Albina Engine & MacHine Works, Inc., an Oregon Corporation v. Hershey Chocolate Corporation, a Delaware Corporation

On April 2,1958, a fire occurred aboard the S.S. Robert Luckenbach, an oceangoing cargo vessel owned and operated by appellee Luckenbach Steamship Company, while the ship was undergoing repairs in Portland, Oregon. The source of the fire was a welding operation being conducted by appellant Albina Engine & Machine Works. As a result of the fire, damage was sustained by the ship and by its cargo. The ship’s damage was repaired by Albina.

This libel was brought by Cargo against both Albina and Luckenbach, charging both with acts of negligence. Albina and Luckenbach filed cross-libels against each other, Albina seeking to re cover compensation for its repair work and Luekenbach seeking to recover damage to its vessel and charging that the damage was due solely to the negligence of Albina.

The basic question presented by this litigation is as to the relative responsibility of Albina and Luekenbach for the fire and the resulting damage. The district court resolved this question in favor of Luekenbach. By interlocutory decree the court dismissed the libels of Cargo and Albina against Luekenbach. Liability of Albina to both Cargo and Luekenbach was decreed subject to subsequent…