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GEORGE J. WALDIE TOWING CO., Inc., Petitioner-Respondent, v. Hugo F. RICCA, Executor of the Estate of Joseph S. Martin, Deceased, Claimant-Appellant

United States Court of Appeals for the Second Circuit1955-12-09No. No. 126, Docket 23760
227 F.2d 900

Summary

Holding. The court reversed the lower court's denial of the seaman's motion and remanded the case, holding that a single claimant who concedes that all limitation-of-liability questions will be reserved for the admiralty court may proceed with his claim in another forum, and that the executor may now file a formal concession to satisfy any remaining procedural requirements.

A towing company sought to limit its liability as vessel owner in response to a seaman's injury claim, posting a bond equal to the vessel's assessed value and obtaining a court order restraining the seaman's lawsuit. The seaman moved to lift this restraining order, offering to reserve all limitation-of-liability questions for the admiralty court while pursuing his damages claim elsewhere. Established precedent permits a single claimant to proceed in another forum when the claimant concedes that limitation issues will be decided by the admiralty court.

The towing company contested the adequacy of the seaman's concession on technical grounds, suggesting a more formal stipulation was needed. The court rejected this objection, finding that the seaman's explicit on-the-record offer to enter into any required stipulation, combined with his attorney's authorization, constituted a sufficient concession under binding precedent. However, because the seaman died during the appellate proceedings and an executor was substituted as claimant, the court found it appropriate to require the executor to formally execute and file the concession before the restraining order could be lifted.

Summary generated by law.co from the public-domain opinion. The opinion text itself is public domain.

Key issues

  • Whether a single claimant may pursue damages in a non-admiralty forum while reserving limitation-of-liability questions for admiralty court
  • What form and formality a claimant's concession must take to satisfy this exception
  • Whether substitution of an executor as successor claimant requires refiling of the concession

Procedural posture

The towing company petitioned for limitation of liability in federal district court; the seaman moved to vacate the restraining order on condition of reserving limitation issues for admiralty court; the district court denied the motion; the seaman appealed, and an executor was substituted as claimant pending appellate review.

Authorities cited

No cited authorities resolved to law.co cases yet.

Opinion

majority opinion

CLARK, Chief Judge.

The narrow limits of this controversy, where the principles of law seem to be thoroughly settled, suggest question as to why it has taken several years and ultimately appellate review to adjust these procedural matters preliminary to approaching the real issues separating the parties. Co-operation between counsel in settlement of such preliminaries would seem desirable both for the benefit of the parties and for the relief of congested trial and appellate dockets.

Here petitioner, George J. Waldie Towing Co. Inc., has sought limitation of liability as owner of the Deck Scow “Hannah Jeanette,” particularly to secure protection from the claim of Joseph S. Martin, a seaman, for injuries sustained on the vessel on June 3, 1951. The petition, filed below on May 4, 1953, asserted a value of the scow at the time of the accident of $12,500; and the petitioner, having given a surety company bond to cover that amount, secured an order restraining the prosecution of Martin’s suit for $150,000 damages pending in the Supreme Court of the State of New York against petitioner and another. Martin then moved to vacate this order, asserting that his was the only claim against the vessel and offering to stipulate that all questions concerning limitation of liability should be reserved for the admiralty court if he might be allowed to continue his state jury action. Petitioner opposed and the district court denied the motion, with this appeal resulting. The appeal has been pending for some two years and a half, during which time Martin has died and his executor has been substituted as claimant.

The cases are clear that in proceedings for limitation of liability a single claimant will not be barred from pressing his cla“im before another tribunal if he concedes of record to reserve all questions of limitation of liability for the admiralty court. Petition of Red Star Barge Line, 2 Cir., 160 F.2d 436, certiorari denied 331 U.S. 850, 67 S.Ct. 1741, 91 L.Ed. 1859; Petition of Moran Transp. Corp., 2 Cir., 185 F.2d 386, certiorari denied 340 U.S. 953, 71 S.Ct. 573, 95 L.Ed. 687; Petition of Spearin, Preston & Burrows, Inc., 2 Cir., 190 F.2d 684. This rule is similar to the one which allows suits elsewhere when there is a clear excess of value over the claim. Petition of Texas Co., 2 Cir., 213 F.2d 479, certiorari denied Texas Co. v. United States, 348 U.S. 829, 75 S.Ct. 52, Id. 2 Cir., 220 F.2d 744; Curtis Bay Towing Co. v. Tug Kevin Moran, 2 Cir., 159 F.2d 273. The form which the concession may take is noted particularly in the Red Star and Texas cases. Petitioner here does not really contest this principle, but raises formal questions as to the nature and completeness of the concession made by claimant below. And it suggests at most only a modification of the order under appeal to permit the claimant to reapply for the lifting of the restraining order on filing of some detailed “stipulation.”

The claimant’s concession below was accompanied by an explicit offer to enter into any stipulation required by the cited precedents. This seems most complete, and there is no indication that his motion was rejected for any formal inadequacy of the papers. It is clear that no “stipulation” involving agreement or consent of the petitioner is required, nor are other conditions to be imposed under the authorities cited. It is indeed difficult to see why a definite concession of record by a duly authorized attorney was not so thoroughly binding upon the claimant as to be itself adequate. But since the claimant has died and has been succeeded by an executor, it may be formally desirable for the executor to sign and file such a concession in the district court as a preliminary to the lifting of the restraining order. We reverse and remand for that purpose. The order is appealable as involving injunctive relief. Petition of Texas Co., supra; Curtis Bay Towing Co. v. Tug Kevin Moran, supra; W. E. Hedger Transp. Corp. v. Gallotta, 2 Cir., 145 F.2d 870.

Reversed and remanded.