Centanni v. T. Smith & Son, Inc.

216 F. Supp. 330, 1963 U.S. Dist. LEXIS 8072, 1963 Trade Cas. (CCH) 70,824
CourtDistrict Court, E.D. Louisiana
DecidedApril 5, 1963
DocketCiv. A. 9300, 10144, 10284
StatusPublished
Cited by10 cases

This text of 216 F. Supp. 330 (Centanni v. T. Smith & Son, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Centanni v. T. Smith & Son, Inc., 216 F. Supp. 330, 1963 U.S. Dist. LEXIS 8072, 1963 Trade Cas. (CCH) 70,824 (E.D. La. 1963).

Opinion

CHRISTENBERRY, Chief Judge.

The foregoing matters having been tried to the Court without a jury, and having heard evidence and argument of counsel, and having taken time to consider, the Court has made the following findings of fact and conclusions of law:

FINDINGS OF FACT

I.

These three private treble damage actions, based upon identical allegations and filed by John C. Centanni, sole proprietor of the business known as Linesman Service Company, George W. White-man Towing, Inc., a Louisiana corporation the entire capital stock of which is owned by George W. Whiteman and/or his wife, and eight individual plaintiffs, were consolidated for the purpose of trial on the issue of liability. For convenience, the plaintiffs hereinafter will be referred to respectively as “Linesman Service”, “Whiteman”, and “the individual plaintiffs”. All plaintiffs claim damages by reason of defendants’ alleged violations of Sections 1 and 2 of the Sherman Act (15 U.S.C. §§ 1, 2) and § 3 of the Clayton Act (15 U.S.C. § 14).

II.

The defendants are T. Smith & Sons, Inc. (T. Smith), Crescent Towing & Salvage Co., Inc. (Crescent), and Terence J. Smith, William S. Smith, Jr. and James E. Smith.

III.

Linesman Service is engaged in the business of furnishing mooring and un-mooring service to vessels in the Port of *332 New Orleans. For such services, it is paid a flat fee, to which there is added an hourly charge after one hour of waiting time.

Linesman Service came into being at least to some extent by reason of Mr. Centanni’s position with Whiteman. For a number of years, Mr. Centanni has been and still is the office manager and dispatcher in Whiteman’s office. His function, among others, is to receive orders for tugs from ships’ agents and arrange for Whiteman’s tugs to assist arriving, departing and shifting vessels. Thus he was in a position to know of the coming and going of all vessels for which White-man performed towage services, and it was a simple matter for him simultaneously to arrange for linesmen with respect to such vessels. For this purpose, he started the business of Linesman Service, and the successful solicitation of Whiteman’s customers, as well as others, was commenced on a regular basis. Linesman Service paid no rent for office space and was operated by Mr. Centanni from his desk at the Whiteman office as well as from his home. The customers of Linesman Service were, in most cases, customers of Whiteman, and it appears that some firms in the shipping business in New Orleans were unaware that Linesman Service was a business completely separate and apart from that of White-man, since Mr. Centanni was also White-man’s employee and operated his linesman business from the Whiteman office. Letters were written by Mr. Centanni to shipping companies soliciting business for both Whiteman and Linesman Service without distinguishing any ownership, and at least one such letter offered in evidence was written on Whiteman stationery.

IV.

The individual plaintiffs formed the group which handled mooring lines, being paid on a piecework basis, with additional compensation in the event of overtime, overtime being time spent on the job in excess of one hour. The operation was very simple. The individual plaintiffs received telephone instructions from Mr. Centanni to meet ships at designated docks. The work consisted of tying up ships and casting off lines. No direct employer supervision was necessary and one of the linesmen routinely kept a time record for the men on the job. The individual plaintiffs had no contact whatsoever with any customer. They acted solely upon the orders of Mr. Centanni. Accordingly, all of the individual plaintiffs were employees of Linesman Service and not independent contractors. This finding is supported by the fact that Linesman Service in effect admits that the individual plaintiffs are employees, for it now maintains the records required by the Wage and Hour Division of the Department of Labor with respect to hours of work and minimum wages, covers them with compensation insurance, and withholds income taxes and social security contributions from their wages.

V.

Whiteman is a comparatively new corporation, but George W. Whiteman and his father conducted a towing business in the harbor of New Orleans for many years. At the pertinent times herein, Whiteman owned several tugs and chartered others from George W. Whiteman individually. Some of the tugs are capable of deep sea towing, but for the most part their operations are confined to harbor towing. Until recently the tugs were not insured, they are generally quite old, are manned by fewer crew members than the Crescent tugs, and although unionized, the Whiteman personnel receive substantially lower wages than do comparable Crescent personnel.

VI.

Crescent is the owner and operator of the largest fleet of tugs in the New Orleans harbor. Its equipment is modern, well maintained and fully insured. All the capital stock of Crescent is owned by members of the Smith family, which includes the individual defendants herein and their sister.

*333 VII.

T. Smith is engaged in the stevedoring business in the harbor of New Orleans. The stockholders of T. Smith are the same as those of Crescent and represent the third generation to own and operate the business, the predecessor of which was founded by their grandfather prior to the turn of the century. Terence J. Smith is President of each corporation. The three Smith brothers, all defendants herein, serve as directors of both corporations. T. Smith owns and operates a fleet of derrick barges used in salvage work and in the stevedoring business. Its equipment is modern, insured and fully crewed. Like Crescent, it is a successful company and enjoys an excellent reputation in its field.

VIII.

In order to appreciate the current status of competition in the towing business within the harbor of New Orleans, it is necessary to review briefly its recent history. Prior to World War I, W. G. Coyle & Co., Inc. was the dominant towing company in the harbor, operating a large fleet of harbor and deep sea tugs and performing the major portion of the harbor towing in the Port. Following the war, Coyle found it was unable to obtain a return on its substantial investment commensurate with the risks involved, partially because of the intense competition it encountered from small independently owned tugs. For this reason, as well as others, Coyle sold its fleet and withdrew from the harbor towing business altogether. These small tugs which work on a “catch-as-catch-can” basis at rates far below those which large companies with substantial overheads are required to charge still abound in and about the harbor of New Orleans, and both Whiteman and Crescent have felt the effect of their competition. At the pertinent times involved herein, neither company could compete with these tugs in the shifting of barges in and about the harbor, and today this work is almost exclusively performed by small independently owned tugs, with the owner usually acting as master, with a deckhand or two.

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Bluebook (online)
216 F. Supp. 330, 1963 U.S. Dist. LEXIS 8072, 1963 Trade Cas. (CCH) 70,824, Counsel Stack Legal Research, https://law.counselstack.com/opinion/centanni-v-t-smith-son-inc-laed-1963.