E. B. Ackerman Importing Co. v. City of Los Angeles

Plaintiffs appeal from a summary judgment in favor of defendant City of Los Angeles in an action brought *596 to recover for damage to plaintiffs’ goods. The merchandise was stored in a transit shed located on a pier in Los Angeles Harbor, owned by the defendant city, and maintained by its harbor department.

Some of the plaintiffs’ goods which had been placed in the shed were, on March 12, 1956, awaiting transfer for export to a vessel of the Grace Line, Inc., while the remainder of such goods had been unloaded from other ships of that carrier and were awaiting delivery to their consignees. On the above date a water pipe located beneath the floor of the shed broke. Water from the pipe flooded the floor of the shed and damaged the merchandise so stored.

Since 1946, and at the time of the accident, an agreement was in effect between the Grace Lines and defendant city whereby that carrier was given a “preferential berth assignment” for the use of the pier and shed in question.

Also in effect at the time of the accident was an agreement establishing the California Association of Port Authorities, 1 of which the Port of Los Angeles was a member. This agreement provided in article…