Pensacola Shipping Co. v. United States Shipping Board Emergency Fleet Corp.

277 F. 889, 1922 U.S. App. LEXIS 2831
CourtCourt of Appeals for the Fifth Circuit
DecidedJanuary 25, 1922
DocketNo. 3772
StatusPublished
Cited by13 cases

This text of 277 F. 889 (Pensacola Shipping Co. v. United States Shipping Board Emergency Fleet Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pensacola Shipping Co. v. United States Shipping Board Emergency Fleet Corp., 277 F. 889, 1922 U.S. App. LEXIS 2831 (5th Cir. 1922).

Opinion

WALKER, Circuit Judge.

This was a libel by the appellant, Pensacola Shipping Company, against the appellee, United States Shipping Board Emergency Fleet Corporation, to recover the amount of payments made by the appellant for coal and other necessaries furnished to the steamship Belair, a vessel belonging to the appellee, between the date of its arrival at the port of Pensacola' on January 10, 1920, and its departure therefrom on January 28, 1920. The evidence adduced showed that the amounts claimed were paid by the appellant under the following circumstances:

On December 22, 1919, a New York firm of ship agents sent to the appellant at Pensacola a telegram, of which, omitting the address and signature, the following is a copy:

“Dale Universal have Belair due Pensacola ‘first Jany. to load lumber for Plate can arrange ag.ency for you fifty dollars want quotation five hundred bunkers wire whether agency acceptable you stop they intimate possibly have several sailings monthly.”

On the next day the appellant replied to that telegram by one stating, “Dale Universal agency acceptable at fifty dollars,” and quoting [891]*891price of bunker coal. By a letter dated December 24, 1919, the Dale Universal Line, through its agents, Dale Forwarding Corporation, appointed the appellant as its agent for the Belair while at_ Pensacola. A letter of instructions to the appellant, dated December 27th, advised it that its principal was a time charterer of the vessel, and contained the following:

disbursements, yon will kindly send us your full accounts Immediately upon completion of vessel and we will then reimburse you.”

The appellant handled the agency according to the charterer’s instructions. The disbursements, except a small amount for telegrams, ,were made by paying bills for the supplies, etc., rendered against the vessel itself and approved by its master. Soon after the vessel sailed from Pensacola the appellant sent a statement of the disbursements it had made to the charterer’s New York agent, and requested payment thereof. The account was returned with a letter directing that it be sent to the appellee for payment. In response to a letter from the appellant on the subject, the appellee declined to pay, denying liability foi disbursements for which the ship was not responsible under the terms of the charter party. What was alleged to be a copy of that instrument was made an exhibit to the appellee’s answer.

[1] In argument attention was called to the fact that the record does not show that the exhibit to the appellee’s answer was proved to be a copy of the charter party under which the Belair was being operated at the time the supplies in question were furnished. Language used m file memorandum opinion rendered by the trial judge plainly indicates that the court treated that instrument as before it for consideration as evidence in the case, reference being made to the provision of the charter party requiring the charterers to pay for coal, etc., furnished to the ship. There being nothing in the record to indicate that the appellant raised any objection to this action of the court, it is to be inferred that the court’s treatment of that instrument as evidence in the case was acquiesced in by the appellant.

[2] The charter party contained a provision requiring the charterer to provide and pay for coal and other things which were paid for by the appellant. That provision, under the proviso contained in section 3 of the Act of June 23, 1910 (36 Stat. 605 : Comp. Stat. § 7785), prevented tire furnishing of the coal and other necessaries from having the effect of giving rise to a lien on the ship, or a claim against its owner, therefor, if the furnisher knew, or by the exercise of reasonable diligence could have ascertained, the terms of the charter party. The evidence showed that, when the coal and other necessaries were furnished and paid for, the appellant did not know of the terms of the charter party. It affirmatively showed that the appellant acted under the agency it accepted, and made the payments in question without making any'effort to get information as to the terms of the charter party, of the existence, of which it was apprized as above stated; it being disclosed that, though the appellant was in communication with the charterer several weeks before the vessel’s arrival at Pensacola, it did not ask for a copy of the charter party, or for information as to its terms, until, in a letter writ[892]*892ten to the appellee after the latter had denied responsibility and refused payment, it. requested to be furnished a copy of the charter party, or of the form used in making the contract between the appellee and the charterer. It is apparent that the appellant exercised no diligence at all to ascertain the terms of the charter party before making payments in pursuance of the charterer’s directions.

The evidence as to the circumstances under which the appellant was-put on inquiry as to the terms of the time charter party referred to in a letter to it from its principal, the charterer, persuasively calls for the conclusion that, if the appellant had exercised reasonable diligence, it would have ascertained, before it made the payments in question, that, both its principal, the charterer, and the master, were without authority to bind the vessel or its owner therefor. As above stated, the appellant was in direct communication with the charterer during a considerable time before it was called on to make payments in pursuance of the charterer’s instructions and on the faith of the latter’s promise of reimbursement. Under the circumstances the agent reasonably could have expected that an inquiry of its principal would elicit information as to the terms of the charter party bearing upon the question of the right or lack of right to bind the .vessel for supplies or other necessaries furnished or paid for at the instance of the principal. The agent was entitled to be informed by the principal in that regard, as no liability of the ship or its owner would result from payments made for supplies required to be furnished and paid for by the principal, the charterer. If information as to the terms of the charter party had been withheld after a timely request therefor, it is not to be supposed that the agent would have made the disbursement pursuant to the principalis instructions, unless the agent! intended to look to the principal alone for reimbursement, or was influenced by the mistaken belief that the vessel would be responsible for the value of the supplies and other necessaries so- furnished, whether by the terms of the charter party the charterer was or was not required to provide and pay therefor.

The fact that the appellant was in touch with the charterer a considerable time before the payments in question were made distinguishes-the instant case from the case of W. G. Coyle & Co. v. North America Steamship Corporation (C. C. A.) 262 Fed. 250. In the cited case there was no evidence tending to prove that any one who was to be presumed to be able to furnish information as to the terms of the charter party was within reach of the libelant at or prior to the time the supplies were furnished. We think that the evidence in the instant case warrants the conclusion that the appellant’s ignorance of the terms of the charter party is to be attributed to its negligent failure to try to get that information before it paid for the coal, etc.

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Bluebook (online)
277 F. 889, 1922 U.S. App. LEXIS 2831, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pensacola-shipping-co-v-united-states-shipping-board-emergency-fleet-ca5-1922.