Waldie v. Steers Sand & Gravel Corporation
Opinion of the Court
The Red Star Towing and Transportation Company and the Steers Sand and Gravel Corporation appeal from a decree in the admiralty, which held the Red Star Company primarily, and the Steers Company secondarily, liable for damage to the libellant’s barge, caused by resting upon the uneven bottom of a berth alongside a wharf at Fort Slocum. The libellant sued the Steers Company as charterer of the barge; and the Steers Company impleaded the tug, which delivered the barge at the wharf, the consignee
The books contain a good deal of discussion as to the duties of wharfingers, consignees and tugs towards barges, damaged by unknown boulders, piles, shoals or other obstructions in the bottom of berths at which they are moored. Panama R. Co. v. Napier Shipping Co., 166 U.S. 280, 17 S.Ct. 572, 41 L.Ed. 1004, is to be set down rather as a case where the wharfinger actually knew that the berth was foul; but in Smith v. Burnett, 1898, 173 U.S. 430, 19 S.Ct. 442, 43 L.Ed. 756, the court rested liability upon the failure of the respondent, at once the consignee and the wharfinger, to acquaint itself with the berth. For this it relied for the most part upon English and state cases; but laid down no more specific principle than that the care must be that called for by all the circumstances. Already in 1880 Judge Choate had exonerated a tug because “reasonable care” did not include acquaintance with the bottom, Powell v. The Willie, D.C., 2 F. 95 (affirmed by Blatchford J. on the opinion below in C.C.N.Y., 8 F. 768); and we have often held or implied, that the liability of wharfingers, consignees, or tugs, is to exercise “reasonable care,” and is to be determined in each situation by balancing the risks imposed upon others by not taking precautions against the cost and trouble of the precautions. In short we have treated the situation as an ordinary case of “negligence.” Schoonmaker v. City of New York, 2 Cir., 167 F. 975; Stevens v. Maritime Warehouse Co., 2 Cir., 263 F. 68; The W. H. Baldwin, 2 Cir., 271 F. 411; M. & J. Tracy Inc. v. Marks, Liss berger & Son, 2 Cir., 283 F. 100; Berwind-White Coal Mining Co. v. City of New York, 2 Cir., 48 F.2d 105; The Gildersleeve, 2 Cir., 68 F.2d 845; Berwind-White Coal Mining Co. v. City of New York, 2 Cir., 135 F.2d 443. See also Atlantic & Gulf Shipping Co. v. Marine Contracting & Towing Co., 5 Cir., 26 F.2d 70. We do not mean that this results in imposing the same degree of care upon all three classes; for example, as Hough J. indicated in M. & J. Tracy Inc. v. Marks, Lissberger & Son, supra, 283 F. 100 at page 102 the reputation of a wharf may excuse a consignee, and a fortiori a tug, though it would not excuse a wharfinger. A wharfinger invites vessels to use his wharf and induces them to suppose that all berths are safe:
As we have already indicated, it does not follow that the contractor, as consignee, should also have been exonerated. It had been at work on the Fort Slocum job for about a month, although the record does not show whether during that time other barges had been moored at the wharf, or where they had been berthed. On the other hand, the bargee swore that the shoal was actually exposed at low water, and his is the only testimony on the point. We should hesitate to exculpate a consignee who directed barges to such a wharf without warning them that part of what at high water seemed a fair berth was in fact a foul one. There could be no question of his liability, if the consignee actually knew this; and, if he had been using such a wharf for a month, it is at least extremely doubtful whether he would not be charged with notice of so recurrent and open a danger. The judge made no finding upon this issue, because he held that in any event the contractor’s surety had not taken over performance of the contract; and we agree, although the evidence is not wholly free from doubt. When it became obvious that the contractor was in danger of defaulting, the surety was willing to make further advances, provided it could be properly secured; and the parties therefore arranged that all money received by the contractor should be put within the surety’s control. As part of that plan the contractor agreed that the surety might install an engineer, McClary, retained by the surety, whom the parties in the contract “designated * * * to supervise and to have full charge and control of the Contract.” His “decisions” were to be “binding on the parties in so far as the Contract, the procedure for carrying the same on and the payments to be made thereunder are concerned.” It must be owned that, if nothing more had appeared, this language might have been enough to charge the surety as the party in charge of the work; but more did appear. The contractor’s president testified that, at the time in question, the contractor had employed one, Moore, as “superintendent of the job” —later succeeded by one, Hillary — and that McClary never gave “directions as to the doing of the work,” or made any contracts or ordered any materials. The surety was certainly not the contractor’s partner (Martin v. Peyton, 246 N.Y. 213, 158 N.E. 77); nor was the contract all that determined their relations. If McClary — no matter how the contract described his powers — in fact did not have charge of the
Decree reversed; libel dismissed as against all the respondents.
Sol Lustbader, Inc., impleaded as a party, but never served.
070rehearing
On Petition for Rehearing.
The libellant petitions for a rehearing of so much of our original disposition of this appeal as dismissed her libel against the charterer, to which, she argues, any negligence of the consignee is to be imputed. So far the charterer agrees; and, indeed, we have just so decided in O’Donnell Transportation Co. Inc. v. M. & J. Tracy, Inc., 150 F.2d 735. But the charterer replies that the libellant did not prove the consignee negligent in offering the berth to the barge, and that, since it— the charterer — proved how the loss had happened, and offered evidence in exculpation of the consignee, the libellant lost any advantage arising from the original presumption against the charterer, as such; and did not carry the burden of proof on the issue. The judge made no finding as to the consignee’s negligence, and the question was probably not tried out as fully as it would have been, had it then been supposed to be crucial. Now that our reversal of the decree against the tug has made it so, it seems to us equitable not to dismiss the libel as against the charterer on this record; but to remand the cause for further trial, though between these two parties only.
Upon that trial, for the reasons just given, the charterer will be free of any presumption, and the libellant will have the burden of proof; furthermore we do not regard the issue as foreclosed upon the present record. We did indeed say that, if the consignee had been using the wharf for a month, we should hesitate to hold that it would not be charged with notice that part of the bottom alongside was exposed at low water, and with the duty of warning barges of that fact. However, it is to be remembered that only the bargee so testified, and, moreover, that, according to him, at the actual berth where the barge lay, her bows were thirty feet or more outside the exposed shoal. How far the existence of the shoal where he placed it would impose a duty upon the consignee to give any warning whatever to barges which moored where the libellant’s barge was made fast, is another matter, about which we do not express any opinion.
The libel against the charterer will not be dismissed, but the cause will be remanded for trial between the libellant and the charterer upon the issue of the consignees negligence.
Reference
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- WALDIE v. STEERS SAND & GRAVEL CORPORATION Et Al.
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- Published