ESSO International Inc. v. SS Captain John

322 F. Supp. 314, 1970 U.S. Dist. LEXIS 12564, 1970 A.M.C. 2086
CourtDistrict Court, S.D. Texas
DecidedMarch 11, 1970
DocketNo. 66-H-8
StatusPublished
Cited by2 cases

This text of 322 F. Supp. 314 (ESSO International Inc. v. SS Captain John) is published on Counsel Stack Legal Research, covering District Court, S.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
ESSO International Inc. v. SS Captain John, 322 F. Supp. 314, 1970 U.S. Dist. LEXIS 12564, 1970 A.M.C. 2086 (S.D. Tex. 1970).

Opinion

MEMORANDUM

GARZA, District Judge.

Plaintiff, Esso International, Inc., originally brought this suit in Baltimore in rem and in personam to recover $37,398.46 from Bright Star Steamship Company, Inc., for fuel and lubricants furnished the SS CAPTAIN JOHN.

Since the CAPTAIN JOHN was found in Baltimore, the vessel was seized and the Defendant, Bright Star Steamship Company, Inc., posted its bond to secure release to it of the vessel. The suit was later transferred to the Houston Division of this Court, where the Defendant, Bright Star Steamship Company, Inc., a Panamanian corporation, had an office and where it was believed the principal witness resided.

That the fuel and lubricants being sued upon were delivered to the SS CAPTAIN JOHN is not in dispute, but the Defendant, Claimant and Owner of the SS CAPTAIN JOHN, denies that it owes the claim of the Plaintiff because it had paid in full for all fuels and lubricants furnished the vessel by payments [316]*316made to J.S. Gissel and Company from whom the Defendant claims it purchased the fuels and lubricants in question, and that Bright Star Steamship Company, Inc., never authorized anyone to place a lien on its vessel, the SS CAPTAIN JOHN.

That this Court has jurisdiction over the parties and the subject-matter of the suit is without dispute.

Away back in the early 1940’s, Captain John Theocharides and Captain Demetrios Couvielos, who had known each other for many years, saw each other in Houston, Texas, and decided to invest their money and go into the shipping business. Captain Couvielos has testified in this cause that they were both acquainted with Collin & Gissel who had acted as agents for ships that they brought into the Port of Houston, and that they decided to let Collin & Gissel, which was a company wholly owned by Julius S. Gissel who had filed the necessary papers to do business under the assumed name of Collin & Gissel, to act as their agents. A contract to name Collin & Gissel as the managing agent for Bright Star Steamship Company, Inc., and/or the SS CAPTAIN JOHN (which is not the present SS CAPTAIN JOHN, as it seems that this is the third SS CAPTAIN JOHN that Bright Star Steamship Company, Inc., has owned) was entered into on September 7, 1946 (Plaintiff’s Exhibit 19).

As has been said, Julius S. Gissel was the sole owner of Collin & Gissel, but he had as his office manager his brother and business associate, Lewis Gissel.

In 1946, Julius S. Gissel, as the manager and principal stockholder, formed a Texas corporation called J.S. Gissel and Company, to own and operate a transportation business with power to buy all kinds of steamship vessels and other water craft, and in fact did own tug boats, barges and the like. Lewis Gissel was a vice-president of J.S. Gissel and Company.

Collin & Gissel and J.S. Gissel and Company operated out of the same offices, and for all practical purposes was one and the same business, with Lewis Gissell acting as office manager for both.

Bright Star Steamship Company, Inc., had no office of its own in Houston, but an office was provided in the same place where the headquarters of Collin & Gissel and J.S. Gissel and Company were, for the use of Captains Theocharides and Couvielos.

Bright Star Steamship Company, Inc., had, when it owned other vessels not involved in this lawsuit, entered into purchase contracts of fuel and lubricants from the Plaintiff and its predecessor through contracts signed by Collin & Gissel, its managing agents.

When the present SS CAPTAIN JOHN was purchased, Captain Couvielos has testified that Mr. Julius Gissel came to him to let him obtain the fuel and lubricants for the SS CAPTAIN JOHN through a contract that he had through J.S. Gissel and Company with the Plaintiff.

Early in January of 1964, Mr. Lewis Gissel, signing in his capacity as Vice-President of J.S. Gissel and Company, executed a marine fuel contract with the Plaintiff, under which the Plaintiff undertook to furnish fuel oil requirements (including requirements of Bright Star Steamship Company, Inc.).

In March, 1964, Mr. Lewis Gissel, signing in the same capacity, executed an Essomarine Lubricants contract with the Plaintiff under which the Plaintiff undertook to furnish lubricant requirements “including Bright Star Steamship Company, Inc.,” and referring therein to the MT CAPTAIN JOHN. A provision in each of those contracts provided for a lien on the vessel to which fuel, oil and/or lubricants were furnished under the contracts, to secure the payment of the purchase price thereof.

The first contract above referred to is Plaintiff’s Exhibit No. 11, and the second is Plaintiff’s Exhibit No. 12.

The contention of the Claimant here, Bright' Star Steamship Company, [317]*317Inc., that J.S. Gissel and Company was not authorized to contract for fuel and lubricants to be put on board the SS CAPTAIN JOHN, cannot be upheld. Julius Gissel, as sole owner of Collin & Gissel and as the major stockholder of J. S. Gissel and Company, had ample authority as the managing agent under the assumed name of Collin & Gissel to contract for the furnishing of the fuel and lubricants in question to the SS CAPTAIN JOHN.

While Lewis Gissel wore two hats, as office manager of Collin & Gissel and as Vice-President of J.S. Gissell and Company, whenever he signed his name he was acting for both Collin & Gissel and J.S. Gissel and Company, and for Julius Gissel, his brother. Julius Gissel was given permission by the owners to arrange for the fuel and lubricants for the SS CAPTAIN JOHN, and whether he acted through Lewis Gissel as Collin & Gissel or J.S. Gissel and Company, makes no difference.

Captain Couvielos has testified that he was always presented with the invoices rendered by the Plaintiff on the fuel and lubricants delivered to the SS CAPTAIN JOHN, such as the invoices in Plaintiff’s Exhibits Nos. 1 through 8. Those invoices show conclusively that the invoices were charged to the SS CAPTAIN JOHN and Owners in the care of J.S. Gissel and Company. This should have put the owners of the SS CAPTAIN JOHN on notice that the Plaintiff was not looking for payment to J.S. Gissel and Company, but to the SS CAPTAIN JOHN and its owners.

Even if it could be said that J.S. Gissel and Company was not an agent of the SS CAPTAIN JOHN, the owners are estopped from denying such agency because they have in fact ratified the actions of J.S. Gissel and Company in contracting with the Plaintiff for the fuel needs of the SS CAPTAIN JOHN.

This litigation has arisen because J.S. Gissel and Company went into bankruptcy proceedings in this Court on December 15, 1964, in Cause No. 64-H-84. The Plaintiff in this cause filed its claim (Defendant’s Exhibit 13) for the original $37,398.46 in that cause and received a twenty per cent (20%) dividend on its claim, which amounted to $7,479.-69, leaving a balance on its present claim in this cause of $29,918.77.

The Defendant in this cause is claiming that the filing of the claim by the Plaintiff in the bankruptcy proceedings of J.S. Gissel and Company estops them from prosecuting this claim, and shows clearly that they were looking to J.S. Gissel and Company, and no one else,'for the payment of the fuel and lubricants delivered to the SS CAPTAIN JOHN.

This contention is wholly without merit.

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Related

Esso International, Inc. v. The Ss Captain John
443 F.2d 1144 (Fifth Circuit, 1971)
Esso International, Inc. v. SS Captain John
443 F.2d 1144 (Fifth Circuit, 1971)

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Bluebook (online)
322 F. Supp. 314, 1970 U.S. Dist. LEXIS 12564, 1970 A.M.C. 2086, Counsel Stack Legal Research, https://law.counselstack.com/opinion/esso-international-inc-v-ss-captain-john-txsd-1970.