Lowery v. The Tug Ellen S. Bouchard

166 F. Supp. 491, 1958 U.S. Dist. LEXIS 3564
District Court, N.D. New York·Decided October 10, 1958·No. Civ. No. 5006·Published·Cited by 1 cases

Opinion

FOLEY, District Judge.

This seemingly interminable admiralty litigation should be in the last stages-. The main issue imposing sole responsibility for the collision on the Bouchard interests was decided by me January 81, 1955 (Lowery v. The Tug Ellen Bouchard, D.C., 128 F.Supp. 16; affirmed opinion below, 2 Cir., 229 F.2d 436). Interlocutory decrees were signed appointing the same Commissioner to ascertain and compute the cargo and vessel damage. The Report of the Commissioner as to the cargo damage was substantially modified by me on June 4, 1957, Cargill, Inc., The Frank A. Lowery, D.C., 159 F.Supp. 133. Appeal was again taken by the Bouchard interests and affirmance was again made on the opinion below. 2 Cir., 251 F.2d 845; certiorari denied The Tug Ellen S. Bouchard v. Cargill, Inc., 356 U.S. 951, 78 S.Ct. 917, 2 L.Ed.2d 845. The Commissioner’s Report on the separate phase of vessel or barge loss and damage and other issues relevant thereto has now been filed. The libellant files seven exceptions and the claimants-respondents file twenty-eight exceptions. The substantial points created by these exceptions do not necessitate discussion of each one in detail but shall be dis[492] cussed generally as was done by the proctors in their oral argument and briefing.

The first point is the finding by the Commissioner that the value of the two barges that went down as a result of the collision, the Mae Lowery and the Marion O’Neill, was $10,000 for each. The exceptions of the libellant urge that the value of the Mae Lowery should have been fixed at $17,304.50 and the value of the Marion O’Neill $20,015.50. The ■claimants-respondents by their exceptions urge that the value of the Mae Lowery should not exceed the sum of $3,000, and the Marion O’Neill not exceed $3,500.

As to the ascertainment of value of these lost barges, the Commissioner had a very perplexing and substantial problem. The barges were wooden, old in the trade but still useful and money earners at the time of the collision, and the Commissioner was impressed that they “were in excellent condition and with proper maintenance had an unlimited life expectancy.” Page 3, Commissioner’s Report. However, because of their unique character and áge the dilemma was present to fix fair and reasonable value without the aid of any precise legal formula. These facts, particularly the ones that reproduction of their type would never be made and a true market of sufficient contemporaneous sales did not exist, led the Commissioner to adopt an overall appraisal of combined factors •before him. This approach to the problem he makes clear with the statement: “The real value of the lost vessels must be sought amidst all the relevant facts with prudence and reasonableness as the only guide.” Page 9, Commissioner’s Re•port.

Under the circumstances, in my judgment, this approach is legally sound. Standard Oil Company v. Southern Pacific Co., 268 U.S. 146, 156, 45 S.Ct. 465, 69 L.Ed. 890; Carl Sawyer, Inc. v. Poor, 5 Cir., 180 F.2d 962; O’Brien Bros, Inc., v. The Helen B. Moran, 2 Cir., 160 F.2d 502, 505; Bisso v. Inland Waterways Corporation, D.C., 139 F.Supp. 387. These authorities justify the determination of the Commissioner that in situations of this kind involving value there must be flexibility to form a reasonable judgment based upon an appraisal and evaluation of all relevant facts. United States v. Toronto, Hamilton & Buffalo Navigation Co., 338 U.S. 396, 402, 70 S.Ct. 217, 94 L.Ed. 195, recognizes again that the determination of value cannot be reduced to inexorable rules. The Commissioner did not base his conclusion upon one factor but weighed the impact of all the facts in his search for fairness and reasonableness. It is true that he gave great weight to the opinion value estimated by the Lowery witnesses but such testimony is not to be treated differently from other testimony, and it is the chief function of the Commissioner to evaluate it as to its credibility and weight. The Commissioner mainly avoided the reproduction less depreciation principle as urged by the libellant in its proof, but did use this type testimony of Mr. Terry, witness for Bouchard, to some extent to support his final conclusion as to value. Page 11, Commissioner’s Report. I am also impressed by the moneys expended by Lowery on the two barges a short time before the collision and the gross revenue of the fleet of $186,815. Page 10, Commissioner’s Report. The claimants-respondents argue strongly that the evidence that the libellant was willing to sell his tug and five barges for $35,000 should be conclusive in fixing the value of the barges in the lesser amounts they seek. This is only another factor for the Commissioner to weigh with all the circumstances surrounding such transaction. Whether the price was fixed by the seller or buyer has some doubt in the record, but it is settled that an offer to buy is not evidence of value. United States v. Meadow Brook Club, 2 Cir., 259 F.2d 41; Sharp v. United States, 191 U.S. 341, 348, 24 S.Ct. 114, 48 L.Ed. 211. In my judgment, this type evidence is inherently dangerous, as the Sharp case points out, and to me there is little difference whether it comes from [493] the seller or the buyer. At least in no sense can such previous incomplete business transaction have the force of estoppel in his search for fair market value. 1 am content that the Commissioner, in fixing the value of the lost barges, made a reasonable, balanced judgment between two extremes that was supported by the facts and in accord with the law.

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Lowery v. The Tug Ellen S. Bouchard, 166 F. Supp. 491, 1958 U.S. Dist. LEXIS 3564 (N.D.N.Y. 1958).

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