The Eliza Lines
The Eliza Lines
Dissenting Opinion
with whom were Mr. Justice Harlan, Mr. Justice McKenna and Mr. Justice Day, dissenting.
Underlying all the questions connected with the libel of Ward & Co. for the possession of the cargo, and that of Andreasen in the nature of a cross libel against the cargo in rem, and against Ward & Co. in personam for freight, is the proposition that the abandonment of the vessel by the master and crew operated as a dissolution of the contract of affreightment and authorized Ward & Co. to reclaim possession of the'cargo, either freed altogether from any'claim for freight, or.upon the payment of a pro rata freight to Boston.
The general principles applicable to a contract of affreightment are entirely well settled, but it may not be amiss to restate such of them as bear upon the effect of an abandonment at sea, and subsequent rescue of the vessel. The contract is an entire one, and cannot be apportioned, unless by consent of the parties. The Nathaniel Hooper, 3 Sumner, 542, 554; Hunter v. Prinsep, 10 East, 378, 394; Post v. Robertson, 1 Johns. 24, 26. From the moment the cargo is delivered to the vessel, each is bound to the other for the performance of the contract. The shipper cannot recover his cargo except upon the payment of full freight. Tindall v. Taylor, 4 Ellis & Bl. 219. Neither can the vessel demand any portion of the freight until the cargo is delivered at the port
. If it be once granted that, in case of shipwreck or other disaster, the contract of affreightment is not dissolved, and the authorities on this question, both in this country and in England, settle this beyond controversy, Cargo ex Galam, Br. & L. 167; Shipton v. Thornton, 9 Ad. & Ellis, 314, it is difficult to see why, on principle, a compulsory abandonment at sea should work a different result, provided the vessel be ultimately rescued and taken into port. The abandonment is but a feature of the disaster, and is no abandonment at all of the ship and cargo in the sense in which that word is used in the law of marine insurance, where a.vessel after such disaster is abandoned to the underwriters. Thornely v. Hebson, 2 B. & Ald. 513, 519. In such case the abandonment is a voluntary and complete surrender of the ship and cargo, and of all right, title and interest thereto, and the underwriter becomes the owner with all the rights and liabilities incident to such ownership. It is true it has been held that the underwriter may decline to accept such abandonment and may repair the vessel and return it to the owner, but that does not change the character of the abandonment.
The same may be said of the throwing overboard of portions of a cargo of perishable articles, on account of rottenness, putrescence or threatened danger to the rest of the cargo. But the case under consideration is more nearly analogous to the jettison of valuable cargo for the purpose of relieving the ship or preventing her from drifting ashore. This has never been
The facts of this cáse show that as soon as the master learned. of the rescue of the vessel he went to Boston, arriving September 21, two days after the barque, went aboard the vessel, announced his intention of completing the voyage, and, the day after the libel for salvage was filed, interposed a claim for ship and cargo, in which he alleged that he was entitled to the possession of the cargo of hard pine lumber then on board of her, having given bills of lading for it, and being obliged by the. terms of such bills of lading to deliver said cargo at Montevideo
The American cases upon the effect of abandonment of a vessel at sea upon the contract of affreightment are not of any great value, as the subject is not fully discussed in any of them and the question was not presented in the aspect in which it is before us in this case. In the Elizabeth and Jane, 1 Ware, 41, the petition was for wages, which were denied upon the ground that the vessel had been abandoned and no freight had been earned. The case of The Nathaniel Hooper, 3 Sumner, 542, is still more indefinite in its treatment of the subject herein involved. So, in the case of Dunnett v. Tomhagen, 3 Johnson, 154, wages were denied to the seamen, because no freight was earned on the homeward voyage, no part of the cargo being delivered by the ship.
In Post v. Robertson, 1 Johns. 24, the vessel was abandoned after performing three-fourths of her homeward voyage, was rescued by salvors and brought into port, where the cargo was sold, and the proceeds paid to the salvors and owners. It was held that this was not such a delivery of the cargo as would entitle the ship-owners to maintain an action on the charter party for full freight. The case turned largely upon the form of action, covenant, and the court was inclined tó the opinion that an action might have lain for a quantum meruit.
In none of these cases was the question discussed as to the power of the master to reclaim possession of the cargo at the
It may be frankly admitted that the English cases lay down the rule that the abandonment of the vessel puts an end to the contract of affreightment, or at least it gives the owner of the cargo an option to do so. The case of The Kathleen, L. R. 4 Ad. & Ec. 269, is the earliest upon the subject, and asserts a principle .which has been followed in the subsequent English cases. The Kathleen had left Charleston with a cargo of cotton bound for Bremen, and when in the English Channel suffered a collision-with.another vessel, for which the Kathleen was in nowise to blame. On the following day she was abandoned by her crew and rescued by salvors, taken to Dover and sued for salvage. The owner of the Kathleen applied for leave to bond the cargo in the salvage suits in order that they might carry the same to its destination. The court ordered the cargo sold on the ground that it was deteriorating fast through the damage sustained by salt water. A suit for freight was subsequently instituted by thé ovmers of the vessel. Sir Robert Phillimore held that the original contract between the owners of the ship and cargo was at an end, and that no freight was due, and in answer to the claim of fro rata freight observed that the title to such pro rata freight must arise out of a new contract with the ship-owner, to which both parties assent, and as neither party assented, pro rata freight was not due. In view of the fact that at least seven-eighths of the voyage had been performed; that the collision which put an end to the voyage was not in anywise the fault of the Kathleen; that she was taken into a port in the immediate tíeighborhood, and that the vessel stood-ready to take the cargo on to Bremen and earn her freight, we are not favorably impressed with the natural justice of a decision which denied even pro rata freight to the master.
The case of The Cito, 7 P. D. 5, was much like that of The
In the case of The Leptir, 5 Asp. M. L. C. 411, the salving vessel took' off the crew of the vessel in distress, refused to allow her own crew to return, and the two vessels were navigated into a port of refuge. It was held that there was no abandonment, that the case of The Cito did not apply, and the court decreed for a pro rata freight.
In The Argonaut, unreported, but published in the Shipping Gazette of December 5, 1884, a vessel on a voyage from Halifax to Liverpool was abandoned by her crew and picked up by salvors off the English coast. On being taken to Plymouth the owners demanded the cargo, but the court ordered it carried to Liverpool, where it obtained a higher price than the owner could have gotten for it at Plymouth. It seems to have been carried in the ship by her own crew from Plymouth to Liverpool. The Admiralty Court allowed a quantum meruit freight, but its decree was reversed by the Court of Appeals, which held that the ship was entitled to nothing.
The prior cases were, however, pushed” to their logical conclusion in that of The Arno, decided by the Court of Appeals,
Although the House of Lords has not yet spoken upon the subject, these cases must be regarded as settling the English rule that a compulsory abandonment of a vessel at sea puts an end to the contract of affreightment and disentitles her owners to recover any portion of her freight, notwithstanding that she
That the soundness of this doctrine has not been accepted without challenge is evident, not only from certain expressions' by some of the English writers, but notably by Dr. Wendt,- in his work on Maritime Legislation, wherein he speaks of The Cito as having caused much surprise among those interested-in maritime commerce, and comments upon it as follows (3d edition, page 629):
“So long as this Cito decision stands it gives the cargo owner the full option to take advantage of the common misfortune for the purpose of evading the contract entered into by him. This, I confidently assert, is opposed to every principle of law and justice. A contract, by the law of every civilized country, holds good until both parties to it, of their own free will, agree that it shall not be carried out. Now, how can the abandonment of a ship in such a case as The Cito be taken to be an expression of an agreement on the part of the owners of the vessel to cancel the contract? The action of the crew in leaving a vessel to save their lives is. not an act óf will at all; they have to desert their vessel under the pressure of a vis major. How can this be taken to show an agreement on the-.part of the ship owner to abandon his part of the contract? ' He has no power to exercise any option at all. If, when the vessel is recovered and the owner again requires [acquires?] the power to exercise his will in the matter, he then elects not to. carry out his contract, and the cargo owner agrees, well and good; the contract is put an end to by mutual consent. - To assume, however, such consent on the part of one of the contracting parties from an action forced on his servants by a power which cannot be resisted seems to me to be a doctrine utterly opposed to common sense.”
The ruling of the English courts that even a delivery of the cargo at the port of destination does not entitle the ship-owners to any freight whatever, seems a somewhat startling innovation .upon the ancient rule of the Admiralty, that a loss occa
We consider the sounder doctrine to be that the compulsory abandonment of a ship at sea should be treated merely as a relinquishment of the voyage and of any present intention to continue it, but that if the vessel be subsequently rescued and taken into an intermediate port, the master retains the same right given to him by an ordinary disaster at sea, unattended by an abandonment, to resume possession of the.ship and cargo, subject, of course, to the claim of salvors, and carry the latter forward to its destination, provided he act with promptness and before any intervening rights had accrued.
The opinion of the court assumes that the abandonment of the vessel was a repudiation and a rescission of the contract of affreightment, when in fact it was involuntary, designed only to save the lives of the crew, and had as little effect upon the contract as if the vessel had met with a disaster not involving an abandonment and put into a port of safety for repairs. It apparently ignores the principle that, to constitute a rescission, there must be the same intent to rescind as there was originally to contract, and that the intent to rescind should not be inferred without some act which points unmistakably to that conclusion. There is no more reason for holding that the abandonment of the ship was a rescission of the contract of affreightment than that such abandonment was a renunciation of all the owner’s title to the ship in case she were subsequently rescued. Whether, if Ward & Company had insisted upon the ship carrying out her contract they might, in case of refusal, have had a cause of action, it is unnecessary to consider. It view of the severity of the storm, and of the danger of remaining on board, the effect of her abandonment on the contract probably never entered the. mind of the master. Such abandonment was not a failure to perform the contract in any particular, since it was the result of an overwhelming necessity, and if the vessel were
In such case the same question arises as if the ship had met with a disaster, and been navigated into a port by her own crew. We' think it makes no difference in principle whether a tug is hired by the master to take his ship into port, or a tug in the employment of another person comes along and picks her up. If the cargo-owner had himself rescued the vessel he might doubtless have declared the contract rescinded, but it is quite otherwise if the vessel be rescued by her own master and crew, or be taken in tow by a third party.
Applying the doctrine of the opinion, it would follow (and such are the English cases of The Kathleen and The Arno) that if the vessel be abandoned near 'her port of destination and towed into such port by a salving tug, she loses her whole freight and cannot even recover on a quantum meruit, though the whole voyage be performed.
This conclusion seems so irreconcilable with natural justice that we are constrained to dissent.
Opinion of the Court
delivered the opinion of the court.
This case comes here by certiorari to the Circuit Court of Appeals. The decree in that court was made in a cause in which were consolidated four suits: A libel for salvage against the Eliza Lines, her cargo and freight; a libel for possession by the cargo-owners against the cargo; a libel by the master against cargo and cargo-owners for freight and general average, and a libel by a bottomry lender against the vessel and freight. The Eliza Lines, a Norwegian bark, was bound on a voyage from Pensacola to Montevideo with a cargo of lumber, under a charter party, “ the dangers of the seas, fire and navigation always mutually excepted.” It was abandoned, justifiably, in consequence of dangers of the seas, and was afterwards picked up by salvors and brought into Boston on September 19, 1889. The master was notified by the owners and came on from St. John, New. Brunswick, arriving on September 21. The cargo-owners
The question is whether the abandonment of the vessel by the master and crew gave the cargo-owners a right to refuse to go on with the voyage in the circumstances disclosed; in other words, whether the cargo-owners properly were treated as guilty of a breach of contract for preventing the continuance of the voyage by their refusal and by procuring a sale. It will be noticed that the decree must stand on the ground that the contract was broken by the cargo-owners and that the ship-owners were entitled to recover under it, although the voyage was not completed. The decree was not upon a new contract such as it was attempted to set up in Hopper v. Burness, 1 C. P. D. 137, or upon the analogy of a quantum meruit at common law, which was expressly disavowed. The very foundation of a recovery upon the latter ground is that the express contract is out of the way, but that a benefit has been received which ought to be paid for. Therefore, in such a case the recovery cannot exceed
• There is no doubt that the English decisions confidently assert the cargo-owners’ right to refuse to go on. They may be read in the reports, and there is no need to do more than to refer to them. The Arno, 8 Asp. Mar. Cas. 5; The Leptir, 5 Asp. Mar. Cas. 411; The Argonaut, Shipping Gazette, Weekly Summary, Dec. 5, 1884, p. 775; The Cito, 7 P. D. 5; The Kathleen, L. R. 4 Ad. & Ec. 269. The only point which, they leave open is | whether, if the master should get the abandoned vessel and cargó back from the salvors before the cargo-owners had declared an election to end the contract, he might in that way revive his right to finish the voyage. On that point it is enough to say here that if the English rule is right, then, even if there is any such qualification to it, the exception must depend upon something more substantial than a few minutes' priority in filing a libel, when neither master nor cargo-owner has possession either of cargo or ship, as, plainly, neither had in this case.
The right of cargo-owners to treat the contract as. ended by the abandonment of the ship was asserted much earlier than the English cases by Judge Ware in The Elizabeth and Jane, 1 Ware, 41, S. C. 15 Fed. Cas. 478, Case No. 8321, and earlier still by Mr. Story before he became a justice of this Court, in his edition of Abbott on Shipping (1810), pp. 338, 512, citing Dunnett v. Tomhagen, 3 Johns. 154, and Mason v. Ship Blaireau, 2 Cranch, 240. We see nothing in The Nathaniel Hooper, 3 Sumner, 542, suffi
It was thought .by the Circuit Court and Circuit Court of Appeals that the doctrine so unanimously, sanctioned by so many of the most eminent judges of this country and of England is unjust, and the case was put of a long voyage nearly completed and the ship and cargo subsequently brought by salvors intact to the port of destination. But we are of opinion that there is no injustice in holding that what excuses the ship excuses the cargo, and that the rule is in accord with the general principles of contract. Subject to the question whether the cargo-owners broke their contract, it seems to us more unjust to charge them personally, in favor of- those who failed to complete the voyage as contemplated, with a sum much exceeding the benefit which the cargo-owners received from what was done. Of course it is desirable, if there is no injustice,’ that the maritime law of this country and of England should agree.
To begin at a. distance, a repudiation of a contract,-amounting to a breach, warrants the other party in going no further in performance on his side. Roehm v. Horst, 178 U. S. 1. But the same thing is true of an absolute repudiation not amounting to a breach. Frost v. Knight, L. R. 7 Ex. 111, 113; Phillpotts v. Evans, 5 M. & W. 475, 477; Ballou v. Billings, 136 Massachusetts, 307, 309.
It appears to us and we shall try to prove that an abandon
In the case at bar the vessel was abandoned with the intent not to return to her or to complete the voyage. This is admitted, if admission be necessary, by the testimony of the master. Of course it is not disputed that the completion of the voyage and delivery of the cargo are absolute conditions to the undertaking to pay freight, by the express terms of the contract and the familiar rule of law. 3 Kent Comm. 220, 228. The master left ship and cargo to their fate, and we cannot doubt, although it was denied, that, after he had done so, if the cargo-owners had been the salvors they could have treated the voyage as at an end. The ground must be that the abandon
If it be true that if, on the other hand, the master had rejoined the ship before any one else had taken possession, or had got it back from the salvors before the cargo-owners had been heard from, he might have had a right to complete the voyage, the ground must be that the law would not insist on a technical breach of condition when there had been no substantial change of circumstances and no harm done.
The argument on the other side consists largely in the attempt to treat leaving the ship under stress of perils of the sea as not distinguishable on principle from being torn bodily away from it by tempest. This is one of the oldest fallacies of the law. The difference between the two is the difference between an act1 and no act. The distinction is well settled in the. parallel instance of duress by threats, as distinguished from overmastering physical force applied to a man’s body and imparting to it the. motion sought to be attributed to him. In-the. former >case.
The same principles which apply to the making of a contract apply to the breach of it and to non-performance of the conditions attached to performance on the other side. The contract before us by construction provides that an abandonment of the voyage in consequence of the perils of the sea shall not be an actionable breach, but it equally provides that a completion of the voyage shall be an absolute condition to the right to freight. The same absoluteness attaches the further condition implied from the first that the effort to complete the voyage shall not be given up voluntarily, midway.
The argument urged to the effect that the cargo’s liability to general average created a right to have the voyage finished, however it might have been otherwise, does not need an ex
The case was brought here by the cargo-owners to get rid, if possible, of the personal liability imposed by the Circuit Court. As- this court is of opinion that the personal liability should not have been imposed, no other question needs consideration here.
Decree reversed.
Reference
- Cited By
- 31 cases
- Status
- Published
- Syllabus
- 'A vessel bound on a voyage from Pensacola to Montevideo with a cargo of lumber under a charter party, “the dangers of the seas, fire and navigation always mutually excepted” was abandoned, justifiably, in consequence of dangers of the seas and was afterwards picked up by salvors and brought into Boston. The master who was at St. John was notified and claimed the vessel and cargo from the salvors, stating his intention to repair the vessel and complete the voyage, to which cargo-owners objected claiming that the voyage was abandoned and they were entitled to the cargo and obtained an order for its sale. The Circuit Court held that the master should have been allowed to complete the voyage and earn freight and charged the cargo-owners personally with the net freight. Held error, and that the abandonment of the vessel by the master and crew gave the cargo-owners the right to refuse to go on with the voyage and that they were not to be treated as guilty of breach of contract for preventing the continuance of the voyage by their refusing to do so and procuring the sale. An open cessation of performance with the intent to do no more, even if justified, excuses the other party from further performance on his side. The same principles which apply to the making of a contract apply to the breach of it, and to nonperformance of the conditions attached to the other side. If there is no injustice it is desirable that the maritime law of this country and of England should agree.