Petroleum Export Corporation v. Kerr SS Co.

32 F.2d 969, 1929 U.S. App. LEXIS 3929, 1929 A.M.C. 905
CourtCourt of Appeals for the Ninth Circuit
DecidedMay 27, 1929
Docket5677
StatusPublished
Cited by9 cases

This text of 32 F.2d 969 (Petroleum Export Corporation v. Kerr SS Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Petroleum Export Corporation v. Kerr SS Co., 32 F.2d 969, 1929 U.S. App. LEXIS 3929, 1929 A.M.C. 905 (9th Cir. 1929).

Opinion

RUDKIN, Circuit Judge.

This case was submitted to the court below on an agreed statement of facts. Some time prior to February 6, 1926, the Petroleum Export Corporation had sold 50,000 eases of kerosene to be shipped from the port of Los Angeles in February or March and was negotiating with the Kerr Steamship Company, Inc., for the transportation of the shipment from the latter port to the port of Shanghai, China. The shipper was informed by the carrier that the motorship Silverpine was due to arrive at the port of Los Angeles about April 2, and the purchaser assented to a shipment by that date. A contract of affreightment was thereupon entered into containing the provision, “Expected time of loading, late March/early April.” On or prior to March 30 the carrier notified the shipper that the vessel would not be available for loading at Los Angeles until after the middle of April, and the purchaser, upon learning of the delay, rescinded the contract of sale. The shipper then notified the carrier that it intended to cancel its contract of affreightment. There was further correspondence between tho parties having no material bearing on our present inquiry. It was also stipulated that at the time the affreightment contract was entered into’ the vessel named therein was in such position that she might reasonably be expected to load at Los Angeles within tho time provided in the contract; that the expectation of the carrier and its agents that the vessel would be ready for loading in late March or early April was an honest one and was based upon reasonable grounds; that any delay in the arrival of the vessel and the loading of the cargo at Los Angeles was not the result of any negligence or fault on the part of the carrier or its agents; and that the carrier at all times used every means known to get the vessel to the port of Los Angeles within *970 the time provided in the contract. The vessel did not arrive at the port of Los Angeles until April 21, and was then unable to arrange for a full cargo to take the place of the cargo covered by the contract in suit. The present libel was thereupon filed to recover damages for breach of the affreightment, contract, and from a decree in favor of the libelant the respondent has appealed.

If the carrier had definitely agreed that the time of loading should be late March or early April, it will perhaps be conceded that a delivery of the vessel for loading on April 21 would not satisfy the requirements, of the contract. But the carrier did not so agree. The language of the contract is “expected time of loading,” and the expected does not always happen. Webster defines “to expect” as, to look forward to as certain or probable. A definite statement as to the time of loading would amount to a warranty, while the expected time of loading amounts to nothing more than a representation. Thus in Heiskell v. Furness, Withy & Co. (C. C. A.) 4 F.(2d) 977, the language of the contract of affreightment was “expected to sail from Newport News and Norfolk last half July/August,” but the ship did not in fact sail from Newport News until two or three weeks after the expected time. In construing this contract the Circuit Court of Appeals for the second circuit, speaking through Judge Hough, said:

“Plaintiff has treated the matter as if the Eibergen’s failure to sail during August at latest was a breach of contract made, and to this we cannot agree.
“The assumpsit sued on is not that any vessel would sail in August, but that a vessel was expected to sail in that month, and the two phrases are not' equivalent. Undoubtedly this tonnage agreement is a mercantile contract, and as such to be interpreted in accordance with its own language and not according to ‘refined constructions which are intelligible only to lawyers, and scarcely to them.’ * * * And when it is observed that not only is the promise distinctly that a vessel is expected to sail within a given period, but that the whole venture is at owner’s risk of delay, it is evident that the parties contemplated some uncertainty in Eibergen’s sailing. Yet in the face of this contemplation of parties, plantiff in effect treats the document as one wherein time is of the essence.
“This is perhaps generally true in mercantile contracts where ‘promptitude in the fulfillment of engagements is the life of commercial success.’ * * * But in this instance defendant never made the promise asserted in the complaint herein, to wit, that it would ‘malee available to plaintiff during the months of July and August, 1919, a ship or ships.’ The promise was quite different, as above set forth.
“Bold v. Raymer, 1 M. & W. 343, is a case . showing a somewhat similar transaction. The action was upon bought and sold notes, one of which contained the statement that the goods bought and sold were ‘expeeted to arrive’ on a certain ship ‘about November or December next.’ A distinguished court held that the words ‘expected to arrive’ made no contract, but were a mere representation. * * *
“Thus the representation was in effect that Eibergen was expeeted to sail not later than August, and there was no contract that she would sail in August. If the representation had been false, and when it was made there was no reasonable expectation of its fulfillment, doubtless an action would lie for such false representation. And if such expectation really existed when representation was made, doubtless also any act on the part of the maker of the representation causing or contributing to its frustration would be likewise actionable.
“But as above set forth, there is no evidence showing or tending to show that the representation was not made in good faith, and it is substantially admitted that delay on the part of the Eibergen was due to a widespread strike in England, to which assuredly defendant had not contributed and for which it was not responsible.
“Nothing is left of plaintiff’s ease except the bald fact that Eibergen sailed from Newport News'between two and three weeks after her expeeted time. We hold that this gave rise to no cause of action in favor of Brode.”

The appellee attempts to distinguish this ease from the Heiskell Case because the contract there involved provided that delay was at the risk of the owner; but that provision was not the basis for the decision. The court below had construed the term “owner” to mean the owner of the ship, and not the owner of the cargo; but the appellate court held that this construction was erroneous. This seems to have been the principal reason for referring to that provision of the contract at all, for in stating the question for decision the appellate court said:

“As events occurred, the vital portion of this contract is that Brode received no more than a certain amount of space on a vessel that was ‘expected to sail’ before the end of August.
“The question presented is: What was the *971 obligation of the defendant under sneh a contract?”

For other cases construing the meaning of the term “expected,” see Johnson’s Adm’r v. McCune, 27 Mo. 171, and Atlantic Coast Line R. R. Co. v. Wells, 130 Ga. 55, 60 S. E. 170.

In Corkling v. Massey, L. R. 8 C. P.

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32 F.2d 969, 1929 U.S. App. LEXIS 3929, 1929 A.M.C. 905, Counsel Stack Legal Research, https://law.counselstack.com/opinion/petroleum-export-corporation-v-kerr-ss-co-ca9-1929.