United States Shipping Board Emergency Fleet Corp. v. Turner

11 F.2d 921, 1926 U.S. App. LEXIS 2632, 1926 A.M.C. 1136
CourtCourt of Appeals for the Fifth Circuit
DecidedMarch 8, 1926
DocketNo. 4727
StatusPublished
Cited by1 cases

This text of 11 F.2d 921 (United States Shipping Board Emergency Fleet Corp. v. Turner) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States Shipping Board Emergency Fleet Corp. v. Turner, 11 F.2d 921, 1926 U.S. App. LEXIS 2632, 1926 A.M.C. 1136 (5th Cir. 1926).

Opinion

GRUBB, District Judge.

This was an action at law, brought in the District Court by the defendant in error as plaintiff against the plaintiff in error as defendant, for the recovery of damages for the breach of a contract alleged to have been entered into between the parties, the effect of which was to reimburse the plaintiff for losses sustained because of the interruption of a voyage of the Addison E. Bullard, a sailing vessel owned by the plaintiff, caused by a proclamation of the President, which became effective September 28, 1917, and which forbade sailing vessels thereafter to enter the war zone. The Addison E. Bullard was chartered to carry a cargo of lubricating oil from the United States to Prance; the real consignee being the republic of Prance. The firm of Lunham & Moore, of Hew York, was the agent of the charterers. The voyage of the Addison E. Bullard was made impossible by the prohibition of the proclamation. The trial resulted in a verdict for the plaintiff in the amount of $100,000, which this writ of error seeks to review.

The defendant, upon the trial in the District Court, denied the existence of any contract, contending that the minds of the parties had never met; that Amberg, the person who negotiated for the defendant, did not have authority to act for it, and, indeed, did not purport to act for it, but for the United States Shipping Board; and that, if there was a contract, it had no legal consideration. A brief statement of the facts will serve to illustrate the situation of the parties at the time of the negotiations:

When the voyage of the Addison E. Bullard became impossible, because of the proclamation of the President, the entire cargo, consisting of 8,500 barrels of oil, had already been delivered for carriage, and 660 barrels had actually been loaded on the ship. When notice of the termination of the charter was received by the owners of the Addison E. Bullard, the oil was redelivered to the agents of the charterers, Lunham & Moore, including that which had been loaded on the ship. After receiving the oil back, Lunham & Moore negotiated for its transportation to [922]*922France through Amberg, the representative of the Shipping Board, and secured it to be transported on a converted German steamship, which was operated by the United States Navy, and whieh had been renamed Pensacola, and it was in fact carried to France on the Pensacola. The oil passed out of the possession of the owners of the Addison E. Bullard prior to October 25, 1917. Lunham & Moore agreed with Am-berg to pay the same freight rate ($19 per barrel) which had been agreed upon with the owners of the Addison E. Bullard, and to pay in addition the difference in the cost of insurance on the cargo, as between a sailing vessel and a steam vessel, which amounted to about $83,000. The owners of the Addison E. Bullard, although they had released the cargo of oil, when notified that the voyage of the Addison E. Bullard would not be permitted, asserted a claim against the charterers for the loss caused by the interruption of the voyage.

After the new contract for the transportation of the oil in the Pensacola had been entered into, and after the oil had been released to the charterers by the owners of the Addison E. Bullard, and was on the high seas on its way to France in the Pensacola, Amberg came to New York from Washington to confer with Lunham & Moore, arriving in New York on October 25th. At this conference, Amberg told one Gwinter, of the firm of Lunham & Moore, that the Shipping Board would be willing to consider an allowance to the owners of all the sailing vessels, the voyages of which had been interrupted by the proclamation of the President, as a deduction from the freight rate, of their actual expenses, provided Lunham & Moore could get the owners of the sailing vessels to release them for that consideration. No contract to make such an allowance was entered into between Amberg, for the Shipping Board, and Gwinter, representing Lunham & Moore.

In pursuance of the general purpose to settle the losses of the owners of sailing vessels on this basis. Amberg met the plaintiff, Horace Turner, in the office of Lunham & Moore, on October 25 or October 26, 1917 (Turner testified it was 10 days earlier), in the presence of Gwinter, and it was at this meeting that the plaintiff claims the contract sued on was made. There were two subsequent conferences between Turner and Amberg in November, but there is no claim that any contract was made at either. If there was a contract at all, it was by virtue of what took place between Turner and Am-berg at their first meeting. The only witnesses who testified to that transaction were Amberg and Turner. Amberg denied that any contract either with Turner, acting for the owners of the Addison E. Bullard, or with Gwinter, acting for Lunham & Moore, was then made.

If the plaintiff has established the making of a contract with either, it was by the testimony of Horace Turner as to what took place on that occasion. His evidence on direct examination is as follows:

“At the time of this visit of Mr. Amberg to New York, in the offices of Lunham & Moore, they having sent for me, Mr. Gwinter, of Lunham & Moore, said that Mr. Am-berg was down for the Shipping Board to try to arrange this adjustment, and a joint conference ensued and Mr. Amberg said that the Shipping Board didn’t want to lose these ships — that they were needed — and had decided to adjust this matter amicably, if they could, by having the charterers, in this ease Lunham & Moore, pay all the money that would have been paid, had the shipment gone on the sailing vessel, $19 a barrel, and the difference between the steamer insurance, on whatever steamer it was lifted on, and the insurance on the sailing vessel, whieh we then did not know what the amount would be, excess insurance, we called it, into his hands, and that if we wouldn’t resort to litigation the Shipping Board would pay our losses. * * * That was agreed upon between the three parties. It was as near agreed upon as I could understand anything.”

The witness Turner on cross-examination testified as follows:

“They then got down to this other matter. Amberg said, if plaintiffs wouldn’t litigate, and would release Lunham & Moore on the charter, they would pay our losses and collect from Lunham & Moore all these expenses, the exact amount it would have cost Lunham & Moore if they had shipped this cargo by the Bullard; in other words, all freight and the amount they were going to figure as difference in insurance. He told Mr. Amberg that he would go into it with the understanding that he would be just as well treated as Feeley Pendleton, who he said was an ornery cuss and not going to deal with them; that he expected to get just as good treatment at Amberg’s hands for agree ing with him as Feeley Pendleton obtained by fighting. Amberg acquiesced — said that was reasonable, or words to that effect.”

A vast amount of correspondence and other documentary evidence appears in the record, and the claim of plaintiff is that it [923]*923contains admissions of agents of the defendant of the existence of the contract.

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Bluebook (online)
11 F.2d 921, 1926 U.S. App. LEXIS 2632, 1926 A.M.C. 1136, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-shipping-board-emergency-fleet-corp-v-turner-ca5-1926.