United States v. Freights, Etc. of the Mount Shasta
United States Supreme Court
274 U.S. 466 (1927)
- Written by Alex Ruskell, JD
Facts
The United States (plaintiff) owned the steamship Mount Shasta. The United States made a charter of the vessel to the Mount Shasta Steamship Company through Victor S. Fox & Company, Inc. (Fox). The charter stipulated for a lien upon all cargoes and all sub-freights for any amounts due under the charter. Fox made a subcharter to Palmer & Parker Company (Palmer) for a cargo of wood. The United States believed it was owed due and unpaid freight on the wood cargo when it arrived in harbor, money that was in the hands of Palmer. The United States sued in admiralty, bringing an in rem action against the money owed. Because this was an in rem action, the United States brought the claim in federal court under admiralty jurisdiction. Palmer disputed the United States’ claims, and the district court dismissed the claim for want of jurisdiction because in rem claims required some res that could be taken into custody. The United States appealed directly to the Supreme Court, arguing that the debt owed could be the basis of an in rem claim.
Rule of Law
Issue
Holding and Reasoning (Holmes, J.)
Dissent (McReynolds, J.)
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