Louis-Dreyfus v. Paterson Steamships, Ltd.

43 F.2d 824 (1930)

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Louis-Dreyfus v. Paterson Steamships, Ltd.

United States Court of Appeals for the Second Circuit
43 F.2d 824 (1930)

Facts

Louis-Dreyfus (plaintiff) hired Paterson Steamships, Ltd. (Paterson) (defendant) to ship wheat from Duluth, Minnesota, to Montreal. The wheat was shipped on vessels belonging to Paterson from Duluth to Port Colbourne, Ontario. At Port Colbourne, the wheat was unloaded and later reloaded onto several smaller ships to finish the journey to Montreal. One of these ships, the Advance, belonged to a third party and was chartered by Paterson to carry 35,000 bushels of the wheat. The Advance ran aground and sank in the St. Lawrence River, destroying the wheat. Louis-Dreyfus sued Paterson for damages resulting from the loss of the wheat. Paterson asserted several defenses, one of which was a provision of the Canadian Water-Carriage Goods Act, which shielded the owner or charterer of a ship from liability arising from a shipwreck provided he had exercised due diligence in ensuring the ship was seaworthy and properly manned. The district court found for Louis-Dreyfus, and Paterson appealed.

Rule of Law

Issue

Holding and Reasoning (Hand, J.)

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