Petrol Corporation v. Petroleum Heat & Power Co.

162 F.2d 327, 1947 U.S. App. LEXIS 3202
CourtCourt of Appeals for the Second Circuit
DecidedJune 18, 1947
Docket262, Docket 20583
StatusPublished
Cited by23 cases

This text of 162 F.2d 327 (Petrol Corporation v. Petroleum Heat & Power Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Petrol Corporation v. Petroleum Heat & Power Co., 162 F.2d 327, 1947 U.S. App. LEXIS 3202 (2d Cir. 1947).

Opinion

CLARK, Circuit Judge.

Since this action remains pending in the District Court for the fixing of the amount of damages on the liability found by the court, we are faced initially with the question whether the judgment appealed from is final and whether the case is yet ripe for review on appeal. The parties refer to the various claims and cross and’counterclaims filed by them and urge that at least some are separate from those retained below and are within our jurisdiction. On the surface the issue does appear complicated not only by the separated counts of the pleadings, but also by an extensive “Final Decree” and contemporaneous repetitive “Order,” both containing extensive recitals, in violation of Federal Rules of Civil Procedure, Rule 54(a), 28 U.S.C.A. following section 723c, and former Equity Rule 71, 28 U.S.C.A. § 723 Appendix. But upon analysis it becomes clear that all the claims without exception depend on the meaning and interpretation of a single provision of the charter parties controlling the rights of the parties.

The pleadings show that the basic facts are uncontested. It appears that on June 1, 1940, defendant National Bulk Carriers, Inc., as owner, chartered the tanker “Petro-fuel,” then being built, to defendant Petroleum Heat and Power Company, Inc., under a time charter in voyage form for a period of twelve years. On February 17, 1941, before the tanker was delivered, Petroleum subchartered it'to plaintiff, Petrol Corporation, on identical form of charter, with a single exception not pertinent here. Both charters provided for the payment of identical hire on the basis of long tons of cargo carried each voyage, with the rates per ton substantially higher for the first two years than for the later years. After delivery of the tanker and during its second year of operation under the original charter, it was requisitioned by the War Shipping Administration and operated by the owner tinder Government order from April 20, 1942, to February 9, 1946. Since this latter date it has again been operated under the charters. This case involves the adjustment of the relations between the parties. growing out of the Government requisition.

The charter parties were drawn with this contingency in view, for each contained a provision that “any time lost due to strikes, lockouts and labor disputes or requisition by the United States Government preventing vessel’s operation under this charter shall be added to the twelve years’ period of charter.” As National correctly says, “This entire case hinges primarily on this clause.” Petrol asserts that the operation Of the vessel was not in fact prevented, and hence that the freight rate due is at the lower rate of the later years and the term expires in 1953 as originally determined. National claims that operation under the charter was prevented go that the freight rate for the second year is still payable and the term is automatically extended beyond 1953 for a period equivalent to the period of Government requisition. Petroleum, in between, has made alternative claims against each of the others; in its brief it generally supports the position of National. And the District Court has fully accepted National’s view.

Turning now to the pleadings we find that Petrol in its complaint has set forth three separately stated claims: a “first claim” for the additional sum, alleged to be $550,000, over the charter hire received either by National or by Petroleum for operation of the vessel during the period of requisition; a “second claim” for excess charter hire (i.e., under the rate for the earlier year) demanded and received by Petroleum for use of the vessel during February and March, 1946; and a “third claim” for a declaratory judgment in accordance with its interpretation of the charter-party provision. National answered with denials and defenses of failure to state a claim as against the plaintiff, and two cross-claims as against Petroleum; a claim *329 for charter hire based on the rate for the second year (after the two months paid) which Petroleum had refused to pay; and a claim for a declaratory, judgment according to its interpretation of the charter party. Petroleum answered with denials and defenses and a counterclaim for deficiency in charter hire, as claimed by National against it; then it added three cross-claims against National — one for failure to pay over to it the $550,000 excess over charter hire received during the period of requisition, another for the alleged over-payments for the voyages in February and March, 1946, and the other for a declaratory judgment according to its interpretation of the agreement.

The District Court declared the rights of the parties under both charters in the form contended for by National (granting both National’s and Petroleum’s claims for such judgment and denying Petrol’s claim), granted National’s motion for partial summary judgment against Petroleum on its first cross-claim “for such amount as may be found to be due National as damages,” granted Petroleum’s like motion on its counterclaim against Petrol “for such amount as shall be found to be due Petroleum as damages,” and denied Petroleum’s other motions and all motions by the plaintiff. Hence all claims by the plaintiff were dismissed, the rights of the parties were declared, and the action was retained for the court to ascertain the deficiency in charter hire, under this interpretation of the charter parties, due Petroleum from Petrol, and due National, in turn, from Petroleum.

The case is therefore one where the parties have differed as to the interpretation of a contract provision and the court has gone so far as to decide the meaning of the contract, but has not yet fixed the damages for the winning parties. No reason appears why it has not done so; the computation would now seem to be comparatively simple, if not ministerial in nature. But until that is done the judgment is not final. As has been often pointed out, the rules stress the “transaction or occurrence” as the “subject matter” of a claim, rather than the legal rights arising therefrom. F.R.C.P., Rule 54(b); Reeves v. Beardall, 316 U.S. 283, 285, 62 S.Ct. 1085, 86 L.Ed. 1478; Audi Vision, Inc. v. RCA Mfg. Co., 2 Cir., 136 F.2d 621, 624, 147 A. L.R. 574; Original Ballet Russe v. Ballet Theatre, 2 Cir., 133 F.2d 187, 189; cases collected, Clark, Code Pleading, 2d Ed. 1947, 141, 147, 148. Hence the mere fact that different claims are made arising out of this one contractual provision is not sufficient separation of the “causes” so that piecemeal appeal is permissible. Audi Vision, Inc. v. RCA Mfg. Co., supra; Libbey-Owens-Ford Glass Co. v. Sylvania Industrial Corp., 2 Cir., 154 F.2d 814, certiorari denied Sylvania Industrial Corp. v. Libbey-Owens-Ford Glass Co., 328 U.S. 859, 66 S.Ct. 1353, 90 L.Ed. 1630; Photometric Products Corp. v. Radtke, 2 Cir., 157 F.2d 849; U.S. ex rel. Weinstein v. Bressler, 2 Cir.,

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Bluebook (online)
162 F.2d 327, 1947 U.S. App. LEXIS 3202, Counsel Stack Legal Research, https://law.counselstack.com/opinion/petrol-corporation-v-petroleum-heat-power-co-ca2-1947.