^ 1 St4i| A_ UNIVERSITY OF CALIFORNIA LOS ANGELES SCHOOL OF LAW LIBRARY / s LAW BOOKS l.MI'I.V J'l'lSI.ISIIKI) IIV SAUNDERS AND BENNING, (succKssoits 'JO .1. iii'ri'i'Rwoinii and son,) 4:\, l'I.i:i:T-STlUiET. Tlic L \^V M Afi AZINT,; or QUAUTI'.IMA' UKVIKW of .IUIllSl'RUF)FA'Ci:, of wliirh T.n Num- Ihts lia\-i' already appi-arcd. Aiiion^'st tlic I'oiitoiits arc, --Constitution arul I'ractirc of the ('utniiioii La\k- Courts. --Principles and I'riuticc of I'li'aditiK. --Study of tlic Civil Law.--Clianccry llcforni.— Judi- rial Systi'iu and rroirduri'of rraii(i>.--('odification.—Stiia- Trials. —Administration of .liistirc in India.-- i'liursc of Study for Attomii's.— Livi-s of I'l-arne, Si-ldcn, Lords Hardwickc and Mansfield. --15roui:liain's . Durliam Si)eeeli.--Speeinions of Scotch and Irish I'loijnuncc— Series of Articles on Mercantile Law, Coiiveyancin!;, and Medical Jurispnidonce (to he continued). --Coimnon Law and Real I'roiM-rty Re- ))nrts.--A great variety of practical Articles on Douhtful Questions.— Digests containing all the Cases in all the Common Law, l^juity, ICcdesiastical, Privy Council, Insolvent arid llankruptcy Reports.— Abstracts of all New St:itutes.— Legal News. --New Publications, &c. &c. *»* No. 1 to (j, price 5.y. each ; and No. 7 to 10, price (It. each. (This work will he regularly continued.) The LIFE of a L.WVVI^R, written hy himself. In I'imo. price 10*. Cxi. boards. " There Is only ()«r<>tl»-i- .\\'riter in Dnr l.-inyiiai't^ «lio lias succeeded in a siinilur style, and it is no small praise to tlie Anilinr to s.iy that lie n scnil)lc.« I)i' Foo. W'r have no donlit that there is a ron.iidcrablir niiinhir of readers who cannot (.111 to be d^li^llt^•d wiili the Biiii|)lii:it.\ and originality of tliis piece of Uio'^rapliy, and who may be instructed by the lessons of practical prudence it conveys." Timts. A HISTORY of the Establishment and Residence of the JEWS IN ENGLAND; with an Enquiry into their Civil Disabilities. By John Elijah Blunt, of Lincon's Inn, Est]. Barrister at Law. Price Cis. bds. WEST INDIES--Substance of Three Reports of the Comniissioners of Inquirj- into the Administra- tion of Civil and Criiuin;il Justice, with the Commissioners' Scheme of Improvement. In 8vo. price 14*. PRACTICE AND PLEADING AT COMxMON LAW. 1. 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The LAW of LIBEL and I'ERSON AL DI-.FAMATION. By F. L. Iloi.T, ICsr,. Barrister at Law. The Second l-^dition. In royal 8vo. jirice ll.v. hoards. 10. A SYNOPSIS of iMOI)I:RN .medical JURISPRUDENCE; anatomically, physi(dogically, and forensically illustrali'd lor the I'aculty of Medicine, Magistrates, Lawyers, Coroners, and Jurymen. By J. S. Fousvi H, Surgeon, lic. Price lOv. Ql. hoards. MAKITIMI-: AND MEKCANTILIi LAW, &c. 1. A SUMMARY' of the LAW of BILLS of EXCHANGE, CASH HILLS, and PROMISSORY NOTI-S. By Sir John B.\VLi;v. Knt., one of the Justices of His Majesty's Court of Kinjr's Bench. The Fifth Edition, with consideralde Additions, editetl hy Francis Baylev, of Lincoln's Inn, E-=.q., Barrister at Law. In 8vo. price Ifjv. hoards. (Jn.tt iiublishrd.) '1. A DIGEST of the LAW relating to BILLS of EXCHANGE, PROMISSORY NOTES, and BANKI'RS' CHI'XKS; with an Appendix conUiining theStatutes and Precedents. By lIr.\R\ Uoscof., Es.v. hoards. .{. 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Sir Thomas Kirerton, Knt., Lord Kee|H'r of the IJreat Seal of I'nsrlaiid, for tlie remedy of sundry abuses in the Iliirh Court of Chan- cery ;" also " Orders agreed ujion by all the Six Clerks, for the better Covernnienl of themselves and their Clerks, in the Exercise of their several Oftices," neither of which have yet appeared in Print. By Erasnms Robertson, Escj. .'). A Treatise on Criminal Law. By Richard Whitronibe, of Lincoln's Inn, l^sq., Barrister at Law. *!. .\ Practical Treatise on the Law.^ of the British Coloides. Part L Of the ('olonies in which juirls of the Coninmn and Statute Law of Ensjland as well as the Acts of their Local Lesrislatures prevail. P. .rt 2. Of the other Colofiies in which tlie old Laws of Holland, France, and Sjiain are retaineil. By William Bursfe, Esq. of Lincoln's Inn, Barrister at Law, the late Attorney General of damaica. 7. A Dijjcst of the Criminal Law as altered and consolidated by the recent Statutes. By Etlw. E. Oeacon, Esq. of the Inner Temple, Barrister at Law. *»* This Work will be arranf^vd alphabcticaltij, ami ix intcuiled to combine the (idcantagcs of an Iiidrx, a Dicliunary, and a Digest. 8. A Collection of the Statutes of Practical Utility relating to the Criminal Law and Justices of the Peace, with Notes and Decisions thereon. By Joseph Chitty, Esq. Barrister at Law. !). Robinson's Magistrate's Pocket Book, or an Epitome of the Duties and Practice of a Justice of Peace out of Sessions, alphabetically arrani,;-ed with the Statutes and Cases brought down to the !' Geo. -J. inclusive. By John Tidd Pratt, P.sci. Barrister at Law. Second iMlition. 10. The Law Dictionary, c.xplaininir the Rise, Proirress, and present state of the Hritisli Law ; defming and interpretin-r the Terms or Words of Art, and comprisiinr also copious Information on the Subjects of Trade and Government. Fourth Edition. By Sir T. IL Tondins. In Two \'olumes, 4to. I I. A Summary of Colonial Law and of the Practice of the Court of .Xpiieals from the Plantations. By Henry Stephen, Serjeant at Law. 12. A Treatise on the Oflicc .and Responsibility of Trustees. By John Evans, of Gray's Inn, Esq. Bar- rister at Law. \'.\. The Sessions Circuit Companion, intended for the Use of Magistrates, Barristers, and Attornies, pra'tisinL' in the Courts of Oinirter Sessions ; and endu'aciiiir the entire I'roceeding of those Courts. By James Baldwin Mrowii, Escj. LL.D. of the Inner Temple, Hanister at Law. 1 I. A New Edition of Wood's Conveynneing. Ily S. F. T. Wilde, Es(]. l.'>. A New Ivlition i>{ Maron's Abridgment. By C. I'.. Dodd, of the Inmr 'I'eniple, l".>(i. Barrister at Law. W;. .\ New F.Jiw. 18. An entire New Digested Index of all the Reports, Decisiinis, and St.itulcs, in and relating l(» Chancery and Bankruptcy, commencing at the earliest IVrioil, down to Michaehnas Term 1S2!>. By I'.lwanl Chitty, of Lincoln's Inn, ICsti. Barrister at Law. Dedicated, by Permission, to the Right Honourable the Lord Chancellor. 11'. A Supplement to *' A Practical Treatise on the Law of Patents for Inventions," with Suggestions of Alterations in that Law. By Richard (iotlson, of Lnicoln's Inn, Es(|. Barrister at Law. 20. Tlie Practice of the Cinirt of Exchequer of Pleas, imder the late Act, 1 Will. IV. Cap. 70. anil according to the latest Authorities. With an Appendix of Forms, Precedents, and Bills of Costs. TREATISE ON THE MORTGAGE OF SHIPS, airvrteil liy llio utQmvv! ^ttsi; ON THE PROPER MODE OF EFFECTING MORTGAGES ON PROPERTY OF THIS NATURE; ON THE LIABILITIES OF THE MORTGAGEE. BY THOMAS ANTHONY TROLLOPE, OF THE MIDDLE TEMPLE, ESQ. DAHniSTEB AT LAW. LONDON : PRINTED FOR JOSEPH BUTTERWORTH AND SON, LAW-BOOKSELLERS, 4.'5, FLEET-STREET; AND J. COOKE, ORMOND-QUAY, DUBLIN. 1823. T T. Rogers, Printer, llrd-Lion-Strcil, Clcrkinwcll, Loudon. \fl TO TIIL lU(JnT IIONOI llAHLi: THE EARL OF LIV ERPOOL, FIRST LORD OF HIS MAJESTY'S TREASURY, PRESIDENT SOCIIVrV OF SHIP-OWNERS, S)C. S)'c. Sfc. niE FOLLOW I. NT, THE A T I S E IS, WITH IIIS LORDSHIP'S PERMISSION, RESrECTFULLY DEDICA lED. 783150 CONTENTS. Page Preface i Introduction xv CHAP. I. Of the Registry Acts ; viz. 1 dc ii Will. 3. chap. 22 ; and 2G Gee. :J. chap. GO, and 34 Geo. 3. chap. Gii, com- monly called Lord Liverpool's Acts 1 CHAP. II. Of tlie Effect of the Registry Acts upon Mortgages of !8 ; — not only tlial in point of practice, and perhaps of daily oceurrenee, siiips, and every disposeable interest in them, have been made the subject of mortgages; but that no doubt, up to this last-mentioned period, has ever been sug- gested in any of the numerous cases that have occurred upon tiiis matter, either at law or in equity, on the validity of such securities. Since however the passing of these late acts of Parliament it has frequently been contended, that there can be no valid mortgage of a ship; and although it is admitted, that sucli securities may now be continually resorted to in practice ; yet it is said that they rest merely upon the honour of the mortgagee ; who, provided the legal estate is duly vested in him, according to the forms prescribed by the acts, may refuse to I'RRFACn. Ill f^ive up tlio possession of tlic ship, upon tender, in the usual way, of his |)rincij)al money, inte- rest, and costs ; and tliat a court of equity is disarmed of all its usual powers of compelling- a redemption in such case. That the alienation of property of every de- scription, and in every manner, should be per- fectly free and unrestrained, has always been a favourite maxim of the law in this country; and if it shall be found that these acts of Parliament have really the effect of depriving the owners of property of this nature, of the power of raising money upon it, or of offering it as an effectual security for an existing debt ; it will not only break in upon this maxim, as far as it relates to a very frequent and important mode of ti*ansfer, but the consequences to commerce must be most inconvenient, and highly detrimental. That there is nothing in either of these acts of Parliament, directly taking away from a party having the possession of, or property in, a ship, the right of transferring that property to ano- b2 IV PRF.rAcr.. ther by \vay of niorttia^e, or tliat, c.v ?icccssitaic, c^epri^es the Court of C'lianct'iy of its po\\er of decreeing a redemption upon tlic payment of ^vhat may be found to be due up(jn a security of this nature, is evident. Had, indeed, any such direct enactment existed, the present question as to the validity of a mortgage, of course, would not have arisen ; and whatever might have been thought of the prudence or wisdom of the legis- lature in passing sucli an act, tlie consequences and effect of it would at least have remained unquestioned in these sheets. It is said, howev(>r, that llic right of mort- gaging a ship, or any interest therein, or rather the power of redeeming such property, after it may have been legally transferred to another, as a security only for a del)t or loan of money, although not absolutely taken away by any di- rect words contained in cither of thtvse acts of Parliament, yet is as effectually removed or de- stroyed, as if a clause had bc( n introduced in them expressly to that effect. !• i{ i: I A ( i: . V Those \>lio contend for tlie udiiinativc* of this propo!>ition iiinintain, cithrr that it arises as a certaiji and miavoidable consequence of some or one of the hist of the; rej^istry acts, viz. the 34th Geo. .'i. c. (>H ; or, that the disposition of a ship by way of mortgage, is quite inconsistent with the general spirit of both these acts of Par- liament ; ^vliich, hem^ in pari materia, are to be taken together, and considered as one act of the legislature. If, indeed, either of these no- tions are well founded; — if it be true, in fact, that any enactment is contained in these acts, or either of them, that cannot be fully carried into execution, without having the effect of overturning, as a necessary consequence, all the law previously existing in relation to the re- demption of ships assigned by way of mortgage; or if it be clearly and manifestly evident, that such mortgages are totally inconsistent and at variance, if not with the letter, yet with the general tenor and spirit of these acts, and Avith the intention and view of the legislature in pass- ing them, it may be admitted, however repug- nant such a notion may be to the long-acknow- V rHlll .\( K. ledged rules aiul maxims lolating to the aliena- tion of property, and however inconvenient and injurious the consequences of such a doctrine must be in a commercial point of view, that no transfer of a ship, or of any interest therein, by way of mortgage, can any longer have any vali- dity as such, but must be considered as an abso- lute assignment of the property, without any power of redemption continuing in the original owner. It cannot but be seen, however, how chmger- ous it always is, to depart from the plain and direct language that has been used in an act of Parliament, and to give an interpretation to any clause, not arising from the express w ords con- tained in it, but rather from what is supposed to be the meaning and intention of the legisla- ture. At least, before such an interpretation can be relied upon, tluit intention ouglit to be so plain and manifest upon the face of the whole act, that no judicial doubt can exist respecting it. The very existence of such a doubt, shews the ])ossibility, at least, that sueli an interpre- I'KKl Aci:. Mi tation is not consistent with the intention of the Icg^ishiture ; and every reason, therefore, for adopting- it, immediately falls to the ground. That this has not been universally received as the true interpretation of the acts now under consideration, is evident from what has fallen from Sir Thomas Plumer, the present Master of the Rolls, in a most elaborate judgment upon a case which, a few years since, came before him when Vice Chancellor ; and which we shall have occasion to examine more at length in the course of the following observations.* He there particularly declares it to be his opinion, that there is nothing in the reason, the letter, or the spirit, of these acts, which prevents a mortgage being made of a ship, provided the proper forms are observed ; and that the mortgage of a ship is just as good as the mortgage of any other chattel. He afterwards observes, that these acts decide nothing between two parties, who had obeyed the forms required by them ; and the Court must abdicate its power, were it not to ♦Thompson V.Smith. 1 Macld. 'SOo. viii }'nr.r\( K. prevent tlu- (Iffcndaiits in tliat case, -tlic as- signees of the mort2,agee, ^\\\o had Ixconie a bankrupt, — from (l<)in<>- an act which must be fatal to tlie phiintit^', tlie mortgagor. More than suflicicnt has been stated to shew, that Sir Thomas Phnncr was decidedly of opi- nion, that neither tlie spirit, nor what has been called the policy, of the registry acts, has de- manded so great a sacrifice to be made to them, as the giving up one of the most important branches of our equitable jurisdiction. Much is due to the authority of this learned Judge : others, however, seem to have come to a con- clusion very different from that of the Master of the TloUs ; and so much has fallen from another quarter in confirmation of this last opinion, — from one, indeed, who, both from Iiis eminent know- ledge in all matters, as well apiKrtaining to law as to equity, and from tlic great length of time he has filled tlic liighcst judicial situation in this country, necessarily demands oiirdcc|)cst atten- tion and consideration ; and whose oj»iiiions, judicially <\j)rcsscd. have every sancti]\nv\ jrcafiscon this subject, it w dl he endeax onred, — First, to [)()int out ^vluMlC•e the doul>t as to tlio viilidity of a mortgage upon sliips, whether well or ill founded, has arisen: Secondly, to take a view of the different cases that have occurred, as well in our courts of law, as in equity, in which this subject has been in- cidentally touched upon, or called for, or at- tracted the notice of, the bench : And, thirdly, to offer a few observations upon the spirit or policy of the registry acts ; so far, at least, as may be necessary for assisting the inquiry, whether that most beneficial branch of our equitable jurisdiction, under which the re- demption of mortgages has hitherto been regu- lated, must now, as far as relates to property in ships, be deemed to be taken away and de- stroyed, as inconsistent with, or repugnant to, this policy. It would have been too great a presumption in the person offering these observations, to ima- gine that any thing here stated by him could MI I'KKl A(K. liuM' any U'lidcuc'v lo rciultr tlit* law upon this important (piestion more ((.rtaiii than it is, or to remove any of the {h>nl)ts now existing respect- in:; it. Ilis ohjrct, inch-eil, will only be, to ex- amine and state the natmc of these doubts, and the j;rounds t)n which they ai)pear to rest. As mortjjjaij^es, howe\er, are continually effected on ships, notwithstanding tlie present uncertainty of the law respecting them, if not as a [)ledge for loans of money adxanced at the time of mak- ing such mortgages, yet as a security for exist- ing debts, a few remarks are intended to be added, — First, as to the liability of the mortgagee for the repairs or supplies furnished for the use of the ship : and, — Secondly, as to t!ie Ixst maimer of creating mortgages, so as to carry into execution the object and intention of both j>arties; namely, to afford as full and \ali(l a se( iirily to liini who is ad\ Miicin'j: hisnioncv. as I he nal nre oft he jdedge \mII ;nhni! : ;iii(!, ;it tlic -;iii r lin)e to pi«^serve vnv.iwcr.. xiii to the party giviiip^ this security (as far as may now ])e done), the power of redeeming his pro- perty, upon the payment of the money so ad- vanced, together with interest, and any costs or expences that may have been incurred in reco- vering such payment. INTRODUCTION. It bath been laid down as a general proposition, that all property A\batsoever, wbetber real or personal, may be tlie subject of a mortgage ; and that, >vhere the transaction between the parties, relative to the property in rpiestion, of whatever nature that property may be, has not been an absolute sale, but intended only as a security for a sum of money then advanced to, or owing by, the owner of the property, it must be con- sidered (if not at law, at least in a court of equity,) as, or in the nature of, a mortgage, and as such, redeemable upon the payment of the debt and interest, together with such costs as may have been incurred. And, in treating upon this subject, almost all writers have particularly taken notice that ships, wliother in port or at XVI INTRODIC riON. sea, althoii^li in tin- latt(M- casr tlir iiiunediate possession could not he delivered, were rnpahle of beinji; offered as an effectual security for a l(t;in or del)t, in the same manner as any other personal property. But since the passing; of the statutes of the 2(J Ceo. 3. cap. (iO, and 34 Geo. 3. cap. 68, ge- nerally knoM'n as Lord Liverpool's acts, consi- derable doubts seem to have been entertained, ■whether there can be any interest in a ship in the nature of a mortp;aj;e ; or, in otlier words, ^^hether a ))ill in ('(juity \Nill lie against a party, who, according to tiie rules and regulations of those acts, has the title duly vested in liim at law, for a redemption, m here the transfer was not intended as an absolute sale, but only as a security eitlur for a loan of money, or for a tlien existing dobt . in a case tliat some time sin<:e came bcforr the ])resent Master of tlir Rolls, then Vice-Chancellor, and ^hieh has alrt^ady been taken notice of,* that harnrd .ludge is * Pr^laco, pnzf" vii. ON THE MORTGAGE OF SHIPS, S^c. S;c. S;c. CHAP. I. Of the Regisby Acts ; viz. 7 <^- 8 JVi/L 3. cluip. 22 ; ajid 26 Geo. 3. chap. 60. and 34 Geo. 3. chap. 68, common/j/ called Lord Liverpool's Acts. More than sufficient, perhaps, has been ad- vanced in the Introduction, to shew the present uncertain state of the law, or at least the fluctu- ating o[)inion in the profession, with respect to the validity of the transfer of ships by way of mortgage ; or rather, as to the existence of any equity of redemption continuing in the party intending to transfer his property merely as a security for a loan or debt. And as the question depends altogether upon a true interpretation of the registry acts, it will be necessary to examine these witli some attention. B 2 Of the Rcij;istnf Acts. [iuw. i. By the 7tli and nth Will. :\. v^^\^. ±1, which Mas ])asse(l for n\<;ulating abuses in {\\v planta- tion trade onli), it is enacted,* " that, alter the " 'iolh ofMarcli 1().08, no goods or merchandizes " shall he imported into, or exported out of, the ** plantations, in any ship not huilt in England, *' Ireland, or the said colonics or jilantations." And hy the 17th section of tlie same statute, it is further enacted, " that no ship or vessel shall •' l)e deemed or passed as a shi[) ])uilt in Eng- ** land, &c. so as to be qnalilied to trade to or " from the plantations, until the owner shall ** register the same upon oath, l>efore the col- ** lector or comptroller of the port to which the •' said ship or vessel shall belong." The form of the oath is then given, by ^\hich the owner is required to give " a full and accurate description *' of the ship, and particularly, that no foreigner, " directly or indirectly, hath any share or inte- " rest tbcein." This oath, ])y the next section, after being attested by the proper oHicer, and registered by him, is directed to be delivered to the master, and a du[)licate of the register ti'ans- mitted to the commissioners of the customs in London, in order to be enter(Ml in a gen<'ral register. And liy tlie 21st se(!tion it is enacted, *' that no shi])'s name shall Ik^ afterwards • Sort. 1. (MM-. i."l Of the Rcgisty}) Acts. 3 '* ('lian,<;<'(l, w itlioiit roi^istering such ship de )iovo *' (v, lii( li is tli(;rol)y r^tly, "that ** wo foreigner, direetly or indirectly, hath any *' share or j>art, or interest in, the said ship or " vessel."* And by the 17th section it is en- *' acted, " that wlien and so often as the pro- • It is to be observed, that this oath is not rctjuirod by the act to be taken upon any transfer of a sliip from one owner to another, but only upon the first niakini^ the ret;is(ry and granting the certificate : and 1 have been infornud, tliat in fact this oath is ever taken, except when the register is first granted, or where a new register is granted, upon the old one being delivered up and cancelled. By the loth section, however, of this act, it is provided, that at the time of ob- taining tlic certificate of registry, a bond shall i)e taken front the master, and such owners of the ship as shall pecsonally attend, in the manner before mentioned in the act, in certain penalties, according to the burden of the ship : ami that the couflition of such bond (amongst other things) shall be, that if any foreigner, or other person for his use or benefit, shall purchase or otherwise become! entitled to the whole, or any part or share of, or any interest in such ship or vessel, then that the certificate of registry shall l)e deliver«Ml up within such time, and to such persons, as arc? respectively mentioned IJI tile act, accr>rding to tlie different stations or places in which (he iihip m:ty be at the time of such truiisler. f II \ I'. I.J Of the RcgLih'i/ /icU-. 6 " |)rrty in uny ship or vessel helon^in^- to any of *' his majesty's subjects, shall be transferred to "any otiier or others of his majesty's subjects, " in \vhole or in part, the certificate of theregis- "*' try of such ship or vessel shall be truly and *' accur.it<'ly recited in words at length, in the *' bill or other instrument of sale thereof; and *' that otherwise such bill of sale shall be utterly '** null and void, to all intents and purposes.'^ Tiie fi-rst case that occurred after the passing of this a(;t, was one that arose upon the transfer of a vessel, then at sea, by way of security for a debt, the validity of such transfer having been disputed, from the circumstance of there having been no recital in the bill of sale of the certifi- cate of registry, as is required by the last-men- tioned section. This case came on originally at law, an action of trover having been brought in the Court of King's Bench* by the assignees of Margetson, who had executed a bill of sale, and had afterwards become bankrupt, against Hib- bert and others, the intended mortgagees ; in "whose hands, also, the grand bill of sale,f as * Rolleston aiul others, assignoes of Margetson, a bank- rupt, r. jElibbert and others, 3 T. R. 40G. t The grand bill of sale, as distinguished from otiiers, is the instrument whereby the ship is originally transferred from tln' biiililir to the owner or first purchaser. 6 Oj the Rci^Lstry Acts. [chai'. i. wvW as a ])oli(\v of iiisnranci' on \\\v ship, had been deposited. Tlie (juestion in lliis case, therefore, Avas not, wliethir a jiood and etfectual mortiraiie of the vessel miulitnot lia\('l)een made between the parties, but only, whether an\ inte- rest whatsoever passed to tlie party to whom tlie bill of sale had been matle, by reason of there not having been a recital of tlie certificate of the registry contained in sucii bill of sale ; and the Court of King's Bench were of opinion, that the terms of the act not haying been complied with, the bill of sale was altogether inoperative and in- eflectual, either to convey, or to create any lien on, the property. It is to be observed, that in the argument for the defendants in tliis case, it was contended, that a written instrument was not necessary to pass the property in a ship; but the Court expressly avoided giving any opinion on that question, inasmuch as it did not arise from the circumstances of the case; lioldiug, since the parties had chosen to convey by a written instrument, that such instrument ah)ne must shew what the rights and intention of the parties were, and that they should not after- wards be permitted to refer to any other agree- ment. In consequence of this (kMision at hiw, a bill N\ as tiled in the Court ofCiianrcrN, l»v llilihcrt ( iiAi'. 1.] Of the Rcgistri/ Act.s. 7 and the otiicr (IclbiKlanl at law, a^^ainst the a.ssi<;iiees of Mari!;etson,* insisting that in equity they liad a c'ood ri^lit to hold the ship as a secu- rity for the money advanced by them ; and that as Mariietson, if he had not become a bankrupt, would, in ecjuity, have been bound to have made a valid assij^nment of the ship to them, or repaid them the money, so the defendants, his assignees, were bound to do ^^ hat he, the bankrupt, must have done ; and as the ship had been sold under a rule of the Court of King's Bench, and the proceeds invested in the joint names of Rolles- ton and Hibbert, the bill prayed that Rolleston might be decreed to join with the plaintiff Hib- bert in transferring such proceeds to the plain- tifi's in satisfaction of their debt. The bill was endeavoured to be supported upon the ground that a court of equity will establish agreements where the instruments made use of by the parties are, or have become, inoperative at law; as in the case of a feoffment without livery of seizin, or of a mortgage of a copyhold estate without a surrender. The bill, however, was dismissed ; and although no deci- sion was publicly given, it being one of the cases upon which Lord Thurlow, before whom * Hibbert v. Kollcstoii, 3 Br. C. C. 571. 8 Of the Rcgistrif Acts. [chap. i. it had been lieard, sent liis ju(li::in('nts to the Reg:ister of the Court, upon his rt>sii:;nini:; the seals, yet we have reason to know * tliat liis Lordsliij)'s judjiment was founded upon \\ liat has been' considered as the policy of the rei;:istry act,t inasmuch as the object of that policy, it is said, could not be obtained, if an equitable title to a ship could subsist, as ])arties iuii;lit rest upon tlieir equitable title, without taking any steps for procuring the legal title. In a court of law, it would seem that the case of Rolleston v. Hibbert could not possibly have been otherwise decided ; for, as the requisites of the act had not been complied witli, the bill of sale was inoperative so as to pass the legal estate, in the same manner as a feoffment can be of no legal validity without livery of seizin, or a bargain and sale under the act of 27 Hen. 8. without enrolment. In these cases, however, as in a variety of others which might be put, where the property intended to be conveyed could not pass at law, by reason only of some formal de- fect, a court of equity will give relief; and look- ing upon the defective conveyance in the nature of a contract binding upon the conscience of the * Viflc iiifr:!. t 20 Gto. :i. c.GO. Sec Mestarr v. (iill<--iiir, 1 I Vis. G'i">. CUM'. 1.] ()/i/n:Ju'i(istrj/.1i/s. f) pnrly, will diii'ct iiiin to make j^ood the It'iiul title. J5ut althdiiuli liiis \\ i'll-cstablishcd piiri- riplo of ('(jiiity clearly arose in tlie case of Rol- leston I'. llil)l)crt, l^oid Tliurlow seems to have tlioni::l)t himself hound, not hy the words of the act of l^arliamcnt, for those of the statute of in- rohnent are equally inoperative, but, as has been already observed, by the policy or general spirit of the act. The next case that called for a decision upon the act of the -iOth Geo. 3. arose upon a pcjlicy of insurance on tJie freight of a ship.* The ship in question had been purchased by four persons as partners, but had been registered in the names of two of them only. And the in- surance having been effected by three of the part- ners, the action ^vas brought in their names, and the declaration consisted of two counts; the first averring the interest to be in the three plaintiffs themselves, and the second averring it to be in them jointly Avith the fourth partner. For the plaintiff's it was contended, that although, under the statute of -IC) Geo. 3. they could make no kgal title to the ship, yet that they had an insurable interi'st ; forwliich jiurpose it was sulhcient to * Caiink'ii V, Aiukrsuii, -3 Ft iiii Uej). 709. 10 Of I lie RcL^i.s/n/ ulc/s. [( iiAi'. I. shew tliat they had an cqiiitabk inlort'st to entitle tluMn to the freight, the suliject matter of the iiisuiaiiee. The Court, howeNir, partieiihirly reeo.i;nizing- the authority of Ilihbert v. RoUestoii hclore Lord Thurh)N\, (U'ei(h'd, not only that the |)laintilVshad no legal interest in the ship, but that they had no interest Avliatever Avhieh could he tlie sul)jeet of an insurance. Tiiis case has aluii^s been considered as an extremely strong- and ^veighty decision ; for it is clear, that in an action upon a policy of in- surance, a court of h\\\ always takes notice of the doctrine of trusts, holding, according to the argument ujion which we have seen the plain- tiff's claim was endeavoured to ])e supported, that a cestui que trust has always an insurable interest. The Court, therefore, must, in this case, have been of opinion, that the two })artners whose names had not l)een inserted in tlie re- gister, although they had paid thi ir efpial shares of the purchase-money of the ship, could not be considered as having any equitable interest in the vessel, nor have maintained any bill in erpiity against the other two ])artners in respect of the same. Notw ithstandimr, however, the decision both of tlir Judges of tin; C')iirt of King's Hench, nnd ( iiAi'. 1. 1 Of tin Rcgistrij Ads. 11 tliat ol' lionl 'J'liurlow in a court ()l'<(jiiit y, in tlu; case of IliljIxTt r. Kollcston, snpjjortcd and con- firmed, as it allcrwai'ds was, l»y the last-inen- tioned case of Camden V. Anderson, \\liicli, for the reasons already given, we may look u})on as II decision declarini:; not only tlu^ l(^gc{l, l>'it the equitable, interests of the parties ; some doubts appear to have been still entertained whether property in a shij) mij^ht not ])e transferred, at least in equity, without a bill of sale, or some other instrument in writini;- ; or \\h< tlier a mere contract or aiireement for such transfer might not be valid. These doubts seem to have given rise to the .34tli of Geo. 3. cap. 08 ; * or at least, to such provisions therein contained as we shall now have occasion to notice. By the 14th section of this act, after reciting, *' tliat the clause in the former act requiring, upon " any transfer of a shi-p in wliole or in part, tiie " certificate of the register of such ship to be " truly and accurately recited in the bill of sale " in the manner herein-before mentioned ;"' and * It is to be remarked, that this act was passed previous to the decision in Caiuden r. Anderson. It appears to have re- ceived the royal assent on the 13th of Jinu; 171)4; whereas, according to the report of this case in Last, it was not dc- tiiUd btfore the Jth of .July foUowina. 12 Of the Rtgt.stri/ Jct^. [iw.w. I, riii'tlur rocitiii";', " (hat doulits had arisen Mhe- *' ther> hy the said provision, evt*rv transfer of " |)roperty in any ship or vessel was reipiired to *' he made l)y some hill, or other instrument, in *' Avritinii" ; and whether contracts or agreements " for the transfer of such j)roperty mij;ht not be " made w ithout any instrument in writing," it is enacted, " that no transfer, contract or agree- " ment ft)r transfer, of property in any ship or •* vessel, made or intended to be made, after the " first day of January 1795, shall be valid or " effectual for any purpose whatsoever, either •' in law or equity, unless such transfer, or con- " tract or agreement for transfer, of property in ♦' such ship or vessel, shall be made by bill of ** sale, or instrument in writing, containing such *• recital, as prescribed by the said recited act." By the next section, after reciting, " that by *' the laws then in force, upon any alteration of *' property in any ship or vessel in the same port ** to which such ship or vessel belonged, an in- *' dorsement upon the certificate of registry was *' rcfpiired to be made," it is enacted, " tliat " such indorsement shall, from and after the 1st ** day of January 1705, be made in the manner *' and form therein-after expressed ; and shall be " sigiud by the person or persons transferring " the p!(»|)(rfy of file said ship <»r vessel by sale, rn\!'. I.J Of tlw Ri'^'ulry Ads. 13 '' or rontract or agreement for sale tluM-oof, or " l)y soiiic person Iei:;ally anUiorized for that " purpose by iiiin or tlieiii ; and a copy of sucli " indorsement shall be delivered to the person " or persons authorized to make rej'istry, and '* ji,rant certificates of registry ; otherwise such " sale, contract or aji,reement for the sale there- " of, shall be utterly null and n oid to all intents " and purposes whatsoever." The form of the indorsement is then given, which is required to be signed in the presence of two witnesses.* The 16th section provides, " that if any ship *' or vessel shall be at sea, or absent from the " port to which she belongs, at the time when *' such alteration in the property thereof shall " be made as aforesaid, so that an indorsement •' and certificate cannot be immediatc^ly made, *' the sale, or contract or agreement for the sale * The form of the indorsement given in the act is as fol- lowsj " Be it remembered. That [I or we] [names, resi- •* dences, and occupations of the persons selling] have this " day^sold and transferred all [my or our] right, share, or " interest in and to the ship or vessel [name of the ship or •' vessel] mentioned in tlie within certificate of registry, unto " [names, residences, and occupations of the purchasers]. " Witness [my or our hand or hands] tliis [date, in words at *' full length]. " Signed in the presence of [Two witnesses.]'* 14 Of the Rtiiisny AcLs. [( hai'. i. " thcrcor, sluill, iiotw itlistaiulinu,, l»c iiuuli' hy a " hill of snlc, or otluT instniment in wiitinu,', as *' before (lircctcd ; and a ro[)y of sucli hill of *' sale, or other instrument in writinp;, shall he " delivered, and an entry thereof shall be en- " dorsed, on the oath or affidavit, and a me- *' moranduni thereof shall he made in tiie hook ** of reg^isters, and notice of the same shall h<^ " niven to the commissioners of the customs in ** the manner therein-before directed ; and with- " in ten days after such ship or vessel shall re- *' turn to the port * to m hich she belon.cs, an *' indorsement shall be made, and sii:;ned by the " owner or owners, or some ])erson le,i:;ally " authorized for that |)urpose by him or them, *' and a copy thereof shall be deli\ered in man- " ner herein-before mentioned ; otherwise such " bill of sale, or contract or agreement for sale "thereof, shall be utterly null and Aoid, to all *' intents and ])urposes whatsoever ; and (uitry " thereof shall be endorsed, aiul a memorandum *' thereof made, in the manner herein-lx-fore *' directed." * It is t<» 1)0 ohsorvcd, tliiit :i1i1i()iil;1i, willi r«s|)( ct to any transfer or sale ot a sliij) wliik' at sea, it is provided that the imlorsemont of such Iranster must \h' made w ithin ten days after the return of the ship to the port to which slie Ik Ionics, yet no time is limited as to the makint; sucii indorsenunt, with respect to the transfer of ships in port. t as to till' iudorst'MU'iit upon tlu' cert ili- catr <»r r(\i;istry ; and \> iiicli was coniplt'trd vitliin the ten days limited and all(>\vud l>y tlie last-mentioned act, alter the return of the vessel to the i)ort to wiiieh she behjnj^ed. It further appeared in e\idenre, that the bankrupt, when he executed the assii::nment of the ship, did not deliver u[) the possession of the orij^inal bill* of sale, but the same continued in his own custody till after the time of his bankruj)tcy. A verdict liaving- been found for the ])laintifl's, and a rule afterwards ol)tained in tlie Court of Kinp;'s Bencii, for setting; the verdict aside and ;LJ,rantin^' a new trial, this rule was resisted on tlie two following grounds, \'v/.. first, Ixm^uisc the origi- nal bill of sale not liaving been delivered over to the defendant at tlie time of the assignment, but kept by the baiikru[)t in his own i)ossession, such assignment was void under tlie statute 21 Jac. 1. c. 19; and secondly, because the re- quisites of the registry acts not having been com- ])lied with l)efore the bankruptcy, the sale was not then complete, and therefore of no effect ; a'ld the verdict was established by the judgment of the Court. As the grounds, however, on • Mtaning, it is presumed, M'liat is usually tcrnud \hv prand Will of >alc, or instrument by which the ship is ori<;inally trau>ferrtd IVum the builder lo the owner or fn>t purchaser. c-iiMv I.] Of the Registry ."lets. 17 >\lii(li it had hccii siippoitrd were perfectly dis- tinct from eacli other; the one having reference to, and restinij; nj)on, the statute of 21 Jac. 1., and tlie other iii)on tlic registry acts, it will }>e necessary to pay particnlar attention to what fell from the Court in {giving its judgment upon the case. Mr. Justice Lawrence, and Mr. Justice Le Blanc, were the only judges before whom it had been argued ; and Mr. Justice Lawrence, in delivering the opinion of Mr. Justice Le Blanc and himself, after having noticed the particulars of the case, and the two distinct points ^^hich had been taken in the argument, intimated, that as the Court were of opinion with the plaintiffs on the second point, it was unnecessary for him to say any thing on the first. It may appear, perhaps, somewhat singular, that the learned Judges should have taken this course in giving their judgment, — that they should have passed by that upon which it is humbly conceived it might have rested, as upon a well-known and certain foun- dation ; and rejecting this, that they should have elected, as it were, the new, and at least uncer- tain, ground afforded by the registry acts, as ap})lical>le to the case before them. It is evi- dent, that there is nothing in either of these acts which could directly apply to, or m hich, ex ne- cessitate rei, must have governed or decided the question. Mr. Justice Lawrence, having cited c 18 Of the I\ci>;istni Acts. [chap. i. tlic KJtli si'ctioii id" llie ;> 1th (uo. ;3. v. (18, direct- ing the indorseinent to be made on the certihcate of registry \vithin ten days after tlie return of the sliip or vessel to the port to which slie belongs, and declaring that otherwise the bill of sale, or agreement for sale, should be utterly null and void to all intents and purposes whatsoever, did not put the case as falling within the words of this clause of the act ; but such being the words of the act, he said, he thought the public would be most effectually served ])y holding, that no interest should pass from any owner in British ships to any other, until the public had that in- formation which was so essential to its commer- cial welfare; and that the objects of the parties to such contracts would be best consulted by allowing the longest time to comply with the requisites of the act, so as that which was meant to operate as a certain means of compelling men to give that information were not destroyed or weakened. And this, it was further remarked by the learned Judge, would be done by con- struing the statute as enacting, that no bill of sale, or other sue h instrument, should have any operation or effect, until the requisites imposed on the parties to the sale were complied w ith,* 1 1 woulil siciii to follow, as u necessary conso. i. the circumstiinces, bcon ii;;htly drridrd ; Imt it is to be observed, they rest that (>j)ini(iii iijk u grounds very diflereut from those taken by tlie learned Judges, ])y \vlioni tliat judi::nient was p:iven, reniarkinj;- that tliere was j:;ross (h lay in that case in complying with the forms of the act; whereas it was never attempted, either at the bar or by the Court, to ])ut that case upon the ground of delay in performing these acts; but the whole case was made to rest upon the inabi- lity of the vendor to perform tliem after his having committed an act of bankruj)tcy. In the case then before them, however, the Court con- sidered that, according to the true construction of these acts, the bill of sale should be holden to transfer the property from the time ol its execution, but should be liable to become void ex post facto, that is, if the party did not comply with the requisitions of the statute within a rea- sonable time; upon the failure of wliich the sta-. tute made the sale null and void. The same question shortly afterwards arose in a case before the Lord Chancellor,* in wliich his Lordship expresses his decided approba- tion of the decision in Palmer r. Moxou, and assimilates the principle of these cases to that of * Dixon V. twaii, :{ Mnivali , '.Vl-1. ciiAP. 1.] OJ' the R(<{i.snj/ Acts. 25 such :is liavr arisen under tlie annuity act, })y which it liad hecn tlccidcd tluit the j^rant of tlie aruiuity passes the ownership instantly, subject to l)e
  • Of the Rcgistrif Acts. [chap. i. (lor, ami passinj:; no interest, ini^ht hv pcifonm-d by the hankrupt himself; and tliat (as in that case) if* the vendor had given a po\ver of attor- ney to perforin this act of duty previous to the haukruptcy, his attorney might carry it into ('fl'et:t notwithstanding the act of bankruptcy had int«rnu'(liately occurred. His Lordship then said, that he should act on the authority of the Judges so communicated to him, as if it were the settled law of the case ; which, indeed, upon looking into the acts of Parliament, and consi- dering tlie opinion delivered to him, he tiiought that it was. But, if any of the parties should think otherwise, and should chuse to have a case for the decision of a court of law, he would give it them. It does not appear that any case was applied for, we may therefore look upon this point as being completely set at rest. The ground of the Lord Chancellor's judg- ment in J)i\on V. Ewart, we liave seen, was tiie \ali(lity of the bill of sale in passing the legal estate, subject only to be subsequently rendered void by the non-compliance with certain forms made necessary by the registry acts : for, if the bill f>f sale could have been considered as hav- inu h;i(l jmv «n"«(l in niving the party an ecpiita- riiAP. I.] Of the Jlcghlry Acts. 27 l)lc interest, as distinct from tlie l(\2,al interest, there could have l)een no necessity to have sent a case for the decision of a court of law ; nor would tlie Lord Chancellor, it is presumed, have seen occasion to have consulted witli the com- mon law Judj;es upon the point before him, but would have decided the case upon its equitable circumstances. CHAP. II. Of the E/Ject of the Registry Acts upon Mortgages of Ships, and particularly upon the Equity of Redemp- tion. In the case of Dixon v. Ewart, taken notice of at tlie end of the last chapter, the Lord Chan- cellor declares, tliere is no doubt that there can be no such thing as an equitable title to a ship ; and after alluding to the case of Thompson v. Smith before referred to, his Lordship remarks, that when the former act passed, there was not suflicient attt'ution paid, in framing its enact- ments, to what might be its effect upon the prin- ciples adopted in courts of equity ; and it was to remedy that deficiency that the last act was in- troduced, by wliich it is now completely esta- 28 ^>i7'i'i'' of the Registry Acts [iwxv. ii. Mislicd tlj.'it there ran he no siuli ihiii;^ as tlie e<|uitahle ownership of a ship. The case of Dixon r. Ewart ocmrred a short time after that of Tlionipson v. Smith, whieli has been already alluded to, and \vhich it will now he necessary to examine somewhat more at larf::e, hut having been led into a discussion of the doc- trine advanced in tlie case of Moss r. Charnock, and wliich we may consider as only havinj;- l)een finally disposed of by that of Dixon v. Ewart, we were naturally induced to take notice of it in the first instance. In Thomjison v. Smith,* a l)ill of sale of one third part of a ship then at sea, had been exe- cuted by Llew ellyn, the owner, to the plaintiffs, for the purpose of indemnifying them against the payment of a bill of exchange, w hich they had indorsed on his account, with a power of attor- ney enabling the plaintiffs, on the return of the shij) into port, to procure the necessary indorse- ment on the certificate of the registry, and to do all such other acts as might be requisite to com- plete the bill of sale, l^reviously, however, to the execution of the bill of sale \o tlie plaintiffs, and without their knowledge, Llewellyn iiad • 1 .Miul.ijyo. CHAP. II.] ttpori ][ fort gages of Sliips^ 8^c. 29 execulod another l>ill of sale of his third part of tlie ship to tlie defendant Smitli, for the j)urpose ofsecurini^ the payment of 35(j/. This debt was afterwards paid oft', at the instance of the plain- tift's ; bnt Smith, nevertheless, refused to give lip, cancel, or assign his hill of sale, but by another bill of sale re-assigned all his interest to Llewellyn himself. The ship being all the while at sea, with the certificate on board, none of these bills of sale had been, nor were they ca- pable of having been, indorsed on the same ; but all the other forms of the act had been duly complied with, as to each of the three transfers. Llewellyn having afterwards become a bank- rupt, and a large sum of money remaining due to the plaintiff's, in respect of what they had paid as indorsees of the bill of exchange, they tiled their bill in the Court of Chancery, pray- ing that the assignees of the bankrupt might be restrained fi'om indorsing, or procuring to be indorsed, on the certificate of the registry, a memorandum of the h\\\ of sale from Llewellyn to Smith, or of that by whicli the re-assignment was made from Smith to Llewellyn ; and from doing any act to prevent or hindt^r the plaintifi's from procuring to be indorsed on the said certi- ficate, a memorandum of the bill of sale to them, until they should have been fully paid and satis- fied the monov remaininir due to them. 30 Effect of the Registry Acts [chap. ii. From tlu' above statement it appears, that the legal title was in the assignees of Llewellyn the bankrupt, under the re-assignment from Smith to him previously to his bankruptcy ; but the plaintifl's rested their rase ii])(»n their equitable title, as arising from tlie bill of sale executed to them by Llewellyn, of the 3d of I)ereml)er 181 1. To this it was ol)jected on tiu' Ix half of the assignees, that since the registry acts there could be no such thing as an erpiitable title to a ship, and that, as the transfer from Llewellyn to the plaint ifVs was ineflectual and invalid at law, the legal estate, at the time of such transifer, hav- ing been in Smith, under the original assignment to him, it was equally ineffectual and invalid in equity ; and that the title must be in them, Mhom the |)ublic documents designated as the owners. And it was further insisted, that there could be no such thing as an equity of redemp- tion in a ship since the registry acts. It l)e- comes material here to remark, that two very distinct |)ro|)ositi()ns were advanced in this argu- ment ; first, tliat since the registry acts there can be no sucli thing as an equitable title to a ship ; and secondly, that since tlie passing of these acts, tiiere can be no such thing as an equity of redcTUpt ion in a sliip. it is tlie latter of these propositions wliich we h;i\e more particu- hnly to exaiiiine ; but as they appear lo have CHAP. 1 1. J Upon Mortgages of Ships, ^c, .31 been often confoundetl toi^ether ; and, indeed, as tlie very idea of there beinj^ no such thin^ as an equity of redenn)tion in a ship seems to have arisen from the notion that there can l>e no such thini>- as an equitable title to a ship, it will l)e useful, and indeed necessary, first to ascertain how far tliis notion is correct. In support of tliis proposition it was contended by the counsel for the defendants, that, in several cases, courts of equity had refused to j^ive effect to an equita- ble title ; and they principally relied on two cases that had then lately been decided by Sir William Grant, then Master of the Rolls. In the first of these,* a bill had been filed by the ai5- signees of a bankrupt, under the following cir- cumstances. Dawson, together witli another person, his partner, being the owners of a ship wliich was thcMi at sea, on the 2.3d of Ajiril 180B, executed a iiill of sale to Bland and another, and a copy of the bill of sale had been duly sent to the commissioners of the customs, according to the act. of 34 Geo. 3. Some time in the month of May following, Bland and his [)artner became banlvru[)ts, and the plaintiffs were appointed tlieir assignees ; and in the same month, Daw- son and his partner also became bankni})ts, and the defendants were appointed tlieir assignees. ' Ni'wiiluuu ;. Gravis, 1 Mad. 391), iioto. 32 ^/A'/ of the Rcgi^itry Ads [en \v. ii. On lln' :)l>t of July in tlic sanu- ycnir, the ship arri\t(l in London, being the port to \vlii('h slie belon.ii^ (I, and the phiintift's innnediately took actual i)Ossession of the vessel, and applied to the captain for the certilirate of the ie;;istry, for the pui[)ose of procnrinji; the necessary indorse- ment, Avithin the ten days limited and reqnired by the act, after the ship's arrival. The eap- tiiin, ho%ve\('r, actini;- in collusion Avith the de- fendants, the assiijjnees of Dawson and Co., re- fused to deliver up to them the certificate, and the ten days elapsed without any sjuh indorse- ment ha\ini;- l)een made. It was admitted by the assij:;nees of Dawson and Co., that applica- tion had been made to them to direct the captain to deliver up i\w. certificate, and that they had refused so to do. L'nder these circumstances, the ef[uity of the case, according? to the princi- ples upon which these courts arc invariably in the habit of actinjj;, was clearly w it li 1 lie j)hiin- tifls. The Master of tlu' Rolls, however, was of()j)iuion, that the statute .'J4 Geo. 3. was im- perative upon the Cy«)urt, and precluded him from jnivinii: any relief, and tliereior*- dismissed the l)in. Ill the otiier case * relied ii|)on for the def<'ndants, llobson, who afterwards became a bankrupt, on the .')d of Alarcli IJil-i, had (>\e- • Barker r. Clmpmiin, 1 iNIad. jcigc 100, iiolc ( iiAi'. II.] n])(i}i ]\ fort viz. that since the rej^istry acts tlierecan be no such thing as an Cfjuity oJ'rc(lcj7iptio)i in a ship, apj)ears to have beenhrst brought forward uj)on tliisoccasion; and seems, indeed, as before remarked, to liave arisen out of, and as a corollary to, the proposition we " ;Jt (iio. 3. c. (JJ3. s. 14. CUM'. 11. J iipo)i A/orlgr/gcs of S///p.s\ fy\ rio li;i\ r jilrcady oxaniiiifd. Il, indeed, tlie decision of" tlie \ ic«>-('liaii( cllor in Tlionjpson v. Sinitli is now to be considered as indisputable, and tliat ail e(jMital)le title to a shij) may exist as distinct IVoni tliele<2;al title, notwithstanding- the registry acts, it is very diflicult to imagine upon what grounds it can he maintained, that there can be no valid mortgage of a ship. His Honor, how- ever, went very fully into this point also, and remarked, that the power of mortgaging shij)s existed before the acts in question, and that they had not taken that power aAvay : that there was nothing in the reason, the letter, or tlie spirit of them, which prevented a mortgage of a ship, pro- vided the proper forms were observed ; and that a mortgage of a ship was just as good as the mortgage of any other chattel. And afterwards, in giving liis fmal judgment n|K)n the case, his Honor declared, that the mortgage of a ship was like the mortgage of any other chattel, and sub- ject to all the principles laid down in courts of equity relative to such mortgages. It seemed to him, he said, an alarming proposition, that if a ship worth .£ 10,000, ^^as mortgaged for £lOO, there was no other than an honorary engagement to return the ship on repayment of the £100 ; and therefore if, in such a case, the mortgagee became bankrnpt. his assignees might claim the absolute right to the shi[). That belore the re- V 2 36 J\ff'^'ct of the JiCi^n.^tn/ Acts [chap. ii. gistry arts ships nui:,lit li:i\r Ixtn, and con- stantlv \M'rr, in(>rtu;agt'd, ami \\\v I'ltn' transfer of" j)ro|)t rty had ahvays hccu t'liconram^d ; and that the registry acts nncic intended lor the hc- netit of Britisli owners, and of trade and com- merce; l)nt if it wvvv true that tliey operated to deprive the owners of their former ri^ht of rais- ing money l)y mortgage, the conse had suj)plit(l some of tlie sliips with stores, &c. proved their debts upon the separate estate of Nantes ; but a claim having been made to the sliii)s by the joint cre- ditors of the j)artnership, the bill ^^as filed by different parties, some of whom having supplied the ships with stores, and others as ship- builders, had become creditors in respect of the ships, praying, that they might be declared to be the separate estate of Nantes, and therefore applied in the payment of his separate creditors. This claim was resisted by the defendants, the as- signees under the commission, upon the ground that the ships had been paid for out of |)artner- ship fvnids, and the earning and |)ronts placed to the partnership accounts, of which facts conclu- sive evidence was given, "^riie Lord C'iiancelhu-, however, conceived that the cascciinir ^^illlill those of HibberttJ. Rollestonand Camden v. An- derson before noticed,* :»nd tliiit tlic !t •^:d pro- Sec |»Hgt s '} iind i», siijda. CHAP. III.] Upon Creditors i)i Bankruptcy, S^c. 3.0 perty in the ships beinj*- in Nantes solely, it ou^ht to he (listrihiitcd amonu:st his se|)arate creditors. It was furtlicr contended on hehalt" of the defen- dants in tliis tase, that the ships liavinj^ ]>een in the order and disposition of the partners Chis- well and Nantes, they ou«i,ht to have been con- sidered as their joint j)roperty by the operation of the statute of James 1.* Ilis Lordship, how- ever, admitting tliat, if the fact had so been, that arpiment mii^ht {)ossibly have been sus- tained, was of opinion that it did not appear, from the circumstances of tlie case, that the ships had been in the order and disposition of both partners, so as to bring the case under the last-mentioned statute. The decree, therefore, declared the shi[)8 to have been the separate pro- perty of Nantes, and directed it to be distributed amongst his scj)arate creditors as such. In this case we perceive there was no conflict as to the operation of the different statutes, inasmuch as there was no evidence! ])efore the Court of the • 2lJ;ic.l. c. 10. s. 10, 11. t From tlie report of the case it certainly appears, that evi- dence was entered into by both parties on this point ; but the Lord Chancellor was of opinion, that nothing: had been brought forward by the defendants for the purpose of shewing that their ships had been dealt with as partnership property, sufficient to overthrow the presumption arising from the fact of their havini: been resfistered in the name of Nantes alone. 40 Effect of t lie Ri^islrij Acts [( hap. hi. vessels liavinu ')i't'n ostcnsildy eoiisiclired, or dealt with, as partnership property. The next case, however, Ex parte Yallop,* expressly called for the derision of the Court upon this important point. The rpiestion in His Lordship further remarked, that for tlio purpose of con- sidorinsr tlic ships as the joint propfity of the partnership, under the o])eration of the statute of .lames I., they must have been in the order and disposition of both partners at the time of the bankruptcy; but that, in fact, by the previous death of Chis- well, the ownership must, at the date oftlie bankruptcy, have been with Nantes only. From this latter circumstance it would seem, that there had not been any occasion to have j^one into evidence for the pur- pose of proving in whose order and disposition the ships had been previous to the death of Chiswell. Evidence of this na- ture havinir, however, been stronsjly relied upon ; and a fur- ther inquiry, indeed, having been directed by tiie Court during the progress of the case to be made, with a view of establishing this point, (from which inquiry, however, nothing seems to have resulted) ; we must naturally conclude, that his Lord- ship's judgment would hfive been influenced by such evidence; and that had it been shewn that the ships had, in fact, been in the order and disposition of both partners, the decree would have directed the property to have been distributed amongst the joint creditors. In this way of considering the casi; of Cur- tis t'. Perry, it seems to be an authority to shew that the rules and rcculations of the registry acts eannot be strictly enforced iindt I < IK iintstanees in which their observance would niiiilate against the principles oftlie sliiliilc of. fames. CUM'. Ill] upon Cnditors in Baiikruplcy, S^c. 11 fact l»tiiiu", \\lH'tlH'r the regulations of the regis- try acts should hv. re(|uired to he literally fol- lowed, under eircninstances in m hirh they must necessarily supersech' the j)ro\ isions of the sta- tute of .lames 1., nr wliether these; provisions were to he considered as still in force, when, if carried into effect, they must so far defeat the ohject and intention of the latter acts. The sliip J!luphrates liad l)een jiurchased hy Cook and Iler!)t'rt, rarryini;' on Inisiness to^2,'e- ther iu partnersliip as mercliants, out of the partnersliip funds, hut had been registered in the name of Cook only. A joint commission afterwards issued aii;ainst Cook and Her])ert; and it aj^peared that l)()th partners, in all re- spects, except as to the registry havinjc been made in tlie name of Cook only, had been in the visible ownership of the vessel ; so that under the statute of 21 James 1. it must have been con- sidei'ed as the property of tlie assignees under the commission, and divisible amongst the joint creditors of the bankrupts, unless the registry acts, witli respect to property of this nature, were to be considered as liaviug repealed that of James, Tiiis case came before the Court uj)()n the petition of a joint creditor of the l)ankru|)ts, and was chiefly supported u})on tlii>: uround, \iz. tlie \ f^ssei's ha\iim" alwavs hen in f!>e rnvh^r \1 EjJ\'ct of Uic Rc::U/n/ Acta [cn.\r. iii. and disposition of ludli the bankrupts; that beinj;' tlir only j)oint, indeed, l»y \vlii(li it ccndd \\v\\ \n' distini;uished from that of the late case of Curtis V. Perry. The Lord Chancellor, how- ever, was of opinion, that as Herbert himself, nnder the circumstances of tiie case, could have had no ( laim auainst his ))artner, so tlie joint creditors of tlie partnership were not in a better situation to su})})ort their claim under the sta- tute of James, as a<;ainst the separate estate of Cooke, llavinu; first declared, tliat no dealing in respect to the sliip could make it }>artnership property as between the partners, as that w ould be a direct infrini!;ement of the acts of Parlia- ment, his Lordshij) stated, that a distinct (pies- tion arose, whether, though it could not be so taken as between the partners themselves, the ship, if dealt with in that manner, ons^ht not, upon the statute of King James, to be consi- dered as partnership pro})erty ; w hether it was so held, that the joint creditors could say it was partnership projx'rty i)efore tlu; bankruptcy ; or, on the other hand, the title being of a public register<(l n;iture, th;»t |)ublic registry must not decide, as among all mankind, where the pro- perty was. His Lordship then declared his o|>inion, that the registry was the evidence of the prnjKiiy, and nmst be taken to be the evi- dence (-fit < vi. THAI', in.] Kpon Crcdit07\s inBanki^iiptcy, 8^r. 4'> the Court, in f^ivin*^ tlieir judgment, seem lo consider the registry acts as in any manner con- fhcting- with that of Jac. 1., but decided the case uponthe point u})on uliieh it had been argued. In the next case, however, which we have to men- tion, the question, whether a party claiming under a bill of sale, duly executed according to the re- gistry acts, ])ut without having taken possession of the ship, can protect himself against the cre- ditors of tiie vendor (a bankrupt), claiming un- der the statute of 21 Jac. I., was expressly brought before the Court. The circumstances of the case, as far as they ajflect the present question, were as follow.* Robinson, Clark.son, and Parker, being owners of the slii}) A\'arre, which was then at sea, executed a bill of sale of the shij), and her freight and earnings, to Messrs. Sharps, as a security for such advances as had then been, or might afterwards be, made by them ; and upon the return of the vessel into port, it w^as duly registered in their names, and all the forms of the act complied witli ; but Robinson and company continued to exercise all the ordinary acts of ownership. Both Robinson and company, and the Sliarps, afterwards be- * RoLiiison v. M'Donnell, Stlw. N. P. 1142 ; since reported in 5 Maule & Selwjn, 228. 4(i ^\//^'^'^ l)J the Ri^l.shlj y/(7.y [(HAP. 111. caiiK' ])aiikru|)ts ;* and at Uie prriod of the ])aiikrii|)t{'v oftlie t\>() houses, tliere uas a debt lit, between their resj)ective creditors; and the Court of Kin«;'s Bench was of opinion, tliat the case fell ^vithin tla- statute of 21 .lac. 1., and that tlu^ cir- cumstance of Robinson and company havin«>- been the ostensible owners, must prevail anij»<)S(s ol |)nblic policy, and * According to tin- statenu'iit aiiki ii|it< N dI tin liilli i , iIk \ iiiii:lil liavr inaiii- taiiicd tliat |)()ss(>>i()ii a[;airi->l llic assi-^ni aiiy. tn\i'. HI.] upon Crcditor.s i/> BfUihruplcij, S^-r. 17 tlial iIm' mcasiii-cs adopted for cflVctin,!;- llial ol)ji'ct wvYv. such, lliat <'\t'ry ])<;rsoTi claiinin^ title tlnoii^li the medium of a conveyance, a.s the act of parties, must shew a conveyance of tlie form and character prest^ribed hy tliose statutes. Tliat the phiintiffs (the assignees of Robinson and company,) did shew an original title in the bankrupts, whom they represented, grounded u|)on such conveyances, which title had not been divested as against them (they being the representatives of the general body of creditors) by any other conveyance. It was admitted, his Lordship said, that deeds alone, in the case of an unregistered ship, would not have that effect; and the Court were of opinion, that tlie registration and new certificate could not pro- duce it. His Lordship then further remarked, tliat these statutes did not affect titles passing- bi/ operation of law, as to executors or adminis- trators, in case of death, or to assignees gene- rally, in case of bankruptcy ; — that in these cases, a title might be transmitted without any of the forms required by the statutes ; and that, if a title might be transmitted without these forms, in cases of bankruptcy generally, the Court saw no reason why it migiit not be so done in a particular case, falling witiiin the scope and operation of the statute of James, though these forms liad licen conn)lied with in a conveyance 40 Effect of lltv Rcgistri/ Jc/i [( fiai'. hi. to another, that is to say, to tlu^ Sljarj)s ; sucli convryance ln'ini;' iVau^ht uitli all tlu' iniscliicf \\lii(li that statute was meant to prevent. — Tliat the reiiistry acts made certain forms necessary to the validity of transfers and conveyances, which antecedently would have been good and valid \\ ithout them ; hut that it was never in- tended hy tlie legislature, that a compliance with these forms should i^ive validity to a trans- fer and conveyance, which antecedently would have been bad and invalid; and that the Court were of 0[)inion, that such an effect ought not to be attributed to thcMU. The bill of sale, therefore, ^\llieh had been executed by Robin- son and company, to the Sharps, was declared to be void as against the assignees of the Cornier; and judgment was given for tiie plaintiffs, both for thr shij) and freight. The same cpiestion slmrlly aficr\\;ii-ds eanie again b(>fore the Court <»(" Kings licnch," when the eonnscl foi" tlic (hlciKhint, that is to say, the party claiming under the registry acts, against the assignees of a banlvrui>t, who had executed the assignniml, but had continued to receive the profits ol the ship, and to exercise all the usual acts of ow n( r-hip, niidrr an agree- ♦ lluy i. I-aiili;»iii. l niuii.c'v ALL i;>:}. CM VI'. iii.l upo)i Creditors ill Bai/hrftptri/, ^r. 4U iiu'iit ovprossed ill tlir hill of s;ilo, admitted tluit lu^ roiild not (listinmii.sli tlu' cas(; from that of Hohinson r. M'Domu'll, and jwdj^ment was cous{'(|[U(Mitly j;i\('n for the plaintills. This rase camn afterwards liefore tlie Court of lv\rhe(juor Chamber, on a writ of error,* M'hen it was contended, on the behalf of the plaintiffs in error, first, that there was not suf- iieinj>^ in- jured hy false credit, derived from apparent or reputed^ownership : — that the case of a|)parent ownership Mas, by the very term, opposed to that of real ownership, and therefore could not fall Nvithin the purview of the registry acts. His Lordship then expressed his aj;;reement m ith Lord Ellenboroup,ii, that these statutes did not affect titles passing by operation of line, as to execntors, or administrators, in case of death, or to assignees generally in case of bankruptcy ; the judgment of the Court of King*s Bench Mas therefore affirmed. The qnestion Mhether the statute of 21 Jac. 1.,. or tlie registry acts, shall prevail nnder circum- stances Mhich, according to the ojxration and effect of the former statut*'. Mould place the property in the assignees of the l)ankrupt ; Vmt M'hich, according to the letter, if not to the policy, of tlie latter statute. Mould be the j)ro- perty of the registered owners, seems to have been completely set at rest by these cases. In all of them, the question, as Me have seen it stilted by Lord Elleiiborough in Robinson v. M'Donnell, and Mr. Ciiiallas in Monkiiouse V. Hav, reallv was, whether the f (•[I A p. iii.j upo)! Creditors ni IhDihriiplcij, t^r. '>1 registry ads opnatc as a rcjX'al of tlie statuUi of .laiiirs ].; and {\\v case in the Exchequer Cliainher eonlinuin*;- those of llohinson v. M'Donnell, and Hay v. FairlKiin, for there-con- sideration of uliicii it was expressly brouj^ht before that Court, lias decided the neg:ative of tiiis projxjsition. It is worthy of remark, how- ever, that althouf;h these cases at law seem so completely at variance with those in equity, as to set aside the operation of the registry acts, under ciicumstances in which the Court of Chancery had considered them as imperative ; yet there is a principle to be taken into consi- deration in the foUowinji; chapter, by which all of these cases may perhaps be reconciled with one another, and which demands our particular at- tention, as affecting the immediate object of our inquiry, viz. the existence of a power of re- dem[)tion under an assignment by way of mort- jjage. For, if the cases that have been deter- mined at law are not, in any manner, to be re- conciled with those in equity, it seems to follow, that they %o a great way towards declaring- that such a power may exist, if they do not altoge- ther decide the question in the aflirmative. In fact, they shew that an equitable interest in a ship, notwithstanding the statute of 34 Geo. 3., can exist independent of, and distinct from, the legal estate, and even in contradiction to the E 2 ^'rl l^lstinctntn between Thhs ar'is'nig [chap, iv ertificate of the ro«;istr\ ; upon the nojj^utive of wliich proposition only, the doctrine, that there can be no effective uiort«;a»e of a ship, has been endeavoured to he maintained. CHAP. IV. Of the Disttnction betneen Titles arising from the Acts of Parties, or merely by operation of Law. A DISTINCTION has always been taken between titles arisinp^ from the acts of the parties them- selves, and those which have their ('fl'ect merely by operation of law. It is remarkal)le to ol>- serve, how cautious the prc^sent Lord Chancellor has been in delivering his oj)inion upon this part of the subject. In Curtis v. Perry * hesay», '* I desire it to be distinctly understood, that I •* f^ive no opinion whatsoever upon the elVect of *' those two acts of Parliament [ in cases of ** trusts implied liy law, and not arisinj:^ out of an *' act in which the contnictin«j; parties join. It " is unnecessary to say any thin^- u|)()n that, " farther tiian tlial, in a <;reat variety of cases, • C Vfsry, 746. t The 2U(jl(>o. 3. r.(>(). :tnd :J1 Gpo. 3. c. G8. fHAF. jr.] from the Acts of Parties, S^c. 53 *• the intorosts of mankind would require the *• Court to consider loiij]^ before they should ** say, those statutes would prevent trusts iin- ** plii^i, or arisin::; by operatioji of law. But in " tiiis instance, 1 am relieved from any necessity '* of determining:, either that the cases whicli " have been decided are right, or of considering *' what ouji-ht to be the decision upon that sort *' of case which 1 have just noticed." In the next case, however, that of E,v parte Yallop,* we have the benefit of that opinion which his I^ordship expressly withheld in the case of Cur- tis V. Perry : " There is a wide difference," he says, *' between title set up under the contract ** of the parties, and under the operation of " law, or the act of God ; and that is autho- •' rized by a fair construction of the act of Par- *Miament/' Speaking of transfers, " The act," he says, " could not be intended to apply to *' tran^ferK, which could not be carried through " in the mode, and by the means prescribed by " it ; a transfer, for instance, from a testator to " his executors, or the transfer to assignees in '♦ bankruptcy. The next of kin, or residuary *' legatees, take by operation of law ; not under *' a contract for transfer, capable of being car- *' ried into execution in the mode prescribed. * ]■> Vos. <>1U 54 Distinction Intxccoi Titles arising [( hat. iv. " A traiislVr ol" that dtscription, tlu rcforc, is ** not that species of transfer, the reuuhition of " >\hi(h was in the eonteniplation of the l.eiiis- " latnre." And in Ea^ parte llonjihton,* after notieincf the case of Camden c. And(M*s(>n in the K in i::"s Bench,'! liis Lonlshij) remarks, tliat that decision appeared to him to strike directly at the root of all trusts arisinii;, not hy acts of the parties merely, but also by opcM-ation of law; and he thought it very difficult to reconcile that with other determinations n})on the case of assiji;nees nnder a commission of bankruptcy, executors, administrators, or next of kin, hav- ing an interest nnder the title of administrators ; and that it was difficult to maintain that there could not be an equitable interest in a ship. Now, we perceive this same distinction was expressly taken, as well by Lord I'^llcnboiounh in Robinson v. McDonnell, t (whi( h ;ii)p<:irs to have been recognized by the Court of Kind's Bench in Hay v. I'^iirbaiuj^) as by LordCMiief Justice J)allas in Monkhouse r. IIay.|| In the first case Lord lill(>nl)oroui;h says, " l'^\<'ry j)er- •' son claiming title through tin- uk diiiiu of a * 17 Vc's. 2.>:J. t oTtiiii l{(|). 7(»i>. sii|irii. pace 9. \ S(-lw. N. W 1 1 IJ. :■ •-• IJ;iiii. A ,\'(1. IIKJ. II -1 Biud. A JJ.ii-. Hi. CHAP, w.'] from the Acts oj' Parties, c^c 55 ** convevanr<; as the act of the parties, must sliew " a convcyaiict; of the form and character prc- ** scribed by these statutes." And again, "These •' statutes do not affect titles passing by operation ** of law, as to executors or administrators in •' case of death, or to assignees generally incase ** of bankruptcy. In these cases a title may be " transmitted without any of the forms required *• by the statutes." And in Monkhouse v. Hay,* the Chief Justice expressly declares his agree- ment with this doctrine. The result of the w hole, therefore, appears to be, — not that there has been any real difference of opinion between the courts of law and of equity, as to the effect of the registry acts as opposed to the statute of 21 Jac. 1. ; for all the cases agree in this, that the former acts do not aff'ect titles passing by operation of law ; but that, what has been con- sidered by the Lord Chancellor as an act of the party himself, by the courts of law has been taken as having its effect by operation of law. And Lord LUenborough strongly intimates his oj)iuion to this effect. After observing, that a title may be transmitted without the forms re- quired by the registry acts in cases of bank- ruptcy, generally, liis Lordshij) remarks, that he sees no reason wliy it may not be so done in * 1 liru.l. cV liiim. 1-JO. •50 Distinction betxccen Titles arising [chap. iv. a particular case, falling within the scope and operation of the statute of James, though these forms have been complied m ith in a conveyance to others.* And in the last case, of Monkliouse v. Hay, Mr. C'liief.Iustice Dallas more e\])ressly de- clares the same opinion. This is the true ground, he says, on which tliese cases are distinguish- able ; we are not now considering the case as between vendor and vendee, l)ut as between an assignee by operation of law, and an owner (that is, a juirchaser), who lias permitted the bankrupt to retain the vessel in his order and disposition. t The real difference, therefore, between those cases that have been decided at law and in erpiity is tliis : at law, it has been held, first, that the registry acts do not affect titles pass- ing, not by the act of the parties themselves, but merely by operation of hiw ; and then ob- serving, that the title of tlie assignees of a bankrupt must arise, if at all, by operation of law, it seemed to follow, as a consecpience of this principle, tliat their title must, in those cases, pr<-\ail against that of the j)arti('s chiim- ing under the registry arts. TIh' courts of erpiity admitting the doctiinr, that these sta- • Selw. N. P. 1142. t 1 Bind. cV Bins. 121. c:HAr. IV. J from the Acts ij' Parlies, ^c, 57 tutcs <1() not aflrct titles arisinu; hy oiKTation of la\v ; and admittiiiii, also, tliat the title of the assignees otu hanknipt (if any) must be said to arise hy o})eratiou of law ; seem to have consi- dered the question in all these cases to have been, whether or no the assignees had any title at all.— That it was merely beggini^the question to say, that the title of the assi,ij;nees arose by operation of hnv, Avhen tlie real question was, wiiether they had any title or not ; and that the title of the assignees must hkt considered as having come too late, not having its commence- ment until after the legid estate had become absolutely and irredeemal>ly vested in the pur- chaser, by virtue of the registry acts. A case, however, has lately occurred in bank- ruptcy, if the accuracy of the report can be relied upon,* in which the authority of these cases at law seems to have been fully admitted. It is to be remarked, however, that this case, although only lately given to the public, arose previously to the two last-quoted cases at law, \iz. that of Hay r. Fairbain,! in the Court of King's Bench, and Moiikhonse r. Hay,| in tiie Excliequer Cliamber. * Ex paiU Hiini. 1 .l;ic. cV \V.ilk. :i7i< ; sic note. t 1 Bhiii. (.V AM. iy:3. : 2 iirutl. lV Bin-. 114. ,j8 Distinction hcthccu Titles arisinii; [( hap. iv. A joint ciminiission had issiird nu;ainst John (ioodcliihl the el(l(T, John (ioothhild the yonuu,«r, and others, under Avhich they were fotmd hanknipts. It ai)peared that the (iood- cliihls liad carried on business toji;ether as liine- niereliants, nnder the firm otCioodehild and son. At the time of tlie l)ankrnptcy, twenty-seven ships had been employed in the lime trade, all of which had been rei^istered in the name of J. Goodcliild tlie younj»:er. It furtiier appeared, that J. (joodchild tlie elder had, by deed dated in April 181'i, assigned to (jloixbhild the younger six sliips, of whieli he was the sole re- gistered owner, and his moiety of four others, which were registered in the joint names ; the assignment was expressed to be in considera- tion of natural love and afl'ection ; and it was asserted to have l)een made only for the purpose of saving the elder (Joodchild the trouble of attending tlie Custom-house. l-^iglit of the ships thus assigned were in the trade at the time of the bankru[)try ; the other nineteen had been purchased, or built and paid for, out of the. funds of the firm of (ioodcliiid and son. 'I he two Cioo(b'liil(ls were equally interested in the business ; ))nl the ca|)it;d li;iy the fiilher. 'Tlie object iA i\\v jxtitiou was \n h:i\c Hie juoceeds of the \essels included ill the assignment nf April IHPi, declared to be MI \p. IV.] from the Acts of Partks^ S<^c. .>.9 part of \\\v separate estate of the elder (iood- eliild, as li;i\iiiii- Ixcii assigned without snjfi- leniiie,'|' were cited, as conflicting with those oi Rx parte \•^)\^^\^,\ and E,v parte lloniihton ;|| and the Lord Chancellor made an order, referrin«j: it to the commissioners to in- . G I. II 17 Vci. I'iV. iiml 1 Uosv, 177. fJO Dhtinclion hchi'ccu Titles ariimg [chap. iv. apju'iirin;;, as it docs, to hv in direct op[)Osition (o tin* principles laid down, and acted upon, in E.V parte Yallop,* and Ea' parte Iloui;hton,-|" and whicii were cited in 0})position to the prayer of the i)etition, m ithout animadverting upon the case. Some ji:round of distinction, it is pre- sumed, must either have been noticed by his Lordship ; which, from the short statement of the case I that has been pven us, we are unable to discover ; or he must June considered, that the cases of Robinson v. M'Donnell,§ and Mair V. Glennie,[| which had lately occurred at law, and which appear to have been cited on the be- half of the petitioner, deciding-, as we have seen, that the statute of 21 Jac. 1. c. 19. extends to ships, notwithstanding" the effect of the registry acts, had over-ruled the authority of the pre- vious cases in equity. If, indeed, we are right in the latter conclusion, — if we are to look upon the principle, upon whicli Ea' parte Yallop and Ex parte Houghton had been decided, as having • 15 Ves.OO. t 17 Yes. 251. I From a note at the loot of the report, wo k'tirn, that thu I»'iiri»c(l editors were not j)r<;sont wlioii the case was before the Court: they inform iis, however, lliat il liad been compared with ihc entry in the book of th*- Secreliiry of Bankrupts. § Selw. \. V. 111-2. and 2 Hurn. «.V AM. li>G. II 1 .Maide \ .""it l\\ . 1 l(». ciiAi\ \\ .] J'roin the Ads oj' Partus, S^c. fJl Imi'ii abandoned as no longer tenaljle, \v«; Ir.ivc tlirn tin* coiicnrrcnt testimony, wa may say, both of" our coiirts of law and (Mjiiity, to tliti doctrine, tiiat a ^larty may have an interest in a sliip h^i^ally coi^nizable, notwithstandini;- his name may not have l)een enteen fully admitted, may perhaps be relied upon ; and it may be insisted, that in all the cases we have been examining:, the question having been, whether the title of the assignees of a banknipt could be sustained, or ))revail against the par- ties whose name aj>j)eared upon the register, such titles must have had their effect solely from the operation of law, and not from any transac- tion that had taken place between the parties ; and therefore, that these cases cannot ])e consi- dered as an autliority to shew that any title or interest may be legally or ecpiitably recognized in a party, whose name may not have been pro- perly inserted in the register, and whose claim rests on the virtue of his contract only. From what, indeed, aj)pears to have fallen from the learned Judges, in giving their judgment.s in C2 DisliiictiiiH Iniiicc/i Titles aris'nifr |( hap. n. tlu'sc caNcs, it is o\ idt-iit tliat {\\c\ lr.i\«> consi- (iiTt'd tin' titlr of tlir assiniiccs ofa haukidpt as oiu' aiisinu' lV(Ui\ u hat has hccii termed the (i|)e- ndioii of law ; and tliat for this reason it\>as, that they h>oked upon the rei;nlations of the rrnistrv acts as not necessarily to l)c enforced for the manifestation of such title, nnn j)lace between themselves and the bankruj)t; and in this sense their title must be said to derive its origin from the operation of the law.* But, in the present case, the real * Tins sofins to l)e vt^ry fur, h(»v«v«r, from tlu> incaniiin; which this cxpr«'ssion is «;<'iu'riilly understood to convoy. AVore an estate to be scttU'd upon a man hy an act of l*arliament, we shoidd scarcely say, that his title arose hy the operation of law ; l)ut this mode of expression seems to have Ix'en a(h>pted as descriptive of tliat interest, which a party may have thrown ui»on liim, or he investetl with, through the h^al «'H'ect or ci»nse(pi(nces, not of the aits ot others, at least not alto^'lher so, hut of (;irf' Parties^ S\C. (',:i fjiirstioii is, not in wiiat nuinnrr (Ik- as.si;;iMrs lia>e derived their title, l)ut wlietlier or know they liaveany title at all. To assert that their tith' arises hy operation of law, j)resumeH the fact, that snch title is vested in them ; hut nnless the hankrnpt himself was entitled to some co<;nizal)le ri^ht or interest in the suhjeet at the period of his commission, or act of hank- rnptey, on which it may he founded, it is clear no title can be derived to his assij^nees. in the supj)Osed case of a ])arty ha\inp: entered into a contract for the purchase of a ship, hut with- out having procured his name to have been duly entered upon the register, it is clear he can have casts his real estates upon another, who is desiguate in a pjjrty wliosc ikmik* may not Jipponr upon tin; register, tluMi tluMt^ seems to 1)0 no interest that can pass to his a.ssi};nees in the event of his he- coming l)ankrupt. The ground upon which the statute of James proceeds seems to be this : The property which is openly in the possession, or- der, and disposition of a party, althoujo^h it may have secretly been made over, and, accord inijj to the forms of law, have become vested in an- other, must be considered as virtually belonajing to the party, who has in himself all the indicia, or outwards marks, of ownership ; and if such party shall afterwards become bankrupt, tiie legislature will look upon the transaction as a badge of fraud intended to deceive his creditors. The statute, therefore, acts upon the presumed equitable interest of the bankrupt ; and laying hold of that for the benefit of the creditors, clothes the assignees with the legal estate. There must, however, be some equitable interest in the bankrupt, as it were, to put the statute in operation. Many cases, indeed, as already no- ticed, have been decided as not coming within the intent and meaning of this statute, because the Court were of opinion, that although the bankrupt had been in the possession of the pro- perty in question, and had had the appareiit dis- position of it, yet there was satisfactory^ evidence before them to shew that he had no interest hi' CtO Kvl\iH'n tliore is no »'«juital>lc inttnst in \\\v hankinpt, tlu* statiile has no Ibrce or operation. CHAP. V. Of the Evidence ajjonled hi/ the Register of the Interest which Parties nuti/ have in a Ship. It has frequently been a subject of doubt how far, and under ^vhat circunistaners, the register of a ship is to l)e considered as aftordin^ evi- dence of tlie title being in those whose names appear on the face of it. It has been said, by the present Lord Chan- cellor, tliat the two acts of Parliament enforcing- the registry of ships, were drawn upon this policy ; that it is for the pidjlic interest to se- cure evidence of the title to a ship, from her ori- gin to the moment in which you look back to her history ; — how far, throui;hout lirr exist- ence, she has been British-built, and British- owned ; and that the legislature would not be content with any other evidence than the regis- try. In all cases, therefore, in Mhich a ques- cHAi'. v.] (iff orik'd hy (lie Register. (>7 tion mi^ht arise as to tlie, title to a ship, or as to the interest wliieh difl'erent parties might have ill the vesst;!, a priori we should have been led to imaf^ine, that the register must be resorted to for the purpose of determining it ; and that no evidence could, under any circumstances, ])e admitted to shew any title or interest in a party, whose name was not properly inserted in tlie indorsement of the certificate ; and the earliest cases that have occurred upon this head would seem to confirm this notion. We have seen, that previously to the passing of the last of these acts of Parliament, Lord Thurlow thought, tliat even in a court of equity, he could not take no- tice of any interest distinct from that appearing upon the register ;* and in Camden v. Ander- son, f the Court of King's Bench were of opinion that four partners of a ship, who had agreed that two of them only should be the visible ow^ners, as apparent upon the bill of sale and registry, were not capable of maintaining an action upon a policy of insurance ; although, as has been remarked by Lord Eldon, in an action of this nature a court of law takes notice of the doctrine of trusts, holding that the master has, in respect of the legal interest, an insurable interest, * Hibbert v. Rolleston, 3 Br. C. C. supra, 8. t ;j Terra Rep. 709. supra, 10. F 2 (>H EviJcyicc i>f Interest [chap, v as the cestui (jiic trust lias in rrsjx'ct of the oqui- tahle interest.* A short exiiiniiuition, h(>\ve\er, of a few cases that have arisen, in whieli tliis point has called for tlie decision of the Courts >vill shew us, not only that, under sonic circum- stances, other evidence may be resorted to for the manifestation, if not of the title of a ship, yet of the interest or ownership which the party may have in the vessel ; but that, under others, the rep;ister cannot be e\en received as prima facie evidence of the title, or rii;ht of owner- ship. In an action t on a policy of insurance, parol evidence was relied upon as sudicient for the purpose of pro\in*^ that the property of the ship was in the plaintift's. But it havinj^ been proved, on the behalf of the defendants, that the plain- tiffs, in fact, claimed their title throu«rh one Brookes, it was objected, that no interest ha, 15Ves. Go. t llobfrtson I. I'roiich, 4 Kast, 130. f n A r . \ . I fiffhnk'd hi/ t he R egister. Vti) ))l;iinti^ had obtained, tin; Court wvvc of opinion that the ownersliip haersons under a l>ill of sale, it did " n^>t, on that aeeonnt, become necessary for •' the plaintifls to j)roduce that bill of sale, or *' the ship's register, or to give any further proof " of such their pro[)erty ; the mere fact of their '* possession as owners, being sufficient prima *\ facie evidence of ownership, without the aid " of any documentary proof or title deeds on the *' subject ; until such further evidence sliould ** be rendered necessary in support of the prima ^^ J'acic case of ownership which they made, in *' consequence of the adduction of some contrary " proof on the otlier side.' This latter case, indeed, is perfectly to be reconciled witli that of Camden r. Anderson ; for there the register was produced by the de- fendants, shewing that the ship had been regis- tered in the names of two of the partners only, for the purpose of rrbuttinu; \\w prima Jacie case 70 EvidoiCL of luta'i'st [chap. v. Mhicli Imd been made hy i\\v plaint iH's, by prov- inu; tliat the sliip ;had been paid for ont of the partnersliip fnnds ; and in Ex parte Yallop, be- fore referred to,* LordEldon deehire.s his agree- ment \vith Lord Ellenborou<>h in Robertson v. French, that if u party, contracting:^ for the pur- chase of a ship, has taken possession, and ef- fected insurances, and afterwards brings an action upon the policy, averring that the inte- rest of the ship is in liim, it is sufficient prima facie to shew that he dealt as owner ; yet, his Lordship adds, if it appeared, in the course of the examination of witnesses, that he was enti- tled only under an equitable contract, under those circumstances a court of law would say, the averment was not made out l)y the evi- dence-t From these cases we learn, that tlie owner- ship of a vessel can be sufficiently esta- blished without having resort to the register, although it is open to the party disputing the title to rel)ut the evidence that may have been adduced in support of it, by producing the documentary proofs which the bill of sale and register afford. On the other hand, where tiie object has been to render a party liai)h' as owner ' 1 "> Vrs. {]{). \ 10 \ i>. G7. rnAi». v.] ajj'ordcd hji the RcgUta'. 71 of a ship, the proof of the due execution of the bill of sale, and tiie usual entry in the hooks of the CustoFH-house, have not lieen considered as pr'nnd Jacic v\h\viu:v a«;ainst him. It certainly had been the practice to admit tlie ship's regis- ter in proof of the ownership; and in Stokes v. Carne,* Lord Ellenborough, upon an objection to the (ivicb'iice ])ein,g taken, said, bethought it sufKcient to throw the burden upon the parties of proving the contrary. This doctrine, how- ever, seems to have been completely over- nded. Thus, in an action brouglit against the de- fendants as owners of tlie Prince of Wales, upon account of stores supplied by the plaintift' for the use of the vessel, in order to prove the ownership, and the lia])ility of the defendants as sucii, the plaintift' produced the registry l>ook, ])y wliicii it appeared, that the whole pro- perty in the vessel had been previously trans- ferred to the defendants. But the evidence having been rejected by the learned Judge (Mr. Chief Justice Mansfield), a motion for a new trial was made, when it was contended on the part of the plaintiff, that wherever an act of l*arliament directs any transaction to be regis- ' -2 Ciml.. :{:{!». i2 Evidi'fice of Interest [chap. v. ttTetl, the entry of tliat transiictitui, made hy the proper ottieer, is e^ idence; and that, iilthongh this niijiht not be conclusive evidence that the defendants were owners of the vessel, yet, that it was at least prima facie evidence of sucli own- ership, and must be rebutted. The Court, how- ever, were of opinion that the evidence Iiad been rightly rejected, and the motion was refused.* The principle upon which this decision seems to rest is, that there was no evidence before the Court to shew that the parties sought to be charged as owners had been privy to the entry on the register. In giving his judgment, the Chief Justice remarked, that no proof had been given of any bill of sale to the defendants, or of any act done by them, or of any connection shewn between them and the officer of the Custom-house ; and that he never knew an instance w here the act of any one man could charge another unconnected Mith him. And Mr. Justice Lawrence added, " Un- *' less you shew all things to be done by the " authority of the person who is to be charged, " the register cannot be made evidence, even " priind faciei This case was shortly afterwards confirmed, by one tliat cauK; before tlie Court of King's ' Jrastr .. Jli'pkiU'-, '1 Tiiuiit. o. (MAI*, v.] (ijhrdcd bij I he Register. 73 Ik'ucli.* Tlie i»laiiitifrs Iraviiig siipplic'd <'i <|iuin- tity of «?unpowy order of the ship's husl)and, ])rou«:;ht an action for jjjoods sold and delivered ai::ainst the defendants, as one of the owners of tiie siiip ; and in order to prove the ownership of the di'fendant, the plaintiffs produced and proved the execution of two bills of sale to him of certain shares of the ship, and also called an officer from the registrar's office, who produced ami proved two registers of the ship Walpole, \\hich, on the face of them, appeared to have been made upon the oaths of the ship's hus- band, and two other part-owners, swearing that they and the otlier parties there named, includ- ing the defendant, were the owners of the ship ;t and they furtiier produced the original certificate of registry obtained thereupon. And these were insisted on, from their authenticity as public documents required for j)ublic purposes, and obtained under the sanction of an oath, as at least primdfacie evidence to prove the defendant * Tinkler and another v. Walpole, 14 East, 22G. + This oafh is not reqnired by the act to be taken by all the owners of the vessel, in case of there being more than one, and some of them being resident more than twenty miles from the port or place wtjore the register is required to be made. il*ee U'O Geo. y. c. /' Intercast [chap, v, a [);irt-()\viier. lint, upon tlw autliority of the late case of Fraser v. Hopkins, tlie plaintifl'a were non-Kiiited. A rule, however, havin|2j been ohtainiHl for a new trial, it was contended on the part of the plaintifi's, that tlielepfislature hav- inij, on Lii'ounds of general policy, directed pub- lic reiiisters to be made to prove the ownership of British navigating; vessels to be in Britisii sub- jects ; and that, for this purpose, certains acts should be done upon oath, in every case of a transfer of property in every such ship, in order to give notice to the public who tlie purchasers of ships are, had rendered such register a pub- lic document, authenticated upon oatli ; and tliat it was, on that g;round, as much entitled to credence, in the first instance at least, as any other public document whatsoever, directed to b(; enrolled or renistered for pul>lic purposes.* And it was furtlier insisted, that it liad always been the practice, since such registers had been estal)lisln'd, to receive them as primajacic evi- dence of the ownerslup of tlie vessel. The rule, however, tliat had hvvn granted for a new trial, * Thus, by thr statiilf; ot" iiiroliiH-iits (10 Ann. o. lU.) c(H)i«'S of th«! iiirolincnt of indentures of hiirgaiii an«l sale, exaniiiietl with the iiifoliueiit, and si<>ii((l by th<' propf r officer, and proved Mpiiii oiHli, li.i\ ( till -iimi rnitr itrid efl"( lI a^ tlie original iii- '|i lilllM'.. ciiAiv v.] tiffurikd by the Rcghtcr. 75 %vas dis(li;irg('vithout vsaying that a person might have a burthensome act tlirown upon him, without his o\vn assent or privity. And in a subsequent case,* before Lord Chief Justice Ellenborough at Nisi Prius, M'here an action was brought against a party as owner of tlie ship Enter[)rize, for the purpose of proving the ownership in the defendant, the register was produced, in which his name appeared as sole proprietor of the ship. And it was attempted to distinguish the case from that of Tinkler v. Walpole, from the circumstance of the register purporting the grant to have been made upon the oath of the defendant himself. His Lord- ship, however, was of opinion, that the defen- dant could not be charged through the medium Smith r. riigf, 3 Camp. 10(.». 70 Kv'nUncc (>J Interest [ruAl'. v. of tlie n'fjister, Avithout proof that he took the oath, or adopted the character of owner. Wo have seen from these cases, that the re- pster, althout^h formerly admitted as evidence of ownership, is not now considered even as prima facie evidence, for tlie purj)ose of proving a party as owner, unless it can he also ])roved, tliat, l)y some act of his own, he has himself as- sented to, or adopted, the register. We have now to consider, whether the register can be aublicly asserting that he is owner, by tlie act of registering a vessel in his own name: that, lie considered, might he prima Jacic evidence ^or him that he is owner; because he thereby pub- li;». f'HAP. v.] ajjordcd In/ the Reir'tstcr. 77 kiio>\le(l{i:<'(l. All nrtion had been broiii;!it inr storrs snpplird hy tli(? plaintifT to tln' >Iii]) Swullow, of %\lii(h tiie dcfVtiHlant liad acknou- I<'dj;ed liinist*lf to have been an o>>ner; ])nt a j>lea of abatement having been put in, it was proposed, on the behalf of the defendant, to prove by the ship's rej^ister, that tlie other j)ar- ties named in the j)lea were co-owners of the ship at the time wlien tlie stores were s\ipplied. And l^inkbMT. Walpole having l)een relied upon for the purpose of rejectinj^: this evidence, it was contended, thut that case only determined that the register was not evidence to charge a person whose name appeared upon it, and mIio had not signed it ; but that it was, nevertheless, good evidence^br a person who had adopted it. His Lordship, however, was of opinion, that the register could not be evidence for a man : tliat if he had signed it, it was evidence agauist him ; but that it could amount to no more than a declaration that he was owner, which a man could not convert into evidence of his own title. A verdict, therefore, was given for the plaintiff.* It has also been ruled by Lord Ellcnboroiigh, that the production of a Britisii register of a • Hower V. Voung. 3 Camp. 240. 70 EvUkvcc of luiirvst [chap. v. ship, is no evidence, of itself, to prove that sneh slii[) is liritisli-built ; l)ut that, for tliis purpose, some evidence must first he given, that the [)arty in \vhose name the rei;istry had been made ^vas jH'iNV to the transaction, and tlien, through some otlier medium, tliat lie was owner of the ship.* In this case, the evidence of tlie refi^istry was not souj:!;ht, either for the purpose of establish- ing tiie title of the i)arty as plaintifi' in the suit, or with the view of charging him as defendant ; but the point arose in an action of assumpsit against the freighter of the ship, the defence to the action being, that the ship, instead of hav- inir been a Swedish vessel, as she had been denominated in the memorandum for charter, was, in fact, British built. The question at issue, however, between the parties to the suit, was the same as in the case of Smith v.Fuge, which had been decided by his Lordshij) only a few days previously. Indeed, if the production of the register supported by proof that the i)arty, w hose name there appears as owner of the ves- sel, himself took the oath re(]uired by the sta- tute, or that he adopted the character of owner, is suflierson stating- himself to he the owner, to;j^e- ther with proof of the same havinj^ been duly made with his privity, should not l)e considered as surticient evidence of the mere fact of owner- ship between indifferent parties, without goinj? on to pr(>ve, through some other medium, that he was owner of the ship.* • Alth()U!>li tile accuracy of tlui learned Editor of these Reports is well established, the Author cannot avoid suggest- ing, tliat, instead of tlie words " and then," stated to have fallen from Lord Ellenborough, his Lordship may kave uxed the word " or," which will render this case completely consist- ent with that of Smith i . Fuge. 80 CHAP. VI. Of the VuViditi/ of a Mortgage of a Ship, os affected hy the \Alh sect, of 34 Geo. 3. c. G8, or by the Policy of the Registry Acts. Having examined the various cases that have come before the Courts, ])oth at law and in equity, by which tiie question, as to the vali- dity of the mortgaj»e of a ship, may be aft'ected; and having seen that, from tlie result of the whole of these cases, it must be considered doubtful (the question itself ne\er iiavin^,yet been decided,) whether or no sucli a mortgage could be sustained ; it may be useful to look a little more particularly into such parts of the registry acts, as are deemed to have deprived the owners of property of this nature of a power, wliich is inciilent to all other property whatso- ever. The principal clause that seems to have been relied upon, as requiring this construction, is the 14th section of the stat. 34 (jleo. 3. cap. 08. TIh' former act, viz. ^(Mieo. 3. cap. (JO, liad re- quired, tljat, upon any transfer of a ship, in whole or in |)art, the ccrtifi<\ite of the registry CM\i'. vi.j Of tlw J'aliditi/, S^c. 81 slioiiM In- fnil\ Jiiid :irrurat«'ly recited in the hill of sale, and the section of the latter statnte, now nnder our consideration, havinj^ taken no- ti<'e of this, anvc are enabled to do, as well from tiie recital l>y which it is introduced, as hy a relerence to the doubts therein alluded to. This act, as has been before reinarkt?d, was passed shortly after tiie decision of Lord Thur- low in Hibbert i". Kolleston ;* and as it was evident that his Lordship's judu;nient could only be supported (if at all) upon the spirit, or what has been termed the policy, of the statute of the 26 Greo. 3. cap. 00, it was thought advisable by the legislature to introduce into a new act, tiien in contemplation, for the further encouragement of British mariners, a clause for the purpose of removing; any doubts as to the validity of l^ord Thurlow's judgment; and of declaring, in ex- press terms, that to be the law of the land, which then reste T. K. 700, ap- pears, as before remarked, (pai^e 11, supra) to have been given a few days after the passiiit; (jf this act ; i)ut the art itst-h' is not referred to, either in th*- ar<;uniput, or in the judgment ol ikt Court. (iivr. VI." of (I Morti>;(t. A liill ofs.ilc of a shij) liad Ixjen <»xi'ious of (he act. And we learn from the G 2 84 Of tlw I 'uitditif [(.HAP. M . therefore, was, not that a party intciuliiiii^ to convey or make over a ship, by \\ay of iwort- j^};e, and doin^ every tliin^' then ieill in a court of equity for tlie purposo of rcdccmi/ig liis property upon the usual terms; ]»ut that a party to w lioni a ship is intended to be conveyed or assigned, either as an absolute purcliaser, or merely by way of security, cannot rest upon his contract only, but must take care to procure the legal estate ; and if he failed to do so, the Court of Chancery was prevented by the act from atibrd- ing him the remedy given in all other such cases. If we now turn again to the 14th section of the 54 Geo. 3. cap. 00, Me shall find, that it ex- pressly refers, as well in the recital as in the enacting part of it, to a case of this nature. Dk)ubts had arisen, it is tliere stated, whether the former act required every transfer of a ship to be made by au instrument in writing, or wlie- tber contmets for a transfer might not be made without any instrument in writing; and then it present IjOrd Chancellor, that ^rlien thr (luostioii cjuijf first before Lord Thurlow, his Lordnliip had throat doubt about iiv i\([f>Uer i. (iilUspif, 11 Vt-s. O-iri, (HAT. vi.J ()J a M()rtg(iy;r of a Ship, S^c. U.'> is «»iia<'till of sale, or instrument in writin;^, eontaining; such recital as prescribed hy the former act. It seems to be evident, therefore, not only that the lanj^uage of this clause does not %o furtlier than the decision of Lord Thurlow before referred to, but that it was not the intention of the legislature that it should have any furtlier extension ; that they, l>y whom that law was enacted, had no idea of interfering::, in any manner, with the rights of mortgagors, or of depriving courts of equity of their power of enforcing a redemption against a mortgagee, upon the usual terms, but that all such rights should remain as before the passing of the act. It is said, however, that if mortgages of ships are not directly prohibited by any express words of either of those two acts of Parliament, yet that the form of the indorsement on the register re(piired by the latter of them, upon any altera- tion of the property in a ship, is such as to be incompatible with a mortgage ; and a compli- ance with this form being imperative upon the orticers of the Custom-house, that it necessarily follows, tliat no effectual mortgage can now be nii Of the }\iUd'ttii [chat. vi. requires, tliat upon any altrration of property in a ship, an imlorsement upon tlir (•« rtificate of registry shall be made, in the manner, and form, therein-after expressed. And the form is after- wards fiiven in tiie words foUowinj^, viz. •' Form f>f Indorsement on ehange of pro- '* perty. •* Be it rememlxred, Tliat [I or we] [^names, *• rcsidoicc, and occupation, of the persons selling] *' have this day sold and transferred all [my or " our] ri<::ht, share, or interest in and to the *' ship or ^ essel [lunne of the ship or vessel] men- ** tioned in the within eertifirate of rej»istry, '* unto \jiames, residence, and occupation of the *^ purchasers]. Witness [my or our hand or *' hands,] this [(late in xcords atj'ull length.] " Sij^ned in the presence of [Two icitnesses-Y It is evident that the form liere ui\ en is apj)li- rahle only to the rase of an absolute sale, or at least, that the legislature, in recpiiring this form, had no change of property in contem|)lation, other than a transfer between u ven(l<»r and j)ur- chaser: for although the words " all right, share, *' or interest," may not be too comprehensive, where a mortgage only is intended, Tthese being the wnrds commonly used in all mortgages, ab thou^di the rquitable right of redemption i^ in- f FiM'. \i.| of a Mor/gdirc (i/'aS/iip, fy\ 87 ttiulid t(» !)(' reserved to tlu' niortj^^por; thf words '• all rij;li(," &,c. or Avhatever other wordn or form of e\|>r<'ssi(Hi is m;i(le us(; of, only optj' ratinu: upon J lie legal estate ;) y<'t, when we per- (M'i\e that the names, residence, and orrupation of the parties transferring- are denominated *• persons .yt'///;/^'"," and tlie names, residence, and occupation of tin.' parties to whom the transfer is to i)e made, are denominated purchasers, it is plain that th«' form was only intended to be used wiiere one person was selling, and another was pnrciiasing, a ship, or some share or inte- rest tiierein. Tiie cpiestion, therefore, seems to be this : ISeeing that the form prescribed by the act is applicable only to an absobite sale of a ship, and cannot, without some variance, be rendered suital)l(! to a transfer by way of mort- gage, does it follow, as a necessary conse- quence, that the legislature intended, by this indirect method, to prohibit or restrain the right of mortgaging ships ; or did it intend to leave such right unaftected by the act? or, in other words, nnist the form directed to be made use of by the act, be invariably adopted, so that no transfer can takt; place, whatever may be the intention or wishes of the parties making such transfer, except that only which purports to be an entire and abs(dute disj)Osition of the pro- perty ; or ni:ikinu- use of tli<' ueneral purport 88 Of the Vuruliti) [ciiAi'. VI. and substance of the form, can, or iiuiy, it be so moulded and altered, as to meet tlie exi- gency of the case ? Tliat tlie very words of the form j::iven by the act need not be made use of in all cases, has been decided by the Court of Common Pleas.* A transfer havinj:: been made of one undivided fourth part of a sliip, it was contended, tliat the bill of sale by whicii such transfer had been made was defective, inasmuch as it was not ex- pressed to be a transfer of " all the interest" of the party; but the Court thought tiie indorse- ment, expressing the transfer to have becu of one fourth of tlie ship, Mas sulhcient ; and i^ord Chief Justice Mansfield remarked, that where the act of Parliament contemplates a transfer of the whole ship, it uses the expression " all my *' [or our] right, share, or interest ;" and that it was j)lain, that tlie persons w ho penned the act, omitted to provide for tlie case of a sale of a part ; — that the legislature only meant, that tlie indorsement should shew what was the interest conveyed ; for it would be impossilile literally to follow this act, and to say '* all my iuterest," when the vendor meant to convey a |)nrt only. And Mr. Justice Chaml)re ailded, " It would be I ii»I) a Mortgage oj a Ship, ^c. Itf) ** contrary to the poliry of the law, to prevent *' persons possessed oi" property in sliips from '* alienatinj:: any tliinp;, unless they shonhi ali- ** nate their wliole interest. — That it \vnnle a " narrow and rij^orons ronstrnetion in!>■"». ~u|ii.i. |);i'.i<' "JH. VHAT. VI. i (>l a Mori gage of a Ship, S^c. VI same miMi that prrscTJIx'd l»y tlie act, l>ut with {\w addition of a (hT<'azan<(', to cxjucss the tr»u; nature of the eoiitraet hrtween tlie parties; and that tliere is nothini!; in tlio act to jn-event sn< li an addition heini; niadr to meet tlie exigency of the case. If there is notliin*::, liowever, in eitlier of tliese acts of Parliament, l)y which mort,i::a«^es of ships are expressly proliibited or prevented, yet it is asserted, that tlie spirit and policy of them are snch, as to recjiiire the Court of Chancery to Mithhold that eipiitahle relief to morti^aj^ors of property of this nature, to which, before the passinjjj of these acts, they were entitled in com- mon w ith all other persons, who had conveyed their property to another merely by way of pled«^e. The inconvenience that must result from this doctrine has already been taken notice of, and cannot, indeed, but be immediately apparent; and if it should once be fully established, the greatest frauds mi^:ht be practised, in the face of our courts of ecpiity, whose principal juris- diction is to detect, and, as far as they can, prevent, or defeat, all fraudulent transactions, in w hatever new shape they may appear. And X\\^licv of the re<^istry acts in tlie difterent jticljx- nients tliat liaxe ]>een j^iven by the Court upon questions arisinj;- under them. From the judg- ment j;iven by Lord Ehb)n, in the case of Mes- taer V. Gillespie, already cited,* we learn that the j:;round of Lord Thurlow's judgment in Hib- bert V. UoUeston, \vas, the distinnuisliiui;- tiie case before him, from tliose to whi
  • . the statute of frauds, and a bargain and sale without inrolment ;) the policy of the act of tlie '26 Geo. 3. beinj?, to make the instrument, if defective, as in that case it was, void to all intents and purposes; and his being of opinit be attained, if such a thing as an equitable title to a ship could sul)sist ; since parties, it is said, might rest upon tlieir e(piitable, with- out desiring tlie legal, title. Tlie object being, as his Lordship addeas built, might be pursued.! ' Sii|ir;( jiiiui n. t Ml v|;ic r . . (iill( -pic, 11 \ ( >. •»"i.>. CHAP, vi.j oj a Mortgage of a Ship, &;c. 9rj rioin the fjjreut iiuportaiuu' of tliis cast- of Mestaer v. (iillespie, the Lord ClianceUor di- rected it to be arjijued a^aiii before him, declar- ing his \\\s\\ to re-hear it with the assistance of the Master of the Rolls (then Sir William (irant); and on deliveriiifj^ his judji^nient upon the case, the Master of the Rolls observed, that the rej^istry acts were formed, not for the purpose of ascertaininj:^ the rights of parties aj^ainst each other, or of protectinj^ them from fraud, but with a view to a p^reat purj)Ose of public policy; and that the acts, in all their provisions, compelled them to observe regula- tions, not in any degree requisite for their own private interest, in order to accomplish the ends of the act. It might be said, he further ob- served, that the legislature, having proposed their object, proposed the only means by which that object was to be secured ; judging of the propriety of enforcing that object, and by such means embracing that object; and prescribing those means, whatever inconvenience might re- sult to private individuals. The harshness, therefore, in particular instances, his Honor thought, was not to be taken into consideration; the object being, not to provide for the interest of parties, as against each other, but, at all events, to attain that great objei't of jmblic policy, to which it might be thought right to .^4 Of the J'aliil'itjj [cHAi». vi. sacrifi-, from time " to time, who are the owners, and wlitither the " ship is British-owned and British-built. Upon " that, the lej^islature will not be content with " any other evidenc^e than the re'jjistry, and re- " fpjires the jj^reat variety of thinj^s prescribed " by these acts.""]" • MestiM-T 'i. (iilhspio. llV«\s. G42. •f Kx parte Vallop, l-» \ v-n. GG. (Mvi*. VI.] o/ (J jMcr/i^/ri^c 0/ a Shij), S,c. <:A \\ »; caiiuul hut ()1»« r\ r, |jr)u«n«'r, that the opinions \mvv. recordi'd, <»!' tlirs<* (liH"rr<'nt ItMirnrd Judges, have Ix-rn ^i\rii in r«'rer<*ii('e to tli<' doe- trine of trusts arising; hy iinplieation of law, or ratlier of equity, un(h'r eontraets tliat liave heen enl«'re(l into, hut from sonu^ accident, fraud, or otlier iVoni the (iinc of \\v\' orii»in, that it iMii;lit be known, tlnoiiiihout licr oxistenre, how far slic lias h<'eii British-l)uilt and British-owned, and tlieichy to insure tlie means of enforeini;' tlie navi^^ation laws of the romitry ; hut if, nj)on a transfer of a ship 1)y way of niorti^ane, all the j^uards, pro- vided hy the registry acts, have been strictly attended to, in tlie same manner as n])on an absolute sale, (and it is admitted that every title, whether the party claim as mortp;a2;ee, or as absolute purchaser, must be defective, w here any of these have been nej'lerted,) it may be asked, in what respect, or in what manner, will such object of the act be defeated by tin; ad- mission of this mode of transfer ? The interests of all parties, whatsoever they may be, will ap- pear upon the certificate of registry, in the man- ner required by the acts ; and all that is neces- sary seems to be, to add a few words to tiie form of the indorsement ftiven by tlie act, as already pointed out;* for, if there be really no- thing- in the letter, or in the spirit, of tiiese acts, prohibiting the mortgage of a ship, it will scarcely be contended, that the right of dispos- * Tlir-re socnis to he iiothini; in the act lo prevent any thing being added to the form of indor.scnient there piven, provided that form, as far as the same is there specified, is adopted. (ii\p. \i.j (if (I j\f(>r(le nature of a few words set forth in a mere form, directed to be made use of in one of these acts ; and there intended, as it would seem, to be applicable to one mode of transfer only. In concludin;; tliis part of the subject, it is, perhaps, Avortliy of notice, that although no case has arisen, as before remarked, expressly requiring the decision of the Court as to the validity of a mortgage of a ship, or as to the right of redemption remaining in the mortgagor, yet cases are not wanting, in which the validity of such mortgages have been undisputed, and seem to have been assumed and admitted by the Court. Lord Hardwicke refers to a decree made by Lord Ilarcourt, in the case of a mort- gage of a ship, which was captured while at sea, whereby the executors of the mortgagor were made to pay the money for which the ship had been mortgaged.* This case is sufficient to shew, that there was no impediment to the * See King i . King, 3 P. Wms. 360. ' n 2 100 Of the J^alidlty [chap. vi. mortgage of a ship, prior to the more recent statutes we have been particularly contemplat- ing ; but many cases have occurred, posterior to the passing of these acts, from which it may be collected, not only that ship-owners are in the continual practice of exercising this right of dis- position over their proj)erty, but that this mode of disposition has been unquestioned, and may be considered as having received the sanction of the Courts. In each of the cases, of Hibbert v, RoUeston,* and Mestaer v. Gillespie,! so often before referred to, the question arose uj)on the transfer of a ship by w ay of mortgage ; but no objection was taken, either at the bar or ?)y the Court, on that account. And in a late case, be- fore the Court of Common Pleas, J it appeared, that the owner of a ship, upon receiving a loan of ^200. from a broker, had executed a bill of sale of a vessel to him, whereon was an indorse- ment, that the assignment was made as a lien or security for the loan, with a power of sale, &c. ; but the forms of the registry acts not having been complied with, and the security therefore failing as a mortgage, it was contended, that the broker might recover against the assignees of the owner of the vessel, who had become a bankrupt, as • 3T. R. 709. and 3 Br. C. C.671. f 11 Vcs. G26. I \^'iIson :. H.-atlirr, 6 Taunt, C«. CM A 1'. VI.] oj a Mortgage of a Ship ^ S>;c. 101 havinp: a lien upon the ship under the assign- ment. The Court, however, was of opinion, that w hat was intended }>etween the parties was a niort^aj^e, and not a lien ; but that the security was defective as a mortgage, inasmuch as the forms prescribed by the acts had not been at- tended to. CHAP. VII. Of the Liahility of a Mortgagee of a Ship, for the Repairs or Supplies furnished for the Use of the Vessel, AVe have now to consider, and to offer a few observations on, tlie liabilities thrown upon a party taking a transfer of a ship by way of mort- gage ; and as these may be of a very serious na- ture, and no inconsiderable doubts have arisen as to the extent of them, it is extremely impor- tant to all parties, and particularly to the mort- gagee, that they should be inquired into, and ascertained as far as possible. A learned writer, indeed, upon the law of shipping, now filling the highest situation in the Court of King's Bench, after stating the difference of opinion at that time existing upon the subject, observes, *' that every p. This case not only estal)lishrs the priuc-iple of the personal responsibility of the own«irs, but at (he sauir time siif>> s, fliat lli«>ir responsibility is limited to such (liiuns as arc ticcrs.sari/. ^^'llat may «)r may not come under this ;;cn( ral term, has fre- fjueutly bti II a subject of dispute; audit has sometimes been attempted to confine it to such repairs or supplies as were (HAP. vii.J ()J' a Ship Jhr Repairs, i^c. 103 lV>n\ whctluT tlic mortjia^or, or tlie moit;j;ap;rc, of a ship, is to be deeme'd in law the owner of it; and as such owner, entitled to the benefits, and liable to the burdens, attached to that cha- racter. If the niortg:agee take possession of the sliip by virtue of the assignment to him, he holds himself out as owner to all the world, and, of course, no question can arise as to his liability ; but where a security only is intended, it is gene- rally the practice, to leave the mortgagor in the full disj)ositi()n of the ship ; and it may be, and probably is, quite unknown to the party having claims upon it, that the mortgagee has any inte- rest whatsoever in the vessel ; and therefore it becomes necessary to consider how far, and un- der what circumstances, the legal title and ownership carry with them, or attach to them- selves, the responsibility of paying for repairs, or other necessaries, ordered by the master. absolutely necessary. It has lately, however, been laid down hy the Court of King's Bench, that that construction is too narrow ; and that there is no better rule for ascertaining what shall be considered necessary, tlian by leaving it to the jury to decide what a prudent man, if present, would have done under circumstances, in whicli the agent, in his absence, has been called upon to act, A>'eb!ster v. Scekness, 4 Barnw. & Aid. 1 04 Of the Liability ij ' a Mortgagee [c h a »» . mi. It is from some very late determinations only* that any doubt appears to have arisen upon this question ; for if we consult the earlier cases upon the subject, \ve shall tind, that tlie Courts Mere not accustomed to consider the mortgagee of a ship so far the owner of it, as to make him liable for repairs, &c. In the caseof Chinnery r. Black])urn,*\vhicli came before the court of King's Bencli, in Easter term 1784, an action had been brought by a mortgagee for the freight of goods accrued due after the mortgage, but previous to his having taken possession of the ship ; and the Court held, that the action could not be main- tained, unless the mortgagor, continuing in pos- session, was to be considered as the servant and agent of the mortgagee ; which, they said, was not the case : but tliat, until the mortgagee took possession, the mortgagor was owner to all the world ; — that he bore the ewpences, and was to reap the profits. And Mr. Justice Bullcr added, *' If the mortgagor be considered as agent, he •' must be so throughout ; and tlieu tin- niort- '• gagee would be answerable for every loss, " damage, kc/' Shortly after the decision of this case, tha( of Jackson V. Vernon t came before the Court »»f • 1 Hen. Black. 117, note. t 1 Ilm. IM;.. k. i n. t HAP. \ 1 1 . j of a Ship J or Rtpair.s, ^c. 1 05 Coniinon I*lc;is ; and lien* two (jiu'stions arose ; first, wlu'thor the dt rcndaiit, aj^ainst whom an action liad been l)r()ught lor supplies f'iirnish(*. Trin.tiriii 1707. 1()(» Of the Liabilihi of a Moyfill of sale to the defendant by way ot" niorti;a^e ; and that the deftnidant, not liavinj;- taken possession in the character of niort- jT'ij^ee, he could not he charged witii the repairs. The Court, however, althou,i;h, under the cir- cumstances of the case, they w ere of opinion that the action was rii^htly l)roua:lit against tiie defendant, not as mortgagee, but as the abso- lute owner of the ship, and therefore decided tlie case upon this point ; yet, in giving their judgment, expressed a very strong doubt as to the validity of the cases exempting a mortgagee, who has not taken possession, from such liabi- lity. As to the cases respecting mortgagees. Lord Kenyon remarks, that, whether in or out of possession, they were the legid owners, and must be so considered in a court of law , not- w ithstanding their titles were subject to equita- ble interests. " It is said," continued his Lord- siiip, " in one of the cases, that a mortgagee is '■' only liable when in j)ossession ; and that, what *' proves this point is, that, in charging the " mortgagee, it is necessary to state, in plead- " ing, tiiat he entered anrl poss«^ssed : but, with *' great defert'iice to the Iranwd .Judge who gave " that rc-.isdii, I (I'tiibl it ; I coiisidrr those as " nitic liiiinal \\»t|-.|>. It lia>- aUn been ari^iUMJ, cnAi*. Ml.] of a Ship Jor Repairs, ^-c. 107 " that tlwr*' is a (lidcrcnrc hotween a niortgaj^e *• of real, and personal, j)roperty : hut that tlis- *♦ tinction afVords a stroni; ar<::«itnent au:ainst the " niorti;a;;e(' of a ship ; tor the instant a transfer ** of tlie ship is made, tliough by way of mort- " oaj;e, the mortj^ajj^ee may state that he was " possessed : in all actions of trover brought by ** the assignees of a bankrn])t, for property be- '* longing to the bankrupt, they state that they " were possessed. It is not necessary, how- ** ever, to decide these points in this case, and " therefore I avoid giving any positive opinion '* upon them : but, as several cases have been " cited, I have thought it right to throw out " tliese doubts, lest, whenever the questions *' should arise again, it may be supposed that I *' have acquiesced in these determinations." Two cases, however, have lately occurred at ISisi Prius ; in the tirst of wliich it was decided, that a master of a ship could not maintain an action for wages and disbursements against a mortgagee, who had not taken possession ; and, in the second, that an action would not lie against such mortgagee for necessaries supplied for the use of the sliip. It ^^ill be necessary, however, to look into the particular circum- stances of these cases; and although we shall fnid that if cannot be iiit'crrrd tVoni thnn, tliat a lOa Of the Liabilitii of a Mortgagee [chap. tii. mortj^cijjee of a ship, not having taken posses- sion, shall in no case be liable in the character of oAvner ; yet, a due attention to these cases ^^ ill load us, in a i^reat measure, to discover the true principle upon uhich this important ques- tion ought, perhaps, to be decided ; and upon ^\hicll, it may be presumed, the courts of law may act, whenever the question may be directly brought before them. The first of these cases is that of Arnett v. Carstairs and another.* In August 1810, Mas- son being the sole owner of the ship in question, duly executed a bill of sale thereof to the de- fendants, for the purpose of indemnifying them against the penalties of a bond to the crown, into which they had entered as his sureties. At the same time, a mortgage was executed by Masson, conveying the vessel to the defendants for such purpose of indemnification ; and con- taining, on the part of the defendants, a cove- nant to re-transfer her to Masson. Under these circumstances, an action was brought by the plaintiff, as master of the ship, against the de- fendants, as the legal owners. It was proved at tiie trial, that tlu; plaintiff had, previously to the exe(!ution of the bill of sale and mortgage, : iK'kiiii.I.. II, ;iOI. CHAI'. vij.j oj'a S/uJ)J'or Jiipairs, i^c. lO.O hecn employed by Masson as the mast<.*r of the vessel ; that he had no direct infoniiation of the above transaction ; but that tlic indors/'(( Shil) for Rcjxiirs^ S^r. Il."i Thai (liis is tlio rlit to stand, will further appear, if we take notico of the doctrine that has been laid down hy the Courts in some other cases wherti relief has been sought, not, as in the former cases, a,i;ainst (he mortgagee, but, against a party appearing to be the legal owner on the face of the certificate of registry, but w here the beneficial ownership has been in another. The earliest case of this nature seems to be that of Young and another v. Brander and ano- ther.* This was an action in assumpsit, for work and labour done by the plaintiffs, at the request of the defendants. The defendants, who were owners of the ship Rebecca, by bill of sale, executed on the 2()th of May 1804, transferred all their interest in the vessel for a valuable con- sideration to one Thomas Brander, w ho imme- diately took possession, and from that time acted as the sole owner of the ship. All the forms of the registry acts were complied with, except that the purchaser did not deliver a copy of the indorsement on the certificate, to the per- sons authorized to make registry and grant cer- tificates, until the 23d of June following, w hen he obtained a new^ certificate of registry. The * 8 East, 10. I 2 1 1 Of the LiahUUy of a Mortgagee [f hap. v i r . names of the defendants, of conrso, remained on the registry at the Custom-house as owners (but this did not appear to have been with their con- currence,) until the 23d of June 1H04, >vhen such new certificate ^vas granted. On the lUli of June 1804, the captain of the Rebecca, by order of Thomas Brander, took the vessel to the plaintiffs to be repaired for her outward voyage ; who thereupon made the repairs, &c. which were the subject of this action, between the 11th and 19th of June 1804. No notice had been given by the defendants to the plaintiffs of the change in the partnership previously to the work being done. Under these circumstances the plaintiffs liad a verdict for tlie amount of tlie repairs, subject to the oj)inion of the Court, whether they were entitled to maintain the ac- tion. When the case came on to be argued be- fore the Court of King's Bench it was con- tended, on the part of the plaintiffs, that, as the defendants continued the legal owners of the ship, till after the time when the repairs were made, by reason of the requisites of the registry acts not having been complied m ith ; and with- out which, it was said, no property in the ship could pass from them to the vendee ; they were consequently liable, as owners, for repairs or- dered by the captain. The Court, however, were of opinion, that the case was too clear to CHAP. VII.] (f/' a Ship fur Repairs, c^c. 117 ie\hfn hr \vn*« clearly of opinion, (HAP. VI 1. J t, 20a. 1 20 Of the L'nibUiti) of a Mortgagee chap, v i i . tiff; being of opinion, that, during the existence of the lease, the relation of master and owner ceased to subsist between Walker and the defen- dant, and that the stores must be taken to have been ordered on Walker's own account. A mo- tion was afterwards made to set aside the non- suit, in sup])ort of which the case of Parish v. Crawford,* before Lord Chief Justice Lee, was * Shortly reported in 2 Stra. 1251 ; but more fully in Abbott on Merchant Ships and Seamen, 22. Many other cases have been decided ^ince that of Parish r. CraM'ford ; wherein it has been held, that, by a charter-party, the liability of the original owner is transferred to the charterer /;/o /lac vice. See James r. Jones and others, shortly noticed in Espinasse's Nisi Prius Cases, 3 vol. 27 ; but of which a more full statement is givei) in Abbott, 23. Mackenzie r. Howe, 2 Campb. 4H2. Valley r. Wheeler, Cowp. 143; and particularly, llatton v. Bragg, 7 Taunt. 14. and 2 Marsh. 339. In speaking of the case of Parish r. Crawford, the learned author above-mentioned says, " Probably it ia not now to be considered as law.'' And the same case having been quoted in Ilatton v. Bragg, Gibbs C.J. remarked, that that case had frecpiontly been questioned, and, in two cases, formally over-ruled. It may be doubtful, how- ever, whether these latter cases are really inconsistent with that of Parish v. Crawford. It must be observed, with respect to the last-mentioned case, that although the defendant had chartered the ship to anotlier fur the voyage, it was expressly liuiited to the freight of the goods, tlie freight of the passen- gers haviiur l)een expressly reserved to tin; def«ndant himself. The (hjfendaut also appointed the master, and covenanted with tlic chart(r(T for tlir condition of the '.hip and behaviour of ciiAF. VII.] of a Sli'ip for Repairs, i^c. V2\ n'ferred to, where tlie owner of a ship, chartered by iiiiu to anotlier, was hchl liahle to the owner of ij;oods tnken on hoard hy tlie charterer, who received the frei';lit, hut did not (ieliver the jj:oods : and it was contendetl, that tliird per- sons liave a ri;jcht to hold the registered owner lia])le to them for the acts of the captain. The Court, however, were of opinion, that the re- the niii^tt-r. And Cliiot" Justice Lee, in giving his judgnifiiit, particularly rdicd upon the circumstance of the defendant con- tinuing to have the direction of the persons navigating the ship, as aflording a groiuid of implied contract betv, eon the plaintiff and the defendant, as owner ; and, in fact, the whole question turns upon this point, i. e. whether the circumstances are of such a nature as to give rise to an implicit cojitract. The vali- dity of the case of llatton r. Bragg itself has been frequently questioned; and, perhaps, it can no longer be cited as good law. 8ee the cases of Tate v. Meek, 2 Moore, 278 ; Yates r. llaitsbon, ib. 21)4; Yates t. Mennell, ib. 297; Saville r. Campion, 2 Burn. tV Aid. 503 ; and particularly that of Christie X. Lewis, 2 Brod. iV Bing. 410. In this case, speaking of Jlatton r. Bragg, Mr. Justice Burrough expressly says, " I *' confess I think it is not law ;" though the other Judges seem to think that the latter cases may be reconciled with it. The sinqde (piestion in all these cases was, whether the owner, by reason of the clurter-party, had entirely divested himself of the ownership pro ilia lire. As bearing on the question in the text, therefore, they have all the same tendency : they all prove, that an owner of a ship may part w ith his property, or devest iumself of that ownership pro tanporc, and convey it to another, witii'iiK cniplyiiii: with the fornis of the registry acts. 1-- Of iJic Liabillti/ oj'a ]\Iortgagce [chat. yii. ijjititr^- acts uere passtxl diverso intuitu-^ and that, to say lliat the registered owner, \s\\o divests himself, by the charter-pary, of all control and possession of the vessel, for the time being, in favour of another, mIio has all the use and bene- tit of it, is still liable for stores furnished to the vessel by the order of the captain during the time, would be pushing the efl'ect of those acts much too far. — That the question was, whether the captain (in the case before the Court), who ordered the stores, were, or were not, the ser- vant of the defendant, who was sued as owner. And, as they did not stand, at the time, in the relation of ow ner and master to each other, the Court was of opinion, that the captain was not the defendant's servant, and, therefore, that the latter was not liable for his act.* * From the report of this case given in 2 Camp. 517, it ap- pears that the legal title to the ship had not been transferred to the defendant till the beginning of the year 1810, and that the agreement for the hire of the ship for three years took place in 1000; before the expiration of which period the goods in ques- tion hae. CHAP. VII.] oj a Ship J or Repairs, S^c. 123 From the whole of these cases which wo have now been examining, it evidently appears, that the Courts have never considered the registered owners of a ship to be lial)le, merely as such. The question has always been, whether there has been any direct contract between the par- ties; or whether the circumstances of the parti- cular case have been of such a nature, as that the existence of a contract between them must have been implied. In Young *o. Brander * we have seen, that Lord Ellenborough expressly said, the owners of a ship are liable for the repairs of a ship ordered for them, or for their benefit , by the mas- ter. In Trewhella v. Rowe,t the same learned Judge grounds his judgment upon the circum- stance of there having been no evidence to shew that any personal credit had been given to the defendant ; the goods having been supplied upon the order of another, given by him in the cha- racter of owner. But in the same case we find, that the defendant, upon the second trial, was held liable for the amount of goods furnished by the master for the use of the ship, after the ex- ecution of the bill of sale to the defendant ; * 8 East, 12; j)age llu, supra. + UEasf.. 1:38; page 117, supra. 1-21 Of t lie LiabU'itij of a j\fortgagce [chap. vii. altliou*;'h there was no evidence to shew, that tliese 5;oods had been furnished with his know- Iedjz:e, or that tliere had been any direct con- tract between liim and tlie jdaintiflf respectinj^ them : it was lield sufficient, tliat the goods had been supplied upon his credit, and for his be- nefit. For these he was lield liable, under the responsibility attached to him in the character of owner, by virtue of the implied contract, that he would fulfil the eng'ag:ements of his agent, the master. And again, in Fraser v. Marsh,* Lord Ellenborough says, the question is, whether the captain, who ordered the stores, were, or were not, the servant of the defendant, w ho is sued as owner. We may say, indeed, that this must always be the question in cases of this nature ; but there is sometimes great difficulty in decid- ini^ whether the master shall, in law, be con- sidered as the agent of the owner, or not. We have seen, tliat where a party, furnishing sup- plies for the use of a ship, receives his orders from, and treats with, another, as owner of thp vessel, no contract can be sup})0sed to exist lietween him and the registered owner, merely as such owner; and therefore, that the latter is not liable ; and that such liability will not attach its«lf upon him, even altliough the i)arty fur- * i:) East, 210; supra, lit). MI \ i» . V 1 1 .] of a SIi'ip J or Repairs, ^ c. 1 2 '> nisliing- the supplies knows that the sliip is standing in liis name as tlie lej^al owner, as in the case of tlie master bringing liis action against the registered owner for wages, &c. when he had always his orders, and treated with another in that character. These are cases of express contract between the respective parties; and tlie effect of an express contmct w ith one person in the character of owner, seems to ex- clude the idea of any contract arising by impli- cation between the claimant and any other per- son, although that other person may sustain the character of real owner. We have seen, also, that w here the party furnishing the supplies has no knowledge of the ow ner, — has never consi- dered, or treated with, any person in that cha- racter, but has received his ordersyro/w the inas- ter alone, that, in such cases, he may maintain an action against the owner, as in the above- cited case of Trew hella v. Rowe.* These are cases of implied contract, which are always presumed to exist between the party furnishing the goods and the owner, unless there is some other person to whom, in fact, the credit has been given in the character of owner. O' * 11 East, 438. 1'20 Of the LlahiVily of a Mortgagee [chap. vii. From the whole of what has been advanced it would s(>t'ni to follow, that a mort,t;a,i;ee of a ship, not having taken upon himself the posses- sion, or in anywise interfered witii the manage- ment of the vessel, so as to aftbrd evidence of ownership, can only be liable in cases where the party claiming has not treated with any other person as the owner ; but liaving no knowledge whatsoever of the owner, has acted upon the authority of the master alone. Hence arises an implied contract between him and some other person, although unknown to him, a iz. the owner of the ship, upon whose credit he has fur- nished the supplies; and the question is, who is this unknown person ; or, in other words, whose servant or agent is the master, in case the original owner may have assigned his inte- rest in the vessel to another by way of mort- gagC) to be considered, — the mortgagor's or the mortgagee's ? And this brings us again to the naked question, whetlier a mere mortgagee shall be chargeable as om ner ? Jmoui the cases we have been examining it woidd appear, that the leaning of the Court, if we may so call it, has always been in favour of a person thus situ- ated. They seem to have been anxious to pre- vent the iiardsiiip which a contrary doctrine would throw upon a party, who, in taking a security of this nature, and leaving the mort- CHAP. VII.] of a Ship J'ur Repairs, S^c. Ill •^aj^or in the full possession and manap,ement of the niorti?a<;('(l property, eonld have no i(le;i that he was tlierehy renderinir himself liable to the dehts of another. But in all the cases, ex- cept in that of.Tackson v. Vernon* above quoted,'}" there was some peculiar circumstance on which the judgment of the Court seems to have been founded ; — something' w hich excluded the pre- sumption of any im])lied contract having existed between the claimant and mortgagee ; and which, therefore, exempted him from the liabi- lities under which he might otherwise have been placed. If, indeed, the case of Jackson "v. Vernon is now to l)e considered as law, we might safely say, that a mortgagee, not having taken posses- sion of a ship, could in no case be liable for supplies, repairs, &c. That was certainly as strong a case, seeking to charge a mortgagee, merely as such, in the character of owner, as could well occur. The plaintiff had supplied the ship with cordage and stores, by the order of the master alone ; and it did not appear that * 1 Hen. Black. 114. It is to be observed, that this case occurred after the 26 Geo. 3. c. 60, and before the 34 Geo. 3. c. 68. t Paccl04. 1-28 Of the LiahUlty of aMre cited, we have seen that his Lordship was of opinion, even before the passing of the .*34 Geo. 3. that no title could Ik- taken notice of, where ' a Br. C. C. .>71 -. bert v. Rolleston, but is rendered a mere nullity by the last sta- tute ; for it can only operate as an agreement between the parties that the ship shall be re- transferred to the mortgagor, upon his paying the money intended to be secured. The Courts, therefore, have considered it im])ossible to take any notice of the unregistr()duced. But it is lu^cessary here to observe, that tlie present Master of the I^olls seems to i)e of opinion, that the Aalidity of a inort2ja;^e of a sliip does not in any manner depend upon tlic po^^e^ of varyinc^ thr r()rni of indorsement f^iven l)y the act, so as to rrnder it suitable to a transfer l)y way of mort;;ai;e only. Ill di'livcrini;' his jiiduiucnt in the ease of'I'homp- CHAP. \ III. j the Mortga Of the Manner of effecting [chap. viii. niencies uill not necessarily follow from admit- ting the im[)ossil)ility of varyin*;- the form of indorsement, >vhere the objeet of the parties eannot otherwise be carried into execution ; ahhoujih transfers by \vay of mortji^a III.] I he Mortgage of a Ship. i.'J7 11h« ^imrF<* Frasor i . Hopkins 7 'J Frascr v. Maibli 1 IJ), 1'24- FriMich, Hobinboii X . •••• 08 Fugf, Smith r. 7J G Gillespie, Mestacr r. 8,20, 84;/. GUnnif, Mair i\ 59 (iravcs, Newnham v. • • • • 31 H Hart, Twontynian ; . ••••Ill Hay v.Fairburn • • 48, 54, 5? Hay, Moiikhousi' r. • • • • 49, 54 Heather, Wilson r. 100 Hibbort r. Rolleston 7, 67, 82 Hibbcrt, Rolleston r. •••• 5 Hopkins, Fraser r. 72 H()iii;htun, Ex parte 43,54, 59 Hubbard r. Johnstone • • • • 22 Hutton ». Rraijo 120 ;/. Jackson v. Vernon* • James x. Jones Johnstone, Hubbard Jones, James : • 104 120 «. 120 //. King c. King 99 L Lewis, Christie i'. M 121 u. RI'Donnell, Robinson x. • • 45, 50, 54 • . 44, 59 • ' 120 //. 11.'), 124 • • . 121 //, • •• 121 //. Mair v. Glennie • • Makenzie r. Roue Mar^h, Fraser r. • Meek, Tail- v. • • • Mennell, ^'atis v. • Mestaerv.Gilli'si)ie, 8, 20, S J.//. Meyers, Reusse v. 78 Miller, Underwood i . - • • 88 Monkhouse v. Way • • • 40, 54 Moss r, Charnock .5 Moxon, Palmer ; . 23 N Newnham x. Graves' 31 Palmer x . Moxon 23 Parish r. Crawford 120 Perry, Curtis r. • • • • 37, 43, 52 R Raitson, Yates r. 121 //. Rich X-. Coc 1 1 2 w. Robinson x'. I'rinch 6h Robinson x . M'Donnell • • 45, 50, J4 Rolleston X'. Hibl^ert • • • • 5 Rolleston, Hibbrrti-. 7, <>r, 82 Rowe, Makenziu ;. • • • • 120 ii. Piowe, Trcwhella •..••117. 123 Scekness, Webster x, Sevile r. Campion • Smith X. Fuse • • • • 103;/. 121 //. • • 75 NAMKS OI" CASKS f I'lTI). Sinilh, TliompsoM v. '2S, n3, 90 Stokis r. Came 71 T TaU' V. Meek 121 ?». Thompson v. Smith 28, 33, 5)0 Tinkler r. Walpolc 73 Trewhella v. Ilowc ••117, 123 Twi-ntyniiin v. Hart Ill V Valley r. Wheeler HO «. Vernon, Jackson r. lO-t llnderwood r. Miller •♦•• 88 Walpole, Tinkler v, Webster t'.Seekness' Westerdell v. Dale Wheeler r. Valley • White 1-. Carey • • - Wilson V. Heather • • I -J 1 03 //. . . 1 0,> 1 20 //. 102 ;/, ••10(i Yallop, Ex parte 40, 43. .53, .')() Yates V. Mennell IJ I n. Yates I'. Uaitsi)on 12 i //. Young I'. Brownlow- '115, 123 Young, Flower i'. J J 1 Ni'i{<)i)r( rioN. wiii slii|), the Iranicd ;nilli(»r seems In lia\<- roiisj- (Icred ii MS estaldislitd, llial a in()rl;;a^e vhich it M ill be our duty to examine in the fur- ther part of this treatise. * Dow's Rop. in Pailiaiiuiit, IIG. INTKOlJLt T10\. XXI quoted, slatiiiL;" it to ]»c a mistake to siipj)ose tliat tlie ou iier of a ship cuiinot make any trans- fer oi' tliat property, without j)artin*^ entirely and irredeemably with all his interest. The question, therefore, as to the validity of the mortgage in this case, or as to the effect of such mortgages in a court of equity, is only inciden- tally alluded to by the author, and has not fur- ther attracted his attention. It will be neces- sary, however, w hen we come to look into the cases that have arisen upon this subject, as well in courts of law as in equity, to examine the case of Thompson v. Smith a little more fully ; and we shall find, that although it cannot be said that the question, whether a party can maintain an equitable interest in a ship in the character of a mortgagor, or w hether he be al- together barred of his equity of redemption, either by the express w ords, or the spirit, of the registry acts, distinctly arose in that case, or called for the determination of the Court ; yet, the negative of this proposition, that is to sav, that there can be no equitable interest remain- ing ill tli( inortgiigec, ha\iiigbeen maintained in Wll I NT KO DICTION. ar2:iiment by (lie counsel for tlir doft'iulant, (lie IcMnicd .liuliic, in liiviiiL;' liis decision ii|)(»n llie case, went very fully inlo this (|U('stion. In tlie oUicrol" tlic publications above alluded to, the case of Tlu)nipson v. Smith has been more fully considered. After having remarked, that a doubt was started in that case, ^vhetller, since the registry acts, there could be a m\\'u\ mortgage of a ship, or whether tlie right of re- demption did not merely rest in honour between the parties ; and after having stated the judgment of tlie Vice-Chancellor, declaring, as wehaAc al- ready seen, the validity of such a mortgage, the autlior seems to consider thai no doubt could any longer exist upon so important a 5. Assitiiiecs of a bankrupt — how far tliey may be said to derive their title by operation of law, Q'l. B Bargain and sale, upon the execution of, the bar2;ainee has an immediate seizin, subject to be defeated, in case the enrol- ment is not made in due time, 22 n. Bankruptcy, creditors in, how affected by the registry acts, 37. Bankrupt, assignees of", liow far they may be said to derive their title by operation of law, 62. Bill of sale of a ship sufficient to pass the legal estate, subject to be rendered void by non-compliance with the forms prescribed by the registry acts, 24 tt seq. not sufficient to pass the property, though all the forms of the acts have been complied with, if the vessel continue under the order and disposition of the original owner up to the time of his bank- ruptcy, 44, 46. Charter-party transfers the liability of the original owner to the charterer /;;o Aac t/te, 119, 120 «. Creditors in bankruptcy, how affected by the registry acts, 37. Custom-house officers will not permit any entry to be made in the registry, that is not in strict conformity with the form of indorsement prescribed by the act, 131. M 11-2 INDEX. Ji;(|iiity of redemption, whether there be any in a ship, qiutre, :K),'34. Il»[uituble title to a ship not an insurable interest, 10. said to be entirely taken j^way by the registry acts, 27. tlie contrary doctrine niaiiitainod, 34, 51. Evidence aft'orded by the register ol the interest which parties may have in a ship, C(j ct scq. Executors' title to a ship not affected by the registry acts, 47 ct seq. Go. forms ri ipiiri'd by the registry acts cannot be dispensed with on equitable grounds, 33. Grand bill of sale, in what manner distinguished from others, 5 «. Indorsement, form of, rocjuired by the registry acts, incompa- tible, with a mortgage, qiucrc, y."i. as given by the act, only applicable to an absolute sale, 8G. need not be made use of in all cases, H8. Insurance, equitable title to a ship cannot be nuide the subject of, 10. in an action upon a policy of, a court of law al- ways takes takes notice of the doctrine of trusts, 10. U Master of a ship, an action can)iot be maintained against for repairs, iVc. if, by the; terms t)f tlie con- tract, the credit is confined to the owners, 112 «. cannot maintain an action agiiinst a mort- gagee who has not taken possession, unless by privity of contract, 107 ct scq. INDEX. M.'i Morliia;;o of a sliip, doiihts as to its validity, iiitr. xvi. 80. in i;\li!it manner best eHcctcd, 1:}1. Mortgagee of a ship, liahiiities of, for the repairs or su|)pli(s for the use of tlie vessel, 101. taking possession of the vessel, holds himself out to the world as owner, and therefore subject to all liatdlilies, 103. o Oath required by the 2Gth Geo. 3. c. 69, never taken, exoej>t when the re^^ister is tirst granted, or when a new register is eiven, 4 ii. Objects of the registry acts, 97. Owner of a vessel bound to perform the contracts made by the master, 102. but only if fit and reasonable, 102 n. an action cannot be maintained against, ex- cept u])on the ground of contract, 112. his liability transferred by charter-party pro hac lice, 119 /i. 120. Ownership in a vessel sufficiently established without resorting to the register, but subject to be overturned by the docu- mentary proofs afforded by the bill of sale and register, 70. Parol evidence sufficient in an action on a policy of insurance, to prove the property of the ship in the plaintitF, 72, 7-3. Policy of the registry ads, 8, 60, 91 et seq. of insurance, in an action upon, a court of law always takes notice of the doctrine of trusts, 10, 67. R Register, evidence afforded by, of the interest which parties may have in a ship, 66 ct seq. practice of receiving it as evidence, in what cases over-ruled, 71, 7o. not prima facie evidence, unless it shew that the re- gistry was made by the authority of the person to be charged, 72. cainot be evidence for a party claiming, 77. 144 INDEX. Registered owners not liable,* as such, fur stores supplied for the use of the ship, WD, 123. Registry acts, policy of, »,(>(>, 1)1 vt scq. tlieir effect upon creditors in hankruptcy, 37. the Stat. '21 Jac. 1. not repealed by, 4(;, oO, «(.). do not aftect titles passing by operation of law, 47. Ship. uiort?,"age of, doul)ts as to its validity, intr. xvi. 80. transfiT of at sea invalid, if no recital in the bill of sale of the certificate of registry, .5. equital)le title not an insural)le interest, 10. property in, passes instantly by the bill of sale ; defeasi- Ide by subse([»ient omissions, "I'l et se(j. bill of sale sufficient to pass the legal estate, subject to be rendered void by non-compliance with the forms of - the registry acts, 24 et scq. no eipiitable title to, 27. an interest may exist in a party whose name does not appear upon the register, (ji. owner of, bound to perform the contracts made by the master, 102. Statutes, 7 cV 8 Will. 3. cap. 22. 2. 21 Jac. 1. cap. 19. 37. 2G Geo. 3. cap. 60. 3. 34 Geo. 3. cap. 68. 11. T Titles, passing by operation of law, not atbcted by the regis- trj'^ acts, 47 ct scq. 65. distinction between, arising from the acts of parties, or merely by the operation of law, or the act of God, 52. Trusts arising by implication of law, distinguished from that species of trust which exists between a mortna<;()r and mort- gagee, 0.3 ct scq. IINIS. J. Rogers, Printer, 66, Rcd-Lion-Slreel, Clcrkeiiwcll, l^ndon. / S( HOOy. GF LAW IJBI'AKY UNIVERSITY OF CALIFOUNIA LOS ANGELES m^''i'n '"'""''"'''' ■''■Mnuu.. '.II ir/ AA 000 884 564 "5t^'>::.. ^R