Eastern S. S. Lines, Inc. v. United States

112 F. Supp. 167, 125 Ct. Cl. 422
CourtUnited States Court of Claims
DecidedMay 5, 1953
Docket223-52
StatusPublished
Cited by5 cases

This text of 112 F. Supp. 167 (Eastern S. S. Lines, 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
Eastern S. S. Lines, Inc. v. United States, 112 F. Supp. 167, 125 Ct. Cl. 422 (cc 1953).

Opinions

MADDEN, Judge.

Both the Government and the plaintiff have made motions for summary judgment. We therefore consider the case on the basis of the undenied allegations of the petition, and the documents and affidavits presented by the parties.

The Steamship Acadia, owned by the plaintiff, had been for some time prior to April 29, 1942, chartered by the plaintiff to the United States Maritime Commission and used as an Army Transport. On April 29, 1942, the United States, acting through the Administrator, War Shipping Administration, entered into a bareboat charter, Contract No. WSA 1155, for the Acadia. The term of that charter was twelve months, plus such additional time as might be necessary to complete any voyage in which she might be engaged at the end of the twelve months. The charter provided that either party could, on notice, terminate the charter before the end of the twelve months. It provided that at the end of the term, the United States would redeliver the vessel in the same condition as on the date of delivery to the United States, ordinary wear and tear in commercial operations excepted, making all necessary repairs to restore her to that condition at its own expense. This charter did not give the United States the option, contained in the later charter involved herein, of redelivering the vessel to the plaintiff without restoring her. The charter hire was $1,295 a day.

On May 3, 1943, the United States, acting through the War Shipping Administration sent the plaintiff a telegram requisitioning on a bareboat basis, the Acadia, “pursuant to Section 902 of the Merchant [169]*169Marine Act, 1936, as amended. The telegram further said:

“Charter agreement to be tendered will provide for just compensation for use of vessels * * * in accordance with above mentioned provisions of law, such charter agreement to be substantially similar in form to existing charter covering vessels * *

Section 902, referred to in the telegram says in subsection (a), 49 Stat. 2015, 46 U.S.C.A. § 1242:

“In the case of a vessel taken and used, but not purchased, the vessel shall be restored to the owner in a condition at least as good as when taken, less reasonable wear and tear, or the owner shall be paid an amount for reconditioning sufficient to place the vessel in such condition.”

Months passed before the United States submitted a charter to the plaintiff for the vessel. It continued to pay the $1,295 per day stipulated in the former charter. Early in 1944 it contended that it had been overpaying the plaintiff since the end of the twelve months covered by the earlier charter entered into in 1942. The plaintiff denied this contention and the United States ceased to pay charter hire, though it continued to use the vessel.

In April 1944, the United States submitted to the plaintiff a proposed charter for the Acadia. The plaintiff refused to execute it. Negotiations ensued. The discussions involved also the unpaid charter hire referred to above, similar unpaid charter hire for four other vessels, and other claims which the plaintiff was making with regard to still other vessels. The discussions contemplated that if the parties, could agree on an amount for charter hire per day, that agreed amount should apply retroactively to the date of the requisition. The Government representative in the discussions gave the plaintiff’s representatives a copy of a charter form, Form 110, which had been published in the Federal Register on July 1, 1943, and said that that was the form prepared for such requisitions, and which should be used with respect to the plaintiff’s vessels. The plaintiff’s representatives took the form and said that they would study it and communicate their views.

Form 110 contained, in its Part I, the following language:

“Whereas, pursuant to Section 902 of the Merchant Marine Act, 1936, as amended, and the President’s Executive Orders Nos. 9054 and 9244, the Administrator, War Shipping Administration, has requisitioned the use of the Vessel, which Vessel at the time of such requisition was under charter from the Owner to the United States by Bareboat Charter dated as of April 29, 1942, consisting of a charter contract and addendum thereto, Contract No. WSA-1155.
“Now therefore, pursuant to said Section 902, the Administrator, War Shipping Administration, hereby transmits to the Owner this Charter, consisting of Part I and Part II *

In Part II there was, inter alia, clause 7, as follows:

“Clause 7. Before redelivery the Vessel shall be surveyed jointly by representatives of the Charterer and the Owner, or by. a surveyor satisfactory to both the Charterer and the Owner, to determine the condition of the Vessel. * * * Before redelivery, the Charterer, at its own expense, and on its time, shall restore the Vessel to at least as good condition and class as upon delivery, ordinary wear and tear excepted, and do all work and make all repairs necessary to satisfy any outstanding classification or steamboat inspection requirements necessary to place her in such condition and class, and perform all work required by Clause 2, Part II; * *. Provided, further, that at the Charterer’s option, redelivery of the Vessel to the Owner may be made prior to satisfying such requirements or prior to completion of such repairs or work, in which event the Charterer shall pay to the Owner the amount reasonably expended to place, the Vessel in such class and condition, and to perform the work of restoration under Clause 2, [170]*170Part II, and in addition thereto shall pay (a) an amount equal to the hire payable under this Charter for the use of the Vessel for the period of time necessary for such restoration work and repairs including any time lost awaiting available facilities; and (b) any such further amount necessarily expended by the Owner for insurance, wages and subsistence of the Master, officers and crew, and other Vessel expenses incurred during such period of time for restoration work and repairs, the Owner at all times to use due diligence, dispatch and economy. Provided, further, however, that if the Charterer and the Owner agree, the Charterer’s obligation under this Clause 7 and under Clause 2, Part II, may be discharged by a lump sum payment to the Owner at the time of redelivery of the ' Vessel to the Owner, or other mutually satisfactory agreement. * * * 9>

After a study of the proposed charter, the plaintiff wrote the Government objecting to the provision in Clause 7 which gave to the Government the option of returning the vessel unrestored and paying the amount reasonably expended by the owner to restore the vessel. The letter said that that course should be ‘ followed only if both parties agreed to it. The Government responded as follows:

“Your suggestion relative to redelivery at the option of the Administration cannot be accepted in view of the plain language contained in Section 902, which gives the Government the option of redelivering the vessel in the same condition as delivered, less ordinary wear and tear, ‘or the owner shall be paid an amount for reconditioning sufficient to place the property in such condition’. In view of the plain language of the statute as above quoted, I do not feel that any administrative official of the Government can waive the option provided in the charter without strong reasons for so doing.

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Eastern S. S. Lines, Inc. v. United States
112 F. Supp. 167 (Court of Claims, 1953)

Cite This Page — Counsel Stack

Bluebook (online)
112 F. Supp. 167, 125 Ct. Cl. 422, Counsel Stack Legal Research, https://law.counselstack.com/opinion/eastern-s-s-lines-inc-v-united-states-cc-1953.