Morse Drydock & Repair Co. v. Steamship Northern Star - 271 U.S. 552 (1926)
U.S. Supreme Court
Morse Drydock & Repair Co. v. Steamship Northern Star, 271 U.S. 552 (1926)
Morse Drydock & Repair Company v. Steamship Northern Star
Argued May 6, 7, 1926
Decided June 7, 1926
271 U.S. 552
1. Subsection R of § 30 of the Ship Mortgage Act of June 5, 1920, providing that nothing therein shall be construed to confer a lien for repairs when the furnisher, by exercise of reasonable diligence, could have ascertained that, because of the terms of a charter party, agreement for sale of the vessel, or for any other reason, the person ordering the repairs was without authority to bind the vessel therefor, does not attempt to forbid a lien for repairs simply because the owner has stipulated with a mortgagee not to give any paramount security on the ship; the most that such a stipulation can do is to postpone the claim of the party chargeable with notice of it to that of the mortgagee. P. 271 U. S. 553.
2. Under the Ship Mortgage Act of June 5, 1920, a maritime lien for repairs ordered by the owner takes precedence over a mortgage of the ship which was executed, and recorded in the office of the Collector, before the repairs were made, and a certified copy of which was kept with the ship's papers since before that time, but which was not endorsed upon the ship's papers by the Collector,
the Act requiring such an endorsement in order that the mortgage may be valid against persons not having actual notice. P. 271 U. S. 555.
7 F.2d 505 reversed.
Certiorari to a decree of the circuit court of appeals which affirmed a decree of the district court (295 F. 366) sustaining the prior claim of an intervening mortgagee, in a suit to enforce a maritime lien for repairs against a vessel.