Source: https://caselaw.findlaw.com/us-supreme-court/285/413.html
Timestamp: 2019-04-20 01:29:38+00:00

Document:
[285 U.S. 413, 414] Messrs. D. Roger Englar and Henry J. Bigham, both of New York City, for petitioners.
[285 U.S. 413, 417] Mr. Ray M. Stanley, of Buffalo, N. Y., for respondent.
These three libels in admiralty in personam were brought in the federal court for western New York, by owners of cargo laden on the steamer Yorkton to recover for loss resulting from the sinking of that vessel in a collision with respondent's steamer Mantadoc, in Lake Superior, on the American side of the international boundary line. The respondent moved, in each case, that the District Court exercise its discretion to decline jurisdiction and dismiss the libels on the ground that all the parties were citizens of Canada, and that the controversy concerned 'matters ... properly the subjects of hearing and determination' by the Canadian courts. The motions were granted (49 F.(2d) 802, 804), and the decrees of the District Court were affirmed by the Circuit Court of Appeals for the Second Circuit (51 F.(2d) 1007). This court granted certiorari, 284 U.S. 612 , 52 S. Ct. 131, 76 L. Ed. -.
Shortly after the collision, the Wreck Commissioner of Canada held a formal investigation, as required by law, respecting the circumstances of the collision, and determined that the masters of both vessels were at fault. The respondent then instituted in the admiralty court of Canada a proceeding for the judicial determination of the liability as between the colliding vessels and their owners. [285 U.S. 413, 418] The libelants' motive for invoking the jurisdiction of a court of the United States, instead of that of the Canadian court in which that proceeding was pending, appears in affidavits filed with the exceptions to the libel. Under the Canadian law, it is stated, if both colliding vessels were at fault each vessel would be liable for not more than half of the loss; and the salvaged value of the Yorkton might not suffice to pay its share. See The Milan, Lush. Adm. 401. Under our law the innocent cargo owner can recover full damages from the noncarrying vessel. The New York, 175 U.S. 187, 209 , 210 S., 20 S. Ct. 67.
The libelants concede, as they must, that in a suit in admiralty between foreigners it is ordinarily within the discretion of the District Court to refuse to retain jurisdiction, and that the exercise of its discretion will not be disturbed unless abused. Charter Shipping Co. v. Bowring, Jones & Tidy, Ltd., 281 U.S. 515, 517 , 50 S. Ct. 400. Compare Watts, Watts & Co. v. Unione Austriaca di Navigazione, 248 U.S. 9 , 39 S. Ct. 1, 3 A. L. R. 323; Langnes v. Green, 282 U.S. 531, 544 , 51 S. Ct. 243. They claim, however, that the rule is not applicable here, since the cause of action arose within the territorial limits of the United States; and, moreover, that if the District Court had discretion, the decrees should be reversed because, on the undisputed facts, it was an abuse of discretion to decline jurisdiction. We are of opinion that neither claim is well founded.
The respondent insists that the doctrine of lex loci delicti has no application to cases of collision on the Great Lakes; that the Great Lakes and their connecting channels constitute public navigable waters, irrespective of the location of the international boundary, and possess all the characteristics of the high seas, The Eagle, 8 Wall. 15, 22; United States v. Rodgers, 150 U.S. 249, 256 , 14 S. Ct. 109; Panama R. Co. v. Napier Shipping Co., 166 U.S. 280, 285 , 17 S. Ct. 572; The New York, 175 U.S. 187 , 20 S. Ct. 67; The Robert W. Parsons, 191 U.S. 17, 27 , 24 S. Ct. 8; that in a case of collision on the high seas between two vessels of the same nationality, liability is governed by the law of the flag, The Scotland, 105 U.S. 24, 29 , 30 S.; The Eagle Point (C. C. A.) 142 F. 453, 454; that the Canadian law would apply in the cases at bar; and that hence, the asserted ground for the District Court's retaining jurisdiction fails.
Obviously, the proposition that a court having jurisdiction must exercise it, is not universally true; else the admiralty court could never decline jurisdiction on the ground that the litigation is between foreigners. Nor is it true of courts administering other systems of our law. [285 U.S. 413, 423] Courts of equity and of law also occasionally decline, in the interest of justice, to exercise jurisdiction, where the suit is between aliens or nonresidents, or where for kindred reasons the litigation can more appropriately be conducted in a foreign tribunal. 6 The decisions relied upon by libelants are inapposite for several reasons. They were not in admiralty causes; nor did they involve alien or nonresident parties. Compare Second Employers' Liability Case, 223 U.S. 1, 58 , 59 S., 32 S. Ct. 169, 38 L. R. A. (N. S.) 44, with Douglas v. New York, New Haven & Hartford R. Co., 279 U.S. 377 , 49 S. Ct. 355. The cases of Cohens v. Virginia, 6 Wheat. 264, 404, and McClellan v. Carland, 217 U.S. 268, 281 , 30 S. Ct. 501, denied the right to abdicate to state courts jurisdiction which the Constitution in positive terms intrusts to the federal judiciary.
Second. There is no basis for the contention that the District Court abused its discretion. All the parties were not only foreigners, but were citizens of Canada. Both the colliding vessels were registered under the laws of Canada, and each was owned by a Canadian corporation. The officers and the crew of each vessel-the material witnesses-were citizens and residents of that country, and so would not be available for compulsory attendance in the District Court. The cargo, in each case, was shipped under a Canadian bill of lading from one Canadian port to another. The collision occurred at a point where the inland waters narrowed to a neck, and the District Court concluded that the colliding vessels proceeded [285 U.S. 413, 424] in United States waters unintentionally. If the libelants are entitled to have applied the law of the United States in respect to the liability, the Canadian courts will, it must be assumed, give effect to it. The District Court embodied in the decrees an order that the respondent should appear and file security in any action which might be instituted by the petitioners in the admiralty courts of Canada, so that petitioners would not by dismissal of the libels lose the security gained by the foreign attachment. It is difficult to conceive of a state of facts more clearly justifying the refusal of a District Court to retain jurisdiction in a cause between foreigners.
[ Footnote 1 ] Compare Mason v. The Ship Blaireau, 2 Cranch. 240, 264; Ex parte Newman, 14 Wall. 152, 168, 169; Panama R. Co. v. Napier Shipping Co., 166 U.S. 280, 285 , 17 S. Ct. 572.
[ Footnote 2 ] See note 5, infra. See, also, One Hundred and Ninety-four Shawls, 1 Abb. Adm. 317, 321, Fed. Cas. No. 10,521; The Sailor's Bride, 1 Brown's Adm., 68, 70, Fed. Cas. No. 12,220; The Bee, 1 Ware 336, 339, Fed. Cas. No. 1,219; Muir v. The Brig Brisk, 4 Ben. 252, 254, Fed. Cas. No. 9,901; Thomassen v. Whitwell, 9 Ben. 113, Fed. Cas. No. 13,928; Boult v. Ship Naval Reserve (D. C.) 5 F. 209; The City of Carlisle (D. C.) 39 F. 807, 815, 5 L. R. A. 52; Goldman v. Furness, Withy & Co. (D. C.) 101 F. 467, 469; The Kaiser Wilhelm der Grosse (D. C.) 175 F. 215, 216, 217; The Iquitos (D. C.) 286 F. 383, 384; Danielsen v. Entre Rios Rys. Co. (D. C.) 22 F.(2d) 326, 327; The Canadian Commander (D. C.) 43 F.(2d) 857, 858.
[ Footnote 3 ] Jurisdiction was declined in Willendson v. The Fo rso ket, 1 Pet. Adm. 197, Fed. Cas. No. 17,682; The Infanta, 1 Abb. Adm. 263, 268, 269, Fed. Cas. No. 7,030; The Ada, 2 Ware (Dav. 407) 408, Fed. Cas. No. 38; The Becherdass Ambaidass, 1 Lowell 569, Fed. Cas. No. 1,203; The Montapedia (D. C.) 14 F. 427; The Ucayali (D. C.) 164 F. 897, 900; The Albani (D. C.) 169 F. 220, 222.
In the following cases jurisdiction was taken, but the existence of discretion recognized: Thompson v. The Ship Catharina, 1 Pet. Adm. 104, Fed. Cas. No. 13,949; Weiberg v. The Brig St. Oloff, 2 Pet. Adm. 428, Fed. Cas. No. 17,357; Davis v. Leslie, 1 Abb. Adm. 123, 131, Fed. Cas. No. 3, 639; Bucker v. Klorkgeter, 1 Abb. Adm. 402, 405, 406, Fed. Cas. No. 2,083; The Pawashick, 2 Lowell 142, 151, Fed. Cas. No. 10,851; The Brig Napoleon, Olc. 208, 215, Fed. Cas. No. 10,015; The Bark Lilian M. Vigus, 10 Ben. 385, Fed. Cas. No. 8,346; The Amalia (D. C.) 3 F. 652, 653; The Salomoni (D. C.) 29 F. 534, 537; The Topsy (D. C.) 44 F. 631, 633, 635; The Sirius (D. C.) 47 F. 825, 827; The Karoo (D. C.) 49 F. 651; The Lady Furness (D. C.) 84 F. 679, 680; The Alnwick (D. C.) 132 F. 117, 120; The August Belmont (D. C.) 153 F. 639; The Sonderborg (C. C. A.) 47 F.(2d) 723, 725.
[ Footnote 4 ] Jurisdiction was declined in The Carolina (D. C.) 14 F. 424; Camille v. Couch (D. C.) 40 F. 176; The Walter D. Wallet (D. C.) 66 F. 1011, 1013; The Lamington (D. C.) 87 F. 752, 757; The Knappingsborg (D. C.) 26 F.(2d) 935, 937. See, also, Bolden v. Jensen (D. C.) 70 F. 505, 509. Compare Bernhard v. Creene, 3 Sawy. 230, 234, Fed. Cas. No. 1,349; The Noddleburn (C. C.) 30 F. 142, 143; The Troop (D. C.) 118 F. 769, 772.
[ Footnote 5 ] The only case supporting the position of the petitioners which has been called to our attention is The Apurimac (D. C.) 7 F.(2d) 741, 742, involving an action by a foreign seaman for injuries sustained on a foreign vessel lying in American waters. The expressions of the District Court in this case, however, were disapproved by the Circuit Court of Appeals for the Fourth Circuit, which affirmed the judgment on the ground that jurisdiction, although discretionary, had been properly taken. Heredia v. Davies (C. C. A.) 12 F.(2d) 500, 501.
[ Footnote 6 ] Compare Davis v. Farmers' Co-operative Equity Co., 262 U.S. 312 , 43 S. Ct. 556; Logan v. Bank of Scotland (1906) 1 K. B. 141; Socie te du Gaz de Paris v. Armateurs Francais (1926) Sess. Cas. (H. L.) 13. See, for collections of authorities, Paxton Blair, 'The Doctrine of Forum Non conveniens in Anglo-American Law,' 29 Col. L. Rev. 1; Roger S. Foster, 'Place of Trial in Civil Actions,' 43 Harv. L. Rev. 1217, 'Place of Trial-Interstate Application of Intrastate Methods of Adjustment,' 44 Id. 41; Note, 32 A. L. R. 6.

References: v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v. 
 v.