B. v. Bureau Wijsmuller v. United States

487 F. Supp. 156, 1979 U.S. Dist. LEXIS 9679
CourtDistrict Court, S.D. New York
DecidedSeptember 20, 1979
Docket76 Civ. 2494-CSH
StatusPublished
Cited by9 cases

This text of 487 F. Supp. 156 (B. v. Bureau Wijsmuller v. United States) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
B. v. Bureau Wijsmuller v. United States, 487 F. Supp. 156, 1979 U.S. Dist. LEXIS 9679 (S.D.N.Y. 1979).

Opinion

MEMORANDUM OPINION AND ORDER

HAIGHT, District Judge:

Plaintiff B. V. Bureau Wijsmuller (“Wijsmuller”), a Netherlands towing and salvage company, brings this suit in admiralty to recover an award for salvage services rendered to the USS JULIUS A. FURER (“FURER”), a warship owned by defendant United States of America, after the FUR-ER grounded on June 30,1974 on a sandbar off the Dutch coast. Jurisdiction is based upon the Public Vessels Act, 46 U.S.C. § 781 et seq., the Government having conceded for the purposes of this action the requisite reciprocity, 46 U.S.C. § 785, and this Court having rejected plaintiff’s prior effort to compel arbitration of its claim in London under the terms of a Lloyd’s Open Form salvage agreement, executed by the FUR-ER’s commanding officer. 1 Four tugs owned by Wijsmuller allegedly assisted the FURER off the strand. The Government concedes that Wijsmuller rendered salvage services to the FURER, and is consequently entitled under the general maritime law to a salvage award. The ultimate question for decision is the reasonable amount of that award. The parties assume their traditional postures. Wijsmuller, as salvor, contends that its highly skillful efforts preserved the FURER from a substantial risk of total loss. The Government, as owner of the salved property, contends that there was little risk to the FURER, and that the assisting tugs’ efforts had little to do with her refloating. In addition to the questions which derive from that basic issue, common to most salvage cases, two additional questions arise: whether Wijsmuller should be regarded as a professional salvor, and thus entitled to the particular consideration which the law gives to such entities in making salvage awards; and whether the Court’s award should include a factor reflecting the change in the rate of exchange between United States and Dutch currency which has taken place since the rendition of the salvage services, and the entry of judgment. The case having been tried to the Court without a jury, the Court now enters the following Findings of Fact, Discussion and Conclusions of Law.

FINDINGS OF FACT

1. The FURER was a United States Navy guided missile armed, anti-submarine warfare escort ship. The FURER had a bulbous bow consisting of a sonar dome, which is ordinarily kept filled with 94 tons of water. The dome extended ten feet below the straight line keel. The propeller, at its deepest point, extended 7 feet 7V4 inches below the keel. At 1355 hours on June 29, 1974, the FURER sailed from the Dutch port of Den Helder, bound for Aalborg, Denmark. At about 2100 hours on June 29, the FURER’s medical staff diagnosed a sick crewman’s condition as appendicitis. The FURER reversed her course, and increased speed to 20 knots to rendezvous with a Dutch medical evacuation helicopter. The helicopter turned back because of alleged poor visibility, and the Dutch naval authorities instead sent a tug to meet the FURER and evacuate the crewman. The FURER changed course again to rendezvous with the tug. While proceeding at about 20 knots on a heading of 125° true, the FURER ran aground at about 0123 hours on June 30. The FURER grounded on the Haaksgrunden Bank sandbar, to the west of Den Helder, at a position later established by cross bearings to be 52° 57' 42" N and 4° 35' 54" E. At the time of the grounding, the sonar dome was filled with water. 2

*159 2. The FURER was launched in July 1966, and commissioned on November 11, 1967. Since the value of the salved property is an important element in determining the proper amount of a salvage award, 3 considerable evidence was offered on this point. The FURER was a specially designed and constructed vessel, having a value only for a special purpose, and thus no market value can be established. In these circumstances, the FURER’s salved value is its replacement value, less depreciation. 4 At the time of rendition of the salvage services, the Navy was carrying the FURER at a depreciated book value of $20,-000,000. This is based upon a reproduction cost in 1974 of $40,323,718, a figure testified to by a Government witness and accepted by the plaintiff; 5 and the application of a 16-year depreciation period which the Government derived from a statutory definition, 10 U.S.C. § 7295, of when a naval vessel is “underage.” 6 The Government bases its calculation of a depreciated value for the FURER, in July of 1974, of $20,000,-000 (in round numbers) upon the fact that of this statutory life of 16 years, 8 years had passed since the vessel’s launching in July of 1966, an event also referred to as the “keel date.” Wijsmuller argues for a higher salved value, on the theories that a meaningful period of depreciation cannot run until the vessel was commissioned and fully ready for service; and that the vessel’s useful life might well exceed the 16 years specified by the statute. In that latter regard, evidence was adduced that some World War II destroyers were still in commission at the time of trial, some 30 years later. I do not regard the precise salved value of the FURER as of overwhelming importance, since by any yardstick it amounts to at least $20,000,000, far and away the highest salved value involved in any reported American salvage decision. To the extent that a precise finding is necessary, I find that the salved value of the FURER was $23,400,000, a figure which reflects the replacement cost of $40,000,000, and the fact that only 6.64 years had passed since the FURER was commissioned and her useful operational life began. Wijsmuller’s evidence with respect to the longer lives of different kinds of vessels (which if adopted to the FURER would result in a longer period of depreciation and hence a higher, salved value) does not support a finding with respect to a vessel of the FUR-ER’s particular characteristics. I therefore apply the 16-year statutory period of depreciation, but measure that period from the date of commission, not the keel date.

3. The Wijsmuller company was formed in 1911, and has been engaged in the business of oceangoing towage, salvage, and other marine activities since then. In June and July of 1974 the company owned or operated 15 tugs and one special salvage vessel, the KRAB, which was designed not for towing, but for pumping, under-water cutting and repair, and lifting. Seven of the 15 tugs were oceangoing; the others were smaller and generally confined their activities to harbors. In 1974 Wijsmuller maintained some of its oceangoing tugs on “salvage station” in various parts of the world. A vessel on salvage station accepts no other employment. She stays in one place, monitors all emergency radio frequencies, and responds to any requests for assistance within her geographical area. The salvage stations Wijsmuller tugs main *160 tained included the Persian Gulf, the Caribbean, the Mediterranean, the North Atlantic, South African waters, the English Channel, and the North Sea.

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Cite This Page — Counsel Stack

Bluebook (online)
487 F. Supp. 156, 1979 U.S. Dist. LEXIS 9679, Counsel Stack Legal Research, https://law.counselstack.com/opinion/b-v-bureau-wijsmuller-v-united-states-nysd-1979.