Orient Mid-East Lines, Inc. v. Shipment of Rice

496 F.2d 1032, 1974 U.S. App. LEXIS 7914
Court of Appeals for the Fifth Circuit·Decided June 27, 1974·No. No. 73-2096·Published·Cited by 18 cases

Opinion

WISDOM, Circuit Judge:

Damage sustained by the S.S. Orient Transporter draws us into the esoteric world of “general average”, the ancient maritime doctrine that “loss for the common benefit which is incurred by one who partakes in a maritime venture should be shared ratably by all who participate in the venture”. Cia. Atlantica Pacifica, S.A. v. Humble Oil & Refining Co., D.Md.1967, 274 F.Supp. 884, 891. General average may go back to the Phoenicians, but undoubtedly it was practiced in Rhodes at least as early as 300 B.C., and was accepted throughout the Mediterranean world long before it was neatly formulated in the Digest of Justinian. Its fundamental principle is stated in a chapter in the Digest headed Lex Rodia de Jactu: If goods are thrown overboard in order to lighten the ship, what is sacrificed for the common good should be made good by a common contribution. Dig. XIV, 2, 1 pr. See F. Sanborn, Origins of The Early English Maritime and Commercial Law 5, 14-16 (1930); R. Lowndes & G. Rudolph, The Law of General Average fl]] 1-3 [1035]*1035(9th ed. 1964) 1 Today the principle covers a wide range of maritime losses, from damage done in quenching a shipboard fire to expenditures incurred in a port of refuge. General average concepts are not free floating maxims of admiralty law. They have been made subject to the Carriage of Goods by Sea Act (COGSA), 46 U.S.C. §§ 1300-1315, 2 and the York/Antwerp Rules, modern codifications of Lex Rodia de Jactu, are typically incorporated in charter parties and bills of lading.

The plaintiffs-appellants sought general average contribution for damage sustained by the Orient Transporter in two different incidents — grounding in the Neches River, Texas, and destruction of the ship’s high pressure turbine on the high seas. The district court held that under COGSA general average does not apply to the damage sustained by the Orient Transporter, because the damage was caused by unseaworthiness and the plaintiff shipowners 3 in neither instance exercised due diligence to make the ship seaworthy. The South Vietnamese interests, the defendants-appellees, counterclaimed for expenses incurred in unloading, storing, inspecting, fumigating, and reshipping the cargo after the Orient Transporter lost her propulsion system through the destruction of her high pressure turbine. In addition, they counterclaimed for recovery of a deposit paid as the cargo’s general average share of the salvage expenses incurred in towing the Orient Transporter to Panama and then back to Beaumont, Texas, after the turbine damage. The district court held that the claim for unloading, inspecting, fumigating, storing, and reshipping expenses was barred by COGSA’s one year statute of limitations. 46 U.S.C. § 1303(6). The court awarded the defendants-appellees $61,933.99 plus interest, as the deposit in the salvage action. We affirm.

I. FACTS

On April 15, 1970, Orient Mid-East Lines, Inc. contracted with the Commodity Credit Corporation of the United States Department of Agriculture, acting on behalf of the South Vietnamese Government, to transport 10,000 long tons of rice from the United States to Vietnam. The vessel to be used, the S.S. Orient Transporter, was warranted to be “tight, staunch, and strong, and in every way fitted for the voyage”. The charter party incorporated COGSA4 and contained a “Jason clause”:

In the event of accident, danger, damage or disaster before or after the commencement of the voyage resulting from any cause whatsoever, whether due to negligence or not, for which, or for the consequence of which the carrier is not responsible by statute, contract or otherwise, the goods, consignees or owners of the goods shall contribute with the carrier in General Average to the payment of any sacrifices, losses or expenses of a General Average nature that may be made or incurred in respect of the goods.

Any general average contribution was to be payable according to the York/Antwerp Rules, 1950.

The Orient Transporter took on a full cargo of rice at Mobile, Alabama, and Beaumont, Texas. At Mobile repairs were made to the starboard boiler. A surveyor from Lloyd’s Register of Shipping noted on May 27, 1970, that the port boiler should undergo similar repairs “at the earliest opportunity, but [1036]*1036not later than 7/70 (2mos)”. Loading of rice continued at Beaumont and was completed on June 6, before the port boiler had been repaired. Because the port authority at Beaumont wanted to use the loading berth for another ship, the Master of the Orient Transporter took the ship, under the guidance of a pilot, to an abandoned ship channel in the Neches River where she was intentionally grounded on the soft silt bottom to permit repair work on the port boiler. The bottom of the Neches River proved an unsuitable anchorage, however, apparently because the main condenser and other piping was blocked by silt. With difficulty the ship was removed from the mud and silt. When the ship finally broke free, it moved rapidly backwards across the river. Because of poor communications between the Master and the engine room and a lack of power,5 the ship did not reverse its direction until the stern barely avoided a dock and a cluster of pilings on the opposite side of the river. When the ship finally moved forward, it again traversed the channel and again grounded its bow in the mud and silt. It was then low tide, and the vessel could not free itself; the Master decided to wait until high tide the next morning. Before dawn the Master discharged 179 tons of fresh water. Later, at high tide, the vessel was floated with the aid of a tug boat and proceeded back to Beaumont for repairs. The Neches River episode resulted in expenses of $8,990.84.

After repairs were finally completed, the Orient Transporter sailed for Vietnam by way of the Panama Canal. At the time it left the pier on June 14, 1970, the ship’s engine room crew was short at least one fireman, two oilers, and a wiper, but the wiper, one Fetaxidis, and an oiler were later returned to the ship by the police before the ship left American waters. In Fetaxidis’s absence, he was signed off as a wiper and signed on as a fireman, a step up in the engine room hierarchy. Fetaxidis was 17 or 18 years old and had no record of formal or informal training as a fireman.6

A fireman shoulders considerably more responsibility than does a wiper. Testimony at trial established that a wiper’s duties are essentially janitorial. A fireman, on the other hand, must know at all times the water level in the boilers. It is a vital task: too little water can result in an explosion; too much water can result in an overflow into the turbines which will destroy the turbine blades. The fireman also regulates the water level, by opening and closing feed lines. At the trial an expert testified that a fireman should always inform the engineer on watch if he has opened an extra feed line.

Free access — add to your briefcase to read the full text and ask questions with AI

Orient Mid-East Lines, Inc. v. Shipment of Rice, 496 F.2d 1032, 1974 U.S. App. LEXIS 7914 (5th Cir. 1974).

496 F.2d 1032 (Orient Mid-East Lines, Inc. v. Shipment of Rice) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Sealift Bulkers, Inc. v. Republic of Armenia
96 F. Supp. 2d 1 (District of Columbia, 2000)
Royal Insurance Co. of America v. Cineraria Shipping Co.
894 F. Supp. 1557 (M.D. Florida, 1995)
Louis Dreyfus Corp. v. 27,946 Long Tons of Corn
830 F.2d 1321 (Fifth Circuit, 1987)
Holsatia Shipping Corp. v. Fidelity & Casualty Co.
535 F. Supp. 139 (S.D. New York, 1982)
Alamo Chemical Transportation Co. v. M/V Overseas Valdes
469 F. Supp. 203 (E.D. Louisiana, 1979)
The Dow Chemical Company v. Ashland Oil, Inc.
579 F.2d 902 (Fifth Circuit, 1978)
American African Export Co. v. S.S. Export Champion
442 F. Supp. 715 (S.D. New York, 1977)
Cerro Sales Corp. v. Atlantic Marine Enterprises, Inc.
403 F. Supp. 562 (S.D. New York, 1975)
Todd Shipyards Corporation v. United States
391 F. Supp. 588 (S.D. New York, 1975)
Slaughter v. Ronde
390 F. Supp. 637 (S.D. Georgia, 1974)
Orient Mid-East Lines, Inc. v. Shipment of Rice
496 F.2d 1032 (Fifth Circuit, 1974)