Waterman v. Aakre

31 F. Supp. 8, 1939 U.S. Dist. LEXIS 1782
CourtDistrict Court, S.D. New York
DecidedDecember 29, 1939
StatusPublished
Cited by6 cases

This text of 31 F. Supp. 8 (Waterman v. Aakre) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Waterman v. Aakre, 31 F. Supp. 8, 1939 U.S. Dist. LEXIS 1782 (S.D.N.Y. 1939).

Opinion

WOOLSEY, District Judge.

My judgment in this cause is that the petitioner is entitled to a decree, with costs, exonerating it from liability and that there must be a dismissal, with costs, of the libel as against the Aakre, her owner, the Lamport & Holt Line, Ltd., and all the impleaded respondents.

I shall deal hereinafter with the question of costs as between the libelant and the impleaded respondent and as between them inter sese.

I. My subject matter jurisdiction herein is based on the fact that this is 'a cause in admiralty, Title 28 United States Code, Section 41(3), 28 U.S.C.A. § 41(3).

II. The Aakre is a steel, single screw, Norwegian motor vessel of 4,138 tons gross and 2,336 tons net, built in 1926 at Malmo, Sweden, and registered in Porsgrunn, Norway. She is 377.6 feet long, 54 feet wide and 22.9 feet deep. Her deadweight capacity is 7,090 tons.

On October 28, 1937, at 9 p. mu, the Aakre sailed from St. John, New Brunswick, for Buenos Aires, having on board some 88,900 cases of potatoes, which constituted practically her entire cargo.

At about 4:20 on the morning of October 29, 1937, the vessel stranded on Cheney Island near Grand Manan Island in the Bay of Fundy, and remained aground for several days.

[10]*10A large quantity of the potatoes were jettisoned in order to float the vessel and, as a result of delay and rehandling, much damage was suffered by the remainder of the cargo which became practically worthless.

III. The proceedings involved in this cause were commenced by the owners of the cargo filing a libel in rem against the Aakre, and in personam against Rederi A/S Henneseid, her owner — hereinafter called the shipowner — and Lamport & Holt Line, Ltd., her subcharterer — hereinafter called Lamport — claiming damages in the sum of $220,000.

Lamport thereupon filed a petition impleading Continental Grain Company— hereinafter called Continental — the time charterer of the Aakre, alleging that if there was any liability on its part it was due to a breach of the warranty of. seaworthiness contained in the sub-time charter between the said parties.

The shipowner thereupon filed a petition for exoneration from or limitation of its liability, alleging that the stranding was caused by an error in navigation, and the usual injunction was issued restraining prosecution of the libel or claims involved therein otherwise than in the limitation proceeding.

Claims were filed in the limitation proceeding by the, cargo claimants.

Contingent claims were also filed by Lamport and Continental for the sums for which, if held, they might be respectively liable.

Thereupon Lamport and Continental moved for orders modifying the restraining order in the limitation proceeding so as to permit them to file petitions impleading the shipowner in the cargo suit, and for consolidation of both causes for all purposes. The parties consented to the consolidation, and Judge Clancy granted the motions for modification of the restraining order to permit this impleading, and thus settle the rights of all the parties in one proceeding. The Aakre (Motions) 1938 A.M.C. 1370.

Accordingly thereafter third party petitions were filed by Lamport and Continental impleading the shipowner in the suit for cargo damage.

A cross petition was thereupon filed by the shipowner against both Lamport and Continental alleging, in substance, that if the bills of lading imposed greater liabilities on the shipowner or on the Aakre than were imposed by the charter from the shipowner to Continental then the shipowner would be entitled to be indemnified by Lamport and Continental for the con sequences of any such excess liabilities.

A similar cross-petition was filed against Lamport by Continental1 demanding that if it should be held liable to indemnify the shipowner in any amount, Lamport should in turn indemnify it therefor.

IV. The Aakre was under time charter to Continental and was subchartered on an identic form of time charter, mutatis mutandis, by Continental to Lamport.

Lamport’s agent, under date of October 28, 1937, signed, at St. John, New Brunswick, on its behalf the bills of lading issued for the cargo shipped on the Aakre at St. John.

A. It is common ground that the Canadian Water Carriage of Goods Act 1936, and its Schedule of Rules applied to the Aakre’s cargo.

The Water Carriage of Goods Act 1936 of Canada provides as far as here relevant:

“2. Subject to the provisions of this Act, the Rules relating to bills of lading as contained in the Schedule to this Act (hereinafter referred to as "the Rules”) shall have effect in relation to and in connection with the carriage of goods by water in ships carrying goods from any port in Canada to any other port whether in or outside Canada.

“3. There shall not be implied in any contract for the carriage of goods by water to which the Rules apply any absolute undertaking by the carrier of the goods to provide a seaworthy ship.

“4. Every bill of lading, or similar document of title issued in Canada which contains or is evidence of any contract to which the Rules apply shall contain an express statement that it is to have effect subject to the provisions of the Rules as applied by this Act.”

B. Turning to the Schedule of Rules relating to bills of lading, article IV, subdivision 1, provides:

“1. Neither the carrier nor the ship shall be liable for -loss or damage arising or resulting from unseaworthiness unless caused by want of due diligence on the part of the carrier to make the ship seaworthy, and to secure that the ship is properly manned, equipped and supplied, and to make the holds, refrigerating and cool chambers [11]*11and all other parts of the ship in which goods are carried fit and safe for their reception, carriage and preservation in accordance with the provisions of Paragraph I of Article III.

“Whenever loss or damage has resulted from unseaworthiness, the burden of proving the exercise of due diligence shall be on the carrier or other person claiming exemption under this section.”

Article IV of said Schedule, subdivision 2, provides, inter alia:

“2. Neither the carrier nor the ship shall be responsible for loss or damage arising or resulting from,

“(a) act, neglect or default of the master, mariner, pilot or the servants of the carrier in the navigation or in the management of the ship: * * *

“(c) perils, danger, and accidents of the sea or other navigable waters.”

Under the Canadian Water Carriage of Goods Act 1936, and its annexed Rules, it is, therefore, explicit that the burden of proving unseaworthiness is cast on cargo, and, if unseaworthiness is shown, the burden is then cast on the shipowner— if it wishes to escape liability — to go on with the evidence and to show that due diligence was used by it to make the ship seaworthy.

Under the Canadian Act due diligence is not made a proviso of any of the exceptions, but is to be considered separably therefrom.

C. The cargo claims, however, that by reason of clause 4 in the bills of lading issued by the sub-charterer, Lamport, the use of due diligence to make the vessel seaworthy is imported into the contract between cargo and ship as a proviso

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Cite This Page — Counsel Stack

Bluebook (online)
31 F. Supp. 8, 1939 U.S. Dist. LEXIS 1782, Counsel Stack Legal Research, https://law.counselstack.com/opinion/waterman-v-aakre-nysd-1939.