Garcia & Diaz, Inc. v. Trans World Refining Corp.

14 A.D.2d 76, 217 N.Y.S.2d 132, 1961 N.Y. App. Div. LEXIS 9557

This text of 14 A.D.2d 76 (Garcia & Diaz, Inc. v. Trans World Refining Corp.) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Garcia & Diaz, Inc. v. Trans World Refining Corp., 14 A.D.2d 76, 217 N.Y.S.2d 132, 1961 N.Y. App. Div. LEXIS 9557 (N.Y. Ct. App. 1961).

Opinions

Bergan, J.

Plaintiff operates Piers 15 and 16 on the East River under revocable permits issued by authority of the City of New York as public owner of the wharves. Excessively long occupancy of the piers by goods placed on them by the defendant for the purpose of loading on shipboard having occurred, the parties contracted for a charge to be paid after a specified date by the defendant for continued occupancy of the piers by the goods.

The charge thus agreed upon has been found reasonable at Special Term upon a record which would sustain reasonableness, and judgment has been directed accordingly for plaintiff; the question here is whether the parties could lawfully have agreed on such a reasonable charge which the plaintiff might enforce by this action.

Since plaintiff claims no title to the piers, its rights in respect of their usage and its power to control their occupancy by cargo goods must be found in the terms of its permits from the city and in the statutory frame and administrative regulations upon which the permits rest.

Plaintiff’s permits, one for each pier, were issued pursuant to subdivision b of section 707 of the New York City Charter. This section, headed “Leases of wharf property,” provides that the Commissioner of Marine and Aviation may “ grant temporary permits terminable at will ” to “ use and occupy ” any wharf property in the Port of New York as defined in section 706 “ belonging to ” the city.

It seems reasonable to think that the difference between a lease of “ any wharf property ” (§ 707, subd. a) and a permit “ to use and occupy ” wharf property under subdivision b is merely a matter of duration of time and of the right of the city to terminate the special privilege on the wharf. The terms of plaintiff’s licenses were that it would “use said property for steamship operations ” of steamship companies for which the plaintiff acted as agents.

Whether Piers 15 and 16 be regarded as “ public wharves ” in the sense that the title to them had been acquired by the city for the general purposes of the port and hence the city was fully in dominant legal control of how long the plaintiff’s rights should persist and how they should be exercised; or whether they be regarded as “ private wharves ” in the sense that a special private interest in them had been lawfully acquired by the plaintiff which for the moment had the hallmarks of title, [78]*78it seems clear that defendant had no right, as a member of the general public, to lay down its goods on these piers for the purpose of loading on board of steamships, or storage, or for its own convenience, without plaintiff’s consent.

This legal right of the plaintiff under its permits to exclude defendant from the piers requires that for the purposes of this controversy we must treat the piers as private wharves even though in some jural relations other than those asserted in this litigation between these parties, they may very well be regarded in legal theory as public wharves. Whatever the general contour of the public-private wharf problem may be, it seems to have no controlling significance on the narrow actualities of this lawsuit.

The public-private wharf problem is partly semantic. Judge Hough helped in the process of definition in The M. L. C. No. 10 (10 F. 2d 699) by noting that “ a wharf to which the public cannot resort” and “at which berths cannot be obtained” through the harbor authority “may well be called” private (p. 702).

In that case a dock company which had erected a wharf in the port on land under water conveyed by deed from the State of New York under restrictions which led the court to think that the dock company held “a species of franchise” from “the state of New York ” (p. 704) was held to be entitled to charge wharfage; but the court also held that the amount charged was subject to public regulation. In the same direction in respect of a liability arising from the condition of a private wharf to a member of the public, see Kafline v. Brooklyn Eastern Dist. Term. Co. (180 App. Div. 858, affd. 228 N. Y. 521).

There may, of course, be situations where the claims of the owners of private wharves must yield to public interests in the movement of commerce. One is by the demands of necessity, as, for example, where the wharf is the sole facility available in that part of navigable water. As to this Mr. Justice Bradley in Transportation Co. v. Parkersburg (107 U. S. 691, 699) was of opinion that it was open to question whether a private wharf might be maintained at all in such a situation (cf. Weems Steamboat Co. v. People’s Co., 214 U. S. 345, 358). Another is the reasonableness of the charge; and in this one aspect — the charge — the private wharf seems to be treated as something of a public utility. (See Townley, J., in Marine Lighterage Corp. v. Luckenbach S. S. Co., 139 Misc. 612.)

Decisional law, therefore, seems to suggest two principles: (a) that a special legal right in a wharf acquired by title, or [79]*79by lease or license from the owner of the title, carries with it the right to limit and control public usage of the facility, subject to paramount public regulation; and (b) that charges for the use of such a wharf must conform with the standards fixed by public authority.

No charges were fixed by the City of New York or by the present City Charter regulating storage of goods on wharves generally; nor was the subject provided in the licenses for these wharves particularly. On the other hand there was no prohibition against the charges here agreed upon; and the court at Special Term aptly commented that We search in vain for express or implied provisions in plaintiff’s permits prohibiting the charges sued for here. Nor do we find in the Rules and Regulations of the Department of Marine and Aviation any such prohibition.” (25 Misc 2d 604, 606.)

There remains the possibility that charges of the kind agreed upon are deemed prohibited, absent some express authorization; and in favor of this theory it must be conceded that the licenses from the city to the plaintiff certainly did not contemplate that these waterfront piers, vital to commerce, be used as warehouses. Further, and perhaps more important, the whole history of the development of the port by public authority negatives a purpose to permit it to be clogged up by storing goods in the waterfront wharves. To a very large extent, however, this is a matter between the city and its licensee; and there can be no doubt that a permit “ terminable at will” (§ 707, subd. b) left public control of the course of operations on these two piers wholly unrestricted.

We thus reach the vital center of this controversy. We think the charges agreed upon are sustainable, not because the licensee had the right to conduct warehouse or storage operations on the piers, but because the undue usage by defendant of the piers for which the charges have been agreed upon, were an incident to the purpose for which plaintiff was licensed to use the piers, i.e., for steamship operations, including by necessary implication, the placing, retention, protection and removal of goods on the piers in connection with those operations.

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14 A.D.2d 76, 217 N.Y.S.2d 132, 1961 N.Y. App. Div. LEXIS 9557, Counsel Stack Legal Research, https://law.counselstack.com/opinion/garcia-diaz-inc-v-trans-world-refining-corp-nyappdiv-1961.