Document: 336 U.S. 386 69 S.Ct. 622 93 L.Ed. 754 BLACK DIAMOND S. CORPORATIONv.ROBERT STEWART & SONS, Limited, et al. UNITED STATES v. ROBERT Nos. 121 and 130. Argued Jan. 3, 4, 1949. Decided March 14, Judgment Amended June 13, See 1490. Mr. John W. Crandall, of New York City, for Black Diamond corp. Philip Elman, Washington, D.C., the United States. [Argument Counsel from page 387 intentionally omitted] G. Symmers, respondents. Justice FRANKFURTER delivered opinion Court. 1 We brought these cases here because they call determination important issues in administration admiralty law. 335 809, 40. They bring review a decree Court Appeals Second Circuit affirming dismissal petition limited liability States District Eastern by States, as owner Steamship Corporation bareboat charterer Norwalk Victory. 167 F.2d 308. 2 The facts controlling our decision are riefly these. On April 28, 1947, Victory, while proceeding down Schelde River territorial waters Belgium, collided with British steamer Merganser. Merganser sank all her cargo; chief steward was killed; backing away Victory struck damaged bank Schelde. Soon after collision owners suit against High England claiming damages amount $1,000,000. That is only which has been abroad. October cargo lost sinking York; aggregate claims thus far filed total nearly 3 In their limitation liability, under R.S. § 4285, amended, 49 Stat. 1480, 46 U.S.C. s 185, U.S.C.A. 185,1 allege possibility that addition to suits York, there may be courts other owners, personal representative Merganser's steward, Belgian Government cost removing wreck river. These claims, say, would exceed value about But petitioners, despite provisions 4283, 1479, 183, 183,2 do not recognize ship limit liability. insist, rather, International Convention Unification Certain Rules relating Limitation Liability Owners Seagoing Vessels, signed at Brussels on August 25, 1924.3 ratified Belgium 2, 1930, took effect 1931; it alleged, therefore, have part law time this waters. basis Convention, petitioners assert maximum $325,028.79. 4 Accordingly, accompanied its bond standing upon 28 2408, 2408,4 Suits Admiralty Act, 41 526, 743, 743,5 no bond. Court, holding privilege limiting relates 'not substantive rights giving rise but remedy, governed forum,' dismissed ground had complied 4285 filing (which separately represented stage proceeding) considered. 5 Upon appeal, were found 'a dilemma cannot escape.' Cir., 309. Reading alleging attached claimants' right recover, treating allegation proved purposes determining sufficiency petition, accepted arguendo sum $325,000 'the (petitioners') liabilities.' Id. though looked lex loci delicti next step taken assumption conditions praying injunction proceedings forum concursus matte procedure fori. It condition imposed fori, court's reasoning continued, available shipowner unless known probable him greater than his ship. As establishing proposition, court cited Aquitania, 20 457; Curtis Bay Towing Co. Tug Kevin Moran, Inc., 159 273; George Fields, D.C.S.D.N.Y., 237 F. 403. And held applicable less 6 lower unnecessary pass finally question whether fact because, if not, impaled horn dilemma: rather applied, vessel. Since procedural forum, moreover, requires posting potential since proposed third amount, hypothesis also disentitled proceed. accordingly affirmed petition. 7 If Appeals' reliance supra, was, we convinced, circumstances misplaced, escape without wanting respect wisdom most experienced courts. Those cases, true, hold where can ship, will lie. relevant those assumed applicable, owner's each case fraction limit, fund satisfaction more ample. There reason, permitting invoke concursus. where, here, exceeds satisfaction, measured or exists just such situation designed meet. 8 'Unless some kind adopted should parties interested into one litigation, claimants concourse pro rata distribution common fund, manifest benefits act could never realized. Cases might occur, shipowners avail themselves benefits, way defense alone, both freight totally lost, so relieved whatever. even case, absence remedy obtain exemption claimants, liable diversity suits, brought, perhaps, different states, long periods time, when witnesses dispersed, issuing contrary results before tribunals; ordinary extent exists, an damages, require distribution, prosecution separate allowed proceed, result subversion whole object scheme statute.' Providence N.Y.S.S. Hill Mfg. Co., 109 578, 594—595, 379, 389, 390, 27 1038. 9 Indeed, recoverable fixed law, need issuance motion Rule 51, U.S.C.A., obviously higher own Thus horns petitioners' disappears; must, accordingly, reverse judgment below remand further proceedings. 10 going back, necessary confront dilemma. branch reasoning, too small attention apparently directed status Government, which, plain import 2408,6 743,7 relieves duty post order entitled proceed 4285. perhaps well add, passing, that, view six-month limitation8 statute, give opportunity file larger better course, defect jurisdictional, affirmance Langnes Green, 282 531, 541—542, 51 243, 247, 75 520; Inc. 273, 276; cf. Bigler Waller, 12 Wall. 142, 149, 260; Davis Wakelee, 156 680, 15 555, 39 578. add observation circumstances, depriving altogether proceeding, matter what willing post. threw them back dubious advantage partial successive recoveries, it. affirm judgment. 11 Having decided must remanded improperly dismissed, turn any enforceable point agree Appeals—and disagree Court—that if, indeed, attaches right, then nothing Titanic, 233 718, 34 754, 58 1171, stands observing limitation. dealing already exist grounds.' Id., 733, 756. wrong creates recognized 1924, cannot, more, regard statutes expanding recover. Any conclusion disregard settled principle overriding domestic policy translated recover tort depends place occurred. Smith Condry, How. 33, 35; Slater Mexican National R. 194 120, 24 581, 48 900; Cuba Crosby, 222 473, 32 132, 56 274, 38 L.R.A., N.S., 40; Western Union Telegraph Brown, 234 542, 955, 1457. If, hand, merely provides machinery claim otherwise created scaled proportionate share equally foreign rules procedure. Pritchard Norton, 106 124, 102, 104; Mills, 451, 692, 1067. leave open choice between opposing hypotheses. Nor mean imply clear-cut alternatives exhaustive. A limi individual's recovery arising given said 'attached right' special sense phrase, rule operates cut claimant fitted within very broad definition term 'procedure.' Whether considerations deserve application significant higher—these questions now us exceptions 13 courts, having pleaded, established. true several occasions international passed 'general maritime law' subject judicial notice. Scotia, 14 170, 822; Belgenland, 114 355, 370, 860, 867, 29 152; Richelieu Ontario Nav. Boston Marine Ins. 136 408, 422, 934, 937, 398; 175 187, 67, 44 126. widely involved, adhered general fact. Liverpool Steam Phenix 129 397, 469, 788; see Talbot Seeman, Cranch 1, 38, 15; 188, 822. decisions federal Benedict 11, n. 36 (6th ed., Knauth, 1940). Although doubt free notice terms itself set forth among allegations legal significance does appear surface. 'Many doubts left unresolved documents us.' 130, 584, 900. Respondents, effort show lays purely 'procedural' requirements, rely 'personal consultations three active lawyers Antwerp' record us. 'Substance' 'procedure,' concepts invariant content, Guaranty Trust 326 99, 109, 65 1464, 1469, 89 2079, 160 A.L.R. 1231, precluded choosing categories other. governs determined advance proof individual claims. ipso facto recovery, like vessel freight, affecting magnitude res sought. question, lies threshold all, disposed any. One last remains considered—the required No. 121. literal reading requirements compel equal interest freight,' instance think provision, legislative scheme, read light obvious words 'amount owner' carried over solely identical language 4283 laying shall * exceed.' tenor 4285—the option depositing cash 'approved security,' discretion granted additional deposits 'necessary carry out section 4283,' alternative transferring trustee—is concern protecting assets ultimately come. 16 therefore govern purpose served, concerned, demanding security excess limit. presents knotty problem, overlook contingencies appellate review. find controlling, might, interpretation exact $325,000. however, prevail, requisite provide contingency requiring demands it, exercise power preserve quo pending appeal. Scripps-Howard Radio, Federal Communications Comm., 316 9—10, 62 875, 879 880, 86 1229. 17 So, inconsistent opinion, 18 Reversed remanded. 19 JACKSON, dissenting. I suspect cause confusion practical Act Congress governing admiralty. 21 encourage American capital risk shipping ventures 'ships boards, sailors men; peril waters, winds rocks.' disaster sea jeopardize shipowner's assets, 'value vessel, pending.' 183.1 This serves much same corporate fiction landsman's enterprises. 22 statute skeleton filled rules, affirmatively effecting catastrophe threatens freight. To landlocked mind analogy voluntary bankruptcy. is, effect, turn-over satisfy creditors. may, petitioning either transfer trustee together enough make up limitation, quit responsibility, he keep sail on, provided deposit approved therefor.' 185. 23 Our clear: fixes plus sets minimum figure. rewrite sections. written, two sections provisional let go whil creditors secured she custody pay admiralty, amended 21, 1948, prescribe practice applying takes initiative conducted stages. first preliminary petitions relief surrender stipulate, adequate bond, value. says, 'Upon compliance cease.' At change nature occurs. 25 continues rem res. petitioner complies issue monition persons asserting 51. adjudicates apportions them. 52. liberty contest 'provided complied' above forth. 53. 26 precedent obtaining adjudicate did nor required, properly refused enter second adjudicating proceeding. holds instead vessel's measure adequate. While prescribed particular so, uncertainty final seems authorize applied place, latter determined. unaware usages world ship-owners' bases ascertainment existed. Some systems admitted owner, confining itself; others responsibility abandonment Still payment computed ship's tonnage. Congress, deliberately based actual authority releasing steps consideration, until fully protect reason comply provision aver Schelde, occurred, drastic one-third release invocation concursus, basis. reach interpose defense. fact—what law? thereby. except subsidiary fixing matters fact, substance heard later stages 30 figure established preliminarily, represents res, formula owner. bearing proved-until proportion know, purpose, applies. intended statutory defense, asserted trial merits Benefactor, 103 239, 351. 55, 51—54 regulating made Courts Appeals. 31 unique system members singularly deficient experience. country. ultimate practice, consequences foreseen. least stage, minor exception. Of noted exempt security, oversight hardly needed come correct. prescribed. 33 Except detail, affirm. amend asked insisting thought compliance. too, below. 35 REED DOUGLAS join opinion. RUTLEDGE, 37 JACKSON gave conditioned privilege, alternative, turning benefit equivalent value, meant exactly wrote concerning given. Nothing statute's wording, history justify rewriting freight,'1 wording possibly means certainly determined.' appealing argument put forward support distortion wholly specious plea resulting 'injustice' revision made. founded possible comes deciding question. 40 Petitioners' existence case. involved Mo eover, 1924,2 claimed This, prescribes argued, remedy. Cf. L.R.A.,N.S., Banana Fruit 213 347, 511, 53 826, Ann.Cas. 1047. Hence, urged satisfied Rev.Stat. deposited $325,000, $1,000,000, requires. grounded say substantively times said, forcing premiums discharge liabilities, argued contemplated notwithstanding clear unambiguous language. 42 Even command unequivocal: Turn price concerned liabilities. affording chance allowing precise specified. unrelated liabilities aggregate, statute.3 43 regardless mode chosen shown themselves. equivalents. intent permit elects substitutes turns Correlatively intention advantageous substituting money function correlate seldom determination. mode's continue business use, substituted lesser sum, quite enacted shipowners' encouragement industry, enabling doing thereby cutting unmindful latter. For satisfying unrestricted unlimited equivalent. subordinate feature heart and, my create uniform prescribed, payment, assuming pleading fund. 45 brings injustice whatever imagined one, full $1,000,000 terms. determined, probably extended concluded. Meanwhile, remain uncertain, during litigation date, respondent's prevail. words, likely eventually according ours. Court's casting grave theory state affairs actually asking gamble them, respondent computation right. risk, policy, way. Likewise, Diamond. reducing equivalent, take specified turned benefit, bear loss elected substitute approval, smaller running. 47 event event, valid take, certain apply due Petitioner provision; or, fit tocarry amended,4 cast burden Diamond's solvency period complete risk. Its exchange security. contingent supplied future. present exchange, immediately effective, immunity beyond exacted relieve allow given, o vitiates command. assure substance. seeks shift outcome adjudication concurrently stand control adjudicated. paying price. allowed, fall 50 No obtained amount. express problem considered 457, 273.5 statute. Strictly novel, instituting another passed, accordance serve objects dismissing cause, promptly requirement. secure appeal force 'Sec. six months written claim, district competent jurisdiction chapter, (a) court, therefor, sums, tax (b) transfer, appointed fix amended. 4283. foreign, embezzlement, loss, destruction person property, goods, merchandise shipped board damage, injury collision, act, matter, thing, forfeiture, done, occasioned, incurred, privity knowledge subsection section, pertinent parts p blished Dept. State Treaty Information Bull, 20, p. (1931), are: 'Article 'The seagoing accessories of— '1. Compensation damage caused, land water, acts faults master, crew, pilot, service vessel; '5. obligation remove sunken obligations connected therewith; 'Provided regards mentioned 5, referred preceding pounds sterling per ton article including passage money, deemed, respects vessels every description, lump events cent commencement voyage. 'Where death bodily caused captain, pilot victims representatives exceeding articles who owning principal heads enumerated thie convention him. 'For convention, 'tonnage' calculated follows: 'In steamers mechanically propelled vessels, net tonnage, deducted gross tonnage account engine-room space ascertaining *' '§ 2408. Security 'Security costs department agency thereof party acting direction process institution 743. Procedure libel personam '* Neither corporation stipulation hereunder.' footnote ante. text quoted note majority Relating 1924. infra 5. creditor's acceptable substituted, authorizes 'in of' Holding,

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