Shaver Forwarding Co. v. Eagle Star Insurance

162 P.2d 789, 177 Or. 410, 1945 Ore. LEXIS 158
CourtOregon Supreme Court
DecidedSeptember 12, 1945
StatusPublished
Cited by12 cases

This text of 162 P.2d 789 (Shaver Forwarding Co. v. Eagle Star Insurance) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shaver Forwarding Co. v. Eagle Star Insurance, 162 P.2d 789, 177 Or. 410, 1945 Ore. LEXIS 158 (Or. 1945).

Opinion

BELT, C. J.

These consolidated actions — here for the second time — were commenced to recover upon two identical marine insurance policies for damages sustained to a 250 ton stern-wheeler steamboat, “The Dalles”, while it was being hauled upon marine ways from the waters of the Columbia River at Rainier, Oregon, by Ericksen & Klepp, independent contractors. On the first trial it was contended by the plaintiff that the loss or damage to the boat was caused: (1) By waves from a passing steamer while “The Dalles” was being hauled endwise from the river and that such constituted “perils of the seas” within the meaning of the policies; and (2) By defective hog chains breaking while the vessel was being hauled from the water, thereby causing the vessel to sag. It was the contention of the insurance companies: (1) That the damage was not the result of either of the above causes but was the result of improper methods by Ericksen & Klepp in hauling the vessel from the water; and (2) That the *413 plaintiff, the owner of the vessel, failed to exercise dne diligence in the premises. On these issues, thus briefly stated, the cause was submitted to the court and jury, and a verdict returned in favor of the plaintiff. Judgments were entered upon such verdict and the insurance companies thereupon appealed to this court. The judgments were reversed (Shaver Forwarding Company v. Eagle Star Insurance Company, Ltd., and Universal Insurance Company, [Oregon] 172 Or. 91, 139 P. (2d) 769) by reason of an erroneous instruction given by the court relative to “perils of the seas” — this court being of the opinion that the facts did not involve such peril — and the cause wa,s remanded for a new trial. It was held, however, that the defendants were not entitled to a directed verdict since there was evidence tending to show that the loss was caused by the latent defects in the hog chains. In other words, the court refused to weigh conflicting evidence and held that a jury question was presented as to whether there was any liability under the policies.

On the second trial, the causes were submitted to the court without a jury and judgments against the defendants were again entered. It is from these judgments that the defendants have once more appealed to this court. For a more complete statement of the facts out of which these actions arose, see opinion on former appeal.

It is conceded that if the loss or damage to the vessel was caused by the negligent acts of either the owner or the independent contractors, there would be no liability under the policies. It is also admitted that if such loss or damage was “directly” caused by latent defects in the hog chains, the insurers assumed such risk. Appellants admit that the evidence now before *414 us for consideration, relative to the cause of loss or damage to the vessel, is substantially the same as it was on former appeal.

Under this state of the record, we think the rule of the “law of the case” applies, and appellants are in no position again to assert that there is no evidence tending to show any latent defects in the hog chains. Green Mountain Lumber Co. v. Columbia & Nehalem River Railroad, 146 Or. 461, 30 P. (2d) 1047; Johnson v. Ladd, 144 Or. 268, 14 P. (2d) 280, 24 P. (2d) 17; Adskim v. Oregon-Washington R. & Nav. Co., 134 Or. 574, 294 P. 605; and numerous authorities therein cited. It was also settled that whether such defect was the proximate cause of the loss was a question of fact for the determination of the jury. The extended argument in the brief of appellants relative to this phase of the case, including the blocking of the stern by Erieksen & Klepp, is merely a repetition of the argument made on first appeal, and we think merits no further consideration.

On this appeal defendants apparently have proceeded on the theory that this is a trial de novo and that the findings of the circuit court can be reviewed to determine whether they are in keeping with the weight of the evidence. We do not so consider the record. These law actions were submitted to the court to be tried without a jury and its findings clearly have the force and effect of a verdict of a jury. § 5-503 O. C. L. A. It is well settled that if the findings of the circuit court, in a law action, are supported by some substantial evidence this court on appeal is conclusively bound thereby. Simmons v. Jarvis, 163 Or. 117, 95 P. (2d) 725; Burke Machinery Co. v. Copenhagen, 138 Or. 314, 6 P. (2d) 886.

*415 Appellants find some support in Wakefield, Fries & Co. v. Sherman, Clay & Co., 141 Or. 270, 17 P. (2d) 319, an action at law tried by the court without a jury. In this case, plaintiff sought recovery of the reasonable value of services performed as a broker. The circuit court entered judgment for the plaintiff in the sum of $4500. On appeal, the majority of the court was of the opinion that there was no evidence to support such judgment in excess of $2000 and reduced the judgment accordingly, stating: “We are at liberty to disregard any finding by the trial court if evidence is not sufficient to sustain the finding.” We think it was not intended by the court to hold in such actions that conflicting evidence will be reviewed on appeal. Mr. Justice Rand, author of the opinion in the Wakefield case, spealdng for the court in Northwest Oil Co. v. Haslett Warehouse Co., 168 Or. 570, 123 P. (2d) 985, referring to § 5-503 O. C. L. A., more accurately thus stated the rule: “Under these provisions, the findings of the trial court upon the facts are as binding and conclusive upon this court as if the findings had been made by the jury and cannot be set aside unless it can be held that the evidence fails to sustain it. ’ ’

We agree that no inference of defective condition of the hog chains could be drawn from the mere fact in itself that they broke while the vessel was being hauled upon the ways. If, however, due care was exercised by Erieksen & Klepp in hauling out the vessel, they had the right to assume, in absence of notice to the contrary, that the hog chains would serve the purpose for which they were intended. If no undue strain was put upon the hog chains, and the method used by Erieksen & Klepp was in keeping with the degree of care exercised by persons of ordinary prudence and *416 caution engaged in such business, then an inference of defective condition of the hog chains might reasonably be drawn from the fact of breaking. Relative to such matter, the court on former appeal said:

“The defendants also contend that there is no evidence that the damage was ‘directly caused’ by defects in the hog chains. We will not attempt to follow counsel through the elaborate argument which has been submitted upon this point. It all seems to us to be a question of proximate cause, which is ordinarily, and we think in the present case, a question of fact. We do know that the hog chains parted, and immediately thereafter the stern of the vessel was let down and steam lines, pipes and planks broke. If the jury believed that Erickson &

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Bluebook (online)
162 P.2d 789, 177 Or. 410, 1945 Ore. LEXIS 158, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shaver-forwarding-co-v-eagle-star-insurance-or-1945.