Page L'Hote Co. v. Munson S. S. Line

125 So. 868, 169 La. 724, 1930 La. LEXIS 1729
CourtSupreme Court of Louisiana
DecidedJanuary 6, 1930
DocketNo. 28794.
StatusPublished
Cited by2 cases

This text of 125 So. 868 (Page L'Hote Co. v. Munson S. S. Line) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Page L'Hote Co. v. Munson S. S. Line, 125 So. 868, 169 La. 724, 1930 La. LEXIS 1729 (La. 1930).

Opinion

THOMPSON, J.

In March, 1923, the Otis Manufacturing Company of New Orleans and the Munson Steamship Line of the city of New York entered into a written contract of affreightment, otherwise called a charter party, whereby the steamship line agreed to transport from certain ports on the Central American Coast, and from the Atlantic Coast of Nicaragua to the Otis Manufacturing plant at New Orleans approximately 45,000 tons of mahogany, and/or cedar logs.

It was stipulated that approximately 10,-000 tons were to be shipped from Frontera or Santana, 10,000 tons from the Belize range, and 25,000 tons from the Nicaraguan Coast.

There was to be a freight charge of $4 per ton on the logs moved from Frontera or Santana, $3.75 per ton on the logs moved from Belize range, and $5.50 per ton on the logs moved from Nicaraguan Coast.

There was to be a charge against the shipper of $225 per day for every day’s detention of the movement of the cargo by default of the said shipper. The term of the contract was to run from July 1,1923, to January 31, 1924, but the shipper had the right to require one steamer during the month of May or June, 1923, on the same terms as fixed in the contract.

The contract stipulated a commission of 2y2 per cent, on the amount of the charter, renewals or .duplications and demurrage, to be paid by the vessel or owner to' Arthur H. Page Company, Limited (now Page L’Hote Company, Limited) and Potter Trapsportation Company.

It is admitted that the commission stipulated was paid to the two steamship brokers during the life of the contract.

On January 30, 1924, the steamship Company and the Otis Manufacturing Company entered into a second contract covering the period from February 1, 1924, to January 31, 1925.

And on December 9, 1924/ the same parties entered into a third contract running from February 1, 1925, to January 31, 1926. On March 15, 1926, the same parties entered into a fourth contract for the period from March 15, 1926, to March 15, 1927.

The last three contracts called for the transportation of 35,000 tons of logs during each contractual term, and it is admitted that the shipper paid over to the steamship line as freight under the three contracts the sum of $373,985.19.

It is upon the amount received by the steamship line under the three contracts mentioned that the plaintiff claims a commission of 1% per cent.

It appears bo be conceded that the contracts on which the commission is claimed were negotiated and consummated by the contracting parties without the intervention of the brokers named in the first contract or that of any other broker or agent.

We do not understand, therefore, that the plaintiff’s claim is based on any service rendered in connection with the last three contracts, or on any special agreement as to a commission for those particular contracts.

The contract for 1923, on which the plaintiff and its New York associate were paid a commission of 2% per cent., contains the following stipulation:

*727 “A commission of 2% per cent, on the amount of this charter, renewals or duplications and demurrage payable by vessel and, or, owners is due on signing of this Charter Party, ship lost or not, charter cancelled or uncancelled, to Arthur H. Page Company Ltd. and Potter Transportation Co.”

. It is upon this stipulation that the plaintiff bases its claim for a commission; the theory being that the words “renewals” and “duplica!ions” include any and all future contracts of affreightment between the same parties for the transportation of like character of logs from any of the foreign ports named to the shipper at New Orleans.

We are . unable to agree with plaintiff in that interpretation of the contract.

Such a construction in our opinion is opposed to the plain language of the contract, and was obviously never contemplated by the parties at the time the contract was made.

It will be observed that in the very beginning of the contract it was stipulated that the steamship line was to furnish all tonnage the shippers may require to move all of the mahogany and/or cedar logs that shippers will have as stipulated further on in the contract, during the term of the contract.

While the tonnage was fixed at approximately 45,000 tons, the' shipper (Otis Manufacturing Company) had the option of furnishing larger cargo, provided this option was declared at the time the requisition of a steamer was made, and the owners (steamship line) were to have the privilege of supplying one or two steamers to move the quantity stipulated for, and, should any small quantity be left over by the steamer, the same was to be held until the next vessel is called for, except the last cargo to be moved when the owners agreed to move the entire quantity the shippers would require.

It was further agreed that the shippers should notify the carriers of the tonnage requirements at least ten days in advance of the loading date. It was further stipulated that steamers should accept on each voyage logs up to five tons, provided that the shipper had the option of shipping logs in excess of five tons, if agreeable to the master of the vessel.

It may be argued that the provisions we have mentioned refer to particular cargoes, and not to an increase of the total tonnage as stipulated.

But, when the contract is carefully considered and' analyzed as a whole, we think it clear that, although the amount of logs was fixed at approximately 45,000 tons, the shipper had the option of increasing that tonnage according to shipper’s requirements on' giving seasonable notice, the excess requisition not to be beyond the transportation facilities of the steamship line; in other words, the contract did not limit the amount of the logs to be transported to exactly 45,000 tons.

That being true, the brokers would have been entitled to their commission on any excess requirements above the tonnage stipulated, and this, we think, is precisely what was meant by the use of the words “renewals” and “duplications.”

The contract was a special contract to be executed during a fixed period of time, and any freight charges earned during that time under that contract were subject to the brokers’ commission.

The provision of the contract we have quoted expressly limits the commission to that contract or charter and to renewals or duplications of that contract, made, of course, during the period fixed in that contract. Any construction which would extend the terms used to any future contract made by the parties after the expiration of the term fixed by that contract would be unreasonable, and manifestly not within the contemplation of the parties.

*729 The brokers prepared the contract, and signed the same with the Otis Manufacturing Company, and, if it had been the intention to provide for a commission on any other and future contract the parties made themselves, it' seems that language could have been employed which would clearly have expressed •such intent.

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Bluebook (online)
125 So. 868, 169 La. 724, 1930 La. LEXIS 1729, Counsel Stack Legal Research, https://law.counselstack.com/opinion/page-lhote-co-v-munson-s-s-line-la-1930.