North Carolina Jacob Houseman v. North Carolina Oliver Hara

Decision Date01 January 1841
PartiesThe NORTH CAROLINA. JACOB HOUSEMAN, Claimant, &c., Appellant, v. The cargo of the Schooner NORTH CAROLINA: OLIVER O'HARA, Agent, &c., Libellant
CourtU.S. Supreme Court

APPEAL from the Court of Appeals of Florida.

This case was argued by Coxe, for the appellant; and by Downing, for the owners of the schooner and cargo. The facts are fully stated in the opinion of the court.

TANEY, Ch. J., delivered the opinion of the court.

This case arises upon a proceeding in admiralty, originally instituted in the superior court of Monroe county, in the southern district of Florida, and afterwards carried to the court of appeals for that territory. It is brought here by appeal from the decision of the last-mentioned court.

Several questions have been raised in the argument, upon the form and manner of proceeding in the territorial courts, as well as upon the merits of the controversy; and it becomes necessary to state fully the facts in the record, in order to show the points in dispute, and the principles on which they are decided.

The schooner North Carolina, George McIntyre, master, sailed from Appalachicola, about the 9th of March 1833, laden with cotton, and bound for Charleston, in South Carolina. The cargo was shipped by William G. Porter, of Appalachicola, and consigned to J. & C. Lawton, of Charleston, part of it being shipped on account of the consignees, and part on account of Porter, with directions from him to sell his portion, as soon as the consignees thought it for his interest; and to credit the proceeds in his account. Upon the night of the 14th of March, being five days out, the vessel struck upon the Pickles reef, which is about ninety-five miles from Key West. She was discovered, on the next morning, by the wrecking schooner, Hyder Ally, Joshua B. Smith, master, who took from her deck 110 bales of cotton, when she floated; and both vessels sailed for the Indian Key, where they arrived the same evening. The North Carolina had grounded about twelve o'clock at night, and was gotten off at four o'clock in the afternoon of the following day. She sustained very little injury; not enough to have prevented her from proceeding immediately on her voyage. The weather was moderate, while she was on the reef; and the Hyder Ally ran no risk, and encountered no hardship, in assisting her, beyond the mere labor of taking off the portion of her deck-load above mentioned, and carrying it to the Indian Key. It is stated, however, that the Pickles reef is considered a dangerous one; that it came on to blow fresh, about two hours after the North Carolina was relieved; and that she would probably have been lost, if she had remained on the reef the ensuing night. The Indian Key is a small island, of a few acres of land; about ten or twelve hours' sail from Key West, where there is a port of entry, and a court of the United States having admiralty jurisdiction.

It appears, by the testimony, that Houseman, the appellant, was the only man at the Indian Key, who could have advanced money to McIntyre to pay the salvage. He had a warehouse there, and owned a schooner which was employed in the wrecking business; and this vessel of Houseman's, in the language of the wreckers, consorted with the Hyder Ally, and with a sloop commanded by a man by the name of Packer; that is to say, these three vessels shared equally in the gains made by either of them. Houseman was therefore entitled to a proportion of whatever could be obtained for salvage from the North Carolina; and had a direct interest in making it as large as he could. It does not appear, that he was engaged in any other business except that of wrecking, on the Florida coast. Notwithstanding this interest of Houseman, he was appointed by McIntyre consignee of his vessel and cargo, as soon as he arrived at the Indian Key; and he charged and received commission to the amount of $156.45 for his services in arranging the question of salvage, on behalf of the owners. The evidence does not show whether McIntyre was apprised of Houseman's connection with the salvors; and in so far as this case is concerned, it is not necessary to inquire, whether he was, or was not, aware of Houseman's interest. McIntyre's conduct leads strongly to the conclusion, that he was not deceived, and that he knowingly betrayed the interest of the owners But he is no party to this dispute; the question is between the owners and Houseman; and certainly, his claim would not be strengthened by showing that he concealed his interest from McIntyre, and obtained his confidence, by leading him to believe that he had no interest in the question of salvage. However this may be, McIntyre was induced, by some means or other, to refer the matter to the arbitrament of two men, by the name of Otis and Johnson, who are described in the survey held on the North Carolina, as shipmasters. But we have no account of the characters or standing of these men; nor of the nature of their business and pursuits at the Indian Key; nor have we anything in the record, to show how far their judgment and impartiality could be relied upon in the matter referred. The referees thus chosen awarded thirty-five per cent. on the vessel and cargo; and thereupon, the cotton brought by the Hyder Ally, together with so much in addition, from the North Carolina, as made up the number of 122 bales, was immediately landed and put into the warehouse of Houseman, in payment of the salvage on the cargo, and McIntyre gave Smith $100 in cash, and a draft on his consignees for $600 in payment of the salvage on the vessel; and it is said in the testimony, that Houseman gave Smith the money for the draft. As soon as the affair of the salvage was settled, McIntyre proceeded with the North Carolina, on the voyage to Charleston. Upon his arrival there, however, it would seem, that his consignees were not satisfied with what he had done; and on the 18th of May following, Oliver O'Hara, the present appellee, as agent for J. & C. Lawton, the consignees of the vessel, filed his libel on the admiralty side of the superior court for the southern judicial district of Florida, stating, generally, that a part of the cotton composing the cargo of the North Carolina had been taken from her, while lying on the Florida reef, by the wrecking schooner Hyder Ally, Joshua B. Smith, master; which, together with the North Carolina, was carried into the harbor of Indian Key, where a large portion of the said cotton was still kept, and illegally detained from the libellant; and he prayed process against the cotton, in order that it might be delivered to him. We do not profess to give the words of the libel, and state its substance, in order to show that it was altogether a proceeding in rem; it did not allege that any particular person was in possession of the cotton or claimed it, but merely that it was unlawful detained. Process was issued accordingly, and 72 bales of cotton attached under it. Houseman appeared as claimant, and upon his application, it was delivered to him upon stipulation, being valued, by agreement of parties, at the sum of $2376, and the security entered for that sum.

It is not necessary to state at large the further proceedings which took place in the superior court; nor the amendments and alterations which were afterwards made by both parties in the territorial court of appeals. The pleadings and proceedings are imperfect and irregular in both courts. The particular defects which have been supposed to be material will hereafter be noticed. The superior court of the territory, upon the final hearing, decreed restitution of the 72 bales above mentioned; and Houseman appealed from this decree to the court of appeals of the territory, where new pleadings were filed on both sides, and where the libellant proceeded for the 122 bales taken in salvage, and charged that it was forcibly and wrongfully taken, and claimed damages for the marine tort. The court of appeals sustained his claim for the whole amount of the cotton, with interest and costs; increasing, in its decree, the valuation of the 72 bales beyond the sum for which the stipulation was taken in the superior court; and from this decree Houseman has appealed to this court.

Three questions have been raised here in the argument. 1. Was the transaction in relation to the salvage an honest and fair one; and are the acts of the master of the North Carolina binding upon the owners of the vessel and cargo? 2. Was the matter in controversy within the jurisdiction of the court of admiralty? 3. Assuming those two points to be in favor of the libellants, is there anything in the form of the proceedings and pleadings, which will bar him of his right to recover?

Upon the first question, we have no doubt, that there may be cases in which the contract of the master in relation to the amount of salvage to be paid to the...

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