UNITED STATES v. NEWPORT NEWS SHIPBUILDING & DRY DOCK COMPANY. (THE "AMERICA.") [Reprinted, with acknowledgments, from the "United States Daily."]

(1929) 35 Ll L Rep 107

UNITED STATES.CIRCUIT COURT OF APPEALSFOR THE FOURTH CIRCUIT.

Before Circuit Judges Waddill, Parker and Northcott.

Negligence-Damage to ship by fire during repairs-Both ship-repairers' and ship's servants on board-Onus of proof- Seat of fire-"Best opportunity of knowing" - Whether ship-repairers liable for the damage occasioned by fire; if liable, whether shipowners' agreement with respect to insurance operated to relieve the shipyard of liability for the loss to the extent of the amount of insurance that the shipowners agreed to carry-"Provided, however, that the [shipowners] will continue the present hull, machinery and equipment insurance upon the vessel during the period the vessel is at the [ship-repairers'] yard, but the [ship-repairers] shall, at [their] own expense, protect the [shipowners] through a builder's risk insurance . . ." -Ambiguity-Admissibility of evidence showing circumstances leading up to and surrounding making of contract- Consideration for reduction in ship-repairers' bid-Held that the ship-repairers were liable for the fire damage, but that the shipowners contracted to carry the risk of fire on the hull, machinery and equipment up to a certain amount-Judgment for ship-repairers -Certiorari denied.