This writ brings here for review a libel filed by the petitioner, a Canadian corporation and owner of the steamship Cavelier, against the respondent, the United States Government, to recover, under the provisions of the Public Vessels Act, 1925, 43 Stat. 1112, damages alleged to have been suffered by the Cavelier due to the negligent operation of a public vessel of the United States. The United States District Court dismissed the libel on the grounds that it failed to state a cause of action within the Public Vessels Act, 1925, for which the United States had consented to be sued. The Circuit Court of Appeals, one judge dissenting, affirmed the District Court.
The jurisdiction of the United States District Court is based on Section 24 of the Judicial Code, 28 U.S.C.A. § 41. The petition for certiorari was granted, 323 U.S. 688, 65 S.Ct. 63, because the Circuit Court of Appeals decided a question of general importance relating to the construction of a federal statute. Jurisdiction of this Court rests on Section 240(a) of the Judicial Code, 28 U.S.C.A. § 347(a).
On August 4, 1942, the petitioner, the owners of the steamship Cavelier, filed a libel in personam in admiralty in a federal district court against the United States to recover for damages to its ship, the Cavelier, alleged to have been caused by the negligent operation of the United States Naval patrol boat, YP 249, a public vessel of the United States. The libel averred that on July 7, 1942, the Cavelier, while en route from Canada to Jamaica, was ordered by United States Naval authorities to enter Delaware Bay. Upon approaching the Bay, the Cavelier received further instructions from the naval authorities that in her transit of the waters constituting the entrance to the bay, the Cavelier was to follow directly astern of the patrol boat, YP 249, a public vessel of the United States. While following directly astern of the YP 249, as ordered, the Cavelier struck a submerged wreck and sustained serious damages. It was further alleged that the collision with the wreck was due 'solely to the fault and negligence of the United States vessel YP 249 and those in charge of her.' The libel also stated that petitioner, a Canadian corporation, elected to have its suit proceed in accordance with principles of libels in personam and in rem; that in similar circumstances the Government of the Dominion of Canada allows nationals of the United States to sue in its courts.
The respondent, United States, appeared specially and sought to have the libel dismissed because it failed to state a cause of action for which the United States had consented to be sued. Petitioner, the libellant, opposed this action, relying on Section 1 of the Public Vessels Act, 1925, which provided that a 'libel in personam in admiralty may be brought against the United States * * * for damages caused by a public vessel of the United States * * *.' The federal district court dismissed the libel on the ground that the accident alleged in the libel was not caused by the 'negligent operation of the vessel,' that the vessel was not the 'efficient cause' of the accident but that the accident arose from the 'personal and independent negligence of its officers.' The court held that the Act authorized suit only where the public vessel was the proximate cause of the damage.
The Circuit Court of Appeals affirmed the action of the district court on the theory that the phrase in the Act 'caused by a public vessel' meant caused by those in charge of the vessel, with the vessel as the 'noxious instrument,' the 'physical instrument,' by which the physical damage was done; that in the instant case the physical cause was the submerged wreck. The Circuit Court also held that the Act did not authorize recovery on the admiralty principles of in rem liability.
The dismissal by the lower court of petitioner's libel raises three questions for consideration by this Court: Does the Public Vessels Act, 1925, authorize suit against the United States where the public vessel is not the physical cause, the 'physical instrument' by which the damage is done; that is, is the Act confined to cases involving the collision situation? If not, does the Act, which authorizes the filing of a libel in personam against the United States, authorize recovery in such suit on admiralty principles of in rem as well as in personam liability? Finally, if the Act authorizes recovery on admiralty principles in rem and in personam, does petitioner's libel state a cause of action under those principles of admiralty law?