Conway v. City of New York
Conway v. City of New York
Opinion of the Court
(orally). I will reserve the question as to the- liability of either the city or the Water Front Improvement Company; it being apparent that as it stands there is no security in the possession of the court.
As to the claims, J think that the $50 claim filed at first was evidently one for services, and was not based upon the idea of salvage. The second claim for ihe master and sailors would seem to have been made in full contemplation of the idea that they were entitled to compensation for what they did. -The fact that the men on board of the tug did not participate in it, that the estimate of it was solely by the owner, limits him, but not the men on the tug.
I think that for such services an award of $66.67 to the owner of the tugboat and of $83.33 to the men is right. The idea- of estoppel applies to the master of the tug, but under the circumstances, there being no knowledge of the claim brought home to the men, I think they are entitled to an award for what they did, and that the master's share should be cut down as 1 have suggested.
I will take under consideration the question of liability as against the city and the Water Front Improvement Company and the imposition of costs.
After consideration the court renders the fourth written opinion:
It appears that a fire occurred in a load of ashes and rubbish upon the scow. The workmen iti charge called to a tug passing up the Sound. This tug put in by a short channel, and put out the fire before the fire-boat could arrive. One witness testified that the fireboat had to go around by a longer channel, and seemed to be aground in the mud for a time.
As to the fixing of liability, many complications arise. The libelant is entitled to recover the allowance of $150 primarily from the owner of the barge, namely, the city of New York. Inasmuch as this barge was iti use in the public service, and as the city of New York is a corporation capable of being sued, an action in rem would not lie, but under the rules' of admiralty the present suit was brought in personam and no security was required.
The answer of the city was not filed until the 23d of February, 1911, and therein the city not only raises an issue upon the merits of the alleged cause of action, but also pleads in bar that a contract existed between the city of New York and the Water Front Improvement Company, by which the city of New York furnished the scow in question, with others, to the company for certain work, at the rate of $6 per day. The contractor agreed at his own cost and expense to keep the scows in good condition and repair, and to return them in good condition and repair to the city at the end of the service. Hence the city alleges that the salvage service, if rendered, was rendered to the Water Front Improvement Company, and not to the city.
A petition was filed by the city upon the same day, based upon the terms of this contract, in which citation against the Whter Front Improvement Company was asked, that they might he brought in to answer the libel, and that the Water Front Improvement Company should
The city of New York has now introduced in evidence the contract with the Water Front Improvement Company referred to in the answer and petition, and it would appear that any loss of services of the boat, because of the repairs to the boat itself, which were prevented by the action of the libelant at the time of this fire, would fall upon the Water Front Improvement Company under its contract. The rendering of salvage services was in a sense like the collection of insurance, if insurance had been taken out by the Water Front Improvement Company and a loss had been paid. If the boat was turned back to the city of New York in as good condition as it was turned over to the contractor, so that no claim arose under the contract, ‘it would seem that whatever benefit was rendered by salvage was rendered to the Water Front Improvement Company, rather than to the city of New York. But this question is complicated by the possibility of damage to other property of the city and to other boats in the neighborhood, for which again a claim might have been made against the Water Front Improvement Company, and hence from the prevention of which they received benefit.
The city of New York by bringing in the Water Front Improvement Company would have made it possible for the libelant to elect to transfer his claim to the Water Front Improvement Company, relieve the city, and to seek. security for- his actions, which he was entitled to do in admiralty if the proceeding be in rem, but which he could not do against the city. The advantages which the libelant might have had under this situation were lost through the failure of the city of New York to compel the AVater Front Improvement Company to act until the case actually was called for trial, and it .now appears that the in
Hence it is impossible to determine in this suit the rights of the three parties as they might be determined if bankruptcy had not intervened. Salvage services, however, are a claim against the property saved and the owner thereof, primarily, even if payment of this obligation can be transferred to another party when brought in as the real party in interest. This nevertheless is subject to the allowance of a claim against the original party and the substitution in the decree of the parties against whom the award shall run. In the present case the city of New York did not settle the claim when originally made because of the contract with the Water Front Improvement Company. The city of New York must by law have obtained security for itself against all loss occasioned by or representing a portion of the subject-matter of the contract entered into. This bond is available to the city, and rights under it would seem to be superior to the claim of the trustee in bankruptcy, and the salvage award, if allowed against the city, can be recovered by the city in full.
For these reasons, it would seem inequitable to allow the city to he relieved of its liability for these salvage services and to direct the libelant to pursue the Water Front Improvement Company by any process of subrogation to the city’s rights. As between the city of New York and the Water Front Improvement Company, inasmuch as both the city and the Water Front Improvement Company have submitted themselves to the jurisdiction of this court to determine the obligation of the company under its contract, it must be held that the city of New York is entitled to claim under the contract set forth this salvage award as damages for the breach of contract to return the boats in as good condition as when delivered: it being evident that the salvage claim attaches to the boat, even though an action in rein be not allowed.
The execution herein should issue upon the award of salvage, against the property of the Water Front Improvement Company which the city of New York has as security for the performance of the contract in question, but the libelant may have a decree for the salvage services jointly against the city of New York and the property of the Water Front Improvement Company as it existed prior to the filing of the petition in bankruptcy.
Reference
- Full Case Name
- CONWAY v. CITY OF NEW YORK
- Status
- Published