Fido v. Brazileiro

267 F. 733, 1919 U.S. Dist. LEXIS 650
CourtDistrict Court, S.D. New York
DecidedJuly 24, 1919
DocketNos. 67-192, 69-87, 69-88, 67-184, 68-248, 11-197, 68-354, 67-366, 68-332, 66-362, 67-322, 68-31, 67-209, 68-353, 67-210, 68-333
StatusPublished
Cited by11 cases

This text of 267 F. 733 (Fido v. Brazileiro) 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
Fido v. Brazileiro, 267 F. 733, 1919 U.S. Dist. LEXIS 650 (S.D.N.Y. 1919).

Opinion

WARD, Circuit Judge.

In the course of the European war, the United States compelled the owners of from 300,000 to 400,000 tons of Norwegian sailing tonnage, then in this country, to carry under a form of charter party prepared by the United States Shipping Board. In August and September, 1918, the government compelled all shippers of coal from the United States to South America to ship in vessels allocated to them by the United States Shipping Board under this form of charter. At the same time all miners and operators were compelled to consign their coal destined for the seaboard to the Tidewater Coal Exchange, by whose representative it was inspected at each port. The mines on the different railroads were classified in respect to the steam-producing qualities of their coal, into separate pools; each operator being credited with the number of cars he consigned to a particular pool. Purchasers from the mine operators were obliged to pay the prices fixed by the Fuel Administration, and to take their coal from the pool, whether it was wholly, or partly, their vendor’s coal, or wholly coal of other operators. The purpose was to avoid delay and congestion, by treating the pool as an aggregate of cars containing the same quality and grade of coal, and deliverable upon all contracts for coal from that pool.

In this situation the seven Norwegian sailing vessels, Svalen, Fjong, Baunen, Trio, Dvgerso, Sordwig, and Clyde, belonging to the libelants, were allocated to the charterers to carry cargoes of bituminous steaming coal from Norfolk to Rio de Janeiro; six of them then lying at New York and one at Baltimore. The relevant clauses of the charter party are:

“2. If vessel is required to ship from iier last port or berth of discharge in the United States to another port or berth to load, charterers shall furnish sufficient cargo or ballast for stiffening to enable vessel to shift ports or berths safely. Charterers to pay cost of towage, but time for shifting ports not to count as lay days. If ballast is furnished for stiffening to enable vessel to shift ports or berth safely, all cost, including loading and discharging, to be paid by charterers and time to count as lay days, just as if cargo was used for stiffening. Stiffening to be supplied when and where required or lay days to count. Master to give 48 hours’ notice of readiness.”
“5. Cargo to be delivered to vessel, loaded and stowed free of expense to vessel, and to be discharged by charterers or their agents at their expense. Master to give free use of vessels’ winches, donkey boiler, and such tackle as may be on board. Vessel to be free of all lighterage.
[736]*736“6. It is agreed that lay days for loading and discharging shall be as follows (if not sooner dispatched) : Commencing from the time vessel reaches loading or discharging port or dock, or berth, if available, and master has filed written notice to that effect and all customs formalities have been complied with. In the event of berth for loading or discharging not being available, lay days to count from the time captain gives notice of readiness to proceed to loading or discharging berth, vessel being duly entered and all other customs formalities complied with.
“7. Cargo to be loaded at the average rate of not less than 250 tons per running day, Sundays and holidays excepted, and to be discharged at the average rate of not less than 250 tons per running day, Sundays and holidays excepted. Time reversible; i. e., any time saved at loading port to apply at port of discharge. Charterers to have the privilege of working vessel on Sundays and holidays if they so desire, provided they pay all extra expenses and overtime, actually incurred by working cargo in connection with ship and cargo. Sundays and holidays so used not to count as lay days.
“8. And for each and every day’s detention by default of said party of the second part or agents twenty cents per ton, U. S. gold, of vessel’s agreed deadweight capacity, and pro rata for part of a day, shall be paid by said party of the second part, or agents, to the party of the first part, or agents payable day by day as earned. * * * ”

And for each and every day saved in loading or discharging 10 cents per ton measured in the same way was to be paid by the owners to the charterers. The vessels could not stand up empty, and the charterers had the privilege of supplying coal as stiffening to enable them to be towed to Norfolk for the balance of their cargoes, and they did so. Upon the arrival of each of these seven vessels there it was found that the stiffening was heating with a steadily rising temperature, and marine surveyors, employed by the masters, having recommended that it be discharged, it was by agreement discharged and sold by the charterers for account of whom it may concern, without prejudice to any claims they and the vessels’ owners might mutually have, the one against the other. The vessels were then given new stiffening and loaded with coal, which they carried safely to Rio.

All- this resulted in delay, and the owners filed these libels to recover ’ demurrage from the charterers, on the ground that they were liable for loading coal stiffening which was unfit for shipment., The charterers filed answers, denying any liability for demurrage, and cross-libels to recover the expense of discharging the heated stiffening and of replacing it with new stiffening as for ship’s account, or, if this claim were not sustained, then to recover contribution from the owner in general average, and in some of the cases for the value of the heated stiffening at destination, less freight, and proceeds of sale, and in some of the cases for dispatch money for time saved in loading and discharging. In addition, charterers, who had purchased their coal stiffening, petitioned in their vendors under the fifty-ninth rule (29 Sup. Ct. xlvi), as being liable to indemnify them against any recovery by the owners, because of the unfitness of the coal for shipment.

I am referred to no case similar to this. All the charterers contracted with reliable people for coal from pools of good grade for export, which was discharged from the cars into barges, and loaded from the barges alongside the vessels in the usual way, without any objection by the masters. It is the law of this court that charterers are not liable [737]*737for concealed defects in the cargo or subject to any implied warranty of its fitness for shipment. The William J. Quillan, 180 Fed. 681, 103 C. C. A. 647. The tendency of coal to heat was as well known to the masters as it was to the charterers. If the coal was improperly loaded, as the libelants’ experts testify, it was the duty of the masters to object. Olsen v. U. S. Shipping Co., 213 Fed. 18, 129 C. C. A. 607.

[1] I think neither the owners nor the charterers were at fault in respect to the coal, and the question is: When, under these circumstances, do the lay days begin to run? The obligation to load and discharge at the rate of 250 tons a day was not absolute, but conditional. It arose by the terms of the charter party, when the vessels were ready to receive cargo and had given written notice thereof. That they were not ready to receive the balance of the cargo is shown by the refusal of the masters to take it on board until the heated stiffening was discharged and replaced by new stiffening. The lay days did not begin to run at Norfolk until that time.

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Cite This Page — Counsel Stack

Bluebook (online)
267 F. 733, 1919 U.S. Dist. LEXIS 650, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fido-v-brazileiro-nysd-1919.