Reading Company v. Dredge Delaware Valley, 71-1853.
Decision Date | 25 October 1972 |
Docket Number | No. 71-1853.,71-1853. |
Citation | 468 F.2d 1161 |
Parties | READING COMPANY, Appellant, v. DREDGE DELAWARE VALLEY, her engines, boilers, tackle, machinery, etc., and all persons having any interest therein, and American Dredging Company. AMERICAN DREDGING COMPANY, Cross-Libelant, v. READING COMPANY, Cross-Respondent. |
Court | U.S. Court of Appeals — Third Circuit |
Harrison G. Kildare, Rawle & Henderson, Philadelphia, Pa., for appellant.
Raymond T. Letulle, Krusen, Evans & Byrne, Philadelphia, Pa., for appellees.
Before BIGGS, ADAMS and JAMES ROSEN, Circuit Judges.
Reading Company appeals from a non-jury verdict in favor of defendant American Dredging Company. The trial, by agreement of the parties and consent of the trial judge, was limited to issues of liability. By stipulation of counsel final judgment was entered on American's counterclaim against Reading in the amount of $12,633.39 plus taxable costs.
Reading filed a libel in rem and in personam against Dredge Delaware Valley and American for an alleged negligent breach of contract. Reading owned and controlled Pier 14 Port Richmond, Philadelphia, Pennsylvania located in the navigable waters on the west bank of the Delaware River. Dredge Delaware Valley is a dragline harbor dredge owned and operated by American. Reading alleges that on May 9, 1963 Dredge Delaware Valley operated by employees of American disregarded specifications and limits for certain dredging operations for deepening the river bottom in the vicinity of the pier and negligently caused the down river portion of the outer face of the structure where the dredge was working to fall into the river. The initial dredging, which commenced on or about April 6, 1963 was performed in accordance with oral instructions and pursuant to a general contract covering locations unrelated to Pier 14.1 The chart for this dredging operation was given to the dredge captain by Alex Brunner, Reading's dredging inspector. American claimed that Brunner had apparent authority to direct dredging operations and to change dredging limits.
On June 4, 1963, over a month after collapse of the pier, Reading delivered a written change order to American specifying the work done at Pier 14.2 The change order was conditionally accepted by American.3
The central issue at trial was whether Alex Brunner had apparent authority to change dredging limits established by Reading's engineering department.
Judge Luongo found that 4 He also concluded that "Alex Brunner had apparent authority to change the dredging limits established by Reading's Engineering Department;" and that American was under "no duty to inquire further into the authority of Alex Brunner to change dredging limits."5
Continental-Wirt Electron. Corp. v. Sprague Electric Co., 329 F.Supp. 959, 963 (E.D.Pa.1971) discusses "authority" in this fashion:
We agree with the trial court's application of the concept of apparent authority to the evidence in this case:
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