Richardson & Sons, Ltd. v. Jenkins S. S. Co.

44 F.2d 759, 1930 U.S. App. LEXIS 3433, 1931 A.M.C. 315
CourtCourt of Appeals for the Sixth Circuit
DecidedNovember 5, 1930
DocketNo. 5487
StatusPublished
Cited by2 cases

This text of 44 F.2d 759 (Richardson & Sons, Ltd. v. Jenkins S. S. Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Richardson & Sons, Ltd. v. Jenkins S. S. Co., 44 F.2d 759, 1930 U.S. App. LEXIS 3433, 1931 A.M.C. 315 (6th Cir. 1930).

Opinion

MOORMAN, Circuit Judge.

This is a libel in rem against a cargo of barley shipped under charter agreement in the barge “Alexander Maitland” from Ft. William, Ontario, to Port Huron, Michigan. The cargo was loaded by the charterer, the McLaughlin Grain Company, Limited. Bills of lading were issued by the master stating that the destination of the grain was Port Huron, Mich., for export to the United Kingdom. The Grand Trunk Elevator was designated 'in the bills as the care party at Port Huron. The barge arrived at Port Huron in tow and was made fast alongside the Grand Trunk Elevator on December 7, 1924. The unloading of the cargo- began the same day and continued, with intervals of suspension at night, until December 9th at -5:15 a. m., when a fire starting in the elevator destroyed it and was communicated to the barge, re-[760]*760suiting in damage to the barge and her cargo. About one-fourth of the cargo had been un-; loaded when the fire occurred. During the progress of the fire it beeame necessary to' move the barge in order to save the cargo. There was no other grain elevator at Port' Huron, and the barge was towed a short distance from the elevator dock to a coal1 dock. The following day libelant formally abandoned the barge to the hull underwriters as a total loss. No advice was received from any of the underwriters, concerning the abandonment except the Glenns Palls Insurance Company, which by letter of January 13, 1925,, declined to accept the abandonment. Later, after .the libel herein was filed, the several underwriters paid their respective shares of the hull loss. On the day of the fire, and before the abandonment of the barge, libelant made demand on the McLaughlin Company for payment of the freight. Upon the refusal of payment by that company, notice was given to it that a libel would be filed, and the master was instructed to retain the cargo until the freight was paid. Thereafter the McLaughlin Company paid the freight on that part of the cargo that was unloaded before the fire. Shortly after the fire the cargo underwriters took charge of the grain remaining on the barge, and on December 13th made a sale of it to claimants under a bill of sale reciting that “it is understood and agreed by the said grantees that said cargo is sold as is and where is and all expenses in connection with the unloading and taking possession of said cargo, including the expense of moving said vessel from the unloading point to a mooring place within the limits of the harbor of Port Huron, Michigan, and also including any imposts or duties that may be levied against the same shall be borne by said grantees.” Prior to the sale representatives of the claimants went aboard the barge, and, without informing the master that they were interested in the grain, asked and received his permission to examine it. On December 14th claimants caused the barge to be towed, with the consent of its master, to another dock where they had prepared means for Unloading the remainder of the cargo. The libel was filed December 15th, and the -following day the cargo was seized by the United States Marshal. Bond was executed by claimants promptly thereafter and the cargo released and unloaded. .The barge was sold by the underwriters on January 20th, and libelant at their request executed to the purchaser a bill of sale. No claim to the unpaid freight involved here has ever been made by the hull underwriters.

The proofs show that the master remained in charge of the barge until January 13,. 1925, when he gave up possession to a ship-keeper, who remained aboard until the barge was sold by its underwriters. It appears that the sale of the cargo to claimants was. made by an adjuster for the cargo underwriters. There is a dispute in the evidence-'as to whether claimants had unloaded any (part of the cargo at the time the attachment was served. We think the 'preponderance of evidence .shows that they had not.. /This -was the finding of the trial court in sustaining the libel.

It is contended by the claimants that (1) libelant did not earn the freight on the cargo-.by making delivery thereof according to- contract; (2) that it was not in possession of the cargo at the time the libel was issued and had no lien for the freight; (3) that the libel was prematurely filed; and (4) that libelant is estopped from claiming a lien for the freight as against the claimants. The abandonment of the barge by libelant to its hull’underwriters forms the basis of all these contentions.

The contract of affreightment was for “safe custody and due transport and right delivery of the cargo,” and, as stated, designated as the care party at Port Huron the Grand Trunk Elevator. The evidence shows that the cargo was safely transported to Port Huron and the barge moored alongside the dock of the Grand Trunk Elevator in a position to be unloaded, and that the unloading was commenced, but was interrupted by the fire. The charter and bills of lading were silent as to what would constitute delivery. Upon this point, therefore, the court permitted libelant to make proof of the custom and usage of the port. This, we think, was proper. Richardson, etc. v. Goddard, etc., 64 U. S. (23 How.) 28, 16 L. Ed. 412; Constable v. National Steamship Co., 154 U. S. 51, 14 S. Ct. 1062, 38 L. Ed. 903. It was shown in the proofs that under the port custom it was the duty of the Grand. Trunk Elevator, as agent of the cargo- owner, to furnish the place for and bear the expense of discharging the cargo, and that the only expense that libelant was bound to bear was the charge made by the elevator for the use of the power shovel or other means for getting the grain to the foot of the elevator leg in the ship. This latter expense the libelant was prepared to pay. Moreover, it moored its barge alongside the elevator in position for unloading and made a. tender of delivery according to the custom of the port. [761]*761The caretaker actually accepted the delivery after opportunity for inspection and had unloaded a part of the cargo when the fire occurred, and after the fire libelant stood by ready to have the unloading finished until a complete delivery was effected by the claimants’ acceptance of the remainder of the cargo on hoard the barge. We have no doubt that in these circumstances and under the port usage thus shown the libelant earned its freight. The James H. Hoyt (D. C.) 299 F. 666; In re Southern Alberta Co. (C. C. A.) 26 F.(2d) 795; Constable v. National Steamship Company, supra.

The second contention of claimants is based on the ground that libelant was not in possession of the cargo when the libel was filed. It is unquestionably true that a lien on the cargo for the freight will not remain after the shipowner has parted unconditionally with the goods. But the circumstances in this case show, in our opinion, that libelant retained possession of the grain until after the libel was filed. The master of the barge, with other seamen, remained aboard until after the serving of the attachment on the cargo. It is said, however, for claimants that the abandonment of the barge was absolute, relating back to the time of the disaster and constituting the hull underwriters the owner of the property, and that, having parted with the barge, libel-ant could not retain possession of the cargo, but the master was in possession, not only of tho barge, but also of the cargo for the underwriters alone. We may concede that when a loss takes place for which an abandonment is made, the abandonment when accepted ot when it finally becomes effective relates hack to the date of the disaster.

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Bluebook (online)
44 F.2d 759, 1930 U.S. App. LEXIS 3433, 1931 A.M.C. 315, Counsel Stack Legal Research, https://law.counselstack.com/opinion/richardson-sons-ltd-v-jenkins-s-s-co-ca6-1930.