Inland Oil & Transport Corp. v. Ashland Oil, Inc.

551 F. Supp. 856, 1982 U.S. Dist. LEXIS 16237
CourtDistrict Court, E.D. Kentucky
DecidedNovember 10, 1982
DocketCiv. A. No. C 80-0344 L(A)
StatusPublished
Cited by2 cases

This text of 551 F. Supp. 856 (Inland Oil & Transport Corp. v. Ashland Oil, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Inland Oil & Transport Corp. v. Ashland Oil, Inc., 551 F. Supp. 856, 1982 U.S. Dist. LEXIS 16237 (E.D. Ky. 1982).

Opinion

FINDINGS OF FACT AND CONCLUSIONS OF LAW

ALLEN, Chief Judge.

This case is submitted to the Court for decision following a non-jury trial. Plaintiff seeks damages in the total amount of $67,765.58, plus prejudgment and post-judgment interest. Its claim is that its Barge IOT 158 was damaged because of the defendants’ negligence in loading the cargo of petroleum products on February 6, 1980 while the barge was in the sole custody and control of the defendants at its terminal facilities on the Ohio River in the lower Louisville Harbor.

Barge IOT 158 was built in 1967 and before 1975 had ten covered compartments arranged in pairs for carrying petroleum products. In 1975, it was altered by adding two additional covered compartments bringing the total number to twelve, and the total length to 296.7 feet. Following its alteration, it was inspected and approved by the Coast Guard, and since 1975 has been used regularly for the transportation of petroleum products and without incident prior to which events lead to this lawsuit.

Barge IOT 158 arrived in Louisville at the Gulf Terminal on February 4, 1980 and was unloaded at that terminal by George Horsley, a licensed tankerman employed by Inland and by Jimmy Scott, Jr., a tanker-man employed by Apex Towing Company. No defects were noticed by Scott or Horsley as to the barge on February 4,1980, and the Coast Guard representative inspected the barge on February 5,1980 finding no structural defects in it.

On February 4, 1980, Gulf sent a telex message to Inland Oil instructing it to load compartments 1 and 2 with kerosene and 3 to 10 with No. 2 fuel oil. No instructions were given as to compartments 11 and 12, and no copy of the instructions was sent to plaintiff. Barge IOT 158 was delivered to defendant Louisville Refining Company in an empty condition on February 6, 1980. No defects were noticed in the barge at that time.

[858]*858The loading of the barge by the defendant companies began at 10:45 a.m. February 6th and was accomplished by placing No. 2 fuel oil into compartments 3 through 10 and Kerosene into compartments 1 and 2. Compartments 11 and 12 were left empty.

After the loading was completed on February 6, 1980, Horsley discovered a large bulge in the number 5 compartment of the barge. He informed Captain Conner of the M/V Lady Linda. Also tankerman Scott noticed the bulge when the barge was inspected in daylight. During the next day an additional bulge was discovered in other compartments of Barge IOT 158.

The barge was then taken to the Green-ville Shipping Corporation and repaired at a total cost of $17,501.50.

Plaintiff contends that the damages to the barge wei;e caused by an incorrect method of loading the barge, and that the barge was improperly balanced, in that the end tanks were left empty. The defendants, on the other hand, contend that the barge, because of its alteration contained inherent structural weaknesses and was misaligned. Defendants also contend that if the loading were the cause of the buckling, the damage would have been concentrated in the center of the barge. However most of the damage occurred just aft of the point at which the new compartments joined the balance of the barge.

Defendants also contend that even if they are responsible for the damages, that their responsibility is, at most, a partial one, since they contend that the damage was at least partially caused by plaintiffs negligence.

The Court finds that the damage to the barge and its buckling occurred as a result of the improper loading of the barge. There is no proof showing that the barge was in any way defective, other than the expert opinion of the defendants’ witness, and even he had to concede that the loading of the barge was improper. Coast Guard Manual for the Safe Handling of Flammable and Combustible Liquids and Other Hazardous Products published in September, 1976 contains the statement that loading procedures which are confined to the center of a barge allowing its ends to remain empty are improper and will create stress for the barge. It is apparent that defendants failed to exercise ordinary care in the loading of the barge.

Two cases which are somewhat analogous to the case at bar, and which have both found negligent loading by concentrating too much of the load in the midsection of a barge in relation to the loads on either end are Continental National American Group v. Valley Line Company, 420 F.Supp. 568, 570 (E.D.Mo.1976) and Marine Sales & Service, Inc. v. Greer Steel Company, 312 F.Supp. 718, 722 (N.D.W.Va.1970).

The Court finds no negligence upon the part of the plaintiff and therefore the cases cited by the defendants are not applicable and there is no occasion to apportion damages. There is, however, a substantial question as to some of the damages claimed by the plaintiff. Plaintiff originally claimed $25,258.89 as expenses incurred in repairing the barge at the Greenville Shipping Corporation. However, it conceded at trial that there were three billings of $3,553.12, $2,339.48 and $1,864.79 which were items not connected with the damages caused by the bulge. Plaintiff is, therefore, entitled to recover $17,501.50 upon this portion of its claim.

Plaintiff also claims $23,200 for the loss of the use of the barge from February 6, 1980 to April 20, 1980. The testimony shows that plaintiff is a subsidiary of various other companies and does not own barges itself but charters approximately 50 barges. These barges are chartered verbally on a month-to-month bareboat basis. No attempt was made by the plaintiff to charter another barge to replace IOT 158. No proof was presented of any cargo which IOT 158 had to refuse during' the period that the barge was in the shipyard. The actual annual charter rate of the barge was $15,408.

Plaintiff introduced evidence to the effect that a barge such as IOT 158 could be rented for $400 per day. It also presented [859]*859evidence to the effect that business was good during the period that the barge was in drydock. It argues that it should receive damages of $400 per day for the entire period between the date of loss and the date when the barge was again fit for service, to wit: February 6, 1980 to April 20, 1980.

Plaintiff contends that it is entitled to the loss of use of the barge under authorities such as Hewlett v. Barge Bertie, 418 F.2d 654 (4th Cir.1969); Marine Sales & Service, Inc. v. Greer Steel Company, supra; Aiple Towing Company, Inc. v. M/V Tri-W, 396 F.Supp. 943 (E.D.La.1975); and Ingram Corporation v. Ohio River Company, 505 F.2d 1364 (6th Cir.1974).

In Ingram, supra, it was shown that the barge which was damaged was one of four built by appellee to transport fuel products for Texaco. In the months preceding the collision, it averaged 3.5 trips per month between Mt. Vernon, Indiana and Cincinnati, Ohio. It was estimated that it produced income of $3,122.58 per trip. There was also evidence to the effect that the M/V Broadfoot, which was owned by Ingram during the time the barge was under repair, made three trips, two with its three remaining fuel barges and one on which it chartered an extra barge. Its operating expenses remained the same regardless of whether it operated three or four barges.

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Bluebook (online)
551 F. Supp. 856, 1982 U.S. Dist. LEXIS 16237, Counsel Stack Legal Research, https://law.counselstack.com/opinion/inland-oil-transport-corp-v-ashland-oil-inc-kyed-1982.