Di Gregorio v. N. v. Stoomvaart Maatschappij

411 F. Supp. 331, 1975 U.S. Dist. LEXIS 11526
CourtDistrict Court, S.D. New York
DecidedJuly 9, 1975
Docket71 Civ. 2729
StatusPublished
Cited by8 cases

This text of 411 F. Supp. 331 (Di Gregorio v. N. v. Stoomvaart Maatschappij) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Di Gregorio v. N. v. Stoomvaart Maatschappij, 411 F. Supp. 331, 1975 U.S. Dist. LEXIS 11526 (S.D.N.Y. 1975).

Opinion

OPINION

GRIESA, District Judge.

This longshoreman’s personal injury action was tried to a jury, resulting in a verdict for plaintiff in the amount of $50,000 based upon an unseaworthy condition on defendant Nederland’s vessel, the NEDER WESER. The jury further found in effect that it was negligence on the part of third-party defendants Universal Terminal & Stevedoring Corp. and GTE International, Inc. which actually caused plaintiff’s injury.

Under this verdict Nederland would be liable to plaintiff, but would be entitled to indemnity from Universal and GTE. 1

Universal and GTE move under Fed.R. Civ.P. 50(b) for judgment notwithstanding the verdict. These motions are granted.

I.

On April 11, 1970 the NEDER WES-ER was being loaded in Brooklyn, New York. The stevedoring work was being performed by Universal.

Plaintiff, an employee of Universal, was working in Number 2 Hatch and was walking on top of certain crates, preparing to assist in the placement of a crate then being lowered into the hatch. The top of one of the crates collapsed under plaintiff’s weight and plaintiff was injured as a result.

The jury was asked to return a special verdict, and found that an unseaworthy condition on the vessel caused plaintiff’s injury, that plaintiff was not contributorily negligent, and that the amount of damages to plaintiff was $50,000.

II.

The crate causing the injury was shipped on the NEDER WESER by third-party defendant GTE.

The evidence shows that this crate was one of four crates which were shipped by GTE on the NEDER WESER. Two of these crates contained 8' diameter parabolic antennas and two of the crates contained mountings for these antennas. The antennas and their mountings had been ordered from GTE by Oilfield Supplies and Services for use in Saudi Arabia. GTE referred this order to its subsidiary, Lenkurt Electric Co. of Canada, Ltd. Lenkurt in turn purchased the antennas and the mountings from another Canadian company — Ainslie Antenna Co., Ltd. of Montreal.

In the purchase order to Ainslie, there was the notation “Export Packing”. Ainslie made a special charge for such packing.

GTE’s freight forwarder arranged to have the four crates picked up from Ainslie. Ainslie delivered the four crates F.O.B. Montreal. A trucker hired by the freight forwarder transported the crates to Brooklyn and delivered them to Universal, which loaded the crates onto the vessel.

Beyond placing the notation “Export Packing” on the purchase order, neither GTE nor Lenkurt gave Ainslie any instructions as to how the equipment was to be packed. Neither GTE nor Lenkurt made any inspection of the crate at any time. The packing was entrusted entirely to Ainslie.

The evidence at the trial indicated that the crate in question was construct *334 ed of a composition material called “particle board” strengthened to some extent by wooden battens. Nederland introduced expert testimony at the trial to the effect that particlé board was an inadequate material for the crate, unless strengthened by more wooden battens that the crate apparently contained. The expert’s specific recommendation was that additional interior battens should have been used in the construction of the crate.

In its special verdict the jury found as follows:

(a) Universal breached its warranty of workmanlike performance to Nederland and such breach was a proximate cause of plaintiff’s injury. The jury found that such breach was not the result of any negligent act of plaintiff (an employee of Universal) but that such breach resulted from the fact that Universal knew or should have known of a defect in the crate.
(b) GTE was negligent and that such negligence was a proximate cause of plaintiff’s injury.
(c) Ainslie Antenna Co., Ltd. was negligent and such negligence was a proximate cause of plaintiff’s injury.

III.

Universal’s motion for judgment notwithstanding the verdict is grounded on the assertion that there was a total lack of proof that there was any defect in the crate which was obvious to Universal or which should have been detected by Universal. At the oral argument of the motion, counsel for Nederland stated that Nederland does not oppose Universal’s motion. It is therefore granted.

IV.

Nederland’s main case for indemnity has always been pitched against GTE, whose motion for judgment notwithstanding the verdict Nederland strongly opposes.

Nederland advances two basic theories against GTE. First, Nederland argues that Ainslie was negligent in the construction of the crate and that Ainslie’s negligence must be imputed to GTE. Second, Nederland argues that GTE itself was negligent in selecting Ainslie to do the packing, in failing to give Ainslie proper instructions regarding packing, and in failing to inspect the packing after it was carried out by Ainslie.

The rule governing the responsibility of a shipper such as GTE is contained in Section 4(3) of the Carriage of Goods by Sea Act, 46 U.S.C. § 1304(3), which provides:

“(3) The shipper shall not be responsible for loss or damage sustained by the carrier or the ship arising or resulting from any cause without the act, fault, or neglect of the shipper, his agents, or his servants.”

Dealing with Nederland’s first theory against GTE — i.e., the theory of imputing Ainslie’s negligence to GTE, we start with the finding of the jury that Ainslie was negligent in the construction of the crate. There is ample support for this finding in the evidence. But the question which must then be resolved is whether GTE can be held liable under the statute for Ainslie’s negligence. I hold that it cannot.

The shipper’s liability is expressly limited by the statute to situations where there is some act, fault, or neglect on the part of the shipper, his agents, or his servants. Nederland has never argued that Ainslie falls in any of the specified categories. Ainslie clearly was not the shipper or the agent or the servant of the shipper, GTE. Ainslie was merely the seller of goods to Lenkurt. There is no indication whatever that GTE or Lenkurt exercised any control over the conduct of Ainslie in the production or packaging of the antennas and mountings. Under these circumstances there would be no basis for holding Ainslie to be the agent or servant of either GTE or Lenkurt. Restatement of Agency (2d Series) § 2.

*335 Nederland’s argument, however, is that the negligence of Ainslie should be imputed to GTE on the theory that GTE had a non-delegable duty to ensure that the antennas and mountings were properly packed. This theory is contrary to the express wording of the statute, and must be rejected.

The other theory of Nederland against GTE is that GTE itself was negligent. The jury found that it was.

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Bluebook (online)
411 F. Supp. 331, 1975 U.S. Dist. LEXIS 11526, Counsel Stack Legal Research, https://law.counselstack.com/opinion/di-gregorio-v-n-v-stoomvaart-maatschappij-nysd-1975.