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Opinion of the Court

Herved overdrages overstaande kontract til herrn brödere Falch Bergen efter en pris av kr. 4,200,000 contant÷ $837.00-a 3.64 der gjenstaar til byggene.

Chra., 14/10/16.

CORNELIUS BULL.

This contract is hereby assigned to Christoffer Hannevig without any responsibility on our part.

Pr. pr. BRÖDR. FALCH,
EINAR FALCH.

In addition to the principal sum mentioned in Finding XIX, and interest thereon to date of judgment, the court allowed, as part of just compensation, interest on the principal sum from date of judgment until paid.

GRAHAM, Judge, delivered the opinion of the court:

The plaintiffs seek to recover just compensation for the value of their interest in a contract for the construction of a vessel which they claim was requisitioned under the requisition order of August 3, 1917, said order being in terms identical with the order involved in the case of BrooksScanlon Corporation v. United States, 265 U. S. 106, there relied upon. That case is conclusive, and this case is decided in conformity with the principles laid down in that case.

It is not necessary to enter into a review of the facts of this case, which are fully stated in the findings.

After due consideration of all the facts of the case and the elements enumerated in the Brooks-Scanlon case, which are proper to be considered in ascertaining just compensation, we conclude that just compensation to the plaintiffs is the sum of $1,200,660.00, with interest as set out in Finding XIX; and making a deduction of $654,936.00, paid to plaintiffs, which is 75% of the award made by the Shipping Board, a balance remains of $1,030,031.90, for which judgment should be entered in favor of the plaintiff, the John M. Connelly Steamship Co. (Inc.), and it is so ordered.

Moss, Judge; HAY, Judge; BOOTH, Judge; and CAMPBELL, Chief Justice, concur.

Reporter's Statement of the Case

LUCKENBACH STEAMSHIP CO., LUCKENBACH COMPANY, AND EDGAR F. LUCKENBACH v. THE UNITED STATES 1

1

[No. C-934]

On the Proofs

Expropriation of contract under act of June 15, 1917; vessels contracted for.-Plaintiffs had a contract with a shipbuilder, subject to delay on account of commandeering by the Government, for the construction of certain power-driven cargocarrying ships and before construction had begun the Government served upon plaintiffs and the shipbuilder identical orders under the act of June 15, 1917, requisitioning all ships of that description under construction in their respective yards. The shipbuilder refused to build the agreed ships according to the terms of the requisition, but an understanding was reached by it with the Government whereby the construction would go forward until an express contract for the price to be paid should be entered into. The said express contract was thereafter entered into between the shipbuilder and the Government fixing the price which was finally paid upon completion of the ships and their delivery to the Government. Held, that there was an expropriation of plaintiffs' rights and contract by the Government, for which they are entitled to just compensation under the rule laid down in Brooks-Scanlon v. United States, 265 U. S. 106. See cases, pp. 11, 38, 80, 98, 119.

The Reporter's statement of the case:

Mr. William B. King for the plaintiffs. Mr. George A. King and King & King were on the briefs.

Messrs. Assistant Attorney General Herman J. Galloway, Henry M. Ward, and James Talbert, for the defendant. Mr. W. W. Nottingham was on the briefs.

Decided February 14, 1927. Motion for new trial overruled December 5, 1927.

The court made special findings of fact, as follows:

I. The plaintiff, Luckenbach Steamship Company (Inc.), is a corporation created by and existing under the laws of

1 Certiorari denied.

Reporter's Statement of the Case

the State of Delaware, with its principal office in the city of New York. It has continuously operated since before the year 1917 a fleet of cargo-carrying steamships upon the high

seas.

On September 23, 1918, Luckenbach Company (Inc.) was merged with Luckenbach Steamship Company (Inc.) by a merger agreement.

Edgar F. Luckenbach is a citizen of the United States. He was at the times hereinafter set forth president of both of the corporations aforesaid and owner of all save a few of the shares of the capital stock of the two companies.

II. On October 2, 1916, plaintiffs, Luckenbach Steamship Company (Inc.) and Luckenbach Company (Inc.), entered into a contract with Sun Shipbuilding Company, owning and operating a shipyard at Chester, Pa., for the construction of two twin-screw steel cargo steamships. The contract providing for the delivery of said vessels is made a part of these findings by reference, and in part provided as follows:

"Builder agrees to deliver said steamships complete and ready for ocean service to the owner at Chester, Pennsylvania, on or before March first, 1918, unless actually prevented by strikes, fire, flood, war in, by, or with the United States of America, or commandeering thereby, or acts of God, or by delay or failure in delivery to builder of turbines or boilers complete; and if for any other reason than those stated above completion and delivery of said steamships shall be delayed beyond the period or beyond the period for which said completion and delivery may be extended by the consent in writing of the owner, signed by its president, as hereinbefore provided, the builder shall pay to the owner as liqui dated damages, and not as a penalty, the sum of one thousand dollars ($1,000) per ship for each day during which completion and delivery shall be delayed; it being further agreed between the parties hereto that for each day prior to March first, 1918, that said vessels shall be completed and ready for delivery to the owner, that the owner shall pay to the builder a like sum of one thousand dollars ($1,000) per ship each day, being liquidated compensation and agreed amount for any additional work done or expenditure made to secure this earlier delivery."

Said contract was guaranteed on the part of said Luckenbach Steamship Company (Inc.) and Luckenbach Company

Reporter's Statement of the Case

(Inc.), by Edgar F. Luckenbach, and on behalf of Sun Shipbuilding Company by Sun Company. Said contract appears as Exhibit B" to plaintiff's petition, and is made a part hereof by reference.

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On December 21, 1916, plaintiffs, Luckenbach Steamship Company (Inc.) and Luckenbach Company (Inc.), entered into a contract with Sun Shipbuilding Company, owning and operating a shipyard at Chester, Pa., for the construction of two twin-screw steel cargo steamships. The contract provided for the delivery of said vessels as follows:

"Builder agrees to deliver the said steamships complete and ready for ocean service to the owner at Chester, Pennsylvania, as soon as they can be properly completed and are ready for delivery and with the guarantee that the two steamers shall be hulls numbers 9 and 10, respectively, and shall follow in natural course the construction and completion of steamers, hulls numbers 1 to 8, inclusive, contracts for which have been executed and are in effect, said steamers, hulls numbers 9 and 10, to be delivered, respectively, seventy (70) days and one hundred (100) days after the completion of said steamer, hull number 8, it being understood and agreed that no delay in such completion of said steamers, hulls numbers 9 and 10, is allowed unless such delay is occasioned by strikes, fire, flood, war in, by, or with the United States of America, or commandeering thereby, or acts of God, or, as to said steamers, hulls numbers 9 and 10, by delay or failure in delivering to builder of turbines or boilers complete, and for each day by which the builder shall fail to deliver either of the steamships provided for in this contract according to the above-described schedule the builder agrees to pay to the owner as liquidated damages, and not as a penalty, the sum of one thousand dollars ($1,000) per ship, and for each day by which the builder shall anticipate delivery of either of the steamships provided for in this contract, according to the above-described schedule, the owner agrees to pay to the builder the sum of two hundred and fifty dollars ($250) per ship, being liquidated compensation and agreed amount for any additional work done and expenditure made to secure this earlier delivery."

Said contract was guaranteed on the part of said Luckenbach Steamship Company (Inc.) and Luckenbach Company (Inc.) by Edgar F. Luckenbach and on behalf of Sun Shipbuilding Company by Sun Company. Said contract appears as Exhibit C" to plaintiffs' petition, and is made a part hereof by reference.

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Reporter's Statement of the Case

The original contract price for each of the vessels under the contract of October 2, 1916, was $1,390,000, or a total of $2,780,000. Under the contract of December 21, 1916, the original price for each vessel was $1,400,000 or a total of $2,800,000.

III. Various modifications of said contracts were made from time to time whereby the original contract and prices of said vessels were increased in the total sum of $116,668.

IV. On August 3, 1917, a telegram as follows was sent by the general manager, United States Shipping Board Emergency Fleet Corporation, to Sun Shipbuilding Company:

"By virtue of an act approved June 15, 1917, and authority delegated to Emergency Fleet Corporation by Executive order of July 11, 1917, all power-driven cargocarrying and passenger vessels above twenty-five hundred tons dead-weight capacity under construction in your yards and materials, machinery, equipment, and outfit thereto pertaining are hereby requisitioned by the United States and will be completed with all practicable dispatch. Letter follows.

"W. L. CAPPS, General Manager."

On August 3, 1917, the following letter was sent to Sun Shipbuilding Company, signed by general manager of the United States Shipping Board Emergency Fleet Corporation:

UNITED STATES SHIPPING BOARD
EMERGENCY FLEET CORPORATION,
Washington.

SUN SHIPBUILDING COMPANY: By virtue of an act of Congress approved June 15, 1917, entitled "An act making appropriations for the Military and Naval Establishments on account of war expenses for the fiscal year ending June thirtieth, nineteen hundred and seventeen, and for other purposes," and by authority delegated to the United States Shipping Board Emergency Fleet Corporation under Executive order of the President dated July 11, 1917, all powerdriven cargo-carrying and passenger ships above 2,500 tons d.-w. capacity, under construction in your yard, and certain materials, machinery, equipment, outfit, and commitments for materials, machinery, equipment, and outfit necessary for their completion are hereby requisitioned by the United States.

On behalf of the United States by virtue of said act and said order, you are hereby required to complete the con

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