stipulation therefor. A bond accepted by the court is a substitute for the property.

"In suits in rem the party claiming the property shall verify his claim on oath or solemn affirmation, stating that the claimant by whom or on whose behalf the claim is made is the true and bona fide owner. And where the claim is put in by an agent or consignee, he shall also make oath that he is duly authorized thereto by the owner; or, if the property be, at the time of the arrest, in the possession of the master of a ship, that he is the lawful bailee thereof for the owner. And, on putting in such claim, the claimant shall file a bond or stipulation for costs as above provided."4

§ 570. Security by claimants for costs. A claimant must file with his claim a stipulation for costs similar to that required of a libelant. The court may upon his appearance or at any time require a respondent or claimant to file such a stipulation for costs. In some districts, the respondent in a suit in personam is always required to give a stipulation for costs, or his appearance or answer will not be received on file. In the New York districts the stipulation is for $250 in suits in rem, and for $100 in suits in personam. It is not necessary to obtain the approval of stipulations for costs by the court or the adverse party before filing them; but the sureties must justify if the adverse party requires it.

§ 571. Stipulation for value. The form of security required in order to obtain the release of property from custody is either

2 Adm. Rule. By Adm. Rule 17, S. D. N. Y., "If, after decree for either party in a possessory suit, the other party shall apply to the Court for process in a petitory suit, and file the proper stipulation, the property shall not be delivered to the prevailing party in the possessory suit until after an appraisement is made, nor until he shall give a stipulation with sureties to restore the property without waste, in case his adversary shall prevail in the petitory suit, and also to abide all interlocutory and final de

a bond to the marshal in double the amount claimed in the libel, or a stipulation for the value of the property or in the Southern District of New York, at least in suits for sums certain, by pay.ment into court of the amount claimed, with interest up to the stated term next succeeding the return day, together with costs.1 Such a stipulation is called a stipulation for value.

"In all suits either in rem or in personam, where bail is given or a bond or stipulation is taken, the court may, on motion, for due cause shown, reduce the amount of such bail or may reduce the amount of security given by either bond or stipulation; and in all cases, either in rem or in personam, where a bond or stipulation is given, if either of the sureties or the corporate surety shall be or become insufficient or the security for costs shall for any reason be insufficient pending the suit, new or additional security may be required by order of the court on motion." 2

66

"All bonds or stipulations in admiralty suits may be given and taken in open court, or at chambers, or before the clerk or a deputy clerk or before any commissioner of the court who is authorized by the court to take affidavits of bail and depositions in cases pending before the court, or before any commissioner of the United States authorized by law to take bail and affidavits in civil cases, or otherwise by written agreement of the parties or their proctors of record." 8 It has been held that "a letter of indemnity, taken after a 'protective seizure' by the French Tribunal of Commerce in Oran, Algeria, upon which a vessel was released from attachment arising out of a collision, did not have the force of a bond given to discharge a vessel arrested upon a suit in rem. The owner of a vessel seized under foreign attachment, who has been served with process, is not required to give a stipulation for value as a condition precedent to entering appearance to defend the suit."5

The amount of the stipulation for value is determined by an appraisement, unless fixed by the agreement of the parties. Where the value of the property attached is much greater than the amount of the libelant's claim, the parties usually agree

upon a less value, for the purposes of bonding only, sufficient to secure the claim. The condition of a stipulation for value is that the claimant will appear in the suit and abide by all orders of the court, interlocutory or final, in the cause, and pay the money awarded by the final decree rendered by the District court, or by the appellate court if any appeal intervene.

The sureties after payment of the decree are subrogated to the right of the libelant. They are not bound to pay the claims of intervenors filed subsequently to the release of the vessel. They are liable for costs, although the stipulation does not specify them, and even when a separate stipulation for costs has been given.9

When such stipulation provides for the payment of interest, the stipulators are liable for this pending an appeal, which results in an affirmance, although the libelant has waived further security upon such appeal.10 The stipulators are not liable for interest on the sum stipulated, unless expressly provided for, except on default in complying with the terms of the stipula.tion.11

The court cannot enter a decree against the stipulators for a greater sum than that named in the stipulation.12 But unless there has been a change of ownership or other rights or equities have intervened, a new stipulation in a larger amount may be ordered as an alternative to a second arrest of the vessel, although it has meanwhile departed from the jurisdiction and returned thereto.13

But see
858;
As to

6 Adm. Rules 10 and 11. Pope v. Seckworth, 46 Fed. The Stelvio, 30 Fed. 509. the liability for a malicious seizure, see Gow v. William W. Brauer S. S. Co., 113 Fed. 672; The Iris, C. C. A., 100 Fed. 104. In a suit against the owner for breach of a charter party the amount would not be reduced by a subsequent offer by him to furnish the use of the vessel which the libelant is not bound to accept. The Aztec, 222 Fed. 169. 7 Madgie, 31 Fed. 926.

8 The Willamette, C. C. A., 31 L.R.A. 715, 70 Fed. 874. See the

Oregon, 158 U. S. 186, 39 L. ed. 943.

The Mt. Desert, 186 Fed 395. 10 Ibid.

11 The Ann Caroline, 2 Wall. 538, 17 Fed. 833; The Webb, 14 Wall. 406, 20 L. ed. 774; The Wanata, 95 U. S. 600, 24 L. ed. 461; The Sydney, 47 Fed. 260. But see the Maggie J. Smith, 123 U. S. 349, 31 L. ed. 175; The Maggie M., 33 Fed. 591.

12 The James M'Caulley, 181 Fed. 932.

13 The I. F. Chapman, C. C. A., 241 Fed. 836; The City of Hart

A court has allowed a stipulation for value to be withdrawn because of the invalidity of the warrant of seizure, 14 and cancelled one given without appraisal upon the subsequent institution of proceedings for a limitation of liability accompanied by a bond for the appraised value of the vessel.15 A stipulation. for value, like stipulations for costs, must be executed by two sureties or a surety company if the principal is a non-resident. If he is a resident of the district, one surety is enough. Sureties need not be freeholders, but they must be residents of the State in which the district is situated. In order to obtain the approval of the stipulation, the claimant should serve upon the libelant's proctor a notice of justification, giving the name, occupation, and residence of each of the sureties proposed, and the time and place at which the libelant may attend and examine them. Such notice should be served a reasonable time before the examination. In the New York districts twenty-four hours' notice is required, except in suits for wages, when notice may be given instanter. When the sureties have been examined, the bond should be presented to the court for approval, on notice.

Where the stipulation provides that upon the failure of the stipulators to pay the amount of a decree against them, execution may issue against both the claimant and his surety, no demand is necessary upon the claimant in order to justify a demand on the surety.16 In such a case, upon payment of the decree by the surety, he is entitled to a writ of fieri facias against the principal.17

§ 572. Bond to the marshal. that property attached must be

ford, 11 Fed. 89; The Fred M. Lawrence, 88 Fed. 910. But see Barney Dumping B. Co. v. The Mutual, 78 Fed. 144.

14 Deas v. The Berkeley, 58 Fed. 920. Cf. The Zodiac, 5 Fed. 220.

15 Société Napthés Transports ▼. Bisso Towboat Co., C. C. A., 241 Fed. 463.

16 The Lowlands, 147 Fed. 986. 17 Admiralty Rule 37. Adm. Rule 11, S. D. N. Y., provides for the

The Revised Statutes provide discharged from custody by the

service of foreign attachment on the garnishee and service of process in proceedings in rem, &c. Adm. Rule 10, S. D. N. Y., provides for the return by the garnishee and for payment of the garnished funds into court. Adm. Rule 12, S. D. N. Y., provides for the form of the monition in proceedings in rem in behalf of the United States and for service of the same.

marshal on receiving from the claimant a bond in double the amount claimed by the libelant, with sufficient surety, to be approved by the judge of the court, or, in his absence, by the collector of the port, conditioned to answer the decree of the court in the case. This statutory bond is under seal, and in that respect differs from the stipulations peculiar to admiralty. As by the terms of the statute the marshal is required to discharge the property on receiving such a bond, he cannot look to the claimant for his fees. Where a stipulation for value is given, the marshal's fees must be paid by the claimant. A summary judgment may be entered against both the claimant and his sureties for the penal sum named in the bond. In case a decree is not satisfied by the claimant, an order will be granted directing the stipulators to show cause within a fixed time 2 why execution should not issue, and if the stipulators fail to fulfil the engagements of their stipulation within such time, judgment is entered against them, and execution issues.

§ 573. Appraisement. The usual method of obtaining an appraisement of property for the purpose of bonding is to apply to the court for an order appointing one or more appraisers. If the parties agree upon the appraisers, an order is not necessary. Before acting, appraisers should take and subscribe before the clerk or deputy clerk an oath or affirmation for the faithful performance of their duties, which should be filed. Notice of the time and place of making the appraisement should be given in writing by the appraisers to the proctors in the cause, and should also be affixed in a conspicuous place near the court rooms, where the marshal usually affixes his notices. Upon completing the appraisement the appraisers should make and sign a report, which must be filed. Exceptions to the report may be filed by the parties, which will be heard by the court on notice.1

§ 572. 1 U. S. R. S., § 941, as awarded 30 St. at L. 1354; Comp. St., § 1567. See S. D. N. Y., Adm. Rule 16, 19, 20, 21. By Adm. Rule 18, S. D. N. Y., except in suits for seamen's wages, when the attachment is issued upon certificate pursuant to U. S. R. S., §§ 4546 and 4547, attachments and arrests may

be summarily vacated upon evidence of improper practice or manifest want of equity.

2 In the New York Districts, within four days of the service of a copy of the order on the proctor for the claimant. S. D. N. Y., Adm. Rule 44.

§ 573. 1 The practice in S. D. N. ·