In re Smith-Rice No. 4

323 F. Supp. 44, 1968 U.S. Dist. LEXIS 12793
CourtDistrict Court, N.D. California
DecidedJuly 15, 1968
DocketNos. 29525, 29526
StatusPublished
Cited by1 cases

This text of 323 F. Supp. 44 (In re Smith-Rice No. 4) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Smith-Rice No. 4, 323 F. Supp. 44, 1968 U.S. Dist. LEXIS 12793 (N.D. Cal. 1968).

Opinion

MEMORANDUM OPINION FINDINGS OF FACT AND CONCLUSIONS OF LAW

WOLLENBERG, District Judge.

This is a petition for exoneration from or limitation of liability brought pursuant to 46 U.S.C. § 183 et seq. While several employees of petitioner Smith-Rice Company were working on a 30-ton Colby crane, said crane collapsed backwards causing their deaths, giving rise to various claims against petitioners, which are now made the subject of this petition. The petition alleges petitioners to be without fault, and in the event that they are found liable, they ask that their liability be limited to the value of the respective barges which were engaged in the work performed on the crane on the day of the accident. Claimants have alleged liability based upon unseaworthiness and general negligence, and ask that the petition for limitation of liability be denied.

This matter came on for trial on February 5, 1968 and lasted six trial days. After considering the evidence presented, the memoranda filed by respective counsel, the proposed findings of fact and conclusions of law lodged by respective counsel, and the Court being fully advised in the premises, it now makes the following findings of fact and conclusions of law:

FINDINGS OF FACT

1. Petitioners Smith-Rice Company, Smith-Rice Derrick Barges, Inc., Smith-Rice Barge No. 1 Company, Smith-Rice Barge No. 2 Company, Smith-Rice Barge No. 3 Company and Smith-Rice Barge No. 4 Company are corporations which have been sued in certain State Court proceedings, in which claims for damages are made based upon allegations that Petitioners were the owners of two derrick barges, Smith-Rice No. 4 and Derrick Barge No. 18, and that the Petitioners warranted the seaworthiness of such barges and breached their warranties and negligently operated such barges, in connection with the collapse of a certain Colby crane, on January 4, 1965. It was stipulated by all parties during trial that Petitioners Smith-Rice Derrick Barges, Inc., Smith-Rice Barge No. 2 Company and Smith-Rice Barge No. 3 Company be exonerated.

2. The petitioners herein are Smith-Rice Company (herein called “Smith-Rice”), Smith-Rice Derrick Barges, Inc. (herein called “Derrick Co.”), Smith-Rice Barge No. 1 Company (herein called “No. 1 Company”), Smith-Rice Barge No. 2 Company (herein called “No. 2 Company”), Smith-Rice Barge No. 3 Company (herein called “No. 3 Company”), and Smith-Rice Barge No. 4 Company (herein called “No. 4 Company”).

3. Each of said petitioners is a separate and independently-created corporation, organized and existing under and by virtue of the laws of the State of California.

4. Smith-Rice is engaged in the business, among other things, of the marine transport of cargo.

5. Companies Nos. 1, 2, 3 and 4 are, respectively, owners of barges and equipment thereon which are sometimes leased out to various other concerns for use in marine transportation under bare-boat charter. At other times, the barges are supplied to Smith-Rice for its use in specific business ventures wherein Smith-Rice is operating agent of the barge-owning companies. The latter situations are governed by a standing contractual arrangement whereby Smith-Rice is compensated for its performance [47]*47of services by receiving a stipulated portion of the net profits of the venture, and the remaining profit is paid over to whichever barge-owning company or companies supply the barges used in such venture.

6. The barges Smith-Rice No. 4 and Derrick Barge No. 18 were, at all material times, substantially identical, non-seagoing, steel crane barges of 691 gross tons, about 120 feet long and 60 feet wide, which were not self-propelled but were moved only by being towed to and from job sites where they might be needed. Title to Smith-Rice No. 4 was held by Petitioners Smith-Rice Barge No. 1 Company and title to Derrick Barge No. 18 was held by Petitioner Smith-Rice No. 4 Company and each of the barges was, at all material times, in the possession of and being operated and controlled by Petitioner Smith-Rice Company.

7. The Claimants in these proceedings are, respectively, the alleged heirs at law of William S. Carroll, Arthur Joseph Cooke, III, Matthew Kole, James Morgan, and Stanley Sipes, all of whom lost their lives in the collapse of the Colby crane, on January 4, 1965, at Alameda, California. The claim with respect to decedent William S. Carroll has previously been compromised and a Consent Judgment has been entered upon the compromise. Claimants’ decedents, who lost their lives in the collapse of the Colby crane, were employees of Petitioner Smith-Rice Company.

8. Edgar Raymond Rice (herein called “E. R. Rice”) holds the following offices and positions with the said companies: Smith-Rice, formerly Assistant Secretary and now Vice-President, and also General Manager; Companies Nos. 1, 2, 3 and 4, Assistant Secretary and General Manager.

9. In each of said companies the mother of E. R. Rice, Mrs. Mathilda M. Rice, is President.

10. All of the outstanding shares of stock of Smith-Rice and Companies 1, 2, 3 and 4 are owned by the Charles N. Rice Company, a separate and independent corporation, of which Mathilda M. Rice is President and E. R. Rice is Vice-President.

11. All of the outstanding stock of Charles N. Rice Company is held as follows: 417 shares are held between Mathilda Rice, E. R. Rice, the sister of E. R. Rice (Patricia Rice Brandon), the Charles N. Rice Irrevocable Trust (for the benefit of E. R. Rice and Patricia Rice Brandon), and the Charles N. Rice Revocable Trust (for the benefit of Mathilda M. Rice); 10 shares are held by George Mitchell, who is also employed by Smith-Rice as its Supervising Engineer, and is the Responsible Managing Employee of that Company for purposes of state licensing; the remaining 73 shares authorized to be issued are held as treasury stock.

12. All of the foregoing facts are found to have been true throughout the month of December, 1964 (when the project hereinafter described was entered into), on January 4, 1965, when the herein.mentioned accident occurred, and on or about August 19, 1965, when the petitions for exoneration from or limitation of liability were filed herein.

13. The land-based crane involved was a gantry crane, of 30-ton capacity, with a boom about 75 feet long, manufactured by the Colby Crane & Manufacturing Co. The crane was located in the Moore Drydock Yard, in Alameda, California, adjacent to the Oakland Estuary, and was designed to operate upon rails extending at one end onto a pier constituting an extension of the land in the yard at the edge of the Estuary. Prior to the casualty the crane had been sold by the owners of the yard in ’which it stood to Pacific Coast Engineering Company, which had a yard also adjacent to the Oakland Estuary.

14. Under date of December 11, 1964, Smith-Rice contracted, at a price of $6,-850, with Pacific Coast Engineering Company (hereinafter referred to as “Paceco”) to furnish labor and equipment necessary to dismantle and transport a certain 30 ton Colby crane from [48]*48its location at Pacific Ship Repair, Inc., Alameda, California, to Paceco’s yard approximately one mile distant.

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323 F. Supp. 44, 1968 U.S. Dist. LEXIS 12793, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-smith-rice-no-4-cand-1968.