Hojgaard & Schultz v. Transamerican Steamship Corp.

590 F. Supp. 916, 1985 A.M.C. 2129, 1984 U.S. Dist. LEXIS 14857
CourtDistrict Court, S.D. New York
DecidedJuly 18, 1984
Docket81 Civ. 3804 (KTD)
StatusPublished
Cited by6 cases

This text of 590 F. Supp. 916 (Hojgaard & Schultz v. Transamerican Steamship Corp.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hojgaard & Schultz v. Transamerican Steamship Corp., 590 F. Supp. 916, 1985 A.M.C. 2129, 1984 U.S. Dist. LEXIS 14857 (S.D.N.Y. 1984).

Opinion

OPINION

KEVIN THOMAS DUFFY, District Judge.

This is an action brought under the Carriage of Goods by Sea Act (“COGSA”), 46 U.S.C. § 1300 et seq., to recover for damage to a shipment of “knock down” and “stand up” or “erected” prefabricated housing units and “associated equipment,” Complaint 11 6, that were transported from Baltimore, Maryland to Jeddah, Saudi Arabia by defendants aboard the M/V Regal Sky (“Regal. Sky”), owned by defendant Transamerican Steamship Corporation (“Transamerican”) and chartered by defendant Zodiac Marine, Inc. (“Zodiac”). I held a nonjury trial on April 9 and 10, and on May 18, 1984. The following shall constitute my findings of fact.

Plaintiffs Hojgaard & Schultz A/S (“Hojgaard”) and Bruun & Sorensen A/S (“Bruun”) are Danish construction companies engaged in a joint venture involving the purchase and erection of a construction camp in Saudi Arabia. Danac, Inc. (“Danac”), acting as agent for plaintiffs, contracted with International Module Corporation (“IMC”) for the purchase of a complete “camp” consisting of 26 erected units and 101 knock down units. The latter units were to be stacked on top of each other in groups of three during transportation to Saudi Arabia. See Plaintiff Exh. 2; Tr. 39 (testimony of John Lindsay).

By letter dated February 24, 1978, a booking note for plaintiffs’ cargo was forwarded to Transamerican for signature. It provided in part: “4. The goods to be loaded Under deck Bills of Lading-Under Deck/On Deck” with “On Deck” crossed out. Defendants’ Exh. P. However, by letter dated March 7, 1978, Stephen H. Busch of Transamerican informed the Marine Freight Company, which acted as agent for Transamerican in booking plaintiffs’ cargo, that the booking note was revised “to restore clause 4 to its original form, i.e., with no deletions.” Id. Thus, the executed booking note recited that the “goods [were] to be loaded Underdeck Bills of Lading Under Deck/On Deck.” Id. *919 The booking note was then forwarded to the freight forwarder, Defendants’ Exh. H, who forwarded it to Danac, Defendants’ Exh. I. The president of Danac, Bent Nielsen, signed the note and returned the original to the freight forwarder and a copy to plaintiffs. See Defendants’ Exh. J.

Pursuant to contract, on April 10, 1978, IMC delivered the cargo FOB Baltimore, Maryland where it was to be loaded aboard the Regal Sky from flatbed trucks by IMC employees. Zodiac, as charterer, operated the Regal Sky between Baltimore and Jeddah. Plaintiffs’ Exh. 41 (Deposition of Bent Nielsen) at 13-14, 27-28.

Before the vessel’s arrival, on April 10, 1978, Transamerican’s port captain, John Lindsay, went to the pier in Baltimore where he saw the prefabricated housing that were to be loaded aboard the vessel. Tr. 38-39. At trial, Lindsay described the knock down units as “three homes laid flat, stacked in units of three ... held together by a cross frame on the ends.” Tr. 39. The base of the three stacked units was a steel frame. Id. Captain Lindsay testified that when he arrived at the pier on April 10, 1978, he saw that “[s]ome of the knock down units had been — were listed over and weren’t in good shape [and that the] frames were broken and buckled.” Tr. 39.

On April 11, 1978, a survey of the knock down and erected units was performed at Pier 4 in Baltimore, Maryland. Plaintiffs’ Exh. 2 at 1. The surveyors reported that IMC had supplied a device to be used by the stevedores in moving the units from the flatbed trucks to the container lot but that after moving approximately eleven units from the flatbed on the first day, March 23, 1978, the device was abandoned and two forklift trucks were utilized to lift the units. Id.; Plaintiffs’ Exh. 41 at 54. Apparently, however, because the erected units were packed with appliances and other goods, stress was placed on the center of the units. Plaintiffs’ Exh. 2 at 2; see Tr. 46, The surveyors reported that approximately thirteen of the units were damaged from stevedore handling and the use of forklifts. Plaintiffs’ Exh. 2 at 14.

On April 11, 1978, the vessel arrived. Lindsay testified that Bent Nielson of Danac assured him that repairs would be made on the units that were damaged. Tr. 42. Such repairs were ultimately made and plaintiffs withheld from IMC the cost of the repairs and depreciation. See Defendants’ Exh. BB. The erected units were stowed on deck and the knock down units were stowed partially under deck and partially on deck. Plaintiff’s Exh. 5 (stowage plan); Tr. 45; see also surveyors report, Plaintiff’s Exh. 2 at 14 (“[0]f the 57 K/D and Erected Modular Units loaded, only 14 of the K/D Units went underdeck.”)

In loading the units aboard the Regal Sky, the Baltimore stevedores used a spreader bar, slings and a crane. Tr. 45. Lindsay testified that the slings were annexed to the unit “a few feet from each end.” Tr. 46; see also Tr. 131 (testimony of Ronald Gentzel). With some difficulty, loading was completed on April 13, 1978, at approximately 8:00 p.m. Tr. 47. The Baltimore surveyors noted in their report and the photographs taken by one of the surveyors disclose that some of the units were damaged during the loading process. See Plaintiffs’ Exh. 2 at 14; Plaintiffs’ Exh. 4.

As soon as the Regal Sky arrived in Jeddah on May 9, 1978, a cursory inspection was performed of the cargo on board. No photographs, however, were permitted by the Saudi officials while the cargo was in the port area. See Plaintiffs’ Exh. 42 at 16. 1 In his deposition, Jorgen Vorsholt who in 1978 was Hojgaard’s project manager in Jeddah, stated that the day after the vessel arrived in Jeddah he went on board and inspected the cargo. Plaintiffs’ Exh. 42 at 10. He testified: “[w]e saw several units which had salt water, we saw several walls which had been displaced, we saw *920 windows which were broken.” Id. When the units were discharged, Vorsholt stated, water poured from them. Id. A survey was performed at the port in Jeddah and the cargo was inspected again after it was transported to the construction site “sixty kilometers north of the discharge port.” Id. at 13.

The discharge of the Regal Sky was performed by stevedores at Jeddah Port known as Phelsinports from the Phillipines. Plaintiffs’ Exh. 17 at 3. 2 The stevedores in Jeddah attempted to discharge the cargo by using the vessel’s center crane; after abandoning the use of the crane, the stevedores used IMC’s spreader. Id. Apparently, because the stevedores had difficulty balancing the erected units, the discharge was time consuming. Id. at 4. Once the first unit was placed on the trailer, the surveyor noticed that a panel was dented, flashing was ripped and torn and the roof was bent. Id. The surveyor concluded that the “damage was relatively superficial but evidently caused by the chains linking the slings to the spreader.” Id.

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Bluebook (online)
590 F. Supp. 916, 1985 A.M.C. 2129, 1984 U.S. Dist. LEXIS 14857, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hojgaard-schultz-v-transamerican-steamship-corp-nysd-1984.