Middleton & Co. v. Ocean Dominion S. S. Corp.

43 F. Supp. 29, 1941 U.S. Dist. LEXIS 2269
CourtDistrict Court, S.D. New York
DecidedOctober 20, 1941
StatusPublished
Cited by2 cases

This text of 43 F. Supp. 29 (Middleton & Co. v. Ocean Dominion S. S. Corp.) 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
Middleton & Co. v. Ocean Dominion S. S. Corp., 43 F. Supp. 29, 1941 U.S. Dist. LEXIS 2269 (S.D.N.Y. 1941).

Opinion

CONGER, District Judge.

These are three libels to recover for the loss of the cargo of the Norwegian steamer Iristo, which became a total loss after stranding on the reefs on the northern side of Bermuda on March 15, 1937. The suits are by a large number of consignees and other persons interested in the cargo. The same general issues are involved in each of the libels.

The respondent, Ocean Dominion Steamship Corporation, a New York corporation, was not the owner of the Iristo, nor were her master and crew in its employ. The respondent is sued on the claim that it was the carrier of the merchandise, although it was only the sub-charterer of the ship.

The respondent impleaded as a third party respondent, the Atlantic Maritime Corporation, from which corporation the Ocean Dominion Steamship Corporation had chartered the ship. The Atlantic Maritime Corporation obtained a stay of the petition under the arbitration clause in the charter party. The owner of the Iristo, a Norwegian corporation, from which the Atlantic Maritime Corporation had chartered the ship, is not a party to these actions.

The Iristo was of 1,821 gross tons, and 1,064 net tons. She was built in 1919 by the American Shipbuilding Company, of Lorraine, Ohio. She was 251.2 feet long, 43.7 feet broad and 18.2 feet in depth. She had triple expansion engines, built by the same company. She was classed in the Norwegian Veritas in the highest class, having gone through a classification survey in Norway in the spring of 1936. After sailing from Norway, the Iristo was employed in trading from the United States and Canada and the West Indies.

On October 5, 1936, the Iristo was chartered to the Atlantic Maritime Commission and performed a number of voyages for that company. On February 2, 1937, the Atlantic Maritime Corporation, as time [32]*32charterer, sub-chartered the Iristo to Ocean Dominion Steamship Corporation for a period of about six calendar weeks. Both of these charter parties were on the standard time charter form, approved by the New York Produce Exchange. Both forms had the following clause: “25. Nothing herein stated is to be construed as a demise of the steamer to the time charterers. The owners to remain responsible for the navigation of the steamer, insurance, crew, and .all other matters, same as when trading for their own account.” Each charter party provided that the owners would “maintain her class and keep the steamer in a thoroughly efficient state in hull, machinery and equipment for and during the service.”

The Iristo entered into service under the sub-charter to Ocean Dominion Steamship Corporation, at Philadelphia, on March 3, 1937. The master was instructed to proceed to Halifax, N. S., which he did, arriving there on March 8, 1937. At Halifax, general cargo was loaded in the holds of the ship, and on March 9th she sailed from Halifax for St. John, N. B. She arrived at St. John on March 10th, loaded additional cargo and sailed from St. John on March 11th, bound for Bermuda, her first port of call. At 3 P. M., on March 15th, shortly after passing North Rock Beacon, she struck an under-water reef, off the northwest coast of Bermuda. Some hours later, in the early morning of March 16th, while being towed towards the Narrows, at Bermuda, the Iristo sank, and her cargo, with insignificant exceptions, became a total loss.

The issues presented to this Court are as follows:

(1) Is respondent, Ocean Dominion Steamship Corporation, liable as carrier or otherwise under the bills of lading?

(2) Was the Iristo seaworthy or unseaworthy when she sailed from Halifax and St. John, for a voyage to Bermuda and the West Indies?

(3) If the Iristo was unseaworthy, had due diligence been exercised to make her seaworthy ?

(4) If the Iristo was unseaworthy, and/or due diligence to make her so had not been exercised, did the stranding and subsequent loss of the vessel result in whole or in part from her unseaworthiness ?

Counsel for both parties, at the opening of the trial, agreed that if the respondent was not the carrier, and is not liable on the contract, “that is the end of the case.”

Both of the time charterparties herein were on the same form. As already pointed out, nothing in the charterparties was to be construed as a demise, and the owners were to be responsible for the navigation of the ship. The charters further provided that: “The Captain (although appointed by the Owners) shall be under the orders and directions of the Charterers as regards employment or agency; and Charterers are to load, stow and trim the cargo at their expense under the supervision of the Captain, who is to sign Bills of Lading for cargo as presented, in conformity with Mate’s or Tally Clerk’s receipts.” The master of the Iristo specifically authorized the respondent, Ocean Dominion Steamship Corporation, in writing, to sign bills of lading for him.

The general rule applicable when the carrying ship is under charter is stated in Scrutton on Charterparties and Bills of Lading, 14th Ed., at pages 2 and 3:

“The charterer with whom the shipowner enters into the contract of affreightment may intend to supply the cargo himself. In this case, when the cargo is shipped, a bill of lading will generally be signed. Such a bill of lading, while in the hands of the charterer, is usually merely a receipt for the goods, but may be evidence of a contract adding to or varying the contract between them contained in the charterparty.
“Or the charterer may intend to enter into sub-contracts of carriage with other shippers, who provide all or part of the cargo. In this case, as each shipper ships his goods, a bill of lading will be signed, evidencing a contract between the shipper on the one hand, and, according to circumstances, the shipowner or more rarely, the charterer on the other. Such contract will be independent of the contract contained in the charterparty, except in so far as it expressly incorporates it.”

This case comes within the second paragraph of the above quotation, that a bill of lading will evidence a contract between the shipper and the shipowner or the charterer.

It, therefore, is incumbent upon this Court to examine the bills of lading issued herein, and determine whether they are contracts of carriage between the shippers and the owners of the Iristo, who are not parties to this action; or a contract of [33]*33carriage between the shippers and the sub-charterers, the respondents herein.

There are two types of bills of lading herein, the so-called port bills of lading, and the through bills of lading, some of which contain clauses incorporating the port bills of lading by reference. I will consider the port bills of lading first.

Of the port bills of lading, 196 were issued. There were four separate prints of these 196 bills of lading: 2 on a print of 1931, 9 on a print of 1933, 27 on a print of 1934, and 158 on a print of 1936.

The prints of 1931, 1933 and 1934 were signed: “Ocean Dominion Steamship Corporation, For Master and Owners, By .......” The actual signature was either that of one of respondent’s agents at Halifax or St. John, or that of one “J. P. Brown”, respondent’s employee. The 1936 print was signed: “Ocean Dominion Steamship Corporation, By authority of the Master and/or owners of the above mentioned steamer, By .......” The actual signature was filled in just as on the earlier prints.

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Bluebook (online)
43 F. Supp. 29, 1941 U.S. Dist. LEXIS 2269, Counsel Stack Legal Research, https://law.counselstack.com/opinion/middleton-co-v-ocean-dominion-s-s-corp-nysd-1941.