W. R. Grace & Co. v. Charleston Lighterage & Transfer Co.

98 F. Supp. 256, 1951 U.S. Dist. LEXIS 2212
District Court, E.D. South Carolina·Decided June 26, 1951·No. Nos. 1050, 1051·Published·Cited by 3 cases

Opinion

WARING, Chief Judge.

On the morning of October 22, 1949, the Steamship Santa Isabel arrived, in the port of Charleston. She was laden with a cargo consisting in large part of bananas but also with a considerable number of bales of Peruvian cotton. This last named is a long staple cotton and for the sake of cargo economy the bales are very tightly compressed. A quantity of this cotton cargo was consigned to and owned by the Libellants, W. R. Grace and Company, a corporation and Adolph Weil, Lionel Weil, Adolph Weil, Jr., Lucien S. Loeb, James L. Loeb, Alvin B. Weil, Emil Weil and Robert S. Weil co-partners doing business under the firm name and style of Weil Brothers.

For some time, similar shipments had been coming fi> Charleston at comparatively regular periods of approximately one week’s interval. It was requisite that these imported cotton shipments be subjected to fumigation treatments and it was the regular practice to have such cargoes transported by barge or lighter from the docking place of the steamship to the fumigation plant of the South Carolina State Ports Authority which is situate in the area commonly known as North Charleston. The most convenient and economical method of getting this cotton from ship to fumigation plant is for the bales of cotton to be unloaded directly from the hatches of the ship upon decked over barges known as lighters which are towed up the Cooper River in a northwardly direction to the fumigation plant, the distance being approximately nine miles. After the fumigation is completed, the cotton is then in condition to be shipped by rail, truck or water or any other method from the State Ports Authority which has all of these terminal facilities.

The agents for the shipping line had made arrangements for these transfers. Charleston Lighterage and Transfer Company which is a corporation was engaged in the business of transporting cargoes of this and other types for hire. It was not a common carrier but a private transfer line. It owned a towboat named “Josephine” and furnished towage facilities and, at times, obtained by lease lighters or barges and transported cargoes or materials. This Lighterage company engaged to take cotton cargoes from this line of ships, whenever they arrived, to the fumigation plant as above described. It appears, however, that the Lighterage company had a hard and fast agreement with the Merritt Dredging Company to give to the last named priority for the use of the “Josephine” and that in making these engagements for the transportation of cotton, the officers of the Lighterage company specified that Merritt should have a priority in case of conflict.

Shortly prior to the arrival of the Santa Isabel, agent of the shipping company and of the cargo owners advised the Lighterage Company of the expected arrival of the vessel with information as to the amount of cotton .cargo which would 'have to be lightered to the fumigation plant. It happened that just at that time, the “Josephine” was engaged on some work for the Merritt company and, due to the priority arrangement above described, Miss Sarah B. Sil-cox, the President and chief owner of Lighterage company conferred with the shipping agents and explained the exigencies occasioned by this priority and stated that there might be difficulty and almost certainly delay in getting the “Josephine” back into the port of Charleston in time for the proposed operation. As a result of these conferences and primarily through the good offices of Mr. Thaddeus Street, Jr., who is an officer in Street Brothers and in Carolina Shipping Company and in Charleston Stevedoring Company, all organizations connected or concerned with taking various parts in and facilitating the operations of the ship and cargo under consideration, it was arranged that another tug or towboat would be made available to tow the lighters. Mr. Street communicated with Mr. Burnett, manager of the White Stáck Towing Corporation, a corporation which 'owns and operates tugs and towboats in and around the port of Charleston. This company owns several tugs, among others one named “Fort Sumter”. It appears that the usual rate for towage charged by White Stack Towing Corporation was $25 per hour [259]*259whereas Lighterage company was performing this operation at a much cheaper rate, namely, $15 per hour. This presented a difficulty, but Mr. Street persuaded the manager of White Stack to accept this particular tow on that day at the same rate charged by Lighterage company. It appears that this was brought about by reason of the fact that there are intimate and reciprocal business relations between the various shipping and water front interests represented by Mr. Street and the White Stack company. In other words, the last named company agreed at this time, because of its business relations with ships and shipping represented by Street to accept this towing job and receive from Lighterage company just what the latter would charge and get, had the “Josephine” been available.

Charleston Lighterage being advised of the amount of cotton to be received and transported arranged to have available two lighters. The larger one was leased from an owner not in any way concerned or a party to this cause and will be merely referred to as the “large lighter” in description and consideration of the events involved in this suit. The second lighter which will hereinafter be referred to as the “small lighter” and is the “one lighter” a defendant, involved in this suit, was leased from Charleston Constructors, Inc., a corporation.

It appears that a number of years ago (about 1946) this company (hereinafter called Constructors) purchased this lighter. Constructors is a corporation engaged in varied building and constructing operations and does a fair amount of business in marine or semi-marine construction. And so it was deemed advisable for it to have for its own use a lighter for transporting materials, machinery and workmen, useful and to be used in operations along wharves, piers or other water front work. But this company did not have constant or continuous use for the lighter and so it was frequently made available to be leased to Lighterage company or others if and when its owner did not itself have it in actual use. On the day in question, October 22, 1949, this lighter was leased by Charleston Lighterage at a rental of $15 per day.

It appears that at the time the lighter was purchased, it was hauled up and certain repairs made to it. The lighter was an ordinarily constructed wooden barge with its bottom sheathed, the sheathing coming up about four feet on each side. Each end of the lighter was constructed on a slant so as to have overhangs such being commonly known as “rakes”. The lighter was a decked over barge with small hatches for use in going below. No cargo was stored in the hold and these openings were merely in the nature of manholes for access to the interior for repairs, inspection and, of course, for pumping out of bilge water. The deck was of ordinary planking and not caulked or made water-proof and there were no covers nor combings on or around the hatches. In other words, this craft was a barge of the type commonly known as a lighter to be used solely for deck loads: and by reason of its large and unused interior it had a high degree of buoyancy. The lighter was approximately 80 feet long by 30 feet beam and 7 feet from bottom to deck. ■

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W. R. Grace & Co. v. Charleston Lighterage & Transfer Co., 98 F. Supp. 256, 1951 U.S. Dist. LEXIS 2212 (southcarolinaed 1951).

98 F. Supp. 256 (W. R. Grace & Co. v. Charleston Lighterage & Transfer Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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