The daily morning journal and courier., 1906-12-18

| ~NNJJ NAtNFO Jul lpdAGklOlI OL LIlG dCLlOIlf
 (although I have heard from law stu
 dents that they have been taught tha
 such actions could not be tried in {
 common law court) and these cases
 will probably be tried before a jury an( l the owner of the vessel in many in,
 stances, be required to pay more thar
 the value of his vessel. No doubt eve.
 " one of these cases could be removed
 to the United States District court anG
 the case tried in Admiralty before ar l Admiralty judge where the owner of the
 vessel could get more perfect justice.
 To illustrate the great benefit and
 importance of the limited liability act
 to a vessel owner, will suppose a case
 under each statute.
 Under section 42S2. Suppose a small
 steamer worth $10,0O0, carrying passen-
 gers and freight, while entering New
 Haven harbor, should take fire from an
 overheated boiler and destroy cargo, | lnjure some passengers and kill others. Suits are brought for several times her value. The fire burned the steamer to the waters edge and her hull became
 practically useless so that her value was reduced to but few dollars. Sup | pose that service could be obtained | upon the owner in the states of New
 York, New Jersey and Connecticut and
 suits were brought against him for loss
 or cargo, injury to passengers and for
 loss of life, and suppose that some of
 these suits were brought in state courts
 In these states and some in the United
 States courts Suppose that the suits
 which were brought aggregated from
 hfty to sixty thousand dollars. The owner of the steamer in such a case
 should file libel and petition to limit
 hls liability to the value of the wreck right after the accident. Of course, if there were any other paraphernalia be- longing to the vessel like a yawl boat,
 that should be surrendered also. Upon filing the libel and petition, the owner should either file stipulation for value if he desires to keep the wreck, or if not, ask that it be Surrendered to a trustee to sell, and in the h- bel and petition an njunc- tion should be asked for, which. upon being signed by the district judge. all the various suits which have been brought in the different jurisdictions, whether in the state courts or in the United States courts, would be at once stayed and all the various people who have brought suits would be brought into this one suit where they would have to answer the libel and petition and file their claims. Then the case would be tried, and unless the various claimants show under this statute that the fire from this overheated boiler was caused by the owners design or neg lect," their suits must fail and the owners libel and petition would not only be sustained, but he would be re- lieved from all liability and the pro- ceeds from the sale of the wreck, after paying the court expenses, would be paid to him; for in the petition to limit liability the owner does not concede that the various litigants are entitled to anything, but does, on the other hand, deny any liability just as he might had he tried each separate case in the forum in which it was brought.
 Under the other statute. 42S3, I will suppose that a small excursion steamer takes an excursion out from New Ha- ven to some point in the sound. Upon returning she has collision with a l schooner, which collision iniures seve- ral passengers and seriously damages the schooner, and that libel is filed by the schooner for her injuries, in Ad- in the United States District court and that the passengers bring suit in the state courts Suppose that the steamer were worth five thousand dollars, that the libel of the schooner alleges damages for six thousand dol lars and that the actions brought by the different passengers were for ten thousand dollars more. A petition to limit the liability of the owner should be filed in the United States District court, and suppose the steamer were not seriously damaged and the owner wanted to keep her. A stipulation for her value should be filed and an in junction asked for as in the other case. This would stay all the suits both in and at common law, and even if the court should find that the steamer were guilty of improper navi- i gation and liable, the claimants could not get more than the value of the steamer which would have to be dis tributed pro rata among them unless the court found that the accident was not without the privity or knowledge 1f the owner If the court should so determine, it would dismiss the petition Q limit liability and the various cases which had been stayed would then pro- 'eed in the different courts in which hey had been brought.
 It will be noticed from the two sup losed cases that there is a distinction 'etween the two statutes in that in the ase Of design or neglect under the tatute in regard to fire, unless ibe Wner is shown to be guilty of design T neglect it is an absolute limitation,