Fidelity-Phenix Fire Ins. Co. Of New York v. Flota Mercante Del Estado. The Rio Gualeguay

205 F.2d 886
CourtCourt of Appeals for the Fifth Circuit
DecidedAugust 11, 1953
Docket14329
StatusPublished
Cited by11 cases

This text of 205 F.2d 886 (Fidelity-Phenix Fire Ins. Co. Of New York v. Flota Mercante Del Estado. The Rio Gualeguay) 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
Fidelity-Phenix Fire Ins. Co. Of New York v. Flota Mercante Del Estado. The Rio Gualeguay, 205 F.2d 886 (5th Cir. 1953).

Opinion

STRUM, Circuit Judge.

This libel in admiralty was brought, against the owner and operator of the-Steamship Rio Gualeguay to recover for fire damage to a shipment of newsprint on-December 3, 1943, while the vessel was in-the harbor of New Orleans, Louisiana. Libellant is the insurer of the newsprint, to-whom the rights of the owner thereof were assigned upon payment of the loss. The appeal is from a decree dismissing the libel. 102 F.Supp. 861.

The vessel’s No. 2 hold had been divided in half by a thwartship wooden bulkhead, the after half of the hold being used for the stowage of reserve bunker coal, the forward' half for cargo. At the time of the fire, this-bunker was filled with coal, the pile extending some 16 feet above the level of the main, deck. The coal had been loaded in the bunker only 5 days before the fire. The wooden bulkhead was sheathed on the-cargo side with heavy paper, designed to- *887 prevent the seepage of coal dust into the cargo, and to make the bulkhead as nearly airtight as possible.

Hold No. 2, immediately forward of the bulkhead, had been loaded with general cargo consisting of cigarettes, tobacco, tin plate, machinery, barrel staves, brick, and the newsprint in question. The vessel completed loading at about 4:30 p. m. on December 2, 1943. The hatch was closed and the cover battened down in preparation for the vessel’s departure the following day. On the early morning of December 3, 1943, shortly after midnight, an odor of burning material was noticed below decks, and smoke was observed coming out of the ventilators of cargo hold No. 2.

The harbor fire boat, and land equipment of the New Orleans fire department, responded promptly to a call from the vessel, but the ship’s officers would not permit the hatch cover to be removed, as they wished to use the ship’s steam smothering system to extinguish the fire in order to prevent water damage to the cargo. This was tried unsuccessfully for about 30 to 40 minutes, after which the hatch was opened and the fire boat and land equipment pumped large quantities of water into the hold. After about 2 hours, the vessel was beached to prevent listing, and the fire boat continued to pump water into the hold until it was almost level with the main deck, thus extinguishing the fire.

Respondent’s defense is based upon the so-called “fire statute,” 46 U.S.C.A. § 182, which in effect provides that no owner of a vessel shall be liable for cargo loss or damage by fire on board the vessel “unless such fire is caused by the design or neglect of such owner.” See also the “Carriage of Goods by Sea” Act, 46 U.S.C.A. § 1304(2) (b). Contending that the fire originated from spontaneous combustion in the bunker coal, induced by faulty construction of the wooden bulkhead, and that the vessel was unseaworthy because her steam smothering system was defective and inoperative, and also because faulty construction of the bulkhead prevented proper drainage in hold No. 2, libellant asserts that it has successfully met the burden of establishing that the fire occurred by the “design or neglect” of respondent.

,[1] The issues are largely factual. Although in an admiralty proceeding an appellate court has the power to try the case de novo on appeal, it is not required to do so, and will not ordinarily disturb the trial court’s findings of fact unless they are clearly in error, particularly when, as here, the trial court has seen and heard the witnesses. Mosher v. Parker Bros. & Co., 5 Cir., 178 F.2d 419; Sawyer, Inc., v. Poor, 5 Cir., 180 F.2d 962; Lucayan Transports v. McCormick Shipping Corp., 5 Cir., 188 F.2d 202.

It is well settled that a shipowner is not liable for damages resulting from fire unless libellant proves that the cause of the fire was due to the “design or neglect” of the owner, the burden being upon libellant. It is also well settled that this rule applies to vessels of foreign registry. Earle and Stoddart v. Ellerman’s Wilson Line, 287 U.S. 420, 53 S.Ct. 200, 77 L.Ed. 403; Consumers Import Co. v. Kabushiki, 320 U.S. 249, 64 S.Ct. 15, 88 L.Ed. 30, modifying Kokusai Kisen Kabushiki Kaisha v. Texas Gulf Sulphur Co. (The Etna Maru), 5 Cir., 33 F.2d 232; The Older, 2 Cir., 65 F.2d 359; The Ida, 2 Cir., 75 F.2d 278; Hoskyn & Co. v. Silver Line, 2 Cir., 143 F.2d 462.

The district judge found that the use of a wooden bulkhead in these circumstances was a customary practice; that this bulkhead was prudently constructed and used; and that the fire originated, not in the bunker coal, but in the cargo hold. He further found that there were no clinkers or ashes in the bunker coal after the fire, though the bulkhead had apparently been heated to a high temperature by the fire; that the fire was seen to be in the cargo hold, from which smoke was first discovered to be rising, and into which the fire department pumped the water. No water was pumped into the coal bunker, and no smoke emanated from the coal bunker. Examination after the fire indicated that the fire was in the tobacco and newsprint in the after part of the cargo hold, on the starboard side. The deck and the shell plating of the ship, in the vicinity of the tobacco and newsprint, *888 were buckled from the heat of the fire, but there was no buckling on the bunker side of the bulkhead. The wooden bulkhead itself was badly charred on the cargo side, but was not:burned on the hunker side, except ,in a few spots where-the fire had eaten through the bulkhead.' This, and other supporting evidence, fully justifies the findings of the district judge as to the place of origin of the fire, and negatives the asserted origin from spontaneous combustion in the coal bunker.

There is evidence to the effect that during the fire men were seen bringing up “red, glowing” coals from below decks, and that smoke seeped from the coal bunker into the fireroom through small holes in a steel bulkhead, separating the bunker and fireroom. This evidence was so completely at variance with other and strongly countervailing evidence we can find no- fault with the refusal of the district judge to rely upon it. The actual cause of the fire remains unknown. The burden of proving that the fire was caused by the “design or neglect” of the vessel’s owner is upon the libellant. We agree with the district judge that libellant’s proof was inadequate to meet that burden.

Nor does the evidence sustain libellant’s charge that the wooden bulkhead blocked the drainage from No. 2 hold, so that the hold could not be properly drained.

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205 F.2d 886, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fidelity-phenix-fire-ins-co-of-new-york-v-flota-mercante-del-estado-the-ca5-1953.