Warrior Tombigbee Transportation Co. v. 5,775.674 Net Tons of Coal

570 F. Supp. 1405, 1984 A.M.C. 1877, 38 U.C.C. Rep. Serv. (West) 90, 1983 U.S. Dist. LEXIS 13664
CourtDistrict Court, S.D. Alabama
DecidedSeptember 16, 1983
DocketCiv. A. 82-0392
StatusPublished
Cited by2 cases

This text of 570 F. Supp. 1405 (Warrior Tombigbee Transportation Co. v. 5,775.674 Net Tons of Coal) is published on Counsel Stack Legal Research, covering District Court, S.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Warrior Tombigbee Transportation Co. v. 5,775.674 Net Tons of Coal, 570 F. Supp. 1405, 1984 A.M.C. 1877, 38 U.C.C. Rep. Serv. (West) 90, 1983 U.S. Dist. LEXIS 13664 (S.D. Ala. 1983).

Opinion

FINDINGS OF FACT AND ' CONCLUSIONS OF LAW

DANIEL HOLCOMBE THOMAS, Senior District Judge.

This was a non-jury admiralty case involving an in rem action to enforce separate maritime liens arising out of towage services from Brookwood to Mobile, Alabama, supplied to four separate parcels of coal. There was a separate in personam action against Smith Coal Sales Company for unpaid accounts pertaining to towage of the four parcels (barges) of coal which were seized in rem, as well as various previous towage services supplied to Smith pursuant to a transportation agreement. An additional in personam action against Abston Construction Company, Inc. was later added, by amendment, for collection of an account for towage of the four barges from Mobile to New Orleans, which towage took place after the Writ of Discharge. There were also various in personam counterclaims based on the same transactions. The trial was conducted on December 19 and 20, 1982, and after a careful consideration of the testimony presented, depositions, documentary evidence and arguments of counsel, the Court makes the following Findings of Fact and Conclusions of Law:

FINDINGS OF FACT

Abston Construction Company, Inc., Warrior Tombigbee Transportation Co., Inc. and Smith Coal Sales Company (hereinafter as Abston, Warrior and Smith), the parties to this lawsuit, are Alabama corporations and, at the times material to this lawsuit, were doing business within the State of Alabama and the jurisdiction of this Court.

The in rem defendants, four separate parcels (barges) of coal, were caused by plaintiff to be seized by the U.S. Marshal on April 20, 1982, while on board Warrior barges PV-183, AGS-339, PCBL-159 and *1407 MEMCO-1. At that time the barges and coal were in the custody of Southern Marine Fleeting Service in Mobile, Alabama, and also within the jurisdiction of this Court. There were approximately 1,400 net tons of coal on each barge.

Abston is an Alabama coal mine operator and at all material times was engaged in supplying various quantities of coal, both directly to customers, and indirectly, through the use of brokers as middlemen.

Between April of 1981 and approximately March of 1982, Abston had such a brokerage arrangement with Smith by which Abston would sell coal to Smith “F.O.B. Barge” at Abston’s loading facilities in Brookwood, Alabama. This was an oral agreement.

Pursuant to this arrangement, Smith, in turn, provided at its own expense, for the transportation of this coal it had purchased from Abston (and various other suppliers) to Smith’s customers.

For purposes of this subsequent transportation from the Abston docks in Brookwood, Alabama, to Smith’s customers, Smith primarily used two barge lines: Arrow Transportation Co. and the plaintiff herein, Warrior.

Warrior’s and Abston’s Contracts with Smith

On April 1, 1981, a contract was entered between Warrior and Smith for the barge transportation of approximately 45,000 tons of coal per month from three different coal loading docks along the Alabama rivers to Mobile. The contract was scheduled to terminate on March 31,1984. The rate per ton from Abston to Mobile was $5.55 per net ton. The contract called for demurrage at the rate of $150 per day per barge for the third through the seventh days after arrival in Mobile and $250 per day per barge thereafter.

A particularly important feature of the contract was paragraph “7” which reads: “Warrior Tombigbee shall be responsible for any loss of coal being transported for Smith. If any coal should be lost, Warrior Tombigbee shall reimburse Smith for such coal at the F.O.B. loading point price at the time the coal was loaded onto the barge.”

Also, Smith was obligated under the contract to pay the invoice amount upon receipt.

The Court finds that the contract language and surrounding transactions clearly show that Warrior, Smith and Abston considered that title to the coal passed from Abston to Smith at the time each barge was loaded.

There was nothing in the written contract specifically stating that Smith was obligated to pay fleeting and shifting charges. However, throughout the course of performance under this contract prior to Smith’s falling behind on its payments to Warrior, Smith paid Warrior all fleeting and shifting charges billed to it.

During this same time period, Abston and Smith had an oral contract whereunder Smith had agreed to purchase all coal made available for Smith by Abston at the rate of $45.75 per ton. The coal was sold by Abston to Smith on credit, F.O.B. barge. No attempt was made by Abston to retain a security interest in the coal sold. In 1982, due to certain financial difficulties of its own, Abston required Smith to pay within approximately ten days of loading. Abston would usually send Smith invoices for coal loaded on board barges within three or four working days after loading and Smith would pay on its account by checks in round figures such as $75,000, $250,000 or $350,-000. (Warrior Exhibit 46).

Whenever barges were presented at the Abston docks for loading, employees of Abston would operate the loading mechanism at the docks. No one from Warrior or the tugboats contracted by Warrior ever operated the loading mechanism. In addition, none of the Abston employees ever loaded any barges without prior authority from the Abston office. The person in the office who was primarily in contact with the loading docks was Abston’s president, Philip Abston. If a barge was at the loading docks and no one at the docks knew of prior authority for loading the barge, someone *1408 would contact the office to make sure that loading was authorized. Dock personnel were not permitted to simply rely on any statement by an employee of Warrior or the master of any tug in determining whether or not to load a barge.

• Whenever barges were being loaded samples of the coal would be taken by Commercial Testing & Engineering Co. (Commercial), to determine the quality of the coal. The testing was done for the account of Smith, and not Abston.

Pursuant to Smith’s arrangement with Abston, Smith would present either Warrior or Arrow barges for loading by Abston, from time to time and upon loading, the coal would be identified for Smith’s account with Abston.

Both Abston and Smith testified that pursuant to their customary arrangement, payment for the coal was due Abston immediately upon loading. This was not made contingent on finalization of Smith’s resale of the coal. Furthermore, payment would always come directly from Smith and not through Smith’s customers.

As a broker, Smith did not purchase coal to be held in inventory. Instead, when the coal was loaded aboard barges, there was already a particular destination and customer of Smith in mind.

In early March or April of 1982, Smith suffered a serious business reversal and “lost its contract”, that is, Smith suffered a termination of its contract to resell the coal it had been purchasing from Abston and other suppliers.

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570 F. Supp. 1405, 1984 A.M.C. 1877, 38 U.C.C. Rep. Serv. (West) 90, 1983 U.S. Dist. LEXIS 13664, Counsel Stack Legal Research, https://law.counselstack.com/opinion/warrior-tombigbee-transportation-co-v-5775674-net-tons-of-coal-alsd-1983.