United States Supreme Court Cases & Opinions

U.S. Supreme Court

Flink v. Paladini, 279 U.S. 59 (1929)

Flink v. Paladini

No. 299

Submitted February 21, 1929

Decided March 5, 1929

279 U.S. 59

Syllabus

1. The words of the Acts of Congress limiting the liability of shipowners to the value of the vessel and pending freight, and of part owners to their proportional share, must be taken in a broad and popular sense in order not to defeat the policy of the acts to encourage investment in shipping. P. 279 U. S. 62.

2. Therefore, where the title to the vessel is in a corporation whose stockholders are by state law made proportionately liable for obligations of the corporation, the stockholder may limit liability as "part owners." P. 279 U. S. 62.

3. The individual liability assumed under Art. XII, § 3, of the California Constitution and § 322 of the Civil Code by becoming a stockholder of a California ship-owning corporation, though voluntary and contractual, is to be construed as subject to the limited liability acts of Congress. P. 279 U. S. 63.

2 F.2d 21 affirmed.

Certiorari, 278 U.S. 589, to a decree of the circuit court of appeals reversing an order of the district court in a proceeding to limit liability for personal injuries suffered by the present petitioner while serving aboard ship at sea. The reversed order refused a stay of actions in state and federal courts which the petitioner had brought against the respondents to enforce their liability under the state law as stockholders of the corporation owning the ship.

Page 279 U. S. 61