Iroquois Transportation Company v. Ed Laney Forge Iron Company No 218 Iroquois Transportation Company v. George Edwards No 219

• Decision Date: 08 April 1907
• Docket Number: Nos. 218,219,s. 218
• Parties: IROQUOIS TRANSPORTATION COMPANY, Claimant of the Steamer 'Winnebago,' etc., Plff. in Err., v. ED LANEY FORGE & IRON COMPANY. NO 218. IROQUOIS TRANSPORTATION COMPANY, Claimant of the Steamer 'Winnebago,' etc., Plff. in Err., v. GEORGE W. EDWARDS, Frank W. Eddy, and George W. Edwards, Executor of the Estate of H. D. Edwards, Deceased, Copartners as H. D. Edwards & Company. NO 219
• Court: U.S. Supreme Court

205 U.S. 354

27 S.Ct. 509

51 L.Ed. 836

IROQUOIS TRANSPORTATION COMPANY, Claimant of the Steamer 'Winnebago,' etc., Plff. in Err.,

v ED LANEY FORGE & IRON COMPANY.

NO 218.

IROQUOIS TRANSPORTATION COMPANY, Claimant of the

Steamer 'Winnebago,' etc., Plff. in Err.,

v. GEORGE W. EDWARDS, Frank W. Eddy, and George W.

Edwards, Executor of the Estate of H. D. Edwards,

Deceased, Copartners as H. D. Edwards & Company.

NO 219.

Nos. 218, 219.

Argued February 28, 1907.

Decided April 8, 1907.

These cases may be considered together. They are writs of error to the judgments of the supreme court of Michigan affirming the decrees of the circuit court of Wayne county, Michigan, enforcing liens for the De Laney Forge & Iron Company, defendant in error, in 218, and George W. Edwards and others, defendants in error in 219, and interveners in the original case.

The Winnebago, a steel steamer of 1,091 tons burden, was built by the Columbia Iron Works, at St. Clair, Michigan. The contract price was $95,000; date of contract, March 8, 1902; between the Columbia Iron Works and John J. Boland and Thomas J. Prindeville. It was understood that these persons should organize a corporation to be known as the Iroquois Transportation Company. The contract price was to be paid, $31,000 in cash, from time to time; for the balance the transportation company was to execute its notes to the amount of $16,000, to issue bonds for $48,000, to be secured by mortgage upon its property. On April 5, 1902, Boland and Prindeville assigned the contract to the Iroquois Transportation Company. Payments were made on the contract as follows: $7,500, at date of signing contract; 7,500, April 3, 1902; 4,000, April 14, 1902; 4,000, June 15, 1902; 4,000, July 15, 1902.

An additional $4,000 was paid on October 3, 1902, and two negotiable notes of $4,000 given, maturing respectively November 1, 1903, and November 1, 1904.

The steamer was launched March 21, 1903. After she was in the water the work on the contract continued. On July 18, 1903, she was inspected, measured, enrolled, and licensed to be employed in domestic and foreign trade. This license was issued in the name of the Columbia Iron Works as owner.

On July 19, 1903, the Iroquois Transportation Company received a bill of sale of the steamer and delivered to the Columbia Iron Works ninety-six negotiable bonds of $500 each, secured by mortgage on the steamer, and paid the balance of the purchase money, which was to be paid in cash, then amounting between $400 and $500.

The agreement recited that possession was given to the Iroquois Transportation Company for the purpose of completing and finishing up those things still remaining undone on the steamer and required to be done by the iron works by the terms of the contract for the construction of the steamer, 'it being the sole intent and purpose of this agreement to enable the Iroquois Transportation Company to obtain immediate possession of the steamer, and without intending either to limit the extent of the obligation of said Columbia Iron Works under the original specifications.'

The steamer left St. Clair for Lorain, Ohio, July 19, 1903. At that time she was not completed, and workmen remained on her and went with her to St. Clair, where additional work was done upon her. She was afterwards engaged in carrying cargoes between points on Lake Erie and Lake Superior.

On July 30, 1903, the Columbia Iron Works made an assignment for the benefit of creditors. On August 25, 1903, the De Laney Forge & Iron Company served notice on the Iroquois Transportation Company that it made a claim of lien against the steamer for forging and material furnished; and on October 6, 1903, complaint was filed in the circuit court of Wayne county, Michigan, and shortly thereafter Edwards and others intervened in the case, claiming a lien. The Iroquois Company gave a bond under the statute for the release of the vessel. Decrees were rendered in favor of the claimants and interveners in the circuit court of Wayne county, and upon appeal they were affirmed in the supreme court of Michigan, 142 Mich. 84, 105 N. W. 527.

Mr. Justice Day delivered the opinion of the court:

The Michigan statute under which the liens are claimed in this case is as follows:

'Third Compiled Laws of Michigan, p. 3254:

'(10789) Sec. 2. Every water craft of above 5 tons burden, used or intended to be used, in navigating the waters of this state, shall be subject to a lien thereon:

'First, for all debts contracted by the owner or part owner, master, clerk, agent, or steward of such craft, on account of supplies and provisions furnished for the use of said water craft, on account of work done or services rendered, on board of such craft by seamen or any employee other than the master thereof; on account of work done or service rendered by any person in or about the loading or unloading of said water craft; on account of work done or materials furnished by mechanics, tradesmen, or others, in or about the building, repairing, fitting, furnishing, or equipping such craft: Provided, That when labor shall be performed or materials furnished, as aforesaid, by a subcontractor or workman other than an original contractor, and the same is not paid for, said person or persons may give the owner or his agent, or the master or clerk of said craft, timely notice of his or their said claim, and from thenceforth said person or persons shall have a lien upon said craft pro rata for his or their said claims, to the amount that may be due by said owner to said original contractor for work or labor then done on said water craft.'

Messrs. Charles E. Kremer and William T. Gray for plaintiff in error.

[Argument of Counsel from page 357 intentionally omitted] Messrs. Herbert K. Oakes, John C. Shaw, Charles B. Warren, William B. Cady, Joseph C. Hamblen, Jr., and Hugh Shepherd for defendant in error.

Statement by Mr. Justice Day:

[Argument of Counsel from pages 358-360 intentionally omitted] Several objections are urged by the plaintiff in error which, if sustained, will result in the reversal of the judgments of the supreme court of Michigan. Some of them are of a non-Federal character. It is insisted that the statute does not apply in this case, because the steamer Winnebago was not to be used in navigating the waters of Michigan, within the terms of the statute. But this only presents a question of state law, upon which the judgment of the state court is final and conclusive. The same may be said as to the objection because the transportation company was a bona fide purchaser without notice of complainant's lien, and because complainant did not within a year file its claim for a lien with the proper court in the county in which it resided. These are state questions, likewise concluded by the decision of the state court.

It is further contended that to seize the vessel and subject her to sale and the proceeds thereof to distribution in the state court would be in direct conflict with the exclusive jurisdiction in admiralty in the courts of the United States in favor of liens of a maritime character, and therefore the Michigan act is unconstitutional. No maritime lien is asserted in this case, and it is merely a matter of speculation as to whether any such claim existed, or might be thereafter asserted. No holder of any such maritime lien is here contesting the constitutionality of the state law.

In a case from a state court, this court does not listen to objections of those who do not come within the class whose constitutional rights are alleged to be invaded; or hold a law unconstitutional because, as...