Federal Marine Terminals, Inc. v. Worcester Peat Co., Inc.

This appeal arises from a payment dispute between Worcester Peat Company (Worcester Peat) and Federal Marine Terminals (FMT) over a stevedoring contract. FMT contracted to load peat for Worcester Peat onto a vessel for shipment to Europe. After the loading was completed, the parties disagreed about the contract’s provision regarding the calculation of FMT’s fee. FMT charged Worcester Peat for the volume of peat it handled through the port based on the number of truckloads Worcester Peat had delivered and the volume of peat in each truck. However, Worcester Peat based its payment on the quantity of peat calculated by reference to the box volume, or total cubic capacity, of the vessel, a sum significantly less than the amount of FMT’s invoice. The district court found that the contract unambiguously stated that FMT was to be paid by the volume of peat handled, and not by the box volume of the shipping vessel, and entered judgment against Worcester Peat for nearly $80,000. The court also rejected Worcester Peat’s counterclaim for peat it alleges was lost during the loading process.

On appeal, Worcester Peat challenges the district court’s determination that the contract was unambiguous and argues that the court also erred in not charging FMT for demurrage and for peat Worcester Peat claims was lost due to FMT’s negligence in the loading process. Finding no error in the district court’s rulings, we affirm.