Daniel C. Robinson, Inc. v. United States

95 F. Supp. 236, 118 Ct. Cl. 414, 1951 U.S. Ct. Cl. LEXIS 109
CourtUnited States Court of Claims
DecidedFebruary 6, 1951
DocketNo. 46250
StatusPublished

This text of 95 F. Supp. 236 (Daniel C. Robinson, Inc. v. United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Daniel C. Robinson, Inc. v. United States, 95 F. Supp. 236, 118 Ct. Cl. 414, 1951 U.S. Ct. Cl. LEXIS 109 (cc 1951).

Opinions

JoNEs, Chief Judge,

delivered the opinion of the court:

Plaintiff seeks compensation for the taking of the use of its two barges and for the taking of its interest, as bareboat charterer, in a tug. The barges were former lake-type steamers built during World War I; they were converted in 1928 into the nonself-propelling barges Lake Farge and Lake Frumet. They and the tug Humriek were owned by the Ford Motor Company. In January 1942 plaintiff took over operation of the three vessels under an oral time charter arrangement with Ford. On April 30, plaintiff became bare-boat charterer of the tug for “about” one year at a charter rate of $200 per day; and on May 6 or 7 plaintiff bought the barges for $50,000 each.

At this time the three vessels were in Norfolk. From Norfolk the barges carried coal to Havana, went light to Santiago, and carried manganese to Mobile. While the equipment was in Mobile plaintiff was directed by the War Shipping Administration to send it to Havana to enter the sugar trade from Havana to Port Everglades, Florida.

The period between July 4 and July 29, 1942, was spent carrying coal from Mobile to Havana and awaiting Navy orders there. Delay while awaiting Navy orders was a common, if not usual, incident at the time. The submarine menace had required the imposition of controls of departures and routings and the convoying of all vessels, including barges and tugs, using these waters.

Between July 30 and October 13, 1942, each barge made one trip from Havana to Port Everglades with sugar, one trip from Port Everglades to Havana with general cargo, and another trip carrying sugar from Havana to Port Everglades, where the requisitionings occurred. On September 25,1942, the War Shipping Administration had wired plaintiff and the Ford Motor Company that it was requisitioning the “use and possession on bareboat charter basis” of the barges Lake Farge and Lake Frumet and the tug Humriek, effective on delivery of the vessels at Port Everglades. The Lake Frumet was delivered on September 30, 1942; the tug Humriek on October 9; and the Lake Farge on October 14.

The vessels were operated for the Government under a general agency agreement by Barge Carriers, Inc., a cor[431]*431poration beaded by plaintiff’s president. The barges were redelivered to plaintiff in 1944, the Lake Frumet on January 28 and the Lake Farge on February 2. The War Shipping Administration determined that fair and just compensation for the use of the barges was $60 per day per barge. On May 11, 1944, it tendered to plaintiff requisition charters,, bareboat form, providing for payment of charter hire at this rate. Plaintiff rejected the tenders and, in accordance with the statute, was paid 75 percent of the amount offered. Plaintiff sues now “to recover such further sum as added to such 75 per centum will be just compensation for the use of the property * * Section 902 of the Merchant Marine Act of 1936, 49 Stat. 1985, 2015, as amended by 53 Stat. 1254, 1255.

The plaintiff claims for the taking of its interest in the tug Hwnriek, as well as for the barges. The War Shipping Administration never acknowledged plaintiff’s interest, if any, in the tug. Whether plaintiff had a compensable interest in the tug (which it had chartered from the Ford Motor Company) and, if so, whether its claim with respect to the tug was not abandoned or otherwise lost are questions which we need not decide; for plaintiff has failed to prove that it was damaged by the requisition of the LLumrick. Plaintiff has failed to prove that the value of the use of the tug was greater than the $200 per day which it was paying the Ford Motor Company for the use of the tug.

In our findings we have set out in detail the financial consequences to plaintiff of its operation of the barges from the time it bought them to the time they were requisitioned. The plain fact is that plaintiff was losing money. Its net loss during the period was $98.70 per barge per day. The losses were caused in large part, if not altogether, by delays incident to the submarine menace. There is no showing that plaintiff or anyone else anticipated such improvement in conditions as would make the value of the use of the barges more than $60 per day. The requisitionings occurred only after plaintiff’s president had visited Washington early in September 1942 and appealed to the War Shipping Administration for relief from mounting financial losses. At that time he assented to a suggestion that the equipment be requi[432]*432sitioned. There is no evidence of the earnings or losses of other barges in the sugar trade, or in other trades, during 1942. If we limit our consideration to facts known at the time of the requisitionings, we should perforce have to conclude that plaintiff has failed to establish that the fair and reasonable value of the bareboat use of the barges was greater than $60 per day.

Plaintiff says that our consideration should not be so limited. It says that we should consider, as an element affecting the determination of just compensation, the earnings of the barges during the period of requisition. Plaintiff was permitted to place in the record, for consideration if found proper, evidence summarizing the voyage accountings of the barges submitted to the War Shipping Administration by its general agent during the period of requisition, together with adjustments tending to show the results of a private operation receiving the same revenues. Plaintiff says that in a taking of this sort, which finds no counterpart in voluntary exchanges, it is proper, in determining just compensation, to consider the profits arising during such period, and that the adjusted summary of voyage accountings offered by it reflects such profits. ■ According to the adjusted summary, the net operating revenue throughout the entire period of requisition was $827 pier day per barge.

Where the use of property is taken, the proper measure of compensation is the rental (or its equivalent, such as charter hire) that probably could have been obtained. Where the use of the property is taken for a limited, definite time, the usual rule requires the determination of the probable rental from facts which were known or could have been known at the time of the taking. Where the taking of the use is for an unlimited, indefinite time, as here, permitting the Government to hold the property on a day-to-day basis for any length of time it chooses, plaintiff maintains that the application of the rule limiting consideration to facts known at the time of the taking is unrealistic.

We agree. We think that where the use of property is requisitioned for an uncertain period, evidence as to profits made from it by the Government and profits made from similar' property in private ownership and management should, [433]*433under some circumstances, be admitted and considered, not as tbe measure of value, but as bearing on the value.15 Certainly in some cases such evidence'would, tend to throw light on the value of the use during the period the barges were retained. We have therefore considered the evidence which was offered for the record, but excluded by the commissioner.'

We find the proffered evidence unconvincing, because of the circumstances under which the purported earnings accrued.

The War Shipping Administration established rates for the transportation of sugar from Cuba to the United- States in the spring of 1942.

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Bluebook (online)
95 F. Supp. 236, 118 Ct. Cl. 414, 1951 U.S. Ct. Cl. LEXIS 109, Counsel Stack Legal Research, https://law.counselstack.com/opinion/daniel-c-robinson-inc-v-united-states-cc-1951.