Wellington Transportation Company v. United States

481 F.2d 108, 1973 A.M.C. 2682, 1973 U.S. App. LEXIS 9142
CourtCourt of Appeals for the Sixth Circuit
DecidedJune 27, 1973
Docket72-1955
StatusPublished
Cited by15 cases

This text of 481 F.2d 108 (Wellington Transportation Company v. United States) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Wellington Transportation Company v. United States, 481 F.2d 108, 1973 A.M.C. 2682, 1973 U.S. App. LEXIS 9142 (6th Cir. 1973).

Opinion

CELEBREZZE, Circuit Judge.

This is an appeal from the District Court’s entry of judgment for Defendant-Appellee, the United States, in an admiralty suit under 46 U.S.C. § 781 in which a shipowner sought indemnity for attorney fees and litigation expenses incurred in successfully defending against an earlier state court action brought against the shipowner by an injured Coast Guardsman. Appellant shipowner also sought to recover damages sustained by its ship and allegedly caused by the negligence of the captain of a Coast Guard cutter.

The claims arose on February 2 and 3, 1969, when the Coast Guard cutter, the Naugatuck, was rendering ice-breaking and towing services to Appellant’s auto ferry, the Sugar Islander, which was beset in the ice of the St. Mary’s River. In an attempt to pull the ferry free from accumulated ice and into a channel which the cutter had made, a 3% inch nylon mooring line was passed from the cutter to the ferry, and the eye of the line was placed over a cast-iron cleat located on the corner of the ferry closest to the cutter. At all times during the voyage under which the ferry became beset in the ice and during this attempted tow, Mr. Wellington, Appellant’s President and normally the captain of the ferry, was aboard the cutter and, the ferry was operated by its alternate captain.

After the line was secured to the cleat, the captain of the cutter — who was standing on the bridge, half in and half out of the pilot house — gave full power to the cutter’s engine, causing the cutter to surge ahead. The nylon line, which was capable of stretching 40 to 50 percent of its length began to smoke and fray. The cleat was torn from the ferry’s deck and flew forward, striking the freezer door on the fantail of the cutter. Then either the cleat or the nylon line hit and fractured the leg of Coast Guardsman Clinton Otto, a seaman on the cutter who — unknown to the captain of the cutter and unknown to Mr. Wellington and other personnel assisting in the tow — was on the fantail of the cutter, attempting to get an axe located on the opposite side of the cutter from where the line had been passed to the ferry.

Coast Guardsman Otto subsequently filed suit against Appellant in a Michigan state court, seeking to recover for his injuries on the grounds of Appellant’s alleged negligence and the alleged unseaworthiness of Appellant’s ferry. After a full trial to the jury, a verdict of no cause of action was returned. Although it was thus successful in defending against Otto’s state-court suit and was required to pay no damages to Otto, Appellant nonetheless incurred $12,500 in attorney fees, investigation expenses, witness costs and travel expenses directly related to its defense in the state-court action.

In its complaint before the District Court, Appellant sought to recover $500 in damages to the cleat, railing, and deck of its ferry, and $12,500 in attorney fees and expenses incurred in de *110 fending against Otto’s state-court suit. Alleging that the captain and crew of the Coast Guard cutter were solely negligent in the attempt to tow the ferry, Appellant asserted three basic theories as grounds for its claim for reimbursement of its attorney fees and litigation expenses: contractual indemnity, as recognized in Ryan Stevedoring Co., Inc. v. Pan-Atlantic Steamship Corp., 350 U. S. 124, 76 S.Ct. 232, 100 L.Ed. 133 (1956), and its progeny; tort indemnity ; and simple tort liability.

The District Court found that the cleat aboard the ferry was reasonably affixed for the purpose intended and that there was otherwise no negligence on the part of the ferry or its crew. The Court further found that the Coast Guard cutter and crew were negligent in applying a strong surge of power to the nylon line without ascertaining that the cutter’s fantail was clear of personnel. The District Court therefore concluded that the Coast Guard cutter and its crew were solely responsible for the injuries sustained by Coast Guardsman Otto and that Appellant’s ferry and its crew were in no way responsible for said injuries.

Notwithstanding these findings and conclusions, the District Court ruled that Appellant was without a remedy for the recovery of its attorney fees and litigation expenses. Ruling that the Coast Guard’s towing services were not rendered pursuant to any express or implied contract, the Court rejected the argument that Appellant was entitled to indemnity under Ryan Stevedoring Co., Inc. v. Pan-Atlantic Steamship Corp., supra. Because the United States was not liable for injuries suffered by Coast Guardsman Otto, as an active member of the armed services [Feres v. United States, 340 U.S. 135, 71 S.Ct. 153, 95 L. Ed. 152 (1950)], the District Court similarly held that the theory of tort indemnity between two tortfeasors was inapplicable to Appellant’s claims. The Court further held that Appellant had neither alleged nor proven that Appellee had committed a tort against it. Judgment was therefore entered for Appellee. 1

We agree with the District Court’s determination that the contractual indemnity recognized in Ryan Stevedoring Co., Inc. v. Pan-Atlantic Steamship Corp., 350 U.S. 124, 76 S.Ct. 232, 100 L.Ed. 133 (1956), is inapplicable to Appellant’s claim in the present case. In the Ryan opinion, the Supreme Court emphasized that the warranty of workmanlike service deemed to be given by a stevedoring company is neither quasi-contractual nor implied in law, but rather said warranty has its basis in contractual duties undertaken by the stevedoring company. 350 U.S. at 133, 76 S.Ct. 232. While it is true that the Ryan doctrine has been applied in cases where the contractual relationship between the indemnitor and the indemnitee has been more attenuated than in the Ryan case [see Waterman Steamship Corp. v. Dugan & McNamara, Inc., 364 U.S. 421, 81 S.Ct. 200, 5 L.Ed.2d 169 (1960); DeGioia v. United States Lines Co., 304 F.2d 421 (2d Cir. 1962)], we are neither referred to nor do we find any cases applying the Ryan doctrine where the indemnitor was not rendering services pursuant to its contractual duties. See Schwartz v. Compagnie General Transatlantique, 405 F.2d 270, 275-276 (2d Cir. 1968).

In contrast, as the District Court correctly ruled, the United States Coast Guard undertakes neither express nor implied contractual duties when it offers towing services to private ships in peril. Section 88, U.S.C. Title 14, provides that the Coast Guard may provide assistance to save lives and property.

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481 F.2d 108, 1973 A.M.C. 2682, 1973 U.S. App. LEXIS 9142, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wellington-transportation-company-v-united-states-ca6-1973.