Marr Enterprises, Inc., and Ben Paz v. Lewis Refrigeration Co.

Marr Enterprises, Inc. (“Marr”), an Oregon family corporation, operated the fishing vessel CARICA along the Oregon coast. In 1971, Marr decided to operate in Alaskan waters off Kodiak. Being unfamiliar with those fishing grounds, it entered into a “lease” of the CARICA on April 3, 1971 with Ben Paz, an Alaska citizen.

On May 6 of that year, Marr contracted with Lewis Refrigeration Co. (“Lewis”), a Washington corporation, for installation of a CO2 brine refrigeration system aboard the CARICA. The injection of CO2 into brine to combat the growth of bacteria was an experimental part of the system. Paz was aware of the negotiations between Marr and Lewis but was not a party to the contract.

The refrigeration system did not work properly and was disconnected by Paz in January 1972. Thereafter he fished in the conventional manner, icing down the shrimp in the hold of the CARICA until it reached port.

Marr brought suit in district court in Western Washington for breach of contract and for negligence on the part of Lewis, alleging as damages miscellaneous costs of repair to the vessel, removal of the system, and payment for installation of the defective system. Paz joined in the suit…