Caswell v. Koninklyke Nederlandsche Stoomboot Maalschappy, N. V.

205 F. Supp. 295, 1962 U.S. Dist. LEXIS 4711
CourtDistrict Court, S.D. Texas
DecidedJune 5, 1962
DocketCiv. A. No. 13723
StatusPublished
Cited by6 cases

This text of 205 F. Supp. 295 (Caswell v. Koninklyke Nederlandsche Stoomboot Maalschappy, N. V.) is published on Counsel Stack Legal Research, covering District Court, S.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Caswell v. Koninklyke Nederlandsche Stoomboot Maalschappy, N. V., 205 F. Supp. 295, 1962 U.S. Dist. LEXIS 4711 (S.D. Tex. 1962).

Opinion

INGRAHAM, District Judge.

Plaintiff longshoreman sued defendant shipowner for $75,000 damages for personal injury, alleging unseaworthiness of the vessel and negligence of the vessel’s personnel. Defendant denied these allegations and claimed the injury resulted from a breach of warranty of workmanlike service by the stevedore, Strachan Shipping Company. On September 15, 1961, defendant shipowner, by its attorneys of record, wrote the stevedore tendering the defense of this suit to it. The stevedore refused to accept the defense, whereupon it was impleaded as a third party defendant by the shipowner. Upon trial, the jury held defendant-third party plaintiff blameless, but in answer to special interrogatories, further held that the third party defendant had failed to perform its duties in a safe and workmanlike manner in that it made improper use of the ship’s loading facilities, which was the proximate cause of plaintiff’s injury.

Three motions are now before the court, viz.: plaintiff’s motion for new trial; defendant’s motion for judgment, including recovery over against the third party defendant of costs and attorneys’ fees reasonably incurred in the defense of the suit; and third party defendant’s motion for judgment, including the provision that third party plaintiff take nothing from third party defendant.

Plaintiff’s motion for new trial is without merit, and will be denied. The motions presented by the shipowner and the stevedore raise but one issue — whether or not a third party plaintiff is entitled to recover expenses and attorneys’ fees over against a third party defendant where the third party plaintiff has successfully defended against a suit for injury for which the jury found the third party defendant solely responsible.

The law is clear that a stevedore’s breach of warranty to conduct its activities in a safe and workmanlike manner, resulting in injury to a longshoreman fo?* which the shipowner is held liable, gives rise to a right to indemnity from the stevedore. Ryan Stevedoring Co. v. Pan-Atlantic Steamship Corp., 350 U.S. 124, 76 S.Ct. 232, 100 L.Ed. 133 (1956). And, as an incident to this recovery over against the stevedore, the shipowner also may recover expenses and attorneys' fees [297]*297reasonably incurred in the defense of the action. See, e. g., Drago v. A/S Inger, 194 F.Supp. 398, 409 (D.C.E.D.N.Y. 1961); Holley v. The Manfred Stansfield, 186 F.Supp. 805, 809 (D.C.E.D.Va.1960). Thus, if here, the stevedore’s breach of warranty had rendered the vessel unseaworthy, or even activated a preexisting unseaworthy condition, the longshoreman could have recovered against the shipowner who, in turn, would be entitled to indemnity from the stevedore, including costs and attorneys’ fees. There appears to be no logical basis for distinguishing between a successful and an unsuccessful defense on the part of the shipowner, to the end that costs and attorneys’ fees may be recovered as a normal element of indemnity in the latter — where the shipowner is held liable for the negligence of the stevedore — but not at all in the former — where the shipowner is not held liable for the negligence of the stevedore. In either instance, the shipowner is put to the time and expense of defending against an action which springs from an injury occasioned by the acts or omissions of the stevedore; in either instance, the stevedore has breached its obligation to the shipowner which has resulted in a lost to the shipowner.

On several occasions, district courts have denied recovery of attorneys’ fees and costs where the shipowner was not found primarily liable to a third party for the stevedore’s breach. See, e. g., Hill v. American President Lines, Ltd., 194 F.Supp. 885 (D.C.E.D.Va.1961); Nicholson Transit Co. v. Great Lakes Towing Co., 185 F.Supp. 685 (D.C.N.D. Ohio 1960); Fox v. The S.S. Moremacwind, 182 F.Supp. 7 (D.C.E.D.Va.1960). In general, these courts have held that where the shipowner successfully defends against a suit by a longshoreman, expenses and attorneys’ fees are but a cost of doing business. See Fox v. The S.S. Moremacwind, supra, at 12. Patently, this is not a reason for denying recovery of the costs of litigation over against the third party defendant stevedore; this is no more than a restatement of the courts’ conclusion denying recovery.

Other district courts have denied recovery for reasons which are not applicable here. For example, in Deans v. Kihlstrom, 197 F.Supp. 339 (D.C.E.D.Va. 1961), the court concluded that “in the absence of a willingness to abandon the defense of the original action, the right to recover over for attorneys’ fees and expenses must be dependent upon a recovery directing payment by the shipowner.”1 197 F.Supp. at 340 (emphasis supplied). The missing element which led to a denial of recovery in the Deans case is present in the instant case, where the shipowner made a specific offer to abandon the defense of the action prior to the actual trial. j

In the case of Gonzales v. Pennsylvania Railroad Company, 183 F.Supp. 779 (D.C. S.D.N.Y.1960), after the jury returned a verdict in favor of the shipowner and against the plaintiff longshoreman, the court held that the shipowner could recover expenses and attorneys’ fees over against the third party defendant stevedore. Although the court primarily based its decision on a general indemnity clause in the contract between the stevedore and the shipowner, it correctly stated that a third party defendant stevedore may beheld responsible for payment of a defendant shipowner’s attorneys’ fees even in the absence of a written indemnity agreement. The court further stated “nor would it be reasonable to relieve Spencer (stevedore) of an obligation that would otherwise attach because the Railroad (shipowner) was successful in resisting plaintiff’s ‘claim for damages.’ ” 183 F. Supp. at 781 (explanation added).

Apparently, the appellate courts have only twice been called upon to determine the right to recover over attorneys’ fees and expenses where the original action against the shipowner failed. In McCall v. Overseas Tankship Corporation, 222 F.2d 441 (2d Cir. 1955), a case quite dissimilar factually from the one at bar, the court denied recovery of attorneys’ fees over against a third party defendant airline, where the shipowner successfully defended against an action based on the Jones Act, 46 U.S.C.A. § 688. The eourt [298]*298found there was no warranty running from the third party defendant to the third party plaintiff, no specific contract for indemnity, and hence, no foundation upon which to rest a claim for attorneys’ fees and costs.

' The most recent and most analogous appellate authority is consistent with recovery over of attorneys’ fees and expenses in the instant case. In Paliaga v. Luckenbach Steamship Company, 301 F.2d 403 (2d Cir. March 22, 1962), a shipowner was sued for injuries to a longshoreman. The stevedore was impleaded, and the case went to the jury on the issue of unseaworthiness. While the jury was deliberating, the stevedore settled with the longshoreman, who then, with prejudice, dismissed his case against the shipowner. The shipowner sought to have the trial continued on its third party claim against the stevedore for attorneys’ fees and expenses, but the trial court denied its motion. Appeal was taken, and the circuit court stated the questions to be decided thusly:

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Bluebook (online)
205 F. Supp. 295, 1962 U.S. Dist. LEXIS 4711, Counsel Stack Legal Research, https://law.counselstack.com/opinion/caswell-v-koninklyke-nederlandsche-stoomboot-maalschappy-n-v-txsd-1962.