Shaver Transportation Co. v. Louis Dreyfus Corp.

414 F. Supp. 1040, 1976 U.S. Dist. LEXIS 14927
CourtDistrict Court, D. Oregon
DecidedMay 25, 1976
DocketCiv. 74-862
StatusPublished
Cited by1 cases

This text of 414 F. Supp. 1040 (Shaver Transportation Co. v. Louis Dreyfus Corp.) is published on Counsel Stack Legal Research, covering District Court, D. Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shaver Transportation Co. v. Louis Dreyfus Corp., 414 F. Supp. 1040, 1976 U.S. Dist. LEXIS 14927 (D. Or. 1976).

Opinion

OPINION

SOLOMON, District Judge:

Shaver, Transportation Company (Shaver) sued two grain merchants, Louis Dreyfus Corporation (Dreyfus) and Lees-Carney & Co. (Lees-Carney), to collect demurrage charges for delays in the unloading of two barges. 1 Dreyfus filed third-party complaints against Condon Grain Growers, Inc. (Condon) and Western Grain Exchange, Inc. (Western). Admiralty jurisdiction is invoked under 28 U.S.C. § 1333.

The facts are largely undisputed.

Bill of Lading No. 385 and Barge ST 32

Before February 16, 1974, Lees-Carney bought grain from Condon. Lees-Carney arranged for Shaver to transport the grain by barge down the Columbia River from Biggs to Portland, Oregon. Also before February 16, Lees-Carney resold the grain to Cook Industries, Inc. (Cook).

Cook sold the grain to another buyer who then resold it, and it was eventually bought by Dreyfus.

On Bill of Lading No. 385 (B/L 385), Condon signed as shipper, Shaver signed as carrier, Lees-Carney was named original consignee, and Cook was named ultimate consignee.

Bill of Lading No. 385 reads in part: It is agreed that the custody and carriage of the goods are subject to all the terms and conditions of this Bill of Lading and to all of the terms and conditions of all the provisions of carrier’s applicable, published tariffs and rules pertaining thereto . . .all of which shall govern the relations, whatsoever they may be, between the Carrier, on the one hand, and the Shipper, consignee and goods on the other, in every contingency

The “applicable, published” tariff on which Shaver bases its claims here was Tariff No. 78. It was published by the Pacific Inland Tariff Bureau, Inc., as agent for many barge companies, including Shaver. Item No. 145 of this tariff was issued June 6, 1973, and became effective July-31, 1973. The Item read in part:

UNLOADING TIME, ALLOWANCES OR CHARGES FOR

All shipments of grain . . are accepted for transportation subject to the following conditions with respect to dispatch or delay in unloading of carrier’s barges:
(A) The carrier shall notify the consignee or unloading terminal [of availability for discharge].
(B) The following allowances or charges will be made to the consignee dependent upon the time taken to discharge the carrier’s barge(s):
[In essence, the table provided that if the discharge were made within 48 hours, the consignee would receive an allowance; if between 48 and 72 hours, *1042 neither an allowance nor a charge; if more than 72 hours, the consignee would pay a charge — the demurrage.]
(D) All allowances or charges are for the account of the consignee.

The grain in B/L 385 was loaded on Shaver’s Barge ST 32 at Biggs, Oregon, on February 16, 1974. Lees-Carney received B/L 385 on February 19, 1974, and delivered it to Cook the next day.

Barge ST 32 arrived in the Portland harbor on February 19, 1974. Shortly before the barge arrived in Portland, Shaver was told that Dreyfus had become the ultimate consignee of the grain. Shaver therefore asked Dreyfus for instructions and was told to spot Barge ST 32 at the Dreyfus elevator for unloading. The barge was so spotted, and Dreyfus received a copy of B/L 385 on Feburary 21, 1974.

During this period, grain shipments reached record levels. Dreyfus’s elevator was “plugged up” with grain, and some of the ocean-going vessels scheduled to take grain off were delayed in arriving. As a result, Dreyfus could not receive Barge ST 32’s grain. The barge was not completely unloaded at the elevator until March 14, 1974.

Bill of Lading No. 2-7 and Barge ST 36

On or before February 19, 1974, Western sold grain to Dreyfus. Western contracted with Shaver to ship the grain from Port Central Ferry, Washington, to the Dreyfus elevator in Portland.

Shaver loaded Barge ST 36 on February 19 and 20, 1974; on February 20 Western signed B/L 2-7 as shipper and Shaver signed as carrier. Dreyfus was named as consignee. The standard portions of B/L 2-7 were identical with those of B/L 385.

Barge ST 36 arrived at the Dreyfus elevator on February 21, 1974, and notified Dreyfus that it was ready for unloading. Dreyfus received B/L 2-7 on February 22, 1974, but Dreyfus did not completely unload Barge ST 36 until March 13, 1974.

Shaver billed Dreyfus $1,697.73 for 20 days’ demurrage on Barge ST 32, and Shaver billed Dreyfus $3,503.89 for 17 days’ demurrage on Barge ST 36. Dreyfus refused to pay, and this action followed.

On both bills of lading Shaver contends that Dreyfus as ultimate consignee is liable for the demurrage charges, even though Dreyfus did not expressly agree to pay those charges.

On B/L 385 Shaver alternately contends that Lees-Carney as original consignee became liable for the demurrage charges when it diverted the shipment of grain on Barge ST 32 to an ultimate consignee (Dreyfus) which delayed in receiving the grain.

Dreyfus makes five contentions.

First: Tariff No. 78 represents price-fixing among horizontal competitors and is a per se violation of § 1 of the Sherman Antitrust Act, 15 U.S.C. § 1. Before the trial, Dreyfus moved to amend its answer and raise a counterclaim by adding this antitrust contention. This motion was denied, and I shall not reconsider it here.

Second: Western and Condon both failed to notify Dreyfus of the grain shipments before they were loaded at Biggs, Oregon, and Port Central Ferry, Washington. As a result, Dreyfus could not exercise its right, under the contracts of purchase and ORS 72.3190, to name the vessels by which the grain moved. 2

Probably the grain had already been loaded on Shaver’s barges when Dreyfus became the purchaser. In any event, the failure to notify Dreyfus of the shipments was immaterial. Dreyfus’s export manager testified that barges were never delayed at Dreyfus’s Portland elevator merely because they belonged to one barge company rather than another. Even if the failure to notify *1043 was material, Dreyfus waived any objections by accepting delivery of the grain on Shaver barges.

Third: It cannot be liable for demurrage by statute because by 1974 both the federal government and the State of Oregon had deregulated the carriage of bulk commodities by water; 3 therefore, “there is no statutory basis for Shaver’s attempt to impose liability on [Dreyfus] through the device of a tariff.”

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
414 F. Supp. 1040, 1976 U.S. Dist. LEXIS 14927, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shaver-transportation-co-v-louis-dreyfus-corp-ord-1976.