CIA. Estrella Blanca, LTDA. v. S.S. NICTRIC

247 F. Supp. 161, 1965 U.S. Dist. LEXIS 7606
CourtDistrict Court, D. Oregon
DecidedMay 25, 1965
DocketCiv. 61-538
StatusPublished
Cited by10 cases

This text of 247 F. Supp. 161 (CIA. Estrella Blanca, LTDA. v. S.S. NICTRIC) is published on Counsel Stack Legal Research, covering District Court, D. Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
CIA. Estrella Blanca, LTDA. v. S.S. NICTRIC, 247 F. Supp. 161, 1965 U.S. Dist. LEXIS 7606 (D. Or. 1965).

Opinion

KILKENNY, District Judge.

For decision is a three party controversy between the owner of a vessel, a time charterer and a voyage charterer. A libel was commenced by the owner of the vessel SS NICTEIC against the time charterer, Amtro Corporation, S.A., for sums alleged due under the charter and for a breach thereof, together with a libel in rem against the subfreights and demurrage monies of the SS NICTEIC in the possession of Schnitzer Steel Products Co., the voyage charterer. Amtro filed a cross libel *164 against Schnitzer for demurrage, freight and other charges claimed under the voyage charter between Schnitzer and Am-tro, under which Amtro transported for Schnitzer a cargo of scrap metal from the United States and Canada to Japan aboard said vessel. Additionally, Amtro seeks damages from Schnitzer for a breach of the charter and for misrepresentation. The time charter of the NIC-TRIC from owners to Amtro was dated June 23,1961, and was for a period of approximately nine months, thirty days, more or less. The charter hire was on the basis of $23,090.16 per month, payable one month in advance. Amtro was required to deposit one month’s hire with an escrow agent and took delivery of the NICTRIC on August 6, 1961, the hire commencing the following day. Under a time charter, the owner’s crew continues to navigate and manage the vessel, but the cargo carrying capacity is rented by the time charterer for a fixed period of time for the carriage of goods, on as many voyages as may fit into the charter period, the ship being subject to the time charterer’s direction as to ports touched, cargo loaded and other business matters.

Amtro entered into a voyage charter with Schnitzer on July 14, 1961, under the terms of which charter the carrying capacity of the vessel was let to Schnitzer for a single voyage from Canada and Oregon to Japan. The designated cargo was scrap metal. Under this charter the freight charge was a lump sum of $63,-000. 00, plus $2,500.00 for an extra loading port, 90% of the freight to be prepaid and the balance payable on completion of discharge. The cargo was to be loaded, stowed and discharged within a total of 23 weather working days of 24 hours each, Sundays and holidays excepted unless used, in which case the actual time used was to be counted. The time period mentioned is customarily referred to as “lay time.” The lay time expired on October 9, 1961. Congested harbor conditions in Japan caused a delay of approximately three months, the discharge being completed on December 31, 1961. The charter provided for de-murrage at the rate of $700.00 per day after the expiration of the lay time. Remaining unpaid on the total freight bill is the sum of $4,550.00.

The monthly charter hire for August, September and October, 1961, was paid by Amtro. No payment was made in November nor thereafter. Due to the failure to make the payments as specified, Owners, on December 31,1961, withdrew the NICTRIC from the time charter. The vessel was then drydocked for repairs until January 16, 1962, after which it voyaged to a port in Australia and was there re-chartered.

OWNERS’ CLAIMS AGAINST AMTRO

Charter• Hire

Owners and Amtro agree that the sum of $21,530.89 is the amount due under the charter to the date of its withdrawal on December 31, 1961. However, Amtro claims an offset of $1,874.17, due to the fact that Schnitzer’s lay time was extended when a deficiency in the vessel’s loading gear interrupted a loading operation at Westminster, B. C. Amtro’s theory is that the extension in Schnitzer’s lay time caused a reduction of $1,-874.17 in the amount of demurrage it can claim and that this constituted a breach of Clause 1 of the time charter which provided, among other things, “That the Owners shall * * * keep the vessel in a thoroughly efficient state in hull, machinery and equipment for and during the service.” Owners disclaim responsibility for reduced demurrage on the ground that Clause 15 of the charter provided Amtro’s exclusive remedy and that a credit of $846.64 has been given to Amtro under said Clause. 1 A similar clause was before District Judge Learned Hand when he decided, in the lower court, a *165 case which was later appealed and is cited as The Bjornefjord, 271 F. 682 (2d Cir. 1921). There, Judge Hand concluded that the charter remedy was exclusive. Judge Hand’s interpretation of this clause is, in my opinion, sound ahd should be followed. Owners are entitled to judgment against Amtro for the balance of the charter hire, to-wit: $21,-530.89.

Crew Overtime

Amtro disputes Owners’ claim of $1,658.41 for crew overtime, conceding, however, that the sum of $478.47 is owing on such claim. Involved in the dispute is a construction of Clause 23 of the charter. 2

Of vital significance is the fact that the underlined language was substituted by the parties in lieu of that which read: “officers, engineers, winchmen, deck hands and donkeymen for overtime work done in accordance with the working hours and rates stated in the ships articles.” The record discloses that the substitution was made in order to eliminate the need for mathematical calculations and record keeping. If, as argued by Am-tro, the language be interpreted to mean that the overtime should apply only during periods of loading and discharge, there would have been no need for the elimination of the quoted language, nor for the substitution of the underlined language. True enough, the substituted language is subject to a charge of ambiguity. Nevertheless, when read in the light of the Captain’s testimony and of the deleted language, the intention of the parties assumes a cloak of understanding and dictates a finding that the parties intended a flat $350.00 per month, or pro-rata for a partial month, regardless of the actual amount of overtime consumed. Otherwise, the substituted language is completely without meaning. Owners’ claim is allowed.

Crew Bonus

Clause 29 of the time charter requires Amtro to pay a crew bonus of $1,-000.00 per month while certain types of cargo is aboard. 3

The Commandant of the Coast Guard is authorized and directed to define, describe, name and classify all explosive or other dangerous articles or substances and to establish such regulations as may be necessary to make effective the provisions of 46 U.S.C. § 170, in connection with the regulation of the carriage on vessels of explosives or other dangerous articles. 4 At the time of signing the charter, the Commandant had, by regulation, defined dangerous articles. 5 That the Commandant intended to distinguish between ordinary “dangerous” articles, such as explosives, and “hazardous” articles, is clearly indicated by 46 C.F.R. Sec. 146.27-100, Table K, which classifies hazardous articles, one of which is “metal *166 borings, shavings, turnings, cuttings”.

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Cite This Page — Counsel Stack

Bluebook (online)
247 F. Supp. 161, 1965 U.S. Dist. LEXIS 7606, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cia-estrella-blanca-ltda-v-ss-nictric-ord-1965.