Southern Cotton Oil Co. v. United States

84 F.2d 509, 1936 U.S. App. LEXIS 4519, 1936 A.M.C. 1172
CourtCourt of Appeals for the Fifth Circuit
DecidedJune 26, 1936
DocketNo. 8056
StatusPublished
Cited by2 cases

This text of 84 F.2d 509 (Southern Cotton Oil Co. v. United States) 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
Southern Cotton Oil Co. v. United States, 84 F.2d 509, 1936 U.S. App. LEXIS 4519, 1936 A.M.C. 1172 (5th Cir. 1936).

Opinion

SIBLEY, Circuit Judge.

The libel of the Southern Cotton Oil Company was filed October 27, 1932, against the United States and United States Shipping Board Merchant Fleet Corporation, formerly called United States Shipping Board Emergency Fleet Corporation, for damages to a cargo of peanuts shipped on the West Eldara, a merchant vessel of the United States, from Yokohama to Savannah in May, 1920, which in consequence of a stranding of the vessel in the vicinity of Honolulu was not delivered until March, 1921. A suit at law was filed in May, 1926, and dismissed because the sole remedy was in admiralty. See Johnson v. United States Shipping Board Emergency Fleet Corp., 280 U.S. 320, 50 S.Ct. 118, 74 L.Ed. 451; and this libel is filed by permission of the Act of June 30, 1932, 46 U.S.C.A. § 745. The respondents pleaded no liability under the provisions of the bills of lading and also a compromise and release of all claims made May 29, 1923. The issue of release was ordered separately tried. The release was sustained and a final decree entered dismissing the libel. This appeal follows.

The release in its material parts reads as follows: “The Southern Cotton Oil Company * * * for and in consideration of $17,500 lawful money of -the United States in hand paid by the United States Shipping Board Emergency Fleet Corporation, the receipt whereof is hereby acknowledged has remised, released and forever discharged '* * * 'the said United States Shipping Board, The United States Shipping Board Emergency Fleet Corporation and the United States of America, the South Atlantic Marine Corporation, their successors and assigns and each of them, the several steamships of said Company and of the United States Shipping Board and of the said United States of America * * * and in particular the Steamship Nonantum, her owners, etc., of and from all manner of actions, suits, liens, duties, dues, trespasses, damages * * * claims and demands whatsoever, whether at law or in admiralty, which against any or all of the aforesaid parties it ever had, now has or which its successors and assigns hereafter can, shall or may have upon or by reason of any matter, cause or thing whatsoever from the beginning of the. world to the day or date of these presents: Provided, however, that there is expressly reserved from this release and nothing herein shall be construed as affecting any and all claims against the Atlantic, Gulf & [511]*511Pacific Steamship Corporation for loss and shortage of cargo.”

The release is formally executed by the vice president and secretary of the Southern Cotton Oil Company under the corporate seal. The voucher on which the $17,-500 was paid is signed by T. B. Keene for the Fleet Corporation and approved by its director of finance. It is certified as correct for the Southern Cotton Oil Company by Peyre Gaillard, and states its office thus: “S/S Nonantum and others: Representing acceptance in full satisfaction of all claims against the United States of America, United States Shipping Board and/or United States Shipping Board Emergency Fleet Corporation, except loss and shortage claims now pending against the Atlantic, Gulf and Pacific Steamship Company. Approved by Board Resolution April 30, 1923. All papers on file with Claims Division, Traffic Department.”

We have no hesitation in holding that these papers on their face show a payment of $17,500 in extinguishment of all existing claims against the United States, the Shipping Board Corporations, and their vessels as well as of those against the steamship Nonantum, excepting only those claims reserved by the proviso. Their terms suggest that there was a particular settlement of some claim against the Nonantum, but they declare that the $17,500 was not paid and received for that alone but also in satisfaction of all others between these parties. The special exception of certain claims pending against the Atlantic, Gulf & Pacific Steamship Corporation makes it plain that no others were excepted and that what was signed was no meaningless form nor a particular release of one claim against the Nonantum, but was a general release of all claims between the named parties except those specially reserved. The claim here asserted concerning the West Eldara was in existence and in dispute between these parties when the release was given. It was extinguished by it. United States v. William Cramp & Sons Ship & Engine Bldg. Co., 206 U.S. 118, 27 S.Ct. 676, 51 L.Ed. 983; St. Louis, etc., Ry. Co. v. United States, 267 U.S. 346, 45 S.Ct. 245, 69 L.Ed. 649.

The libelant, however, asserts that the only thing intended to be settled was a claim touching a particular voyage of the Nonantum, and that the broad terms in the papers were used by a mutual mistake of the parties. To sustain such an attack upon documents deliberately executed by experienced persons dealing at arm’s length, clear and satisfactory evidence is required of a mistake on both sides. Libel-ant is not asking to rescind the settlement by paying back the money it got and resuming the whole dispute as it was, but is seeking to keep what it got and to deny the writings under which it obtained it. This is in effect to reform them, carrying the necessity of clearly proving that the opposite party understood that there was not a settling of all claims and especially not of that now asserted. The important witnesses are testifying more than ten years after the transaction, have been long engaged in other businesses, and have had no personal interest and no particular reason to hold it in memory. Peyre Gaillard, who negotiated for libelant, alone professes to have a clear recollection about it, but confidence in his testimony is weakened by his demand on his former employer to be “well compensated” if he should' go into this case. We think the most weighty evidence is to be found in the contemporaneous correspondence and inter-office memoranda which have been preserved. Briefly reviewed, these show the following: Before the West Eldara reached Savannah libelant took advice of counsel and was told there was no recourse for the delay and damage against the sellers of the cargo; and that: “The bill of lading under which the goods were forwarded also relieves the carrier from liability. The ship is allowed on its voyage from Yokohama to Savannah to touch at any port * * * so that no question of deviation arises. The matter comes down, therefore, to whether your policy of insurance will help you out.” The claim made against the carrier after unloading was firmly rejected. Later the ship put the matter of its stranding into the hands of general average adjusters. Matters stood until September, 1922, when libelant turned its claim over to Gaillard. The next month he thus wrote to his superior officer: “While there is no legal liability, as has formerly been stated by our counsel, there is some chance I believe of getting money out of the Shipping Board, taking into consideration their present policy.” After a conference in Washington in which the suggestion was made by the representative of [512]

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

Related

Rice v. Charles Dreifus Co.
96 F.2d 80 (Second Circuit, 1938)

Cite This Page — Counsel Stack

Bluebook (online)
84 F.2d 509, 1936 U.S. App. LEXIS 4519, 1936 A.M.C. 1172, Counsel Stack Legal Research, https://law.counselstack.com/opinion/southern-cotton-oil-co-v-united-states-ca5-1936.