Matson Terminals, Inc., a Corporation v. William E. Caldwell, and Sea-Land Service, Inc., Etc.

This is an action by a ship owner, Sea-Land Service, Inc., (Sea-Land), against the contracting stevedore company, Mat-son Terminals, Inc., (Matson), to recover indemnity for breach of a stevedore’s implied warranty of workmanlike service.

Under a written contract, Matson agreed to act as stevedore and terminal operator and “ * * *, as directed, with all possible dispatch, load and/or discharge all cargoes of vessels owned, operated or controlled by” Sea-Land, “and will perform terminal services upon such vessels” at Matson operated piers. Sea-Land granted to Matson the exclusive right of handling all such cargoes at the rates of charges fixed in the schedule.

Matson agreed “while doing the utmost to carry out all the work hereby undertaken to be done”, it was not to be responsible for delays or losses caused by strikes, labor troubles, Acts of God, etc. All work to be performed by Matson was to be in accordance with working rules as set forth in agreements between the longshoremen and the Pacific Maritime Association. In the absence of such agreements, current practice of the port prevailed. Matson agreed to be responsible “for all losses and damage to the vessel, its equipment…