American Union Transport Co. v. Aguadilla Terminal, Inc., 5774.

• Decision Date: 10 May 1962
• Docket Number: No. 5774.,5774.
• Citation: 302 F.2d 394
• Parties: AMERICAN UNION TRANSPORT CO., Inc. (of New York), Respondent and Claimant, Appellant, v. AGUADILLA TERMINAL, INC., et al., Libelants, Appellees.
• Court: U.S. Court of Appeals — First Circuit

302 F.2d 394 (1962)

AMERICAN UNION TRANSPORT CO., Inc. (of New York), Respondent and Claimant, Appellant, v. AGUADILLA TERMINAL, INC., et al., Libelants, Appellees.

No. 5774.

United States Court of Appeals First Circuit.

May 10, 1962.

Vicente M. Ydrach, San Juan, P. R., with whom Hartzell, Fernandez & Novas, San Juan, P. R., was on brief, for appellant.

Henry N. Longley, New York City, with whom John W. R. Zisgen, New York City, Juan E. Geigel, San Juan, P. R., Bigham, Englar, Jones & Houston, New York City, and Geigel & Silva, San Juan, P. R., were on brief, for Insurance Company of North America, appellee.

Before WOODBURY, Chief Judge, and ALDRICH and GANEY,^* Circuit Judges.

WOODBURY, Chief Judge.

On June 1, 1958, Raymond Construction Company of Puerto Rico completed construction for Aguadilla Terminal, Inc., of a facility for loading sugar in bulk into ocean-going vessels. The facility consisted of structures on shore for receiving bulk sugar and a trestle, mounted on steel legs embedded in concrete caissons sunk into the ocean floor and extending 660 feet out into an open roadstead near the port of Aguadilla, supporting a conveyor belt and the machinery for moving it for carrying bulk sugar from the shore to vessels moored at the outer end of the trestle. The entire installation cost nearly 2 million dollars and was insured against physical loss or damage by a policy of insurance containing a $1,000 deductible clause written by Insurance Company of North America.

On July 14, 1958, six weeks after the facility went into operation, the captain of the Liberty Ship "Transunion" owned by American Union Transport Co., without waiting for a pilot who he was told was on the way, undertook to dock his ship at the outer end of the trestle for loading and in doing so extensively damaged the structure.

Aguadilla Terminal, Inc., at once engaged Raymond Construction Company, which had the necessary equipment immediately available and whose personnel were thoroughly familiar with the structure having just built it, to repair the damage on a cost plus basis. Also Aguadilla and its insurer, North American, at once filed a libel in rem against the "Transunion" and in personam against its owner to recover for damage.

Raymond repaired the damage and Aguadilla paid it $262,715.75 for the job. Aguadilla filed proof of claim with its insurer and North American, after deducting the salvage value of damaged material retained by Aguadilla for its own use plus $1,000, paid Aguadilla $259,186.46 in reimbursement.

After full trial the court below found that the facility had been properly designed, built and constructed for its purpose, that it was adequately protected against damage from the docking and undocking of ships by a fendering system consisting of two breasting dolphins, that the collision was not caused by any fault in the construction or design of the facility but was caused solely by the negligent operation of the "Transunion" and that the reasonable, proper and necessary net cost to Aguadilla of repairing the installation and restoring it to the strength and condition it was in before the collision was $260,186.46. Wherefore it entered a decree for the libelant Insurance Company of North America for $259,186.46, for the libelant Aguadilla Terminal, Inc., for $1,000, plus interest on both sums of 6% from the date of the decree, with costs to the...