APL Co. Pte. Ltd. v. Kemira Water Solutions, Inc.

890 F. Supp. 2d 360, 2012 WL 3765043, 2012 U.S. Dist. LEXIS 124458
CourtDistrict Court, S.D. New York
DecidedAugust 22, 2012
DocketNo. 11 Civ. 1686(KBF)
StatusPublished
Cited by12 cases

This text of 890 F. Supp. 2d 360 (APL Co. Pte. Ltd. v. Kemira Water Solutions, Inc.) 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
APL Co. Pte. Ltd. v. Kemira Water Solutions, Inc., 890 F. Supp. 2d 360, 2012 WL 3765043, 2012 U.S. Dist. LEXIS 124458 (S.D.N.Y. 2012).

Opinion

MEMORANDUM & ORDER

KATHERINE B. FORREST, District Judge:

Plaintiff APL Co. Pte. Ltd. (“APL”) brings this admiralty and maritime action, pursuant to 28 U.S.C. § 1333, against defendants Kemira Water Solutions, Inc. (“Kemira”) and Fairyland Envitech Co. Ltd. (“Fairyland”) for breach of contract, negligence, and contribution under the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (“CERCLA”), 42 U.S.C. §§ 9601, et seq, related to environmental clean-up costs. This case arises from two shipments of ferrous chloride crystal (“ferrous chloride”), which leaked as a result of improper packaging at some point between their departure from Taiwan and arrival in California. APL was the carrier for the cargo of ferrous chloride, Fairyland the shipper [364]*364and Kemira the consignee. APL and Kemira made cross-motions for summary-judgment as to liability on January 20, 2012.1 For the reasons set forth below, APL and Kemira’s motions are granted in part and denied in part.

BACKGROUND

The following facts are undisputed, unless otherwise noted.

On August 3, 2006, Kemira, a company that sells water treatment chemicals, and Fairyland, a Taiwanese chemical supplier, entered a Purchase Agreement, pursuant to which Kemira agreed to purchase ferrous chloride from Fairyland and Fairyland agreed to ship the chemical from Taiwan to California (the “Purchase Agreement”). (APL’s Response to Kemira’s Rule 56.1 Stmt. (“APL’s 56.1 Response”) ¶ 2; Gibson Decl. Ex. A at KWS000503.) The Purchase Agreement “confirm[ed] the product and price provisions of the sale of ferrous chloride crystal.” (Gibson Decl. Ex. A at KWS000503.) Schedule A of the Purchase Agreement set forth the “General Requirements” for packaging the ferrous chloride. (Id. at KWS000505.)

APL is an international steamship line that in October and November 2006 shipped the two shipments of ferrous chloride. At some point along the way, the ferrous chloride leaked as a result of improper packaging, causing extensive damage to APL’s ships. (Kemira’s Response to APL’s Rule 56.1 Stmt. (“Kemira’s 56.1 Response”) ¶ 3.) Ferrous chloride is a hazardous chemical classified as “Class 8: Corrosive” under the International Maritime Dangerous Goods Code, promulgated by the International Maritime Organization of the United Nations. (Id.)

These shipments were covered by two sea waybills — i.e., non-negotiable bills of lading — that APL issued to Fairyland and which were received via fax by Kemira. (APL’s 56.1 Response ¶ 3.) Among other things, the sea waybills contained the names of the shipper (Fairyland) and consignee (Kemira). (See e.g., Gibson Decl. Ex. B at FTS 0021.) In the bottom right hand corner of these sea waybills, appeared the following text:

The Shipper agrees, and the Consignee and every person purchasing this instrument for value, if negotiable, or otherwise having an interest in the Goods is advised that the receipt, custody, carriage and delivery of the Goods are subject to all the terms and conditions set forth and by [sic] incorporated by reference on this side and the reverse hereof, whether written, stamped or printed.

(See e.g., id.) The text is miniscule and the parties dispute whether it is legible. At oral argument, however, counsel for defendant agreed that he could read it.

Regardless, there is no evidence in the record that Kemira ever received the reverse side of the sea waybills. APL asserts that the “terms and conditions” referred to on the faxed sea waybills do appear on-their actual reverse sides (although they are not in the record before this Court), they are APL’s “standard shipment terms,” and they are available on plaintiffs website. It is APL’s “standard shipment terms,” which are titled “Bill of Lading Terms and Conditions,” (the “Terms and Conditions”) that plaintiff alleges have been breached by Kemira. Specifically, APL alleges that Kemira breached two clauses in the Terms and Conditions.

[365]*365Under the “Definitions” section, the Terms and Conditions state that a Merchant “shall be jointly and severally liable to the Carrier ... for the performance of the obligations of any of them under this Bill of Lading” (the “Merchant Clause”). (Donovan Decl. Ex. I at KWS000132.) “Merchant” is defined to include “the Shipper, Consignee, Receiver, Holder of the Bill of Lading, Owner of the cargo or Person entitled to the possession of the cargo or having a present or future interest in the Goods.” (Id.)

In the clause entitled “Dangerous, Hazardous or Noxious Goods,” the Terms and Conditions state, inter alia: “[wjhether or not the Merchant was aware of the nature of the Goods [which are or may become inflammable, explosive, corrosive, noxious, hazardous, dangerous or damaging] the Merchant shall indemnify the Carrier against all claims, losses, damages, liabilities or expenses arising in consequence of the Carriage of such Goods” (the “Dangerous Goods clause”). (Id. at KWS000139.) PROCEDURAL HISTORY

Prior to this case being transferred to this Court, the parties agreed that the most efficient way to proceed would be to first decide liability based on cross-motions for summary judgment and then determine what, if any, damages may be warranted. The motions were fully briefed on February 24, 2012, and the Court held oral argument on August 8, 2012.

DISCUSSION

I. Summary Judgment Standard

A court may not grant summary judgment unless all of the submissions taken together “show that there is no genuine issue as to any material fact and that the movant is entitled to judgment as a matter of law.” Fed.R.Civ.P. 56(c). The moving party bears the burden of demonstrating “the absence of a genuine issue of material fact.” Celotex Corp. v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). In making that determination, the court must “construe all evidence in the light most favorable to the nonmoving party, drawing all inferences and resolving all ambiguities in its favor.” Dickerson v. Napolitano, 604 F.3d 732, 740 (2d Cir.2010).

Once the moving party has asserted facts showing that the non-movant’s claims cannot be sustained, the opposing party must “set out specific facts showing a genuine issue for trial,” and cannot “rely merely on allegations or denials” contained in the pleadings. Fed.R.Civ.P. 56(e); see also Wright v. Goord, 554 F.3d 255, 266 (2d Cir.2009). “A party may not rely on mere speculation or conjecture as to the true nature of the facts to overcome a motion for summary judgment,” as “[m]ere conclusory allegations or denials cannot by themselves create a genuine issue of material fact where none would otherwise exist.” Hicks v. Baines,

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890 F. Supp. 2d 360, 2012 WL 3765043, 2012 U.S. Dist. LEXIS 124458, Counsel Stack Legal Research, https://law.counselstack.com/opinion/apl-co-pte-ltd-v-kemira-water-solutions-inc-nysd-2012.