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- Subject: EXXON CORP. v. CENTRAL GULF LINES, INC., Syllabus
-
-
-
- NOTE: Where it is feasible, a syllabus (headnote) will be released, as
- is being done in connection with this case, at the time the opinion is
- issued. The syllabus constitutes no part of the opinion of the Court
- but has been prepared by the Reporter of Decisions for the convenience
- of the reader. See United States v. Detroit Lumber Co., 200 U.9S. 321,
- 337.
- SUPREME COURT OF THE UNITED STATES
-
-
- Syllabus
-
-
- AEXXON CORP. v. CENTRAL GULF LINES, INC., et al.
-
- Bcertiorari to the united states court of appeals for the second circuit
-
- CNo.990-34. Argued April 15, 1991--Decided June 3, 1991
-
- DPetitioner Exxon Corporation and Waterman Steamship Corporation negotiated
- a marine fuel requirements contract, in which Exxon agreed to supply
- Waterman's vessels with fuel when the vessels called at ports where Exxon
- could supply fuel directly and, when the vessels were in ports where Exxon
- had to rely on local suppliers, to arrange for, and pay, those suppliers to
- deliver the fuel and then invoice Waterman. In the transaction at issue,
- Exxon acted as Waterman's agent, procuring fuel from a local supplier in
- Jeddah, Saudi Arabia, for a ship owned by respondent Central Gulf Lines,
- Inc., but chartered by Waterman. Exxon paid for the fuel and invoiced
- Waterman, but Waterman filed for bankruptcy and never paid the bill's full
- amount. When Central Gulf agreed to assume personal liability for the bill
- if a court were to hold the ship liable in rem, Exxon commenced litigation
- in the District Court against Central Gulf in personam and the ship in rem,
- claiming to have a maritime lien on the ship under the Federal Maritime
- Lien Act. The court concluded that it did not have admiralty jurisdiction.
- Noting that a prerequisite to the existence of a maritime lien based on a
- breach of contract is that the contract's subject matter must fall within
- the admiralty jurisdiction, it followed Second Circuit precedent, which
- holds that Minturn v. Maynard, 17 How. 477--in which an agent who had
- advanced funds for repairs and supplies necessary for a vessel was barred
- from bringing a claim in admiralty against the vessel's owners--established
- a per se rule excluding agency contracts from admiralty. However, the
- court ruled in Exxon's favor on a separate unpaid bill for fuel that Exxon
- supplied directly to the ship in New York. The Court of Appeals affirmed.
-
- EHeld:
-
- F1. Because there is no per se exception of agency contracts from
- admiralty jurisdiction, Minturn is overruled. Minturn is incompatible
- with current principles of admiralty jurisdiction over contracts. The
- rationales on which it apparently rested--that an action cognizable as
- assumpsit was excluded from admiralty and that a claimant had to have
- some form of a lien interest in a vessel to sue in admiralty on a
- contract-have been discredited and are no longer the law of this Court.
- See Archawski v. Hanioti, 350 U.9S. 532, 536; see also, e.9g., North
- Pacific S.9S. Co. v. Hall Bros. Marine Railway & Shipbuilding Co., 249
- U.9S. 119, 126. Minturn's approach is also inconsistent with the
- principle that the "nature and subject-matter" of the contract at issue
- should be the crucial consideration in assessing admiralty
- jurisdiction. Insurance Co. v. Dunham, 11 Wall. 1, 26. And a per se
- bar of agency contracts from admiralty ill serves the purpose of the
- grant of admiralty jurisdiction, which is the protection of maritime
- commerce, Foremost Ins. Co. v. Richardson, 457 U.9S. 668, 674. There
- is nothing in the agency relationship that necessarily excludes such
- relationships from the realm of maritime commerce, and rubrics such as
- "general agent" reveal nothing about whether the services actually
- performed are maritime in nature. Pp.94-9.
-
- 2. Admiralty jurisdiction extends to Exxon's claim regarding the
- delivery of fuel in Jeddah. The lower court correctly held that the
- New York transaction is maritime in nature. Since the subject matter
- of both claims--the value of the fuel received by the ship--is the same
- as it relates to maritime commerce, admiralty jurisdiction must extend
- to one if it extends to the other. P.99.
-
- 3. This Court expresses no view on whether Exxon is entitled to a
- maritime lien under the Federal Maritime Lien Act and leaves that issue
- to be decided on remand. Pp.99-10.
-
- G904 F. 2d 33, reversed and remanded.
-
- H Marshall, J., delivered the opinion for a unanimous Court.
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