Continental Grain Co. v. Barge FBL-585
Continental Grain Co. v. Barge FBL-585
Opinion of the Court
delivered the opinion of the Court.
The single issue presented for decision in this case is whether the United States District Court in New Orleans, acting under 28 U. S. C. § 1404 (a), erred in ordering that this action for damages to cargo from alleged unseaworthiness be transferred for trial, “in the interest of justice,” to the United States District Court at Memphis, Tennessee, where the sinking of the barge occurred. The Court of Appeals affirmed the District Court's transfer order. 268 F. 2d 240. We granted certiorari to consider this important question. 361 U. S. 811.
The facts and circumstances on which the District Court transferred this case are these. Barge FBL-585, a respondent here under an ancient admiralty fiction, is owned by Federal Barge Lines, Inc., the other respondent. After the barge was partially loaded by petitioner, Continental Grain Co., with its soybeans at its wharf in Memphis, the barge sank, causing damage both to the barge and to the soybeans. A dispute arose over what caused it to sink. The barge owner, Federal Barge Lines, Inc., brought an action for damages in a Tennessee state court charging that the barge sank because the cargo owner, Continental Grain Co., had been negligent in loading it. The cargo owner later brought this action in the United States District Court in New Orleans against the barge and its owner, in a single complaint, charging that the vessel had sunk because of its defects and unseaworthiness, and claiming damages for injury to the cargo. In the meantime the damage case against the grain company had been removed from the Tennessee state court to the United States District Court at Memphis. While the litigation arising out of this single occurrence was in this posture in the New Orleans and Memphis courts, the barge-owner defendant, at New Orleans, filed a motion and accompanying affidavits under
“For the convenience of parties and witnesses, in the interest of justice, a district court may transfer any civil action to any other district or division where it might have been brought.”
The New Orleans District Court found that the issue in the Memphis case
“that is, the cause of the casualty, is precisely the issue in the case at bar. The convenience of the great majority of witnesses in this case dictates that this case be tried in Memphis. The efficient administration of justice requires that this claim for cargo damage be tried by the same court which is trying the claim for hull damage, both claims being between the same parties, and relate to the same incident.”
These findings were well supported by evidence, were approved by the Court of Appeals, are not challenged here, and we accept them. The case, therefore, if tried in New Orleans, will bring about exactly the kind of mischievous consequences against “the interest of justice” that § 1404 (a) was designed to prevent, that is, unnecessary inconvenience and expense to parties, witnesses, and the public.
The grain company argues that this frustration of the basic purpose of Congress in passing § 1404 (a) is compelled by the language of the section that prevents the transfer of a “civil action” by a District Court to any District Court other than one “where it might have been brought.”- Two weeks ago this Court decided in Hoff
The fiction relied upon has not been without its critics even in the field it was designed to serve. It has been referred to as “archaic,” “an animistic survival. from remote times,” “irrational” and “atavistic.”
This Court has not hesitated in the past to refuse to apply this same admiralty fiction in a way that would cut
“To say that an owner is not liable, but that his vessel is liable, seems to us like talking in riddles. A man’s liability for a demand against him is measured by the amount of the property that may be taken from him to satisfy that demand. In the matter of liability, a man and his property cannot be separated . . . .” The City of Norwich, 118 U. S. 468, 503.
Fifty-seven years later this Court was confronted with a similar argument about another section of the same statute, and after referring to the analysis in City of Norwich concluded,
“The riddle after more than half a century repeated to us in different context does not appear to us to have improved with age. . . . Congress has said that the owner shall not ‘answer for’ this loss in question. Claimant says this means in effect that he shall answer only with his ship. But the owner would never answer for a loss except with his property, since execution against the body was not at any time in legislative contemplation. There could be no practical exoneration of the owner that did not at the same time exempt his property.” Consumers Import Co. v. Kabushiki Kaisha Kawasaki Zosenjo, 320 U. S. 249, 253-254.
We follow the common-sense approach of these two cases in interpreting § 1404 (a). Failure to do so would practically scuttle the forum non conveniens statute so far as admiralty actions are concerned. All a plaintiff would need to do to escape from it entirely would be to
“Admiralty practice, which has served as the origin of much of our modern federal procedure, should not be tied to the mast of legal technicalities it has been the forerunner in eliminating from other federal practices.” British Transport Comm’n v. United States, 354 U. S. 129, 139.
It is relevant that the law of admiralty itself is unconcerned about the technical distinctions between in rem and w personam actions for purposes of transferring admiralty actions from one court to a more convenient forum. This Court’s Admiralty Rule 54, which prescribes the procedures for owners’ limiting their liability after vessels have been libeled, provides in language broader than § 1404 (a): “The District Court may, in its discretion, transfer the proceedings to any district for the convenience of the parties.” And it may be further observed that courts have not felt themselves bound by this fiction when confronted with the argument that because in rem and in personam actions involve different parties, therefore res judicata does not apply from an in personam action against an owner to an in rem action against his ship.
The idea behind § 1404 (a) is that where a “civil action” to vindicate a wrong — however brought in a court — presents issues and requires witnesses that make one District Court more convenient than another, the trial judge can, after findings, transfer the whole action to the more convenient court. That situation exists here. Although the action in New Orleans was technically brought against the barge itself as well as its owner, the obvious fact is that, whatever other advantages may result, this is an alternative way of bringing the owner into court. And although any judgment for the cargo owner will be technically enforceable against the barge as an entity as well as its owner, the practical economic fact of the matter is that the money paid in satisfaction of it will have to come out of the barge owner’s pocket — including the possibility of a levy upon the barge even had the cargo owner not prayed for “personified” in rem relief. The crucial issues about fault and damages suffered were identical, whether considered as a claim against the ship or its owner. The witnesses were identical. Thus, while two methods were invoked to bring the owner into court and enforce any judgment against it, the substance of what had to be done to adjudicate the rights of the parties was not different at all.
For the reasons stated here the judgment is
Affirmed.
whom Mr. Justice Harlan joins.
Although this case also involves some nice questions of admiralty procedure, since the claimant barge owner has moved for transfer and has agreed to “pay any final decree which may be rendered against” the barge, the controlling considerations for me are those set forth in my opinion in Sullivan v. Behimer, 363 U. S. 351. Accordingly, I would affirm the judgment.
“A ship is the most living of inanimate things. Servants sometimes say 'she’ of a clock, but every one gives a gender to vessels. And we need not be surprised, therefore, to find a mode of dealing which has shown such extraordinary vitality in the criminal law applied with even more striking thoroughness in the Admiralty. It is only by supposing the ship to have been treated as if endowed with personality, that the arbitrary seeming peculiarities of the maritime law can be made intelligible, and on that supposition they at once become consistent and logical.” Holmes, The Common Law (1881), 26-27.
The Carlotta, 48 F. 2d 110, 112, 1931 Am. Mar. Cas. 742, 745 (C. A. 2d Cir. 1931), quoted in Gilmore and Black, The Law of Admiralty (1957), 508.
Point Landing, Inc., v. Alabama Dry Dock & Shipbuilding Co., 261 F. 2d 861, 866, 1959 Am. Mar. Cas. 148, 155 (C. A. 5th Cir. 1958).
See Burns Bros. v. Central R. Co., 202 F. 2d 910, 1953 Am. Mar. Cas. 718 (C. A. 2d Cir. 1953); Sullivan v. Nitrate Producers’ S. S. Co., 262 F. 371 (C. A. 2d Cir. 1919); Bailey v. Sundberg, 49 F. 583 (C. A. 2d Cir. 1892); Gilmore and Black, The Law of Admiralty (1957), 507-509.
268 F. 2d 240, 242, n. 2, 1959 A. M. C. 2158, 2160, n. 2.
Dissenting Opinion
with whom Mr. Justice Douglas joins, dissenting.
I think that this case, if its true facts be recognized and faced, is controlled by the Court’s opinion in Hoffman v. Blaski and Sullivan v. Behimer, decided just the other day, 363 U. S. 335. I also think that the Court’s opinion fails to recognize and face the crucial fact — that one of the two claims in this “civil action” was brought in rem against the Barge, not as an attachment or “device” to force appearance of the owner or to provide security for the payment of any in personam judgment which might be recovered against the owner, but as a personified “debtor or offending thing” as the settled law author
On July 2, 1958, petitioner, Continental Grain Company,
After Federal Barge Lines, Inc., was served with process, and after process had issued against the Barge but before actual arrest of the Barge thereunder, Federal Barge
“It is the intent of this undertaking that the rights of the libelant and claimant-respondent in this proceeding shall be, and for all purposes shall be taken to be, precisely the same as they would have been had the vessel, in fact, been taken into custody by the United States Marshal under said in rem process, and released by the filing of claim and release bond, w;e, as claimant, reserving in behalf of the vessel all other objections and defenses otherwise available except those which might be predicated upon the fact that the vessel was not actually so seized.”
Accordingly, on July 29, 1958, Federal Barge Lines, Inc., filed its claim to “Barge FBL-585, proceeded against herein, and claim [ed] the said barge as owner and pray[ed] that it be permitted to defend according to law”; and on September 18, 1958, it filed its answer to the libel.
On October 13, 1958, Federal Barge Lines, Inc., filed its motion to transfer “this action to the United States District Court for the Western District of Tennessee, Western Division, on the ground that such transfer is
Petitioner then sought and was allowed an appeal by the Court of Appeals under 28 U. S. C. § 1292 (b).
Although the Court of Appeals found “that fair application of the letter undertaking . . . requires that we treat it as though, upon the libel being filed, the vessel had actually been seized, a Claim filed, a stipulation to abide decree with sureties executed and filed by Claimant, and the vessel formally released,” it held that, inasmuch as the claimant-respondent had by its motion to transfer consented “to an unlimited submission of the cause [to the Tennessee District Court] even though it could not have been filed there initially,” transfer of the in rem action to that court “presents no real or conceptual difficulties,” because “[t]he Court does not undertake to transfer the res, nor does it even attempt to transfer the cause while the res is still in custody of the Court”; that when, as here, a “bond (stipulation)” is given and substituted for the vessel “[traditional notions are not affected if that security floats with the cause wherever the law navigates it.” Id., at 243, 244.
It is not disputed that the libel, insofar as it is in per-sonam, might have been brought by petitioner against respondent, Federal Barge Lines, Inc., in the United States District Court for the Western District of Tennessee, as that court had jurisdiction to entertain such an action and Federal Barge Lines, Inc., was amenable to the service of monition there. Hence, if this libel had been brought only in personam against Federal Barge Lines, Inc. — i. e., had omitted the claim in rem against the Barge — it could have been transferred to the Tennessee District, for such an action could have been brought in that forum. But, as the parties agree, petitioner had a legal right to join in one action, as it did here, a claim in personam against Federal Barge Lines, Inc., and one
The Court treats this case as a “single” damage action against only the barge owner. That treatment simply ignores the crucial fact which gives rise to the question we have here. Of course, if this were simply a “single” action for damages against only the barge owner we would not have the question that confronts us, for we all agree that such an action “might have been brought” in the Memphis forum, and, hence, if brought elsewhere it could have been transferred to that forum under § 1404 (a). But those are not the facts. The facts are that there were two claims in this “civil action,” one in personam against the owner, and one in rem against the Barge. And we cannot decide the question presented by denying its existence or by ignoring the facts that created it. One of the two claims of this “civil action” was in rem against the Barge. The Barge was in New Orleans when this suit was brought. Therefore, this “civil action” could not
Petitioner, relying on the established principle that an action in rem may be brought only in the district where the res is located,
Respondents next contend that even if § 1404 (a) applies to the transfer of admiralty actions, that section does not preclude transfer of an admiralty action in rem to a district where the res is not located if the claimant-respondent, after having prevented the arrest or procured the release of the res by giving bond or other acceptable security, so moves and agrees to submit to the jurisdic
But admiralty proceedings in rem are not a mere security device. From its earliest history to the present time,
“Actions in personam with a concurrent attachment to afford security for the payment of a personal judgment are in a different category. The Belfast, supra; Taylor v. Carryl, 20 How. 583, 598, 599; The Robert W. Parsons, supra. And this is so not only in the case of an attachment against the property of the defendant generally, but also where it runs specifically against the vessel under a state statute providing-for a lien, if it be found that the attachment was auxiliary to the remedy in personam. Leon v. Galceran, 11 Wall. 185; see also Johnson v. Chicago &c. Elevator Co., 119 U. S. 388, 398, 399; Knapp, Stout & Co. v. McCaffrey, 177 U. S. 638, 646, 648.” Id., at 307.
The cases cited by the Court,
The Barge itself being the “offending thing,” and here being itself subject to suit, and having been sued, in rem, we think it may not be said that the giving by respondent, Federal Barge Lines, Inc., and the acceptance by petitioner, of the “letter undertaking,” to prevent the physical arrest of the Barge, converted the in rem action into one in personam. That letter expressly said that the rights of the parties would for all purposes be “precisely the same as they would have been had the vessel, in fact, been taken into custody by the United States Marshal under said in rem process, and released by the filing of claim and release bond . . . .” That this letter was legally effective in accordance with its terms is not disputed. This Court has from an early day consistently held that a bond, given to prevent the arrest or to procure the release of a vessel, is substituted for and stands as the vessel in the custody of the court.
Respondents finally argue that even though the Barge itself could be and was sued as the “offending thing” and, being located in the district of suit, this action in rem against it could not have been brought elsewhere without respondent's consent, it was as possible for the Barge voluntarily to enter appearance in and submit to the venue and jurisdiction of the transferee court as it would have been for one sued in personam to do so,
See note 15, infra.
Petitioner, Continental Grain Company, is a Delaware corporation maintaining its principal office in New York, New York, but is also authorized to do and is doing business in the City of Memphis in the Western District of Tennessee.
Federal Barge Lines, Inc., a Delaware corporation, is a common carrier by water, operating on the Mississippi River and its principal tributaries, and has offices and does business in, among other places, Memphis, Tennessee, and New Orleans, Louisiana.
The principal averments of the affidavit referred to were (1) that on June 27, 1958, Federal Barge Lines, Inc., filed an action at law against petitioner, Continental Grain Company, in the Circuit Court’ of Shelby County, Tennessee, for damages to its Barge FBL-585, caused by the alleged negligence of the grain company in loading it at Memphis on November 6, 1957, which action was removed by the grain company to the United States District Court for the Western District of Tennessee on July 15, 1958, and (2) that the necessary witnesses reside in or nearer to Memphis than to New Orleans.
In his unpublished per curiam the district judge said, inter alia, “The libel is in rem as to the Barge FBL-585. While this libel could have been originally brought in the Western District of Tennessee against the respondent, Federal Barge Lines, the owner of the barge, the libel as to the barge itself would ordinarily be restricted to the place where the barge is located at the time the libel is filed. At that time, and now, the barge is located in this district. However, since the barge was neither seized by the Marshal nor bonded by respondent, libellant having accepted respondent’s letter undertaking to respond to any decree entered herein, and since the owner thereof, Federal Barge Lines, apparently is financially able to respond to any decree rendered against it, the interest of justice would best be served by . . . transferring this case to the Western District of Tennessee.”
The District Court stayed its order of transfer, pending determination of the appeal.
Newell v. Norton, 3 Wall. 257; In re Fassett, 142 U. S. 479, 484 (“The District Court has jurisdiction to determine the question, because it has jurisdiction of the vessel by attachment, and of Fassett by monition . . . .”); The Resolute, 168 U. S. 437, 442; Turner v. United States, 27 F. 2d 134, 136 (C. A. 2d Cir.).
The Ann, 9 Cranch 289, 291; Miller v. United States, 11 Wall. 268, 294; United States v. Mack, 295 U. S. 480, 484; Clinton Foods v. United States, 188 F. 2d 289, 292 (C. A. 4th Cir.); Fettig Canning Co. v. Steckler, 188 F. 2d 715, 717-718 (C. A. 7th Cir.). Cf. Torres v. Walsh, 221 F. 2d 319, 321 (C. A. 2d Cir.); Broussard v. The Jersbek, 140 F. Supp. 851, 852-853.
Notwithstanding the provision of Admiralty Rule 22 (28 U. S. C. p. 5226) that if the libel be in rem it shall state “that the property is within the district,” we are told that in practice the common, if not universal, jurisdictional statement in libels in rem recites “That the vessel now is, or, during the pendency of process herein, will be, within the District and the jurisdiction of the Court.” See Internatio-Rotterdam, Inc., v. Thomsen, 218 F. 2d 514, 515-516 (C. A. 4th Cir.)— in some other aspects an anomalous opinion.
“§ 1404. Change of venue.
“(a) For the convenience of parties and witnesses, in the interest of justice, a district court may transfer any civil action to any other district or division where it might have been brought.”
Rule 44. “Right of Trial Courts To Make Rules of Practice
“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.”
Torres v. Walsh, 221 F. 2d 319, 321 (C. A. 2d Cir.); Internatio-Rotterdam, Inc., v. Thomsen, 218 F. 2d 514, 515 (C. A. 4th Cir.), and see Ex parte Collett, 337 U. S. 55, 58; United States v. National City Lines, Inc., 337 U. S. 78.
Respondents say in their brief:
“A transfer on motion of a claimant and a transfer on motion of a libellant are two different things. We do not here contend, and it is our submission that it would be error for a Court to hold, that a coercive transfer of a claimant to a different jurisdiction than that in which the suit was filed is proper. The concept of transferee jurisdiction is that there must be two available forums, and unless the moving party is the claimant, there is no secondary or transferee forum to which the case could be transferred.”
Nothing in § 1404 (a), or in its legislative history, suggests such a unilateral objective and we should not, under the guise of interpretation, ascribe to Congress any such discriminatory purpose. See Hoffman v. Blaski, 363 U. S. 335, 344.
The Mary, 9 Cranch 126, 144; The Moses Taylor, 4 Wall. 411; The Belfast, 7 Wall. 624; The Glide, 167 U. S. 606; The Robert W. Parsons, 191 U. S. 17; Rounds v. Cloverport Foundry, 237 U. S. 303, 306-307.
“A ship is the most living of inanimate things. Servants sometimes say ‘she’ of a clock, but every one gives a gender to vessels. And we need not be surprised, therefore, to find a mode of dealing which has shown such extraordinary vitality in the criminal law applied with even more striking thoroughness in the Admiralty. It is only by supposing the ship to have been treated as if endowed with personality, that the arbitrary seeming peculiarities of the maritime law can be made intelligible, and on that supposition they at once become consistent and logical.” Holmes, The Common Law (1881), 26-27.
“Such personification of the vessel, treating it as a juristic person whose acts and omissions, although brought about by her personnel, are personal acts of the ship for which, as a juristic person, she is legally responsible, has long been recognized by this Court.” Canadian Aviator, Ltd., v. United States, 324 U. S. 215, 224.
The Barnstable, 181 U. S. 464. The “settled rule is that where the ship-owner provides the vessel only, and the master and crew are selected by the charterer, the latter and not the ship-owner is responsible for their acts.” The China, 7 Wall. 53, 70.
“The maritime ‘privilege’ or lien . . . accompanies the property into the hands of a bona fide purchaser.” Vandewater v. Mills, 19 How. 82, 89. See also The China, 7 Wall. 53, 68; The John G. Stevens, 170 U. S. 113.
The China, 7 Wall. 53; Homer Ramsdell Transp. Co. v. La Compagnie Générale Transatlantique, 182 U. S. 406.
The City of Norwich, 118 U. S. 468, 503; Consumers Import Co. v. Kabushiki Kaisha Kawasaki Zosenjo, 320 U. S. 249, 253-254.
The Palmyra, 12 Wheat. 1, 10; The Webb, 14 Wall. 406, 418; The Wanata, 95 U. S. 600, 611; United States v. Ames, 99 U. S. 35. In Judge Woolsey’s very perceptive opinion in J. K. Welding Co. v. Gotham Marine Corp., 47 F. 2d 332, 335 (D. C. S. D. N. Y.), the rule was summarized as follows:
“The stipulation for value is a complete substitute for the res, and the stipulation for value alone is sufficient to give jurisdiction to a court because its legal effect is the same as the presence of the res in the court’s custody.” See also Gilmore and Black, The Law of Admiralty, at 650-651.
See J. K. Welding Co. v. Gotham Marine Corp., 47 F. 2d 332, 335 (D. C. S. D. N. Y.).
Reference
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- CONTINENTAL GRAIN CO. v. BARGE FBL-585 Et Al.
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