APL Co. Pte. Ltd. v. UK Aerosols Ltd.

582 F.3d 947, 2009 WL 2988511
CourtCourt of Appeals for the Ninth Circuit
DecidedSeptember 21, 2009
Docket07-16739, 08-15078
StatusPublished
Cited by19 cases

This text of 582 F.3d 947 (APL Co. Pte. Ltd. v. UK Aerosols Ltd.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit 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. UK Aerosols Ltd., 582 F.3d 947, 2009 WL 2988511 (9th Cir. 2009).

Opinion

582 F.3d 947 (2009)

APL CO. PTE. LTD., Plaintiff-Appellee,
v.
UK AEROSOLS LTD., Defendant, *948
Valley Forge Insurance Company, Defendant-intervenor, and
U.G. CO., Inc., dba Universal Grocers Co.; Kamdar Global LLC, Defendants-Appellants.
APL Co. Pte. Ltd., Plaintiff-Appellant,
v.
UK Aerosols Ltd.; U.G. CO., Inc., dba Universal Grocers Co.; Kamdar Global LLC, Defendants-Appellees,
Valley Forge Insurance Company, Defendant-intervenor-Appellee.

Nos. 07-16739, 08-15078.

United States Court of Appeals, Ninth Circuit.

Argued and Submitted March 12, 2009.
Filed September 21, 2009.

*949 Marilyn Raia and Norman J. Ronneberg Jr., Bullivant Houser Bailey PC, San Francisco, CA, for Valley Forge Insurance Company, defendant-intervenor for U.G. Co. Inc. and Kamdar Global LLC.

Charles S. Donovan, Amy B. Norris, Brenna E. Moorhead and Timothy C. Perry, Sheppard, Mullin, Richter & Hampton LLP, San Francisco, CA, for APL Co. Pte. Ltd.

*950 Before J. CLIFFORD WALLACE, SIDNEY R. THOMAS and JAY S. BYBEE, Circuit Judges.

WALLACE, Senior Circuit Judge:

U.G. Co., Inc. (U.G.) and Kamdar Global LLC (Kamdar) appeal from the district court's summary judgment in favor of APL Co. Pte. Ltd. (APL), based on the district court's holding that U.G. and Kamdar have indemnification obligations to APL under the parties' bill of lading. APL appeals from the district court's denial of its motion for attorneys' fees. The district court had jurisdiction pursuant to 28 U.S.C. § 1333. We have jurisdiction over these timely filed appeals pursuant to 28 U.S.C. § 1291. We affirm the summary judgment of the district court. We reverse the district court's denial of attorneys' fees and remand this claim to the district court.

I.

In June 2003, U.G., a California company, sent purchase orders for 717,120 cans of hair spray and 59,760 cartons of hair mousse to Kamdar, an Illinois limited liability company. Kamdar, acting as purchasing agent, forwarded the purchase orders to UK Aerosols Ltd. (UK Aerosols), an English company, and purchased the goods from UK Aerosols. Kamdar authorized UK Aerosols to ship the goods on behalf of U.G. and Kamdar. Accordingly, UK Aerosols requested that APL, a Singapore corporation, ship the cargo containing the hair mousse and hair spray from Istanbul, Turkey to Long Beach, California.

APL issued a bill of lading governing the terms of carriage. On the bill of lading, APL is listed as the carrier, UK Aerosols as the shipper, Kamdar as the "notify party," and U.G. as the "also notify party." UK Aerosols, U.G. and Kamdar each accepted and endorsed the bill of lading. The bill of lading contains several provisions at issue in this case. Clause 9 provides that the "merchant" must indemnify APL for any losses caused by the manner in which a container had been packed by a party other than APL or the unsuitability of the goods for carriage. "Merchant," as defined in the bill of lading, includes 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 for carriage. Clause 19 provides that express written consent from APL is required for the carriage of hazardous goods, and regardless of whether the "merchant" is aware of the hazardous nature of the goods, it must indemnify APL for any losses arising as a consequence of the carriage of such goods. Clause 28(i) of the bill of lading specifies that "[i]nsofar as anything has not been dealt with by the terms and conditions of the bill of lading, Singapore law shall apply."

When the goods arrived in Long Beach, California, APL discovered that one of the containers in the shipment was "leaking, dangerous and hazardous." APL spent approximately $700,000 in assessing, cleaning up, removing, and ultimately disposing of the shipment.

APL subsequently filed a complaint against UK Aerosols, Kamdar, U.G., and Imp-Ex Solutions, LLC (a party later dismissed from the action), asserting negligence claims and contract claims, alleging that the defendants had breached their indemnification obligations under the bill of lading. UK Aerosols failed to answer the complaint, and the district court entered default judgment against it. U.G. and Kamdar moved for summary judgment, arguing that certain provisions of *951 the bill of lading were void because they violated provisions of the Carriage of Goods by Sea Act (COGSA). The district court held that Clause 9 of the bill of lading would only violate COGSA to the extent that it imposed liability without fault on a party that was a "shipper," and because neither party had alleged that U.G. and Kamdar were "shippers," Clause 9 was not necessarily void. The district court also held that APL might not be able to prevail under Clause 19 if it was on notice of the hazardous nature of the goods, but that the issue of whether it had notice was a factual issue in dispute. Consequently, the district court denied summary judgment to U.G. and Kamdar on the contract claims. It did, however, enter summary judgment for U.G. and Kamdar on the negligence claims.

Subsequently, U.G. and Kamdar filed a second motion for summary judgment, and APL filed its first motion for summary judgment. U.G. and Kamdar argued that they were "shippers," and therefore, certain provisions of the bill of lading were void as applied to them. APL, on the other hand, argued that U.G. and Kamdar were contractually liable under the bill of lading for the negligence of UK Aerosols, even if they were not negligent. The district court denied U.G. and Kamdar's motion and granted APL's motion, holding that U.G. and Kamdar were not "shippers," and thus not entitled to the protection of COGSA's rule against liability without fault. The district court held that U.G. and Kamdar were contractually liable under Clauses 9 and 19 of the bill of lading. The district court entered judgment against U.G. and Kamdar in the amount of $733,963.10.

Following the entry of judgment, APL filed a motion for attorneys' fees. APL argued that the bill of lading provides that the attorneys' fees issue is governed by Singapore law, and therefore, the prevailing party is entitled to attorneys' fees. The district court denied the motion. It held that COGSA would control the dispute over attorneys' fees, that federal law would apply to the issue, and therefore that no attorneys' fees would be awarded. It also held that APL did not meet its obligation under Federal Rule of Civil Procedure 44.1 to give reasonable notice that it would raise the issue concerning Singapore law.

Subsequently, U.G. and Kamdar filed an appeal from the district court's summary judgment in favor of APL, and APL filed an appeal from the district court's denial of attorneys' fees.

We review a district court's summary judgment de novo. KP Permanent Make-Up, Inc. v. Lasting Impression I, Inc., 408 F.3d 596, 602 (9th Cir.2005). Questions of statutory construction are reviewed de novo. All Pac. Trading, Inc. v. Vessel M/V Hanjin Yosu, 7 F.3d 1427, 1433 (9th Cir.1993). Contract interpretation is also reviewed de novo. Yang Ming Marine Transp.

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582 F.3d 947, 2009 WL 2988511, Counsel Stack Legal Research, https://law.counselstack.com/opinion/apl-co-pte-ltd-v-uk-aerosols-ltd-ca9-2009.