Lowery v. The Tug Ellen S. Bouchard

166 F. Supp. 491, 1958 U.S. Dist. LEXIS 3564
CourtDistrict Court, N.D. New York
DecidedOctober 10, 1958
DocketCiv. No. 5006
StatusPublished
Cited by1 cases

This text of 166 F. Supp. 491 (Lowery v. The Tug Ellen S. Bouchard) is published on Counsel Stack Legal Research, covering District Court, N.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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

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]*492cussed 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]*493the 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.

I need spend little time on the discussion of the amounts awarded by the Commissioner for the repairs to the other four surviving barges. In this customary area of dispute, the Commissioner adopted the estimates made early in the struggle by the surveyor for the claimants-respondents underwriters. I cannot imagine a fairer base for decision. The low amounts sought by the Bouchard interests in their exceptions are even overcome substantially by the estimates of the three surveyors it called on its own behalf. Page 13, Commissioner’s Report. Again, the Commissioner found a middle ground in the factual dispute between the figures of libellant and claimants-respondents, and that is usually a good judgment, and such awards are allowed to stand. I did not have in mind at the main trial the issue of damage at all. However, I am certain that the W. W. Clute did not have bow plank damage before the collision because it was established at the trial before me that the fleet had been inspected by a competent survey company which I am sure would not have allowed that barge to carry the valuable cargo of grain it did with the bow plank damage found by the surveyors after the collision. I find such damage was caused by the collision. The fact that temporary or partial repairs only were made does not preclude the Commissioner from fixing the reasonable cost of permanent repairs to restore to good condition. Pennsylvania R. Co. v.

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Bluebook (online)
166 F. Supp. 491, 1958 U.S. Dist. LEXIS 3564, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lowery-v-the-tug-ellen-s-bouchard-nynd-1958.