Reagan Tool Co. v. HH BUTTS DREDGING & CONSTRUCTION CO.
| Decision Date | 09 April 1962 |
| Docket Number | No. 5114,5116,5118.,5114 |
| Citation | 204 F. Supp. 606 |
| Court | U.S. District Court — Eastern District of Louisiana |
| Parties | REAGAN TOOL COMPANY, Inc., Libelant, v. H. H. BUTTS DREDGING & CONSTRUCTION COMPANY, Inc., in personam, and the DREDGE RODDY O, its tackle, furniture, appurtenances, etc., in rem, Respondents. CENAC TOWING COMPANY, Inc., Libelant, v. H. H. BUTTS DREDGING & CONSTRUCTION COMPANY, Inc., in personam, and the Dredge Roddy O, its tackle, furniture, appurtenances, etc., in rem, Respondents. M. J. FRANICEVICH TOWING COMPANY, Inc., Libelant, v. DREDGE J. E. JUMONVILLE, her tackle, appurtenances, furniture, etc., and H. H. Butts Dredging & Construction Company, Inc., Respondents. |
Phelps, Dunbar, Marks, Claverie & Sims, W. Eugene Davis, George W. Healy, III, and Peter G. Burke, New Orleans, La., for Reagan Tool Co., Inc., Cenac Towing Co., Inc. and Baldwin-Lima-Hamilton Corp.
A. D. Freeman, Jr., New Orleans, La., for M. J. Franicevich Towing Co., Inc.
M. J. Duran, New Orleans, La., for H. H. Butts Dredging & Construction Company, Inc.
Robert D. Edwards, Gretna, La., Thomas B. Wheeler, New Orleans, La., for J. E. Jumonville.
Dufour, St. Paul, Levy & Marx, William M. Lucas, Jr., New Orleans, La., for L. & L. Oil Co., Inc. and Lee & Leon Oil Co., Inc.
These consolidated cases are libels filed in personam against H. H. Butts Dredging & Construction Company, Inc. and in rem against two dredges, the RODDY O and the J. E. JUMONVILLE. Intervening libels were also filed against the Butts Company and the dredges. One intervenor, however, seeks only a remedy in rem. The suits and interventions were based on unpaid claims for repairs, towing services, supplies and necessaries furnished to the dredges.
The owner filed his claim and excepted to the libels herein against the dredges which are under seizure, averring that he had no knowledge of nor did he authorize the furnishing of the described services for which a maritime lien is sought. At the trial he contended that the dredges were on bare boat charter to the Butts Company with a specific agreement that no encumbrance was to be placed on the dredges by the charter or lessee without specific approval of the owner.
Prior to December, 1960, the owner by oral agreement leased the dredges to J. E. Jumonville Contractor, Inc., of which he was the controlling shareholder. No restrictions were placed by him on the corporation's management of the vessels. On December 15, 1960, J. E. Jumonville Contractor, Inc. entered into a written contract with H. H. Butts Dredging & Construction Company, Inc., whereby the Butts Company was to procure rental work for the two dredges which were to be fully equipped, maintained and operated by the Jumonville Corporation. The contract, by its terms, expired on July 1 but was continued in effect by mutual consent until August 31, 1961. Under the contract the Jumonville Corporation reserved the right to reject any work obtained for it by the Butts Company.
There was no provision prohibiting the incurring of liens by Butts for necessary supplies. The evidence shows that the Butts Company was authorized to procure towage services, fuel oil and other necessaries during the term of contract and if it incurred and paid any expenses they were reimbursed by the Jumonville Corporation. Signs were placed on the two dredges immediately after the written contract was entered into, stating that they were "Leased to H. H. Butts Dredging & Construction Company, Inc." On September 1, 1961, an oral agreement was entered into between the Jumonville Corporation and the Butts Company, the terms of which are somewhat confused and contradictory as they are described by the witnesses, Jumonville and Butts. Butts stated that his understanding of the oral agreement was that his company had purchased the two dredges and was operating them as owner though the formal written documents of sale and transfer had not yet been executed. He said that he understood his corporation was to place no encumbrance or mortgage on the dredges but that it was authorized under the oral agreement to secure towing services, order supplies and procure repairs without specific approval from the owner. Jumonville testified that the oral agreement was a bare boat charter and that he specifically forbade the Butts Company to place any encumbrance on the dredges. In Butts' discovery deposition (p. 30) taken on February 23, 1962, which was jointly offered in evidence by all of the parties, he testified in regard to the prohibition against encumbrance on and after September 1, 1961, as follows:
At the trial he contradicted this statement saying he was forbidden to impose maritime liens on the dredges, though not prohibited from securing services which gave rise to liens.
The owner has failed to establish clearly by the evidence the terms of a so-called oral bare boat charter, and particularly that there was a prohibition against incurring of maritime liens.
The value and accuracy of the amounts claimed for services of the several libelants are not disputed by respondents or the owner of the dredges.
Cenac Towing Company, Inc. provided towage services and fuel oil to the dredge RODDY O from May, 1961, to August 31, 1961, for $2,585.72, and from September 1, 1961 to November 4, 1961, for $3,468.01, totaling $6,053.73.
Cenac also furnished towage services to the dredge J. E. JUMONVILLE for August, 1961, for $697.50, and November, 1961, for $300.00, totaling $997.50.
Reagan Tool Company, Inc. during the months of October and November, 1961, performed necessary repairs to the dredge RODDY O, occasioned by the dropping of the boom, in the amount of $11,269.36.
L. & L. Oil Company, Inc. sold and delivered diesel fuel to the dredge J. E. JUMONVILLE on October 23, 1961 for the sum of $2,931.22.
Lee & Leon Oil Company, Inc. sold and delivered fuel and petroleum products to the dredge J. E. JUMONVILLE on October 23, 1961 for $833.16, and on September 6, 1961 for $225.07, totaling $1,058.23.
M. J. Franicevich Towing Company, Inc. furnished towage services to the dredge J. E. JUMONVILLE in July, 1961, for $1,200.00, less paid on account $500.00, balance $700.00, and in November, 1961, for $1,485.00, totaling $2,185.00.
Baldwin-Lima-Hamilton Corporation furnished a ring gear and accessories for the dredge J. E. JUMONVILLE in response to a letter sent to it on June 27, 1961 by Mr. Butts with the knowledge of Mr. Jumonville. In the letter...
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