American Export Lines, Inc. v. Atlantic & Gulf Stevedores, Inc.

205 F. Supp. 316, 1962 U.S. Dist. LEXIS 4712
CourtDistrict Court, E.D. Virginia
DecidedJune 7, 1962
DocketNo. 8016
StatusPublished
Cited by4 cases

This text of 205 F. Supp. 316 (American Export Lines, Inc. v. Atlantic & Gulf Stevedores, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Export Lines, Inc. v. Atlantic & Gulf Stevedores, Inc., 205 F. Supp. 316, 1962 U.S. Dist. LEXIS 4712 (E.D. Va. 1962).

Opinion

WALTER E. HOFFMAN, Chief Judge.

This is an action by a shipowner, American Export Lines, Inc., hereinafter called “Export”, seeking indemnity from a stevedore, Atlantic & Gulf Stevedores, Inc., referred to as “Atlantic”, for breach of a contract pertaining to stevedoring services.1

The S. S. Exeeller, owned and operated by Export was the subject of this stevedoring contract on September 30, 1956. A gang of longshoremen, of which Alton Mosley was hatch boss, was employed to load cartons of cheese into the forward end of No. 5 hatch of the vessel. John W. Shell was the burton winch operator for the gang. David W. Hardy operated the up-and-down winch. Daniel Johnson acted as signalman or gangwayman. Arthur Harper was a holdman.

The work of loading that hatch began at least by 8 A.M. on September 20. At about 10:50 A.M. on that date, a draft of cheese while being brought on board by the longshoremen struck the coaming of the hatch and some of the cartons fell into the hold, striking and causing serious injuries to Arthur Harper.

What caused the draft to strike the coaming is vigorously disputed. The longshoremen testified that both cargo winches at the forward end of the hatch were defective in that the magnetic brakes did not hold and allowed each draft to drift to a stop. They said the mechanical foot brakes were frozen. They said this condition was known to the winch operators, signalman, hatch boss, and stevedore foreman of Atlantic for at least 2% hours before the accident; that the stevedore foreman said “keep on working” and they did so. They did this, they said, even though the brakes were not repaired before the accident, though a ship’s mate had promised to send the electrician but did not do so. They testified that the fatal draft drifted into the coaming after they attempted to stop it over the deck in mid-air by applying the magnetic brakes.

The stevedore foreman, on the other hand, testified that no complaint was made to him about the winches, that the work proceeded without incident until the accident and for the rest of the day thereafter. The present Norfolk manager of Atlantic, E. J. Adams, testified that he saw the accident, that the longshoremen swung the fatal draft over the deck and that they then moved it without stopping in the direction of and then [318]*318into the hatch coaming, at which point it upset and cartons spilled into the hold, striking and injuring Arthur Harper. The manager’s testimony clearly indicated that the longshoremen failed to raise the draft to sufficient height, thus permitting it to strike the coaming instead of passing above it.

The foregoing was substantially the testimony adduced at the trial in which Harper instituted a civil action against Export alleging negligence on the part of Export and unseaworthiness of the Exceller. Both issues were submitted to the jury under an appropriate charge. The jury returned a general verdict in favor of Harper in the sum of $25,000.00. No special interrogatories were requested or submitted. It should be noted that Atlantic was not a party to this action, either as an original or third-party defendant. Indeed, Atlantic could not have been sued by Harper due to the provisions of the Longshoremen’s and Harbor Workers’ Compensation Act.

On June 28, 1957, Atlantic wrote Export asserting a lien for compensation benefits paid to Harper. Atlantic knew that Harper’s action had then been filed. On May 15, 1958, only 25 days prior to trial, Export invited Atlantic to defend Harper’s action against Export. Atlantic declined, stating in part, “ * * * there is nothing in our file to indicate that we should accept your invitation to defend American Export Lines, Inc.” During the trial of Harper's action from June 10-13, 1958, counsel for Atlantic was present as an observer. No effort was ever made by Export to join Atlantic as a third-party defendant. Subsequent to the entry of judgment Export, on June 24, 1958, requested Atlantic to pay the judgment or appeal. Atlantic promptly declined. On July 29, 1958, Export paid the judgment, interest and costs aggregating $25,371.72. Legal fees and expenses incurred by Export in the defense of Harper’s action amount to $6,213.65. This indemnity action was thereafter instituted seeking the recovery of $31,585.37, plus interest at 6% per annum and the taxable court costs of the pending litigation.

The testimony at the indemnity trial was substantially identical to the original action; the essential difference being that the indemnity action is in admiralty with no jury, whereas Harper’s case was on the civil side of the court and heard before a jury. Thus we have different triers of fact and, as frequently happens, there are contrary findings. The clear preponderance of the evidence is that the sole proximate cause of the accident was the negligence of Harper’s co-employees, Shell and Hardy, in the operation of the winches. Nevertheless, there was evidence to go to the jury in the Harper case on the issues of negligence and unseaworthiness but, if the court had been the trier of fact, Harper would not have recovered against Export. The jury had been instructed in Harper’s action that if the sole proximate cause of the accident was the negligence of Atlantic’s employees, there should, of necessity, be a finding for the defendant, Export. The jury concluded that either Export was negligent or the vessel was unseaworthy, or both.

Export was at liberty to file a third-party complaint against Atlantic, as a third-party defendant, in the Harper action. This, for reasons of its own, it did not do. If such a third-party complaint had been filed, Atlantic was then entitled to the benefit of a jury trial on the issue as to whether it had performed its stevedoring contract in a workmanlike manner and with reasonable safety. Weyerhaeuser Steamship Co. v. Nacirema Operating Co., Inc., 355 U.S. 563, 78 S.Ct. 438, 2 L.Ed.2d 491. In Weyerhaeuser, a third-party action, a jury had found for the longshoreman against the shipowner on the issue of negligence only. After receiving the verdict, the district court held that the verdict was dispositive of the third-party action and directed a verdict for the stevedore. The Supreme Court held that the issue of the stevedore’s alleged failure to perform its contractual undertaking with reasonable safety constituted a jury question.

[319]*319As pointed out in Weyerhaeuser, the issue as to the stevedore’s breach of contract was not encompassed by the instructions in Harper’s case against Export. The jury, in Harper, could have concluded that the winches were unseaworthy — an event for which the stevedore would not be liable unless such defect could have been ascertained by the stevedore in the exercise of reasonable inspection of the equipment, Smith v. Jugosalvenska Linijska Plovidea, 4 Cir., 278 F.2d 176, or unless the negligence of the stevedore brought the unseaworthiness of the vessel into play, Crumady v. The Joachim Hendrik Fisser, 858 U.S. 423, 79 S.Ct. 445, 3 L.Ed.2d 413. In the present case, the jury could have concluded that the magnetic brakes on the winches became defective at the moment of the accident. If so, the vessel would have been unseaworthy, but without any breach on the part of Atlantic.

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205 F. Supp. 316, 1962 U.S. Dist. LEXIS 4712, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-export-lines-inc-v-atlantic-gulf-stevedores-inc-vaed-1962.