Connell Bros. v. Sevenseas Trading & Steamship Co.

Libelants in these two cases, which were consolidated for trial, seek to recover prepaid freight and damages for cargo lost when The Salina Cruz burned" and sank while en route from Vancouver, B. C. to Honolulu. In each case the respondents have set up as affirmative defenses the inclusion in the bills of lading of the “freight earned", ship and/or cargo lost or not lost” clause and the provisions of the so-called Fire Statute, 46 U.S.C.A. § 182 . The Court will dispose of the prepaid freight question first.

The evidence shows that respondent Sevenseas is a family owned Panamanian corporation of which respondent Stralla is president and general manager. The Salina Cruz, a vessel of Panamanian registry, was acquired from the West Coast Line in April of 1949 and had made only one voyage under Sevenseas ownership prior to the fatal voyage in October, 1949. Cargo shipments for the October voyage were secured by Sevenseas’ San Francisco agent through respondent Anglo Canadian Shipping Co.,, Ltd. The bills of lading that issued for these shipments were the so-called “Baltimore Form C” which did not contain the freight earned clause. Respondents contend, however, that Seven-seas had…