Conmaco, Inc. v. Southern Ocean Corp.

581 So. 2d 365, 1991 La. App. LEXIS 1430, 1991 WL 88767
CourtLouisiana Court of Appeal
DecidedMay 30, 1991
Docket90-CA-1707
StatusPublished
Cited by7 cases

This text of 581 So. 2d 365 (Conmaco, Inc. v. Southern Ocean Corp.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Conmaco, Inc. v. Southern Ocean Corp., 581 So. 2d 365, 1991 La. App. LEXIS 1430, 1991 WL 88767 (La. Ct. App. 1991).

Opinion

581 So.2d 365 (1991)

CONMACO, INC.
v.
SOUTHERN OCEAN CORPORATION.

No. 90-CA-1707.

Court of Appeal of Louisiana, Fourth Circuit.

May 30, 1991.

Kerry P. Cuccia, New Orleans, for appellant.

Charles R. Talley, David C. Vasser, Lemle & Kelleher, New Orleans, for appellee.

Before KLEES, CIACCIO and LOBRANO, JJ.

CIACCIO, Judge.

Plaintiff, Conmaco, Inc. (Conmaco) filed suit against defendant, Southern Ocean Corporation (hereinafter referred to as Ocean Salvage) to collect amounts due on an open account. Defendant filed an answer and reconventional demand alleging a cause of action in redhibition. Conmaco appeals from that part of the trial court judgment awarding Ocean Salvage damages on its reconventional demand.

Ocean Salvage was formed in 1982 under the name Southern Ocean Corporation and initially provided ocean salvage consulting services. Ian Cairns, general manager of *366 Ocean Salvage, expanded the company's operations and began performing actual salvage work with the use of rental equipment. In 1985, due to the turn in the economy, marine equipment was relatively inexpensive and Cairns foresaw the need for a large, stiff-legged derrick barge. He then sought investors and purchased the necessary equipment to construct and outfit a derrick barge capable of lifting 550 tons which was to be named the Southern Hercules.

In connection with the venture, Cairns retained the services of a naval architect, Emilio Garcia, specifically for the purpose of preparing the plans and specifications in order for the barge to be approved by the United States Coast Guard and the American Bureau of Shipping. Ocean Salvage also retained Garcia for the purpose of advising it on the stability of the derrick barge and the modification of a boom that was purchased by Cairns and was to be placed on the derrick. The boom was to be converted from a 220 ton lifting capacity to a 500 ton lifting capacity.

In order to finish the outfitting of the Southern Hercules, Ocean Salvage needed a 500 ton crane block for the derrick. Cairns therefore sought bids for certain pieces of equipment, including two pieces of wire rope and the 500 ton crane block, from three vendors, one of which was Conmaco.

Conmaco was the local independent distributor for McKissick, a Division of the Crosby Group, a manufacturer of craning blocks. Gary Harding, Conmaco's sales representative, prepared a bid which included a 500 ton craning block to be manufactured by McKissick and submitted the bid to Cairns. Conmaco's bid was not the lowest of the three bids, but after further negotiations between Harding and Cairns, Harding resubmitted a bid by letter dated August 9, 1985 which read as follows:

Dear Mr. Cairns
Conmaco, Inc. is pleased to offer the following for your consideration:
1 only—500 ton Crane Block with duplex hook, 9 sheaves, 36" diameter grooved for 1¾" wire.
Sale Price—$34,500.00 each
29-36" Diameter RF Sheaves grooved for 1¾" wire with 6½" timken roller
bearing.
Sale Price—$975.00 each
Delivery—30 days from time of firm order to procede (sic).
Terms—20% with order—balance upon delivery.
All equipment is F.O.B. Belle Chasse, LA.
The above prices will remain firm for a period of thirty days, at which time they will become subject for review. All equipment is subject to prior sale, or rental or other disposition.
Conmaco, Inc. appreciates this opportunity to quote on the above and we look forward to hearing from you in the near future. Should you have any questions or comments, or require any additional information, please do not hesitate to advise me.
Yours truly, CONMACO, INC. /s/ Gary Harding /RB Gary Harding Sales Manager

Cairns accepted Conmaco's bid.

After Conmaco was awarded the job, Harding contacted McKissick to manufacture the block. McKissick, through Harding, obtained specifications for the block from Ocean Salvage. Based on these specifications, McKissick's engineers designed and prepared a blueprint of the block and presented it to Harding for Ocean Salvage's approval. The blueprint clearly specified the weight of the block as 17,945 pounds. Cairns reviewed the blueprint and was concerned whether the spacing of the sheaves on the block would match the equipment at the head of the boom so he called Emilio Garcia and confirmed the spacing of the sheaves over the telephone. With Garcia's approval, Cairns accepted and approved the blueprint. Harding also approved the blueprint and returned it to McKissick.

In accordance with the approved blueprint, McKissick constructed the block and *367 after completing it, delivered it to Ocean Salvage in December of 1985. Because the derrick barge was not yet complete, Ocean Salvage stored the block until February of 1986. Nevertheless, Conmaco invoiced Ocean Salvage for the block and Ocean Salvage paid $34,500.00 for the block.

In February, Ocean Salvage attached the block to the boom on the derrick barge and conducted a test run in the shipyard. The test immediately revealed that the block would not overhaul. Overhauling is the process where a block which is raised to the head of the boom returns to ground level without assistance when the brakes of the winch are released. After discussing the problem with Garcia and experimenting with the block, Cairns and Garcia determined that the weight of the block was insufficient. Cairns then contacted Harding and placed an order for cheek plates to place on the block, increasing the weight of the block. McKissick manufactured the cheek plates and Conmaco delivered them to Ocean Salvage in May of 1986. Ocean Salvage invoiced McKissick for the price of the cheek plates which cost $12,025.70. Ocean Salvage refused to pay Conmaco for the cost of the plates.

Meanwhile, Ocean Salvage had entered into a contract with Ingram Barge Lines, Inc. to use the Southern Hercules to salvage a sunken barge. Because of the insufficient weight of the block, the Southern Hercules did not operate properly and the salvage job, which had been estimated to last seven days, continued for 37 days and yet was never completed. As a result, Ingram cancelled the contract.

After termination of the Ingram contract, Ocean Salvage returned the Southern Hercules to the shipyard where they attached the cheek plates to the block. With the addition of the cheek plates the block overhauled but it still did not operate properly. The block raised and lowered in an uneven fashion, causing wear on the sheaves and wire rope. Ocean Salvage had to replace the worn wire rope as a result. Additionally, the block with the attached cheek plates no longer rested in the yoke at the head of the boom. Consequently when the barge was in tow, the block would swing and slam it into the boom, damaging the boom.

On December 12, 1986, Conmaco filed a petition on open account against Ocean Salvage for $23,831.00, including the price of the cheek plates and other items purchased by Ocean Salvage. Ocean Salvage filed its answer and reconventional demand, alleging a redhibitory defect in the block.

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Bluebook (online)
581 So. 2d 365, 1991 La. App. LEXIS 1430, 1991 WL 88767, Counsel Stack Legal Research, https://law.counselstack.com/opinion/conmaco-inc-v-southern-ocean-corp-lactapp-1991.