Suna v. Strick Line

274 F. 195, 1921 U.S. App. LEXIS 1328
CourtCourt of Appeals for the Fourth Circuit
DecidedMay 3, 1921
DocketNo. 1874
StatusPublished
Cited by5 cases

This text of 274 F. 195 (Suna v. Strick Line) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Suna v. Strick Line, 274 F. 195, 1921 U.S. App. LEXIS 1328 (4th Cir. 1921).

Opinion

KNAPP, Circuit Judge.

On November 5,1919, the Japanese steamship Yaye Maru and the British steamship War Lark were at anchor in the harbor of .Baltimore at a safe distance apart. About noon of that day, while a high wind was blowing, the War Lark dragged anchor and drifted down upon the Yaye Maru, damaging the latter to a substantial, though not serious, extent. The, libel filed on behalf of the owner seeks recovery for this injury to the vessel, and also, as will presently be explained, for loss of time while she was undergoing repairs. The trial court found the War Lark solely at fault for the collision, and awarded appellant the sum of $3,081.40 for the physical damage sustained by the Yaye Maru. The appellee acquiesced in this finding and subsequently paid the amount awarded. The claim for detention was wholly rejected, and the libelant appeals.

[1] At the time of the accident the Yaye Maru was under a time charter containing the following provision, known as the “breakdown clause”:

“That in the event of the loss of time from deficiency of men or stores, fire, breakdown, or damages to the hull, machinery, or equipment, grounding, detention by average accident to ship or cargo, drydocking for the purpose of examination or painting bottom, or by any other cause preventing the full working of the vessel, the payment of hire shall cease for the time thereby lost.”

It is not seriously disputed that the injury to the Yaye Maru prevented “the full working of the vessel” until she was repaired. The learned District Judge said in the course of the trial:

“I do not think there is any real question that the No. 1 hold of that vessel was not seaworthy for the stowage of cargo under those conditions.”

And this finding, as properly it may be regarded, is amply supported by the testimony. It is agreed by the parties that the time consumed in making needed repairs was 6 days and 3 hours. At the charter party rate the off-hire for that length of time would amount to $20,-514.63, and bunker coal was consumed meanwhile of the value of $230.70.

On November 10th the charterer notified the owner’s agent that the vessel—

“should be placed off-hire from the time of collision until repairs have been completed, and she is again in an efficient state to resume my charter.”

This claim was allowed by the agent, and off-hire deducted accordingly (in point of 'fact for 6 days, 4 hours and 50 minutes) on January 24, 1920, when the charterer paid over the hire which before had been in arrears.

The primary question is whether the charterer was entitled to this allowance for off-hire under the breakdown clause of the contract [197]*197Could he have enforced it as a matter of right? The contention that he could not is based upon these facts: The Yaye Mara came to Baltimore for a cargo of coal, arriving there on the 1st of November. Prior to that date' the government had placed an embargo on the export of coal, which was still in force, and in consequence the vessel could not then obtain her intended cargo. She was waiting in the Baltimore harbor when the accident happened, and she continued to wait there after the repairs were completed, until the embargo was lifted about the middle of the following January. From this it is argued that the owner was not obliged to allow the off-hire demanded, because the charterer would have done nothing with the vessel during the time required for repairs, and therefore suffered no delay or loss of service as the result of the collision. Granted, it is said, that the injury was sufficient to prevent “the full working of the vessel,” she nevertheless was not rendered unfit for the only use made of her, namely, to await the lifting of the embargo, and this being so, the charterer had no valid claim for an off-hire allowance. -

No case is cited which goes to the extent of this contention, and the trend of authority seems clearly opposed to it. We are not here dealing with a claim for demurrage, which ordinarily depends upon loss of earnings occasioned by some delay, but with the rights of the parties under the contract which they have voluntarily made. The owner of the Yaye Mara undertook to keep her “in a thoroughly efficient state in hull, machinery and equipment for and during the service,” and agreed that the stipulated hire should cease for the time lost by an injury, such as actually happened, which prevented “the full working of the vessel.” The collision put her in an unseaworthy condition, at least as to No. 1 hold, and until the repairs were completed she was not “in a thoroughly efficient state” for receiving or carrying cargo. When the accident-occurred the owner met the contract obligation by taking over the vessel and repairing her without unnecessary delay, and at a cost the reasonableness of which is not here questioned. .Having done this, can the owner defeat the claim for off-hire by saying that the charterer would not have used the ship, if she had not been injured, and therefore has sustained no loss? Was the charterer bound to pay hire for the time she was not in full working order, because, and solely because, he was holding her idle in Baltimore at the time she was hit, and apparently intended to keep her there, as in fact he did, until the desired loading could be obtained ?

But waiting for cargo was not the only use to which the vessel could have been put. She had enough coal in her bunkers to take her to Rotterdam, and the charterer was free within broad limits to employ her in such service as he saw fit. If he preferred to do nothing with her while the embargo lasted, was it any concern of the owner? Surely, the right to off-hire, otherwise existing, was not lost by nonuser. The injury impaired the power to use, by destroying to a degree the “thoroughly efficient state” in which the vessel was agreed to be kept, and when that happened, and for such time as it continued, the charterer became entitled to off-hire, whatever permissible use he was then [198]*198making of the vessel, or whether he was using her at all. He could not be held for hire when the power to use was taken away.

. The “loss of time” provided for in the charter party means the time during which the vessel was not in “full working” order as the result of an injury, and for that time the charterer was released from the payment of hire, although he would have made no use of her if she had not been disabled. It cannot be that he was bound to pay for a vessel he could not use, merely because he deemed it for his interest to keep her 'out of use. His right to off-hire' did not depend upon loss of profits, but upon the fa!ct that the vessel was not in a “thoroughly efficient” condition. Besides, as already mentioned, on notice of the accident and claim of off-hire, the owner took such possession of the vessel as was needful for making repairs, and that possession necessarily deprived the charterer of any use of her which otherwise he 'might have made. In that situation, and while it existed, the owner’s ■ right to compensation was suspended by the terms of the contract.

To review the many cases of more or less similarity would unduly expand this opinion and serve no useful purpose. None of them is directly in point, but the views above outlined are supported, as we think, by the following, among other, decisions: The Mediana, A. C. 113; La Compania Bilbaina, etc., v. Spanish-American L. & P. Co.,

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Bluebook (online)
274 F. 195, 1921 U.S. App. LEXIS 1328, Counsel Stack Legal Research, https://law.counselstack.com/opinion/suna-v-strick-line-ca4-1921.