The Humarock

234 F. 716, 1916 U.S. Dist. LEXIS 1506
CourtDistrict Court, S.D. Georgia
DecidedMay 13, 1916
StatusPublished
Cited by3 cases

This text of 234 F. 716 (The Humarock) is published on Counsel Stack Legal Research, covering District Court, S.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
The Humarock, 234 F. 716, 1916 U.S. Dist. LEXIS 1506 (S.D. Ga. 1916).

Opinion

LAMBDIN, District Judge

(after stating the facts as above). The court finds that the facts in the case are as set out in the foregoing statement which was prepared by it.

1. The first question is as to the amount that should be awarded as salvage to the Propeller Towboat Company for the services of its tugboat Paulsen and crew in rescuing the schooner from its perilous position on the North Breaker, and towing it to the Municipal Dock in Savannah, and for the services of its tugboat Cynthia in pumping the water out of the schooner up to the time it was anchored at the Municipal Dock, and also for the continuous services of its tugboat [720]*720McCauley, which lay by the schooner and continued to pump water out of its hold for 6% days, or 156 hours, night and day.

[1] The cargo owners and the ship owners contend that the alleged contract for pumping at the fate of $10 per hour was not established, and further that it was exorbitant, excessive, and inequitable, and made after the services were begun and while the schooner was in the possession of the libelant, and was therefore made under circum-^ stances which rendered the contract null and void. Capt. Foxwell, the master of the schooner, in his answer denied that such a contract was made, but, when placed on the stand as a witness in the trial of the case, stated that this denial in his answer was a mistake, and admitted that he did make the contract with Capt. Avery, the manager of the Propeller Towboat Company, for pumping the schooner Humarock, at the rate of $10 per hour. It is evident that he deceived his counsel in the preparation of his answer on this point. Capt. Avery testifies positively to the making of such a contract, stating that the contract was first made at $20 an hour, and that afterwards, realizing that several days would be consumed in pumping the schooner and thus keeping it afloat, he reduced the price to $10 an hour, which was agreed to by Capt. Foxwell. Mr. Farie, who represented certain underwriters in Savannah, was present during a portion of this conversation, and while he denied that he represented the cargo at the time, or had any authority to bind the cargo owner, he admitted hearing Capt. Avery state to Mr. Foxwell that the price would be $10 per hour. The court is of the opinion that the contract was sufficiently established.

The next question is whether this contract was made under such circumstances as would render it null and void. This pumping was carried on night and day, and the water rose in the schooner at the rate of a foot for every TO minutes, or 6 feet per hour. It was absolutely essential that -this pumping should be continuous until the water in the hold was controlled, and it was not under control until after the expiration of 6% days from the time the pumping began. Capt. Avery’s statement was that $25 per hour for a short time was reasonable, that $20 per hour was his regular price, and that he reduced the price to $10 per hour on account of the time it was supposed the pumping would be continued. It is true that for some portions £>i the time the pumps were only pumping at half speed, but thiá was owing to the fact that sometimes the water would be reduced so low that the pumps would not reach it; but the tug had to. lie by the schooner continuously, and its pumps were practically in continuous operation. According to the evidence, taking into consideration the wages and expenses of the creiw of the tug, and also the cost of the coal consumed, it appears that the cost of operating the tug and its pumps for a day of 12 hours was about $50. When we consider the wear and tear and depreciation of the tug and its machinery, as well as the interest on the investment (the tug was worth $30,000), and the fact that the pumps were operated 24 hours a day, and therefore a double shift of men was required, and all the other elements which enter into such matters, it is quite probable that the expense of operating the tug’s pumps for a continuous day of 24 hours would [721]*721probably amount to $100 or more. It is reasonable that the libelant would also expect a fair profit on this expense. The contract price was $10 an hour, or $240 per day. The court is of the opinion that this contract price, while reasonable for an operation continuing over a period of a day or two, is rather high for a period of 6% days.

However, the court is of the opinion that the price is not so unreasonable as of itself to vitiate the contract, if it is otherwise valid. The contract was not made out at sea, under circumstances of danger or duress. It was made in the city of Savannah, where the services of others might have been secured, and after full time for deliberation. Mr. Farie, the insurance agent, who appeared to have had some interest in the matter, and who was called into consultation, although disclaiming having authority to represent the cargo or any one else in the transaction, did not object to the price. Capt. Foxwell was a part-owner, and the other owners were in Philadelphia. He testified that he was at liberty, so far as Avery was concerned, to call any one else to do the pumping, and that Capt. Avery did not try to coerce him, and that the contract was entirely voluntary on his part, and that he made it as a business proposition, because he thought it best for tire ship. Fie considered himself free to employ any one else. He testified that he was a 24/e4 owner of the vessel, and he thought, if he could get the vessel pumped and unloaded, that the price would not be too much, and he thought that the pumping might continue for a week. It is true that under cross-examination Capt. Foxwell said that he understood that the schooner was in the possession of Capt. Avery, and that he did not feel as a free man to make a contract with him after he pulled the schooner up' the river. Yet he testified that he did not understand that Capt. Avery might object to his employing some one else, and said that he considered the price reasonable, and he repeated several times that he considered himself free to employ any one else if he chose.

Taking all of the evidence as a whole, and taking into consideration the fact that the contract was entered into openly, after full deliberation and consideration, and was made in the city of Savannah, where prices could have been obtained from other people, and both parties had equal means of knowledge, and where the parties at interest could have put an end to the contract promptly if they were dissatisfied with it, and considering, also, the apparent fairness of Capt. Avery, who advised Foxwell to consult with the owners of the cargo before making the contract, the court is of the opinion that no advantage was taken by the libelant or its manager, Capt. Avery, and that the contract was free from fraud, duress, compulsion, or other circumstances which would render the same null and void in law or equity. I therefore think that the same should stand. Capt. Foxwell seems to have been perfectly willing to make the contract, and neither he nor Mr. Farie demurred to same. Had the same not been considered reasonable, Capt. Foxwell should have made an effort to procure some one else, and if he had gotten a better bid no doubt Capt. Avery would have allowed the other person to have done the pumping. In view [722]*722of the circumstances existing at the time, it seemed then to be fair and reasonable, and the fact that it may afterwards have turned out to be a. very profitable contract (if, indeed, such was the case) is no reason to set the same aside.

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Bluebook (online)
234 F. 716, 1916 U.S. Dist. LEXIS 1506, Counsel Stack Legal Research, https://law.counselstack.com/opinion/the-humarock-gasd-1916.