Schuchardt v. Babbidge

THIS was an appeal from the Circuit Court of the United States for the southern district of New York, sitting in admiralty.

The facts are stated in the opinion of the court.

It was argued by Mr. Cutting upon a brief filed by himself and Mr. Hamilton for the appellants, and Mr. Benedict for the appellees.

The arguments of counsel, with respect to the relative rights of the claimants and libellants to the fund in court, are omitted.

With respect to the jurisdiction of the court, Mr. Cutting's point was this, viz:

Although courts of admiralty in the United States have no power to foreclose a mortgage of a vessel by a sale, or to transfer the possession to the mortgagee, (17 Howard, 399, Bogart v. The Steamboat John Jay,) they may entertain an application by the mortgagee, after a sale, to be paid out of the proceeds of the sale in the registry of the court. (Propeller Monticello, 17 Howard, 152; Admiralty rule, 43.)

Mr. Benedict's point was this:

This is really a suit to foreclose a mortgage, even if it were an original suit against the ship. As a suit against the proceeds, it is in substance a suit in equity, for relief against a regular degree in admiralty. In either case, the District Court had no jurisdiction. (Case of the John Jay, 17 Howard, 399.)

Mr. Justice NELSON delivered the opinion of the court.