Compania Naviera Limitada v. Black the Urania

Appellant, a Panamanian corporation, in 1948 purchased from the United States the tanker Urania. The ship had been built for the Navy, and after its acquisition by appellant the latter arranged with appellee, a Seattle ship repair concern, for the making of repairs and alterations so as to adapt her for the carrying of commercial cargo.. One Williams, a marine surveyor and engineer, was sent by appellant to Seattle to supervise the work as its representative, and he remained on the ground throughout. Williams was empowered to order such additional material and labor as he deemed necessary and he did authorize .additional work and parts in an amount of approximately $45,000. The original contract, with which this appeal has very little to do, involved a sum slightly less than that.

The work was completed October 14, 1948, and the ship was ready to sail. Appellant had paid the sum of $25,000, only, on account of work done. To protect itself, appellee filed a libel against the Urania for the balance, whereupon appellant posted a bond and the ship departed Seattle. After the vessel left port certain failures of mechanical parts developed, and because of these difficulties appellant…