Transamerica ICS, Inc. v. Dependable Container & Chassis Service, Inc.

622 F. Supp. 1488, 1985 U.S. Dist. LEXIS 13322
CourtDistrict Court, D. Maryland
DecidedNovember 29, 1985
DocketCiv. No. Y-84-3329
StatusPublished
Cited by1 cases

This text of 622 F. Supp. 1488 (Transamerica ICS, Inc. v. Dependable Container & Chassis Service, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Transamerica ICS, Inc. v. Dependable Container & Chassis Service, Inc., 622 F. Supp. 1488, 1985 U.S. Dist. LEXIS 13322 (D. Md. 1985).

Opinion

JOSEPH H. YOUNG, District Judge.

MEMORANDUM

Plaintiff Transamerica ICS, Inc. (“ICS”) filed suit against Dependable Container Chassis & Service, Inc. (“Dependable”) for the still-unexplained loss of 113 20-foot steel containers while the containers were in Dependable’s care and custody pursuant to a depot agreement between the parties. Dependable brought a third-party action against Marine Repair Services of Maryland, Inc. (“Marine”), claiming that it had entrusted the containers to Marine’s care. This Court heard the case without a jury October 18, 1985, and makes the following findings of fact and conclusions of law, whether or not so specifically designated.

[1490]*1490FINDINGS OF FACT

1. ICS is an owner and lessor of 20 and 40 foot intermodal shipping containers and is incorporated under the laws of the State of Delaware, with its principal place of business in White Plains, New York.

2. Dependable was a container depot operator between 1977 and March, 1984, and is incorporated under the laws of the State of Maryland, with its principal place of business prior to its cessation of business in March, 1984, in Baltimore City.

3. Marine Repair is a container depot operator with a place of business at 1701 Highland Avenue.

4. On or about April 1, 1980, ICS and Dependable entered into a written depot agreement for the repair and storage of ICS containers by Dependable in exchange for a fee. At all material times the aforesaid agreement was in effect between ICS and Dependable.

5. The depot agreement provided that Dependable would:

Use all reasonable care to protect the equipment of ICS in its possession from loss or damage and should be liable for any such loss or damage resulting from agent’s lack of care or that of its employees, agents or servants.

6. Between January, 1981 and September, 1982, ICS delivered to the Old North Point Road depot facility operated by Dependable for storage hundreds of containers among which were 113 20-foot steel ocean-going shipping containers identified by container number.

7. Dependable repositioned ICS’s 113 ocean-going shipping containers to its nearby Highland Avenue container storage facility for storage. By October 8, 1982, all of ICS’s 113 containers had been repositioned to and were located upon the Highland Avenue container storage facility.

8. By letter agreement dated September 22, 1982, effective as of August 9, 1982, Marine Repair subleased Dependable’s Highland Avenue container storage facility from Dependable and undertook all of Dependable’s rights and obligations pursuant to its lease with Apex Oil Company pertaining to the property.

9. When Dependable vacated the Highland Avenue premises, it left a group of ICS containers, including the 113 missing ICS containers, on the Highland Avenue premises.

10. Dependable left the ICS containers in a long, narrow shed, piled three deep, where the containers were not easily visible and even a rough estimate of the number of containers in the shed was impossible upon casual visual inspection.

11. Vincent Marino, Vice President of Marine, requested that Henry Johnson, Vice-President of Dependable, remove the containers from the Highland Avenue premises. Johnson assured Marino that he would remove the containers within three months, and Marino agreed to let the containers remain on the site as a favor to Johnson.

12. Marine made repeated requests to Dependable to remove the containers from the Highland Avenue premises. Finally, after several months had passed and it became apparent that Dependable would not move the containers, Marino, Johnson, and Vincent Marino, Sr., the Corporate President of Marine, entered into a verbal agreement whereby Dependable agreed to pay Marine for the storage of the ICS containers until it could move the containers elsewhere.

13. Under the terms of the agreement Dependable agreed to pay Marine for storing the containers from the date Marine had sub-leased the Highland Avenue site. Dependable said that there were 323 ICS containers left at the Highland Avenue site. Marine accepted that figure without making its own inventory and billed Dependable on the basis of that number.

14. Despite the oral agreement, Marine made repeated requests to Dependable to remove the containers from the property. The arrangement was unprofitable for Marine because depot operators dealing with ocean-going containers make their profits from the repair of the containers, not stor[1491]*1491age. In addition, the shed was a particularly valuable part of the Highland Avenue site because it protected containers from the elements, and Marine could not satisfy the requests of its customers to store other containers in the shed. As a result, Marine continually raised its storage charges to Dependable, eventually billing Marine $2,000 a month — three times the going industry rate — in an attempt to goad Dependable into removing the ICS containers.

15. Marine was aware that Dependable was experiencing financial difficulties at the time, largely as a result of a general downturn in the container industry. Dependable’s other facilities were full of unused containers during the period 1982-January, 1984, and it had no place to put the ICS containers. Dependable was also experiencing management difficulties during that period. As a result, Dependable lagged behind in its payments to Marine for the storage of the ICS containers, paying over $17,000 to Marine from mid-1983 to the end of that year, but failing to pay $12,732 in additional charges that were due Marine.

Í6. In late 1983, Vincent Marino, Jr. finally entered into a direct leasing agreement with ICS for the storage of its containers at the Highland Avenue facility. As part of its agreement with Marine, ICS paid Marine the balance of $12,732 owed by Dependable for the storage of the ICS containers.

17. During this entire period all bills submitted by Dependable to ICS for storage charges relating to the containers at Highland Avenue were paid.

18. At the request of ICS, Marine conducted an inventory of the ICS containers at Highland Avenue in early 1984 and discovered that 113 of the containers were missing.

19. It is the custom in the ocean-going-container depot business to keep inventory of all containers brought to the depot by use of a filing card system. The containers are numbered, and a separate card is maintained for each container. It is also the custom of the depot business to document transfers of the care and custody of containers with interchange receipts (“TIRs”). The TIRs reflect movements of containers in and out of a depot operator’s control, and bear notations with respect to required repairs.

20. When Marine took over the subleased premises at Highland Avenue from Dependable, the offices of the depot were in a shambles. No inventory cards for the remaining ICS containers were found. Dependable did not send TIRs to ICS evidencing any change of control over the containers, and in fact continued to bill ICS for storage fees.

21. When Dependable vacated the Highland Avenue site, it left behind other containers in addition to the ICS containers. During the fall of 1982 Dependable dispatched some of those containers out of the Highland Avenue site.

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Bluebook (online)
622 F. Supp. 1488, 1985 U.S. Dist. LEXIS 13322, Counsel Stack Legal Research, https://law.counselstack.com/opinion/transamerica-ics-inc-v-dependable-container-chassis-service-inc-mdd-1985.