Gibbs v. Grace Bros.

639 F. Supp. 1128, 1986 U.S. Dist. LEXIS 22757
CourtDistrict Court, D. Hawaii
DecidedJuly 15, 1986
DocketNos. 83-0279, 83-0859, 83-1206, 83-1227, 83-1232 and 83-1268
StatusPublished

This text of 639 F. Supp. 1128 (Gibbs v. Grace Bros.) is published on Counsel Stack Legal Research, covering District Court, D. Hawaii primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gibbs v. Grace Bros., 639 F. Supp. 1128, 1986 U.S. Dist. LEXIS 22757 (D. Haw. 1986).

Opinion

FINDINGS OF FACT AND CONCLUSIONS OF LAW

PRICE, District Judge.

These consolidated actions came on for trial (Phase I) between July 16, 1985, and August 2, 1985, pursuant to order of this Court of July 16, 1985, which bifurcated the trial issues. In this Phase I, the liability issues for the DTB-40 fire, as framed in the complaint and counterclaim in Admiralty 83-0279, include the legal responsibility, if any, of plaintiffs Young Brothers, Limited and Dillingham Tug & Barge Corporation on the one hand, and defendants Grace Brothers, Limited, on the other hand, to each other and/or to other cargo claimants in these consolidated actions.

In their complaint (In Admiralty 83-0279), filed herein on March 11, 1983, plaintiffs seek damages from cargo shipper defendant Grace Brothers, Limited (hereafter Grace), arising from a November 20, 1982 fire aboard the barge DTB-40, while under tow of the tugboat Mikioi during a voyage from Honolulu, Hawaii to Nawiliwili, Kauai. Plaintiffs claim that the fire was caused by defendant’s hot asphalt pontoons which defendant shipped aboard DTB-40 on the subject voyage. Plaintiffs’ claims are based on negligence, strict liability and breach of warranty. In its answer of April 21, 1983, Grace sets up the defenses of: (1) failure to state a claim upon which relief may be granted; (2) negligence of the carrier Young Brothers and the tower Dillingham Tug & Barge Corporation (hereafter DT & B); (3) assumption of risk by the carrier and tower; and (4) consent by the carrier and tower to the shipment of asphalt pontoons.

Grace filed a counterclaim in this action on April 21, 1983 which seeks damages against plaintiffs for loss of its asphalt pontoons and punitive damages based upon theories of negligence and breach of a contract of cargo insurance. In this Phase I of the trial, the Court considers all of the foregoing claims except defendant’s claim for breach of a contract of insurance, which shall be considered in Phase II of the trial of these actions. Cargo claimants in the other consolidated admiralty actions have agreed to be bound by the judgment of this Court resulting from the trial of Phase I insofar as which, if any, of Grace Brothers, Young Brothers and DT & B are liable to them for damages provable in the Phase II trial of these actions.

Based upon the evidence adduced at Phase I of the trial, the Court makes the following Findings of Fact and Conclusions of Law:

FINDINGS OF FACT

1. The plaintiffs, Young Brothers, Limited (hereinafter “YB”) and Dillingham Tug & Barge Corporation (hereinafter “DTB”), are subsidiary companies affiliated with Dillingham Maritime Pacific. The plaintiffs Caryl Antony Vaughn Gibbs (hereinafter “Gibbs”) and Orion Insurance Company (hereinafter “Orion”), are the insurance underwriters for YB and DTB.

2. The defendants Grace Brothers, Limited (hereinafter “Grace”) are asphalt contractors operating in the State of Hawaii and elsewhere in the Mid-Pacific area.

3. All of the events detailed by these findings of fact took place on the land area which constitute the District of Hawaii or the navigable waters adjacent to such land area.

4. YB operates barges that convey freight from YB’s terminal and docks situated in the City of Honolulu, on the island of Oahu, to the other islands of Hawaii (hereinafter referred to as the “outer islands”) constituting the District of Hawaii. On the occasion giving rise to this litigation, the barge known as the YB-40 was owned and operated by YB, and was being towed by a tug owned by DTB, known as the Mikioi. At some point prior to the shipment in question, and not definitely fixed by the evidence, YB began assem[1130]*1130bling freight consigned to it for shipment to the outer island of Kauai.

5. On November 19, 1982, after incoming freight had been off-loaded, YB’s personnel began loading the assembled freight onto the YB-40 for shipment to Nawiliwili Harbor, Lihue, Kauai. This voyage will hereafter be referred to as “Voyage 53”.

6. In preparation for the on-loading, YB’s personnel developed a freight list and hazardous cargo manifest. The load list (plaintiff’s Exhibit 42) is simply a list of the separate items that had been assembled for carriage by the YB-40 to its destination on Kauai. The hazardous cargo manifest (plaintiff’s Exhibit 28) indicates that the following hazardous cargo was on-loaded for shipment on the YB-40: 1 cage of mixed cylinders of liquified propane; 16 cylinders of acetylene; 2 cylinders of methylaostylene propadiene; 10 cylinders of monochlorodifluoroesethane; 5 cylinders of compressed nitrogen; 1 cylinder of compressed banana gas; 1 cylinder of compressed carbon dioxide liquified; 24V2 pint cans of liquid cement; 24-1 pint cans of liquid cement; 3 cartons of liquid cleaning compound; 32 packages of corrosive materials; 3 cartons of 60 each of fuel system cleaner; 8 gallons of PVC cement; 1 bottle of chloroform; 1 skipload of acetylene; 1 electric storage battery; 1 carton of flammable solids; 93 cartons of petroleum lubricating oil. These items were stowed on board during the day of November 19, 1982, along with the rest of the general cargo.

In addition, a substantial number of automobiles were loaded, each with an undetermined amount of gasoline in each tank and its electrical systems intact.

From the freight list, Segundo Facuri (hereinafter Facuri), the loading supervisor for YB, prepared a load plan which he distributed to the YB employees engaged in on-loading the freight to the barge as a general guide for loading the barge. The loading plan was not followed precisely, but is merely an outline as to the general location where Facuri desired the various items of freight to be placed.

7. Normally the freight is assembled in YB’s warehouse and transported to the dock for on-loading. All of this freight, of course, is listed on the freight list which is used by Facuri in making up the loading plan. In addition, some freight is brought directly to the dock during the on-loading process and is never made a part of the pre-planned loading plan. One cannot accurately fix the position of any cargo on the barge from the loading plan.

8. Facuri does not receive a copy of the hazardous cargo manifest. He relies solely on the labels attached to the freight itself. Facuri is mainly concerned with cylinders used to ship compressed gasses and is generally familiar with the various labels employed on such cylinders. Facuri had never received any special instructions regarding the loading or handling of hazardous cargo.1

Neither was the master of the tug Mikioi furnished with a copy of the hazardous manifest.

Facuri looks at the hazardous cargo in the same manner as general cargo, i.e., that which will likely sustain weather damage is loaded under the deck house; that which will probably not be damaged by weather is loaded aft on open deck.

9. Among the items shipped on the YB-40 on the voyage in question were 16 pontoons of hot asphalt contained in 4 flat racks. Because of the weight of the flat racks, they were placed on or near the midline of the barge (a line approximately down the middle of the barge stretching from the bow to the stern) and in the open deck area just aft of the deck housing that covered the approximate forward half of the barge. This cargo was not listed on [1131]*1131the hazardous cargo manifest. Grace was the shipper of this cargo.

10.

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639 F. Supp. 1128, 1986 U.S. Dist. LEXIS 22757, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gibbs-v-grace-bros-hid-1986.