Leary v. United States
Leary v. United States
Opinion of the Court
delivered the opinion of the court:
The appellants seek a reversal of the decree in this case on grounds which amount substantially to these: 1st. That the United States were the owners of the injured vessel, by the terms of the charter-party, during the continuance of the
I. There is no doubt that under some forms of a charter-party the charterer becomes the owner of the vessel chartered for the voyage or service stipulated, and consequently becomes subject to the duties and responsibilities of ownership. Whether in any particular case such result follows must depend upon the terms of the charter-party considered in connection with the nature of the service rendered. The question as to the character in which the charterer is to be treated is, in all cases, one of construction. If the charter-party let the entire vessel to the charterer with a transfer to him of its command and possession and consequent control over its navigation, he will generally be considered as owner for the voyage or service stipulated. But, on the other hand, if the charter-party let only the use of the vessel, the owner at the same time retaining its command and possession, and control over its navigation, the charterer is regarded as a mere contractor for a designated service, and the duties and responsibilities of the owner are not changed. In the first case the charter-party is a contract for the lease of the vessel; in the other, it is a contract for a special service to be rendered by the owner of the vessel.
In examining the adjudged cases on this subject we find some differences of opinion, especially in the earlier cases, as to the effect to be given to certain technical terms used in the charter-party in determining whether the instrument parts with the entire possession and control of the vessel, but no difference as to the rule of law applicable when the construction is settled. All the cases agree that entire command and possession of the vessel, and consequent control over its navigation, must be surrendered to the. charterer before he can be held as special owner for the voyage or other service mentioned. The retention by the general owner of such command, possession] and control is incompatible with the existence at the same time of such special ownership in the charterer. Christie v. Lewis, (2 Brod. & Bing., 410, 434.) Marcardier v. The Chesapeake Insurance Company, (8 Cranch, 39, 49.) The Schooner Volunteer and
If, now, in the light of these observations we look at the charter-party in this case, we shall ñnd little difficulty in disposing of the first ground for reversal presented by the appellants. The vessel here was chartered for the purpose of plying in the harbor of Port Eoyal, in South Carolina, or for such other service as the Government might designate, and the provisions which the charter-party contains on the part of the owners sound only in covenant. By it they engage that during the existence of the charter the vessel shall be kept tight, staunch, well fitted, tackled, and provided with every requisite, and with the necessary men and provisions; that the whole of the vessel, with the exception of the necessary room for the accommodation of the crew and the storage for the cables and provisions, shall be at the sole use and disposal of the Government; that no goods or merchandise shall be laden on board otherwise than from the Government, or with the assent of its agent, on pain of forfeiture of the amount that may become due on the charter; and that the owners will receive on board all lawful goods and merchandise which the Government may think proper to ship. In consideration of these stipulations the United States agree that the owners shall receive the sum of $250 per day for each day the vessel is retained under the charter, and that they will supply the vessel with coal; and in case the vessel, while executing the orders of the Government, shall be destroyed or damaged by a hostile force, or by being compelled to run any extraordinary marine risk, that the owners shall be indemnified.
The stipulations here designated on the part of the owners imply the possession and command of the vessel by them, and would be inconsistent with such position and command by the Government.
Stipulations that the general owners shall keep the vessel in good condition during the existence of the charter and receive on board certain goods at the request of the Government, and refuse to receive other goods without its assent, would be out of place and inappropriate if the Government were, at the same time, special owners of the vessel for the service stipulated, having the vessel in its entire possession and control., Great weight was given to similar clauses by the King’s Bench in
The fact that the service stipulated in the present case was to be rendered for the Government cannot alter the natural import of the terms used in the charter-party, or change its construction, although in a doubtful case that fact might be entitled to much consideration.
II. The second ground presented by the appellants for a reversal of the decree is readily answered. The risk that the vessel incurred in complying with the orders of the harbormaster was not an extraordinary marine risk within the meaning of the charter-party. The term extraordinary is there used to distinguish an unusual risk which-the-vessel might be compelled to run, by order of the Government, from those risks which would be covered by an ordinary marine policy and which might be expected to arise from the service in which the vessel was engaged. The contract of the Government was not intended to apply to the usual risks attendant upon the performance of a service such as was here mentioned, but risks outside and beyond them.'
The risk incurred was of a possible collision with a sunken anchor in the harbor. This was an ordinary risk which every vessel must run that enters a harbor, and is one which every marine policy covers.
Decree affirmed.
Reference
- Full Case Name
- LEARY'S CASE. Arthur Leary v. United States
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- Published
- Syllabus
- On the claimants’ Appeal. A charter-party provides that in ease the vessel “while executing the orders” of the charterers (the Government) shall he destroyed or damaged, hy a hostileforce; or “by being compelled” hythe charterers “to run any extraordinary marine risk,” then the owners to he indemnified. The Government’s military harbormaster in Port Boyal orders thevessel tomove out from the wharf; the captain objects, as the tide is low; the harbor-master peremptorily repeats the order ; the captain obeys, and the vessel strikes upon a sunken anchor and is lost. The existence of the anchor is known to the captain, but he supposes the vessel to be a long way on the outside of it. The owners bring their suit upon the indemnity clause. The Court of Claims decides that the loss ivas a usual marine disaster, and not an extraordinary marine risk as contemplated by the charter. Judgment for the defendants. The claimants appeal. I. Where a charter-party lets the entire vessel to the charterer, with a transfer of possession and command and consequent control over her navigation, the charterer generally will be considered as owner for the voyage; but where it lets only the use of the vessel, the owner retaining possession and command and control over her navigation, the charterer will be regarded as a mere contractor for a designated service, and the duties and responsibilities of the owner remain unchanged. Entire command and possession and consequent control over the navigation must be surrendered to the charterer, to hold him as special, owner for the voyage. II. Where a charter-party provides on the one side that the owners shall keep the vessel tight, staunch, &e., and provided with the necessary men and provisions, that the whole of the ship, except the necessary room for the crew and the provisions, shall be at the disposal of the charterers, and that no goods but the charterers’ shall be laden on board; and on the other side, that the owners shall be paid a per diem compensation for the use of the vessel, and be supplied with coal; and that, in case the vessel shall be damaged by a hostile force, or compelled to run an extraordinary marine risk, the owner shall be indemnified; possession and control do not pass to the charterers, and they cannot be held as owners for the voyage. III. The fact that the service stipulated for in a charter-party is to be rendered for the Government cannot affect the import of its ternjs or change its construction, although in a doubtful case the fact might be entitled to much consideration. IV. Whore a charter-party to the Government in time of war provides that if the vessel be damaged, ‘‘by being compelled to run any extraordinary marine risk,” the Government shall bear the loss, and afterward the vessel is destroyed by a sunken anchor which her master supposed to be at a distance, the disaster cannot be held an “ extraordinary marine risk” within the meaning of the charter, although a military harbor-master convened the captain to move his vessel at the time. That term is used to distinguish the risk assumed by the Government from those which might be covered by an ordinary marine policy.