Empire Aluminum Corporation v. SS KORENDIJK

391 F. Supp. 402, 1973 U.S. Dist. LEXIS 12030
CourtDistrict Court, S.D. Georgia
DecidedSeptember 5, 1973
DocketCiv. A. 2939, 2984
StatusPublished
Cited by8 cases

This text of 391 F. Supp. 402 (Empire Aluminum Corporation v. SS KORENDIJK) is published on Counsel Stack Legal Research, covering District Court, S.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Empire Aluminum Corporation v. SS KORENDIJK, 391 F. Supp. 402, 1973 U.S. Dist. LEXIS 12030 (S.D. Ga. 1973).

Opinion

FINDINGS OF FACT AND CONCLUSIONS OF LAW

LAWRENCE, Chief Judge.

I

FACTS

On June 29, 1972, Empire Aluminum Corporation filed a diversity action in this Court against Old Dominion Freight Line (formerly Nilson Motor Express) alleging that on or about August 13th-14th, 1969, defendant accepted for shipment to Empire 84 coils of aluminum sheets in good order and condition to be delivered to Newnan, Georgia under bill of lading. 1 It was alleged that the cargo in question arrived at destination “water-damaged”, in violation of the obligations of the motor carrier and that such damage amounted to $25,078.81.

Two years before filing that action, Empire brought suit in admiralty in the United States District Court, Southern District of New York, involving the shipment of the same cargo. The defendants were the S.S. “Korendijk” and HollandAmerika Lijn. The complaint alleges that on July 19, 1969, aluminum sheets were shipped aboard the “Korendijk” from Antwerp to Savannah. The cargo was delivered to the carrier in good order and condition but were not received at Savannah in like condition. The sheeting had suffered water damage in the amount of $25,100 for which recovery was sought by Empire Aluminum Corporation against the vessel and the shipowner.

The New York action was transferred ■in 1972 under 28 U.S.C.A. § 1404(a) to the Southern District of Georgia for convenience of parties and witnesses and in the interest of justice. Thereafter, the two suits were consolidated as common questions of law and fact were involved. The parties in the diversity action waived a jury and the two cases were tried together in this Court on August 8, 1973.

Three ocean bills of lading were issued by Holland-Amerika Lijn on July 19, 1969, covering 84 pallets of aluminum sheeting that were to be shipped from Antwerp aboard the “Korendijk” to Savannah. Each bill contained the language, “SHIPPED, in apparent good order and condition” and there was an instruction to “KEEP DRY”. No evidence was introduced on behalf of Empire with respect to the condition of the aluminum coils at time of delivery to Holland-Amerika Lijn or to the “Korendijk”. The aluminum sheeting was shipped to Empire Aluminum Corporation. It sold aluminum to Douglas & Lomason which has a plant at Newman, Georgia, that produces automotive trim.

Delivery of the aluminum sheets was made to Georgia Ports Authority at Savannah on August 6, 1969, shortly after the “Korendijk” docked or one or two *405 days later. Inspection of the exterior of the cases was made by employees of the Authority at the time of delivery to the inland carrier, Old Dominion Freight Line. Under Antwerp bill of lading #6002, 47 pallets of aluminum were received at Savannah. Notation was made that 10 had torn covers; that another pallet was broken on the bottom and another at the top; that the top frame on one of the cases was loose, and boards cracked at the top of another case. Bill of lading #6003 covered 15 pallets as to which exceptions were noted as to torn covers on 8 and a broken board on top of another. Inspection by Georgia Ports Authority of the 22 pallets covered by #6004 revealed that bands were broken and covers torn on 9 of such pallets.

John H. Denmark who is employed by Georgia Ports Authority as a warehouse superintendent was unable to say whether the coils of aluminum were left on the dock at Berth 57 or had been placed in Shed 5 after discharge from the “Korendijk”. It was the custom, he said, to place aluminum cargo in the shed and he did not recall seeing any of the pallets outside. A driver named Doles who transported a truckload of the aluminum cargo in question from Georgia Ports Authority to Old Dominion’s terminal at Savannah said that the pallets were on the dock side of the vessel and not under the shed. He testified that he placed a canvas tarpaulin on top of the cargo.

Old Dominion noted no exceptions at time of the delivery to it of the 84 pallets. Empire’s shipping order 2 provided that the aluminum sheets would be delivered by Old Dominion by “flatbed trailer”. There was a notice thereon that “THIS MATERIAL MUST BE KEPT DRY AND PROTECTED FROM WATER AND MOISTURE”.

Charles L. Sullivan of Savannah, a Marine Cargo Surveyor, conducted an investigation of the claim of damage. Following Empire’s report that some of the aluminum sheets had been damaged by water, he visited Newnan on three occasions. He examined the 84 pallets involved. 3 He said that some of the strips had been exposed to water. They were set apart. According to Mr. Sullivan, the consignee rejected a total of 158,055 pounds of aluminum which had a scrap value of 20 cents per pound and a market value of nearly 36 cents per pound. It was the witness’s opinion that the damage which consisted of staining occurred through contact with fresh water and that same took place between Savannah and Newnan. Applying the silver nitrate test to samples of the outer and inner paper wrapping and the wooden material on the skidding, no salt reaction resulted and such negative result was proof positive of absence of saline content.

Mr. Sullivan produced Department of Commerce records containing climatological data for the period involved. The record showed heavy rainfall at or near Milledgeville, Macon, Fort Valley and Mt. Vernon which are located along possible truck routes to Newnan. There was heavy rain at Savannah and much less extensive precipitation at Newnan.

He stated that the rejected aluminum was covered with whitish oxidation with the surface being somewhat pitted as in cases of rust. This occurs when aluminum oxidizes after being wetted by fresh or salt water. It was conceded by all that the damaged sheets were unfit for use. They were disposed of as salvage. The value of the aluminum in good condition was $56,784 and in the damaged state, $31,705. A settlement *406 with Empire was effected by the cargo insurer in the amount of $25,000 under loan receipt.

Five possibilities exist as to the time the damage to the aluminum sheets occurred :

(A) Damage prior to shipper’s delivery to the “Korendijk”.
(B) Damage aboard that vessel en-route to or at Savannah.
(C) While at dockside or under shed at Georgia Ports Authority.
(D) In transit to Newnan after delivery to Old Dominion.
(E) Damage after delivery to Empire at Newnan.

(A)

Damage Prior to Delivery to Ocean Carrier

As stated, Holland-Amerika issued clean bills of lading which recited that the goods were shipped in apparent good order and condition. There were no exceptions therein. The tightly-rolled coils were wrapped in polyethylene wrappers. Outside of that covering was a heavy pasteboard wrapping. An open skidding or crate arrangement was on top and was strapped to the base. Metal bands bound the circumference of the coils. The polyethylene wrapped at the top was folded over but not sealed. As a result, the package is not absolutely watertight.

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391 F. Supp. 402, 1973 U.S. Dist. LEXIS 12030, Counsel Stack Legal Research, https://law.counselstack.com/opinion/empire-aluminum-corporation-v-ss-korendijk-gasd-1973.