Mississippi Valley Barge Line Co. v. Bulk Carriers, Ltd.

249 F. Supp. 743, 1965 U.S. Dist. LEXIS 7633
CourtDistrict Court, S.D. New York
DecidedJune 1, 1965
StatusPublished
Cited by4 cases

This text of 249 F. Supp. 743 (Mississippi Valley Barge Line Co. v. Bulk Carriers, Ltd.) 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
Mississippi Valley Barge Line Co. v. Bulk Carriers, Ltd., 249 F. Supp. 743, 1965 U.S. Dist. LEXIS 7633 (S.D.N.Y. 1965).

Opinion

WYATT, District Judge.

This is a motion on affidavits by defendants Import & Export Steel Corporation (Impex), Nimpex International, Inc. (Nimpex), and Insurance Company of North America (Insurance North)

(1) to dismiss the complaint for failure to state a claim upon which relief can be granted (Fed.R.Civ.P. 12 (b) (6));

(2) to dismiss the complaint for lack of jurisdiction over the subject matter (Fed.R.Civ.P. 12(b) (1));

(3) to dismiss the complaint because a “declaratory judgment is inappropriate” (this is probably to be. treated as a motion for summary judgment under the last sentence of Fed. R.Civ.P. 12(b)); and

(4) to require counsel for plaintiff to “produce substantial proof” that they were duly authorized by plaintiff to commence this action.

Under date of October 23,1963, defendant Bulk Carriers, Ltd. (Bulk) as “Dis-ponent Owners” of the vessel “Dori” chartered her to defendant Nimpex to carry a full cargo of steel coils on one voyage from Germany to New Orleans. No definition of “disponent owner” has been found but I assume it means a person not the actual owner but legally capable of making a charter of the vessel.

On November 4, 1963, plaintiff Barge appointed defendant Bulk its agent to solicit overseas cargo for carriage by its barges on rivers in this country.

Under date of December 13, 1963, and doubtless reflecting efforts of Bulk to secure cargo for Barge, the charter party was amended by “Addendum No. 1” in relevant part as follows: (a) the cargo was to be delivered at Chicago rather than New Orleans; (b) the “through freight rate” to Chicago was. fixed and, of course, at a higher rate than that to New Orleans; (c) Bulk agreed to issue (on completion of loading at German port) to Nimpex (the “charterers”) “a Mississippi Valley Barge Line Company through-bill-of-lading, as attached”; and (d) the arbitration clause was provided to read as follows:

“9 —ARBITRATION: Should any dispute arise between the Dis-ponent Owners and the Charterers, the matter in dispute shall be referred to three persons in New York, one to be appointed by each of the parties hereto, and the third by the two so chosen, and their decision, or that of any two of them, shall be final, and, for purpose, of enforcing any award, this agreement may be made a rule of the Court. The Arbitrators shall be commercial men.”

It does not appear when “Addendum No. 1” was executed.

[745]*745Under the same date of December 13, 1963 a “memorandum of agreement” was executed by Bulk and Barge under which it was agreed that the charter party and addendum were “sublet” to Barge, that Barge would assume all obligations of Bulk thereunder, and that Bulk “as agents for” Barge would issue a through bill of lading. It is represented for Barge that this “memorandum of agreement” was not executed “until after the DORI departed from Emden in January 1964.”

The Dori was loaded in Germany, at which time bills of lading were issued by the Master covering the carriage of the cargo to New Orleans and delivery there to the order of Franklin National Bank notify Impex. It must be assumed that the delivery provisions in the bill of lading were on instructions of Nim-pex, charterer of the Dori. In an affidavit, it is stated that Impex was the owner of the cargo. That the delivery port in the Master’s bills of lading was New Orleans and not Chicago is consistent with the representation for Barge that the “sublet” of the charter party to Barge, while dated December 13, 1963, was not actually executed until after the Dori had sailed from Germany. It also seems fair to assume that “Addendum No. 1” was executed at or about the same time as the “sublet”.

The Dori sank at a port in the Azores Islands on January 16, 1964.

Thereafter defendant Bulk, consistent with the obligations under “Addendum No. 1” and the “sublet” agreement, issued through bills of lading for the cargo over the name of Barge; the signature to the bills of lading was that of Barge by Bulk as “agents”. The through bills of lading were dated December 27, 1963 and were on printed forms of Barge. The delivery ports were Chicago and St. Louis. The consignee was “order of Franklin National Bank” and to notify Impex and the Bank. The through bills of lading contained the following typed provision:

“ALL THE TERMS, CONDITIONS, LIBERTIES AND EXCEPTIONS OF THE CHARTER PARTY DATED 23.10.63 AND ADDENDUM THERETO DATED 13.12.63 ARE HEREWITH INCORPORATED. WHEREVER THE TERMS, CONDITIONS, LIBERTIES AND EXCEPTIONS OF THIS CHARTER PARTY AND ADDENDUM THERETO CONFLICT WITH THE TERMS OF PART (I) OF THIS BILL-OF-LADING, THE FORMER WILL GOVERN”.

The through bills of lading were delivered by Bulk to Nimpex on January 28, 1964. Nimpex agreed that it would not tender the through bills of lading to any innocent third party without advising them that the cargo had already been lost.

Under date of May 26, 1964, counsel for movants here, on behalf of “all parties interested in the cargo”, made demand of Barge that it arbitrate the dispute over responsibility for the cargo loss. In so doing, the cargo relied on the arbitration provision of “Addendum No. 1” which was asserted to be binding on Barge because of incorporation in the through bills of lading and because of the “sublet” agreement executed by Barge.

The demand for arbitration was ignored.

On October 27, 1964, Impex and Nim-pex filed a petition in this Court (64 Ad. 1166) for an order directing Barge to arbitrate. 9 U.S.C. § 4

On January 7, 1965 Impex and Nim-pex filed a libel in personam in this Court (65 Ad. 17) against Barge based on loss of the cargo. This libel contained three causes of action. The first and second causes of action appear to be for money damages only. The third cause of action repeats the averments of the first and then recites the claimed agreement of Barge to arbitrate. The prayer for relief in the libel is that an order directing arbitration be made. The following appears as the last paragraph of the libel:

“TWENTY-THIRD: Libelants allege and assert a cause of action in admiralty for the breach of a marine [746]*746contract of affreightment and Charter Party agreement and Addendum thereto, in addition to its demand for arbitration as set forth in the foregoing cause of action.”

On January 8, 1965 the complaint in this action at bar was filed by Barge. The opposing affidavit states that this complaint was filed for Barge without knowledge of the libel filed by Impex and Nimpex the day before.

On January 15, 1965 Barge, respondent in the admiralty suit, filed in that suit a petition under Supreme Court Admiralty Rule 56 praying that Bulk, Yeniselos, S. A., Nikitas K. Venizelos and Atalaya Cia. Nav., S. A. he made im-pleaded respondents. The claim of Barge asserted in the petition against the im-pleaded respondents is exactly the same claim asserted by Barge against them in the case at bar.

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Cite This Page — Counsel Stack

Bluebook (online)
249 F. Supp. 743, 1965 U.S. Dist. LEXIS 7633, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mississippi-valley-barge-line-co-v-bulk-carriers-ltd-nysd-1965.