Dampskib Storfonds Aktiesekskap v. Whitney & Kemmerer

38 F.2d 874, 1930 U.S. Dist. LEXIS 1913
CourtDistrict Court, E.D. Pennsylvania
DecidedFebruary 28, 1930
DocketNo. 135
StatusPublished
Cited by2 cases

This text of 38 F.2d 874 (Dampskib Storfonds Aktiesekskap v. Whitney & Kemmerer) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dampskib Storfonds Aktiesekskap v. Whitney & Kemmerer, 38 F.2d 874, 1930 U.S. Dist. LEXIS 1913 (E.D. Pa. 1930).

Opinion

DICKINSON, District Judge.

This cause grows out of a charter party contract for the hire of a ship. The very capable proctor for the respondents did not during the trial change his course, but kept headed for the harbor of defense for which he was hound, hut, like the skillful sailing [875]*875master lie is, has sought to take advantage of every slant of wind to work to windward all he could, and has from time to time shifted his helm for this purpose. The first thought was that of reforming the written contract so as to more fully and definitely express and reflect the meaning of the real contract evidenced by the bargaining of the parties; the next was to have appear a contemporaneous oral contract on the faith of which the charter party was signed by the respondents; the third was- to show that the written contract was expressed in the terminology of the shipping trade, and what meaning in the usages and practices of the trade was given to the terms employed in the contract; and the final emphasis was laid upon the construction properly to be given to the contract as written. So far as we have been able to discover, there is not a single evidentiary fact which is in real controversy. The record, however, is quite a voluminous one. When the first suggested defense opened it, of course, encountered the usual objection. Por the purpose of saving time the respondents were permitted to put of record all the facts they wished to prove subject to such objections as might bei interposed. This was by analogy to Equity Rule 46 (28 USCA § 723). The advantage in mind was that any review of the cause would be by way of appeal, and if all the evidence was of record the appellate court could dispose of the whole case, whereas if any evidence was rejected a new trial might be necessary. When the case and defense finally rested on the proper construction of the written contract, the examination and cross-examination unavoidably beeame argumentative, and hence well-nigh 'interminable. We have in consequence a lengthy record, when aE the pertinent facts could be gathered in a few minutes from the pleadings and the admissions of the parties at the trial.

It is without doubt the truth that a contract can be best construed by a reader who understands its subject-matter. Even courts need to- know something. Much of the information they must have they are permitted to get (as the phrase goes) by taking judicial notice. This needed; information they get in any way they can, and as they must get it from some source, there is no objection, so far as we can see, to their informants being under oath. Whether the fact statements in this record are in the strict sense evidentiary or not, they may nevertheless he helpful. Charter parties are of practical importance. Ships and shippers should know what they mean when entered into-, and it is highly important that they should be understood as the courts finally construe them. Executive or administrative construction of laws, while in no sense mandatory of judicial construction, are none the less informative and may be persuasive. In the same sense it is never harmful to any court to know what meaning those who have to- do with charter parties attach to them. Again, trade terms as words of art are used in their trade meaning sense, whatever their meaning may be, when used in common speech, and their so-eaEed technical meaning thus becomes important. Eor example, there is in use in the shipping trade a charter party phrase known as the “in berth” clause. If there were an accepted custom, usage, or practice, of the trade to treat these words, as applied to lay days, to mean that the count of lay days did not begin untE the vessel was physieaEy in her berth, and the ship stood the loss of time in finding a berth, such would be the meaning which the courts would give to the phrase. This does not mean that the courts yield to others the duty of construing contráete; it merely means that the courts give to words the sense given to them by the contracting parties. AE words, whether of art or of common speech, have an ordinarily accepted meaning, but this meaning must yield to the right of the parties to contract as they please. Any one who has ever made or witnessed the attempt to prove a contractual term or phrase to have af trade custom meaning has usually observed its futüity. The reasons (both of which appear here) are that with rare exceptions there is no stereotyped trade phrase used in contracts which has in its entirety a trade meaning, but the contracting parties have used language of their own which has embraced or embodied some word or words which usuaEy appear in such contracts, or the witnesses to the trade practices confuse a real trade custom, usage, or practice meaning attached to certain words with the meaning which they as expert interpreters would give to the contract as written. The real question thus becomes, not what the trade meaning is, for there is none, but what the contract as made means. To this a judicial, not a witness, answer must be given. Every contract, however, we say again is best interpreted in the light of an understanding of’ its subject-matter and of the parties to it and of the fact situation out of which it grew. These make the framing of the- picture which is to be studied and interpreted.

[876]*876These features in the present ease are not hard to visualize. No sworn testimony is needed to convince any one that the owners of a ship want to be paid for her services from the time she is chartered until she is discharged and free to seek another cargo. No stronger evidence is needed to persuade us that the shipper does not want to pay except for the time the ship is actually rendering service. There is, however, necessarily an interval of time between the making of a charter party and the start of the cargo bearing voyage. Upon whom this loss of time falls is a matter of express or, in its absence, of implied contract. If nothing is said, the obligation of the ship is to tender her services within a reasonable time after she is hired, and of the shipper to accept her services within a reasonable time after they are tendered, and the pay begins from the time of this acceptance.

The negotiations which led up to this contract were conducted through a ship’s broker as intermediary. He was a real broker who represented neither party and whose work was done when he had brought the parties together in a contract. Chronologically, the shippers first sought a ship by calling* on the ship’s broker to find one for them-They were coal dealers who had a contract with Copenhagen consignees for coal. The coal came from a West Virginia mine and could not reach Philadelphia until at least five or six days after it was loaded on cars, and might take longer. The only available piers at which it could be put aboard a vessel belonged to the railroad companies. These piers were shipping piers, the coal being loaded on the vessel directly from the cars. The railroads would not haul the cars to the piers unless the shipper had provided a ship on which to load the coal. This put the shippers between the devil and the deep sea of the railroad and the vessel carriers and required them to plan the time of loading with some nicety.

This metaphor was not chosen to reflect upon the railroads, but if the ship was not ready to take the coal when it arrived, there would be railroad demurrage, and if the coal was not at hand when the ship reported, there would be ship demurrage.

These conditions were inflamed by the fact that the coal strike in England had made an unusually heavy demand for American coal, with a consequent congestion of railroad eoal carriage, and a railroad embargo was in force.

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Cite This Page — Counsel Stack

Bluebook (online)
38 F.2d 874, 1930 U.S. Dist. LEXIS 1913, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dampskib-storfonds-aktiesekskap-v-whitney-kemmerer-paed-1930.