Document: 349 U.S. 85 75 S.Ct. 629 99 L.Ed. 911 William A. BISSO, Jr., Receiver, New Orleans Coal and Bisso Towboat Co., Petitioner,v.INLAND WATERWAYS CORPORATION. No. 50. Argued Feb. 28, 1955. Decided May 16, Mr. Eberhard P. Deutsch, Orleans, La., for petitioner. Ralph S. Spritzer, Washington, D.C., respondent. Justice BLACK delivered the opinion of Court. 1 The question presented is whether a towboat may validly contract against all liability its own negligent towage. Since there no controlling statute must be decided as part judicially created admiralty law. Federal courts have disagreed to or should judicial rule invalidating such contracts. Calling attention this uncertainty, District Court, sitting in admiralty, sustained contractual provision exempting respondent owner from negligence entered judgment accordingly. 114 F.Supp. 713. Court Appeals affirmed. 5 Cir., 211 F.2d 401. We granted certiorari settle question. 348 811, 24. 2 record including findings fact shows: Petitioner's oil barge while being towed up Mississippi River by respondent's steam Cairo collided with bridge pier sank. At time, had motive power, steering apparatus, officers crew, movements completely controlled Cairo. Negligent towage those operating caused collision. Consequently, respondent, Cairo, would been required pay petitioner damages unless relieved certain clauses contract. One provides that towing movement at 'sole risk' barge, second masters, crews employees 'in performance said service, become servants' Bisso. construed both these relieving held valid. 3 A release-from-liability clause was first considered 1871 Steamer Syracuse, 12 Wall. 167, 20 382. There Syracuse damaged canalboat towed. To escape owners relied on agreement 'the her risk.' Notwithstanding agreement, 'must visited consequences' negligence.1 For many years seems generally accepted either (1) construing 'tow not an exemption negligence, (2) holding invalid public policy which exempts tower his negligence.2 4 In 1909 repudiated Second Circuit Oceanica, 170 F. 893, 894. That court requiring vessel 'assume risks' responsibility negligence; it also held, over strong dissent, policy. And rehearing conceded decision majority right tug departure previous decisions.' went express hope 'be set rest case Supreme Court.' Certiorari denied,3 however, continued follow newly announced Oceanica doctrine.4 But other circuits refuse allow towboats their towage.5 It state intercircuit conflict again, 1928, effect claimed exempt negligence. Wash Gray, 277 66, 48 459, 460, 72 787.6 involved provided "responsible any way loss damage" This urged Oceanica. counsel relying insisted recovery 'actionable barred release towage.'7 Without mention said: 'We do think has companies. did (towboat) damage Gray due master crew * *. laid down covers point.' page 73, 460. contracts were worded quite differently, little indication 'rule' mind one mere interpretation. Rather objection indicated Court's quoting pointed out despite bear consequences even though law imposed obligations resting common carrier.8 6 nevertheless argued announce release-from-negligence but more than what cases meant. Strong arguments can made support contention we stronger it. era manifest hostility toward particularly businesses dealing widely having potential monopolistic powers.9 two later declare forbade carriers make contracts.10 next year telegraph company brought under same ban, although stated they carriers.11 Largely because general attitude influence appears enforced 38 years. During period enforcement refused ways—either giving very narrow construction them expressly declared 'contrary so construe' could allowed go clear negligence.12 When belatedly departed still enforce towers' stipulations when repudiate following answer emphatic reiteration approval language Syracuse. Viewed light history, intervening lower together strongly point existence rule, based policy, releasing towers negligence.13 Because history cogent reasons outlawing now, past uncertainty difference among circuits, accept rule. 7 merely particular application business long used legislatures prevent relationships bailors bailees,14 employers employees,15 service companies customers.16 main creation discourage making wrongdoers damages, protect need goods services overreached others who power drive hard bargains.17 These are less applicable today decided. apply equal force tugs operate carriers.18 dangers modern machines necessary discouraged. increased maritime traffic makes important vessels American ports able obtain free compulsions. 8 practical result leaving wholly strikingly illustrated English case. Port London operated harbor ship enter without aid Authority tugs. shipowner get he signed agreeing liable tug's employees. Under recover injuries Port's running tug.19 Such impossible controlling. 9 contended rejected Sun Oil Co. v. Dalzell Towing 287 291, 53 135, 77 311.20 disagree. Unlike instant case, involve designed relieve related only pilotage. captain piloted propelled servant pilotage.21 tugboat piloting Oil's valid thus construed. Appeals22 recognized pilotage Gray. Indeed, decree 'not decisions' course possible found absence different given involved. doubt this, however basic differences upon prefer statement prior cases. 10 distinctions between entirely reasonable hold invalid. pilots only; Pilots unique position world regulated extensively States Government.'23 Some laws officers, chiefly responsible State, private employer. custom independence incompatible obedience normally owed employee employer.24 Their fees fixed charges discriminatory. As employer, person tell how perform duties. does prescribe duties, usually act best engaged vessel. generally, stipulating pilot's cannot likened thing permit itself licensed pilot navigating another company's vessel's power. thing, employees' Thus, conflicts permitting towing. 11 renders done sole risk contract—that servants Bisso—likewise enforced. if valid, shift towed, precisely attempted do. true just says so, here workers truth solely towboat.25 belonged manned hired paid They remained times subject complete control. contrast, never relationship kind character towboat. defeated simple expedient providing shall latter 'employment' purely fiction. 13 Reversed. 14 HARLAN took consideration 15 DOUGLAS, concurring. 16 I join know enough about economics organization business1 change established 171, 382, 787, 17 agree 311, assisted crew. board tow. contract, vessel, familiar 'when puts disposal direction latter, acts directly deemed former.' Id., 295, 136. 18 carrier carrier. assisting Here dead tows, where alone control, tows crews. 19 situation, tugboats carriers2 themselves out, State Washington ex rel. Stimson Lumber Kuykendall, 275 207, 41, 241; Cornell Steamboat United States, 321 634, 64 768, 88 978, carriers. So far know, present much 21 Common 'by form secure negligence.' supra, 294, See York Central Railroad Lockwood, 357, 627; Liverpool & Great Western Steam Phenix Ins. 129 397, 469, 32 788. germane well Judge Coxe, dissenting 896: 22 'It ought fault. begets recklessness, carelessness neglect. prohibiting apply, not, perhaps, extent, design absolute control another's property extorting neglect precautions preserve it.' 23 If carrier, injury tow Stevens White City, 285 195, 52 347, 76 699. effectively command market cargo Coxe seem, therefore, 24 outmoded changed. industry carry risks losses customers. fairer run let operator himself transfer shippers employ services. problem raises large questions records throw light. offered fashion new rule.3 Accordingly, continue roots deep experience, until Congress adopts one. 25 FRANKFURTER, whom REED BURTON join, dissenting. 26 Drawing constitutional powers matters maritime, Art. III, § 2, probably substantive through adjudication legislation. legislation displaced modified decisions. creative function remains unimpaired, within jurisdiction now announce, doctrine, Of course, restrict area full bargaining overriding interest calls restriction. 27 profess originate doctrine invalidity agreement. Pervading assumption explicit presupposition direction, unequivocal pronouncement, body decisions, told, 'strongly On assumption, easily slides conclusion. almost implies conclusion, long-established remotely readily amenable legislative change, adhered to. Especially domain commercial affairs, stare decisis social justification. conducting men naturally assume will unsettle settled conduct business, certainly experience overturning 28 assert necessarily authoritative pronouncement litigation, continuing vitality. adjudications least—in matters—in weight authority courts, Southern extent developed. avouch decisions nor entirety, reflect opposite. critical examination yields conclusions: 29 before claim here. therefore decided, purport decide, validity exemption. purports construction, cited precedent placing exculpatory clauses. 30 Circuits Ninth disclose talk, decision. 31 (3) respecting disregard persuasive Courts Appeals. hand, recognize accords pronouncements most active underlying considerations recently unanimously similar 311. materials conclusions esoteric. assessed, according time-honored rules reading cases—that slipshod ignorant headnote writers decide; gratuitous remarks another. stew delicious dish. throwing indiscriminately dicta, involving carriers, otherwise patently unequal arising parties arm's length. 33 essential examining differentiate sharply validity. ordinary basis liability, relief clearly agreed ambiguity leave doubt. provisions closely scrutinized doubts scope resolve responsibility. fair say number meaning appropriately limited scope. 34 require documentation. 35 Decisions 36 1. crucial issue appeal here, facts steamer 'navigated care skill.' 37 canalboats harbor. receipt stating performed 'at owners.' libel strike anchored sunk, that, vary responsibilities words receipt1 'did discharge steamboat exercise skill'. Langley Fed.Cas., 1115, 8,068. affirmed 593, 13,717, suggestion Neither libel, proceedings Nelson, Justice, briefs ever tendered namely, enforceability whereby Nor issue. Throughout litigation faintest raised skill' special circumstances seamanship. seem indeed strange brief E. C. Benedict, leading lawyer day, give hint reliance instead bring argumentation prove duty navigate 'with satisfied. He framed regarding contract: 'The boat libellant navigation, provided, furnished propulsive navigated skill. 39 'This submit intent masters owners." Brief Appellant, p. 3; see Wall., (summary argument). 40 Davis, read issues evidence court, contentions explicitness admitted 'ordinary navigation suggestion, Nelson circuit, barring agreements, fairly into, liability. 1871. 1873 agreements invalidated 627. applied water. Surely impliedly, moment absent-mindedness, pages justify 41 Reliance climate 'manifest contracts' existing time singularly misplaced. legal thought placed too high value liberty Pound, Liberty Contract, Yale L.J. 454. Had attitude, factor Moreover, hostility, insofar mode narrowly cut common-law situations inequality relation called intervention. Compare Baltimore Ohio S.R. Voigt, 176 498, 385, 44 560; Santa Fe, P.R. Grant Bros. Const. 228 177, 474, 57 787. 42 2. superficial reference it, led some speculate meaning. Compania de Navigacion La Flecha Brauer, 168 104, 12, 398, left ground confusion. Brauer carriage cattle deck "at owner's risk; accountable accident mortality animals, whatever cause arising". specified interpreted which, during storm sea, unnecessarily driven overboard noting unnecessary determine applicable, stating: 43 'By countries, exception, bill lading, perils perils, him contributed. fully occasion decide stipulation servants. 45 'In Jersey Navigation Merchants' Bank (of Boston), How. 344 (12 465) (the stated) 'But going further regard want *'. 'If competent stipulate least terms parties.' 383, 384 465). See, (Steamer) 167 (20 382)'. U.S., 118—120, 15. 46 citation example instances invoked misunderstanding concerning ruling. 47 3. Compan ia Navegacion Interior, S.A. Fireman's Fund. 787 (The Gray), consolidation libels lost Gulf Mexico, eleven insurance underwritten voyage. defenses insurers contained, unknown them, alleged material risk: "Freeport Sulphur tug) furnish hawser. All expense borne Gray). understood you keep sufficient man pumps. S.S. Freeport Gray." 49 'does pretend growing tower's intention obscurity terms.' 196, 200. reversal rested grounds relevant. 493. 50 writ certiorari, reversing Appeals, dismissed terms: 51 vessel; subrogated 171 382), point. view law, shown risk, concealment underwriters injure avoid policy.' 73—74, 54 wording differed, sure, insurers, context undertaking involved, suggestive attempt hardly surprising applied, instance party narrower proper, insurer's attributing broadest clause. 55 4. Any drawn decisively repelled 136, assistance tanker berth Bergen, Jersey: 56 "When goes becomes respect orders handling neither agents resulting therefrom." While acting tanker, aground damaged. action tug, upheld clause, reasonably doubted. concerns rendered bailee bound serve such. Towage bailment, covered foundation like capacity Respondent exclusive privilege monopoly desired tanker. compulsion nothing suggest footing deal 'There denies expressed intention, but, contrary, matter lies range permissible highest actually made.' 58 'Respondent's extended beyond undertook perform. 59 petitioner, (Interior, S.A.,) (Fireman's Fund) turns.' 294—295, 136.2 60 distinguishes pilotage, viewing earlier construction. situation us. analysis conclusion equally upholding 61 Lower Courts. 62 Concededly, since oceanica, 1909, 893,3 Its recent Nielson 209 958, reversed grounds, 129, 654. added Fourth Fifth virtue Boston Metals Winding Gulf.4 significance volume litigation. 63 series three cases, Sixth assiduously avoided clauses, reaching Lakes Bethlehem Transp. Corp., 65 543;5 165 368;6 Walter G. Hougland, Inc., Muscovalley, 184 530.7 decided—that might differ Second, forced pass squarely syllabus relevant Circuit, Alaska Commercial Williams, 128 362, inaccurate. 'cannot failure skill', concluded properly excluded amendment pleadings testimony alleged, show then added: plaintiff error proved proposed be, afforded case', citing 366. 66 Mylroie British Columbia Mills Tug Barge 268 449, 450, stated: 67 "That render Bangor emergency arise happen anchor." 68 after sudden warning towline snap. ready hold, appeared holding, attributed But, rather confused opinion, adopt presupposed seaworthiness negatived Thus inapplicable. 453. accordance meant barge. Holding us consider behalf void.' Mylroie, 259 1, 430, 434, 807. 69 Subsequent developments Circuit's clearer. Sacramento Salz, 759, 761, 273 326, 368, 71 663, shipper merchandise excused former 'dangers fire navigation'. owned bargeowner, negligently cargo. bargeowner quoted and, doing, reflected differing constructions clauses.8 chose ignore dicta Mylroie. subsequent Hall-Scott Motor Car Universal 122 531, 533, indicate 1941, felt reviewed considering analogies pleasure cruiser repaired dry dock principal defense repair repairer "will 'Pacifica' engine installation made." 70 results void 1870, *,' 535. After reviewing contra circuits: unquestionably Phoenix (sic) 73 exculpate contractor invalid.' 535—536. 74 principles safe aside temporary intra-circuit Circuit,9 amounting carriage10 district Every or, expressions appear, merest dicta.11 Interpretation Validity Exculpatory Clause. longstanding fact, Private century half rights liabilities incident misled into contrary belief. Critical authorities, country England,12 freedom circumscribed decision.13 deference arbiter for, Wilburn Boat Fund 310, 368; Halcyon Lines Haenn Ship Ceiling Refitting 342 282, 277, 96 318, lead upset practice shipping sanctioned concerned inferences legislation, significant Congress' careful regulation limit passengers cargo, U.S.C. §§ 183c, 190—192, 1300—1308, U.S.C.A. is, 'gloss' sections, inapplicable usual tug-tow relationship. suggests Congress, limitations field 78 every awaited congressional imposing views contracting parties. interference transportation customers, concededly marine 699, rulings federal invalidate Newport News Shipbuilding Dry Dock 100; 531. International Mercantile Marine W. Fletcher 296 855, 860; Restatement, Contracts, 574, 575. 79 governed role enunciated unanimous repetition: 80 'So bailment length.' 81 call reached Oil. 82 Nothing hints taking notice concentrated ownership.14 undertaken Government corporation. Certainly exploiting rendering unreasonable coercive manner. suggested available consent deletion payment consideration. informed uniformly standard locality. uniformity shown, universal satisfaction arrangement; demonstrate wardship. 83 argument grant immunity stimulate irresponsibility, least, order provide incentive care. setting force, prepared forbid insure liabilities. ultimately requires tow, cost insurance. likelihood, economic burden fall anything record, take notice, exploited unfair position, reason why distribute cast fit. 84 distinction towers. extensive subjected: assimilated officers. place detailed regulatory suggested, fortiori allowing stand. quasi-public status qualifications manner of, doing competition constrains, characteristic similarities proximity denying factors emphasizes applicability each noted wisely incidents apart voluntary arrangements parties, applies proof exclude operation tug. 'liable occurring' finally 'shall 'assists irrespective aboard command' tow.15 86 sufficiently spell termed 'pilotage clause,' so. Whether phraseology ('risk') declaration personnel context, regarded exercised 87 affirm. relating towage, because, true, appellant says, canal-boat nevertheless, liable, if, charge her, suffered loss. Although obligation persons management, care, caution, skill, neglected, disaster occurs, consequences. argument, evidence, blame, inquiry, fault?' e.g., 1904, 366; Edmund L. Levy, 683, 684; M.J. Cummings, D.C. 1883, 178; Jonty Jenks, 1893, 1021, 1023; D.C.W.D.N.Y.1906, 144 301. collected A.L.R. 243—257. 215 599, 400, L.Ed.343. Ten Eyck Director General Railroads, 1920, 267 974; Mercer, D.C.1926, 488. 449; Somers N. Smith, D.C.Me., 120 569; Monarch, D.C.N.D.Fla., 235 795, 799; Sea Lion, D.C.N.D.Cal., 124; Vim, D.C.R.I., 638. 530. Pacific Maru, D.C.S.D.Ga., 166. Officially reported S.A., v Supplemental Petitioner, pp. 9, 10, note supra. manifested strict Smith Pierce, 1830, La. 349, 350; Vanderslice Superior, D.C.E.D.Pa.1850, Fed.Cas. 970, 16,843; Mary Ann, 1856, Cal. 462; Ashmore Pennsylvania Transportation Company, 1860, N.J.L. 180; Wooden Austin, 1866, Barb., N.Y., 9. steamships Butler Commonwealth Pennsylvania, 402, 416, 472. Express Caldwell, 264, 269—270, 556; Brown Postal Tel. 111 N.C. 187, S.E. 179, L.R.A. 648. 'Such bargain doubtless means something; construe nature relaxed faithfulness performing service.' Ulrich Sunbeam, 515, 14,329. Note, 175 8, 18. Writers differed authors regards Admiralty (6th ed. 1940), 100, invalid, saying 'Thus obliquely valid.' Robinson, (1939), 672. 110—141; Willis, Right Bailees Contract Against Liability Negligence, Harv.L.Rev. 297. Duncan Thompson, 315 422, 575; Boyd Grand Trunk R. 33, 263, 266, 26, 27, 94 55; Beers, Contracts Exempting Employers 352. 38—74. 8—157. 104. Part III Interstate Commerce Act regulates others. Stat. 929—952, 901—923, 901—923. 978. Apart statutes sometimes 438—443, 470—473, An discloses difficulty determining President Van Buren, Aspinall's Maritime Cases, N.S., 444. illustration Gulf, 122, 649. Petitioner opportunity showing executed containing proscribed Foundation Canada virtual eastern Canadian seaports petitioner's moved conditions taken position. North Line Chile 1954, 213 882, 884. to, apparently slightly originally on. said, 'A dictum approved as, effect, accepting Oceanica.' use propelling thereform." 292—293, 63. R.S. 4235—4237, 4442, 4444, 211—215, 211—215; 549, 223, 223; 4439, 226, 226; 4449, 4450, amended, 239, 240, 240; McKinney's N.Y.Consol.Laws, Law, c. 37, 64, 87—98, Penal 40, 1501, 1913, 1961, Lien 80; Kotch Board Pilot Com'rs 330 552, 557—564, 910, 912—916, 91 1093; Cooley Wardens Philadelphia, Use Soc. Relief Distressed Pilots, Widows Children, 299, 996. Ibid. China, 53, 67; Eugene Moran, 212 466, 339, 600; 350, 357—358. Adriatic, T.L.R. 699; compare Aspects Harbor Fleet, Fortune (May, 1943); Docking Leviathans World's Busiest Harbor, Travel (June, 1940); Friendly Ushers Christian Science Monitor Magazine Section, July 14, 1937, 8; Tugging Big Time, Saturday Evening Post, Mar. 24, 1945, 26; Admiral Moran's Navy, Collier's, Jan. 15, 1949, 9; Earnings Tugboats Barges Monthly Labor Review 1192. historical account Bowen, Hundred Years (1933). pervasive Commission Act, 898, 929, 901, 905, et seq., 905 held. activities likewise Act. example, 906(e), 907 (i), 913—917, 913 917. Available statistics breakdown, port port, 'captive' servicing company. picture competitive prevailing various ports. enlighten us, undertake reformulate dispute formed 169, directed opening 'unnecessary towage.' Apparently stricter Cf. Note 3, infra. Talisman, 288 242, 328, 329, 721, determinative arose plainly *.' Syracuse: learned judge cover 895. justified thus, reasoned, referred except discussion appreciate keenly should, will, Court', 900—must inaccurately refer cautions constructional approach produced affirmance analogy discredited, 11, 410, itself, conditions, third 414. amounts reservation party's sue affected 'When pushed stern assisted, pushing away bow struck dock. steamer. No substantially 5, independently accident. 'Were compelled paragraph 17, our principle decision, appears.' 371. apparently, sank wake larger authorities,' indicating '* exceptions therein extend connection transportation. excuse 382 Williams cites (there Circuit), carrier's stated, dissenting, agrees risks, meant, cited. distinguishing thereof absolve whereas, bar, 761. Petterson Lighterage Corp. J. Raymond Russell, 467 (viewing overruled Primrose, 267, John Feeney, 270 valid). has, consistently resolved favor 683; turning where, operation, purposes statutes, carriage. Among proposition one, Rescue, D.C.W.D.Pa., 190, theory equivalent carriage, tenable. Two others, 799, 124, 126, contain dismissed. Contrary four 166, 170—173; Navegacion, 200, 787; Mengel Inland Waterways 685, 690—692; Cristobal, Lisa R., 116 560, 561 (all D.C.E.D.La.). include 638; M. D.C.N.D.N.Y., 1021; D.C.W.D.N.Y., 301, 893; D.C.N.J., 14,329; D.C.E.D.Pa., Skagway, D.C.W.D.Wash., 1925 Am.Mar.Cas. 1133. recognizes E.g., Albion, (1953) Eng. 679 (C.A.); Ramsden, (1943) P.D. 46; Tasmania, 110; Service, Rep. (N.S.) 444; Marsden, Collisions Sea, 10th 1953, 216. Just country, specific used. 'all transporting owners' risk,' liable. phrase mean skill incur incidental navigation. Forfarshire, (1908) 339; also, West Cock, (1911) 208 (C.A.). parallel elaboration. Benedict (5th 1925), asserts 'towage disclaim Griffin, Law Collision (1949), 462—466, concludes apparent Robinson 670—673, 'obliquely' juxtaposes resolution inconsistency encyclopedias tend C.J.S., Towage, 75, 1038 (1954) ('It clause.'); Corpus Juris (1933) 60, 136 ('it yet authoritatively determined.'); Jurisprudence 346, 508. ('Although holdings tower, assented negligence.'). exists comprehensive study characterized tendencies inequalities However, lines Corps Engineers, Army, lists 950 described engaging operations specialized throughout States. System, 1955 (Transportation Series 3); System Intracoastal Waterway, 1954 4); Atlantic, Coasts, 5). addition, numerous single listed studies individual Reports, Engineers Rivers Harbors. sources reveal 140 petroleum products Illinois Rivers, rivers, rendered. rough figures warrant enjoys comparable economically states full: '(4) contemplated 'craft towed' boats and/or equipment owner, charterer, hirer towed,' occurring. shall, regardless assists thereof. herein owners, charterers operators life personal responsible. '(5) 'Owner' indemnify harmless accident, damage, effects arising, 'owner' defend suits actions members aforesaid, pay, satisfy, judgments therein, acquittance Lines.'

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