B-127545, AUG. 6, 1957

B-127545, AUG. 6, 1957

TO KIRLIN, CAMPBELL AND KEATING:

YOUR LETTER OF MAY 22, 1957, CONCERNS A JUDGMENT IN THE AMOUNT OF $48,663.91, WHICH THE INTERVENING PLAINTIFF, THE LITHUANIAN BALTIC LLOYD, LTD., IN THE ABOVE-CITED CASE RECOVERED AGAINST THE UNITED STATES. HAVE NOT PAID THE JUDGMENT BECAUSE THE PLAINTIFF CORPORATION APPARENTLY NO LONGER IS IN EXISTENCE, AND NO SHOWING HAS BEEN MADE AS TO WHO IS ENTITLED TO ITS ASSETS.

YOU ADVISE THAT YOU REPRESENT THE STANDARD OIL COMPANY OF NEW JERSEY; THAT THAT COMPANY FURNISHED BUNKERS TO THE SS DENNY ON DECEMBER 3 AND 14, 1941; AND THAT THE AMOUNT DUE YOUR CLIENT FOR SUCH BUNKERS IS $726.80. YOU SAY THAT THE PLAINTIFFS IN THIS ACTION INCLUDED THE CLAIM OF YOUR CLIENT IN THEIR LIBEL AND THAT THE AGENTS OF THE PLAINTIFFS HAVE GIVEN YOU A LETTER TO THAT EFFECT WHICH YOU SAY READS AS FOLLOWS:

"PLEASE BE ADVISED THAT THE CLAIM OF STANDARD OIL COMPANY AGAINST THE SS DENNY IS INCLUDED IN THE AMOUNT CLAIMED IN THE SUIT OF LITHUANIAN AMERICAN IMPORT AND EXPORT CORPORATION AGAINST THE FUND RESULTING FROM THE REQUISITION OF THE SS DENNY BY THE UNITED STATES GOVERNMENT, AND SHOULD THE SUIT BE SUCCESSFUL AS TO THE ENTIRE AMOUNT CLAIMED OR IF THIS PARTICULAR ITEM OF THE CLAIM BE ALLOWED AS A LIEN AND PAYMENT IS RECEIVED, STANDARD OIL COMPANY WILL BE REIMBURSED BY LITHUANIAN AMERICAN IMPORT AND EXPORT CORPORATION.'

YOUR LETTER CONTINUED IN PART:

"IN VIEW OF THE FACT THAT THE JUDGMENT AGAINST THE UNITED STATES OF AMERICA INCLUDES A SUM OF $726.80 WHICH IS DUE AND OWING TO OUR CLIENT, STANDARD OIL COMPANY OF NEW JERSEY, WE WOULD APPRECIATE YOUR ADVISING US AS TO WHAT STEPS WE MAY TAKE TO CLAIM SUCH PAYMENT AND TO OBTAIN PAYMENT THEREOF.'

THE VESSEL IN QUESTION WAS REQUISITIONED BY THE UNITED STATES ON JUNE 1, 1942, PURSUANT TO THE ACT OF JUNE 6, 1941, PUBLIC LAW 101, 77TH CONGRESS, 55 STAT. 242. THIS ACT PROVIDES THAT THE AMOUNT DETERMINED TO BE PAYABLE TO THE OWNERS AS JUST COMPENSATION FOR THE VESSEL SHALL BE DEPOSITED WITH THE TREASURER OF THE UNITED STATES. THE ACT FURTHER PROVIDES THAT THE FUND SO DEPOSITED SHALL BE AVAILABLE---

"* * * FOR THE PAYMENT OF SUCH COMPENSATION, AND SHALL BE SUBJECT TO BE APPLIED TO THE PAYMENT OF THE AMOUNT OF ANY VALID CLAIM BY WAY OF MORTGAGE OR MARITIME LIEN OR ATTACHMENT LIEN UPON SUCH VESSEL, OR OF ANY STIPULATION THEREFOR IN A COURT OF THE UNITED STATES, OR OF ANY STATE, SUBSISTING AT THE TIME OF SUCH REQUISITION OR TAKING OF TITLE OR POSSESSION; THE HOLDER OF ANY SUCH CLAIM MAY COMMENCE WITHIN SIX MONTHS AFTER SUCH DEPOSIT WITH THE TREASURER AND MAINTAIN IN THE UNITED STATES DISTRICT COURT FROM WHOSE CUSTODY SUCH VESSEL HAS BEEN OR MAY BE TAKEN OR IN WHOSE TERRITORIAL JURISDICTION THE VESSEL WAS LYING AT THE TIME OF REQUISITIONING OR TAKING OF TITLE OR POSSESSION, A SUIT IN ADMIRALTY ACCORDING TO THE PRINCIPLES OF LIBELS IN REM AGAINST THE FUND, WHICH SHALL PROCEED AND BE HEARD AND DETERMINED ACCORDING TO THE PRINCIPLES OF LAW AND TO THE RULES OF PRACTICE OBTAINING IN LIKE CASES BETWEEN PRIVATE PARTIES;

INASMUCH AS YOUR CLIENT FURNISHED SUPPLIES (BUNKERS) TO THE VESSEL FOR WHICH IT WAS NOT PAID, IT APPARENTLY HAD A "MARITIME LIEN" ON THE VESSEL UNDER 46 U.S.C. 971.

THE RECORD DISCLOSES THAT ON OR ABOUT OCTOBER 8, 1942, THE UNITED STATES DEPOSITED $22,500 WITH THE TREASURER OF THE UNITED STATES INCIDENT TO THE REQUISITION AND PURSUANT TO THE TERMS OF THE ABOVE CITED ACT. IT APPEARS THAT $12,042.03 WAS PAID OUT OF SUCH FUND ON ORDER OF THE DISTRICT COURT OF NEW JERSEY IN RECOGNITION OF A LIEN OF DANIEL F. YOUNG, INC., AND EXPENSES CONNECTED THEREWITH AND THE JUDGMENT OF $48,663.91 REPRESENTED THE BALANCE OF JUST COMPENSATION FOR THE VESSEL. SINCE YOUR CLIENT APPARENTLY HAD A MARITIME LIEN UPON THE VESSEL AT THE TIME IT WAS REQUISITIONED BY THE UNITED STATES IT APPEARS THAT IT COULD HAVE AND SHOULD HAVE FILED ITS CLAIM PURSUANT TO THE ABOVE-CITED ACT AND WITHIN THE SIX-MONTH LIMITATION PERIOD SET FORTH THEREIN.

ALSO, WHILE YOU ALLEGE THAT YOUR CLIENT'S CLAIM IS INCLUDED IN THE PLAINTIFF'S LIBEL (PRESUMABLY THE INTERVENING PLAINTIFF'S LIBEL), WE ARE ADVISED THAT THE INTERVENING PLAINTIFF (LITHUANIAN BALTIC LLOYD, LTD.) IN ITS PETITION STATES AS FOLLOWS:

"XI

"THAT THE PETITIONER HAS NO KNOWLEDGE OF ANY OTHER CLAIMS AGAINST THE SS DENNY OR THE FUND TO BE FIXED AS JUST COMPENSATION FOR THE SAID SHIP EXCEPT THE CLAIM OF THE PLAINTIFF IN THE ABOVE ENTITLED SUIT * * *.'

MOREOVER, THE INTERVENING PLAINTIFF IN WHOSE FAVOR THE JUDGMENT WAS RENDERED HERE IS THE LITHUANIAN BALTIC LLOYD, LTD., NOT THE LITHUANIAN AMERICAN IMPORT AND EXPORT CORPORATION.

IN ANY EVENT THE RECOGNIZED PROCEDURE REGARDING THE SATISFACTION OF A JUDGMENT IS THAT PAYMENT MUST BE MADE TO THE JUDGMENT CREDITOR, THAT IS, THE PLAINTIFF OF RECORD, AND IT HAS BEEN OUR PRACTICE TO FOLLOW THAT PROCEDURE. FURTHER, THE SECOND SUPPLEMENTAL APPROPRIATION ACT, 1955, 69 STAT. 38, 42, MADE FUNDS AVAILABLE FOR THE SPECIFIC PURPOSE OF PAYING THE JUDGMENT INVOLVED HERE AND SECTION 3678, REVISED STATUTES, PROVIDES THAT PUBLIC FUNDS SHALL BE APPLIED SOLELY TO THE OBJECTS FOR WHICH APPROPRIATED AND NO OTHERS. ALSO, IN CONNECTION WITH THE MATTER, WE DIRECT YOUR ATTENTION TO SECTION 3477, REVISED STATUTES, 31 U.S.C. 203, WHICH MAKES VOID ASSIGNMENT OF CLAIMS AGAINST THE UNITED STATES UNLESS CERTAIN CONDITIONS ARE MET.

IN VIEW OF THE FOREGOING COMMENTS WE WOULD HAVE NO AUTHORITY, IN THE ABSENCE OF A JUDICIAL DETERMINATION AS TO WHO CURRENTLY IS ENTITLED TO PAYMENT OF THE JUDGMENT IN FAVOR OF THE DEFUNCT CORPORATION, TO PAY YOUR CLIENT'S CLAIM OUT OF THE AMOUNT APPROPRIATED TO PAY THE JUDGMENT IN QUESTION.