Post v. Jones
60 U.S. 150 (1857)
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Rule of Law:
A ship master's authority to sell a vessel and cargo is limited to situations of absolute necessity where a fair market and competition exist. A purported sale to a potential salvor in a remote location lacking any market or competitive bidding is void and will be treated as an act of salvage.
Facts:
- In July 1846, the whaling ship Richmond departed on a voyage to the Pacific Ocean.
- On August 2, 1849, while in the Arctic Ocean near Behring's Straits with a nearly full cargo of whale oil and bone, the Richmond ran aground on rocks and became irreparably disabled.
- The master and crew escaped to the nearby barren and uninhabited shore, 5,000 miles from the nearest port of safety, with winter expected to begin in less than three weeks.
- On August 5, the whaling ship Elizabeth Frith arrived, followed the next day by the Panama and the Junior.
- At the suggestion of another captain, the master of the Richmond held a purported auction of the ship and cargo.
- The masters of the Frith and Panama bid minimal amounts ($1.00 and $0.75 per barrel for oil) without any money actually being exchanged.
- The rescuing ships then took on as much oil and whalebone as they needed to complete their own cargoes and departed for home.
Procedural Posture:
- The owners of the ship Richmond filed a libel in the U.S. District Court (a court of first instance for admiralty cases) against the owners of the ships Frith and Panama.
- The District Court decreed in favor of the claimants (owners of the Frith and Panama), upholding the validity of the sale.
- The libellants (owners of the Richmond) appealed to the U.S. Circuit Court (an intermediate appellate court).
- The Circuit Court reversed the District Court, finding the sale void and treating the claimants as salvors entitled to a moiety (one-half) of the proceeds.
- The claimants, as appellants, then appealed the Circuit Court's decision to the Supreme Court of the United States.
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Issue:
Does a ship master have the authority to conduct a valid sale of a wrecked vessel and its cargo out of necessity when there is no market, no competition, and the only potential buyers are other ships in a position to render salvage services?
Opinions:
Majority - Mr. Justice Greer
No. A ship master’s authority to sell a vessel and its cargo arises from absolute necessity, but this power can only be exercised in a context where a fair sale is possible, which requires a market, money, and competition. The court reasoned that the transaction here was not a valid sale but a 'contrivance of an auction' under conditions of duress. The master of the Richmond was 'hopeless, helpless, and passive,' having no choice but to submit to the terms offered by the other ships, which held absolute power. To uphold such a sale would be to allow salvors to take advantage of the calamities of others and turn a public duty into a 'traffic of profit.' Therefore, the claimants did not acquire title to the cargo but must be treated as salvors entitled to a liberal salvage award for their services, which the court determined to be a moiety (one-half) of the property saved plus freight costs for transporting the owners' share to the home port.
Analysis:
This decision significantly clarifies the limits of the 'master's sale' doctrine under maritime law, establishing that necessity alone is insufficient to validate a sale. The court's ruling emphasizes that the circumstances must also permit a fair and competitive transaction, effectively preventing potential salvors from coercing a desperate master into a sham sale. By converting the transaction into one of salvage, the Court reinforces the public policy of encouraging good faith rescue efforts at sea while protecting property owners from exploitation during a disaster. This precedent requires courts to scrutinize the substance, not just the form, of transactions made under duress at sea.
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