American Home Assur. Co. v. Zim Jamaica

296 F. Supp. 2d 494, 2004 A.M.C. 393, 2003 U.S. Dist. LEXIS 23103, 2003 WL 23021979
CourtDistrict Court, S.D. New York
DecidedDecember 24, 2003
Docket01 Civ. 2854(PKL)
StatusPublished
Cited by6 cases

This text of 296 F. Supp. 2d 494 (American Home Assur. Co. v. Zim Jamaica) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Home Assur. Co. v. Zim Jamaica, 296 F. Supp. 2d 494, 2004 A.M.C. 393, 2003 U.S. Dist. LEXIS 23103, 2003 WL 23021979 (S.D.N.Y. 2003).

Opinion

OPINION AND ORDER

LEISURE, District Judge.

Plaintiff American Home Assurance Company (“American Home” or “plaintiff’) moves for summary judgment under Rule 56(a) of the Federal Rules of Civil Procedure on the issue of liability against defendants m/v Zim Jamaica, her engines, boilers, etc., and Zim Israel Navigation Company, Ltd. (“Zim” or “defendants”). Defendants oppose the motion, contending that plaintiff has not made out a prima facie case and that several genuine issues of material fact remain for a trial to resolve. For the reasons set forth below, the Court grants in part and denies in part plaintiffs motion for summary judgment.

Factual Background 1

On or about July 19, 2000, a shipment of 3,571 cartons of bathroom fixtures arrived *496 in Greensboro, North Carolina, wet and damaged from exposure to freshwater. (Declaration of Carolyn Thomas, ¶¶2, 3 (“Thomas Decl.”); Defendant’s Rule 56.1 Statement in Response to Plaintiffs Statement, ¶¶ 7, 8 (“Def.’s 56.1 Resp.”); Declaration of Dave Morris, ¶¶ 2-6 (“Morris Decl.”).) Plaintiff is an insurer of the shipper of the cargo, Liberty Hardware Manufacturing Company (“Liberty”). Plaintiff claims that no genuine issue of material fact obscures the conclusion that defendants were responsible for the cargo when it was damaged. 2 Defendants are the carrier and ship that delivered the cargo from the port of Huangpu, China, to Greensboro. Defendants claim that disputed issues of material fact remain as to, among other things, (1) when the cargo was damaged, (2) when defendant took responsibility for the cargo, (3) whether defendant inspected the cargo upon receiving it, and (4) who had responsibility for the cargo when it was damaged. 3

1. The Cargo

The cargo began its trip to North Carolina in the Globe Express warehouse in Guangzhou, China, in the custody of plaintiff. (Declaration of Lao Xiji, ¶ 2 (“Xiji Deck”); Declaration of Assaad Najm, ¶2 (“Najm Decl.”).) On June 7, 2000, truck driver Lao Xiji delivered a 40-foot shipping container from the port of Huangpu to the warehouse in Guangzhou. (Xiji Decl. ¶2.) Employees for Globe Express loaded the 3,571 cartons into the shipping container. (Xiji Decl. ¶¶ 2, 3; Najm Decl. ¶ 2.) The container was then closed and sealed by Lao Xiji and the warehouse manager, Assaad Najm. (Xiji Decl. ¶ 3; Najm Decl. ¶ 4.) Xiji drove the sealed container to the port of Huangpu. 4 (Xiji Decl. ¶ 3.) On or about June 7 or June 8, at the port of Huangpu, defendants inspected the container, confirmed the seal number, and received the container into their custody. (Xiji Decl. ¶ 4; Declaration of U. Furman, ¶2 (“Furman Deck”); Bill of Lading, attached to the Declaration of Joseph W. Hirn, III (“Hirn Deck”) as Exhibit A.) Defendants did not, however, inspect the cargo inside the container. (Hirn Deck ¶ 5, Ex. A.) Defendants issued a clean bill of lading that included the phrase “Shipper’s Load Stowage & Count: Said To Contain.”

*497 Once in defendants’ control, the container was loaded onto the barge Change Yong, which left for Hong Kong on June 10. (Furman Decl. ¶ 4.) At Hong Kong on June 11 the container was transshipped to another barge, the Chang Tong, which delivered the container to the port of Shekou on June 12. (Furman Decl. ¶¶ 5, 6.) The container apparently waited at a terminal at Shekou, then was loaded onto the Zim Jamaica on June 15. (Furman Decl. ¶¶ 6, 7.) The Zim Jamaica thereafter left for Savannah, Georgia. At the port in Savannah, on or around July 17 and 18, the container was discharged from the Zim Jamaica and trucked by Panther Trucking to the Liberty Hardware facility in Greensboro, North Carolina, pursuant to the Zim Bill of Lading. (Defs 56.1 Resp. ¶ 7; Hirn Decl. ¶ 8, Ex. E.) The container remained defendants’ responsibility until Liberty Hardware received it in Greensboro. (Hirn Decl. ¶ 6.) Upon receipt in Greensboro, the container was opened and its contents were found to be wet and damaged by freshwater, with rust forming. (Defs 56.1 Resp. ¶ 7.)

11. The Water

Neither party offers direct proof of precisely when and how the cargo was exposed to and damaged by freshwater. No one saw, for example, the cargo left exposed on a rainy day. Rather, each side offers evidence that the cargo was not damaged while in its own control, and infers that the cargo must have been damaged while in the other party’s control.

Plaintiff submits declarations of the warehouse manager, Najm, and trucker, Xiji, who observed and had control over the cargo when it was loaded into the container and delivered to defendants at Huangpu. Each declares that the cargo was dry and in good condition when loaded into the container. (Najm Decl. ¶ 3; Xiji Decl. ¶ 2.) Xiji further declares that it did not rain on June 7, the day the cargo was loaded in thé container and driven to the port. (Xiji Decl. ¶ 5.) Plaintiff also submits weather data compiled by the United States Department of Commerce suggesting that it did not rain in the area of the cargo on June 7. 5 (Declaration of Edward Radzik, Ex. 3 (“Radzik Decl.”).) All witnesses concur that once the cargo was loaded and the container sealed, the container appeared in good condition before and after its delivery to defendants at Huangpu. (Xiji Decl. ¶4; Furman Decl. ¶ 2; Transcript of Deposition of Yemini Simantov, at 11-12 (“Simantov Tr.”).) Although it argues that precisely when the cargo was damaged is not a material fact, plaintiff offers weather data for the relevant area and time period suggesting that it rained on one or more days when the container was in defendants’ possession *498 but not yet loaded on the Zim Jamaica. (Radzik Deck Ex. 3.) Plaintiff theorizes that the cargo was damaged by rain water flooding prior to being loaded on the Zim Jamaica, and submits that it rained on June 12 in the area of the container. (Radzik Decl. Ex. 3.)

Defendants submit declarations of their director of operations in the far east, Fur-man, of an investigator, Hirn, of a claims adjuster, Morris, and the deposition testimony of the captain of the Zim Jamaica, Simantov, each of whom opine about the possibility of the cargo getting wet at the ports or aboard the barges or Zim Jamaica. Furman declares that it is impossible for fresh water to accumulate on the Chang Yong and Chang Tong barges. (Furman Deck ¶¶ 4, 5.) He also declares that there was no report of flooding on the terminal at Shekou. (Furman Deck ¶ 6.) Simantov, at his deposition, explained the position in which the container was stowed on the Zim Jamaica. (Simantov Tr. at 8-9.) Simantov testified that the container was stowed at least nine feet above the bottom of the hold, and that he would know whether there was water in the hold because he could see the loading of the ship and the ship has alarms for such instances. (Simantov Tr.

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296 F. Supp. 2d 494, 2004 A.M.C. 393, 2003 U.S. Dist. LEXIS 23103, 2003 WL 23021979, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-home-assur-co-v-zim-jamaica-nysd-2003.