Crowley Launch & Tugboat Co. v. County of Los Angeles

Opinion

THOMPSON, J. This is an appeal from a judgment of the superior court granting respondent a refund of personal property taxes paid upon the tugboat Navigator for the taxable years 1961 and 1962. We reverse the judgment.

The essential facts controlling determination of the issue presented by the case at bench are not in dispute. They are precisely and cogently set forth in a memorandum opinion of the trial judge which we here adopt in part. During the pertinent period of time, Navigator was employed almost exclusively as a harbor tug. For inbound ships, her services usually began in the outer harbor of Los Angeles or Long Beach. When a cargo or passenger vessel arrived in the outer harbor, Navigator and perhaps other tugs would be made fast to the ship. The tugs would then assist the ship in navigating the waters and channels of the harbor. Upon arrival at the ship’s assigned berth, the tugs would assist her in coming alongside the dock preparatory to mooring. After the vessel was safely moored, the tugs would proceed to other work. Navigator and other tugs were also used to assist [439]ships in undocking and in navigation of the channels and other waters of the harbor at the commencement of an outbound voyage and in shifting from one berth to another. Navigator carried no passengers or cargo aboard. There were no dealings between consignors or consignees of cargo or of passengers with the management, of Navigator. Arrangements for employment of the tug were made by the master or agent of the ship and the tug was not concerned with the presence, nature or amount of cargo or passengers aboard any ship assisted except as the nature of cargo might affect the safety of the tug.

In performing her services, Navigator supplied motive power for moving the ship, at times with the assistance of the ship’s engines and at other times without assistance. The services of tugs such as Navigator are essential to the efficient handling of ships and other water-borne commerce in Los Angeles and Long Beach harbors. They have been routinely used for many years; During the time that tugs are secured to the ship, the tug and the ship, in most situations, operate as a single unit with the tug supplying motive power and means directing the course of the ship. In that physical sense, the tug and the ship move and act as a single unit during the time the tug is secured alongside. During the period that the tug is secured to the ship, the unit is always under the control of the ship’s master who is usually assisted by a port pilot. The activities of the tug are directed by the master or pilot and the master of the tug has no authority to direct the manner in which the ship shall navigate or maneuver.