Standard Oil Co. v. Southern Pacific Co.
United States Supreme Court
268 U.S. 146 (1925)
- Written by Carolyn Strutton, JD
Facts
The Proteus, a ship owned by Southern Pacific Co. (plaintiff) and the Cushing, a steamship owned by Standard Oil Co. (defendant) collided in 1918. The Proteus and its cargo were lost. Southern Pacific sued Standard Oil in federal court. The district court found that both vessels were at fault and referred the issue of damages to a commissioner. At the time of the loss, there were unprecedented demand and shortages on shipbuilding facilities and materials, and the market value of most existing ships was higher than the cost to construct them would have been. The commissioner held that Southern Pacific should receive $750,000 in damages for the loss. Both Southern Pacific and Standard Oil appealed, with Sothern Pacific claiming that the valuation was too low. The district court of appeals upheld that the Cushing was at fault and increased the valuation for damages to $1,225,000. Standard Oil appealed.
Rule of Law
Issue
Holding and Reasoning (Butler, J.)
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