Aktieselskabet Christianssand v. W. R. Grace & Co.

297 F. 746, 1924 U.S. App. LEXIS 2886, 1924 A.M.C. 507
CourtCourt of Appeals for the Second Circuit
DecidedJanuary 7, 1924
DocketNo. 123
StatusPublished
Cited by6 cases

This text of 297 F. 746 (Aktieselskabet Christianssand v. W. R. Grace & Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Aktieselskabet Christianssand v. W. R. Grace & Co., 297 F. 746, 1924 U.S. App. LEXIS 2886, 1924 A.M.C. 507 (2d Cir. 1924).

Opinion

ROGERS, Circuit Judge.

This is a libel and cross-libel arising out of disputes between the owners and charterers of a vessel. The charter party bears date of September 20, 1918. It was for the carriage of a cargo of manganese ore. The owner of the vessel is a corporation organized under the laws of the kingdom of Norway, and is the owner of the Norwegian bark Skomvaer, and the charterer is a corporation organized under the laws of the state of Connecticut, with an office and place of business in New York City.

The libel, as amended by an order entered after trial and the court’s opinion, claimed 19 days’ demurrage was incurred. It admitted 3% days’ demurrage-was originally paid by the charterer. It sought to recover, therefore, 15% days demurrage at $528 per day. The answer denied that any demurrage was due to the libelant, and it further alleged that the charterer advanced for the account of the owners $1,000, for towing the bark from the Delaware Breakwater to the port of Philadelphia and $1.51 consular fees, which sums have not been refunded by the owners; that the libel should be dismissed, and that the charterer is -entitled to recover the sum of $2,849.51, which represents the 3% days’ demurrage paid by mistake and the advances made for towage and consul fees.

The charterer filed a cross-libel, setting forth the claims asserted in its answer. To this cross-libel the owners filed an answer, denying all of the material allegations.

[748]*748' The court ordered, adjudged, and decreed that Aktieselskahet Christianssand, libelant and cross-respondent, recover of and from W. R. Grace & Co., respondent and cross-libelant, the sum of $8,448.00, being 16 days’ demurrage, and-$2,993.08, unpaid charter hire, less $1,000 advanced for towage, and less $1,848, "3% days’ demurrage heretofore paid, making a recovery of principal of $8,593.08, together with interest thereon from the 30th day of January, 1919, to the date of entry of this decree, amounting to $2,077.46, together with costs as taxed in each of the above-entitled causes, amounting to $152.80, making a total of $10,823.34, which last-named sum it was adjudged was to bear interest until paid.

The owner of the vessel in its appeal claims that demurrage for 19 days should have been awarded, instead of for 16 days, and that the respondent appellant should not have been allowed an offset of $1,000, the cost of towing the bark Skomvaer from Delaware Breakwater to Philadelphia, a distance of 103 miles, which charge was paid by the charterer.

The charterer has filed a cross-appeal. It appeals from that part of the decision and final decree which awarded to the respondent crosslibelant below a recovery of $1,000, the cost of towing the bark Skomvaer from the Delaware Breakwater to the port of Philadelphia, a distance of 103 miles; and it also assigned for error that the court failed to find that the respondent was not guilty of any delays or default, and was not entitled to recover back the overpayment of 3% days’ demurrage which it was claimed had been paid by mistake.

The charter was for a voyage from Bahia, in Brazil, to a United States North Atlantic port, to be named on signing the bills of lading. The charterers named the port of Philadelphia. The charter is the “United States Shipping Board form under Norwegian sailing agreement.” The owner, in its libel as' amended, asserted that there was due to it on account of charter hire and demurrage the sum of $8,798.- , G8. It alleged that it was entitled to one day’s demurrage at the port of loading, and 13% days’ at the port of discharge, a total of 14% days’ demurrage.

It is agreed that the charterers were entitled to 20 lay days, Sundays and holidays excepted, and that the rate of demurrage was $528 a day. The charterers claimed that the boat had been loaded and discharged within the lay days granted them, and théyasked the return of 3% days’ demurrage; which they asserted had been paid under a mistake of fact.

Article 14 of the charter party provided as follows:

“Cargo to be loaded at tbe average rate of not less than 250 tons per running day, Sundays and holidays excepted, and to be discharged at the average rate of 250 tons per running day, Sundays and holidays excepted, time reversible ; i. e., any time saved at loading port to apply at port of discharge, charterers to have the privilege of working vessel on Sundays and holidays, if they so desire, provided they pay all extra expenses and overtime actually incurred by working cargo in connection with ship and cargo, Sundays and holidays so used not to count as lay days.”

And article 13 of the charter party provides as follows:

“It is agreed that lay days for loading and discharging shall be as follows (if not sooner dispatched), commencing from the time vessel reaches lpading [749]*749or discharging dock, or berth, if available, and master has filed written notice and all customs formalities have been complied with. In .event of berth for loading or discharging not being available, lay days to count from the time captain gives notice of readiness to proceed to loading or discharging .berth, vessel being duly entered and all other customs formalities complied with.”

The only “notice” which the record discloses as having been given by the master is found in a letter which he addressed to the charterer’s agent on October 11, 1918, in which he wrote as follows:

“In reply to your letter of even date, I beg to advise you that, on account of discharging of ballast has been delayed, I hereby agree to that lay days shall commence on Monday the 14th inst., 7 a. m.”

It is clear that under article 13 of the charter party both parties agreed that the master was authorized to give notice of the ship’s readiness to load or discharge and that the lay days were to count from the time he gave notice of readiness.

In 36 Cyc. 364, the rule is stated as follows:

“Where the contract is express as to the time the lay days are to commence, it controls, even though loading or discharging is actually begun before the stipulated time.”

And in support of that proposition the decision of this court in Elder Dempster S. S. Co. v. Earn Dine S. S. Co., 168 Fed. 50, 93 C. C. A. 472, is cited, in which it was determined that, when the parties to the contract have explicitly and without any reservation or proviso provided when the lay days shall begin, the express written agreement controls. It appears from the log of the ship that in the instant case the ship did not'complete her discharge until 3 p. m. of October 11, 1918, and on that day the master gave the notice above mentioned.

In the instant case the entries in the ship’s log show that she was discharging ballast in the main hold on October 7th, 8th, 9th, 10th, and 11th until 3 p. m. During those days the ship was not ready to load, and if she had been tendered the charterers would have been under no obligation to accept her and to commence to load her.

It appears, however, that while the ship was not ready the charterers did load and put on board some of the cargo on October 8th, 9th, 10th, and 11th. On October 7th, while no loading was done, the entry in the ship’s log is, “Also rigging loading gear for loading in aft hold.” The court below has held that the lay days began on October 8th and continued for four days to the 12th, and the learned judge in so holding declared: “There can be no doubt” of it.

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Cite This Page — Counsel Stack

Bluebook (online)
297 F. 746, 1924 U.S. App. LEXIS 2886, 1924 A.M.C. 507, Counsel Stack Legal Research, https://law.counselstack.com/opinion/aktieselskabet-christianssand-v-w-r-grace-co-ca2-1924.