Fernandez v. Chios Shipping Co.

458 F. Supp. 821, 1976 U.S. Dist. LEXIS 17160
CourtDistrict Court, S.D. New York
DecidedJanuary 15, 1976
DocketNo. 71 Civ. 2786
StatusPublished
Cited by9 cases

This text of 458 F. Supp. 821 (Fernandez v. Chios Shipping Co.) 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
Fernandez v. Chios Shipping Co., 458 F. Supp. 821, 1976 U.S. Dist. LEXIS 17160 (S.D.N.Y. 1976).

Opinion

MEMORANDUM OPINION

MOTLEY, District Judge.

Plaintiff Jose Fernandez was a longshoreman employed as a holdman by third-party defendant Maher Stevedoring, Inc. (“Maher”). On September 1, 1968, he was injured aboard the SS CHIOS, owned by defendant and third-party plaintiff Chios Shipping Company, Ltd. (“Chios”), as he [823]*823was assisting in the unloading of a cargo of pre-palletized cartons of pineapple at Port Newark, New Jersey. The cartons of pineapple had been prepared and shipped by the fourth party defendants Castle & Cook, Inc., Dole Corp., and Castle and Gook Foods Corporation (“Castle & Cook”). At the time of injury, the SS CHIOS was time chartered to third-party defendant States Marine Lines, Inc. (referred to herein by its present name, “Iseo, Inc.”).

This case was tried before a jury on June 2, 3, 4, 5, and 6,1975. In answer to special questions, the jury found on June 5 that the SS CHIOS was unseaworthy, that such unseaworthiness was the proximate cause of plaintiff’s injuries, that plaintiff was not contributorily negligent, and that plaintiff was entitled to damages amounting to $90,-200. Judgment in favor of the plaintiff against the defendant Chios was entered on July 8, 1975.

On June 6, 1975, additional questions were submitted to the jury to resolve the various third-party and fourth-party claims for indemnity. These questions and the jury’s responses are set forth below:

“1. Have the parties claiming indemnity against Maher Stevedoring Co., Inc., sustained their burden of proving that the stevedoring company which unloaded the pallets breached its warranty of workmanlike performance by failing to properly supervise and direct its employees with respect to the unloading operation and to provide for the safety of its employees?
YES (X)
NO _
2. Have the parties claiming indemnity against Maher sustained their burden of proving that the stevedoring company in unloading the pallets breached its warranty of workmanlike performance by improperly loading the pallet in question on to the forklift?
YES _
NO 1X1
3. Have the parties claiming indemnity against Maher sustained their burden of proving that the stevedoring company breached its warranty of workmanlike performance by failing to comply with the applicable Safety Regulation with respect to unloading by pallet?
YES _
' NO 1X1
4. If the answer to any of Questions 1, 2, or 3 is Yes, have these parties sustained their burden of proving that the stevedore’s action was a proximate cause of plaintiff’s injuries?
YES 1X1
NO _
5. If you find that the stevedore breached its duty in any of the respects discussed in Questions 1, 2, or 3, do you find that the Captain or any member of the ship’s crew knew or should have known of the condition?
YES _
NO 1X1
6. If the answer to Question 5 is Yes, do you find that the ship’s agents acquiesced in the longshoremen working under such condition?
YES _
NO _
7. If you find that the answer to Questions 5 and 6 is Yes, do you find that the ship’s agents’ failure to remedy the condition so outweighed the breach of the stevedore’s duty so as to preclude indemnity from the stevedore?
YES _
NO _
8. Have the parties claiming indemnity against the Castle Cook-Dole Group sustained their burden of proving that the pre-palletized pineapple unit which broke apart on being lifted was the result of negligence on the part of the Castle Cook-Dole Group?
YES 1X1
NO _
[824]*8249. Have the parties claiming indemnity against the Castle Cook-Dole Group sustained their burden of proving that the pineapple unit which broke apart was the result of a latent or hidden defect in the pallet?
YES (X)
NO _
10. If the answer to either Question 8 or 9 is Yes, have the parties sustained their burden of proving that the Castle Cook-Dole Group’s actions were a proximate cause of plaintiff’s injuries?
YES 1X1
NO _”

Inasmuch as Chios, Maher, Isco, and Castle & Cook all seek indemnity from each other, their claims will be separately considered.

Liability of the third party defendant charterer, Isco, to the third-party plaintiff ship owner, Chios, is predicated upon clause 8 of the time charter agreement. That clause provides, in relevant part, that “[cjharterers are to load, stow, and trim and discharge the cargo at their expense under the supervision of the Captain. . . .” On this basis, “Chios claims a right over against [Isco] for any liability to plaintiff arising out of breach of the aforesaid charter party upon a finding, if any, of its failure to properly load, stow, and discharge the palletized packages of pineapple.”1

While the basis of the liability asserted by Chios here is not entirely clear, it is referred to in the pre-trial order as “breach of charter party,”2 and appears to be a species of liability without fault on the part of the charterer, in the nature of a warranty of safe and proper performance of the cargo operations. The court agrees that the charterer should indemnify Chios on this basis.

Both in argument and in memoranda, Chios relies heavily on two cases from this Circuit which have dealt with the respective liabilities of charterer and ship owner for cargo damage which occurred aboard ships operating under time charter.

In Nichimen Company v. M. V. Farland, 462 F.2d 319 (2d Cir. 1972), Chief Judge Friendly had occasion to construe a virtually identical clause in a time charter agreement to determine whether a ship owner or charterer would be held liable for cargo damage which occurred due to negligent stowage by a cargo “specialist” who had been hired by the charterer’s port agent in Japan. In the circumstances of that case, Judge Friendly held that, under the time charter clause cited above, “[t]he charterer’s prime responsibility for loading and stowage is not destroyed by the qualification that this shall be ‘under the supervision of the Captain,’ a phrase doubtless intended to make plain the master’s right to veto a plan that might imperil the seaworthiness of the vessel . . . not to impose on him a duty, as the owner’s agent, to supervise the charterer’s stow.” 462 F.2d at 332. Thus, the supervisory authority contractually retained by the Captain was held not to be a bar to indemnification by the charterer for cargo damage incident to stowage.

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Bluebook (online)
458 F. Supp. 821, 1976 U.S. Dist. LEXIS 17160, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fernandez-v-chios-shipping-co-nysd-1976.