The Staffcradshire

• Jurisdiction: Ireland
• Judgment Date: 27 April 1871
• Date: 27 April 1871
• Court: Court of Admiralty (Ireland)

High Court of Admiralty (Ireland)

Townsend, J.

The Staffcradshire

The PanamaUNK L. Rep. 3 P. C. 199 22 L. T. Rep. N. S. 73

The JacobENR 4 Ch. Rob. 245

The ZephyrUNK 3 Mason, 441

La YsableENR 1 Dod. 277

The OlivierENR Lush. 484

The OrientalENR 7 Moo. P. C. 398

The HamburgENR Br. & Lush. 253

The Karnak L. Rep. 2 Adm. & Ec. 289 21 L. T. Rep. N. S. 159

The AugustaENR 1 Dod. 283

The Royal ArchENR Swab. 279

The VibiliaENR 1 W. Rob. 1

Duncan v. BensonENR 1 Ex. 554

The AriadneENR 1 W. Rob. 421

The Tartar 1 Hag. 1

The Huntcliff 2 Hag. 283

Mussen v. PriceENR 4 East, 147

Hickling v. HardyENR 7 Taunt, 312

Bottomry bond Communication with owner Bill of exchange

MARITIME LAW CASES. 101 Nisi Prius.] The Staffordshire. [Adm. HIGH COURT OF ADMIRAI.TY (IRELAND). Reported by ARCHIBALD J.NICOLLS, Esq,, Barrister-at-Law. April 15, 17,18,19, and 27,1871. The Staffordshire. Bottomry bond - Communication with owner - Bill of exchange - Collateral security - Procedure in - colonial court. A British ship, under a charter from London to Callao, put into Melbourne for repairs. The master, who was also part owner, fearing that the shipwrights would, unless their claims were paid, detain the vessel, and that she might thus be unable to fulfil her charter, raised the necessary funds from the ship's assets at Melbourne upon a bottomry bond of the ship and freight. Held,that the bond was not invalidated by the absence of previous communication between the master and the co-owner; and that the case was distinguishable from The Panama (L. Rep. 3 P. C.199; 22 L. T. Rep, N. 8. 73), and from all those in which the general duty, of previous communications is laid down. ' Held also,that,although a bottomry transaction can-. . not be based, upon personal security, bills of exchange may be given in addition to the bond. Held also, that the mortgagees of a ship cannot, for the purposes of such previous communications as is necessary between the party hypothecating the ship and the owner, be deemed an owner; (hough it may be otherwise if the mortgagee be alto the ship's . agent and agent for the owner. Held also, that it may be presumed that the procedure in the Vice-Admiralty Court of Victoria is so far analogous to that in the maritime courts of Great Britain end Ireland, thai a shipwright of 102 MARITIME LAW CASES. Adm.] The Staffordshire. [Adm. . Melbourne would be entitled to arrest a British ship and detain her until his legal demands upon her were satisfied. This was a cause of bottomry, and the petition; which was instituted on behalf of the Bank of New South Wales, of Old Broad-street, in the city of London, stated, that the Staffordshire, while on a voyage from London to Callao, put into Melbourne, and, being in want of funds necessary to enable her to proceed on her voyage, the master, having no credit at Melbourne, and being unable to obtain the necessary money there, was compelled to and did take up and borrow from Henry Dickson and Walter Williams, of Melbourne, on bottomry of the said vessel and her freight, the sum of 3,265l., for the aforesaid purposes; and by a certain bond of bottomry, dated the 7th Sept. 1869, the master of the said ship hypothecated her and her freight to the said Messrs. Dickson and Williams, their executors, administrators, and assigns, as a security for the said sum, which was thereby made payable to them within seven days next after the safe arrival of the Staffordshire at Callao, with a condition that if the said ship should he lost, cast away, or destroyed before her arrival at the said port, then the said sum should not be recoverable. That, in consequence of the second advance of money, the Staffordshire was enabled to proceed to Callao, where she arrived safely, having earned a considerable freight in respect of her said voyage;' that the plaintiffs were now the assignees and lawful owners of the said bond; and that frequent applications had been made to the defendants for payment of the amount due thereon, but that they had neglected and refused to pay the same. The answer put in by the defendant W. H. Smith, of Hyde-park, will be found set out, so far as is material, in the judgment of the court. Elrington, Q.C., LL.D., Boyd, LL.D., and Cor-rigan, LL.D. appeared for the plaintiffs. Todd,Q,.G., Seeds, LL.D., and Madden appeared for the defendant. The evidence of Mr. Currie and others, taken by commission in London, on the 6th Dec. 1870 and following days, was read at the hearing. The following cases were cited: The Lizzie, L. Bop. 2 Adm. & Ecc. 254; 19 L. T. Rep. N.S. 71; The Great Eastern, L. Bop. 2 Adm. & Ec. 88: The Royal Arch, Swab. 259; The Jacob, 4 Chr. Bob. 245 ; The Karnak, L. Rep.2Adm.& Ec.289; 21 L. T. Rep. N.S.159; and The Ariadne, 1 W. Bob. 411; 1 Pritchard'a Dig.'45. Cur. adv. vult. April 27. - Townsend, J. - The facts of this case, which has been so fully and ably discussed, are these: The suit has been instituted to enforce payment of a bottomry bond, for 32652., which was executed at Melbourne, in Australia, on 7th Sept. 1869, by William Barrett, since deceased, who was then the master of the Staffordshire, of London, and a part owner of twenty-two sixty-fourths of that vessel, to Henry Dickson and Walter Williams, ship agents, who have assigned the bond to the plaintiffs; the London Branch of the Bank of New South Wales. Neither the execution nor the assignment of the bond is disputed, but the defendant Mr. W. H. Smith, of London, who is owner of the remaining forty-two sixty-fourths of the vessel," disputes the validity of the bond on several grounds, to which I shall hereafter refer. No other party has appeared in the cause The bind binds the vessel and her freight' to be earned . her then intended voyage from Melbourne to Callao, and from thence to any other port or ports, and it is made payable, with 50 per cent.; bottomry premium, within seven days after the arrival of the ship at Callao. The condition of the bond recites that the ship had lately arrived from London at Melbourne; that she was in want of funds to enable her to proceed to Callao, where she was then bound and about to go; and that without such funds she could not proceed. It con-tains no reference to bills of exchange, or to any other security, collateral or otherwise. Before and at that time, the Staffordshire was subject to a mortgage to Mr. Gumm, of London, which is stated to bear date 22nd Dec. 1868, and to be still subsisting, but it has nob been given in evidence in this cause, nor does the exact amount appear which it was intended to secure." On the same day as the date of the mortgage, the owners of the ship (Barrett and Smith) gave Mr. Gumm a letter, which is in evidence; assigning to him all the freights and earnings of the ship, and the insurances effected and to bo effected on the ship and freight, empowering him to effect such insurances as he might deem necessary, appointing him their attorney for receiving the freights and insurance moneys, constituting him chip's husband,-giving him the sole management of the vessel,and appointing him to be her sole agent at home and abroad. It does not appear that this letter was specially communicated to Messrs. Dickson and Williams, but Mr Dickson states that he understood that Gumm had the principal management of the ship. The...