Document: 349 U.S. 122 75 S.Ct. 649 99 L.Ed. 933 BOSTON METALS COMPANY, Formerly Named Boston Iron and Metal Company, As Owner of the Canadian Destroyer THE ST. FRANCIS, Petitioner,v.THE S/S WINDING GULF Massachusetts Trustees Eastern Gas FuelAssociates. No. 70. Argued March 1, 1955. Decided May 16, Mr. John H. Skeen, Jr., Baltimore, Md., for petitioner. Charles S. Bolster, Boston, Mass., respondent. Justice BLACK delivered opinion Court. 1 The petitioner, Metals brought this suit in admiralty against steam vessel Winding Gulf her owners to recover loss its obsolete destroyer which sank after colliding with Gulf. collision occurred while was being towed by tug Peter Moran; itself without power or crew. filed a cross-libel charging that due unseaworthiness destroyer. After hearings, District Court found negligent navigation Gulf, inadequate lights on absence crew keep brightly burning. This fault master Moran. master's negligence, however, imputed petitioner because provisions towage contract would become servants towing company not be responsible their towage. On basis, entered decree favor cross-libellant resulted dividing damages equally between respondents. 72 F.Supp. 50. Appeals affirmed same grounds. 209 F.2d 410. We granted certiorari. 348 811, 26. 2 In Bisso v. Inland Waterways Corp., 85, 629, we held invalid designed shift responsibility towboat's negligence from towboat innocent tow. That holding controls case. For whatever said, here as case, persons who conducted these operations were fact acting employees company, owner Under circumstances it error hold liable company's employees. Cf. Adriatic, 30 T.L.R. 699. 3 Reversed. 4 HARLAN took no part consideration decision 5 FRANKFURTER, concurring. 6 Release-from-liability clauses generally, specifically regard contracts, are applied alter familiar rules visiting liability upon tortfeasor consequences his unless clarity language used expresses such understanding contracting parties. Even when clause undeniably alters normal relationship tow some aspects is construed impose every consequence tug's decisively requires result. See Devonshire St. Winifred, (1913) P. 13; Richmond, 19 29 (P.D.). 7 issue before us case bare question whether has contracted away right caused tug. It addition undertaken directly all third parties injured 8 These relevant governing here: 9 '2. Tug services will supplied condition * craft any character tugs owned employed Company done at sole risk owners, charterers operators thereof, Master said identified only undertakes provide motive power. 10 '3. acts defaults Master, tugs, agents else whosoever, nor damages, injuries, losses delays whatsoever cause arising may occur either craft, property board other ship kind fixed movable shall harmless indemnified Hirer delays, claims respect thereof. 11 '4. Such exemption apply regardless assists own way, irrespective employee time command 12 '5. foregoing conditions injuries requiring person movable, attendance provided however damage personal life members crews have been contributed tugs.' 13 Is significance permit party, tug, proceed virtue clause? 14 refused allow party invoke indemnity clause, but apparently made faults attributable tow, imposing vicarious owner.1 reasoned since had agreed indemnify parties, could 'The libel take enterprise pay might incurred, Judge Learned Hand Kookaburra, Cir., 69 71, 73, 'the admiralty, whose procedure especially plastic, can skip by-ways head direct goal." 410, 414. 15 contractual quoted, party. Sturgis Boyer, 24 How. 110, 16 591; Eugene F. Moran, 212 466, 473, 339, 53 600. hand, did agree involved. But promise running indemnitee, ordinarily benefit Nor does an agreement another if conveys anything more than term 'indemnify,' suggest intended true states 'become craft' 'not responsible' acts. If relationship, fact, based language.2 history pilotage release-from-negligence suggests terminology merely attempt phrase disclaimer applicable service terms successfully invoked Sun Oil Co. Dalzell Towing Co., 287 291, 135, 77 311. Like attempts describe desired legal through use inapposite concepts, momentum symbolic concept induce beyond those nature problem justifies.3 Placed commercial judicial context, phraseology sufficiently indicate undertake parties.4 There good reasons why should undertaken, among them difficult obtain full assistance establishing nonliability avoiding unfairly larger recovery subsequently 17 remaining then instituted assert defense, affirmatively claim quotation cited Kookaburra point there court, one contribution. situation circuity action avoided danger injury defense over absent exists, different turn would, liable, entitled libellant. 18 DOUGLAS, I join do think know enough about economics organization business1 change established rule Steamer Syracuse, Wall. 167, 171, 20 382, Wash Gray, 277 66, 48 459, 460, 787, negligence. 311, departure rule. assisted under manned captain enforced contract, vessel, 'when puts disposal direction performance latter, so engaged deemed latter former.' Id., 295, 136. 21 common carrier carrier. assisting Here dealing dead tows, where alone control, tows crews. 22 situation, tugboats carriers2 they themselves out, State Washington ex rel. Stimson Lumber Kuykendall, 275 207, 41, 241, Cornell Steamboat United States, 321 634, 64 768, 88 978, carriers. 23 So far know, present cases much carriers Common 'by form secure negligence.' supra, 294, New York Cent. R. Lockwood, 357, 927; Liverpool & Great Western Steam Phenix Ins. 129 397, 469, 32 788. germane tugboat They well stated Coxe, dissenting Oceanica, 170 893, 896: 25 'It ought public policy fault. To begets recklessness, carelessness neglect. prohibiting apply, though not, perhaps, extent, contract. both design prevent absolute control another's extorting neglect reasonable precautions preserve it.' 26 carrier, Stevens White City, 285 195, 52 347, 76 effectively market complete cargo Coxe seem, therefore, 27 Syracuse outmoded changed. industry less able carry risks customers. fairer long run let operator free himself transfer shippers employ services. very statement raises large questions records throw light. offered fashion new rule.3 Accordingly, continue enforce roots deep experience, until Congress adopts one. 28 BURTON, whom REED joins, dissenting. Recognizing validity (towing) (towed) owners,' give effect. me, sufficient make thus servants. affirm judgment Appeals. Respondent contends personally entering into arrangement taking steps insure properly performed. phrases tend support view, whole consistent course reasoning Judge. view taken Appeals, justified adopting it. Adriatic Wellington, 699 (P.D.), sued relying similar declaring liable. English doctrine regarding contracts our construction arise. Guy Donald, 203 399, 406, 63, 64, 51 245: 'As matter considered debated artificial led technical definition certain name, deduce relation grounds name applied.' Note involved most respects, expressly Aspects Harbor shown Fleet, Fortune (May, 1943); Docking Leviathans World's Busiest Harbor, Travel (June, 1940); Friendly Ushers Page 128-Continued. Christian Science Monitor Magazine Section, July 14, 1937, p. 8; Tugging Big Time, Saturday Evening Post, Mar. 24, 1945, 26; Admiral Moran's Private Navy, Collier's, Jan. 15, 1949, 9; Earnings Tugboats Barges 61 Monthly Labor Review 1192. historical account see Bowen, A Hundred Years Towage (1933). carriers, subject pervasive regulation Interstate Commerce Commission Part III Act, 54 Stat. 898, 929, 49 U.S.C. §§ 901, 905 et seq., U.S.C.A. 905, held. activities likewise Act. See, example, 906(e), 907(i), 913—917, 913—917. Available statistics show breakdown, port port, how many 'captive' servicing company. picture competitive monopolistic prevailing various ports. need economic brief enlighten us, reformulate

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