Fianza Cia Nav. S. A. v. Benz

178 F. Supp. 243, 43 L.R.R.M. (BNA) 2682, 1958 U.S. Dist. LEXIS 2966
CourtDistrict Court, D. Oregon
DecidedDecember 4, 1958
DocketCiv. 10101
StatusPublished

This text of 178 F. Supp. 243 (Fianza Cia Nav. S. A. v. Benz) is published on Counsel Stack Legal Research, covering District Court, D. Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fianza Cia Nav. S. A. v. Benz, 178 F. Supp. 243, 43 L.R.R.M. (BNA) 2682, 1958 U.S. Dist. LEXIS 2966 (D. Or. 1958).

Opinion

EAST, District Judge.

As the record shows, this Court completed taking of testimony and the receipt of evidence and that it heard the statements of counsel' in connection with the matter of Fianza CIA Nav. S.A., a corporation, whom I understand to be a Panama corporation, and the other plaintiff, Frachten Treuhand, G.m.b.H., which 1 understand to be a corporation of Germany, against various unions, officials *245 of the unions and members of the unions. There has been read into the record the parties who had been served at the time of the hearing, and plaintiff elected to go forward against those defendants who had been served. So the Court can only-deal with reference to those defendants whom the record shows were served and counsel for the defendants having read in the record that they represented those particular people

The Court was unresolved at the close of the hearing yesterday afternoon, late in the afternoon, and determined that it should have the advantage of the evening time to review the opinion which was recently entered by Judge Bryan in New York, Afran Transport Co. v. National Maritime Union, D.C., 169 F.Supp. 416.

During the course of the trial there was considerable discussion among counsel and the Court as to the exact status of the plaintiffs as either owners, operators or charterers of the vessel involved, being the — I believe she is the Motorship Capetan Yemelos which is presently in this port, Portland, docked at a private dock. And she has been unserved and unserviced by any servicing maritime agency since the time there appeared in the vicinity of the dock certain members of the unions which have been served and are parties to this proceeding, who carried banners to the effect that they 'were protesting the practice which they claimed that this vessel and her owners and charterers were engaged in in attempting to develop policies of undermining and lowering the standard of wages and working conditions of American seamen.

Great stress has been placed by the defendants upon the decision of Judge •Bryan of New York, wherein he held that a labor dispute existed and that his court did not have jurisdiction to enter injunc-tive relief pendente lite. So this Court .questioned counsel and tried to be attentive to the evidence produced as to determining whether or not the factual situation presented here in Portland was the same as the situation in New York.

Now, I read from Page 10 of the transcript of Judge Bryan’s opinion wherein it states:

“The defendants” — being unions and members of. the unions — “de- . scribe the ‘flags of convenience’ or ‘flags of necessity’ which these ships fly as ‘runaway flags’ and assert that they are a device by the American interests who control the plaintiff corporations to avoid the necessity of entering into American collective bargaining agreements with the crews of such vessels or the payment of American seamen’s wages.” 169 F.Supp. 420.

Now, that was the premise upon which Judge Bryan proceeded. There were multiple plaintiffs and multiple defendants in that matter before the Judge and it was all predicated, and as the evidence in this case shows that there was an international movement among international labor unions, if you will understand the meaning that I am placing on that, representing seamen throughout the world and, particularly, American seamen.

And that movement was advertised, as the evidence shows in this case, through the media of information, the trade journals of the union and the union members, that a four-day protest would be staged against this practice of vessels being and carrying what seems to be in the vernacular runaway flags; in other words, meaning that by subterfuge the true ownership and the true nationality of a vessel was disguised by having her registered and carrying the flag of some foreign country. And there seems to have been three countries that had been picked out that appear to be utilized by these so-called runaway flagships being under the Panamanian flag, Costa Rica, I believe, and, as we are deal *246 ing here, primarily, Liberia, or the Liberian flag.

Now, I have reached the conclusion that in determining the relationship of these parties that what flag any given bottom carries is not of importance. The question is: Who are the true owners, the true operators and the true charterers of any given vessel upon any given voyage? If it should develop that the owners, operators, or charterers are engaged in some sort of a conspiracy or some sort of activity that tends to relieve them of their true obligation of dealing collectively with bargaining agents of American seamen, then the American seaman has had a wrong committed against him. If, on the other hand, the true ownership and the true operator or the true charterer of any given vessel on any given voyage is purely foreign, is not in a position, in any event, to deal collectively with any bargaining agent representing any American seaman, the American seamen have no complaint; they are not in the market.

As this Court pointed out yesterday, there were — at least, according to the Shipping News — two Japanese vessels being worked by the servicing agencies within the port without any difficulty. So the question was and it now resolves to determine whether or not the owner of this vessel involved is in truth and fact American or United States ownership which has devised a plan which would tend to defeat or to relieve them of their duty to bargain collectively with any given bargaining agent of any group of American seamen. Secondly: Is there a labor dispute either within the meaning of the Norris-LaGuardia Act, 29 U.S.C.A. § 101 et seq., or Taft-Hartley Act, 29 U.S.C.A. § 141 et seq., or Oregon’s Little Norris-LaGuardia Act, ORS 662.010 et seq. ? If there is a labor dispute, then the jurisdiction of this Court with reference to injunctive matters and labor disputes is greatly restricted and this Court acknowledged that.

If, on the other hand, there is no labor dispute, then this Court is obliged to determine whether or not either under common law or under State law or, perhaps, Federal law, whether or not these individuals who have placed themselves in the vicinity of the dock where the ship is berthed and attempted to have been loaded have violated some wrong against the owners, the operators and the charterers of the vessel involved.

Now, the first plaintiff indicated is a corporation of Panama. There is no direct showing in the evidence as to who the stockholders of this corporation are, neither on behalf of plaintiff nor on behalf of the defendants who were required to show cause.

Now, this Court has found it takes judicial knowledge of the laws of Panama, and is bound to take the presumption or the inference, at least, that all business transactions had are bona fide and in due course.

The second plaintiff in the case is a German corporation who is the charterer of the vessel on this given voyage. Evidence shows that she came here under ballast and that she was to be stowed with a cargo of barley to be delivered to a port in Germany. There seems to be no quarrel, no contention made by the defendants that any of the stockholders of the German corporation are of American nationality.

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Related

Afran Transport Company v. National Maritime Union
169 F. Supp. 416 (S.D. New York, 1958)

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Bluebook (online)
178 F. Supp. 243, 43 L.R.R.M. (BNA) 2682, 1958 U.S. Dist. LEXIS 2966, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fianza-cia-nav-s-a-v-benz-ord-1958.