Manetas v. International Petroleum Carriers, Inc.

• Decision Date: 31 August 1976
• Docket Number: No. 75-2085,75-2085
• Citation: 541 F.2d 408
• Parties: George MANETAS and Damianos Makris, Appellants, v. INTERNATIONAL PETROLEUM CARRIERS, INC., and the M/T CARIB SUN, her engines, tackle, furniture and appurtenances International Petroleum Carriers, Inc., Claimant.
• Court: U.S. Court of Appeals — Third Circuit

Page 408

541 F.2d 408

George MANETAS and Damianos Makris, Appellants, v. INTERNATIONAL PETROLEUM CARRIERS, INC., and the M/T CARIB SUN, her engines, tackle, furniture and appurtenances International Petroleum Carriers, Inc., Claimant.

No. 75-2085.

United States Court of Appeals Third Circuit.

Argued March 26, 1976.

Decided Aug. 31, 1976.

Baker, Garber, Duffy & Baker, P. C., Hoboken, N. J. (Herbert Lebovici, New York City, of counsel), for appellants.

McCarter & English, Newark, N. J. (Healy & Baillie, Thomas L. Rohrer, New York City, of counsel), for appellees.

Before SEITZ, Chief Judge, and KALODNER and ROSENN, Circuit Judges.

OPINION OF THE COURT

KALODNER, Circuit Judge.

Plaintiffs, George Manetas and Damianos Makris, Greek seamen employed aboard the "Carib Sun," a cargo vessel sailing under the Liberian Flag and owned by defendant, International Petroleum Carriers, Inc., brought this action to recover approximately 9 months' wages, on the ground that they were employed for a one-year term and were wrongfully discharged after three months of employment. The discharge occurred after the ship's main engine sustained damages during a storm on its transatlantic crossing. Plaintiffs' complaint alleged that Section 30 of the Liberian Maritime Law, which expressly incorporates "the non-statutory general Maritime Law of the United States," ¹ permits recovery for premature discharge of a seaman in violation of a contract for an express period of employment. The complaint also sought recovery of "overtime" wages earned during plaintiffs' employment which allegedly went unpaid, and damages for non-payment of their claimed wages pursuant to 46 U.S.C.A. §§ 596 and 597. ²

Cross-motions for summary judgment were filed by the parties. The defendants in their cross-motion contended that (1) the damages sustained by the Carib Sun amounted to a "loss" or "wreck" of the vessel, and pursuant to 46 U.S.C.A. § 593, ³ discharge of plaintiffs was justified; and (2) plaintiffs' claims for "overtime" wages were not supported by any proof. The district court granted summary judgment in favor of the defendants and against the plaintiffs on the grounds that (1) notwithstanding § 30 of the Liberian Code, "(t)he Carib Sun had been so damaged by the perils of the sea that it was incapable of further voyaging" and "(i)t was . . . a wreck" within 46 U.S.C.A. § 593, which entitles plaintiffs to wages " 'for the time of service prior to such termination, but not for any further period;' " and (2) the claims for "overtime" wages were "unfounded" and "inconsistent with the discernable facts."

We agree with the district court's holding concerning plaintiffs' claim for wrongful discharge. With respect to plaintiffs' "overtime" claims, however, we believe they presented a genuine issue as to a material fact, and that being so, the district court was precluded from entering summary judgment against the plaintiffs as to these claims.

Discussion of our stated holdings must be prefaced by the following summarization of the facts and proceedings below:

Liberian Shipping Articles, opened aboard the Carib Sun at Piraeus, Greece on January 26, 1973, provided, inter alia, for the Carib Sun to sail from "Piraeus, Greece to World Wide Trading and such other ports and places in any part of the world as the Master may direct, for a term (of) (not exceeding) twelve calendar months . . ."

On February 28, 1973, and March 2, 1973, plaintiffs Manetas and Makris, respectively, entered into individual employment agreements Manetas as Second Officer at a wage of $700 per month and Makris as Boatswain at $500 per month. The contracts signed by plaintiffs did not specify a term of service; however, the Shipping Articles did specify that the "agreement between the Master and Seaman is for period of one calendar year."

On March 18, 1973, the Carib Sun sailed from Piraeus, loaded a cargo of gasoline in Turkey, and on March 25, 1973, set sail for the United States.

On or about April 16, 1973, the vessel encountered a heavy storm causing damage to the main engine crossheads, bearings and cranks, the effect of which was to permit sea water to enter the lube oil tank and contaminate the vessel's oil system. On April 20, 1973, the vessel arrived at Linden, New Jersey, under her own power and discharged her cargo.

A marine surveyor inspected the ship and confirmed that the engine damage was so extensive that it had to be repaired before the vessel could continue its voyage.

The ship was then towed to a shipyard in Hoboken, New Jersey, and bids for the ship's repair were sought. Of seven bids solicited, three were returned, estimating costs of repair in excess of $500,000 and time for repair at a minimum of eighty days.

After the extent of the damages became known, the members of the crew were discharged several at a time in May, 1973. Manetas and Makris were discharged on May 21, 1973 and were offered airline tickets to Greece.

The plaintiffs' independent claims for "overtime" wages were detailed in their depositions as follows:

Manetas claimed that after the ship had reached Hoboken, one mate was discharged and the duty fell to him and another to stand watch every second night rather than every third night. He alleged that he signed off the ship May 21, 1973, and that until that date he had stood two extra twelve-hour watches which should have been compensated at an overtime rate of $1.50 per hour; he claimed a total of $36.00 was due.

Makris claimed he performed duties outside the scope of his responsibilities as boatswain during the course of his 8-hour shift, viz., cleaning the ship's forepeak and tanks and work in the ship's pump room. He calculated that he performed these "special jobs" during 38 hours of his daily work schedules and that he was entitled to an "over-time" rate of $1.20 per hour as to these hours.

Plaintiffs filed the instant complaint on May 23, 1973.

On July 5, 1973, the vessel was sold to North East Petroleum, Inc., the original charterer; repairs then undertaken consumed three months.

On August 13, 1973, plaintiffs filed a motion for partial summary judgment on the issue of liability which, after a hearing, was denied on the basis of insufficient evidence.

On December 16, 1974, a Pre-Trial Order was filed by both parties. The Order provided that "(e)ach side is granted leave to file respective motions for summary judgment within 45 days from the date hereof." In an accompanying memorandum defendants contended that the damages sustained by the Carib Sun's "engines in the Atlantic crossing amounted to a 'loss' or 'wreck' of the Vessel and justified the discharge of the crew."

On January 20, 1975, plaintiffs again moved for summary judgment.

On June 13, 1975, defendants filed an Affidavit in Opposition to Second Motion for Summary Judgment requesting the Court to treat their answering papers as a cross-motion for the same relief. Affidavits of Eugene F. Blondell, Jr. and Peter Siebel, Jr., who were, respectively, an employee of the ship's agent in New York, and the marine surveyor engaged by the defendants to survey the damages, were submitted. The affidavits detailed the extensive damages sustained by the Carib Sun in its Atlantic crossing.

In opposing plaintiffs' "overtime" wage claims, defendants relied on the deposed testimony of the plaintiffs and the ship's Master. The Master of the ship had testified that while the ship was moored in Hoboken, the mates performed no work during the normal eight-hour-work day; Manetas stood watch on board "for the security of the vessel;" and he was on board the ship in May only seven days of 21. A wage statement for May, which was made a part of the record, showed that Manetas was paid eight hours for 21 days in May and for seven hours overtime. In addition, the Master testified that Manetas never told him that he was entitled to any additional overtime. Makris testified that he had been told by the ship's Chief Officer that there was "no money for extra work on this vessel;" and that he signed his pay voucher dated May 1, 1973, which was made part of the record. The Master testified that Makris had never complained to him that more pay was due.

The district court filed its Letter Opinion and Order on August 6, 1975, denying plaintiffs' motion for summary judgment and granting defendants' motion for summary judgment for the reasons heretofore mentioned.

The court made the following findings with respect to the "overtime" claims:

"In his deposition plaintiff Makris, who served on the crew in the capacity of boatswain, concedes that the thirty-eight hours which he claims are due as overtime are not in fact hours in excess of eight on a given day for which he was not paid; rather, he claims he performed duties outside his regular responsibilities as boatswain during his regular eight hour day for which he demands additional wages, apparently an hour of overtime for each such hour of work. That certainly is not overtime wages. If Makris was concerned that the work was not his responsibility, he should have presented the grievance to the Master for resolution; but because he undertook to do the work, the only wage governing was that in the Articles. Because the "extra work" did not involve extra hours for which he was not compensated, the Court must consider the claim unfounded.

". . . Even if Manetas was ordered to remain aboard the vessel, with which the Master specifically disagreed, he was only fulfilling his duty. Manetas was not performing any other obligation while the vessel was moored. He in fact was aboard the vessel in May only seven days of the twenty-one (See Filias depo. filed Oct. 15, 1974, p. 42), but was paid eight hours each day. If Manetas had been required to stand watch every second night, he would have stood at least three additional watches; thus his claim is inconsistent with the discernible facts. The wage statement for May shows that Manetas was paid eight...