Postal S. S. Co. v. International Freighting Corp.

HOLMES, Circuit Judge.

The Barge “Ben”, owned by appellant and chartered by appellee, sank. The entire vessel and its cargo were lost except a lifeboat valued at $150. Appellant filed petition for exoneration from, or limitation of, liability, and secured an injunction against any other legal proceedings against it with respect to liability arising out of the sinking pending determination of the limitation proceedings.

Appellee, as charterer of the vessel and bailee of the cargo, filed its claim in the limitation proceedings, reserving its rights to arbitration under the charter party.…