The S. L. Watson

118 F. 945, 55 C.C.A. 439, 1902 U.S. App. LEXIS 4583
CourtCourt of Appeals for the First Circuit
DecidedNovember 20, 1902
DocketNos. 431, 432; No. 433
StatusPublished
Cited by20 cases

This text of 118 F. 945 (The S. L. Watson) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
The S. L. Watson, 118 F. 945, 55 C.C.A. 439, 1902 U.S. App. LEXIS 4583 (1st Cir. 1902).

Opinion

PUTNAM, Circuit Judge.

These appeals arise out of a breach of a written contract designated a “charter party,” dated on July 26, 1899, by which one Mr. Stanwood, as agent for J. C. Gilchrist, the [946]*946owner of the barges, and the claimant, who did business under the style of Gilchrist Barge Company, contracted that the barges Thomas P. Sheldon and S. L. Watson should transport five cargoes of coal from Lambert’s Point,fin Norfolk, Va., to Providence, R. I., at 80 cents per ton. The cargoes were to be delivered in Providence previous to October ist. It was stipulated that the barges should “take turn in loading, as customary,” and that, in case coal was not ready to load them when they reported for cargo, within a reasonable time, the owners should have the option of loading on other coal, and returning next trip to load under the charter. Forty dollars per day demurrage in case of detention of either barge by default of the charterer was also agreed on.

The first contention on the part of Gilchrist is that Stanwood had no authority to tie up the barges for five voyages. Gilchrist lived and did business at Cleveland, Ohio. The barges originally were engaged in lake navigation, but they had been sent to the Atlantic coast, and had been left without steady employment. Stanwood lived at Boston, where the charter party was negotiated and made. In a letter from Gilchrist to the representative of the charterer, who is the libel-ant, dated on October 23, 1899, in reference to the questions involved in these appeals, he wrote as follows:

“I think, if you will see Stanwood, that you can fix the matter up with him, if he is in any way at fault. I am most too far away from Boston to know just what to do.”

This letter, in connection with the other facts, shows that the circumstances called for a broad authority with reference to the employment of the barges. That authority was contained in the following agreement of July 24, 1899:

“Cleveland, O., July 24, 1899.
“We have this day arranged with A. Stanwood, of Boston, Mass., to look after the barges F. A. Georger, Moonlight, Charles Foster, T. P. Sheldon, S. L. Watson, M. S. Bacon, Verona, and W. S. Crosthwaite, now on the Atlantic coast, for us, and to allow him ten dollars ($10.00) each per month for the eight barges, beginning August 1st. Also a further compensation of 6% (six per cent.) of the net earnings of the barges. By the net earnings we mean what is left after all the bills are paid; and 6% (six per cent.) interest on a valuation of $120,000.00, and 10% (ten per cent.) for insurance on the same valuation, is deducted as an additional expense.
“Stanwood is to collect all freights promptly, and deposit same in the National Bank of the Redemption at Boston, to the credit of the Coal & Iron National Bank of Cleveland. He is to make no charge for commissions for the securing of the cargoes for the above barges, unless he cannot get his cargo direct, and is obliged to pay a broker a commission to secure it.
“This contract can be terminated any time that I may so desire.
“J. C. Gilchrist.
“Accepted by A. Stanwood.”

Immediately on the barges being chartered, Stanwood telegraphed to Gilchrist as follows: “I have chartered Watson afid Sheldon eighty Providence and tug has left.” There was no reply to this, and no inquiry by Gilchrist as to the terms of the charter; and, although it is conceded that one voyage was made under it, and payment was received for the freight thereof, no objection was made by Gilchrist until a letter from him of October 17, 1899, to the representatives [947]*947of the charterer, which was after the present controversy arose. In this he said that Stanwood had no authority to tie up any of the tonnage for more than a trip at a time. He also referred to the expression “beginning August ist” in his contract with Stanwood.

As, under the circumstances, it is evident that a contract so loose and informal as that of July 24th, on which both Stanwood and innocent parties had acted, must be construed to sustain such action, if reasonable to do so, the expression “beginning August ist,” is, easily disposed of, as pertaining only to the time from which the monthly compensation should be computed. In the same way the sweeping expression in the contract “to look after the barges” can properly be held to have given Stanwood large discretion as to the method of chartering them, provided nothing unreasonable was attempted by him. It is too clear to need detailed remarks in regard thereto that, looking at the nature of the business, and the season of the year, and the character of the business involved, it was quite as reasonable for Stanwood to have arranged by one charter for a certain number of voyages within a limited time of about two months, as to have stipulated in several charters for voyages one on the heel of another. In order to keep the barges steadily employed, he would have been obliged to do one or the other, even under the strictest terms of his authority; and it would be unreasonable to hold that Gilchrist intended his property should remain unemployed. However, the contract between Gilchrist and Stanwood can easily be construed to sustain the charter party before us, and therefore, according to settled rules, it should be so construed, if necessary, to uphold what was done, if not unreasonable, between Stanwood and innocent parties.

We reach this conclusion without going into the question of ratification, although; on ordinary principles, if Gilchrist, on being informed as to the charter party, saw fit not to inquire into its terms,, he must, for the just protection of the charterer, be assumed to have been content to rely on Stanwood, and thus, under the circumstances, to be held estopped from afterwards disputing, to the prejudice of the charterer, what was done.

The parties agree that the Sheldon performed one voyage under the contract. It is claimed by Gilchrist that the Watson performed one thereunder, but this is denied. The charterer admits that the Watson performed a voyage, but claims that it was under a prior oral charter for a single trip, also made by Stanwood. Aside from these voyages, neither barge performed any, and Gilchrist was in fault in that respect, without any justification, or even excuse, therefor. Therefore Gilchrist must be held to have been a willful violator of his contract in this particular, and the remaining facts in the case are to be scrutinized and weighed from that standpoint.

The district court found, as claimed by the charterer, that no voyage was performed by the Watson under the written contract, and assessed damages based on a refusal to transmit four of the five cargoes stipulated for. The claimant maintains that damages should be assessed for only three cargoes, on the ground that the Watson performed one voyage. It is admitted that the Watson did perform a voyage, sailing from Lambert’s Point for Providence at the same [948]*948date as the Sheldon,—that is, August 2d,—delivering the coal to the same consignee, and receiving payment therefor at the same rate, 80 cents per ton. There is nothing in what was done in connection with this voyage to enable the court to distinguish it from a voyage under the written charter. The case, however, is made positive in favor of the claimant by a letter from the charterer to the Providence Gas Company of July 20, 1899.

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Bluebook (online)
118 F. 945, 55 C.C.A. 439, 1902 U.S. App. LEXIS 4583, Counsel Stack Legal Research, https://law.counselstack.com/opinion/the-s-l-watson-ca1-1902.