Roberto Hernandez, Inc. v. Arnold Bernstein Schiffahrtsgesellschaft, M. B. H.

31 F. Supp. 76, 1940 U.S. Dist. LEXIS 3540
CourtDistrict Court, S.D. New York
DecidedJanuary 25, 1940
StatusPublished

This text of 31 F. Supp. 76 (Roberto Hernandez, Inc. v. Arnold Bernstein Schiffahrtsgesellschaft, M. B. H.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Roberto Hernandez, Inc. v. Arnold Bernstein Schiffahrtsgesellschaft, M. B. H., 31 F. Supp. 76, 1940 U.S. Dist. LEXIS 3540 (S.D.N.Y. 1940).

Opinion

GALSTON, District Judge.

This action is brought pursuant to the provisions of Title 46 U.S.Code, Sec. 829, 46 U.S.C.A. § 829. The complaint alleges that the plaintiff was engaged in buying, selling and exporting automobiles; that the three defendants are common carriers of merchandise for hire by water between ports of the United States and foreign ports and subject to the provisions of the Federal Shipping Act of September 7, 1916, 46 U.S.C.A. § 801 et seq.; that in or about the month of June, 1934, plaintiff had a contract with one Thomas de Bareno of Bilbao, Spain, wherein plaintiff undertook to purchase trucks, pleasure cars and chassis manufactured by Chrysler and General Motors companies, and to ship such automobiles of the aggregate worth per month of $25,000 to the said de Bareno in Bilbao, Spain, from June to.December 1934. It is alleged that on numerous occasions during that period the plaintiff requested bookings of freight space on the vessels of the defendants for the shipment of said automobiles; that the defendants refused to book such shipments for the plaintiff; that such refusal was unjustified, unlawful and discriminatory and in contravention of the Federal Shipping Act. It is also alleged that in June 1934, upon the refusal of the defendants to furnish freight space, plaintiff advised the defendants of its contract with de Bareno and the terms thereof, and that the plaintiff would suffer damage to the extent of its commission of 15% on the aforesaid shipments. Plaintiff alleges that it was ready, able and willing to deliver the automobiles to the defendants for shipment to Bilbao, Spain and to pay the proper charges therefor. It is alleged that these defendants wrongfully conspired among themselves to prevent the shipment of said automobiles by the plaintiff and that by reason of such refusal on the part of the defendants to furnish freight space the plaintiff sustained damage in the sum of $25,050 with interest from December 1 to December 31, 1934.

It is alleged that the plaintiff filed a complaint against the defendants with the United States Shipping Board claiming reparations; that the said claim was presented and duly argued before the United States Maritime Commission and that said Commission entered an order dated May 25, 1939, awarding damages to the plaintiff against the defendants, jointly and severally, in the sum of $25,050 with interest from December 31, 1934. The complaint concludes with an allegation that the aforesaid order has not been complied with and accordingly seeks judgment against the defendants.

The defendant Arnold Bernstein, Schiffahrtsgesellschaft, M. B. H., was not served in this action. The remaining two defendants filed what in effect was a general denial on the merits and at the trial sought to establish a number of defenses among which the following may be noted: That the Maritime Commission was without jurisdiction of the proceeding; that there was no joint and several liability of the defendants; that there was no basis for the plaintiff’s claim of damage and that it was the duty of the plaintiff in the event that it was entitled to damages to endeavor to mitigate them.

The United States Maritime Commission rendered its first decision on December 20, 1937. The Commission found that on June 24, 1934, in the City of New York, the complainant and J. T. de Bareno, an automobile dealer of Bilbao, Spain, had made an oral contract by the terms of which the complainant was to ship to him automobiles of General Motors and Chrysler manufacture; that the agreement ran from June to December 1934, during which time the complainant was to ship an average of $25,000 worth of automobiles per month, f. o. b. New York, exclusive of complainant’s commission of 15%; that complainant was to purchase the automobiles at 17%% off factory retail price. An initial letter of credit in the amount of $14,200 in connection with the agreement was opened by de Bareno on July 2, 1934, effective under extension to October 2, 1934.

Applications for bookings were made to the three shipping lines in question at various times during the period. These applications were made by a representative of the Seven Seas Mercantile Transport Company, an agent employed by the plaintiff to procure bookings, as well as by complainant’s president. So far as the Bernstein [78]*78line was concerned the bookings were for lots of 10, 20, 22 or 23, 12 or 15, and from 4 to 10, 25 or 20 to 30, and from 1 to 20, and were for any number from 1 to 100, and in effect were for any space on any sailing. This line carried one unboxed Dodge sedan for the complainant on August 25, 1934, but in the name of a vice-consul of a foreign country located in New York City, though booking for' this car had previously been refused complainant’s agent and complainant’s president. The finding of the Commission is that the Bernstein line had unoccupied space for from 15 to 25 unboxed automobiles available on the September 12 sailing, for probably 30 to 40 on the October 23 sailing, and for 160 on the November 27 sailing.

Just exactly what space was available on the sailings of Compañía Española de Navegación Marítima, S. A., does not appear from the findings. It does appear that the defendant submitted in evidence stowage plans of its vessels sailing October 11 and December 13, which plans indicate that unboxed automobile space in such vessels, except in their lower holds, where unboxed automobiles could sometimes be stowed, was fully occupied.

The Fabre line to Bilbao carried complainant’s automobiles consisting of 4 boxed truck chassis on the sailing of October 8, and one shipment of 3 boxed truck chassis on the sailing of November 5. These automobiles were booked by Seven Seas as “Rios and Whites” as described to Seven Seas by complainant’s president. The Commission found that-there was un- ■ occupied space for unboxed automobiles available on the sailings of' this line on August 7, September 7, October 8 and December 10.

During the period in question, the defendant carriers, together with the Compañía Transatlántica, comprised the membership of the North Atlantic Spanish Conference, and no service was available from New York to Bilbao except via these Conference lines. Application for booking to Compañía Transatlántica was refused with the statement that it had space but complainant’s automobiles could not be accepted because their wheel base exceeded a length of 115 inches.

The Commission found that complainant’s practice in exporting unboxed automobiles was to procure steamship bookings and subsequently purchase the automobiles therefor.

As explaining its finding of unfairness and discrimination the Commission determined as a fact that the complainant’s delivery price in Spain of automobiles it desired to ship to Bareno was less than the delivery price of similar cars received by manufacturers’ distributors in Spain. An agent of the Bernstein line had said that a distributor in Spain gave such line more business and would be protected, and that such carrier was not interested in complainant’s cars and that complainant had “no chance in the world” to get space in August or the following month “or ever”. The agent of Compañía Española de Navegación Marítima S. A. is reported to have said that it was pressed by a distributor in Spain not to carry compláinant’s cars and that it could not accept any Chrysler or General Motors cars from complainant, .but would take any others; and by Fabre line’s agent that none of the Conference lines would accept complainant’s cars because of requests from Spain and from General Motors and Chrysler people in the United States.

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Cite This Page — Counsel Stack

Bluebook (online)
31 F. Supp. 76, 1940 U.S. Dist. LEXIS 3540, Counsel Stack Legal Research, https://law.counselstack.com/opinion/roberto-hernandez-inc-v-arnold-bernstein-schiffahrtsgesellschaft-m-b-nysd-1940.