Krauss Brothers Lumber Co. v. Dimon Steamship Corp. (The Pacific Cedar)
United States Supreme Court
290 U.S. 117, 54 S.Ct. 105, 78 L.Ed. 216, 1933 AMC 1578 (1933)

- Written by Carolyn Strutton, JD
Facts
Dimon Steamship Co. (Dimon) (defendant) was the owner of the Pacific Cedar (defendant) and entered into a contract with Krauss Brothers Lumber Co. (Krauss) (plaintiff) to transport lumber on the vessel. The affreightment contract provided that the freight to be charged was $10 per thousand feet of lumber but included a stipulation that if another regular intercoastal carrier was offering to move similar cargo at a lower rate, then that lower rate would be charged. The lumber was transported and delivered, and Krauss paid Dimon the $10-per-thousand-feet rate. Krauss then discovered that another carrier had carried similar cargo at $8.50 per thousand feet. Krauss brought a suit in admiralty in personam against Dimon to recover the overpayment and sought a maritime lien in an in rem action against Pacific Cedar for the amount of the overpayment. The district court dismissed both claims on other contractual grounds. The court of appeals reversed the dismissal of the in personam action against Dimon but upheld the dismissal of the in rem action against Pacific Cedar. Krauss appealed.
Rule of Law
Issue
Holding and Reasoning (Stone, J.)
Dissent (McReynolds, J.)
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