Union Steamboat Company v. Erie Western Transportation Company

The facts of this case are fully set out in previous decisions of this court. 175 U.S. 187, 44 L. ed. 126, 20 Sup. Ct. Rep. 67; 178 U.S. 317, 44 L. ed. 1084, 20 Sup. Ct. Rep. 904.

The steamer Conemaugh, owned by respondents, and the propeller New York, owned by the petitioner, collided in the Detroit river, November 11, 1891. The Conemaugh for herself, and as bailee of her cargo, filed a libel against the New York for the sum of $70,000 damages in the district court for the eastern district of Michigan. Subsequently, certain underwriters of the cargo of the Conemaugh filed an intervening petition in the cause. Subsequently, the New York, for damages sustained by her, filed a cross libel against the Conemaugh for $3,000 damages, sustained by the New York in the collision. No answer was filed to this cross libel.

The district court held the New York to have been solely in fault, and passed a decree against her. The circuit court of appeals for the sixth circuit reversed the decree of the district court on the ground that the Conemaugh had been solely in fault, and adjudged that her owners pay the owners of the New York, petitioners here, the damages sustained by the New York. The case was then brought here by certiorari, and both vessels were pronounced to have been in fault. The decrees of the lower courts were reversed and the damages caused by the collision ordered to be divided. The following is the material part of the judgment and mandate:

'On consideration whereof, it is now ordered, adjudged, and decreed by this court that the decree of the said United States circuit court of appeals in the cause be and the same is hereby reversed; the claimant of the Conemaugh and the claimant of the New York each to pay one half of all costs in this cause.

'And that the said Erie & Western Transportation Company recover against the Union Steamboat Company $276.75 for one half of the costs herein expended, and have execution therefor.

'And it is further ordered that this cause be and the same is hereby remanded to the district court of the United States for the eastern district of Michigan, with direction to enter a decree in conformity with the opinion of this court, with interest from July 3, 1896, until paid, at the same rate per annume that decrees bear in the courts of the state of Michigan.'

Upon the return of the case to the district court, that court made its decree in favor of the several intervening underwriters upon the cargo for their respective claims, with interest at 7 per cent from July 3, 1896. The court also decreed that the owners of the cargo and their underwriters, other than the interveners, by reason of the collision, sustained damages in the sum of $19,627.67, 'for which the said Erie & Western Transportation Company appears in this suit as trustee only.' And it was adjudged and decreed 'that said trustee recover from the said Union Steamboat Company and its surety, in trust, for the said owners of and underwriters on cargo, the aforesaid sum of $19,627.67, with interest thereon at the rate of 7 per cent per annum from July 3, 1896, until paid, and that it have execution therefor.'

Judgment was also given in favor of the Conemaugh for one half of the damages of that steamer, less one half of the damages of the New York, with interest.

At the hearing in the district court on the return of the mandate the petitioner 'submitted a decree to the effect that both vessels were in fault for the collision, and that the damage resulting therefrom be equally divided between the Erie & Western Transportation Company, owner of the Conemaugh, and the Union Steamboat Company, owner of the New York; that such damages amounted in all to the sum of $74,319.49, of which certain intervening underwriters of the cargo were entitled to, and recovered from the steamboat company, $19,841.56; that the transportation company, as trustees for the underwriters and owners of the cargo of the Conemaugh, not intervening, suffered damages in the sum of $19,627.67; that as owner of the propeller, it had suffered damages in the sum of $30,508.46, aggregating the sum of $50,136.13; that the transportation company recover of the petitioner one half of $50,136.13, less one half the sum of $19,841.56, decreed to be paid to the intervening petitioners, etc.

'The court, however, declined to enter this decree; refused to permit the petitioner to recoup any sum that it might pay to the owners or underwriters of the cargo of the Conemaugh, from any sum that was due from the steamboat company for damages sustained by the Conemaugh, so that such company was compelled to pay of the total damages about 76 per cent instead of 50 per cent.' 178 U.S. 317, 318, 44 L. ed. 1084, 20 Sup. Ct. Rep. 904.

The action of the district court was affirmed by the circuit court of appeals (47 C. C. A. 232, 108 Fed. 102), and the case was then brought here.

Messrs. C. E. Kremer, F. C. Harvey, and W. O. Johnson for petitioner.

Messrs. Harvey D. Goulder, S. H. Holding, and F. S. Masten for respondents.

Mr. Wilhelmus Mynderse for interveners.

Mr. F. H. Canfield for underwriters.

Mr. Justice McKenna delivered the opinion of the court: