Agnew v. American President Lines, Ltd.

73 F. Supp. 944, 1947 U.S. Dist. LEXIS 2224
District Court, N.D. California·Decided August 26, 1947·No. 24445-R, 24506-G, 24549-G, 24519-G·Published·Cited by 7 cases

Opinion

GOODMAN, District Judge.

In these consolidated actions, libelants, who comprised the greater part of a complement of approximately 172 crew members of the merchant ship President Harrison, seek recovery from respondent shipowner of so-called war risk bonus for the period of their internment on land (December 8, 1941, to August 15, 1945), by the Japanese, during World War II, and during part of their repatriation voyage (i. e. to the 180th meridian) to the United States, at the rates alleged to have been fixed in their shipping articles, as well as for an award for maintenance while interned. Their claims aggregate a sum in excess of $600,000. The United States intervened in certain of the actions for the purpose of protecting a claimed right on its part for reimbursement in the event of any award by the Court in favor of libelants for maintenance.

The facts disclosed at the trial are briefly as follows:

The President Harrison, having opened shipping articles on October 15, 1941, governing a voyage about to be taken, sailed on October 17, 1941, from San Francisco westward for Manila and other trans-Pacific ports. On December 8, 1941, she was overtaken and seized by the Japanese in waters off the Chinese Coast and eventually her crew was interned by the enemy in and about Shanghai. On or about August 15, 1945, the Japanese surrender brought about libelants’ liberation from internment. Libelants were then repatriated to the United States. Basic and emergency wages owing them throughout the period of internment to the time of repatriation were paid as well as whatever wages, bonuses and maintenance were still owing them at the time of internment. 1

When the shipping articles were opened, two riders were affixed thereto by respondent. One rider affected the licensed crew *947 and is set out in full in Appendix I; other rider affected the unlicensed crew and is set out in full in Appendix II. the

When the articles were opened, there were in effect certain agreements designated “Supplementary Bonus Agreement” which had been executed between the Pacific American Shipowners Association (of which respondent was a member) on the one hand and the various Maritime Unions representing libelants, on the other hand. ' These supplementary bonus agreements implemented, with respect to bonuses and internment benefits, the several basic collective bargaining agreements between the same parties. These basic collective bargaining agreements are the agreements mentioned and referred to in the riders. The pertinent provisions of the supplementary bonus agreements affecting unlicensed personnel are set out in Appendix III. The pertinent provisions of the supplementary bonus agreements affecting licensed personnel are set out in Appendix IV.

At the trial the parties agreed that the term “emergency wage increase” contained in the riders is meant to be synonymous with “war bonus.”

The main question presented is whether the libelants are entitled to war bonus and maintenance during the period of their internment on land by the Japanese.

The rights of the parties with respect to war bonus rest in contract. Libelants contend that the only contract between the parties is the shipping articles with attached riders, and that by the terms of the riders, the liability of the respondent for war bonus during the land internment is established. They further urge that even if the provisions of the riders be ambiguous or uncertain, recourse to the supplementary bonus collective bargaining agreements cannot be made to resolve the same. In furtherance of this contention, libelants strenuously objected to the introduction in evidence of the last mentioned agreements, and in the briefs filed on submission of the case, argue against their admissibility. The principal objection urged against the admissibility of these agreements is that the riders clearly provide for war bonus during land internment; but that if there be any ambiguity or uncertainty in the riders, the fault is that of respondent who prepared the riders, and that the court, guided by well known and historic admiralty principles, has a duty to resolve such uncertainties or ambiguities in favor of the seamen.

Respondent on the other hand contends that the language of the riders patently demonstrates the non-liability of respondent; but that if there be ambiguity, resort can always be lawfully had to other documents or even to parole for the purpose of showing the true contract of the parties and their real intent.

Thus, libelants and respondent each find in the riders a clearly defined exposition of the rights and obligations relating to the so-called war risk bonus guaranties.

Libelants interpret the articles to establish respondent’s liability and respondent, the contrary.

The extreme antithesis of their respective analyses of what they say the riders so clearly define, should, without more, produce in an impartial mind the conviction that the riders are ambiguous and uncertain. The riders provide that war bonus “shall be paid while employees are in the war zones defined herein.” But there are no war zones defined therein as such, either geographically or otherwise. Libelants say that the “war zones” are defined in the paragraph in each rider which reads as follows: “This emergency wage increase (i. e. war bonus) to apply from the crossing of the 180th meridian westbound until crossing the 180th meridian eastbound.” There is no other language in the rider which by any stretch of the imagination could supply the missing definition of “war zones.” It is contended by the libelants that war zones are, by the language just above quoted, all areas, land or sea, west of the 180th meridian; but respondent says, with at least equal plausibility, that the language quoted must be viewed as no more than a guaranty of war bonus benefits on that part of the vessel’s voyage carrying it west of the 180th meridian. Indeed, the argument that the language of paragraph *948 4 of Appendix I and paragraph 6 of Appendix II demonstrates a contractual intent to pay wages during internment and wci/r bonus during the voyage west of the 180th meridian and back, is quite persuasive.

Analysis of these antithetical view points could proceed further but what has already been said demonstrates the ineffectuality of justly eliciting from the terms of the riders alone, a single undeniable intent of the parties in connection with war bonus coverage. Upon that basis alone, resort to the supplementary bonus collective bargaining agreements to determine the real intent of the parties is justified and indeed is necessary in order to accomplish justice. This, the most bitter adversaries must be willing to admit, is the primary objective, •of the judicial process.

But libelants contend that even if there be ambiguity in the provisions of the riders, it must be resolved in their favor without recourse to such explanatory evidence as is contained in the supplementary agreements — first, because the Congress has provided that the shipping articles “shall be deemed to contain all the conditions of contract with the crew as to their service, pay, voyage, and all other things * * 46 U.S.C.A.

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Agnew v. American President Lines, Ltd., 73 F. Supp. 944, 1947 U.S. Dist. LEXIS 2224 (N.D. Cal. 1947).

73 F. Supp. 944 (Agnew v. American President Lines, Ltd.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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