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Smart Summary

Factual and Procedural Background

General Foods Corporation, as purchaser and owner of bills of lading, shipped over 7,800 bags of cocoa beans aboard the United States owned S.S. Thomas Haywood in September 1946 for carriage from Port Bouet to New York. The cocoa beans were stowed in various holds and compartments of the ship, which had previously been loaded with wet logs. The vessel experienced generally fair weather during the voyage, except for rough weather the day before arrival in New York. The ship's ventilators, crucial for cargo ventilation, were barely adequate and were covered during the rough weather. Upon arrival, a maritime union strike delayed unloading, and the ship and cargo received no immediate attention. After unloading, approximately 600 bags were found to be totally lost due to fresh water damage, some of which predated arrival, and additional mildew and rot occurred during detention at the dock. The court found that the respondent was negligent in failing to properly ventilate the cargo during the voyage, which was necessary given the ship's ventilation limitations and the nature of the cargo.

Legal Issues Presented

  1. Whether the libellant proved the good condition of the cocoa bean cargo at the time of delivery to the ship.
  2. Whether the respondent's failure to ventilate the cargo during the voyage constituted negligence causing damage.
  3. Whether the maritime strike and other alleged perils of the sea excused the damage to the cargo.
  4. Whether the respondent met its burden to show that the strike disabled it from caring for the cargo and thus constituted a cause of damage.

Arguments of the Parties

Respondent's Arguments

  • The libellant was under an obligation to prove the good condition of the cargo at the time of delivery to the ship.
  • The damage was caused by sweat, which the respondent characterized as a peril of the sea.
  • The maritime union strike prevented unloading and care of the cargo, excusing any damage that occurred after arrival.
  • The rough weather on the day before arrival caused ship's sweat that damaged the cargo.

Libellant's Arguments

  • The cocoa beans were delivered to the ship in good condition, supported by testimony and the pattern of damage limited to top tiers.
  • The respondent was negligent in failing to ventilate the cargo continuously during the voyage, despite the ship’s barely adequate ventilators.
  • The strike’s impact on care of the cargo was not proven; the respondent failed to show that the strike disabled it from providing required care.
  • The damage caused by sweat was avoidable and resulted from the respondent’s failure to take reasonable precautions.

Table of Precedents Cited

Precedent Rule or Principle Cited For Application by the Court
The Neil Maersk, 2 Cir., 91 F.2d 932 Obligation to prove good condition of cargo at delivery to ship. Court noted respondent raised this but found it was not argued at trial and evidence supported good condition at delivery.
Warner Barnes Co. v. Kokosai Kisen Kabushiki Kaisha, 2 Cir., 102 F.2d 450 Burden of proof on condition of cargo at loading. Used to support finding that cargo was dry and in good condition when loaded.
46 U.S.C.A. § 1304; Schnell v. The Vallescura, 293 U.S. 296, 55 S.Ct. 194, 79 L.Ed 373 Carrier’s burden to prove excuse for failure to care for cargo, such as strikes. Court held respondent failed to prove strike disabled it from caring for cargo and thus did not excuse damage.
Wessels v. The Asturias, 2 Cir., 126 F.2d 999, 1000 “Sweat” is a peril of the sea only if all reasonable precautions are taken to avoid it. Court found respondent failed to take reasonable precautions (ventilation) and thus remained liable for sweat damage.
Philippine Sugar Centrals Agency v. Kokusai Kisen Kabushiki Kaisha, 2 Cir., 106 F.2d 32, 36 Failure to ventilate cargo is failure to care for it, not a matter of ship’s management. Court applied this to hold respondent liable for damage caused by failure to ventilate cargo.

Court's Reasoning and Analysis

The court found that the cocoa beans were delivered in good condition, supported by testimony and the pattern of damage limited to top tiers. The respondent argued that sweat damage was a peril of the sea, but the court emphasized that sweat is only excused if all reasonable precautions, such as proper ventilation, are taken. The court noted that the ship’s ventilators were barely adequate and that the respondent failed to ventilate the cargo properly throughout the voyage. The third mate was incompetent and neglected duties, and the ventilators were improperly trimmed, preventing adequate air circulation. The rough weather on the final day was insufficient to explain the damage, especially given the respondent’s failure to ventilate during the preceding fair weather days. Regarding the maritime strike, the court found the respondent failed to prove that the strike disabled it from caring for the cargo or that the strike caused additional damage. Thus, the court concluded that the respondent's negligence in failing to ventilate the cargo was the efficient cause of the damage.

Holding and Implications

The libellant is entitled to judgment for its entire claim.

The court’s decision directly holds the respondent liable for cargo damage caused by negligent failure to ventilate the cocoa beans during the voyage. The respondent’s defenses based on sweat as a peril of the sea and the maritime strike were rejected due to insufficient proof. No new legal precedent was established; the ruling applies established principles regarding carrier liability for cargo care and exceptions for perils of the sea.

GENERAL FOODS CORP. et al. v. UNITED STATES et al.

CLANCY, District Judge.

Findings of Fact.

1. Libellant, General Foods Corporation, is the purchaser and owner of bills of lading for a quantity of cocoa beans delivered in good order and condition at Port Bouet aboard the United States owned S.S. Thomas Haywood, in September, 1946, for carriage to New York.

2. The libellant's cocoa beans which altogether exceeded 7,800 bags were put in No. 3 lower hold and the `tween deck compartments of holds Nos. 2, 3, 4 and 5. Before taking the cocoa aboard the ship had loaded lower holds Nos. 1, 2, 4 and 5 and No. 1 `tween decks as well with logs which were towed some distance through the water before being put aboard. The cocoa beans above the hatch coaming were laid on cocoa mats and cocoa mats lined the walls put there as the cargo was stowed. There was no dunnage. There were air channels or "breeze holes" in the stow made by the stevedores somewhere along the sides or in the corners as they stowed the beans. These should be beneath the coaming: They serve the cargo only when the hatch covers are removed.

3. The Thomas Haywood was a liberty ship and her large ventilators are set at the junctures of holds Nos. 1 and 2, 2 and 3 and 4 and 5, to accommodate both adjoining holds. Cargoes of cocoa beans had been carried in liberty ships before the shipment involved here. Some sweat damage was ordinarily incurred in these voyages. Most of it was said to have been curable on arrival.

4. The weather at Port Bouet, when the cocoa beans were put aboard, was humid but the mate insisted none were put aboard in rain. The Thomas Haywood enjoyed unusually fair weather on her voyage from Port Bouet which she left on September 24 to New York where she docked October 9th. Temperatures varied from 68 to 80 degrees and some days the variance narrowed to a few degrees. Her hatches were never opened. On the day before she reached New York she struck her only spell of foul weather. The thermometer on that day descended to 55°. The wind blew a small gale and carried enough spray to warrant the covering of the ventilators. They remained covered thereafter.

5. During the voyage the officers and the crew were aware of the probability that a strike of some maritime union or unions would be met upon the ship's arrival. That a strike of some kind was being waged was told them by the pilot taken on at Sandy Hook. Five hours elapsed before reaching the pier but neither ship nor cargo received any attention. Both crew and officers left the ship on the day of arrival. Some returned for their personal effects on the day after but did nothing aboard. On October 28 a new mate boarded the ship and on the 29th a new captain. Other than those items no evidence appears of what happened to or aboard the ship until November 4 when the stevedores began to unload. Neither is there evidence of what resources if any were available to respondent to care for the cargo or why any was unavailable.

6. During the voyage of The Thomas Haywood the third mate did nothing and paid no attention to his duties. He did not even make entries in the log other than to note the prevalence of fair weather. He was wholly incompetent. All of the entries describing the attempted ventilation of the cargo were made by the first mate who trimmed all ventilators alee during his watches. All the surveyors who were certified mates as well agreed that to procure circulation in the holds some should be trimmed to the wind.

7. When the cargo of cocoa beans was outturned November 9th and thereafter, about six hundred bags were found to be so damaged by fresh water as to be a total loss. The damage and certainly the wetting in some part antedated the ship's arrival in New York. Detention in the unventilated holds during the weeks at the dock produced more mildew and rotted bags but fresh water damage was incurred before arrival.

8. The damage resulted from the respondent's negligence in failing properly to ventilate the cargo of cocoa beans during the voyage to New York, a task that required continuous attention in a liberty ship where the ventilators are at best barely sufficient.

Conclusion of Law.

1. The libellant is entitled to judgment for its entire claim.

The first point made by the respondent is that the libellant was under an obligation to prove the good condition of the cargo at the time of its delivery to the ship. See The Neil Maersk, 2 Cir., 91 F.2d 932. There are several answers to this contention. The first is that it was never mentioned during the trial, throughout which respondent relied on sweat which was called a peril of the sea and a seamen's strike as excuses for the bad condition of a cargo that was apparently accepted as having been good when taken aboard. But the evidence fully sustains a finding that the cocoa beans were in good condition when delivered to the vessel. Warner Barnes Co. v. Kokosai Kisen Kabushiki Kaisha, 2 Cir., 102 F.2d 450. The mate testified that he was instructed by the ship's agent at Takoradi "to make sure it would be dry", referring to the cocoa beans cargo. No one asked the mate directly whether or not he made sure the cargo was loaded dry but he said he had watched the stow at Port Bouet. Furthermore, the damage done to the cocoa beans was found only in the top tiers in all the holds.

As to the evidence concerning the strike, nothing more was proved than that a strike of a Seamen's Union occurred. How long it lasted, why no resources were available to the respondent during it to care for the cargo, what conditions of weather were required to be borne, whether or not any care tender was on the vessel or on the dock, or what his duties were if one were present or even what if anything he was able to do does not appear. We can take judicial notice of no more than the respondent's inability to unload the cargo because of the maintenance of a picket line which was referred to as present on the day after the ship's arrival. It is respondent's burden to prove that the strike disabled it from giving the cargo the required attention and thereby constituted a cause of damage. 46 U.S.C.A. § 1304; Schnell v. The Vallescura, 293 U.S. 296, 55 S.Ct. 194, 79 L.Ed 373.

All the surveyors agreed that the cargo suffered sweat damage before its arrival at New York. Respondent excused this damage as caused by a peril of the sea. "Sweat * * * can be regarded as a peril of the sea only when all available and reasonable precautions are taken to avoid it. * * * The carrier remains liable if it fails to provide, without excuse, sufficient ventilation, or if its improper stowage contributes to the sweat, or if it is otherwise negligent in handling the cargo." Wessels v. The Asturias, 2 Cir., 126 F.2d 999, 1000. The Thomas Haywood on its trip from Port Bouet to New York was favored by exceptionally good weather. There were occasional showers and some overcast but generally fair, calm weather was enjoyed throughout eighteen of the nineteen days of the voyage. On none of these days were the hatches raised to ventilate the cargo of cocoa beans. Granted that on some the temperature variances were not pronounced, this cargo required ventilation at all times. The testimony is that the "breeze holes" established in the formation of the stow served their purpose only when the hatch covers were lifted in fair weather. In four of the five lower holds and in No. 1 `tween decks were carried logs which were towed to the vessel at a port in Africa and which were consequently wet when lifted into the holds. The large ventilating shafts on The Thomas Haywood are made to serve both of the adjoining holds between which they descend in the ship. The moisture from the log cargo could escape only through these ventilators. One of the surveyors, and we incline to agree with him, said that these logs, wet at least when loaded, would supply moisture that would be disseminated in the `tween decks as the lower hold air content sought escape through the ventilators. We believe sufficient pressure would be exercised by the outside air to cause at least some of the damp air from the lower holds to penetrate into the `tween decks escapes from the ventilator shafts. To what extent this is true appears to the Court a guess and we will go no further than to hold that the presence of the log cargo imposed the duty of the utmost care to ventilate the holds on this ship whose ventilators respondent's surveyor said were "barely adequate" for the holds even when the hatches were opened in fine weather. The comparatively light damage in lower No. 3 testified to by the surveyors, however much of it may be attributable to the steadiness of the ocean temperature, to an extent confirms this. As a matter of fact if we can believe the log, the ventilators all were always trimmed alee, a trim that the surveyors agreed prevented proper circulation in the holds. The only entries made about the use of the ventilators were made by the careful but not too experienced first mate. What use of them, if any, was made or what care was devoted to their proper operation during the watches of the other mates no one knows. The third mate was denounced as wholly unfit and one who paid no attention whatever to his duties.

On the day before the ship reached New York she met with the only rough weather of the voyage. It grew colder, the wind blew a small gale and the sea was somewhat rough. The ventilators were covered to avoid the entry of spray. It appears to be the respondent's theory that these twenty-four hours of the voyage explain everything because of the high probability that ship's sweat then wet the cargo. On the little evidence in this case which was nothing more than the log entries of air temperature this seems to the Court largely an assumption. And that assumption accepts as a fact a great quantity of moisture in the air in the hold on that day and a high temperature there as well. If these two circumstances existed as a fact their being was directly due to the lack of ventilation during the voyage in the face of the reasonably expectable cooler weather that was finally encountered and its reasonably expectable disastrous effects. The failure to ventilate throughout the fair weather days that preceded this one day of rough weather cannot be ignored.

It appears therefore that the respondent's failure to ventilate the cargo during the trip from Africa to New York was the efficient cause of its damaged condition when outturned. Failure to ventilate is a failure to care for the cargo and not a matter of the ship's management. Philippine Sugar Centrals Agency v. Kokusai Kisen Kabushiki Kaisha, 2 Cir., 106 F.2d 32, at page 36. It was respondent's duty to show any increase in the damage suffered during the voyage that ensued in port and was attributable to the strike as an additional cause. This it has failed to do.

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GENERAL FOODS CORP. v. UNITED STATES, (S.D.N.Y. 1952)
(Jan 3, 1952)