Yawata Iron & S. Co., Ltd. v. Anthony Ship. Co., Ltd.

396 F. Supp. 619, 1975 U.S. Dist. LEXIS 12039
CourtDistrict Court, S.D. New York
DecidedJune 5, 1975
Docket71 Civ. 456 JEL
StatusPublished
Cited by7 cases

This text of 396 F. Supp. 619 (Yawata Iron & S. Co., Ltd. v. Anthony Ship. Co., Ltd.) 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
Yawata Iron & S. Co., Ltd. v. Anthony Ship. Co., Ltd., 396 F. Supp. 619, 1975 U.S. Dist. LEXIS 12039 (S.D.N.Y. 1975).

Opinion

LUMBARD, Circuit Judge: *

On February 7, 1970, the ANTONIO DEMADES, a 700 foot cargo ship owned by the defendant, Anthony Shipping Co., Ltd., then under lump-sum charter to the Hugo Neu Corporation, and carrying over 25,000 tons of steel scrap, sank in the North Pacific on its way to Japan. The cargo owner, Yawata Iron & Steel Co., Ltd., brought suit in the Southern District on February 3, 1971, claiming the shipowner was responsible for loss of the vessel and Yawata’s steel scrap valued at |1,458,014.58 The determination of the cause or causes of the sinking in the February storm faces many difficulties of proof largely because the master and the first mate and the ship’s logs were lost along with eight members of the crew. As the court cannot say that the cargo owner has established its case by a fair preponderance of the evidence, judgment must be for the shipowner.

The ANTONIO DEMADES sailed from Boston for the Panama Canal on January 6, 1970. The crossing of the Atlantic Ocean and Caribbean Sea was relatively uneventful (except for one period of bad whether) and the ship ar- ‘ rived at Cristobal in the Panama Canal Zone on January 13, 1970. The ANTONIO DEMADES was reprovisioned and then transited the Canal and sailed from Balboa for Japan on January 14. After the ship crossed the International Date Line on February 1-2, 1970, the weather worsened. According to Second Mate Gregos (the only surviving deck officer), in the early morning hours of February 6 the wind was about force 7 on *621 the Beaufort Scale, 1 and the vessel reduced its speed. At about 1400 hours on February 6, the McGregor steel hatch cover on the No. 1 cargo hold (the forwardmost hold) failed, and the hold flooded. At that time the ship was sailing into the storm and the wave action on the forward part of the ship was such that the Master had to reverse course and reduce the vessel’s speed by one half in order to be able to lead a party forward to examine the hatch cover and No. 1 hold. It was discovered that two sections of the hatch cover had been twisted open and had been thrown on the deck. The hold was filled with water and the hatch cover could not be reclosed. Three hours later the Master turned the ship back into the wind and resumed his course towards Japan. About this time the ship’s crew began pumping water out of No. 2 and No. 3 cargo holds and No. 2 and No. 3 double bottoms. Ten hours later (0500 hours on February 7 the Master ordered the crew to stand by to abandon ship and ordered S.O.S. signals sent. At 0815 hours the order was given to abandon ship. Thereafter the vessel gradually went down by the head and sank. Twenty members of the crew were saved by a ship responding to the S.O.S., but all of the ship’s records were lost.

I.

The applicable law is contained in the Carriage of Goods by Sea Act (Cogsa). 46 U.S.C. §§ 1300-15. Under Cogsa plaintiff established a prima facie case by showing that the scrap was loaded on board the ANTONIO DE-MADES and that it was not delivered. After such a showing the burden is on the carrier “to bring itself within an excepted cause [under Cogsa] or to prove it exercised due diligence to avoid and prevent the harm.” Lekas & Drivas, Inc. v. Goulandris, 306 F.2d 426, 429 (2d Cir. 1962). If the carrier establishes that it falls within such an exception under 46 U.S.C. § 1304(2), the cargo owner must then establish that the vessel was unseaworthy and that the unseaworthiness was at least a concurrent cause of the loss. If the cargo owner establishes that, the carrier can still avoid liability if it shows that it exercised due diligence in an attempt to make the ship seaworthy. 46 U.S.C. § 1304(1); In re Grace Line Inc., 517 F. 2d 404 at 406 (2d Cir. May 19, 1975); Director General v. S.S. Maru, 459 F.2d 1370 (2d Cir.), cert, denied, 409 U.S. 1115, 93 S.Ct. 898, 34 L.Ed.2d 699 (1972); J. Gerber & Co. v. S.S. SABINE HOWALDT, 437 F.2d 580, 588 (2d Cir. 1971); G. Gilmore & C. Black, Law of Admiralty § 3-43, at 183-85 (2d ed. 1975).

II.

Defendant urges that two statutory exceptions absolve it of liability. 2 First, it suggests that the storm encountered by the ANTONIO DEMADES in the North Pacific was so severe that it constituted a peril of the sea. See 46 U.S.C. § 1304(2) (c). Second, it argues that the loss was due to an act by, or the neglect of, the master in the navigation or man *622 agement of the ship. See 46 U.S.C. § 1304(2)(a).

A. PERIL OF THE SEA

The Court does not believe that the storm encountered by the ANTONIO DEMADES was a peril of the sea. The evidence indicated that storms such as the one involved here were common occurrences during the month of February in this area of the North Pacific. Indeed, at trial defendant’s expert meteorologist testified that this storm was not even the worst storm of that month. Of course, the fact that such a storm should have been anticipated does not mean that the storm cannot have been a peril of the sea. However, in this case the court does not believe that the winds and sea encountered by the ANTONIO DEMADES were of such magnitude to constitute a peril of the sea.

Each side called an expert meteorologist who prepared exhibits showing the wind, sea, and swell conditions in the area of the North Pacific where the ANTONIO DEMADES sank. These exhibits were based on weather data that consisted largely of readings taken by other ships in the general vicinity of the ANTONIO DEMADES. According to custom, these readings were taken every six hours. Thus, the weather data most relevant to the conditions faced by the ANTONIO DEMADES when the hatch gave way at 1400 hours on February 6, 1970, were the readings taken at 1100 hours and 1700 hours on that date.

The two experts (Robert Raguso for the plaintiff and William Kaciak for the defendant) offered conflicting versions of the weather faced by the ANTONIO DEMADES at both 1100 hours and 1700 hours. Much of this difference can be explained by two factors. First, the two experts placed the ship in different positions. Kaciak assumed that the ship was in the same location (i. e., the S.O.S. position) at 1100, 1700, 2300 hours on February 6 and 0500 hours on February 7 while Raguso assumed that the ship gradually reached the S.O.S. position from points to the southeast. Second, Kaciak erred when he plotted the position of the ship. His exhibits indicate that he meant to place the ship at 33°15'N, 157°30'E, but close examination of the exhibits he prepared shows that he mistakenly placed the ship about 20 minutes to the north of that location.

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Bluebook (online)
396 F. Supp. 619, 1975 U.S. Dist. LEXIS 12039, Counsel Stack Legal Research, https://law.counselstack.com/opinion/yawata-iron-s-co-ltd-v-anthony-ship-co-ltd-nysd-1975.