Standard Marine Towing Services, Inc. v. M.T. Dua Mar

708 F. Supp. 562, 1989 U.S. Dist. LEXIS 2579, 1989 WL 22723
CourtDistrict Court, S.D. New York
DecidedMarch 13, 1989
Docket86 Civ. 1579(CBM), 86 Civ. 4630, 86 Civ. 5651 and 86 Civ. 7352
StatusPublished
Cited by9 cases

This text of 708 F. Supp. 562 (Standard Marine Towing Services, Inc. v. M.T. Dua Mar) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Standard Marine Towing Services, Inc. v. M.T. Dua Mar, 708 F. Supp. 562, 1989 U.S. Dist. LEXIS 2579, 1989 WL 22723 (S.D.N.Y. 1989).

Opinion

OPINION

MOTLEY, District Judge.

This is an action for profits lost and expenses incurred from February 12, 1986 to April 15, 1986, as a result of a collision at sea which disabled a ship owned by plaintiff Standard Marine Towing Services (“Standard Marine”). Having heard the evidence presented in a two day trial held on October 5th and 11th of 1988, the court finds for the plaintiff and awards damages of $46,559.33 (breaking down to $25,698.32 for lost profits and $20,861.01 for expenses). We reserve decision on awarding pre-judgment interest and costs until the parties make further submissions to the court. By mutual agreement between the parties, defendants T.S.I. 27, Inc. and the Tug T.S.I. 27 are liable for 72.5% of the damage award (totalling $33,755.51), while defendants Thomar Navigation Pte. Ltd., Thome & Co. Pte. Ltd. and the M.T. Dua Mar are liable for 27.5% of the damage award (totalling $12,803.82).

THE PARTIES

The parties to this action are as follows:

a) plaintiff Standard Marine Towing owns the tanker barge Lindsay Frank II;

b) defendant T.S.I. 27, Inc. owns the tug T.S.I. 27;

c) defendants Thomar Navigation Pte. Ltd. and Thome & Co. Pte. Ltd. own and operate the ship M.T. Dua Mar.

A11 other defendants in this case are no longer parties to the action and haye no involvement with the instant dispute,

„ , BACKGROUND

The following facts are undisputed. On February 11, 1986, during a snowstorm, the tanker barge Lindsay Frank II collided with the ship M.T. Dua Mar in the body of water between Staten Island and Bayonne, New Jersey (which is called the Kill Van Kull). The Lindsey Frank II is in the “clean oil” trade and was transporting approximately 25,000 barrels of number two oil at the time of the collision (Transcript of Trial Proceedings — hereinafter “Tr.” — at 27; Ex. 18-A — Invoice # 25048). She is a “dumb” barge (not self-propelled) and was being towed by the tugboat T.S.I. 27 at the time of the accident.

The Lindsay Frank II was damaged by the collision and part of her cargo was off-loaded into the barge Nathan Berman, another ship owned by the plaintiff. Both barges were towed to the Lindsey Frank II’s original destination where the entire cargo was discharged (Tr. 28-29). After that, the Lindsey Frank II was towed to the Standard Tank Cleaning Corporation Facility at Bayonne, New Jersey — a company affiliated with plaintiff — where her tanks were cleaned from February 12th to the 15th in preparation for repair work (Tr. 29, 82-85; Ex. 14), On February 15th, the Lindsey Frank II was towed to First Marine (“First Marine”) Shipyard on Staten Island — a company affiliated with plaintiff — for repairs.

A collision damage survey was conducted at First Marine on February 18th and 19th (Tr. 30, 167-68). Several shipyards submitted bids to repair the barge on February 20th. The repair work was awarded to First Marine which submitted the lowest bid, $161,474, and the lowest number of working days, fifteen, to complete the job. (Tr. 30-32, 168-69; Ex. 17-C). The term “working days” means eight hour days, Monday to Friday, excluding weekends and *564 holidays. (Tr. 31, 169). Repair work on the Lindsey Frank II commenced on February 21st (Tr. 175).

Despite First Marine’s bid, collision repairs were not completed until April 15th. Owner’s work unrelated to the collision damage kept the barge out of service until May, when, all work having been completed, the Lindsey Frank left First Marine Shipyard and returned to work.

ISSUE

Since the parties have already settled claims for the physical damage to the Lindsey Frank II, the sole issue before this court is profits lost and expenses incurred by plaintiff while the barge was out of service due to its collision damage. This period dates from the day of the collision, February 11, 1986, to the day collision repairs were completed, April 15, 1986. No damage claim is made for the detention period attributable to owner’s work, i.e., April 16, 1986, until the day the Lindsey Frank II left First Marine shipyard and returned to service. See Bouchard Transportation Co. Inc. v. The Tug “Ocean Prince” et al., 691 F.2d 609, 614 (2d Cir. 1982).

In support of our holding in plaintiff’s favor, the court makes the following findings of fact and conclusions of law.

DISCUSSION

A claim for detention is ‘[damages for lost profits arising from the loss of use of a vessel for repairs after a collision or other maritime tort.’ ” Bouchard Transportation Co. Inc. v. The Tug “Ocean Prince” et al., 691 F.2d 609, 612 n. 2 (2d Cir.1982) (citing Bolivar County Gravel Co. v. Thomas Marine Co., 585 F.2d 1306, 1308 n. 2 (5th Cir.1978)). The owner of a vessel damaged through the fault of another is entitled, over and above the cost of collision repairs, to an award for profits lost and expenses incurred during the detention necessary to make the repairs. The Conqueror, 166 U.S. 110, 125, 134-35, 17 S.Ct. 510, 516, 519, 41 L.Ed. 937 (1897); Bouchard at 611-12; Moore-McCormack Lines, Inc. v. The Esso Camden, 244 F.2d 198, 203-04 (2d Cir.1957).

In determining profits to be awarded, it is not necessary for a plaintiff to prove that it lost or turned down a specific contract or contracts because the vessel was in need of repairs. The James McWilliams, 42 F.2d 130, 132 (2d Cir.1930); See also Weeks Dredging and Contracting, Inc. v. B. Turecamo Towing Corp., 482 F.Supp. 1053, 1058 (E.D.N.Y.1980) (test is not specific contracts lost but whether profits more probably than not would have been earned had the accident not transpired). The measure of detention is “the amount the vessel would have earned in the business in which she has customarily been employed.” Moore-McCormack Lines at 201. Nonetheless, to be recoverable, lost profits must be proven with a reasonable degree of certainty. The Conqueror 166 U.S. at 125, 17 S.Ct. at 516; Bouchard at 612.

In early 1986, the activities of the Lindsey Frank II consisted of transporting oil or gasoline from one terminal to another in the New York harbor or its vicinity, or transporting cargo from a vessel at anchor to a terminal (Tr. 25-26). The vessel was not on charter and did not operate on a charter basis at the time of the collision (Tr. 126). When customers needed product moved from one terminal to another, they would call Standard Marine’s dispatcher and place their order by telephone (Tr. 26).

At trial, Ms.

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Bluebook (online)
708 F. Supp. 562, 1989 U.S. Dist. LEXIS 2579, 1989 WL 22723, Counsel Stack Legal Research, https://law.counselstack.com/opinion/standard-marine-towing-services-inc-v-mt-dua-mar-nysd-1989.