Venore Transportation Co. v. Oswego Shipping Corp.

498 F.2d 469, 1974 U.S. App. LEXIS 8145
CourtCourt of Appeals for the Second Circuit
DecidedJune 13, 1974
DocketNos. 871-894, Dockets 74-1007, 73-2759
StatusPublished
Cited by6 cases

This text of 498 F.2d 469 (Venore Transportation Co. v. Oswego Shipping Corp.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Venore Transportation Co. v. Oswego Shipping Corp., 498 F.2d 469, 1974 U.S. App. LEXIS 8145 (2d Cir. 1974).

Opinion

LUMBARD, Circuit Judge:

Defendant and third party plaintiff, Oswego Shipping Corporation, a time charterer, and third party defendant, Banco do Brasil, a voyage charterer, appeal from a judgment in the Southern District which awarded $265,727.29 to plaintiff, Venore Transportation Company for breach of warranty of safe berth by both Oswego and Banco do Brasil resulting in damage to the SS Santore, of which Venore was owner pro hac vice.1 Concluding that the acts and conduct of Oswego and Banco do Brasil were responsible for the damage to the Santore, 363 F.Supp. 1366, 1374 (S.D.N.Y.1973), Judge Weinfeld held that “there should be a division of damages” with Oswego, the time charterer, directly liable to Venore for the full extent of loss, and Ban-co do Brasil required to indemnify Oswego for one half of the judgment recovered by Venore.

On appeal, Oswego argues that it is entitled to full indemnification from Banco do Brasil. Banco do Brasil also appeals and seeks to avoid any liability by maintaining that a safe berth was, in fact, provided the Santore; that even assuming the berth was not safe, the intervening negligence of the vessel relieved the charterers from liability; and that, in any event, the intervening negligence of the time charterer, Oswego, relieved it, the voyage charterer, from any obligation to indemnify. The judgment of the district court is modified with regard to the division of damages to the extent that we hold that Banco do Brasil must indemnify Oswego in full. As so modified, the judgment is affirmed.

On April 24, 1964, the SS Santore, a 14,095 gross-ton ship, owned pro hac vice by Venore Transportation Company, sailed from Galveston, Texas, loaded with a full cargo of wheat destined for hunger-stricken northeastern Brazil. The ship was under a standard New York Produce Exchange form of time charter, clause 6 of which provided that “the cargo or cargoes be ladened and/or discharged in any dock or at any wharf or place that charterers or their agents may direct, provided the vessel can safely lie always afloat at any time of tide, except at such place where it is customary for similar size vessels to safely lie aground.”

Oswego, in turn, had entered into a voyage charter with Banco do Brasil which provided in part that Banco do Brasil would assure safe berths in Salvador, Recife, and Fortaleza, the Brasilian ports at which the SS Santore was to discharge its cargo.

On the evening of May 8, 1964, the SS Santore arrived in Salvador. She was to dock at a pier known as the “Coal Wharf” where two receivers designated by Banco do Brasil maintained equipment for the discharge of grain. At the time of the Santore’s arrival, however, another ship was occupying the berth, so that the Santore remained at an anchorage outside the breakwater awaiting the departure of this other vessel.

Two days prior to the Santore’s arrival, Captain Edward Long, Oswego’s port [471]*471captain, had arrived in Salvador to arrange for the ship’s docking and the expeditious discharge of cargo. Captain Long, who had never before been in Salvador, discussed docking arrangements with Cory Brothers, Oswego’s agents in Salvador, and spoke with the receivers designated by Banco do Brasil, Moinha da Bahia, S.A. and Bahia Industrial S. A., about the installation of special equipment to facilitate the unloading process. He also inspected the wharf and concluded that it was satisfactory in all respects. While there, he noticed that two pontoons were placed between the pier and the discharging vessel then lodged there, the purpose being to prevent the ship from striking against the concrete pier and to enable the vessel to float in water deeper than its draft while docked.

After the SS Santore’s arrival, Captain Long went on board and discussed with Captain Edelheit, the ship’s master, plans for discharging the cargo. At this time, Captain Long informed him about the use of the pontoons at the berth.

On May 10 at about 1:00 p. m. the Santore proceeded to the Coal Wharf for docking. As the ship neared the dock, it was noticed that one of the pontoons was missing. After inquiries were made by the harbor pilot, he and Captain Long reported back to Captain Edelheit that the pontoon had been damaged, that it would be returned within a few hours, and in the meantime it would be “all right” for the Santore to moor with one pontoon.

Relying on these assurances, Captain Edelheit, who had no familiarity with the port at Salvador and had had no prior experience with pontoons, proceeded to dock the ship. After he and Captain Long were convinced that the unloading equipment'was functioning properly, Captain Long went ashore, followed shortly thereafter by Captain Edelheit at about 6 p. m. While the captains were ashore, the weather changed. First there were brief squalls and intermittent rain; thereafter there was torrential rain, thunderstorms, and squalls. When Captain Edelheit returned to the ship at 10:30 p. m., the SS Santore was rolling and slamming into the pier with the single pontoon acting as a pivot.

At 1:20 a. m., the ship took a sharp roll and crushed the pontoon. Fearful that the vessel would be seriously damaged, Captain Edelheit went ashore to get a pilot and a tug to assist in moving the ship to open water. Because he could not speak Portuguese, he encountered some initial difficulty in obtaining assistance, but eventually contacted Cory Brothers, Oswego’s agents in Salvador. A pilot was found and the SS Santore was moved from its berth. Subsequent investigation revealed that the bow of the ship had been sharply dented and that several of its hull plates had been pushed in as a result of the ship’s smashing against the dock and the pontoon.

After leaving its berth, the ship remained at its earlier anchorage beyond the breakwater until May 13. During this period Captain Edelheit refused to return to the pier without an assurance that at least two, and preferably three pontoons would be provided. On May 13, the Santore finally docked at a different berth which had three intact pontoons.

I.

The first question which we address is whether there was intervening negligence on the part of the ship’s master, Captain Edelheit, relieving the charterers of liability. See, e. g., Ore Carriers of Liberia, Inc. v. Navigen Co., 435 F.2d 549 (2d Cir. 1970); Nassau Sand & Gravel Co. v. Red Star Towing and Transportation Co., 62 F.2d 356 (2d Cir. 1932). We agree with Judge Weinfeld’s conclusion that there was no such negligence. Prior to docking the SS Santore, Captain Edelheit relied on the assurance of Captain Long and the harbor pilot that a second pontoon would be supplied shortly and that in the interim it would be “all right” to berth the vessel with only one pontoon. Being unfamiliar with conditions in the harbor, the [472]*472master was entitled to rely on these assurances. Moreover, as Judge Weinfeld emphasized, “even had no assurances been given, the charter party was itself an express assurance that the berth was safe, upon which the Master had a right to rely.” 363 F.Supp. at 1371. Cities Service Transportation Co. v. Gulf Refining Co., 79 F.2d 521, 524 (2d Cir. 1935).

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498 F.2d 469, 1974 U.S. App. LEXIS 8145, Counsel Stack Legal Research, https://law.counselstack.com/opinion/venore-transportation-co-v-oswego-shipping-corp-ca2-1974.