Coastal States Petrochemical Co. v. Montpelier Tanker Co.

321 F. Supp. 212, 1970 A.M.C. 1183, 1970 U.S. Dist. LEXIS 13121
CourtDistrict Court, S.D. Texas
DecidedJanuary 22, 1970
DocketNo. 65-C-19
StatusPublished
Cited by3 cases

This text of 321 F. Supp. 212 (Coastal States Petrochemical Co. v. Montpelier Tanker Co.) 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
Coastal States Petrochemical Co. v. Montpelier Tanker Co., 321 F. Supp. 212, 1970 A.M.C. 1183, 1970 U.S. Dist. LEXIS 13121 (S.D. Tex. 1970).

Opinion

FINDINGS OF FACT AND CONCLUSIONS OF LAW

SEALS, District Judge.

The plaintiff brought this suit in admiralty to recover damages for the contamination and discoloration of a cargo of gasoline owned by the plaintiff and shipped on board the defendant’s vessel, the S.S. MONTPELIER VICTORY, from plaintiff’s refinery in Corpus Christi, Texas to California.

Plaintiff and defendant entered into a “Tanker Voyage Charter Party” in May of 1964 in which plaintiff chartered the aforesaid vessel for the purpose of transporting plaintiff’s petroleum products to California from Corpus Christi and from California to the New York area. The parties contemplated the carriage in trilateral fashion of gasoline or other “clean” petroleum products from the plaintiff’s Corpus Christi refinery to California Ports, and after unloading the “clean” products in California the vessel would take on a load of “black” oil, such as crude petroleum or residual fuel, for carriage to the New York area.

Plaintiff asserts that on the occasion in question the contamination and discoloration of the “clean” cargo was caused by the unseaworthiness of the vessel and the negligence of her owner. Plaintiff alleges that prior to the execution of the Charter Party between plaintiff and defendant, defendant removed certain valves from the crossover lines on the vessel because the valves were defective and leaking, and in place thereof defendant put blind flanges. Although the defective valves were repaired and returned to the vessel, plaintiff asserts that they were not replaced on the crossover valves in their intended place and for their intended purpose. Plaintiff contends that the continued use of blind flanges in the crossover valves without allowing for full circulation of cleaning agents caused residuals from prior “dirty” cargoes to remain in the spur lines formed by the blind flanges which could not be removed with the customary cleaning process and which caused contamination and discoloration to subsequent gasoline cargoes.

Plaintiff also alleges that defendant was negligent in failing to return the properly functioning valves to the cross'over lines prior to the delivery of the ship under the Charter Party in question, defendant having had full knowledge that the ship was originally built and equipped with such valves and that their function was to permit free circulation in the loading lines. Plaintiff asserts that defendant knew or should have known in the exercise of ordinary care that complete cleaning of the loading lines could not be accomplished as long as valves were not in the crossover lines which could be opened during cleaning.

Plaintiff further asserts that defendant breached the warranty of seaworthiness clause of the Charter Party in failing to provide a seaworthy vessel and in failing to use due diligence to make the [214]*214vessel seaworthy prior to the commencement of the Charter Party and prior to the voyage in question. The plaintiff argues that the General Exceptions Clause, a typed addendum to the Charter Party which provides that “(o)wners shall not be responsible for contamination or discoloration of cargo resulting from previous cargoes carried”, cannot as a matter of law excuse the defendant from its warranty in these regards.

Defendant denies damage to the cargo occurred, or alternatively that if discoloration or contamination occurred, it was a trade risk assumed by the plaintiff under the circumstances of and inherent in this carriage; and that in any event the defendant is not liable to the plaintiff for any contamination and/or discoloration of the gasoline cargo by reason of the fact that if such occurred it was due to the fault of the plaintiff or its sub-contractors and not to the fault of the defendant or any unseaworthiness of the ship. Defendant further submits defendant is not liable in any event under the provisions of the charter party under which the cargo was carried.

Defendant argues that the plaintiff and its appointees were solely responsible for cleaning, inspecting and passing upon the fitness for carriage of the ship’s tanks, pumps and lines on the voyage involved.

Defendant further urges that the printed clause 18 of the Charter Party expressly exonerates defendant for any discoloration or contamination of the cargo. Defendant asserts that the carriage made the basis of the Complaint is governed exclusively by the Charter Party, is one of private carriage and is in no respect common carriage, and that the MONTPELIER VICTORY was not under the liabilities and obligations of the U.S. Carriage of Goods by Sea Act. Defendant has also taken the position that acceptance of the vessel by the charterer precludes this action for damages arising out of cleaning of tanks and lines as further parts of the Special Provisions of the Charter Party.

The case having been tried before the court, the court now enters the following Findings of Fact and Conclusions of Law:

FINDINGS OF FACT

1. On May 25, 1964, Coastal States Petrochemical Company and Montpelier Tanker Company entered into a "Tanker Voyage Charter Party” for the carriage of petroleum products on several successive voyages on board the SS MONTPELIER VICTORY, a tanker vessel owned by Montpelier Tanker Company.

2. The parties contemplated the carriage in trilateral fashion of gasoline or other “clean” petroleum products from the plaintiff’s Corpus Christi refinery to California ports and after unloading of the clean products in California, the vessel would take on a load of “black” oil, such as crude petroleum or residual fuel, for carriage to the New York area.

3. Upon discharge of the black oil in the New York area, a cleaning crew from Marine Maintenance Company would board the vessel and ride her in ballast to the Gulf Coast, performing the function of cleaning the tanks for the receipt of another cargo of clean products destined for the West Coast.

4. The Charter Party provided that the vessel would be in all respects clean for the receipt of cargo at Corpus Christi at the commencement of the charter.

5. On June 1, 1964, the SS MONTPELIER VICTORY loaded her first cargo of gasoline at Corpus Christi and commenced her first voyage under the subject Charter Party. She continued her voyages under the Charter Party as anticipated, and on September 9, 1964, she departed from New York for Corpus Christi in ballast, having discharged a cargo of crude oil in New York and having taken on the Marine Maintenance Company cleaning crew.

6. On this ballast voyage, the vessel and the cleaning crew undertook to clean its tanks and pipeline system in order to receive a full cargo of gasoline at Corpus Christi.

[215]*2157. On September 16, 1964, the vessel arrived at plaintiff’s refinery at Corpus Christi and loaded 341,003.56 barrels of gasoline destined for shipment to California. It was during this loading that the contamination and discoloration is alleged to have occurred.

8. Prior to the delivery of the SS MONTPELIER VICTORY under the Charter Party dated May 25, 1964, the defendant vessel owner had experienced certain difficulties with valves in the vessel’s pipeline system.

9. The pipeline system had loading lines running fore and aft on the vessel and was equipped with crossover lines between these loading lines.

10. Prior to this Charter Party, difficulty was experienced by the vessel owner with the valves on the crossover lines.

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321 F. Supp. 212, 1970 A.M.C. 1183, 1970 U.S. Dist. LEXIS 13121, Counsel Stack Legal Research, https://law.counselstack.com/opinion/coastal-states-petrochemical-co-v-montpelier-tanker-co-txsd-1970.