S. C. Loveland Co. v. Bethlehem Steel Co.

33 F.2d 655, 1929 U.S. App. LEXIS 2792, 1929 A.M.C. 1340
CourtCourt of Appeals for the Third Circuit
DecidedJuly 17, 1929
Docket4076
StatusPublished
Cited by13 cases

This text of 33 F.2d 655 (S. C. Loveland Co. v. Bethlehem Steel Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
S. C. Loveland Co. v. Bethlehem Steel Co., 33 F.2d 655, 1929 U.S. App. LEXIS 2792, 1929 A.M.C. 1340 (3d Cir. 1929).

Opinion

WOOLLEY, Circuit Judge.

S. C. Love-land Company, a corporation engaged in the transportation of merchandise in inland waters, contracted with the Bethlehem Steel Company to move 600 tons of pig iron from Sparrows Point, Maryland, to Hainesport, New Jersey. The contract did not specify any means of conveyance, although it appears that because of shallow water at Hainesport the movement of the cargo would be made on a deck lighter; nor was the voyage agreed upon, although it is not improbable that, because of the relative positions of the ports of origin and destination, both parties contemplated that a course would be laid up the Chesapeake Bay, through the Chesapeake & Delaware Canal, and up the Delaware River. The Lighter “George W. Bowen,” owned and assigned to this work by the Loveland Company, took on board at Sparrows Point about 200 tons of pig iron. The Steam Tug “Senator Penrose,” otherwise owned but chartered by the Loveland Company for the voyage, proceeded up the bay with the Bowen and two other craft in tow, tandem. On reaching Chesapeake City the tug and tow passed through the locks and proceeded up the canal without incident until, reaching its narrowest point, the Bowen for no apparent reason began to take in water, and she took it in so rapidly that the master of the tug found it necessary to beach her. In this maneuver she listed and dumped nearly the whole of her cargo, of which only thirty-six tons were recovered. For the damages it had sustained in the loss of part of its cargo, and in and about the salvage and further transportation of the balance thereof, and the freight paid for transportation by the Bowen, the Bethlehem Steel Company filed a libel in personam against S. C. Love-land Company, Inc., owner of the Lighter “George W. Bowen,” and in rem against the Steam Tug “Senator Penrose,” averring with greater particularity the transaction and events recounted and charging the Loveland Company with breaeh of contract of carriage in that it failed to perform its obligation to deliver the whole cargo at the port of destination and, particularly, in that it failed to furnish a seaworthy lighter fpr the undertaking, *656 and charging the Loveland Company, the Lighter Bowen and/or the Steam Tug “Senator'Penrose” with about every act of negligence attributable to an owner and a craft in maritime affairs. The Loveland Company by its answer said that it operated the lighter in the transportation of merchandise for hire but not as a common carrier; denied generally all the material averments of the libel and particularly that the loss was due to a breach of the contract of carriage, and/or negligence on its part or that of the lighter; but, averring that the lighter was tight, staunch and strong and in all respects seaworthy, alleged that the loss of the cargo was due to perils of the sea for which the carrier was not answerable and that whatever faults of navigation there may have been were those of the tug, which alone is liable.

The owner of the tug by its answer disclaimed all responsibility for the contract of carriage and averred that its responsibility was limited to its contract of towage and, denying all fault in navigation, charged loss of the cargo to the condition of the lighter which, in turn, was due to the negligence of the libellant in the stowage of the cargo. From an interlocutory decree finding that the loss suffered by the libellant was due to the unseaworthiness of the lighter and that the tug was not in fault, and holding that the libellant should recover its damages from Love-land Company and the libel be dismissed as to the tug, damages to be agreed upon or found by a Commissioner, the Loveland Company alone appealed, but the libellant, though it did not appeal, still seeks to hold the tug jointly responsible under authority, we imagine, of The John Twohy, 255 U. S. 77, 79, 41 S. Ct. 251, 65 L. Ed. 511.

The genesis of the ease was a contract between the corporate parties, tersely made by correspondence and singularly free from ambiguity. What was the contract? Clearly it was not a charter party but a plain personal contract of affreightment. Its terms were as simple as could be. They provided for the movement of a cargo of a certain kind, of a certain tonnage, from port to port, at a named freight. It contained no provision as to how or by what means the transportation should be effected and no exceptions or reservations, though the bill-of-lading that followed contained the exception of peril of the sea. So, also, it contained no express warranties, though of course it contained an implied warranty of seaworthiness of the craft to be furnished for the work.

In this situation, which we regard as purely contractual, the Loveland Company defends on the ground that it is not a common carrier but a private carrier 'or bailee to transport for hire whore, it says, the law imposes upon the cargo owner the burden of proving negligence. While it admits the implied warranty,of seaworthiness, and, when the lighter foundered, the presumption of her unseaworthiness, it says that, having on its evidence showed the lighter was seaworthy, the presumption disappeared and thereafter the burden of showing negligence devolved upon the libellant, which it has not sustained. There is no trouble about this statement of law in the abstract but when applied to the facts of this ease and the way they were tried it should be distinguished. There is no occasion to discuss and cite authorities for the presumption of unseaworthiness of a vessel which the law raises when she sinks without any known reason. Among the many cases cited in The Arctic Bird (D. C.) 109 F. 167, we select Du Pont de Nemours v. Vance, 19 How. 162, 15 L. Ed. 584, which we surmise has been followed by all courts without variation. There the Supreme Court said:

“ ‘To constitute seaworthiness of the hull of a vessel in respect to cargo, the hull must be so tight, staunch, and strong as to be competent to resist all ordinary action of the sea, and to prosecute and complete the voyage without damage to the cargo.’ * * * In view of this rule, as to what constitutes seaworthiness, it has been uniformly held that if a vessel springs a leak, and founders', soon after starting upon her voyage, without having encountered any storm or other peril to which the leak can be attributed, the presumption is that she was unseaworthy when she sailed.”

Therefore all questions of negligence in this ease must await the decision of that issue. If, on that issue, the Loveland Company should succeed, then, manifestly, the libellant will be forced to prove negligence. If, on the other hand, it fail, then the presumption remains and controls and all questions of negligence disappear from the case.

The first question then is one of contractual liability to furnish a seaworthy vessel— a question of the lighter’s seaworthiness not of the respondents’ negligence, and the cases we shall cite concern the evidence necessary to rebut the presumption of unseaworthiness. They do not concern any presumption of negligence or evidence necessary to rebut any such presumption. Cases cited by the Love-land Company and particularly The C. R. Sheffer (C. C. A.) 249 F. 600; The Kathryn B. Guinan (C. C. A.) 176 F. 301; Hildebrandt v. Flower Lighterage Co. (D. C.) 277 *657 F. 436; The Monongahela (C. C. A.) 282 F. 17, having to do mainly with issues of negligence, are either inapplicable or distinguishable.

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Bluebook (online)
33 F.2d 655, 1929 U.S. App. LEXIS 2792, 1929 A.M.C. 1340, Counsel Stack Legal Research, https://law.counselstack.com/opinion/s-c-loveland-co-v-bethlehem-steel-co-ca3-1929.