Sicula Oceanica, S.A. v. Wilmar Marine Engineering & Sales Corporation

413 F.2d 1332, 1969 A.M.C. 1597, 1969 U.S. App. LEXIS 11598
CourtCourt of Appeals for the Fifth Circuit
DecidedJuly 7, 1969
Docket26106
StatusPublished
Cited by39 cases

This text of 413 F.2d 1332 (Sicula Oceanica, S.A. v. Wilmar Marine Engineering & Sales Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sicula Oceanica, S.A. v. Wilmar Marine Engineering & Sales Corporation, 413 F.2d 1332, 1969 A.M.C. 1597, 1969 U.S. App. LEXIS 11598 (5th Cir. 1969).

Opinion

WISDOM, Circuit Judge:

This action in admiralty was tried without a jury and was submitted to the district court entirely on depositions and documents. 1 The appellant’s burden, under Fed.R.Civ.P. 52(a), of showing that the trial judge’s findings of fact are “clearly erroneous” is not as heavy, therefore, as it would be if the case had turned on the credibility of witnesses appearing before the trial judge. Galena Oaks Corp. v. Scofield, 5 Cir. 1954, 218 F.2d 217. Caradelis v. Refineria Panama, S.A., 5 Cir. 1967, 384 F.2d 589. 2 However, regardless of the *1334 documentary nature of the evidence and the process of drawing inferences from undisputed facts, the reviewing court must apply the “clearly erroneous” test. 2B Barron & Holtzoff (Wright ed.) § 1132 p. 523; § 1133; McAllister v. United States, 1954, 348 U.S. 19, 75 S. Ct. 6, 99 L.Ed. 20. We have gone over the record word by word. We are “left with the definite and firm conviction that a mistake has been made”. United States v. United States Gypsum Co., 1948, 333 U.S. 364, 68 S.Ct. 525, 92 L.Ed. 746.

The dispute between the parties arose as a result of a written contract dated April 7, 1965, between Wilmar Engineering & Sales Corporation, represented by Raymond G. Willhoft, Secretary-Treasurer of the company, and Sicula Oceánica, S.A. (Siosa), represented by Dr. Aldo Grimaldi, General Agent and part owner of Siosa. 3 The contract obligated Wilmar to clean the tanks of the M/V Perseo by April 13, 1965, for “the maximum price of $31,000”. The vessel, which had been carrying oil, had to be clean for the carriage of grain “to the satisfaction of inspectors of the National Cargo Bureau and the Board of Trade”. 4 The inspectors “rejected” the vessel on several occasions but finally “passed” it on April 27, 1965. Wilmar’s men had worked on the tanks until April 25, when the Perseo’s master refused to allow them to come aboard. Wilmar sued Siosa for $62,690.88, the balance allegedly due as costs for cleaning the tanks. Siosa counter-claimed for damages of $51,045.91 for breach of contract and breach of the warranty of workmanlike performance. The district court denied the counterclaim and awarded Wil-mar $46,776.41.

The district court held that the written contract was voidable because it was “based upon a mutual mistake of fact concerning the condition of the tanks”. The court found:

When the contract was entered into Wilmar, through its representative, Willhoft was given to understand that the vessel had been completely butterworthed 5 and that nothing re *1335 mained to be done but to clean out the residue left after butterworthing had been completed. Wilmar was not advised of the fact that the butterwor-thing had not, in fact, been completed and that much more than a “clean-up” job was involved. * * * Neither Wilmar nor Grimaldi were aware of the fact that the tanks had not been properly butterworthed and that instead of petroleum residues remaining merely at or near the bottom of the tanks as would normally have been the case had the butterworthing process been properly completed, the complete inside of the tanks still contained petroleum residues which had to be cleaned off.

The court stated that “the evidence shows that there was, in fact, an affirmative representation made by Siosa that the tanks of the vessel Perseo had been completely butterworthed on the voyage from Europe, and that the tanks were thus ready for the final cleaning up, the only job which Wilmar actually contracted for”. The court found that the parties entered into an oral contract on April 11, 1965, superseding the written contract, providing for Wilmar to be paid only the actual costs of labor and material for cleaning the tanks. This contract, the court held, “was not * * * conditioned upon approval by a third party or upon completion within a certain time”.

I.

We find that time was of the essence to the shipowner: performance of the tank cleaning by the terminal date fixed in the contract was a vital element in the agreement of the parties. All of the while the Perseo was in New Orleans and in Baton Rouge Siosa was under the compulsion of meeting deadlines, as Wil-mar knew. The contract of April 7 provided :

Work will probably be completed by Monday night midnight April 12th. Anyway vessel must be in Baton Rouge by 12 noon on April 13. Normal overtime rate will be charged if necessary. [Emphasis added.]

The first sentence is indefinite as to the completion date because Willhoft hoped to finish the work before the twelfth. Wilmar was protected by the provision that its services would be calculated at the rate of $4.20 a man-hour, which included profit. Siosa was protected by the agreement on a maximum price of $31,000 and by the requirement that the job be finished by the thirteenth, at the latest, in Baton Rouge. It is undisputed that Grimaldi informed Willhoft that the Perseo had to be in Baton Rouge on July 13 to enable Siosa to comply with a charter committment.

On March 12, 1965, Siosa had time-chartered the Perseo to Tradex Export, S.A. for three consecutive voyages to carry grain. The charter provided that the Perseo was to be inspected and approved for grain by official inspectors before 12 noon on April 8, 1965, at the loading port (later designated as Baton Rouge). Failure of the vessel to pass inspection gave the charterer the option of cancelling.

To prepare for carrying grain instead of oil, the crew chemically cleaned and butterworthed the Perseo’s tanks on the sea voyage. Grimaldi testified that at the time he expected the ship to be ready to load her grain cargo by April 8. Siosa had purchased cleaning equipment and chemicals for butterworthing from Gamlen, a European firm that specialized in tank cleaning, and employed a Gamlen technician to supervise the work while the vessel was at sea. The butter-worthing was not effectively completed because of bad weather and other difficulties, such as clogged condenser pipes. 6 *1336 Siosa diverted the ship to Bermuda where new pipes, flown over from England, were substituted for the clogged pipes and where ten Bermudians were hired to help the crew in cleaning the tanks. After forty-eight hours in Bermuda, the ship sailed on March 31. The crew and the Bermudians continued to work on the tanks during the voyage to New Orleans.

Grimaldi boarded the Perseo April 6 at Pilottown, near the mouth of the Mississippi River. At his request, that morning a Mr.

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Bluebook (online)
413 F.2d 1332, 1969 A.M.C. 1597, 1969 U.S. App. LEXIS 11598, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sicula-oceanica-sa-v-wilmar-marine-engineering-sales-corporation-ca5-1969.