British Transport Commission v. United States
British Transport Commission v. United States
Opinion of the Court
delivered the opinion of the Court.
The British Transport Commission, owner of the overnight ferry, Duke of York, questions the power of a District Court sitting in an admiralty limitation proceeding to permit the parties to cross-claim against each other for damages arising out of the same maritime collision. The United States, as owner of the U. S. N. S. Haiti Victory, had filed the original proceeding in which the Commission along with others filed claims. While the proceeding was pending some of the claimants against the Haiti filed cross-claims against the Duke and, in addition, the United States asserted a “set-off” and “cross-claim” against the Duke in answer to the latter’s claim. The District Court dismissed all of the cross-claims on the ground that “a limitation proceeding does not provide a forum for the adjudication of liability of co-claimants to each other.” The Court of Appeals reversed holding that “As a practical matter as well as an equitable one, the claimants herein should be allowed to implead the Commission.” 230 F. 2d 139, 144. Because the question is an important one of admiralty jurisdiction we granted certiorari, limited to the limitation proceeding question. 352 U. S. 821. We agree with the Court of Appeals.
On May 6, 1953, in the North Sea, the Naval Transport, Haiti Victory, owned by the United States, rammed the overnight channel ferry, Duke of York, owned by
The Duke filed a claim in the proceeding for $l,500j000 and in addition an answer in which it claimed, inter alia, that the damages resulting from the collision were “not caused or contributed to by any fault or negligence on the part of this claimant . . . but were done, occasioned or incurred with the privity or knowledge of and were caused by the Petitioner and its managing officers and supervising agents and the master of the Haiti Victory . . . which will be shown on the trial.” The United States answered that the collision “was occasioned by either the sole fault of the Duke of York or the joint fault of both the Duke of York and the Haiti Victory”; it alleged damage to the Haiti in the sum of $65,000, and that in addition it “has also been subjected to claims by passengers and members of the crews of both vessels filed herein, which presently approximate $809,714 for personal injury and death, and $45,975 for property damage other than that claimed by the Duke of York; all of which damage it prays to set off and recoup against the claimant,
On a hearing “restricted to the issues of the asserted liabilities of the two vessels, Duke of York and Haiti Victory, for the collision,” the court exonerated the Haiti from all liability, holding the Duke solély to blame for the collision. 131 F. Supp. 712. This finding was subsequently affirmed by the Court of Appeals and is not before us.
The excellent coverage this Court’s cases have given the historical incidents forming the background that went into the adoption of the Limited Liability Act relieves us of any minute recitation of that history. See Norwich Co. v. Wright, 13 Wall. 104 (1872); Providence & N. Y. S. S. Co. V. Hill Mfg. Co., 109 U. S. 578 (1883) ; The Main v. Williams, 152 U. S. 122 (1894); Just v. Chambers, 312 U. S. 383 (1941). The history shows that although the Act was patterned on earlier English statutes its foundations sprang from the roots of the general maritime law of medieval Europe. “The real object of the act . . . was to limit the liability of vessel owners to their interest in the adventure,” The Main v. Williams, supra, at 131, and thus “to encourage ship-building and to induce capitalists to invest money in this branch of industry,” Norwich Co. v. Wright, supra, at 121.
The Congress by the provisions of the Act left the form and modes of procedure to the judiciary. Twenty years after passage of the Act this Court adopted some general rules with respect to admiralty practice. See 13 Wall, xii and xiii. Rule 56 first came into the General Admiralty Rules as Rule 59.
It is the Commission’s contention that Rule 56 is wholly inapplicable to the adjudication of a claim of one co-claimant against another in a limitation proceeding. The rule, it says, refers to libels and the use of the word “claimant” includes only the claimant of the vessel in
It is true that no case of this Court has passed on the question directly. However, examination of the practice of American admiralty courts indicates that cross-libel procedures have been resorted to between co-parties in a limitation concursus at least since The North Star, 106 U. S. 17 (1882). While initially that case was not a limitation proceeding, this Court held that both parties could have obtained a limitation of liability if entitled to it without the necessity of separate suits. In The Manitoba, 122 U. S. 97 (1887), both the libelant and the cross-libelant sought and received the benefit of liability limitation. Thereafter, in The City of Boston, 182 F. 171 (1909), a District Court allowed the filing of cross-claims in the limitation proceeding there begun. It is of interest to note that while there was no express rule at the time permitting such procedure it was granted “following the analogy of admiralty rule 59 [now Rule 56].” It was thought that “the same claim for contribution which . . . might [be recovered] in an independent suit” could properly be adjudicated by a cross-claim although there was no “reported precedent for the allowance of such a claim in limited liability proceedings.” In re Eastern Dredging Co., 182 F. 179, 183 (1909). In 1919 the Second Circuit decided The Adah, 258 F. 377, in which Judge Hough declared that “Whether it was necessary, in absolving the Adah, to fix blame on some one else, is a question we need not decide.” But where the parties enter the limitation proceeding, the court held “It is enough that they did come in, and made parties of themselves. . . . Having become parties, they are bound by the decree entered in the suit wherein they are parties.” Id., at 381. And this was but the echo of
Petitioner points to cases from the Second Circuit in which cross-claims were not permitted.
Petitioner also depends heavily on Department of Highways v. Jahncke Service, Inc., 174 F. 2d 894 (1949), an opinion of the Fifth Circuit. We believe it inapposite also. There Jahncke’s barges tore loose in a windstorm and damaged the Department of Highways’ bridge. Jahncke petitioned for limitation and the Department, after filing its claim and answer, then attempted to implead the Town of Madisonville, the owner of some other barges, which also had struck the bridge. Obviously there was no connection, other than the same wind and water, between Madisonville’s barges which were independently moored and Jahncke’s. Madisonville had filed no claim in Jahncke’s limitation proceeding, the damages arising from a distinctly separate incident.
Petitioner points to the many dire consequences that may flow from exposing claimants to cross-claims. While
Other questions of procedural detail raised by the petitioner we leave to the trial courts. This has been the policy of this Court in the past in admiralty practice.
Affirmed.
The United States had not filed a cross-claim against the Duke for damage to its vessel because, as it alleges, its counsel felt that it had waived recovery of any claim against a vessel of the British Government by virtue of the “Knock for Knock” Agreement, 56 Stat. 1780, E. A. S. 282, Dec. 4, 1942. Subsequently, while the appeal was pending, the British Government advised that it did not consider the Duke as a government vessel. Consequently, following the Court of Appeals decision, the United States filed a cross-claim against the Duke in the proceedings before the District Court.
Rule 56 was adopted as Rule 59 in 1883 as a codification of the decision in The Hudson, 15 F. 162 (1883). The Rule then provided in part:
“In a suit for damage by collision, if the claimant of any vessel*134 proceeded against, or any respondent proceeded against in personam, shall, by petition, on oath, presented before or at the time of answering the libel, or within such further time as the court may allow, and containing suitable allegations showing fault or negligence in any other vessel contributing to the same collision, and the particulars thereof, and that such other vessel or any other party ought to be proceeded against in the same suit for such damage, pray that process be issued against such vessel or party to that end, such process may be issued . . . .” 112 U. S. 743.
The remainder of Rule 59 in its original form is substantially similar to the last two sentences of the present Rule 56.
The present Rule 56 provides:
“In any suit, whether in rem or in personam, the claimant or respondent (as the case may be) shall be entitled to bring in any other vessel or person (individual or corporation) who may be partly or wholly liable either to the libellant or to such claimant or respondent by way of remedy over, contribution or otherwise, growing out of the same matter. This shall be done by petition, on oath, presented before or at the time of answering the libel, or at any later time*135 during the progress of the cause that the court may allow. Such petition shall contain suitable allegations showing such liability, and the particulars thereof, and that such other vessel or person ought to be proceeded against in the same suit for such damage, and shall pray that process be issued against such vessel or person to that end. Thereupon such process shall issue, and if duly served, such suit shall proceed as if such vessel or person had been originally proceeded against; the other parties in the suit shall answer the petition; the claimant of such vessel or such new party shall answer the libel; and such further proceedings shall be had and decree rendered by the court in the suit as to law and justice shall appertain. But every such petitioner shall, upon filing his petition, give a stipulation, with sufficient sureties, or an approved corporate surety, to pay the libellant and to any claimant or any new party brought in by virtue of such process, all such costs, damages, and expenses as shall be awarded against the petitioner by the court on the final decree, whether rendered in the original or appellate court; and any such claimant or new party shall give the same bonds or stipulations which are required in the like eases from parties brought in under process issued on the prayer of a libellant.” 254 U. S. 707.
Rule 50 provides:
“Whenever a cross-libel is filed upon any counterclaim arising out of the same contract or cause of action for which the original libel was filed, and the respondent or claimant in the original suit shall have given security to respond in damages, the respondent in the cross-libel shall give security in the usual amount and form to respond in damages to the claims set forth in said cross-libel, unless the court, for cause shown, shall otherwise direct; and all proceedings on the Original libel shall be stayed until such security be given unless the court otherwise directs.” 254 U. S. 702.
Rule 44 provides:
“In suits in admiralty in all cases not provided for by these rules or by statute, the district courts are to regulate their practice in such a manner as they deem most expedient for the due administration of justice, provided the same are not inconsistent with these rules.” 254 U. S. 698.
Algoma C. & H. B. R. Co. v. Great Lakes Transit Corp., 86 F. 2d 708 (1936); New Jersey Barging Corp. v. T. A. D. Jones & Co., 135 F. Supp. 97 (D. C. S. D. N. Y. 1955); Petition of Texas Co., 81 F. Supp. 758 (D. C. S. D. N. Y. 1948); Poling Bros. No. 5—Tom Wogan, 1937 A. M. C. 1513 (D. C. E. D. N. Y.).
Dissenting Opinion
Opinion of
dissenting,
In terms, Admiralty Rule 56 authorizes cross-claim practice only in libel proceedings. The instant proceeding, however, is not a libel, but a limitation proceeding. I do not pause to examine the arguments marshalled by the Court in favor of cross-claim practice in limitation proceedings, for, in my opinion, if such practice is desirable, it should be introduced by amending the Admiralty Rules, and not by a decision in a particular litigation which was commenced by the original litigants without knowledge on their part or the Admiralty Bar that such a practice obtained in limitation proceedings.
It is inequitable, in the circumstances of this case, to apply to the British Commission a practice first announced today. The contracts of passage between the Commission and its co-claimants were not entered into under American law. The Duke of York was a passenger ferry operating on a fixed schedule between the Hook of Holland and Harwich, England. The 437 passengers aboard at the time of the collision held tickets for trans
“Under English law the amount at which liability may be limited is far lower than in the United States, generally £15 per ton of tonnage. Merchant Shipping Act 1894 (57 & 58 Viet. c. 60) Sec. 503. Furthermore, the English rules of liability are substantially different from those applied in our courts. A carrier under English law may by appropriate contract and notice limit its liability for negligence, and periods of limitation for the assertion of damage or loss are different. See Collision Claims — Difference Between British and U. S. Law, Lloyds List and Shipping Gazette, July 14, 1953.” (Emphasis added.)
And see Adler v. Dickson, [1954] 2 Lloyd’s List L. R. 267 (C. A.). There is at least a substantial prospect that in the American courts these more favorable English rules of liability may not be fully recognized and applied. Congress has said that provisions or limitations exonerating a shipowner from liability for negligence or from liability beyond a stipulated amount are against the public policy of the United States, and shall be null and void and of no effect. See, e. g., R. S. § 4283, as amended, 49 Stat. 1480, 46 U. S. C. § 183 (c); Note, 65 Yale L. J. 553; Moore v. American Scantic Line, 30 F. Supp. 843.
The British Commission could not have been compelled to enter the limitation proceeding, but did so voluntarily. We may reasonably infer that its decision to participate was based upon its understanding of the issues it would be called upon to face. The notice of
“Notice is given that the United States of America has filed a petition pursuant to Title 46, U. S. Code, sections 183-189 and 789, claiming the right to exoneration from or limitation of liability for all claims arising on the voyage of the USNS HAITI VICTORY from New York City to Bremerhaven, Germany, terminating on May 8,1953, at Bremerhaven. All persons having such claims must file them, under oath, as provided in United States Supreme Court Admiralty Rule 52, with the Clerk of this Court, at the United States Court House at Granby Street, Post Office Building, Norfolk, Virginia, and serve on or mail to the petitioner’s proctors . . . at ... a copy on or before October 15, 1953, or be defaulted. Personal attendance is not required. Any claimant desiring to contest the claims of petitioner must file an answer to said petition, as required by Supreme Court Admiralty Rule 53, and serve on or mail to petitioner’s proctors a copy.” (Emphasis added.)
Plainly this notice told the Commission only that if it chose to enter this proceeding it must be prepared to contest the claims of the United States to exoneration from or limitation of liability for claims arising out of the collision. That issue did not in anywise draw in the Commission’s defenses against claims of the Duke of York’s passengers. The Commission therefore had no information to alert it that it might hazard its defenses under its contracts of passage if it entered the proceeding. The Commission thus had no fair opportunity to weigh that factor in reaching the very practical decision whether to enter the American proceeding or to stay out and meet
I would reverse the judgment of the Court of Appeals and direct affirmance of the decree of the District Court.
Reference
- Full Case Name
- BRITISH TRANSPORT COMMISSION v. UNITED STATES Et Al.
- Cited By
- 100 cases
- Status
- Published