Hale Container Line, Inc. v. Houston Sea Packing Co.

137 F.3d 1455, 1999 A.M.C. 607, 1998 U.S. App. LEXIS 7097, 1998 WL 152602
CourtCourt of Appeals for the Eleventh Circuit
DecidedApril 3, 1998
Docket95-3201, 95-3296
StatusPublished
Cited by27 cases

This text of 137 F.3d 1455 (Hale Container Line, Inc. v. Houston Sea Packing Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hale Container Line, Inc. v. Houston Sea Packing Co., 137 F.3d 1455, 1999 A.M.C. 607, 1998 U.S. App. LEXIS 7097, 1998 WL 152602 (11th Cir. 1998).

Opinion

CLARK, Senior Circuit Judge:

Defendant Houston Sea Packing Co., Inc. (“Houston”) appeals the district court’s judgments against it in favor of plaintiffs Hale Container Line, Inc. (“Hale”) and Societe Guayanaise De Conseils Immobiliers (“SO-GUCI”). SOGUCI cross-appeals from the judgment against it in favor of Hale, the National Cargo Bureau (“NCB”), and the Alexander Hale and Liberty Trader in rem, and the amount of damages it was awarded against Hale.

I. BACKGROUND

In July 1989, Jean Pierre Porry, a representative of SOGUCI, contracted with Project Logistics and Transportation, Inc. (“Project Logistics”) to arrange for the transport of 210 mobile homes from Tampa, Florida, to French Guyana. 1 A Project Logistics representative contacted Craig Firing of Meridian Shipping Inc. (“Meridian”), a shipping agency. Firing contacted Don Jones, the owner of Houston concerning the transportation of the mobile homes and the construction of a stanchion assembly to hold the homes during shipment. 2 Jones gathered information to determine the method and costs of transporting the homes, and contacted London Offshore, a marine surveying company that approved vessels for hauling cargo, to assist him. On July 31, 1989, Meridian and Houston entered into a “Conlinebooking” Liner Booking Note 3 with Project Logistics for the shipment of 210 mobile homes on two voyages. The Booking Note named the “carrier” as “Meridian Ship/Houston Sea-Pack,” the “merchant” or “shipper” as “Project Logistics and Transportation, *1461 Inc.,” and the “vessel” as “Tug Barge(s) TBN.” On August 4, 1989, Project Logistics and Florida Mercury Export, Inc., 4 as SO-GUCI’s representative, executed a Booking Note which named the “carrier” as “Project Logistics,” the “merchant” or “shipper” as “Florida Mercury,” and the “vessels” as “Tug: ‘Carol Hale’ Barge: ‘Liberty Trader.’ ” Both booking notes gave the time for shipment as “September 1989.”

Houston contacted design engineer Arthur Tertyshny of Design Research for stress analysis of the stanchion system. Tertyshny provided drawings and calculations pertaining to a system containing three tiers of mobile homes.

On August 28, 1989, Hale, as “Owner,” and Houston, as “Charterer,” executed a Time Charter 5 in which Hale chartered the tug “Alexandra Hale” and barge “Liberty Trader” to Houston. The Time Charter provided for payment as follows:

CHARTER HIRE PAYABLE: $100,000 wired to Owner’s bank prior to departure from Baltimore. $150,000 wired to Owner’s bank no later than 72 hours after departure from Tampa to South America on first and any successive trips, adjusted to projected charter hire to be earned. 6

The Time Charter provided:

4. PAYMENT AND DEFAULT: In the event Charterer shall fail to pay hire or other money due hereunder, promptly on the date thereof, or fail to comply with any of the terms, provisions or conditions hereof, ... Owner shall have the option of terminating this agreement and Charterer shall forthwith surrender possession of said vessel to Charterer; ... and Charterer shall continue to remain liable for all sums then due hereunder, as well as for any and all other damages suffered by Owner. 7
& * * * *
12. LIENS: ... Owner shall have a hen on all cargoes and subfreights for all charter payments and general averages. 8
‡ ‡ ‡ ‡ ‡
16. Owner and Charterer acknowledge that Charterer plans to add stanchions to the Liberty Trader. In consideration thereof, Charterer shall be fully responsible for, and fully indemnify Owner for, ah claims, liability, costs, or expenses of any kinds, including attorney fees, arising in any way or degree from addition of stanchions by Charterer to the Liberty Trad-er____ 9

The Alexandra Hale and Liberty Trader arrived in Tampa, Florida on September 6, 1989. Pursuant to the Time Charter, Houston arranged for an inspection and survey of both vessels. Houston discovered that the Liberty Trader had a breakwater on the bow that would displace five mobile homes on the bottom bow tier. Houston then decided to construct a fourth tier at the aft end of the barge to accommodate the displaced mobile homes. 10

Pursuant to the Booking Note entered into between Houston and Project Logistics, Pro *1462 ject Logistics was responsible for providing stevedoring services for the loading of the mobile homes onto the barge, securing and lashing the homes onto the stanchion system, and insuring that the nuts and bolts were securely fastened and tightened. 11

On September 18, 1989, James McElroy, Project Logistics representative, and Harry C. Anderson, Master of the M/V Alexandra Hale, executed a Liner Bill of Lading 12 in Tampa, Florida, and Meridian, as agent, executed a Liner Bill of Lading in Baltimore, Maryland, for the first shipment of the mobile homes. Each Bill of Lading contained a General Paramount Clause, providing that the Carriage of Goods by Sea Act applied, and included a list of terms and conditions, including:

5. The Scope of the Voyage.
As the vessel is engaged in liner service the intended voyage shall not be limited to the direct route but shall be deemed to include any proceeding or returning to or stopping or slowing down at or off any ports or places for any reasonable purpose connected with service including maintenance of vessel and crew.
* * * * * *
9. Live Animals and Deck Cargo shall be carried subject to the Hague Rules ... with the exception that notwithstanding anything contained in Clause 19 the Carrier shall not be liable for any loss or damage resulting from any act, neglect or default of his servants in the management of such animals and deck cargo.
******
13. Delay.
The Carrier shall not be responsible for any loss sustained by the Merchant through delay of the goods unless caused by the Carrier’s personal gross negligence. ... 13

The first shipment of homes departed on board the barge from Tampa on September 23, 1989. However, after the vessels departed, the Tug began experiencing engine problems and had to return to Tampa for repairs. After the repairs were completed, the vessels again left Tampa.

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Cite This Page — Counsel Stack

Bluebook (online)
137 F.3d 1455, 1999 A.M.C. 607, 1998 U.S. App. LEXIS 7097, 1998 WL 152602, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hale-container-line-inc-v-houston-sea-packing-co-ca11-1998.