Levatino Co. v. S.S. Norefjell

231 F. Supp. 307, 1964 U.S. Dist. LEXIS 8113
CourtDistrict Court, S.D. New York
DecidedApril 28, 1964
StatusPublished
Cited by3 cases

This text of 231 F. Supp. 307 (Levatino Co. v. S.S. Norefjell) 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
Levatino Co. v. S.S. Norefjell, 231 F. Supp. 307, 1964 U.S. Dist. LEXIS 8113 (S.D.N.Y. 1964).

Opinion

HERLANDS, District Judge:

The libellant, Levatino Company, Inc., a New York City firm of fruit and vegetable importers, has brought this cargo damage action in admiralty against the ocean carrier whose vessel transported the cargo, A/S Falkefjell Og A/S Dovref-jell, a Norwegian corporation (hereinafter “the carrier”), and against the libellant’s cargo underwriter,1 Sud Amer-[309]*309iea Terrestre y Marítima Compañía de Seguros Generales (hereinafter “the underwriter”).

The carrier2 impleaded Maher Steve-doring Company, Inc., (hereinafter “the stevedore”) which discharged the cargo at the Harborside Terminal pier in Jersey City.

The transactions and events giving rise to this litigation occurred in 1959.

The carrier, through its agent in Buenos Aires, had issued eight clean bills of lading covering the cargo and its transportation to the port of New York.

The libellant seeks to recover $185,-983.70 from the underwriter, said to be based upon the formula of calculation of a loss under a marine insurance policy, and the sum of $200,869.33 from the carrier, said to be based upon the common law measure of recovery under the provisions of the Carriage of Goods by Sea Act (COGSA), 46 U.S.C. § 1304(5), viz., the amount of damage actually sustained. It is claimed that libellant suffered damages as a result of the carrier’s breach of the bills of lading contract of carriage with respect to the portage of 43,169 containers (boxes and cartons) of apples from the port of Buenos Aires, Argentina, to the port of New York.3

Libellant claimed that, on out-turn, the apples were “crushed, bruised, cut, gouged and otherwise deteriorated” 4 and [310]*310that such condition, on out-turn, was caused by the carrier’s negligent stowage and refrigeration system and by the stevedore’s culpable misconduct in walking on the containers of apples in the course of the cargo discharging operations.

The libel alleged that the cargo was delivered to the carrier and loaded by the carrier “in good order and condition.” 5

Issue was joined;6 and a trial was thereupon held.7

On the next to last day of trial, libel-lant injected a new theory of estoppel as an alternative basis for recovery.

The libellant’s post-trial briefs present the estoppel theory as an alternative to. [311]*311the position taken by the libellant throughout most of the trial. This estop-pel theory is predicated upon the factual premise that the apples were overripe and bruised at the time of loading and that the carrier, having issued clean bills of lading, is estopped from now asserting that the cargo was other than as represented by the carrier in its bills of lading. The libellant’s factual position during most of the trial was that the apples were in good order and condition at the time of loading. To cover the alternative theories, libellant has submitted alternative sets of proposed findings. Compare Libellant’s Proposed Findings of Fact After Trial [September 23, 1963] Nos. 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32 with Nos. 46, 47, 48, 49, 50, 51, 52.

This action is governed by the Carriage of Goods by Sea Act (COGSA), 46 U.S.C. § 1300 et seq. Under COGSA, the establishment of a prima facie ease requires proof by the libellant, first, that its goods were loaded in good condition and, second, that its goods were out-turned in a poor or damaged condition. See M. W. Zack Metal Company v. S.S. Birmingham City, 311 F.2d 334, 337 (2d Cir. 1962) cert. denied, 375 U.S. 816, 84 S.Ct. 50, 11 L.Ed.2d 51 (1963); American Tobacco Co. v. The Katingo Hadjipatera, 194 F.2d 449, 450 (2d Cir. 1951), cert. denied, American Tobacco Co. v. Hadji-pateras, 343 U.S. 978, 72 S.Ct. 1076, 96 L.Ed. 1370 (1952); Copco Steel & Engineering Company v. S/S Alwaki, 131 F.Supp. 332, 333 (S.D.N.Y.1955); Gilmore & Black, The Law of Admiralty, § 3-43, p. 162 (1957).

As part of its proof to establish the first element, libellant offered in evidence the eight bills of lading issued by the carrier, acknowledging receipt of the cargo of boxes of apples in apparent good order and condition.8 A clean bill of lading is initial proof “of freedom from open and visible damage prior to transportation.” Copco Steel & Engineering Company v. S/S Alwaki, supra; see Stirnimann v. The San Diego, 148 F.2d 141, 142 (2d Cir. 1945); The Bencleuch, 10 F.2d 49, 52 (2d Cir. 1925) cert. denied 271 U.S. 680, 46 S.Ct. 631, 70 L.Ed. 1148 (1926). As Judge Hand said in The Bencleuch, the admission represented by a recital of “apparent good order and condition” in a bill of lading goes no further than “to create prima facie proof that to the eye the boxes were secure and sufficient, and that the lemons, so far as visible, were not damaged.”

While the contents of the vast majority of the containers were actually not discernible to the carrier prior to loading in the sense of the carrier’s being [312]*312able to make a visual determination of the boxed apples,9 the carrier did employ a fruit expert (Ollivier) who test-sampled and inspected the shipment on the Buenos Aires pier. This inspection by the carrier was conducted independently of the official inspection by the Argentine Government inspectors. T.R. pp. 167— 169, 248, 250, 254, 257.

In addition, continuously throughout the loading period, the carrier’s representatives (Dybeck and Nazzari) kept informed of the quality of the apples being loaded and insisted that only good apples be loaded. T.R. pp. 1924, 1926, 1930-1931, 1944, 1946-1948, 1952-1953.

As further substantiation of its original (and later, alternative) assertion that the apples were in good order and condition when delivered to the ship and loaded thereon, libellant introduced depositions of Argentine Government fruit inspectors10 which convincingly proved (and the Court so finds) that no overripe or bruised apples were approved for export purposes11 except for 250 boxes, which will be more particularly discussed herein.

The Court finds that, when loaded at Buenos Aires the fruit (except for 250 boxes) possessed the proper state of maturity and other qualities suitable for transportation in a reefer to the port of New York.

During the trial, libellant conceded that the ship was adequately refrigerated and that libellant does not contend that there was any unseaworthiness or negligence on the part of the carrier or the ship with regard to the ship’s refrigeration system. T.R. p. 2281.

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Bluebook (online)
231 F. Supp. 307, 1964 U.S. Dist. LEXIS 8113, Counsel Stack Legal Research, https://law.counselstack.com/opinion/levatino-co-v-ss-norefjell-nysd-1964.