Borland v. Zittlosen
Borland v. Zittlosen
Opinion of the Court
This libel was filed to recover a bill of $1,441.77 for supplies furnished by the libelant to the ship Zephyr in June, 1883. The proof shows that the registered owners were the defendants Zittlosen, Springier, and Booth; but that Booth was a mere nominal owner, holding his interest for the benefit of the defendant Kruger, a prior registered owner, in-whose interest the voyages continued to be made as before; that Zittlosen was ship’s husband and general agent of the vessel in New York; and that Booth took no part and had no beneficial interest in her navigation. The amount of the supplies was admitted.
The law is well settled in this country that a mere registered owner, holding a nominal title only for the benefit of another, and taking no part or interest in the vessel’s business, is not personally liable for supplies furnished. In such eases, tLough the vessel may be bound in rem, the master or ship’s agent has no authority to bind the merely nominal owner personally. Macy v. Wheeler, 30 N. Y. 231, 241; Stedman v. Feidler, 20 N. Y. 437; Scull v. Raymond, 18 Fed. Rep. 547, 549, 550, and cases there cited. If, in any such case, an equitable estoppel might arise against a registered owner through the effect of the registry and the representations of the captain or agent, the estoppel could not arise where t'he material-man was put upon his guard, or had reason to suppose that the registered owner was a merely nominal owner for the benefit of another. In this case I think the evidence is sufficient to show that the libelant knew that Booth, though one of the registered owners, had no interest in the vessel. In Brodie v. Howard, 17 C. B. 109, 121, and Frayer v. Cuthbertson, 6 Q. B. Div. 93, knowledge that a part owner dissented was held immaterial. It was held a sufficient defense that the other owners and the master had no authority to bind him. Upon either ground the defendant Booth must be held not liable in this case.
In September, 1883, the libelant took the note of Zittlosen, the ship’s husband, at four months,-for the amount of the bill. Before
The estoppel relied on is based upon the alleged statements or admissions of Borland, which three witnesses testified were made by him to Kruger in July, 1883, to the effect that he had been paid, or had been settled with, by Zittlosen. If the proofs satisfied me that statements of this kind had been deliberately made by Borland, and made either with the design to influence the remittance of funds to Zittlosen, or under circumstances that Borland might reasonably have supposed would influence the conduct of the other owners, and that the other owners, relying upon these statements, had afterwards remitted funds to Zittlosen to their prejudice, no doubt a legal estoppel would be made out against any subsequent claim upon the other owners; for the remittance and the consequent injury would in that case have Leon chargeable to the wrongful misrepresentation of the creditor. Thomson v. Davenport, 9 Barn. & C. 78; Robinson v. Read, Id. 449; Irvine v. Watson, 5 Q. B. Div. 414; Davison v. Donaldson, 9 Q. B. Div. 623; Heald v. Kenworthy, 10 Exch. 739, 746; Berwind v. Schultz, 25 Fed. Rep. 912, 920; The Irthington, post, 143.
1. Certainty as to the facts is the first requisite of such an estoppel. Bigelow, Estop. 490; The Belle of the Sea, 20 Wall. 421, 430. Testimony as to naked admissions given by witnesses who, though not parties to the record, are in close sympathy and interest with the party calling them, is one of the most untrustworthy kinds of evidence. ' 1 Greenl. Ev. § 200. In Lench v. Lench, 10 Ves. 518, Sir William Grant says: “This is, in all cases, most unsatisfactory evidence, on account of the facility with which it may be fabricated, and the impossibility of contradicting it. Besides, the slightest mistake or failure of recollection may totally alter the effect of the declaration.” This was approved by the chancellor in Botsford v. Burr, 2 Johns. Ch. 412, and by Story, J., in Smith v. Burnham, 3 Sum. 438. Under our present practice, which allows parties to be witnesses, where such testimony is given after the death of the person alleged to have made the statements, so that only one side can be heard, it is liable to peculiar suspicion. Usually the witnesses cannot give the precise language, nor the whole of it. A little difference of expression, or a slight qualification omitted, forgotten, or suppressed, might neutralize all its legal effect. In the cases above referred to, the absence of corroborative circumstances, with some countervailing proofs, were held sufficient ground for disregarding it, leading to the conclusion, as Story, J., observes, that “there may have been some mistakes and misapprehensions, to say the least, on the part of the witnesses as to the purport and effect of the conversation to which they testified.” When there are no corroborative circumstances, and the proofs show beyond controversy the incorrectness of the statements alleged, and that there was no motive to mistake the fact, it is more rational to suppose misunderstanding or mistake or inaccuracy in the testimony, than to suppose statements made which the circumstances show to be in the highest degree improbable, if not incredible.
Such is precisely the situation of the libelant’s claim here. At the time the statements are alleged to have been made by Borland, that is, in July, 1883, it is perfectly certain that not a dollar had been
2. Whatever the conversation may have been, it is not stated that there was any suggestion to Borland that the inquiry was made in the master’s behalf, or intended to be communicated to the master, or made with reference to securing the payment of the libelant’s bill; or that any remittances of money to Zittlosen were intended. .'Kruger, to whom the statements are said to have been made, was at the time largely indebted to the ship, and no payment or settlement was expected by Borland through him. So far as related, the conversation, even as testified to, would seem merely casual. Estoppels of this character are based upon the obligations of good faith. This obligation is mutual, and requires that no estoppel be drawn from conversations merely, unless the person answering inquiries knows, or has reason from the circumstances to believe, that the action of others is likely to be influenced by his answers. Pierce v. Andrews, 6 Cush. 4; Bigelow, Estop. 484, 529, 541. There was nothing to indicate anything of this kind to Borland. Whatever the conversations referred to may have been, I am not satisfied that the testimony as to Borland’s remarks fairly represents all that occurred. The remarks may have been misunderstood, or imperfectly reported, or not seriously meant. He could not have supposed or suspected that they would influence any one’s conduct. They may have been mere facebice or persiflage, or made after the note had been taken in September,—too late to operate as an estoppel.
3. To constitute an estoppel it must further appear that the defendants have been legally prejudiced; that is, so substantially injured that it would be unjust to allow the libelant’s demand. The evidence fails to show this. The proof shows that both the other owners were indebted to the ship, and to Zittlosen-, as ship’s husband, far beyond all the moneys remitted by the captain, after the alleged statements of Borland. If the captain had paid Borland’s bill, so much less would have been remitted to Zittlosen, and the liability of the master and of Kruger to him have been so much more. It is not claimed, and there is no reason to suppose, that the master would not have sent to Zittlosen the remaining $6,000. As a creditor of the ship he was entitled to that money. It was a matter of indifference to these defendants whether their indebtedness was to Zittlosen alone, or to Borland and Zittlosen. They have lost nothing by paying the whole $7,500 to Zittlosen, instead of paying some $1,500 of it to Borland. The fact that so large an amount of money, in excess of Bor
■The libelant is entitled to a decree against all the defendants, with costs, except as against Booth, against whom the libel is dismissed, with costs.
Reference
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- Borland v. Zittlosen and others
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