Luckenbach v. Pierson

229 F. 130 (1915)

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Luckenbach v. Pierson

United States Circuit Court of Appeals for the Second Circuit
229 F. 130 (1915)

CS

Facts

Lewis Luckenbach (plaintiff) owned the steamship Harry Luckenbach and chartered the vessel to Ralph Pierson & Co. (defendant). The charter was a time charter for a term of 10 months that began in January 1906. The charter agreement included a withdrawal provision that allowed Luckenbach to withdraw the ship from Pierson’s service if Pierson defaulted on the payments for the charter. By June of 1906, Pierson was in default on the charter payments. On June 27, Luckenbach sent a first letter to Pierson threatening to withdraw the ship on an unspecified date. Luckenbach then sent a second letter on June 30 that stated that the ship would be withdrawn when the ship completed its present voyage and its cargo was unloaded. The cargo was unloaded in port on July 16, and Luckenbach withdrew the ship. By that time Pierson had attempted to tender the amount in arrears plus interest, but Luckenbach refused to accept it. The issue of outstanding liabilities owed by each party under the charter came before federal district court. The court held that Luckenbach had been in the wrong to make the withdrawal of the vessel after Pierson had attempted to tender payment. The court awarded Luckenbach the outstanding charter amount prior to the withdrawal but also awarded Pierson damages for the wrongful withdrawal. Luckenbach appealed.

Rule of Law

Issue

Holding and Reasoning (Ward, J.)

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