Shaver Transportation Company v. The Travelers Indemnity Company

481 F. Supp. 892 (1979)

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Nature of the Case

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Facts

Shaver (P), a barge company, contracted with Weyerhaeuser Company (Weyerhaeuser) to transport caustic soda from Weyerhaeuser plants to a buyer of the soda, GATX. P arranged for marine cargo insurance with D. Several different 'coverages' were discussed. Pdecided on Free from Particular Average and 'standard perils' provisions supplemented with 'specially to cover' clauses. P loaded the first shipment and transported it to GATX. GATX refused delivery. The soda had been contaminated with tallow. The parties agree that contamination occurred as P was loading the caustic soda aboard the barge. The barge had previously carried a load of tallow, and Shaver had not thoroughly cleaned the barge input lines. recoverable loss under the marine open cargo policy. P contracted with a chemical salvage company for the removal of the liquid. P incurred expenses in storage, including the cost of heating the soda and repairing corroded boilers and pipes. Weyerhaeuser lost the value of the shipment, offset partially by the salvage value. P and Weyerhaeuser notified D that they claimed under the marine cargo insurance policy and tendered abandonment of the cargo to D. D refused the tender and denied liability under the policy. Ps sued D.