Miller Industries, Inc. v. Caterpillar Tractor Co.

473 F. Supp. 1147, 1980 A.M.C. 702, 1979 U.S. Dist. LEXIS 11095
CourtDistrict Court, S.D. Alabama
DecidedJuly 11, 1979
DocketCiv. A. 78-70-H
StatusPublished
Cited by9 cases

This text of 473 F. Supp. 1147 (Miller Industries, Inc. v. Caterpillar Tractor Co.) is published on Counsel Stack Legal Research, covering District Court, S.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Miller Industries, Inc. v. Caterpillar Tractor Co., 473 F. Supp. 1147, 1980 A.M.C. 702, 1979 U.S. Dist. LEXIS 11095 (S.D. Ala. 1979).

Opinion

HAND, District Judge.

This is an admiralty action in which the plaintiffs seek to recover for defects in the construction of the engine in the fishing vessel PRISCILLA ANN, constructed by defendant Caterpillar Tractor Company, and sold to the plaintiffs by defendant Bur-ford Equipment Company. Suit was originally filed in the United States District Court for the Western District of Washington and is in this Court by virtue of a transfer under Title 28, U.S.C.A., § 1404(a). The plaintiffs contend that the damages suffered by the plaintiffs resulted from negligence and poor workmanship on the part of the defendants, for breach of warranty on part of the defendants and, alternatively, that the defendants were strictly liable for the alleged defects in the engine. The matter came on for trial before the Court and the Court, having considered the record, the testimony and exhibits adduced at trial, and the memoranda of law and arguments propounded by counsel, together with the applicable law, finds as follows:

FINDINGS OF FACT

1. Plaintiffs Miller Industries, Inc., Joe N. Hendrix Company, Old Feller, Inc., and J & G, Inc., are each corporations organized and existing under the laws of the State of *1150 Washington, with each having its principal place of business in the State of Washington. Each of the corporate plaintiffs are partners in a partnership known as Hi-Sea Fisheries, and at all times relevant to this lawsuit the partnership owned and operated the F/V PRISCILLA ANN.

2. The defendant Caterpillar Tractor Company is a corporation organized under the laws of the State of Delaware with its principal place of business being Peoria, Illinois. Defendant Burford Equipment Company is a corporation organized under the laws of the State of Alabama with its principal place of business being in Montgomery, Alabama.

3. On or about April 21, 1975, Francis L. Miller entered into a contract with Bender Welding and Machine Company, Inc., for the construction of a 127 foot vessel to be named the F/V PRISCILLA ANN. The partnership intended to utilize the vessel to engage in the king crab fishing off the coast of Alaska in the Bering Sea and surrounding waters. This contract was subsequently assigned to the partnership by Miller.

4. Defendant Caterpillar is engaged in the business of designing and manufacturing marine diesel engines and, in fact, did design, manufacture, and sell the Caterpillar D-399 marine engine, serial number 91B822, that was subsequently installed in the F/V PRISCILLA ANN.

5. Defendant Burford is the authorized Caterpillar distributor and repair facility in Mobile, Alabama. On August 7, 1975, Bur-ford purchased the engine in question from Caterpillar. On September 25, 1975, Bur-ford sold the engine to Bender Welding and Machine Company, which later installed the engine in the F/V PRISCILLA ANN.

• 6. On January 13, 1976, Caterpillar sent a service letter to a number of their dealers, including Burford, making specific reference to this particular engine by serial number. The letter concerned a soft sun gear in this particular engine, and the, evidence is clear that Burford did not test or replace the sun gear in the engine in accordance with the Caterpillar letter prior to the sailing of the vessel from Mobile.

7. On February 6, 1976, Caterpillar mailed a service letter to its dealers concerning a piston wrist pin problem and referring to specific engines, including the engine that was installed aboard the F/V PRISCILLA ANN. Burford received this letter but did not replace the piston wrist pins in the engine.

8. The sun gear and wrist pins in the engine installed in the F/V PRISCILLA ANN were in the same condition at installation as when they left the Caterpillar factory-

9. At the time of the manufacture of the engine in question, it contained a fuel pump, part number 2S7264. On or before October 1,1976, after the vessel had been in operation, a valve lifter nut lossened, and the fuel injection pump on the number 15 cylinder jammed the lower part of the valve lifter rack, which caused noise in the engine and incorrect metering of fuel with attendant excessive carbon build-up in the piston.

10. On August 29, 1976, Burford performed a sea trial on the Caterpillar D-399 engine aboard the F/V PRISCILLA ANN. However, Burford did not advise any representative of the plaintiffs or any representative of Bender Welding and Machine Company with respect to any problem related to the sun gear, valve lifter, nuts, or fuel pump of the engine. On September 10, 1976, the F/V PRISCILLA ANN, with Francis Miller as captain, was delivered to the plaintiffs by Bender and departed Mobile for the Panama Canal.

11. At approximately 5:00 p. m. on September 12, 1976, while in or near the Yucatan Straits the F/V PRISCILLA ANN encountered vibration problems in the main engine. Captain Miller radioed the problem to Bender, which in turn reported the difficulty to Burford. Captain Miller was advised by Burford by radio to continue at a slower pace on to the Panama Canal. Following these instructions, Captain Miller reduced his speed from 11 to 6 knots and the F/V PRISCILLA ANN arrived at the Panama Canal at 1:00 a. m. on September 17, 1976 one and one-half days behind schedule.

*1151 12. The vibration problem was caused by the soft sun gear. Miller reported the problem to Cardozo and Lindo, S. A., Caterpillar’s authorized dealer in Panama, and that firm commenced the performance of repairs. After the commencement of the repairs, Miller again radioed Bender in Mobile and complained that the repairs were not being performed properly and were being delayed. Bender passed this information along to Burford, which elected to fly two mechanics to the Panama Canal Zone to assist in the repairs.

13. During the course of the repairs to the sun gear a crack in the reduction gear housing was discovered. Burford recommended that a new gear housing be installed, and made arrangements to have a new one delivered to the Canal Zone by air freight. Subsequently, however, the mechanics welded the. crack in the old housing instead of installing a new one.

14. Following the completion of the repairs in Panama, which were paid for by Caterpillar in accordance with its warranty, the F/V PRISCILLA ANN left the Canal Zone on September 25, 1976, bound for Seattle, Washington. The Court finds that as a proximate result of the combined negligence of Caterpillar and Burford in failing to correct the sun gear condition before the vessel departed Mobile, the F/V PRISCILLA ANN was delayed a day and a half in arriving in Panama, and in excess of eight full days undergoing repairs there.

15. On October 1, 1976, as the vessel made her way north along the Mexican coast, the loose valve lifter nut on the # 10 cylinder manifested itself, backed off, and caused an improper flow of fuel which required immediate attention. As a direct result of these conditions, the F/V PRISCILLA ANN was forced to divert into Acapulco for repairs by the authorized Caterpillar dealer in Mexico City.

16. Because of transportation problems from Mexico City and the failure of the Mexican Caterpillar dealer to bring the necessary parts for repair on the mechanics’ initial trip to Acapulco, the repairs took considerably longer than expected.

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473 F. Supp. 1147, 1980 A.M.C. 702, 1979 U.S. Dist. LEXIS 11095, Counsel Stack Legal Research, https://law.counselstack.com/opinion/miller-industries-inc-v-caterpillar-tractor-co-alsd-1979.