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Dixilyn Corp. v. Crescent Co.

U.S.
Apr 15, 1963
372 U.S. 697 (1963)

Summary

In Crescent Towing the barge agreed to indemnify the tower against the tower's own negligence and coupled that agreement with a commitment to procure insurance assuring the barge's ability to do so.

Summary of this case from Twenty Grand Offshore v. W. India Carriers

Opinion

CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE FIFTH CIRCUIT.

No. 297.

Argued March 21, 1963. Decided April 15, 1963.

The holding of Bisso v. Inland Waterways Corp., 349 U.S. 85, and Boston Metals Co. v. The Winding Gulf, 349 U.S. 122, that a two-boat owner may not validly contract against liability for its own negligence is reaffirmed. Pp. 697-698.

303 F.2d 237, reversed.

E. D. Vickery argued the cause for petitioner. With her on the briefs was Wilbur H. Hecht.

Charles Kohlmeyer, Jr. argued the cause for respondent. With him on the brief was George B. Matthews.


Respondent Crescent Towing Company contracted with petitioner Dixilyn Drilling Corporation to tow Dixilyn's barge Julie Ann down the Mississippi River. While being towed, the barge collided with a bridge, and the bridge owners filed a libel in the United States District Court claiming damages from the tower and the barge owner. These two jointly paid the claim but continued to litigate, as between themselves, the question of which was liable. The district judge after a full trial found that the collision and the resulting damage were due solely to the negligence of the tower. He also rejected the tower's argument that regardless of which was negligent the barge owner should pay the damages because it had contracted to assume liability for all damages arising out of the towage including "any damage claims urged by third parties." The judge held that the barge owner had not agreed to assume liability for damages caused by the tower's own negligence. On review the Court of Appeals held that it need not decide the "extremely difficult" factual question of who was negligent because, in the court's view, the barge owner had agreed in the towage contract to assume liability for all losses arising out of the towage, including those caused by the tower's negligence. Holding such a contract to be valid, the Court of Appeals reversed the District Court's judgment.

In treating as valid a contract which exempts the tower from liability for its own negligence, the Court of Appeals' holding is squarely in conflict with our holding in Bisso v. Inland Waterways Corp., 349 U.S. 85 (1955), and Boston Metals Co. v. The Winding Gulf, 349 U.S. 122 (1955). The Court of Appeals thought that the present case was distinguishable because the peculiar hazards of towage and other factors brought it within the ambit of Southwestern Sugar Molasses Co. v. River Terminals Corp., 360 U.S. 411 (1959). But Southwestern Sugar is not applicable here, for in that case the Court merely preferred to give the Interstate Commerce Commission an opportunity to rule on an exculpatory clause which was part of a tariff filed with the Commission. We adhere to the rule laid down in Bisso and Winding Gulf and hold that the Court of Appeals was in error in failing to follow it. The judgment is reversed and the cause remanded to that court to consider other questions.

Reversed and remanded.


While I would prefer to see Bisso reconsidered, believing, with deference, that it was wrongly decided, I nevertheless join the opinion of the Court. Certainly in the law governing commercial transactions of this kind is an overriding consideration which would not be promoted by opening the Bisso rule to indeterminate exceptions in instances where, unlike Southwestern Sugar, no functions of a regulatory agency are involved.


Summaries of

Dixilyn Corp. v. Crescent Co.

U.S.
Apr 15, 1963
372 U.S. 697 (1963)

In Crescent Towing the barge agreed to indemnify the tower against the tower's own negligence and coupled that agreement with a commitment to procure insurance assuring the barge's ability to do so.

Summary of this case from Twenty Grand Offshore v. W. India Carriers

In Crescent Towing, Justice Harlan, while expressing his conviction that Bisso was wrongly decided, cautioned against the hazard of creating indeterminate exceptions to the Bisso rule.

Summary of this case from Twenty Grand Offshore v. W. India Carriers

In Crescent, the towing agreement provided that "any damage claims urged by third parties as well as any claim which may be urged by virtue of damages to the drilling rig in the course of the towage shall be for your account [the barge owner] and account of your underwriters."

Summary of this case from Twenty Grand Offshore v. W. India Carriers

In Dixilyn Drilling Corp. v. Crescent Towing and Salvage Co., 372 U.S. 697, 83 S.Ct. 967, 10 L.Ed.2d 78 (1963), the court, relying on Bisso, struck down a similar contractual provision.

Summary of this case from Dickerson v. Continental Oil Company

Considering liability between barge tower and offshore drilling barge owner to third parties’ bridge after barge collided with bridge while being towed

Summary of this case from W. Towboat Co. v. Vigor Marine, LLC

In Dixilyn, the towage agreement provided that barge owner would assume all liability for damages arising from towage, including any damage claims made by third parties.

Summary of this case from Crawford v. West India Carriers, Inc.
Case details for

Dixilyn Corp. v. Crescent Co.

Case Details

Full title:DIXILYN DRILLING CORP. v . CRESCENT TOWING SALVAGE CO

Court:U.S.

Date published: Apr 15, 1963

Citations

372 U.S. 697 (1963)
83 S. Ct. 967

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