Document: 354 U.S. 147 77 S.Ct. 1269 1 L.Ed.2d 1246 LAKE TANKERS CORPORATION, Petitioner,v.Lillian M. HENN, Administratrix. No. 445. Argued May 6, 1957. Decided June 10, Rehearing Denied July 8, See 945, 1421. Mr. Eugene Underwood, New York City, for the petitioner. Frank C. Mason, respondent. Justice CLARK delivered opinion of Court. This admiralty limitation proceeding resulted from a maritime disaster in 1954. The aggregate amount all claims filed and which petitioner could be held liable if found at fault is less than value petitioner's vessels their pending freight. question presented whether respondent, principal claimant, may, under these circumstances, proceed with her action state court, subject to continuing jurisdiction federal court protect right limited liability, determine obligation respond damages loss life husband. We agree disposition District Court as modified by Appeals. 2 Respondent's husband was passenger on pleasure yacht, Blackstone, involved collision Hudson River 1954, tug, Eastern Cities, pushtowing barge, L.T.C. 38. Blackstone capsized respondent's drowned. other 10 persons board yacht were rescued. Respondent, husband's administratrix, brought suit against claiming $500,000 life. She alleged that caused Lake Tankers' negligent operation both its tug barge. Actions four claimants also commenced courts personal injuries Blackstone. 3 Thereafter, Tankers Corporation this United States Southern exoneration or liability. As required statute authorizing proceedings1 approved security. While first bond only $118,542.21, representing interest alone, thereafter covering barge $165,000 filed. Appropriate restraining orders issued enjoining prosecution filing any except proceeding. There no dispute regard adequacy correctness two bonds. 4 After instituted respondent claim $250,000 it same asserted case. survivors, including those who had suits These totaled $9,525. All claimants, have relinquished damage excess amounts set forth respective expressly recovery amounts. has amended further allocating $100,000 remaining $150,000 stipulations agreeing neither increase claims, nor enter into judgment amounts, she waived res judicata relative issue limit liability should passed application then vacated order since total fund exceeded claims. Petition Corp., 137 F.Supp. 311. Appeals Second Circuit affirmed, entering an order, agreed, respect suit, follows: 5 "If claimant obtains $100,000, injunction will permanently collecting such unless rests special verdict between libelant owner respectively. Thus exceeds jury finds solely enjoined excess. If $150,000." Cir., 232 F.2d 573, 577. 6 On rehearing Circuit, sitting en banc, reaffirmed decision. 235 783. granted certiorari pass upon important jurisdictional presented. 352 914, 216, 121. 7 recently considered cases discuss historical background Limited Liability Act, R.S. §§ 4281—4289, amended, 46 U.S.C. 181—196, U.S.C.A. 181 196, In British Transport Commission v. States, 1957, 129, 1103. It there pointed out Act adopted primarily encourage development American merchant shipping. section here contains fundamental provision declares arising sea occasioned without privity knowledge shipowner shall case exceed vessel together freight, § 183, 183. Van Devanter stated unanimous White Island Transportation Co., 1914, 233 346, 351, 34 589, 591, 58 L.Ed. 993, 'The succeedng sections are nature succeeding proceedings made effective. Therefore, they so construed bring them correspondence it.' Among dealing mechanics effecting 184 incidents where 'the whole vessel, freight voyage, not sufficient make compensation each (the claimants).' event, continues, 'they receive proportion losses; purpose' owners 'may take appropriate * *.' (Emphasis added.) provides event petition district within provisions chapter compliance requirements 'all matter cease.' implemented Rule 51 our Admiralty Rules, 28 spells more detail manner 'shall desire benefit *' proceed. is, therefore, crystal clear directed misfortunes losses incurred And, Commission, supra, created pursuant inadequate cover sought protection issues litigated Otherwise purpose i.e., owner's might frustrated. Only may marshalling statutory assets after concurse claimants. situation matters what 'take' individual his payment He can suffer event. 8 hand, paid offending owner, it, necessity maintenance concourse. say concursus available good faith believes inadequate, but contention claims; undisputed fixed; follows indubitably pay full. true initially proceeding, still when dissolved stipulation aggregated thd fund. appeal placed even severe restrictions prosecution, thus insuring beyond doubt fully protected. 9 For us expand prevent now would transform protective instrument offensive weapon deprive suitors common-law rights, known adequate satisfy demands it. shipowner's boundless. one immunity we read privilege language over above granting him fact, Congress procedure primary apportioning among full, reserved remedies. 63 Stat. 101, 1333, 1333.2 view explicit mandate must thwarted attempt employ remedy obtain trial jury. possible effect do control. Langnes Green, 1931, 282 531, 539—540, 243, 246, 75 520. reason why shipowner, conditions, treated favorably airline, bus, railroad company. None force They, too, multiplicity suits. Likewise, long jeopardized, remedies parties actions. said, insulate shipowners merely contended Maryland Casualty Co. Cushing, 347 409, 74 608, 98 806, contrary. case, clash Louisiana's direct statute, LSA—R.S. 22:655, Act. majority concluded clash. far value, any, heart' system therefore refers out, vital limitation. But necessary nonetheless required. 11 conclude heretofore entered suit. 12 Affirmed. 13 WHITTAKER took part consideration decision 14 HARLAN, whom FRANKFURTER BURTON join, dissenting. 15 I result reached Judge Hincks dissenting below, re 579, think reversed. Since properly invoked, permit aborted subsequent actions obtaining transfer courts. At time been several owned petitioner, steps subsequently taken maximum allowed defeat impair full effectiveness reduction permitted diversity invoked. St. Paul Mercury Indemnity Red Cab 303 283, 586, 82 845. 4285, 185, 185. forerunner current gave Courts 'Of civil causes jurisdiction, saving common law competent give 42 634, U.S.C.(1946 ed.) 41(3). re-enacted reads, pertinent part, original exclusive 'Any otherwise entitled.' 1333.

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