Castrique v Imrie
| Jurisdiction | UK Non-devolved |
| Year | 1865 |
| Court | House of Lords |
| Date | 1865 |
Ship - Bill of Exchange - Proceeding in Rem - Foreign Court - English Law - Maritime Lien.
Where a foreign Court, having competent jurisdiction in the matter, and honestly exercising it, delivers, in a proceeding in rem, a judgment, by which the sale of a chattel (a British ship then lying in the foreign port) is ordered, the sale cannot afterwards be impeached in this country in an action against the vendee, even though the person seeking to impeach it would, by the law of this country, have a preferential title to the chattel here.
A ship was, while in a port of an English colony, repaired and furnished with necessaries for the voyage. The captain drew on his owner for the amount due. The bill was never accepted. The ship sailed on its prescribed voyage, and before reaching England entered a French port. The bill was indorsed to a French subject, who sued the captain on it, and obtained in the Tribunal de Commerce a judgment against him, but the judgment freed him from personal arrest and declared the debt “privileged on the ship” (having priority over others). The ship was taken possession of by the French authorities under this judgment. While the ship was on its voyage, and before its arrival in the French port, the owner had executed a mortgage of the ship to a creditor. Neither the original owner nor the mortgagee was in any way personally cited in the action. The ship could not be actually sold till the Civil Tribunal of the district had confirmed the original judgment. It was confirmed, after the original owner and his assignee (for he had in the meantime become bankrupt) had been cited before the Civil Tribunal, and that Court disregarded the opinion of an English lawyer as to what would be the relative rights of the holder of a bill of exchange and the holder of a bill of sale of the ship. The assignee of the mortgage afterwards instituted before the Civil Tribunal a process in the nature of a replevy of the ship, but failed in the process, and the ship was sold:—
Held, that there had been a judgment in rem in the French Court, and that the title of the vendee of the ship (an Englishman), could not afterwards be disturbed in this country.
Per LORD CHELMSFORD:— A proceeding in a foreign Court to enforce a maritime lien, which by the law of that foreign country and of all foreign codes founded on the civil law, though not so recognised by the law of this country, is a proceeding in rem, must be so treated here.
DURING the year 1853, and up to the 30th of November, 1854, John George Claus, a British subject, was the registered owner of the ship Ann Martin, registered at Liverpool. In December, 1853, the ship sailed from Liverpool on a voyage to Melbourne, and was to sail thence to Madras, under the command of one William Benson. At Melbourne the ship was supplied by Messrs. Levien & Stenetz with what were admitted to be necessaries, and, in payment for them, Benson drew a bill on Claus for the sum of £601 16s. 6d. This bill did not arrive in England until Claus's bankruptcy, and was never accepted, and when at maturity was dishonoured. On the 30th of November, 1854 (the ship being then in due prosecution of its voyage), Claus, executed, in England, a mortgage of the ship with a power of sale, in favour of one Thomas Harrison, in part payment of a bill for £4000, which mortgage was duly registered at Liverpool, on the 2nd of December, 1854. On the 2nd of February, 1855, Harrison executed a bill of sale of the ship to Richard Emley, who, on the very next day, registered himself as owner. On the 9th of April, 1855, Emley executed a bill of sale of the ship to Louis Castrique, who did not at that time take any steps to register himself as owner. On the 4th of May, 1855, the ship, according to instructions received by the master while he was at Melbourne, went to Havre. On the 10th of May, 1855, while the ship was at Havre, Claus became bankrupt. The bill for £601 16s. 6d. had, in the meantime, been indorsed to Messrs. Trotteux & Co., of Havre, French subjects, and they, whilst the ship was still in that port, commenced in the Court of the Tribunal of Commerce there, a suit against Benson on the bill. Benson was cited and appeared, but did not defend the suit; but allowed judgment to be taken against him, and on the 15th of May, 1855, the judgment was formally recorded. This judgment recited that “the bill in question was drawn by Benson, in his capacity of captain of the vessel Ann Martin, in payment for necessaries supplied to that vessel; and that there is occasion to grant his prayer to be protected from personal arrest.” It went on thus: “The Tribunal condemns Benson in his quality of captain of the vessel Ann Martin, and by privilege on that vesselF1, to pay to the Plaintiffs the sum of £601 16s. 6d., the amount of the bill,” &c., with interest and costs. No summons in the suit had been served on Claus, Harrison, Emley, or Castrique, nor had they, nor, by the law of France, was it deemed necessary that they should have, any such summons, or any opportunity of appearing in the suit. The ship was, under this judgment, seized in the port of Havre, and detained in the custody of the Court. The ship, however, could not be sold till this judgment of the Tribunal of Commerce had been ratified by the Civil Tribunal of the same district; and the persons appearing by the ship's papers to be the owners of the ship were entitled to appear and be heard before the Civil Tribunal. Claus, and his official assignee Bird, as well as Benson, the master, accordingly received notice to appear; they did not appear, and the judgment of the Tribunal of Commerce was, on the 15th of August, 1855, confirmed, and a sale of the ship ordered. Notice of this final judgment was served upon Bird, the official assignee of Claus, but he never appeared, in person or otherwise, before the Tribunal. After the delivery of this final judgment, Castrique (who had, though not formally, been made aware of these proceedings), upon the 22nd of September, 1855, commenced a suit in the Civil Tribunal of Havre, in the nature of a suit to replevy the ship; the facts were then fully proved, and evidence of the law of England on the subject was given to the Civil Tribunal.
The Civil Tribunal, on the 19th of April, 1856, gave judgment against CastriqueF2. Castrique appealed against this judgment to the Court of Appeal at Rouen, and, in addition to the other documents, furnished the Court with an opinion of Mr. Attorney-General CockburnF3. The Appeal Court, however, on the 3rd of March, 1857, gave a judgment in these terms:— “Adopting the reasons which had guided the previous judges, we confirm the judgment of the Civil Tribunal of Havre, and condemn the Appellant in the penalty [damages] and costs.” Castrique effected a registry in his own name as owner on the 13th of April, 1857. The sale took place on the 29th of May, 1857; he attended it, but did not lodge any formal protest against it. The Defendants became the purchasers, and obtained, in the first instance, a provisional certificate of registry from the British consul at Havre; and afterwards, at Liverpool, registered themselves, on the 15th of July, 1857, as owners.
When the vessel arrived in this country, Castrique formally demanded possession of it, and then brought an action in the Court of Common Pleas to recover it, on the ground that the sale in France was illegal and void as against his earlier title.
On the argument of the special case, the Judges of Common Pleas (Justices Williams, Willes, Byles, and Keating), were of opinion that Castrique was entitled to recoverF4. The Court of Exchequer Chamber, Lord Chief Justice Cockburn, Justices Wightman, Blackburn, and Hill, and Barons Martin, Bramwell, and Channell, reversed that judgmentF5. The case was then brought up to this House on Error.
The Judges were summoned, and Mr. Baron Bramwell, Mr. Justice Blackburn, Mr. Justice Keating, Mr. Justice Mellor, Mr. Baron Cleasby, and Mr. Justice Brett, attended.
Mr. Matthews, Q.C., for the Plaintiff in Error:—
The English law alone governs the transaction, and the French Courts were not justified in applying the French law, in disregard of the English law, to its decision. The bill was a bill drawn by a British subject on a British subject, in a British colony, in respect of supplies furnished to a British ship, and the French law had nothing to do with the ship. Its jurisdiction was confined to the parties on the bill, and to their rights as arising on that instrument. That makes the case of Cammell v. SewellF6 inapplicable. The English law is well settled. It is summed up in the case of The Neptune, Hodges v. SimsF7, where it was held that, a ship having been sold under an order of the Court of Admiralty for the payment of seamen's wages, a mortgagee and not a material man could claim the surplus of the proceeds of the sale. Necessaries furnished to a ship do not, by English law, create a lien on the ship itself. The French law may be the other way, Code de CommerceF8; but French law cannot govern a purely English transaction.
The lien here was perfect in the mortgagee by the delivery to him of the bill of sale. That the vessel was then at sea made no difference: Story on AgencyF9, where both English and American authorities are quoted in support of the proposition. The French Court, however, expressly disregarded English lawF10, and founded its decision on what the Judges there deemed fit to be the rule of commercial law.
The proceeding in the French Court was not a proceeding in rem; it was in personam, in truth, it was a proceeding on the bill, and was founded entirely on the right which the indorsee of...
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