Garcia v. Beauregard

• Decision Date: 27 April 1961
• Docket Number: No. 848-60.,848-60.
• Citation: 1961 AMC 2389,193 F. Supp. 662
• Parties: Jose GARCIA, Libelant, v. THE Steamship BEAUREGARD, Respondent.
• Court: U.S. District Court — District of New Jersey

193 F. Supp. 662

1961 AMC 2389

Jose GARCIA, Libelant, v. THE Steamship BEAUREGARD, Respondent.

No. 848-60.

United States District Court D. New Jersey.

April 27, 1961.

Brause & Callaghan, Newark, N. J., and Joseph Dean Edwards, New York City, for libelant; William D. Hand, New York City, of counsel.

Mead, Gleeson, Hansen & Pantages, Newark, N. J., Kirlin, Campbell & Keating, New York City, Joseph M. Cunningham, New York City, of counsel, for claimants.

HARTSHORNE, District Judge.

Libelant, Garcia, brought an action in rem against the S.S. Beauregard for injuries, received on December 23, 1959 while aboard the ship, due to its alleged unseaworthy condition. Beauregard, Inc., thereupon claimed ownership of the vessel, posted a bond and a stipulation of value, and the ship was released to Beauregard, Inc., by the marshal. Beauregard, Inc., now moves to withdraw its claim of ownership and to substitute in lieu thereof the claim of Pan Atlantic Steamship Corporation, the demise charterer of the vessel from March, 1959 to March, 1969.

Pan Atlantic is also the employer of Garcia. Thus, if the substitution were permitted, Pan Atlantic would undoubtedly raise the defense that Garcia's exclusive remedy is under the Longshoremen's and Harbor Workers' Compensation Act, 33 U.S.C.A. § 905. However, the issue before the Court is narrower. Specifically, the issue here is whether the demise charterer, which has complete control and custody of the ship and is therefore considered an owner pro hac vice, has the right at this late stage in the proceedings to substitute itself as claimant rather than the real owner. Libelant objects on the ground that the true owner, having made its appearance and filed the necessary security, received possession of the ship and is bound by its acts.

There is authority for bringing an in rem action against the ship for alleged unseaworthiness. See Crumady v. The Joachim Hendrik Fisser, 358 U.S. 423, 79 S.Ct. 445, 3 L.Ed.2d 413, and Grillea v. United States, 2 Cir., 1956, 232 F.2d 919. Furthermore, in The Two Marys, D.C.S.D.N.Y.1882, 12 F. 152, a lienor who came in originally as claimant and took possession of the ship was held to that election to protect the libelant's security. While the facts in The Two Marys differed, the same principle can be applied in the instant case. Beauregard, Inc., at the inception of the action, elected to come in and claim the ship as the owner and posted a bond. Libelant is entitled not to have such security impaired and he is further entitled to have Beauregard, Inc., remain in the action by virtue of its earlier election. In Reed v. Yaka, D.C.E.D.Pa.1960, 183 F.Supp. 69, Judge Clary kept the real owner in the action after it had appeared as claimant and indicated that such owner was the proper claimant. On the question of the Longshoremen's and Harbor Workers' Compensation Act, Judge Clary indicated that the liability of the ship, and therefore the owner by virtue of its appearance, was separate and distinct from whatever compensation was due the libelant from his employer, who happened to be the charterer. The fact that the charterer would have to indemnify the owner by virtue of a clause in their...