Higgins v. Atlantic Trust Co.
Higgins v. Atlantic Trust Co.
Opinion of the Court
This is one of four causes in which the question is whether the libelants acquired a lien against certain vessels belonging to the United States & Brazil Mail Steamship Company. They were heard together in the district court, the evidence in one being treated as the evidence in the others, and the respective libels were dismissed. The appeals from the decrees dismissing the libels have been argued together in this court, and the four causes may be conveniently considered as one for the purpose of disposing of the questions presented.
The lien claimed by the libelants is founded upon the New York statute “for the collection of demands against ships and vessels” (Laws 1862, c. 482, as amended by Laws 1886, c. 88), which, among other things, provides that whenever a debt amounting to $50 or upwards shall be contracted by the owner “on account of the insurance or premiums of insurance of or on” the vessel, such debt shall be a lien upon the vessel; but in all cases such debt shall cease to be a lien upon the vessel unless the person having the lien shall within “thirty days after the said debt is contracted” cause a specification of such lien to be filed, duly verified, in the clerk’s office of the county in which the debt has been contracted. The libelants, insurance brokers at New York City, had procured through Tyson & Co., insurance brokers in London, previous to the fall of 1892, several policies of insurance for the steamship company covering risks upon its vessels, upon which, at the time the policies were obtained, premiums became due and payable from the steamship company, either to Tyson & Co., or to the libelants, aggregating a large debt. The steamship company was dilatory in paying the premiums, and allowed the libelants to retain the policies, in order that .if a loss happened within the policies the insurance could be collected, and the premiums deducted therefrom, and also .in order that the libel-ants, if they saw fit, might at any time cancel and surrender the policies, in which event a considerable sum for unearned premiums would be restored by the underwriters. In February, 1893, after unsuccessful efforts to obtain payment of the premiums from the steamship company, the libelants canceled the rmlicies, and remitted to Tyson & Co. the amount of the premiums, less that ‘of the unearned premiums. Within 30 days thereafter, the libelants filed specifications of lien against several of the vessels of the steamship company insured by the policies, among them one against the Advance. Inasmuch as the debt for the insurance was contracted several months before the filing of the specifications of lien, instead of within 30 days, the theory that the lien survived seems to be so
Reference
- Full Case Name
- THE ADVANCE. THE ALLIANCA. THE SEGURANCA. THE VIGILANCIA. HIGGINS v. ATLANTIC TRUST CO.
- Status
- Published