Opinion · Supreme Court of the United States
Sun Oil Co. v. Dalzell Towing Co.
287 U.S. 291
- Type
- Opinion
- Court
- Supreme Court of the United States
- Jurisdiction
- Federal
- Date
- 1932-12-05
- Topic
- general
Mr. Justice Butler delivered the opinion of the Court. This is a suit in admiralty brought by petitioner in the southern district of New York against respondent and three steam tugs, Dalzellite, W. F. Dalzell, and Fred B.
Citator
UpLaw has not yet analyzed Sun Oil Co. v. Dalzell Towing Co.. The absence of a flag is not a finding that it is good law.
- Cited by
- 128 opinions
Headnotes
- Admiralty & Maritime Law — Towage — Legal Status of Towage Company A company that contracts merely to furnish tugs to assist a vessel that is propelled by her own power and manned by her own officers and crew is neither a common carrier nor a bailee, and is not bound to serve the public; accordingly, it is not subject to the rule barring common carriers and others under a like duty to serve the public from contracting away liability for damage caused by their own negligence. 287 U.S. at 294
- Admiralty & Maritime Law — Towage — Exculpatory and Pilotage Clauses In a contract merely to furnish tugs to assist a vessel while she uses her own propelling power, the parties may validly stipulate that the tug captains, upon boarding the vessel, become the servants of her owners, so that the tug owners are not liable for damage resulting from the captains' orders in piloting the vessel. Such an agreement is enforceable where the tug company holds no exclusive privilege or monopoly over the services and the vessel owner is under no compulsion to accept its terms, the parties dealing at arm's length on equal footing. 287 U.S. at 294–295
- Admiralty & Maritime Law — Towage — Liability of Tug Owner A towage company's responsibility is not to be extended beyond the service it undertook to perform; where it contracted only to furnish tugs and did not furnish pilotage, it may invoke the rule that one who places his employee at the disposal and under the direction of another for the performance of service for the latter is not liable for that employee's acts while so engaged, the employee being deemed the servant of the latter. 287 U.S. at 295–296
SUN OIL CO.v. DALZELL TOWING CO.,287 U.S. 291(1932)
53 S.Ct. 135
SUN OIL CO.v. DALZELL TOWING CO., INC.
CERTIORARI TO THE CIRCUIT COURT OF APPEALS FOR THE SECOND CIRCUIT.
No. 38.
Argued November 16, 1932.
Decided December 5, 1932.
CERTIORARI,286 U.S. 538, to review a decree affirming a
decree dismissing a libel in a suit in admiralty. For opinion of
the District Court, see48 F.2d 598.
Respondent operates steam tugboats in and about New York harbor. May 14, 1925, in anticipation of the arrival of the Sabine Sun, Turnbull, petitioner's assistant marine superintendent, arranged by telephone to have respondent send tugs to take her through waters leading to Newark Bay and to a dock at Bergen Point, New Jersey. There was no writing or formal contract concerning the service to be rendered. The agreement pieced out from the oral order and acceptance and prior like transactions between the parties included as one of its terms the following clause: "When the captain of anyPage 293tug engaged in the services of towing a vessel which is making use of her own propelling power goes on board said vessel, it is understood and agreed that said tugboat captain becomes the servant of the owners in respect to the giving of orders to any of the tugs engaged in the towage service and in respect to the handling of such vessel, and neither the tugs nor their owners or agents shall be liable for any damage resulting therefrom."
On the next day the tanker anchored off Stapleton, Staten Island. The W.F. Dalzell came alongside and Bennett, her captain, went on board and acted as pilot. Using her own power and accompanied by the tug she got under way. The Dalzellite joined them off St. George and thence the three vessels went on through the Kill van Kull. Off Port Richmond the Fred B. Dalzell, Jr. became part of the flotilla. Fort, her captain, then went upon the tanker and acted as pilot, relieving Bennett. The tanker's captain, his third officer, a quartermaster and Turnbull were also there. She continued on her way using her own propelling power and assisted by the tugs. When rounding Bergen Point she went aground outside the channel, and it was then, as alleged in the libel, that she sustained the damages for which petitioner seeks to recover. She was backed off the obstruction, turned into the channel and without other mishap taken to the dock.
In view of petitioner's failure to appeal from the dismissal as to the tugs, we must assume that as to them petitioner failed to make out its case and that the stranding of the tanker was not in whole or in part due to any fault of theirs. It was not shown that respondent was to have or at any time did have control of the tanker or that it agreed or undertook to do more than to furnish tugs to assist her while using her own propelling power. Her master, officers and crew were at their stations, and her propelling power and steering apparatus were used to bring her to destination. And if the pilotage clause isPage 294valid, the tug captains while on board the tanker and respectively acting as her pilot were for that turn the servants of petitioner and the respondent may not be held responsible for any act or omission of theirs during the period of that service.
The validity of its applicable provision cannot reasonably be doubted. So far as concerns the service to be rendered under the agreement, respondent was not a common carrier or bailee or bound to serve or liable as such. Towage does not involve bailment, and the services covered by the contract were less than towage.Stevensv.The White City,285 U.S. 195,200. There is no foundation in this case for the application of the doctrine that common carriers and others under like duty to serve the public according to their capacity and the terms of their undertaking cannot by any form of agreement secure exemption from liability for loss or damage caused by their own negligence.Railroad Co. v.Lockwood, 17 Wall. 357.Liverpool G.W. Steam Co. v.Phenix Ins. Co.,129 U.S. 397,440. Respondent had no exclusive privilege or monopoly in respect of the services that petitioner desired to have performed for its tanker. And petitioner was under no compulsion to accept the terms of respondent's pilotage clause. There is nothing to suggest that the parties were not on equal footing or that they did not deal at arm's length. "There is no rule of public policy which denies effect to their expressed intention, but on the contrary, as the matter lies within the range of permissible agreement, the highest public policy is found in the enforcement of the contract which was actually made."Santa Fe, P. P. Ry. Co. v.Grant Bros. Co.,228 U.S. 177,188.
Respondent's responsibility is not to be extended beyond the service that it undertook to perform. It did not furnish pilotage. The provision that its tug captains while upon the assisted ship would be the servants of herPage 295owner is an application of the well-established rule that when one puts his employee at the disposal and under the direction of another for the performance of service for the latter, such employee while so engaged acts directly for and is to be deemed the employee of the latter and not of the former.Dentonv.Yazoo M.V.R. Co.,284 U.S. 305,308. It would be unconscionable for petitioner upon occurrence of a mishap to repudiate the agreement upon which it obtained the service.
The decree under consideration is not in conflict with the decisions of this court cited by petitioner,The SteamerSyracuse, 12 Wall. 167, andCompania de Navegacionv.Ins.Co.,277 U.S. 66. Neither involved an agreement similar to the provisions of the pilotage clause on which this case turns.Decree affirmed.