Gaete v. Barber Steamship Lines, Inc.

57 Misc. 2d 167, 292 N.Y.S.2d 155, 1968 N.Y. Misc. LEXIS 1409
CourtNew York Supreme Court
DecidedJune 6, 1968
StatusPublished

This text of 57 Misc. 2d 167 (Gaete v. Barber Steamship Lines, Inc.) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gaete v. Barber Steamship Lines, Inc., 57 Misc. 2d 167, 292 N.Y.S.2d 155, 1968 N.Y. Misc. LEXIS 1409 (N.Y. Super. Ct. 1968).

Opinion

Benjamin Brenner, J.

Plaintiff, a seaman, sustained injuries on the vessel Turandot in waters off Hong Kong. He allegedly was ordered into an area of danger between piston cylinders, where he was struck by one of the crossbars. The ship was owned by Wilh. Wilhelmsen, of Oslo, whose general agent in the United States was the defendant, Barber Steamship Lines, Inc. The parties stipulated to waive a jury and to permit me to resolve the issue of liability for negligence under the Jones Act '(U. S. Code, tit. 46, § 688) or for unseaworthiness on examinations, depositions and legal memoranda.

Recovery under that act depends upon a preliminary finding that Barber was either plaintiff’s employer, operating and controlling the vessel, or, in the alternative, that Barber failed to inform plaintiff that Wilhelmsen was the employer or that Barber was acting as agent for an undisclosed principal. Unfortunately, the evidence discloses no direct employment of plaintiff by either Barber or Wilhelmsen. The manner and circumstances in which he was hired, though following custom[169]*169ary procedures, require close examination to determine which of them actually was the employer.

Plaintiff is a Chilean citizen and had come off a Norwegian ship the day he applied to the Scandinavian Shipping Office for a job as an oiler. The card in the hiring hall indicated the ship Turandot and Barber Line (plaintiff recalls this, though he claims inability to read or write, English or Norwegian). He turned in the card with proof of his union affiliation, was sent to the consulate (as required by Norwegian law), was physically examined, returned to the hiring hall, where he signed for the voyage to the Far East, and was transported in a vehicle inscribed with Barber’s name to the pier, which also bore Barber’s name. He then boarded the ship bearing the Wilhelmsen insignia. It is urged that these facts, along with Barber’s activities in relation to the vessel, establish employment by Barber, absent contact and agreement between plaintiff and Barber.

Since it is undisputed that Wilhelmsen is the actual owner and plaintiff cannot establish direct employment, he further claims that employment must be inferred because defendant had control and custody of the ship, manning, operating and navigating it. In short, he contends that Barber was the owner pro hac vice (the owner for the particular voyage) in the course of which voyage plaintiff sustained his injuries. The acceptable test for determining an employer-employee relationship, based upon the extent of the agent’s control, is that laid down in Cosmopolitan Co. v. McAllister (337 U. S. 783). The court there reiterated the rule that under the Jones Act there could be only one employer who can be sued by an injured seaman and that (p. 795) “ one must look at the venture as a whole. ” (See, also, 2 Norris, Law of Seamen, § 666.) It put the following categorical questions in construing the word ‘ ‘ employment ’ ’ to protect seamen for torts committed against them: 1 ‘ Whose orders controlled the master and the crew? Whose money paid their wages? Who hired the crew? Whose initiative and judgment chose the route and the ports? ” (p. 795).

The evidence before me leaves little doubt that, in its procurement and placement of cargo and passengers, Barber did not alone issue orders to the master of the ship nor to the members of its crew and, though it is not clear who actually hired them, the defendant Barber certainly did not. The internal operations of the ship, both in port and on the high seas, were not directed or interfered with by Barber, save in the specifics of the agency. Wilhelmsen’s husbanding agent, Martinson & Co., also issued directions for the crew’s labors aboard [170]*170the vessel, relative to repairs, drydocking, bunkering and general maintenance, directions which were given and followed even while Barber was performing its functions. Indeed, such division of authority between Barber, as berthing agent, and Martinson, as husbanding agent, indicates that neither of them possessed management and control of the vessel (Cosmopolitan Co. v. McAllister, supra, pp. 797-798). In short, it was not Barber’s orders which wholly controlled the master and the crew.

Was it Barber’s money which paid their wages? Clearly the answer is no. Barber in the East Coast ports and its subagents in other United States ports performed many services, soliciting and servicing cargo and passengers, for which it collected a percentage of the gross receipts. (Other general agents for Wilhelmsen performed similar services abroad, particularly in the Far East.) The gross receipts were maintained in a special account which were unquestionably the funds and property of Wilhelmsen. These were expended in behalf of Wilhelmsen to pay all expenses for the soliciting and the handling of the cargo and passengers in United States ports. One of the items of those expenses, payable out of the special account, was a payment to the master for advances against wages of the crew, including the wages of this plaintiff. The conclusion is inevitable that Wilhelmsen’s money paid the wages of the crew.

This leaves the final test — whose initiative and judgment chose the route and the ports? In Cosmopolitan Co. v. McAllister (supra) it was the ship’s owner which supplied that initiative and judgment. In the case at hand, except for the reservation of authority by the owner to change general routes, it was, in great measure, the initiative and judgment of Barber which governed the routes and ports, at least while the ship was in United States waters. In this regard the cases are dissimilar. But, though Barber would decide whether there was sufficient cargo to warrant a call at a particular port, employed subagents for the handling of freight at other United States ports, arranged for towage, pilotage, Coast Guard notification, tugs, stevedores, and advised shippers and agents when and where to deliver and accept cargo, and expedited all of these services, these tasks no longer subsisted when the Turandot was in the waters off Hong Kong. For when the ship was on its out voyage, ultimately bound for Jakarta, making intervening stops at various foreign ports, Barber’s initiative and judgment, relative to its choice of routes and ports, were no longer a factor. In those waters, Wilhelmsen’s foreign general agents [171]*171were in command and they alone, upon similar financial arrangements, took up like services in the foreign ports into which the Turandot was heading.

The contract between Wilhelmsen and Barber, while it referred to all ships owned by Wilhelmsen and did not make specific mention of the Turandot, is significant (see Cosmopolitan Co., supra, p. 790). True, the language is not controlling and we must look to the degree of control exercised and operative under the agreement (Romero v. Garcia & Diaz, 286 F. 2d 347, 350). But Barber was not authorized to and did not exceed the specific duties and obligations set out in the agreement to be performed by it and its subagents. Moreover, paragraph Fifth ” denies to Barber any

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57 Misc. 2d 167, 292 N.Y.S.2d 155, 1968 N.Y. Misc. LEXIS 1409, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gaete-v-barber-steamship-lines-inc-nysupct-1968.