American Tobacco Company v. Transport Corporation

277 F. Supp. 457, 1967 U.S. Dist. LEXIS 9170
CourtDistrict Court, E.D. Virginia
DecidedDecember 15, 1967
DocketCiv. A. 5360
StatusPublished
Cited by11 cases

This text of 277 F. Supp. 457 (American Tobacco Company v. Transport Corporation) 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 Tobacco Company v. Transport Corporation, 277 F. Supp. 457, 1967 U.S. Dist. LEXIS 9170 (E.D. Va. 1967).

Opinion

MEMORANDUM OF THE COURT

MERHIGE, District Judge.

The plaintiff in this action instituted suit on July 28, 1967, in the Law and Equity Court of the City of Richmond, against the present defendant and third party plaintiff, The Transport Corporation, now known as Epes Transport System, Incorporated, hereinafter referred to as Transport, alleging negligence on the part of Transport in the shipping and handling of certain equipment, to-wit: ten cases of machinery, shipped from West Germany on the vessel known as “American Merchant” owned by the third party defendant United States Lines, hereinafter referred to as U. S. Lines, who delivered the said machinery to Norfolk, Virginia, and unloaded from the “American Merchant” by the third party defendant, Southern Stevedoring Corporation, on July 17, 1966; that the processing of the machinery through customs was handled by the third party defendant, Fred P. Gaskell Company, Incorporated, who at no time had physical custody of the machinery but who, as per directions of the plaintiff, American, caused the machinery to be transported and delivered by the third party defendant, Old Dominion Freight Line, who in turn transported the machinery from the pier to Richmond, Virginia; and subsequent thereto, Transport transported the said machinery to American’s plant at Reedsville, North Carolina.

Transport, by appropriate petition, removed the suit pending in the Law and Equity Court to this Court, and thereafter filed its Answer to the suit as well as a third party complaint against the U. S. Lines, Southern Stevedoring, Gaskell, Norfolk Terminal Corporation and Old Dominion Freight Line. In its third party complaint, Transport alleges “that the sole, proximate cause of the damages sustained by the plaintiff was negligence in the handling and transportation by the third party defendants, jointly and severally, of the machinery in question, without any negligence on the part of the defendant and third party plaintiff.” Transport, in its prayer in said third party complaint, moves “if it be found liable to the plaintiff in this matter, to enter judgment in its favor against the third party defendants, jointly and severally, for exoneration on account of damages sustained by the plaintiff by reason of the negligence of the third party defendants, jointly and severally, * *

Thereafter, Southern Stevedoring filed its Answer and Motion to Dismiss alleging as its grounds for said motion that the third party complaint failed to state a cause of action against it.

Norfolk Terminal Corporation filed its Answer, along with an affidavit which showed that the said Norfolk Terminal Corporation had not commenced business until subsequent to the negligence alleged in both the original suit and the third party complaint. All counsel agreed that Norfolk Terminal Corporation should be dismissed as a third party defendant, and it is so ordered.

Gaskell Company filed its Answer to Transport’s allegations, as well as a motion for summary judgment. On Decern *460 ber 12, 1967, in open court, Transport moved to dismiss the third party defendant, Gaskell, which motion was granted and the said third party defendant, Fred P. Gaskell Company, Incorporated, stands dismissed.

United States Lines filed its Answer to Transport’s complaint, alleging, amongst other things, that Transport’s claim is “time-barred” by the Carriage of Goods by Sea Act, 46 U.S.C.A. § 1303(6); and filed in addition thereto its motion to dismiss on the same grounds.

Old Dominion filed its Answer, admitting certain allegations of the third party complaint but denying any liability to any party on account of the matter set forth in the complaint and third party complaint, and in addition alleged a release from the original plaintiff, American. Old Dominion, in open court on December 12,1967, moved to be dismissed on the additional grounds that no cause of action was stated against it in the third party complaint, which motion was granted and the said Old Dominion stands dismissed.

The Court set all motions for hearing on December 12, 1967, and found from the evidence adduced at said hearing and from the pleadings all of the factual matters heretofore and hereafter set out in this memorandum.

There was introduced on behalf of U. S. Lines a short form bill of lading dated June 26, 1966, showing that the goods allegedly damaged were consigned to the order of the American Tobacco Company; that the shipper was one Ernst Schmidt, Jr.; that the port of loading was Hamburg, Germany, and the port of discharge “where goods are to be delivered to consignee or on—carrier Newport News.” The testimony showed that the cargo was, in fact, discharged by U. S. Lines from its ship, American Merchant, at Norfolk, Virginia; that U. S. Lines received a cargo receipt from Southern Stevedoring Corporation acknowledging receipt of the ten cases of machinery on July 17, 1966. It is apparent from the bill of lading and from the testimony adduced at the hearing on December 12, 1967, that the responsibility of the defendant, U. S. Lines, ceased upon delivery of the goods at the pier at Norfolk, Virginia, on July 17, 1966. The aforementioned bill of lading was given subject to the provisions of the Carriage of Goods by Sea Act, as well as to the terms contained in the United States Lines’ regular long form bill of lading, a copy of which was introduced as Exhibit 3, and specifically states that the responsibility of the U. S. Lines terminates upon delivery at the port of discharge—in this instance, Norfolk, Virginia; and, in addition, incorporates all the provisions of the Carriage of Goods by Sea Act including the carrier’s rights, immunities, etc.

The evidence adduced at the hearing on December 12, 1967, conclusively shows that if the Carriage of Goods by Sea Act is applicable as between the third party plaintiff and the United States Lines, then the United States Lines is entitled to dismissal by virtue of the provisions of that Act, 46 U.S.C.A. § 1303(6), which provides in essence that “the carrier shall be discharged from all liability in respect to loss or damage unless suit is brought within one year after delivery of the goods.”

There can be little argument but that the American Tobacco Company is unquestionably barred under the provisions of the aforementioned Act, since they have failed to institute any suit against the United States Lines within one year from July 17, 1966.

It is perhaps apropos to state that the Court finds that no exceptions were taken to the cargo condition at the time the goods were turned over to the first intrastate carrier, i. e. Old Dominion, nor were any exceptions taken to the condition of the cargo when delivered at the port of Norfolk by the United States Lines. The first notice United States Lines had of any alleged damage to the cargo came by virtue of a letter dated August 1, 1966, from American Tobacco Company to the United States Lines wherein American Tobacco claimed that the machinery contained in. the cases was severely damaged and they, the American Tobacco Company, intended to file claim against the *461 United States Lines for the alleged loss. The plaintiff, however, failed to file any such claim, but instead chose to file its claim by way of a motion for judgment against the instant third party plaintiff.

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Bluebook (online)
277 F. Supp. 457, 1967 U.S. Dist. LEXIS 9170, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-tobacco-company-v-transport-corporation-vaed-1967.