IN THE UNITED STATES COURT
OF APPEALS
FOR THE FIFTH CIRCUIT
No.99-30097
CYNTHIA ARMIT, wife of/and JOHN
ARMIT,
Plaintiffs,
VERSUS
ELENI INTERNATIONAL, SHIPPING, S.A.,
SAFETY MANAGEMENT OVERSEAS, S.A.,
Defendants-Cross-Defendants-
Appellees,
VERSUS
BUNGE CORPORATION,
Defendant-Cross-Claimant-
Appellant.
Appeals from the United
States District Court
for the Eastern District
of Louisiana
January 21, 2000
Before HIGGINBOTHAM and SMITH, Circuit
Judges, and DUPLANTIER,
District Judge.
DUPLANTIER, District Judge:
District Judge of the Eastern District
of Louisiana, sitting by designation.
This appeal presents the issue of
whether Blue Water Shipping Company (Blue Water), the agent for
the time charterer of the M/V ELENI, had actual or apparent authority
to bind Eleni International Shipping, S.A. (Eleni), the owner
of the M/V ELENI, or Safety Management Overseas, S.A. (Safety),
the operator/manager of the vessel, to the indemnification and
defense provisions of a dock tariff incorporated by reference
into the berth application for the vessel. The district court
granted summary judgment in favor of Eleni and Safety. We affirm.
I. FACTUAL AND PROCEDURAL
BACKGROUND
Messrs. Fratelli D'Amato, the time
charterer of the vessel, designated the grain elevator owned
by Bunge Corporation (Bunge) as the loading facility for the
vessel and appointed Blue Water as its agent at the loading port.
Thereafter, Blue Water facilitated the berthing of the vessel
at the Bunge dock. Roy Sergi, an operations agent for Blue Water,
signed the Application for Berth for the vessel. When the vessel
experienced engine problems and was unable to berth as scheduled,
a representative of Blue Water notified Bunge of the situation.
Bunge then advised Blue Water that a new berth application and
Notice of Readiness would have to be filed before the vessel
could berth at the Bunge facility. After the vessel's engine
problems were resolved, a representative of Blue Water signed
and filed a new Application for Berth and Notice of Readiness,
and the M/V ELENI then docked at the Bunge facility. While preparing
to load grain aboard the vessel, John Armit, a longshoreman employed
by River Rentals Stevedoring, Inc.(River Rentals), was injured.
In a letter addressed to Bunge and River Rentals, and copied
to Blue Water, the master of the ELENI denied responsibility
for the accident. Blue Water, at the request of the master, faxed
the letter to Bunge.
The injured longshoreman and his
wife filed suit against Eleni, Safety, and Bunge seeking damages
for the injuries and losses they sustained. Bunge filed a cross-claim
against Eleni and Safety for indemnification and defense costs
pursuant to Bunge Corporation Grain & Dock Tariff No. 9 (Dock
Tariff No. 9) which was incorporated by reference into the Application
for Berth executed by Blue Water.(1)
The district court granted summary
judgment in favor of Eleni and Safety on the Armits' claims as
well as on Bunge's cross-claim for indemnification and defense
costs.(2) Bunge appeals the order
and judgment dismissing its cross-claim.
II. STANDARD OF REVIEW
We review the grant of a motion
for summary judgment de novo. Hall v. Thomas, 190
F.3d 693, 695 (5th Cir. 1999). "[W]e apply the
same standard as that used by the district court, viewing the
facts and drawing inferences in favor of the non-moving party."
Chamrad v. Volvo Cars of North America, 145 F.3d 671,
672 (5th Cir. 1998). Summary judgment is properly
granted only when there is no genuine issue as to any material
fact and the moving party is entitled to judgment as a matter
of law. Fed.R.Civ.P. 56(c), Celotex Corporation v.
Catrett, 477 U.S. 317, 322, 106 S.Ct. 2548, 2552, 91 L.Ed.2d
265 (1986).
III. ANALYSIS
It is undisputed that the Dock Tariff
No. 9 is not a mandatory tariff. Therefore, its provisions are
enforceable against Eleni only if Eleni, or an agent acting on
Eleni's behalf, contractually assumed the obligations set out
in the tariff. Bunge contends that Blue Water accepted the terms
of the tariff as the agent for Eleni. Eleni argues that Blue
Water had no authority, express or implied, to act on its behalf.
In determining whether an agency
relationship exists between the vessel owner and the vessel charterer's
agent, the following facts are relevant: (1) who selected the
agent, (2) whether the owner exercised control over the selection
of the agent, and (3) whether the owner exercised control over
the agent. Marvirazon Compania Naviera, S.A., 674 F.2d
364, 367 (5th Cir. 1982). Where the vessel owner did
not select the agent and exercised no control over the agent
"with regard to obligations imposed on the charterer including
berth arrangements," the charterer's agent lacks actual
authority to bind the vessel owner. Id.
The charterer, not Eleni, selected
Blue Water as the agent at the loading port. There is no evidence
that Eleni exercised any control over the charterer in its selection
of Blue Water as its agent or that Eleni exercised any control
over Blue Water. There is a complete lack of evidence that Blue
Water had actual authority to act on behalf of Eleni.
However, even absent actual authority
to act on behalf of Eleni, acts by Blue Water bind Eleni if Blue
Water had apparent authority to act on Eleni's behalf. "Apparent
authority is created as to a third person by conduct of the principal
which, reasonably interpreted, causes the third person to believe
that the principal consents to the act done on his behalf by
the person purporting to act for him." Cactus Pipe &
Supply Co., Inc. v. M/V MONTMARTRE, 756 F.2d 1103, 1111 (5th
Cir. 1985), citing Restatement (Second) of Agency §27.
To prove apparent authority, Bunge
must present evidence that Eleni engaged in some conduct which
Bunge could reasonably interpret as a representation to it that
Blue Water was Eleni's agent and that as a direct consequence
thereof Bunge reasonably relied on Blue Water's purported authority.
See Crescent City Marine, Inc. v. M/V NUNKI, 20 F.3d 665,
669 (5th Cir. 1994), Richard A. Cheramie Enterprises
v. Mt. Airy Refining Co., 708 F.2d 156, 158 (5th
Cir. 1983). The record contains no evidence of such conduct.
Bunge points to the following acts
in support of its contention that Blue Water had apparent authority
to act on behalf of Eleni: 1) a representative of Blue Water
signed the berth applications for the vessel and provided advance
dockage funds; 2) a representative of Blue Water notified Bunge
that the vessel would not berth as originally scheduled; 3) the
master of the vessel authorized a representative of Blue Water
to sign the bills of lading; 4) a representative of Blue Water
signed the "Statement of Facts"; and 5) a representative
of Blue Water forwarded to Bunge a letter from the master of
the vessel denying responsibility for the accident.
Either a charterer or a vessel owner,
or an agent acting on behalf of either, can make berthing arrangements
for a vessel and sign a berth application. Thus Blue Water's
actions in arranging for the berthing of the vessel, signing
the berth applications, and providing advance dockage funds,
provided no basis for Bunge to conclude that Blue Water was acting
on behalf of Eleni. Moreover, this activity was not conduct by
Eleni.
Nor can the fact that the master
of the vessel authorized a representative of Blue Water to sign
bills of lading on his behalf be reasonably construed as a representation
by Eleni that Blue Water was authorized to accept the tariff
provisions on its behalf. That authorization, on its face, unambiguously
restricts Blue Water's authority to the signing of bills of lading
"in accordance with all terms and conditions of governing
charter party...." Considering the limited nature of the
authority conveyed by that authorization, Bunge could not have
reasonably relied on it to conclude that Blue Water had authority
to accept the terms of Dock Tariff No. 9 on behalf of Eleni.
Moreover, the master's conduct in
authorizing Blue Water to sign bills of lading did not occur
until after the berth application which incorporated the indemnity
and defense provision at issue was executed. Clearly, Bunge could
not have relied upon that later conduct to conclude that Blue
Water was acting as Eleni's agent at the earlier date. The same
analysis applies to several other of Bunge's contentions, including
that related to the "Statement of Facts", which was
signed by Blue Water after the berth application was executed.
For the same reason, we conclude
that Bunge, at the time that the berth application was executed,
could not have relied upon the fact that the master subsequently
transmitted his denial of liability letter through Blue Water
as an indication of Blue Water's authority to accept the provisions
of the dock tariff on behalf of Eleni.
Alternatively, relying solely upon
the affidavit of James Giangrosso, a supervisor for River Rentals,
Bunge contends that even as a non-signatory to Dock Tariff 9,
Eleni is bound by the tariff because it had notice of the provisions.
While it is true that Mr. Giangrosso's affidavit states that
he delivered documentation including the tariff to the master
or an officer of the ELENI, there is no dispute that this took
place after the singing of the berth application and the docking
of the vessel. Obviously, this evidence cannot establish that
Eleni had notice of the tariff provision prior to the time that
the vessel berthed.
IV. CONCLUSION
For the foregoing reasons the judgment
of the district court is affirmed.
1. 1Bunge
Corporation Grain & Dock Tariff No. 9 provides in
pertinent part:
Any and all vessels and their owners
and operators
shall assume sole responsibility
and liability for
injury to or death of any person
whomsoever, or damage
to or destruction of any property
incident to,
arising out of or in connection
with (i) the vessel,
its crew or its agents or licensees
entering
upon or using elevator property;
(ii) the vessel,
its crew or its agents or licensees
having custody
of or using or operating elevator
equipment;
or (iii) operations, acts or omissions
of the vessel,
its crew or its agents or licensees;
and any and
all vessels and their respective
owners and
operators shall protect, indemnify
and save the
elevator harmless from and against
any and all
suits, claims, damages or liabilities
for or in
respect of the same, whether based
on a theory of
tort, contract, warranty, strict
liability or
absolute liability, by operation
of law or
otherwise, including, without limitation,
all suits,
claims, damages or liabilities alleged
to have been caused by the elevator's
sole,
comparative or contributory negligence
or fault.
The foregoing applies at all times,
including
but not limited to, while the vessel
is berthed
at the elevator dock and/or during
berthing
at and departing from the elevator
dock.
2. 2The
interests of Eleni and Safety are identical. They will be referred
to collectively as Eleni.
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