Nicholas E. Vernicos Shipping Company v. United States

223 F. Supp. 116, 1963 U.S. Dist. LEXIS 7864
CourtDistrict Court, S.D. New York
DecidedOctober 24, 1963
StatusPublished
Cited by9 cases

This text of 223 F. Supp. 116 (Nicholas E. Vernicos Shipping Company v. United States) 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
Nicholas E. Vernicos Shipping Company v. United States, 223 F. Supp. 116, 1963 U.S. Dist. LEXIS 7864 (S.D.N.Y. 1963).

Opinion

MacMAHON, District Judge.

Libellants, nationals of the Kingdom -of Greece, sue the United States under the Public Vessels Act (46 U.S.C. § 781 ■et seq.), to recover for salvage services which their tugs allegedly rendered to two ships of the United States Navy in St. George’s Bay, Piraeus, Greece, on October 29 and 30, 1956.

On the evening of October 29, 1956, the U.S.S. ALTAIR and the U.S.S. MERCURY, store ships attached to the United States Sixth Fleet, were moored to the leeward side of a quay in St. George’s Bay. The ALTAIR, lying perpendicular to the quay, was headed north and away from it. She was held in position by five standard lines running from her stern to the quay and two anchors projecting from her bow. The MERCURY was “Chinese moored” to the ALTAIR, viz., tied alongside, bow to stern. She was secured by six lines joining her starboard to the ALTAIR’S starboard and a single cable from her bow to the quay. This method of mooring was admittedly unsafe but was necessitated by the physical features and limited area of St. George’s Bay.

Rocky shoals were located some 1,340 feet north of the ships. Another rock formation lay 375 feet to the west on the immediate port of the ALTAIR. A power plant with docks extending into the water was situated at a right angle to the quay and 375 feet to the east off MERCURY’S port. Two Greek fishing boats were directly in front of the plant, one of them tied to its dock.

At about 8:00 P.M. on October 29th, a sudden and violent squall struck in the vicinity of St. George’s Bay. All the lines holding the ALTAIR and the MERCURY to the quay snapped under the strain of the storm. The interlocked ships, now held only by the ALTAIR’S anchors, were swung counterclockwise by .strong southwest winds towards the power plant. This helpless rotation was quickly checked, however, by dropping the MERCURY'S anchor and heaving in on the ALTAIR’S. Nevertheless, in the interval, the ships had moved some 150 to 200 yards from their original position, missed colliding with the power plant by a scant 25 to 30 feet, and the MERCURY struck one of the Greek fishermen, breaking off its yardarm.

The ships had radioed for assistance almost at the instant the lines parted, but their call did not reach libellants’ tugs until a half hour later. When the tugs, VERNICOS MANOS and KENTAVROS, arrived at 9:10 P.M., the winds had diminished, and they, found the ships stationary, riding on all anchors, albeit still displaying a distress signal. The waters appear to have remained relatively calm for the tugs encountered no unusual difficulty in obtaining lines from the ships, securing them with the aid of the ships’ crews, and, at the request of ALTAIR’S captain, the senior officer present, returning the ships to their original berths. The vessels were then secured to the quay as before, but with reinforced lines.

After working an hour and twenty minutes, the tugs were dismissed at 10:30 P.M. and returned to their base. Shortly afterward, however, the wind from the southwest began to pick up and by 12:30 A.M. gusts again exceeded 50 knots. The captain of the ALTAIR, concerned for the safety of his ships, recalled libellants’ tugs to stand by, despite the fact that all lines were holding. The same tugs reappeared at 1:55 A.M., this time accompanied by a pilot employed by the Greek government who was transferred to the MERCURY. The winds now decreased to 12 to 14 knots with intermittent gusts of 25 to 30, and the sea was fairly calm with light swells. The tugs stood by until 3:15 A.M. when the MERCURY’S captain asked them to push against the MERCURY’S side to relieve the strain on the lines. This they did, running their engines at varying speeds, until 6:35 A.M. when they were finally discharged.

*118 Respondent contends at the threshold that sovereign immunity deprives the court of jurisdiction over this suit. Under the Public Vessels Act (46 U.S.C. § 781 et seq.), the United States has waived sovereign immunity and consented to suits in admiralty for compensation for salvage rendered to a public vessel, but

“No suit may be brought * * * by a national of any foreign government unless it shall appear to the satisfaction of the court * * * that said government, under similar circumstances, allows nationals of the United States to sue in its courts.” 46 U.S.C. § 785.

Libellants are admittedly Greek national; their right to sue turns, therefore, on whether the Kingdom of Greece allows nationals of the United States to sue in its courts for compensation for salvage rendered to a vessel of the Royal Hellenic Navy. We hold that the Kingdom of Greece would allow such a suit by a national of the United States.

Libellants rely heavily upon the International Convention for the unification of certain rules relating to the immunity of state-owned vessels, signed in Brussels on April 10, 1926 (6 Benedict, Admiralty 236 (7th ed. 1958)). The Convention provides that:

“Seagoing vessels owned or operated by states * * * are liable, in respect of claims relating to the operation of such ships * * * to the same rules of applicability and to the same obligations as are applicable to private vessels. * * ” (Art. 1.)
“ * * * damaged parties shall have the right to sue on their claims in the competent courts of the state which is the owner or operator of the vessel, and such state may not avail itself of its immunity in respect of actions * * * arising out of assistance, salvage and general average * * *.” (Art. 3.)

Libellants argue that by virtue of the Greek ratification of the Convention in

1950 [Act 1600 (1950)], its provisions inure to the benefit of Greek nationals and, therefore, by operation of Greek law, to the nationals of non-signatory nations such as the United States. (The ■United States has neither ratified nor adhered to the Convention.) The court cannot agree with this reasoning since the Convention contains the restrictive reservation that its

“ * * * provisions * * * may be applied in each Contracting State for the benefit of non-Contracting States and their nationals only on the basis of reciprocity. * * * Furthermore, nothing shall prevent a Contracting State regulating under its own laws the rights granted to its nationals (resortissants) in its own courts.” (Art. 6.)

It is clear, then, from the terms of the Convention that the citizens of signatory nations do not automatically reap its favors. Rather, their treatment is left to the discretion of the individual contracting parties. It is to be noted that the Convention does not preclude recovery by nationals of the United States since the condition of reciprocity, relative to non-signatories, found in Article 6 is satisfied by the Public Vessels Act, supra. Nevertheless, the treaty is of no help to libellants at this juncture for all it does is take us back to where we started.

The domestic law of Greece, however, as interpreted in Nicholas Eustathiou & Co. v. United States, 154 F.Supp. 515 (E.D.Va.1957), provides libellants with a potent argument.

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Bluebook (online)
223 F. Supp. 116, 1963 U.S. Dist. LEXIS 7864, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nicholas-e-vernicos-shipping-company-v-united-states-nysd-1963.