Stevens v. Shippen
Stevens v. Shippen
Opinion of the Court
The facts of this case are fully stated in the opinion of the chancellor, reported in 1 Stew. 487. The only question raised on this appeal is, whether, under the resolution of congress, approved by the president July 17th, 1862, which, by its terms, released and conveyed the unfinished vessel known as the “Stevens Battery,” to the “heirs at law of Eobert L. Stevens, deceased, or tlioir legal representatives,” the title to that vessel passed to those heirs at law, or to Edwin A. Stevens as the residuary legatee of Eobert L. Stevens ?
On the 10th of February, 1843, Eobert L. Stevens entered into a contract with Mr. Upshur, then secretary of the navy, for ..the construction of a war steamer for the United States government, for harbor defence, shot-andsholl-proof; to be built principally of iron, upon a plan devised by Mr. Stevens. The vessel was to be built for a stipulated price, according to plans and specifications agreed upon, and to be completed within two years. Under this original contract, there could bo no doubt that the legal title to the vessel remained in Mr. Stevens until it was completed and delivered to, and accepted by, the government.
On the 14th day of November, 1844, a second contract, explanatory of the first contract, was entered into between Mr. Stevens and Mr. Mason, who had succeeded Mr. Upshur as secretary of the navy. After reciting the contract of February 10th, 1843, it was agreed that it should be modified and explained as follows: The time for the completion and delivery of the vessel was extended two years from the date of the explanatory agreement; the specifications were in some respects altered, and the manner in which the vessel was to be equipped more definitely stated.,
In 1849, the government, haying advanced $500,000 of the price, refused to make any further payment, and the work was therefore, for a time, suspended, but was again resumed in 1853. At the time of his death, Mr. Stevens had expended upon the vessel, which was then far from completion, over $113,000 of his own money, in addition to the sum of $500,000 received from the United States government. By his will, dated in 1846, he made his brother, Edwin A. Stevens, his residuary legatee, and it is admitted that if the vessel was part of the estate of Robert L. Stevens, it passed, under his will, to his brother Edwin.
The general rule of law, that, under a contract for building an entire vessel, no property vests in the party for whom she is built until she is ready for delivery, and has been accepted and approved by .such party, is not controverted. But it is claimed that this case is taken out of the general rule, by the fact that this vessel was constructed under the superintendence of the government; that payments were made upon her as the work progressed; and that, by the terms of the contract, materials for her construction were to be marked with the letters “ U. S.,” and to be the property of the United States. The case relied upon to support this distinction is Scudder v. Calais Steamboat Co., 1 Cliff. 370, in which Justice Clifford relies upon the authority of Woods v. Russell, 5 B. & Ald. 942.
In this state, in Elliott v. Edwards, 6 Vr. 265, it has been expressly held, contrary to the rule laid down in Woods v. Russell, that, in case of an executory contract to build a vessel, to be paid for in installments as the work progresses, the title remains in the builder until the work is completed and delivered. This case was affirmed in our court of last resort (7 Vr. 449), and must be accepted as the law of this case.
In Clarke v. Spence, 4 Ad. & El. 448, some importance is attached to the fact that the vessel was to be built under a
It will be observed that there is a circumstance which distinguishes the case in hand from Clarke v. Spence. In that case the plan of the vessel was agreed upon, and the superintendent of the purchaser was present to see that proper materials were used and the specifications complied with, and the vessel was to be taken by the purchaser; there was to be no uncertainty in regard to that; while in this case, by the express terms of the agreement, the authority of the inspecting officer was not to extend to a right to judge of the quality or fitness of materials, or of the workmanship of any part of them, but merely as to the cost of the same, and of the labor actually applied to them. The mode in which the vessel was to be constructed to make it shot-proof, was left to the judgment of Mr. Stevens, who, in the language of the chancellor, “ was actuated by a desire to embody and illustrate his own ideas of naval architecture for the purposes of warfare.” He undertook to build a vessel which should be shot-and-shell-proof against the artillery then in use on board vessels of war, and the government, in the contract, took unusual care to secure itself against the contingency of loss'in the event of his ideas proving to be a failure. Taking the whole contract together, it is manifest that the government did not intend to become the
If it had been the purpose of the explanatory agreement to vest the title in the government, it is .reasonable to suppose that there would have been a clear expression to that effect, and that neither party would have been content to leave so important a matter to uncertain inference. Advances were to be made by the government to Mr. Stevens, according to the amount of materials furnished for the work, and, therefore, they were marked “ U. S.” to ascertain the progress of the work, so that the government would not pay faster than the work was done, and, also, to prevent any misappropriation of such materials, by diverting them to other uses, after the government had advanced money to the contractor to an amount based upon the value of such materials. This was a wise precaution. The payments were not understood to have the effect of divesting Mr. Stevens of the title, because the contract 'expressly states that the payments were made in consideration of the security—that is, the mortgage—given for the faithful exe
The delivery was to be that of a vessel in its complete state, and its acceptance was to be contingent upon its capacity to accomplish what its builder had promised; otherwise the right to reject it was unquestionable. That such was the interpretation put upon this agreement by the government, may be fairly drawn from the history of the transaction,- When the work was suspended, in 1849, by reason of the refusal of the secretary of the navy to make any further payments, the vessel was left in the possession of Robert L. Stevens, and, after his death, in the exclusive possession of Edwin A. Stevens. There has never been any attemj)t on the part of the government to assert any title to the vessel, or to take possession of her. On the contrary, so far as appears, the inspecting officer of the government was withdrawn, and Robert L. Stevens, in his life-time, after 1852, expended, of his own money, oyer $113,000, and, after Robert’s death, Edwin expended over $89,000, in the work of completing the vessel, without any governmental supervision or interference.
I conclude, therefore, both upon the law applicable to the contract, and upon the understanding fairly to be deduced from its terms, and the conduct of the parties to it, that, at the time of Robert L. Stevens’s death, 'the title to this vessel was vested in him. The government had a
The resolution of congress upon which this controversy arises, must be read with this understanding of the legal rights of the respective parties under the original and explanatory agreements.
Edwin A. Stevens was permitted to remain in the exclusive possession and control of the battery during his lifetime. lie made various proposals, during the late civil war, to complete the vessel for the Hnited States government, which resulted in the appointment of a board of examiners to inspect the vessel, and a report by a majority of them, dated December 24'th, 1861, that it was not advisable, on the part of the government, to finish the battery on the plan then-proposed by Edwin A. Stevens.
On the 17th of the following July, the joint resolution in question was passed, as follows:
“A resolution releasing to the heirs at law of Robert L. Stevens, deceased, all the right, title and interest of the United States in and to the Stevens Battery.
“Resolved, by the senate and house of representatives of the United States of America in congress assembled, That all the right, title and interest of the United States in and to the Stevens Battery be and the same are hereby released and conveyed to the heirs at law of the said Robert L. Stevens, or their legal representatives.”
The government could not invest the heirs at law with the title of the vessel, because it had no title itself—it had merely a right of action for damages. The words of the resolution are not apt to pass a right of action, and if they were, the word' “ release ” would strongly indicate an intention to relieve the person against whom the right of action existed, and not to confer upon another- the right to maintain suit against him.
The decree, so far as appealed from, should be affirmed, with costs.
Decree unanimously affirmed.
Reference
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- Martha B. Stevens, and W. W. Shippen and others
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