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Scottish Court of Session Decisions |
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You are here: BAILII >> Databases >> Scottish Court of Session Decisions >> Elderslie Steamship Co., Ltd v. Burrell & Son [1895] ScotLR 32_328 (21 February 1895) URL: http://www.bailii.org/scot/cases/ScotCS/1895/32SLR0328.html Cite as: [1895] SLR 32_328, [1895] ScotLR 32_328 |
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In October 1894 the s.s. “Buteshire” was salved by the s.s. “Strathord” and towed to a port in Mauritius. Both ships belonged to Glasgow firms, and it was arranged between them that the owners of the “Buteshire” should give £25,000 bail for that ship and her cargo, and that she should be allowed to proceed upon her voyage; and further, that the salvors should have the right to have their claim for salvage tried either in England or Scotland. The bail bond was executed on 24th October.
On 18th January 1895 the owners of the “Buteshire” petitioned the Court of Session, in terms of section 547, sub—section 3, of the Merchant Shipping Act 1894, to determine the amount of compensation to be paid by them for the salvage services rendered by the “Strathord.” Before service of this petition the owners of the “Strathord” raised an action in the English Admiralty Court for the purpose of having the amount of salvage determined by that Court.
The petitioners maintained (1) that the respondents had lost their right to elect the Court by which their claim for salvage should be tried by undue delay in exercising it; and (2) that, the parties being both domiciled in Scotland, the English Court had no jurisdiction.
The Court dismissed the petition on the grounds (1) that there had been no undue delay on the part of the respondents in instituting proceedings, and that any delay which had occurred had been caused by the petitioners failing to give the respondents information as to the value of the ship and cargo which had been salved, although repeatedly requested to do so; and (2) that the petitioners could not be heard to deny the jurisdiction of a Court to which they had bound themselves to submit— diss. Lord Rutherfurd Clark, who was of opinion that the petition should be sisted until the Court of Admiralty had determined the question of jurisdiction.
On 22nd September 1894 the machinery of the s.s. “Buteshire” of Glasgow, bound from London to Australia with a cargo of merchandise, broke down in latitude 45° 36' south, longitude 56° 57' east.
On 2nd October the master of the “Buteshire,” observing the “Strathord” of Glasgow steering to the eastward of her, signalled her to come to his assistance. In compliance with this request the “Strathord” towed the “Buteshire” to Port Louis, Mauritius, arriving at that port on 14th October.
On 15th October Messrs Burrell & Son of Glasgow, the managing owners of the “Strathord,” having learned by cablegram of the services rendered by their ship, telegraphed to Messrs Turnbull, Martin, & Company, London, the managers of the Elderslie Steamship Company, Limited, Glasgow, who were the registered owners of the “Buteshire,” asking a bail bond for £40,000 against the “Buteshire” and her cargo to save the vessel from being arrested at Mauritius. On 15th October Messrs Turnbull, Martin, & Company wrote in reply agreeing to give bail, and proposing two gentlemen, both of London, as cautioners, but objecting to the amount of the bail.
On 16th October Messrs Burrell & Son telegraphed—“We accept names offered. Send bond to-night for £40,000, which we consider moderate. As company Scotch and bail English, we require option inserted in bond to sue in Scotland or England as we decide, which we now confirm.”
On the same date Messrs Turnbull, Martin, & Company replied—“We communicated with the underwriters, who agree to our giving the bail in the way desired by you, but object to the amount you demand, namely £40,000. The underwriters say that the outside amount of bail which you can reasonably claim is £10,000, and that they must object to giving more.”
After some correspondence as to the amount of the bail, Messrs Burrell & Son telegraphed on 19th October—“We want bail for ship and cargo, either for principal, interest, and costs to be found due to us by English or Scottish Court or by arbiter, if arbitration agreed on, or in view of values of ‘Buteshire’ and cargo stated by you for £25,000.”
On 22nd October Messrs Turnbull, Martin, & Company wrote, inter alia—“Can you decide how you would like the question of compensation settled? because, as you can understand, we would require to get the underwriters' formal sanction, and it would be well to settle the point. We do not think there will be any difficulty about your having the choice of having the arbitration settled in Glasgow, Court of Session or Admiralty Court here, but we should be glad if you could see your way to decide one or other.”
On 24th October Messrs Botterell & Roche, London, solicitors for Messrs Burrell & Son, wrote to Messrs Lowless & Company, London, solicitors for Messrs Turnbull, Martin, & Company—“Mr Burrell therefore wishes to be quite satisfied that no exception will be taken by your clients to the bond as altered, and that it will he handed to us completed, in the course of the day.”
On the same date the bail-bond was executed in London by the owners of the “Buteshire” and the two London cautioners. It was for the sum of £25,000, and provided “that if the said Elderslie Steamship Company, Limited, shall pay to
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the said Messieurs Burrell & Son such sum, if any, with interest as may be agreed upon, or as may be found to be due in any action or proceedings which may be brought or commenced on behalf of the owners, master, and crew of the steamship “Strathord” in any Court in England or Scotland, or in any arbitration proceedings which may be agreed on in respect of the alleged salvage services, and the cost of any such action or proceedings as may be payable by the said Elderslie Steamship Company, Limited, or the owners of said cargo and freight, then the above written bond shall be void and of no effect, otherwise to be and remain in full force and virtue.” Thereafter a correspondence ensued between the parties. Messrs Turnbull, Martin, & Company called on Messrs Burrell & Son to make a proposal for a settlement, or to choose their tribunal. On 29th November they wrote—“At the same time we are quite willing to put forward any proposal you might make; failing this, what tribunal will you select?” and again on 3rd December—“If you make any proposal for a settlement we shall be pleased to put it before the underwriters, but failing this we should like to know at once what Court you wish to decide the question of compensation.” Messrs Burrell & Son, on the other hand, wrote repeatedly asking for information as to the value of the ship and cargo, but they received no information except that the hull and machinery of the vessel were insured for £70,000.
On 18th January 1895 the Elderslie Steamship Company, Limited, presented an application to the Second Division of the Court of Session, to fix and determine the amount of compensation to be paid by the petitioners in respect of the salvage services rendered by the “Strathord.” They called Messrs Burrell & Son as respondents, and the petition was served on the latter on 21st January.
The petitioners averred, inter alia— “Subsequent to the granting of the bail—bond a long correspondence took place between the petitioners and Messrs Burrell & Son, in which the former pressed the latter to state the amount which they claimed in name of salvage, and whether they desired the question determined in the English or Scotch Courts. Messrs Burrell, however, declined to name a figure, or to indicate in what Court they preferred that the question should be settled. In these circumstances the petitioners have been obliged to bring the present application. It is important in their interests that the matter should be disposed of speedily, both because they have given bail on behalf of a large number of owners of cargo for their proportion of the salvage payable, the amount of which they may have difficulty in recovering from certain owners of cargo who are resident in Australia, and because the ‘Buteshire’ is now on her homeward passage to London, where her crew will fall to be discharged, with the result that their evidence may not be available to the petitioners. They accordingly present this application to have said question determined, under and in virtue of the Merchant Shipping Act 1894, section 547, sub-section 3, which is in these terms—‘Disputes relating to salvage may be determined on the application either of the salvor or of the owner of the property saved, or of their respective agents.’ For the purposes of the present application the petitioners represent the owners of the cargo, in respect that they have been obliged to give bail for the amount payable in respect of the salvage of the cargo as well as of the steamer and her freight. In the correspondence already referred to Messrs Burrell & Son profess to act on behalf of the owners of the ‘Strathord’ as well as the master and crew, and the bail-bond which they exacted is expressed in their favour as representing same.”
The respondents lodged answers, in which they contended that the delay had been caused by the petitioners refusing to give them information as to the value of the vessel and cargo. They further averred —“The respondents delayed for a short time instituting proceedings as they still hoped to get the information necessary to enable them to state their claim, and as they knew that, both ships being in New Zealand, the compensation could not be fixed till their return. As, however, the petitioners still continued to withhold the information, the respondents, on 19th January 1895, instructed an action to be instituted in the English Admiralty Court, in ignorance of the petitioners’ intention to present the present petition, which was not served on the respondents until 21st January 1895. A few days thereafter the petitioners’ London solicitors were asked to accept service of an Admiralty writ, which was duly issued for the purpose of having the amount of the said salvage, and all questions relative thereto decided in the said Court. Notwithstanding the agreement before referred to, and the terms of the bail-bond they declined to accept service. The respondents respectfully submit that the petition ought to be dismissed, or otherwise refused, and with expenses, for the following, among other reasons, viz., that the respondents are entitled, by the terms of the said agreement and bail-bond, to have the questions raised in the present petition decided in the English Court of Admiralty, and that they have duly exercised their option to that effect by instituting proceedings in said Court; that the said Court is the most convenient tribunal for trying the said questions, as the ‘Buteshire’ is bound for London, her managers and underwriters are in London, her cargo was shipped there, the bail sureties are there, and the ‘Strathord’ is expected to discharge there; that the petition is incompetent, and that all parties interested are not convened thereto.”
Argued for petitioners—Under the statute the Court could not refuse to grant the petition. The petition was competently presented and both parties were Scots, and were represented before the Court. Alternatively, the Court in the
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exercise of their discretion should not refuse the application. For three months the petitioners had been calling on the respondents to table their claim, and, the latter having refused to do this, the petitioners were entitled to bring this petition in order to have the matter settled. Further, the English Courts had no jurisdiction to determine the claim, both parties in the proceedings being of Scots domicile. Argued for the respondents — The petition should be dismissed. If any delay had been caused, it had been caused by the action of the petitioners in refusing to give the respondents any information as to the value of the ship and cargo. No loss had been caused by the delay, as no inquiry could be made till the ships arrived in this country. Both ships were due in London in April, so the Courts at London were the most convenient place to try this question. In terms of the letters and the bail bond the respondents had a right to choose the Court in which the proceedings should be taken. They had chosen the English Admiralty Court, which was therefore the proper Court to try the cause. The petition should be dismissed, not sisted, as if it was sisted the English Court might refuse to proceed because the process was before the Scots Court.
At advising—
The application by the owners of the salved ship is stated to be under section 547 of the Act of 1894, which provides that disputes relating to salvage may be determined on the application either of the salvor or of the owner of the property saved, or of their respective agents, and the application is to have the amount of the salvage due for salving the vessel determined.
Now, I suppose there is no doubt of the competency of the application, and that this Court has jurisdiction to entertain it, for, as I have stated, the owners not only of the salving ship but also of the salved ship are carrying on business in Glasgow, their respective ships belong to Glasgow, and therefore, if there were no specialty in the case, we should have only one duty to perform, which would be to proceed immediately to take such evidence as was necessary to enable us to determine the amount of the salvage, for that salvage is due is not in dispute, and it was suggested by the learned counsel that we should take the course of remitting to a Lord Ordinary to proceed with the investigation. But the case does not rest there, or there would have been no question, for it appears, and indeed is not matter of dispute, that when the salved vessel was in the port of the Mauritius to which she was taken, an arrangement was effected by telegrams or cablegrams from this country, generally to the effect that, while the fact of salvage was admitted, the amount in dispute should be left for subsequent determination, the vessel salved being allowed, having been repaired, to go upon her voyage in the busy season, the salvors being secured by a bond of surety for £25,000 that what should be ascertained to be the amount of the salvage should be duly paid. The whole dates in the case are within so small a compass that even this bond, after the vessel was repaired and starting again on her voyage, was in the same month of October last.
In the course of the communications which passed relative to allowing the vessel to go upon her voyage, security being granted to the salvors that whatever should be ascertained to be due to them ultimately would be paid, we have considerable correspondence between Burrell & Son in Glasgow, who had been informed by telegram or cablegram I suppose of all that had occurred, and Turnbull, Martin, & Company in London, who were acting for the owners of the salved ship. One of these letters from Burrell & Son, dated 16th October 1894, is in these terms—“We have your favour of yesterday and wired you to-day as follows—We accept names offered “—that is, the names of the sureties— “Send bond to-night for £40,000, which we consider moderate.” They came down to £25,000 from £40,000, which was represented to their satisfaction to be an extravagant amount. The letter proceeds—“As company Scotch and bail English” — the sureties were English — “we require option inserted in the bond to sue in Scotland or England as we decide.” The answer to that is—“We have your letter of yesterday, also copy telegram, but before we had communicated with the underwriters and our solicitors it was rather late to wire. We communicated with the underwriters, who agree to our giving the bail in the way desired by you, but object to the amount you demand.”
Now, I read that prima facie as an agreement that they should have an option inserted in the bond to sue in Scotland or England as they should decide, and I think that is repeated in subsequent letters, the owners of the salving ship, who were really the claimants, requiring that it should be left to their determination whether they should have the amount of salvage ascertained by arbitration or by an appeal to the Court in England or an appeal to the Court in Scotland. Besides, the bail bond dated 24th October bears this, that the amount ascertained to be due shall be paid, and that the sureties shall be surety for such sum “as may be agreed upon or as may be found to be due in any action or proceedings which may be brought or commenced on behalf of the owners, master, and crew, of the steamship “Strathord” in any Court in England or Scotland, or in any arbitration,
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I have no doubt that by refusing the application—it is not refusing it upon its merits, but dismissing the application— and leaving the contract between the parties to be carried out in the action before the Court of Admiralty, we shall act according to the bargain of the parties, and according to the truth, justice, and law of the case, and if such a monstrously unlikely thing—for I cannot characterise it by a weaker word than that—should occur, as that it should be found that the Court of Admiralty has no jurisdiction in the matter, another application can be presented here at the cost of a few shillings.
My opinion therefore is, and I confess without any doubt or hesitation, that our proper course is to dismiss this application, and I should say with costs, for I am of opinion that it has been presented in violation of the legitimate contract between the parties as they both understood it and intended it.
I am satisfied from the correspondence that the petitioners agreed that the choice of Courts was to rest with the respondents, who have, in pursuance of that agreement, and while it was still in force, presented an application to the Court of Admiralty in England, but two days after the petition
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I am of opinion therefore that we should sist the petitioner until we know what the Court of Admiralty will do.
I think there is no foundation in fact for the first of these grounds. There has been no undue delay on the part of the respondents, and any delay which has taken place may, in my opinion, be fully accounted for by the refusal on the part of the petitioners to answer certain questions put to them by the respondents, which the latter had a right to put, and which I am surprised were not frankly and fully answered by the former. The delay, such as it has been, has caused the petitioners no prejudice. No material advance can be made towards settling this dispute until the vessels—the salved and the salvor — return to Great Britain. This cannot happen yet for several weeks to come. The petitioners' first ground therefore entirely fails.
The second ground is one that I think the petitioners are not entitled to plead. They cannot be heard to say that a Court to whose judgment they bound themselves to submit has no jurisdiction to decide the question which they agreed to submit to it. The English Court may say this, and if, when the question is brought before it, that Court decide that it has no jurisdiction, or declines to adjudicate upon the respondents' claim, then either party may apply to this Court. But as the petitioners agreed that the question should be decided by the English Court if the respondents, in the exercise of their option, advanced their claim in England, I am for keeping the petitioners strictly to the bargain which they made and giving the respondents the opportunity of bringing their claim before the English Courts. I see no reason at present to suppose that the English Courts will decline to adjudicate upon the claim in question, especially when regard is had to the terms of the 565th section of the Merchant Shipping Act of last year. I am therefore for refusing this petition.
I do not think there was any undue delay. I think that the information which they asked for, and which they could not get, they were well entitled to get, because it was necessarily a part of the means by which their claim could be stated and ascertained; and further, that as no inquiry could possibly take place practically into the case until the arrival of the respective vessels, the salvors and the salved, they were hot under any undue delay in taking advantage of what was their right under the agreement. Therefore the only question is as between sisting this petition— keeping it open—or dismissing it. Now, I must frankly say that my strong impression was, that sisting the petition would have been the proper course, the only reason which has been suggested why the sist might create any difficulty being that the salvors here were afraid that, if the petition stood sisted in this Court, it might prejudice them in the question before the Court of Admiralty in London, I think that could have been very easily avoided; it would have been very easy so to state our opinion, or so to frame the interlocutor as to prevent anything of that kind taking place. The matter is really, however, in its
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The Court dismissed the petition.
Counsel for the Petitioners— C. S. Dickson — Salvesen. Agents — Webster, Will, & Ritchie, S.S.C.
Counsel for the Respondents — Ure — Campbell. Agents— Hamilton, Kinnear, & Beatson, W.S.