Farbwerke Hoeschst A. G. v. M/V "DON NICKY"

589 F.2d 795, 26 Fed. R. Serv. 2d 1316, 1979 U.S. App. LEXIS 16933, 1979 A.M.C. 1668
CourtCourt of Appeals for the Fifth Circuit
DecidedFebruary 14, 1979
DocketNos. 77-2161, 77-2162
StatusPublished
Cited by36 cases

This text of 589 F.2d 795 (Farbwerke Hoeschst A. G. v. M/V "DON NICKY") is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Farbwerke Hoeschst A. G. v. M/V "DON NICKY", 589 F.2d 795, 26 Fed. R. Serv. 2d 1316, 1979 U.S. App. LEXIS 16933, 1979 A.M.C. 1668 (5th Cir. 1979).

Opinion

CHARLES CLARK, Circuit Judge:

The defendants in these consolidated admiralty cases, the M/V “Don Nicky” and its owner, Julio Zakzuk, appeal from the district court’s entry of summary judgments and subsequent final judgments in favor of separate shippers of fertilizer adjudicating defendants liable for a total of $141,081.46 for cargo damage. After separate hearings on the issue of liability, the court granted summary judgment motions of plaintiffs Farbwerke Hoeschst A. G. and Albatros Superfosfaatfabrieken on December 2,1976, and February 24, 1977, respectively. Final judgment based on a consolidated damages hearing was entered on March 16, 1977. We reverse and remand for a full trial.

The undisputed facts establish that the plaintiff shippers delivered to the M/V “Don Nicky,” a cargo vessel of Panamanian registry, bagged chemical fertilizer to be transported from Rotterdam, Holland, to Panama. All cargo was shipped on the same voyage to the same consignee but was carried under several bills of lading, which indicated that the cargo was received by the “Don Nicky” in Rotterdam in good order and condition. During the voyage, salt water entered the hold and damaged 18,925 of the total 52,765 bags of fertilizer.

Farbwerke initially contends that this appeal is untimely. The governing statute, 28 U.S.C.A. § 2107, provides:

In any action, suit or proceeding in admiralty, the notice of appeal shall be filed within ninety days after the entry of the order, judgment or decree appealed from, if it is a final decision, and within fifteen days after its entry if it is an interlocutory decree.

Notice of appeal was filed March 25, 1977. The district court had granted Farbwerke’s motion for summary judgment and entered its order entitled “Interlocutory Judgment” on December 2, 1976. Farbwerke argues that § 2107 required defendants to file their appeal within fifteen days of this interlocutory order. We have previously held, however, that an appellant does not compromise its rights to review of interlocutory orders by waiting for a final judgment. Caradelis v. Refineria Panama, S.A., 384 F.2d 589 (5th Cir. 1967); Gloria Steamship Company v. Smith, 376 F.2d 46 (5th Cir. 1967). Since these appeals were taken within the statutory ninety days from entry of the March 16 final judgment, this court has jurisdiction to review the entire proceeding.

Defendants urge- this court to vacate the judgments against them since plaintiffs, the shippers, are not the real parties in interest. Shipments were made C.I.F.; therefore, title to the cargo passed upon delivery to the carrier, and the consignee bore the risk of loss in transit. York-Shipley, Inc. v. Atlantic Mutual Insurance Co., 474 F.2d 8 (5th Cir. 1973). Yet the consignee, Coagra, was not a party to the action. The Federal Rules of Civil Procedure require every action to be prosecuted in the name of the real party in interest. F.R.Civ.P. 17(a). Plaintiffs argue that this principle is liberally construed in admiralty law so as to permit them to sue “as agents and trustees on behalf of and for the benefit of the parties who may be or become interested in the said cargo, as their interests may ultimately appear.” The district court, in a pretrial motion hearing which defendants failed to attend, accepted plaintiffs’ argument that defendants’ “defense . . . about the real party doesn’t go in admiralty.” We disagree. The Federal Rules of Civil Procedure are fully applicable in admiralty cases. 7A Moore’s Federal Practice H .01 (2d ed. 1978). Plaintiffs point to early case authority which permitted admiralty suits by shippers as representatives when the real party was abroad or otherwise unavailable. Aunt Jemima Mills Co. v. Lloyd Royal Belge, 34 F.2d 120 (2d Cir. 1929); United States v. United States Steel Products Co., 27 F.2d 547 (S.D.N.Y.1928). Those cases, however, permitted such representative suits only when the real party consignee had ratified the shipper’s capacity to sue in its behalf. A shipper, after having parted with title to the goods, may not sue the carrier as trus[798]*798tee for the consignee. To the contrary, this court in York-Shipley, Inc. v. Atlantic Mutual Insurance Co., supra, 474 F.2d 8, dismissed for lack of standing an action initiated by a shipper against the insurer of goods shipped C.I.F. The court found that the shipper’s only interest in the suit was “that of an unsecured creditor of its foreign customer,” and that it therefore had no insurable interest. Since the judgments entered must be vacated on other grounds, we direct the district court on remand to meet the requirement of F.R.Civ.P. 17(a) by join-der or ratification of the real party in interest.

Before granting Farbwerke’s motion for summary judgment, the district court reviewed a sworn statement of the owner Zakzuk, relevant sections of the “Don Nicky’s” Bridge Log Book, and affidavits of two experts who expressed their opinions of the seaworthiness of the “Don Nicky.” Plaintiff’s affiant, Captain Maxey, concluded, after reviewing Zakzuk’s statement and the load-line certificate issued the “Don Nicky” at the time in question, that the ship was overloaded and her watertight doors were not watertight and that she was thus unseaworthy. In response, defendants presented the affidavit of Chet Holland, a marine surveyor and Master Mariner. In his opinion, the ship was not unseaworthy. While acknowledging that this conclusion was based on an out-dated load-line certificate, he nevertheless disagreed that the overloading as stated in Captain Maxey’s affidavit would necessarily imply unseaworthiness. Other questions concerning liability appear in the sparse record before us. Zakzuk’s statement indicated the ship had encountered bad weather and states that the cargo was to have been packaged in waterproof sacks. The district court found as a matter of law that the wind force was insufficient to absolve the carrier from liability but did not apparently consider the packaging question. It further concluded that the Bills of Lading did not incorporate limitations of liability written into the charter parties. The court did not, however, resolve an issue raised as to conflict of laws. Upon the information before it, the court concluded in the Farbwerke case that the “Don Nicky” was unseaworthy because “she was loaded beyond her allowed marks and seawater went through her watertight doors, thus showing that said doors were not watertight,” and entered summary judgment in Farbwerke’s favor as to liability. The court then relied upon these same findings in later granting a similar summary judgment on liability to Albatros.

The district court’s function, in a summary judgment proceeding, is not to resolve factual issues but to determine whether there exists a genuine issue of material fact. F.R.Civ.P. 56(c).

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589 F.2d 795, 26 Fed. R. Serv. 2d 1316, 1979 U.S. App. LEXIS 16933, 1979 A.M.C. 1668, Counsel Stack Legal Research, https://law.counselstack.com/opinion/farbwerke-hoeschst-a-g-v-mv-don-nicky-ca5-1979.