The Poznan

276 F. 418, 1921 U.S. Dist. LEXIS 973
CourtDistrict Court, S.D. New York
DecidedJuly 9, 1921
StatusPublished
Cited by46 cases

This text of 276 F. 418 (The Poznan) 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
The Poznan, 276 F. 418, 1921 U.S. Dist. LEXIS 973 (S.D.N.Y. 1921).

Opinion

LEARNED HAND, District Judge

(after stating the facts as above). The first question is whether there was a breach of contract in failing to deliver the cargo at Havana, a question quite distinct from whether the prepaid freight must be returned. Every one agrees that the understanding to deliver as evidenced by the bills of lading was absolute except in so far as it was excused, and there are only two excuses offered : . First, that the venture was frustrated by impossibility of performance; second, that performance was excused under the terms of the bills of lading themselves. For the sake of argument I shall assume for the moment that the respondents are right in saying that between October 9 and November 25, 1920, they had no opportunity of berthing the “Poznan” anywhere in the harbor of Havana, that they could not have discharged in lighters, and that there were no other Cuban ports which offered better advantages. If the bill of lading or the law excused them from delivery, they were right in returning to New York, but if it did not, they were still in duty bound to make right delivery at Havana, and they should have waited till a berth was avail[425]*425able. This feature o f the case arises later; it has nothing to do with the question whether there was excuse for breach, which I am now considering.

[1] The case is clearly not one of fnistration within the rule of The Kronprinzessin Cecilie, 244 U. S. 12, 37 Sup. Ct. 490, 61 L. Ed. 960, The Claveresk (C. C. A.) 264 Fed. 276, and Bank Line v. Capel & Co., L. R. (1919) A. C. 435, and Tamplin S. S. Co. v. Anglo-Mex. Pet. Co. (1919) 2 A. C. 397. It is perhaps needless to repeat that these are but instances of the general rule that subsequent events, making the performance of a contract impossible, may be so unforeseen and so completely disappoint the expectation of the parties as to absolve the prom-isor from performance. The rule is, it is true, generally put as though the question were one of intent, but Ihis is, strictly speaking, untrue. The parties have no intent whatever on the subje.ct, because they assume that performance will take place, and are ordinarily not thinking of the promisor’s failure. Yet any promisor recognizes that his performance is subject to some risks, which may prevent fulfillment, and such risks he must be understood as accepting when he makes the promise. Day v. U. S., 245 U. S. 159, 161, 38 Sup. Ct. 57, 62 L. Ed. 219. To excuse performance altogether and leave the promisee without remedy for his loss, courts have always found it necessary, though with various degrees of strictness, that the intervening event which prevenís performance shall be so improbable as to be outside any contingency, which, had the parties been faced with it, they would have agreed that the promisor should undertake. Chic., M. & St. Paul v. Hoyt. 149 U. S. 1, 14, 15, 13 Sup. Ct. 779, 37 L. Ed. 625; Globe Refining Co. v. Landa Cotton Oil Co., 190 U. S. 540, 543, 23 Sup. Ct. 754, 47 L. Ed. 1171; Carnegie Steel Co. v. U. S., 240 U. S. 156, 165, 36 Sup. Ct. 342, 60 L. Ed. 576; Sun Printing & Pub. Assoc. v. Moore, 183 U. S. 642, 655, 22 Sup. Ct. 240, 46 L. Ed. 366; Berg v. Erickson, 234 Fed. 817, 148 C. C. A. 415, L. R. A. 1917A, 648 (C. C. A. 8th). Prima facie he is bound, however impossible it may be for him to perform, and as Prof. Williston (Wiiliston on Contracts, § 1937), says, the exceptions which have grown up since the middle of the nineteenth century, whether phrased as “implied conditions,” or as “the intent of Hie parties,” are in truth no more than equitable modifications of the agreement. They depend, not upon a better understanding of what the parties said, but upon declining to enforce the undertaking in cases which lead to extravagantly unfair results.

[2] 1 ti the case at bar there is no reason whatever to excuse the ship. All the conditions in the harbor of Havana were perfectly well known in September. 1920, when the cargo was accepted. Indeed the Acme Company, just because of those conditions, tried to get a special wharf from Guidera and to have lighters and hulks on hand in which to discharge. No one will be hardy enough to suggest that the failure of those negotiations would excuse, especially as an unusual rate was charged against them, nor would there be the slightest ground to entertain the defense at all, except for the promulgation of the moratorium on October 10th. If this were the cause, of the ship’s default, it might well be that the case was one of frustration, because that might possibly [426]*426be so unexpected an event as to be fairly beyond the range of any putative “intent” .of the parties. At least I shall assume as much, and take up the question of the actual effect of the moratorium upon the situation. Unfortunately, though perhaps necessarily, the evidence is vague, and it is also conflicting.

The only way in which the moratorium could have played a part, and this I understand to be conceded, is by preventing merchants from withdrawing their goods from the “habilitated” warehouses or the lighters, thus keéping these full of goods. A fair test of its effect should therefore be the daily withdrawals of goods through the Custom House before and after October 10th. Importations into the port of Havana we should also expect to fall off after the moratorium, though apparently that was exactly what did not happen, but that consideration is irrelevant, because any crowding which was due to importations after the Poznan arrived makes no difference. She was chargeable with getting the benefit of the date of her arrival, and in so far as the delay in receiving the manifest prevented her from doing so, she is to blame. The question really becomes this: What was the mass of accumulated merchandise of which she must await the withdrawal, and how far was that withdrawal delayed by the moratorium?

The figures given by Yero in his general list show September packages withdrawn at 1,421,000, October, 1,155,000, November, 1,207,000. In his detailed statement given later the footings for September and November are about the same, but those for October are 1,550,000, of which 474,000 were before October 10th, and 1,076,000 for the balance of the month. The discrepancy is not accounted for. If the later list be taken, the daily average of withdrawals from September 1st to the date of the moratorium was about 56,000 and from the moratorium to December 1st about 50,000. The daily withdrawals in October after the moratorium were nearly 60,000. On these figures it would appear that the moratorium did not stop withdrawals from the warehouses and lighters at all. If the first figure for October be taken and divided by 3, the daily figure for September and the first third of October is 53,000, for the last two-thirds of October and November is a little less than 44,000 and for the last two-thirds of October alone about 43,000.

Accepting the earlier figures as most favorable to the ship, there is still no reason to attribute to the moratorium any such effect as could possibly be deemed a frustration of the enterprise. There was some slackening in the withdrawals, say an average of 10,000 packages a day, i.

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Bluebook (online)
276 F. 418, 1921 U.S. Dist. LEXIS 973, Counsel Stack Legal Research, https://law.counselstack.com/opinion/the-poznan-nysd-1921.