Georgia-Pacific Corporation v. Motorship Marilyn

331 F. Supp. 776, 1971 U.S. Dist. LEXIS 11501
CourtDistrict Court, E.D. Virginia
DecidedSeptember 27, 1971
DocketCiv. A. 161-69-N
StatusPublished
Cited by2 cases

This text of 331 F. Supp. 776 (Georgia-Pacific Corporation v. Motorship Marilyn) is published on Counsel Stack Legal Research, covering District Court, E.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Georgia-Pacific Corporation v. Motorship Marilyn, 331 F. Supp. 776, 1971 U.S. Dist. LEXIS 11501 (E.D. Va. 1971).

Opinion

MEMORANDUM

WALTER E. HOFFMAN, Chief Judge.

The cargo owner, Georgia-Pacific Corporation, filed this action to recover damages sustained to cargo stowed in M/V MARILYN L, a vessel owned by Elvapores, Inc., 1 and time-chartered to Evans Products Company (charterer), with the charterer’s operating agent being Retía Steamship Company. In answers to interrogatories, Georgia-Pacific summarized its claim for loss and damage at $65,112.16, plus interest from the date of landing.

As the trial date approached the charterer effected a settlement with the cargo owner in the sum of $52,500.00, applying $29,655.55 from funds in escrow and leaving $6,509.75 in escrow to be credit *778 ed toward the claim of Evans Products Company; the latter having also owned cargo which was damaged or lost aboard the vessel. The escrow fund was created by repackaging certain individual and broken sheets of lauan plywood, loaded at the ports of Inchon and Pusan, Korea, the total salvage being $36,365.31. All parties agree that the settlement was fair and reasonable, and that the apportionment of the escrow funds is likewise fair and reasonable. The issue of ultimate damage was reserved.

The charterer, having settled the claim of the cargo owner, now seeks reimbursement, in whole or in part, from the shipowner, Elvapores, Inc.

The charterer contends that the shipowner is responsible, in whole or in part, for the damage and loss of 191 crates of plywood consigned to Georgia-Pacific and 43 crates consigned to the charterer. During February 1969, at Inchon and Pusan, 667 crates consigned to Georgia-Pacific and 867 crates consigned to Evans Products Company were loaded aboard the vessel in apparent good order and condition. Upon discharge at San Diego, California, on March 18, 1969, the damage and loss to the respective consignees was discovered. 2 The damaged cargo was-stowed in the No. 1 and No. 6 hatches of the vessel. The “missing cargo” was lost by reason of total destruction and, therefore, we treat the damage and loss in the same light.

The Charter Party between the charterer and shipowner provides the starting point in this controversy. While it is on a government form approved by the New York Produce Exchange, it contains several modifications and additional clauses. Interpreting various clauses of a charter party, especially when supplemented or modified, is admittedly a difficult task. As Judge Hand said in Farr v. Hain S. S. Co., 121 F.2d 940, 945 (2 Cir., 1941):

“Courts have again and again observed the curious, often the fantastic, incongruities in charter-parties, bills of lading and insurance policies, composed, as they so often are, of a motley patchwork of verbiage thrown together apparently at random, often in unfamiliar diction three hundred years old. Particularly in a document meant to do service in varying situations each word of such a discordant medley need not be made to count as we seek to make all the words count of carefully prepared contracts drawn for a particular occasion.”

The clauses of the Charter Party to which we direct our attention are—

Clause 8 as modified by Clause 51(1): That the Captain shall prosecute his voyages with the utmost despatch and shall render all customary assistance with the ship’s crew and boats. The Captain (although appointed by the Owners), shall be under the orders and directions of the Charterers as regards employment and agency; and the Charterers are to load, stow, trim and discharge the cargo at their expense.” (Note: The addendum eliminates the words “under the supervision of the Captain” following the word “expense.”)
Clause 41 provides:
“Charterers are to load, stow, trim and discharge all cargoes in the way required by the Master for securing seaworthiness, safe trim and stress of the vessel when in port and when proceeding between ports and berths.”

Clause 51(2) is interlocked with Clause 41 and specifies:

“The Master shall supervise the loading, stowing, trimming, and discharging of cargo only in the respects set forth in Clause 41 and in so doing he shall act on behalf of Owners.”
Clause 51(3) proscribes:
“Owners shall have toward Charterers, with respect to cargo carried on board, all of the obligations and all of the exemptions from liability of a car *779 rier contained in Section 3(1), 3(6) and 4 of the Carriage of Goods by Sea Act of the United States approved April 16, 1936, and in Section 3(2) of said Act except as to loading, stowage and discharge of cargo and handling in the course thereof.”
Finally, Clause 51(5) states:
“Charterers shall indemnify, hold harmless and defend Owners and the vessel against any and all loss, claims, demands, suits and expenses arising or resulting from damage to or loss of cargo. Owners shall reimburse Charterers for any and all damages and expenses, including legal fees, reasonably incurred by Charterers by virtue of this indemnity agreement when, and to the extent, said damages and expenses arise or result from breach by Owners of their obligation to Charterers under this Charter, including the obligation to furnish and maintain seaworthy winches, booms and other deck equipment * * *.” (Note: As between the Owners and Charterers, the arbitration requirement under Clause 17 is rendered inapplicable in the remaining portion of Clause 51(5).)

Since the cargo owner is no longer a party to the action, we believe that the burden rests upon the Charterer, Evans Products Company, to establish by a fair preponderance of the evidence that the damage to the plywood was occasioned by a “breach by Owners [shipowner] of their obligations to Charterer under this Charter.”

The basis of the charterer’s claim against the shipowner rests upon three grounds. Initially it is stated that the ship’s master breached the charter party by selecting a route and maneuvering his vessel in an improper manner. Then, too, inadequate shoring' was placed in the void spaces of the cargo when the plywood was loaded in South Korea, during which time the vessel’s captain, chief officer and others were aboard. Lastly, allied to some extent with the improper shoring, the charterer contends that the metacentric height of the vessel was such that the weight distribution should have been increased which could have been accomplished by additional ballasting.

The MARILYN L is a six-hatch bulk carrier of 14,800 gross tons, 550 feet, 6 % inches in length, 75 feet in breadth, with a depth of 48 feet, 3]4 inches. This was the vessel’s first voyage as a general cargo carrier as she had previously been used as a bulk cargo carrier. At all pertinent times, the officers and members of the crew were employed by Elva-pores, Inc., the shipowner. After loading at Osaka, Japan, Inchon and Pusan, the vessel made a stop at Yokohama, Japan, departing March 3, 1969, and arriving at San Diego on March 18, 1969.

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Bluebook (online)
331 F. Supp. 776, 1971 U.S. Dist. LEXIS 11501, Counsel Stack Legal Research, https://law.counselstack.com/opinion/georgia-pacific-corporation-v-motorship-marilyn-vaed-1971.