Denholm Shipping Co. v. W. E. Hedger Co.

47 F.2d 213, 1931 U.S. App. LEXIS 3435, 1931 A.M.C. 297
CourtCourt of Appeals for the Second Circuit
DecidedJanuary 5, 1931
Docket117
StatusPublished
Cited by5 cases

This text of 47 F.2d 213 (Denholm Shipping Co. v. W. E. Hedger Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Denholm Shipping Co. v. W. E. Hedger Co., 47 F.2d 213, 1931 U.S. App. LEXIS 3435, 1931 A.M.C. 297 (2d Cir. 1931).

Opinion

L. HAND, Circuit Judge.

The libelant, owner of the steamer Beech-park, chartered her to the respondent on *214 March 18, 1924, for five months at $1.40 per deadweight ton, the ship to be delivered at Norfolk, or Newport News. The charter contained the usual printed clause that the master should “prosecute his voyages with the utmost despatch,” and specially incorporated, typed upon the margin, the following additional paragraph; “In addition to the particulars herein given, steamer is described as capable of steaming about 11 knots to 12 knots an hour in good weather and smooth water on a consumption of about 32 to 34 tons best Welsh coal.” She was delivered at Norfolk on April 14, 1924, having been drydocked, scraped and painted during the preceding February. In her bunkers were forty-four tons of Westphalian coal, to which the charterer added at Norfolk 1,467 tons of New River coal, and she made the first, leg of the voyage to Galveston in ballast. At that port she lifted a cargo of sul-phur for Australia and steamed through the Panama Canal, taking on 322 more tons of New River coal at Colon. At Newcastle, Australia, she took on 217 tons of Newcastle coal, went to Melbourne and Sydney, returned to Newcastle, where she received 1,-618 tons of Newcastle coal, and at Adelaide lifted a cargo of grain for Rotterdam, which she reached on October 8, 1924, bunk-ering en route at Durban, South Africa, with 1,026 tons of coal of about the same grade as Newcastle .coal. At Rotterdam she was redelivered.

The charterer reserved part of her hire on the ground that she had broken her warranty, and for this the owner sued. The answer alleged as a defence a breach of the warranty, and the cross-libel was for damages upon the same breach, on the theory that the vessel was not “capable” as declared, and that the hire for the extra time, and the added bunkers, required by the default, were a proper cross-claim. The District Judge held that the clause was not a warranty, and had not been broken, if it were. Hence he passed a decree upon the libel, and dismissed the cross-libel. The charterer appealed.

For purposes of navigation 34 tons of the best Welsh coal equals 36 tons of New River coal, and 39 or 40 tons of Newcastle coal. The Beeehpark’s engine log shows that she burned an average of about 35.5 tons of New River coal from Norfolk to Panama; 34.7 tons'from Panama to Sydney; 35.8 from Adelaide to Durban; about 35 from Durban to Rotterdam. The steamer had moderate weather from Norfolk to Galveston, and met strong head winds on only two days while going to Colon. In the Pacific the weather was in' general good, and the sea either smooth or moderate. After clearing Norfolk on April fourteenth, until June fifth when she reached Newcastle she had made more than ten and a half knots on only six days. These were April sixteenth and twenty-first, and three hours on the thirtieth, in the Atlantic, and May sixth, tenth and eleventh in the Pacific. During the last three she must have had a favoring current, as her actual distance was greater than her “screw” distance; she had what is, called a “negative slip” of the screw, and there is normally a “positive slip” of at least five per cent. This was also true for the three hours’ travel on April thirtieth. Therefore the only days on which she could be said to have made about 11 knots unassisted were April sixteenth and twentieth, while en route in ballast from Norfolk to Galveston, and even then she also had a favoring current. These must be excluded from the count, as not within the implied conditions of the warranty.

The owner’s position is that the inserted clause was not a warranty at all, and that, if it was, the charterer has not proved a breach, the burden being his. The first seems to us clearly erroneous. The charter, being prepared by the owner’s agent, must be construed contra proferentem; the clause, being a typed addendum to the printed form, prepared after negotiation ad hoe, cannot be ignored as a constituent part of the ship’s duties. It is impossible to give it any scope, unless it be an undertaking that the charterer may rely upon the description, and that the owner will hold him harmless, if she is not as described This is all that a warranty means; the failure to use the word, as it was used in The Ceres (D. C.) 61 F. 701, affirmed 72 F. 936 (C. C. A. 2), and in The Astraea (D. C.) 124 F. 83, is un-' important. The definition in section 12 of " the Sales of Goods Act (Personal Property Law N. Y. [Consol. Laws, c. 41] § 93), for example, is no more than a statement of the common law, with which the maritime law in this instance should conform: “Any affirmation of fact or any promise by the seller relating to the goods is an express warranty if the natural tendency of such affirmation or promise is to induce the buyer to purchase.” While the decisions differ somewhat as to whether a breach of warranty will justify repudiation of the charter, so far as we know nobody has doubted that a description of a ship’s capacity, in speed, as well as in any other respect, when inserted in the body of a charter, will support a suit *215 for damages. Williston on Contracts, 1075.

The cases on which the libelant relies are all quite different. In Clydesdale, etc., Co. v. Brauer (D. C.) 120 F. 854, and Ansgar v. Brauer (D. C.) 121 F. 426, the representation was not in the charter, and the charterer tried to rescind for fraud. In Glasgow Shipowners’ Co. v. Bacon, 139 F. 541 (C. C. A. 2), there was no warranty of speed, as here. In The Hurstdale (D. C.) 169 F. 912, affirmed 179 F. 371 (C. C. A. 2), the libel was in deceit and the clause was followed by a typed addendum that the particulars were not guaranteed. In The Burma, 187 F. 91 (C. C. A. 2), the libel was also in deceit and the court had refused to allow it to he amended so as to sound in contract. None of these touches the situation at bar.

The meaning of the warranty is however another matter; it spoke from the time of delivery, and was satisfied if the ship was at that time “capable” of making the prescribed speed under the stipulated conditions. It did not follow that she would make it uniformly; that depended upon how she was driven, and whether she had become foul or disabled, even though the conditions were fulfilled. On the other hand, the charterer might assume that it meant something of practical use to him; that it spoke of ordinary service at sea; and it is not relevant-whether she later made the required speed under a test by the owner, as apparently she did. We are to inquire whether when laden as intended, she could steam at the stipulated speeds in good weather and smooth seas. If the charterer showed that she could not, he proved a breach, and the best test is what she actually did during the voyage in question on such days as fulfilled the requirements. Indeed, her performance on other voyages, though no doubt relevant, is of less weight.

In fact, the conditions were several times fulfilled before she reached Sydney, and she never made her speed. Thus on April twenty-ninth and thirtieth with a moderate or light wind and a “swell” on the port bow she made less than ten knots; on May second with a light head wind and swell her speed was 10.1; on the seventh she made 9.6 with a light breeze and sea; on the twenty-first, her spqed was 9.8 with a light wind and a moderate swell; on June twenty-ninth and thirtieth, it was 10.4 with a light wind and a smooth sea.

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47 F.2d 213, 1931 U.S. App. LEXIS 3435, 1931 A.M.C. 297, Counsel Stack Legal Research, https://law.counselstack.com/opinion/denholm-shipping-co-v-w-e-hedger-co-ca2-1931.