Pioneer Oyster Co. v. Puget Sound Pulp & Timber Co.

41 F. Supp. 919, 1941 U.S. Dist. LEXIS 2567
CourtDistrict Court, W.D. Washington
DecidedNovember 17, 1941
DocketNo. 8
StatusPublished

This text of 41 F. Supp. 919 (Pioneer Oyster Co. v. Puget Sound Pulp & Timber Co.) is published on Counsel Stack Legal Research, covering District Court, W.D. Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pioneer Oyster Co. v. Puget Sound Pulp & Timber Co., 41 F. Supp. 919, 1941 U.S. Dist. LEXIS 2567 (W.D. Wash. 1941).

Opinion

BOWEN, District Judge.

This is an action commenced January 17, 1940, by plaintiff corporation for the benefit of itself and other associates who assigned their claims to it (plaintiff and its assignors all being hereinafter referred to as plaintiff) against the defendant pulp manufacturing company to recover damages alleged to have been caused by defendant’s waste sulphite pulp liquor and waste pulp fiber to plaintiff’s oysters (known as Japanese or Pacific oysters) on their beds in Padilla Bay near Anacortes, Skagit County, Washington, and for injunctive relief against similar future acts and damages.

The case being one of equitable cognizance was tried by the court without a jury. The trial consumed about 30 days, and the transcript of the trial proceedings covers about 4,335 pages. In company with counsel on both sides, the trial judge during two days viewed the oysters on the beds, the defendant’s Bellingham pulp mill, and other things and conditions in and about Bellingham and Padilla bays and Anacortes Harbor deemed by counsel material to the trial.

The issues are simple. Plaintiff claims that the discharge by defendant from its two pulp mills (one at Bellingham and one at Anacortes) of waste sulphite pulp liquor and waste pulp fiber into the tidewaters of Bellingham Bay and Anacortes Harbor has caused and continues to cause a poisonous pollution of those waters, and that this pollution has found and in increasing [920]*920amounts continues to find its way into the waters of Padilla Bay over plaintiff’s oyster beds, injuring plaintiff’s oysters and killing many of them, with the result that, although the oysters were in good marketable condition prior to 1938, during that year and subsequently they have become worthless except for a small transplantation value, all to plaintiff’s damage in the total sum of $1,780,000.

Defendant, although admitting discharge of its waste sulphite pulp liquor into tidewater adjacent to its pulp mills, denies that plaintiff’s oysters have been or will be damaged thereby, and affirmatively alleges that (1) plaintiff’s action is barred by the statute of limitations; (2) that plaintiff’s action is also barred by laches because at no time before it was commenced did plaintiff or its predecessors in interest make any complaints or any claim of damage to the oysters from defendant’s pulp mill operations, and during the period since plaintiff began the planting and cultivating of the oysters defendant has spent and become obligated to spend large sums of money in carrying on defendant’s operations and expanding its facilities, and plaintiff should have notified defendant of any claimed damage to oysters; (3) that plaintiff has no capacity to sue for the assignors; (4) that plaintiff is not the real party in interest; and (5) that the oysters were improperly planted, cared for, cultivated and prepared for sale, and plaintiff and its associates were unable to find or provide a market for the oysters.

The defendant’s pulp mills at Anacortes and Bellingham commenced regular production of pulp in 1926. The Bellingham mill shows generally an annual increase in production from 1,230 tons of pulp in 1926, to a high of 100,839 tons in 1940. The Anacortes mill production has been much smaller, but it increased annually from 8,355 tons in 1926 to 16,167 tons in 1930, dropped back to 8,725 tons in 1931, produced nothing in 1932, produced 8,998 tons in 1933, and ranged from 20,487 to 27,297 tons among the years 1934-1940, except for the years 1938 and 1939. The Bellingham mill’s production jumped from 47,682 in 1938 to 87,577 tons in 1939, but the Anacortes mill produced nothing in 1938 and only 6,839 tons in 1939.

Defendant’s mills produce unbleached sulphite pulp and that pulp manufacturing process comprises, among other things, the 7 to 12 hours cooking of chipped pulp wood (principally hemlock) in digestors containing a solution of 2,000 gallons of cooking liquor and 30,000 gallons of fresh water per ton of pulp produced. The cooking liquor contains approximately 260 lbs. of sulphur and 342 lbs. of lime rock (per ton of pulp produced) dissolved in about 2,000 gallons of fresh water (per ton of pulp produced). After the cooking process is completed the digestor liquor containing the cooked wood fiber and cooking liquor is put through washing and screening processes in which more fresh water is used and then the pulp goes to the pulp machines where it is formed into sheets and dried, The water used in the various processing operations, containing the cooking liquor, is finally discharged into the sewer and into tidewater adjacent to the mill. Also some wood fiber wasted through plant shut downs is deposited on the bottom in tidewater near the mouth of the sewer.

The Anacortes mill is 3 nautical miles from the south end Padilla oyster beds and 4y2 miles from the north end beds or Lundin Tract. The Bellingham mill is 12 miles from the north end beds or Lundin Tract and 16 miles from the south end beds.

In 1930, R. H. Bailey and Alfred H. Lundin each had 50 boxes of Japanese oyster seed planted on their respective tide lands in the south and north ends of Padilla Bay. The results in the growth and quality of oysters produced from these initial plantings were successful, and in October, 1931, Mr. Bailey, Mr. Lundin and Mr. H. J. Waters organized the Padilla Point Oyster Company, a corporation, to further the commercial production of Japanese oysters in Padilla Bay. Mr. Bailey acquired from his brother a 943-acre tract of tide land in the south end of that Bay which he subdivided and sold in one-acre tracts to numerous persons who in turn leased their lands to and entered into oyster seed purchasing and pooling agreements with the Oyster Company for the planting, care, cultivating and marketing of oysters for the pro rata benefit of all concerned. Mr. Lundin acquired an 800-acre tract in the north end of the Bay, the planted portions of which were pooled in the same way, and some other growers have come into the pooling agreements.

The oysters involved in this action are those produced from seed planted as follows: 18,820 boxes in 1933; 47,716 boxes in 1934; 8,546 boxes in 1935 and 600 boxes planted in 1936; total boxes of seed planted [921]*921in those years, 75,682. Some of these were planted on the Lundin beds in the north end of the Bay and some on the beds of the south end. The production and marketing of oysters from these plantings, either as fresh or canned oysters, or canned .oyster soup, progressed successfully until the fall of 1936 when marketing was halted by a longshoremen’s strike which lasted until February, 1937. Then followed the nation’s economic recession of that year, with the result that marketing operations for this oyster business was at a standstill for approximately a year from the fall of 1936 to near the end of 1937. Through the winter months of 1937-38, the fall of 1938 and winter of 1938-39, oyster sales from the Padilla Bay beds were confined to the fresh oyster market demand of one wholesaler. This fresh oyster market, however, was lost to Padilla oysters in 1939, because of the poor condition of the oysters and the decrease in oyster meats yield, when it was said to take too many oysters in the shell to shuck out a gallon of fresh oyster meats. The result was financial disaster to the Company and loss of its business.

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Bluebook (online)
41 F. Supp. 919, 1941 U.S. Dist. LEXIS 2567, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pioneer-oyster-co-v-puget-sound-pulp-timber-co-wawd-1941.