel being thus relieved from detention, and placed in a condition to prosecute a voyage, believed to be beneficial to the owners. In point of fact, nothing was raised from the defendant’s funds ; Lewis, Haven & Co. not being paid until after the return of the vessel ; when'the fourth part of her earnings, she having been on charter. Between ten and eleven months, was sufficient for their reimbursement.
If, in these proceedings, the defendant contemplated a benefit to himself, at the expense of the plaintiff, and that from a necessity which he had created without authority; it would be a violation of duty to the plaintiff, inconsistent with the relation existing between
There are two grounds, upon which the defendant may be considered as having purchased in trust for the plaintiff, at his election. In the first place, a purchase by the master is generally to be considered as made for the benefit of the owners, if they determine so to regard it. This principle is recognized by some of the authorities cited in this cause; and arises from the relations of trust and confidence, which exist between the parties. In the second place, he may be presumed to have assented to purchase on account of the plaintiff. Ho knew that Hathaway & Co. were authorized to assign the instruments only as collateral security, to be held until the earnings of the fourth part of the brig might reimburse the advances made. His offer to reconvey to the plaintiff, shows also that he con-' sidered himself as acting in his behalf. The election of the plaintiff to regard the purchase of the defendant as having been made in trust for him, is evinced as well by his acceptance of the defendant’s draft, as by his bringing this action. The failure of the plaintiff to pay that draft, did not deprive him of his interest in the vessel, or justify the defendant in claiming to hold it thereafter in his own right. Haven, in his deposition, says that forty days was the period limited in the defendant’s draft, by the direction of his house, as the longest to which they would accede. It is not easy to perceive the necessity for this limitation. The term of credit given by them to the defendant on his bond, does not appear. They caused, however, their bottomry interest to be insured, and received the amount from the defendant on the return of the vessel; and it may be presumed that payment on her return was .originally stipulated. If we are to understand the forty days, as the longest period within which they would he satisfied to receive their advances and cancel their bond, without exacting marine interest, it could certainly have been of no importance to them by whose hand the bond might subsequently be paid. Their bottomry and insurance was ample security to them; and they were in fact paid from the subsequent earnings of the plaintiff’s fourth part, under the charter party. If the defendant purchased in trust, a§ he must under the circumstances be held to have done, it does
The opinion of the court is, that the defendant is by law accountable to the plaintiff for the earnings of the fourth part of the brig Levant, he being allowed for the amount of the bottomry bond to Lewis, Haven & Co. and for all necessary charges and disbursements; that assessors be appointed to liquidate the amount; and that the verdict be amended according to their award.
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