United States v. Bethlehem Steel Company

235 F. Supp. 569, 1964 U.S. Dist. LEXIS 7945
CourtDistrict Court, D. Maryland
DecidedNovember 17, 1964
DocketAdm. 4599
StatusPublished
Cited by8 cases

This text of 235 F. Supp. 569 (United States v. Bethlehem Steel Company) 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
United States v. Bethlehem Steel Company, 235 F. Supp. 569, 1964 U.S. Dist. LEXIS 7945 (D. Md. 1964).

Opinion

THOMSEN, Chief Judge.

This is an action for declaratory judgment and other relief, based on 33 U.S. C.A. §§ 403 and 406. It arises out of the grounding in navigable waters just north of Brewerton Channel, off Sparrows Point, in the Baltimore Harbor, of a floating dry dock belonging to Bethlehem Steel Company (Bethlehem), which Moran Towing and Transportation Company, Inc. (Moran) had undertaken to tow down the Chesapeake Bay, through the Capes and out to sea so that it might be destroyed by sinking beyond the 1,000 fathom curve. The issues of law are novel and the facts are unprecedented.

The government contends that the grounded dock constitutes an obstruction to the navigable capacity of the Patapsco River, created by Bethlehem and Moran, within the meaning of 33 U.S.C.A. § 403, and that the government is entitled to an injunction under 33 U.S.C.A. § 406 requiring Bethlehem and Moran either to remove the dock or reimburse the government for the cost of removing it.

*571 Respondents contend that the case is not covered by sec. 403, but by the provisions of the Wreck Act, 33 U.S.C.A. §§ 409, 414 and 415; that the dock is a “vessel” or “other craft” abandoned by the owner within the meaning of sec. 409; and that any liability for the costs of removal is in rem against the dock and not in personam against either Bethlehem or Moran. In reply, the government argues that the dock is not a “vessel” or “other craft” within the meaning of sec. 409; and that even if the dock should be considered a “vessel” or “other craft”, it was deliberately or intentionally grounded> and that such a case the owner is not relieved from Personal liability,

The relevant statutes are set out in note 1 below. They were all included in the Rivers and Harbors Appropriation *572 Act of 1899, 30 Stat. 1151, now codified as part of Chapter 9 of Title 33, U.S. Code.

Historical Facts

Some of the facts have been stipulated. Other historical facts must be found from the testimony, which is conflicting or unclear on many points, and from the records of the parties and witnesses, which are often meager. In drawing inferences and in finding the ultimate facts, the Court has been aided in varying degrees by the expert knowledge and opinion of the witnesses called by the several parties. 2 It is unnecessary to set out in detail all of the incidents and other facts related by the several witnesses. The following summary will suffice.

The dry dock was built around 1920 by Crandall Engineering Company. It was of wooden construction, 360 feet long, had a capacity of 9,400 tons, and was composed of six trussed sections connected by steel pins. The pontoon of each section had a center-line bulkhead and a transverse bulkhead, forming four-compartments in each pontoon.

In 1930 Bethlehem purchased the dock for $345,000, and towed it from Charleston, S. C., to Bethlehem’s Key Highway Yard in Baltimore, Md., each section of the dock being towed separately.

The six sections comprising the dry dock at the time of the casualty are referred to as Nos. 1, 2, 3, 4, 5 and 7. An additional section had been inserted between the No. 5 and No. 7 sections in 1950, but was removed before the tow. No. 1 was the nearest section to the shore when the dock was in operation.

The dock itself was last dry-docked for inspection and maintenance in 1949. The seams were either rewedged or the existing wedges were driven up. The pontoon timbers were found to be in excellent condition and no renewals were *573 required. Thereafter, the dry dock was in continuous use by Bethlehem until October 4, 1962.

Two inspections were made in 1955 and 1961 to determine the lifting capacity of the dock. In 1961 the employees of the contractor who made the inspection entered only the pontoons of the No. 1, No. 3 and No. 6 sections. A leak was found in the No. 1 pontoon, which was repaired.

During 1962 Bethlehem closed some of its yards in the New York Harbor, making surplus several large dry docks, and decided to replace the 9,400 ton dock at the Key Highway Yard with a 20,000 ton dock from New York. Bethlehem decided that the cheapest way to dispose of the 9,400 ton dock would be to have it towed out of Baltimore Harbor, down the Chesapeake Bay, through the Capes, and out to sea, so that it could be sunk beyond the 1,000 fathom curve. The dock might have been dismantled, dried and burned, or beached and burned on some property in or near the Patapsco River owned by Bethlehem or which could have been purchased or leased by Bethlehem for that purpose.

Bethlehem entered into a written contract with Moran for the towing of the dry dock to a point beyond the 1,000 fathom curve, at a total cost to Bethlehem of some $10,000. Moran undertook the contract upon Bethlehem’s assurance that the dry dock was fit for the tow and on the condition that Bethlehem would indemnify Moran against any liability arising out of the unseaworthiness of the tow. Moran and Bethlehem arranged that the operation would be begun on or about October 17, 1962, provided weather conditions in the Bay were favorable, and Moran arranged to have the tow made by Curtis Bay, one of its wholly-owned subsidiaries. 3

Prior to the towage, Bethlehem removed all keel and bilge blocks and other equipment, including the pumps which had been used in the operation of the dry dock and which were run on current supplied from the shore. Four openings, each approximately one foot square, were cut in the deck of each pontoon, one in each of the water-tight compartments, for the insertion of portable pump suction hose. The holes were placed in the center of each section, so that one portable pump could be used to dewater all four compartments of a section without being moved. Bethlehem placed aboard the dry dock three portable gasoline pumps, each of which had a capacity of 250 gallons per minute. A Bethlehem employee, John F. Walker, made a cursory inspection of the several compartments to determine whether there was any leakage. He found no leakage beyond the customary leakage or seepage, which could be handled by one pump. Neither Walker nor anyone else went into the pontoons to examine the condition of the boards and the wedges and to determine whether or not there were any conditions which might cause trouble during a towing operation.

Particularly, no one remembered that a 12 inch by 12 inch opening in the No. 5 pontoon which had originally provided a pumping outlet had been plugged by two wooden blocks. No one checked to see whether those blocks were firmly in place, able to withstand the particular stresses, tensions and strains involved in a towing operation.

Bethlehem had had some experience in towing dry docks, as a unit and in separate sections. It knew or should have known that when a dry dock is being towed as a unit the foremost section is subjected to the greatest pressure because it moves against a hill of water, which is itself in continuous motion.

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Bluebook (online)
235 F. Supp. 569, 1964 U.S. Dist. LEXIS 7945, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-bethlehem-steel-company-mdd-1964.