McDonald v. Rosasco

20 F.2d 320, 1927 U.S. App. LEXIS 2521, 1927 A.M.C. 1365
CourtCourt of Appeals for the Third Circuit
DecidedJune 13, 1927
DocketNo. 3607
StatusPublished
Cited by11 cases

This text of 20 F.2d 320 (McDonald v. Rosasco) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McDonald v. Rosasco, 20 F.2d 320, 1927 U.S. App. LEXIS 2521, 1927 A.M.C. 1365 (3d Cir. 1927).

Opinion

BUFFIHGTOH, Circuit Judge.

In the court below, Albert T. Rosaseo, the holder and owner of bills of lading, filed a libel against the schooner Henry W. Cramp to recover damages alleged to have accrued by reason of a breach of a charter party entered into by the schooner with the firm of Rosaseo Bros, to carry a cargo of pine timber from Pensacola to Genoa, Italy. The libel alleged the schooner had deviated from the charter course, and during the period of deviation had abandoned the cargo and thrown it back on the charterers’ hands. The vessel was attached, and released on a bond, and was subsequently lost. The court below heard the ease, and decided it on the theory, not on the deviation charged in the libel, but on the ground of a rescission, and made an award on the basis of a return of the freight and insurance premiums which had been paid by the charterers in advance.

The defendant took this appeal, and contends that it is not responsible and the libel should be dismissed. On the other hand, the libelant contends that the true basis of decision should be that the schooner had wrongfully deviated from her chartered route. We here note that, even if the contention of the libelant is correct, as a practical thing, a decree cannot be enforced in excess of the bond and therefore, although libelant’s damages might exceed the award made by the court [321]*321below, he will be given all practical possible relief by the affirmance of the decree below. Being of opinion that the contention of the libelant as to deviation is well based, we now state onr grounds for so holding.

On November 1, 1916, the schooner Henry W. Cramp was chartered by its owners to Rosasco Bros., a firm composed of William S. Rosasco and Albert T. Rosasco, who is the libelant in this case. The charter was for carriage of a cargo of lumber from Pensacola, Fla., to Genoa, Italy, and stipulated “for a voyage from a safe port in the United States Gulf to a safe port on the west coast of Italy, Sicily included, charterers’ option of a safe port on the west coast of the United Kingdom, including London.” Pursuant to charter, the schooner arrived at Pensacola, and in April or May, 1917, loaded and started on her voyage, before which she was paid in advanee freight of $46,995.84, and insurance premiums of $31,842.81. Before sailing the schooner duly issued five bills of lading for the cargo of pitch pine, which bills were subsequently indorsed and negotiated by Rosasco Bros, to the Crédito Italiano, a bank at Genoa, and from it bought by Albert T. Rosasco, the present libelant, who resides in Genoa.

The schooner sailed from Pensacola the last of May, but went to Norfolk, Va., where she landed June 27th; but the charterers did not know of her whereabouts until September, when, in answer to their inquiry, they learned of it from A. D. Cummins & Co., of Philadelphia, managing owners of the schooner, who as justification stated, first, that “it was found impossible at Pensacola to secure a crew to go through the war zone, and we therefore had to have the vessel proceed to Norfolk to secure a erew”; second, “we are also engaged in securing war insurance on the vessel”; and, third, that the captain was notified by the collector of the port “that the vessel could not sail on her voyage by reason of a recent ruling and regulation of the United States Shipping Board.” In its reply and its several communications the charterers averred that “this vessel cleared for Genoa, from this port, fully equipped, manned, and provisioned, and there was no necessity nor right, on vessel’s part, to deviate to Norfolk (Hampton Roads). If she had not gone there, there never would have been any question of a permit.” During the entire after events the charterers stood on their rights under the charter party, demanded the schooner complete her voyage, and protested against her discharging her cargo.

The vessel remained at Norfolk until October 1, 1917, when she was towed to Philadelphia. Thereafter, and against the protest ' of the charterer, the cargo was discharged, and by stipulation, without waiver of rights, was sold and at a rate that involved a heavy loss as compared with the price in Genoa. Thereupon Albert T. Rosasco, as owner of the bills of lading, brought this libel, claiming to recover as damages $154,-750. On hearing, the court below entered a decree in libelant’s favor from which it took. this- appeal.

As we view the case, two questions are involved. First, the defendant contends Albert T. Rosasco has no right of action, because he has not shown title to the bills of lading. Without discussing the proofs in detail, we may say we find this contention without merit. In accordance with their previous, long-continued course of business, the firm of Rosasco Bros., which did business at Pensacola, indorsed these bills of lading and delivered them to the Crédito Italiano, a bank at Genoa, which paid them full value therefor. Subsequently the bank indorsed and sold the same to Albert T. Rosasco, who thereupon became the owner of the cargo, and who, under the business practice of the parties, disposed of such cargoes in Italy as he saw fit. On the nondelivery of the cargo, the latter sent his bills of lading to this country for the purpose of bringing suit, and they were produced and are in evidence in this case. The evidence of William S. Rosasco, the other member of the firm, is that Albert T. Rosasco is holder, and indeed the sole owner. Under such facts, the right of the latter to bring this libel is clear.

The second question involved is: Was the going of the schooner into Norfolk, Va., an unwarranted deviation from a charter party to proceed from Pensacola, Fla., to Genoa, Italy? In accepting the charge at Pensacola, and beginning her journey from that port in accordance with the charter, the schooner undertook that she was seaworthy (which, of course, included a competent crew) and that she could commence and carry out the charter voyage with reasonable diligence and without unnecessary deviation. Now that the most direct path from Pensacola to Genoa is not by way of Norfolk and Philadephia goes without saying, so that, going to Norfolk, as the schooner did, the burden is upon her to show warrant therefor. This she seeks to do by proving what the customary course of sailing vessels was, namely, taking advantage of the Gulf Stream, and coming [322]*322up in it as far as the latitude of Cape Henry, and then turning east to Europe. From this it is contended that the distance from there to Norfolk was so small as not to constitute a deviation.

With this contention we cannot agree, for the adjudged eases are otherwise. In Morrison v. Shaw, 2 K. B. 783, where the voyage was from New Zealand to London, it was held a deviation to stop at Havre en route, though this only amounted to an ex.tra 54 miles on a voyage of several thousand miles. In Ardan v. Theband (D. C.) 35 F. 620, a side trip of 40 miles was held a deviation. In Thatcher v. MeCulloh, 23 Fed. Cas. 891, where the route was New Orleans to New York, via Havana, a going to Key West was held a deviation, “though it might conduce to expedite the voyage.” How firm the law is in holding vessels to their route will be seen in Elliott v. Wilson, 4 Brown’s O. Cases 470, where the House of Lords held going 6 miles out of the course specified was a deviation.

The going into Norfolk being a deviation, we find no proof of anything that justified it.

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Bluebook (online)
20 F.2d 320, 1927 U.S. App. LEXIS 2521, 1927 A.M.C. 1365, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcdonald-v-rosasco-ca3-1927.