Evansville & Bowling Green Packet Co. v. Chero Cola Bottling Co.

Background

A river wharfboat owner and several cargo owners were in dispute after the owner's wharfboat sank on May 14, 1922, in the Ohio River at Evansville, Indiana, damaging merchandise. The owner asked a federal maritime court to limit liability under laws that cap shipowners’ losses; the cargo owners defended their claims. The district court heard extensive evidence about the structure and found it was not a "vessel" under the statutes, dismissed the limitation claim because those vessel rules did not apply, and the owner appealed the jurisdictional question.

Reasoning

The Court addressed whether the structure was practically a means of transportation on water. It noted the wharfboat’s history, its 243-by-48-foot dimensions, wooden construction, concrete lining, lack of machinery or propulsion, permanent mooring by cables, and connections to city water, electricity, and telephone. The structure served as an office, warehouse, and transfer point; charges were for storage and handling, not for transporting goods from place to place. Because it was not used or practically capable of carrying freight and did not face navigation risks, the Court concluded it was not a vessel and the limitation law did not apply, so the owner could not invoke the statutory cap on liability.

Real world impact

The decision prevents owners of similar permanently moored wharfboats or floating warehouses from using vessel-limit laws to cap liability for cargo loss. Cargo owners whose goods are damaged on such structures can pursue full claims against the owner. The Court affirmed the district court’s decree.