Standard Oil Co. of California v. United States

This is a proceeding in admiralty wherein libelant seeks damages under the Suits in Admiralty Act, 46 U.S.C.A. §§ 741-752 , for the commingling of part of a cargo of gasoline and Diesel oil shipped on the tanker “Egg Harbor,” a vessel owned and operated by the United States of America, by and through the War Shipping Administration.

This case presents two broad questions of law, namely:

1. Does the Carriage of Goods by Sea Act apply to the shipment involved?

2. Did the. War Shipping Administration exceed its power in executing a charter party wherein it created a liability against the United States for all provable damages including attorney’s fees?

According to the evidence the “Egg Harbor”, a Swan Island tanker, on its maiden voyage to Point Wells, Washington, received from the libelant at San Pedro, California, 60,933.31 barrels of marketable Standard Diesel furnace oil, and at El Se gundo, California, 63,789.52 barrels of marketable Standard gasoline. Upon arrival at Point Wells, Washington, tests were taken by means of lowering small containers into the tanks. Observing and smelling the contents, failed to disclose any contamination. The libelant also took samples at the…