Rand v. Lockwood

16 F.2d 757, 1927 U.S. App. LEXIS 3632, 1927 A.M.C. 219
CourtCourt of Appeals for the Fourth Circuit
DecidedJanuary 11, 1927
DocketNo. 2565
StatusPublished
Cited by11 cases

This text of 16 F.2d 757 (Rand v. Lockwood) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rand v. Lockwood, 16 F.2d 757, 1927 U.S. App. LEXIS 3632, 1927 A.M.C. 219 (4th Cir. 1927).

Opinion

BOSE, Circuit Judge.

This is a salvage case, in which the owner of a gasoline motor yacht complains that a salvage award of $2,-500 is excessive. The parties will be spoken of as the owner and the salvor; the boats, as the yacht and the tug.

The yacht was a wooden pleasure craft driven by gasoline motors, and was approximately 75 feet over all, with a beam of 13 feet and a depth of 4. On the afternoon of January 28, 1926, she was tied up at filling station No. 1 on the north side of Adger’s wharf in Charleston harbor and within a few feet of two gasoline pumps. The stem of another wooden vessel was within 4 feet of her. She had finished filling her two engine room tanks with gasoline. One of them had a capacity of 100 gallons and the other of 175. There were 600 additional gallons in her other tanks. The caps on those newly filled were being screwed down, when there was an explosion in the room. It was immediately enveloped in flames, which leaped 15 feet in the air. Three of the crew, including the master, were on board. They jumped into the water; the master having been burned and the clothing of another one of her men having been set on fire. The first [758]*758thought of thé master and the others on the wharf was to get the yacht away from the filling stations before the gasoline in them was ignited. Her lines were loosened, and she was pulled by man power to the end of the wharf and cast adrift.

At the time of the explosion the tug was tied up in the same slip, but on its opposite side and 150 feet nearer the stream. She had steam up and a full crew of four persons on board. Two deck hands from a pilot boat were standing at the time on the wharf, and sprang aboard her to assist in the salvaging. She was a wooden boat about 100 feet long and with engines of 450 horse power. She was worth about $40,000. She had a powerful pump, capable of handling eight 2%-ineh streams. She was otherwise equipped for salvage service, in which she had been frequently engaged. Indeed, as the city of Charleston has no municipal fireboat, she is often so used under an arrangement by which her services are paid for at the rate of $50 per hour. For ordinary towing work she charges $25. Shortly after the explosion took place, she cast off her lines, followed the yacht out of the slip into the stream, and from some distance threw a stream of water on it. This soon checked the fury of the flames, and the tug’s people went aboard the yacht and extinguished the remains of the fire. All was over in less than half an hour.

The advocates for the owner say the tug incurred very little, if any risk, in rendering the service; that her labor was not severe, and was of but 15 minutes’ duration; that she did not render her services as promptly as she could and should have done, and that this delay was the immediate cause of the extensive damage to the yacht; that there was no evidence of any skill, courage, or judgment in the service which was given; and that the District Court should have held that there was a presumption against the tug, because it did not call some of the witnesses who were familiar with the facts. The learned District Judge after considering the evidence of many witnesses, most of whom testified in open court, in a carefully considered and able opinion, held that the tug and her crew were in considerable danger, were exposed to a risk such as no prudent, sensible man would care to take without a very strong incentive of either duty or interest, and that, while the time consumed was small, what was done was all that was required, that it was valuable, and that the service was rendered with promptness, skill, and courage. We are not persuaded that he was wrong in any of these matters, and we do not see that, in view of the ample volume of testimony which was produced, the calling of other witnesses-would have served any good purpose.

More consideration must be given to the owner’s contention that there was error in the finding that the yacht was worth $25,000 before the explosion and fire and $12,500' after the latter had been extinguished. She was built in 1917 at a cost of $42,000. The government took her over for war uses, and in 1919 sold her at auction for $7,800. In the late fall of 1924, or early winter of 1925, she was put in the hands of an agent at Miami for sale. For three months he tried to get a purchaser at $10,000 or more, but failed to do so. In March of 1925, he sold her for $9,000 to the present owner, who insured her for $12,000.

The libelant offered testimony to the effect that to reproduce her new would now cost from $47,000 to $65,000; that in her damaged condition she was worth somewhere between $18,000 and $30,000. The respondent’s witnesses valued her after the fire at from $4,-000 to $5,000, and an experienced New York yacht broker said that before the fire $10,-000 could have been readily obtained for her, 'and that he thought by a proper sales campaign as much as $12,000 could have been gotten. He supported his opinion by examples of the prices paid for other boats of about the same size and intended to serve the same purpose. It would have cost $12,-500 after the fire to restore her to the condition she was in before it. For $5,000 the owner had arranged to have made some, but not all, of the repairs he contemplated. ' The testimony is not quite clear as to how much more he intended to spend on her, but, although the indications are that it was a substantial sum, it would not have been sufficient to have made her as fine a boat as she-was before the accident.

Indeed, the controversy as to her real value in the last analysis grows out of the fact that, for a boat of her size and comfortable-cruising .radius, she was finished very luxuriously and very expensively. On at least two-occasions she was sold for far less than it would have cost to reproduce her, even after-allowing liberally for depreciation, simply because nobody could be found who was willing to pay more for her. The learned District Judge thought that these facts proved that there was no real market for her, and' that therefore her reproduction cost must play the principal part in fixing her worth' for salvage purposes. He found that, if" consideration was given to nothing other than; [759]*759the cost of reproduction and to general and special depreciation, the latter from some dry-rot in her timbers, she was worth before the -explosion $27,000, but that the evidence as to what she had fetched or would fetch in the market should be given sufficient weight to cut that total down $2,000 or to $25,000.

It may be that, in appraising property for salvage purposes, the salvor is entitled to have it valued at the most it is worth to its owner. If it is something which is freely bought and sold, that value will be what it will bring in the market, less whatever it may reasonably cost the owner to put it in marketable condition. There may, moreover, be circumstances under which it cannot be sold at all, or in which anything to serve its owner’s purpose cannot be found in the market, and yet it is really valuable to him, either for its earning capacity or for the pleasure he gets out of it. If so, the worth of that which the salvor saved for him must be determined in some other way than by inquiring what somebody else will pay for it. .If its value lies in its earning capacity, it should be appraised accordingly, unless it could be reproduced for a smaller sum, after due allowance had been made for the time lost during such reproduction.

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16 F.2d 757, 1927 U.S. App. LEXIS 3632, 1927 A.M.C. 219, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rand-v-lockwood-ca4-1927.