Aslanidis v. United States Lines, Inc.

7 F.3d 1067
CourtCourt of Appeals for the Second Circuit
DecidedSeptember 27, 1993
DocketNos. 1405, 1677, Dockets 92-9265, 92-9263
StatusPublished
Cited by201 cases

This text of 7 F.3d 1067 (Aslanidis v. United States Lines, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Aslanidis v. United States Lines, Inc., 7 F.3d 1067 (2d Cir. 1993).

Opinion

CARDAMONE, Circuit Judge:

Emil Aslanidis appeals from twin October 20, 1992 judgments of the United States District Court for the Southern District of New York (Kram, J.), dismissing his claims against defendants in two related suits arising from a toxic fire that occurred aboard an American vessel sailing on the high seas. Aslanidis, a merchant seaman working on the vessel, was injured by the fumes. He alleges the district court wrongly granted summary judgment to the owner of the ship in one suit, and in favor of the manufacturer, packager, transporter and purchaser of the cargo that caught fire in the other.

With respect to the first cause of action, when the ship’s owner declared bankruptcy, plaintiff petitioned for relief from the automatic stay, wrongly thinking that time was on his side. But, in so doing, he became the clock-setter; so that when he later sued the owner of the ship, time had run out and his claim was barred by the statute of limitations. Time limitations similarly barred As-landis’ second suit. Although his intent to sue the manufacturer — and the other defendants that had charge of the flammable phosphorus — was properly conceived in the womb of time, notice of it to them was too long [1070]*1070delayed in delivery. Hence, we affirm both judgments.

BACKGROUND

A. The Phosphorus Fire

In 1985 Aslanidis was employed as a seaman aboard the S.S. American Rigel (RIGEL), a container vessel owned and operated by United States Lines, Inc. (U.S. Lines). In April of that year, the RIGEL commenced a scheduled three-month voyage from its home port in New York City to South Africa and then to South America before returning. Upon arrival in South Africa, the RIGEL loaded a sea container holding 76 steel drums of phosphorus, a highly flammable chemical element, which must be transported in a water blanket to keep it from coming into contact with the air. Phosphorus exposed to air ignites spontaneously.

The phosphorus on the RIGEL was manufactured by Samancor, Ltd. of South Africa; it had been sold to Brandéis Intsel Africa “free-on-board,” which company in turn sold the shipment to Brandéis Intsel Ltd., London (Brandéis London) “free-on-board.” Bran-déis London then sold the shipment to Bran-déis Intsel & Co. (Brandéis New York) “eost-insurance-freight (CIF) New York.” During these paper transactions, Samancor had kept the phosphorus drums in its South Africa plant stowed in a sea container supplied by U.S. Lines. When the paperwork was completed, the manufacturer arranged with Ren-nies Freight Services, Ltd. (Rennies) to carry the sea container from its factory to the Durban, South Africa docks for loading on the RIGEL.

On April 30, 1985 while the phosphorus shipment was en route to Durban, it was damaged in a motor vehicle accident. Upon learning of the accident, Samancor obtained a replacement sea container from U.S. Lines and contracted with South African Container Depots, Ltd. (SACD) to transfer all 76 drums of phosphorus from the damaged receptacle into the new one. Samancor instructed SACD that the phosphorus needed to be kept under water. The restowing was done carelessly, some of the nails that were hammered into supports within the sea container pierced four of the phosphorus drums and its surrounding water shield, causing the container’s liquid blanket to commence leaking.

At Samaneor’s direction, Rennies transported the new container to the port at Durban, where it was loaded on the RIGEL for transport to the United States. On May 22, 1985 while the merchant vessel was in the South Atlantic off the coast of Brazil, the water blanket deflated and phosphorus from the four damaged drums made contact with the air and self-ignited. The resulting fire was quickly extinguished by the ship’s crew, but toxic fumes emitted from the smoldering container had been released. Aslanidis alleges in his complaint that these fumes injured him and seven other RIGEL crew members.

Following the fire, the RIGEL was diverted to Salvadore, Brazil, where its cargo was off-loaded and examined. The 72 undamaged drums of phosphorus were restowed in another container and returned to the ship for its continuing voyage to New York; the four damaged drums were jettisoned at sea. On June 6, 1985 the RIGEL arrived at the Howland Hook Marine Terminal in Staten Island, New York, where the phosphorus-bearing container was stripped by personnel from the New York City Fire Department, U.S. Lines, and its insurers. An ensuing investigation found several of the drums to be leaking, but determined that the chemical material inside was sound. Nevertheless, Brandéis New York indicated it would not accept the shipment, and Samancor agreed to take back the damaged cargo and replace it with conforming goods.

B. Proceedings Below

1. Action Against U.S. Lines

After the May 1985 fire, plaintiff Aslanidis attempted to file suit against U.S. Lines but was prevented from doing so because on November 24, 1986 the owner of the RIGEL and its parent company sought bankruptcy protection in the Southern District of New York and were granted an automatic stay of all claims under 11 U.S.C. § 362 (1988). As a result, Aslanidis petitioned the Southern District Bankruptcy Court (Blaekshear, J.) pursuant to 11 U.S.C. § 108(c) (1988) for [1071]*1071limited relief from the stay. On November 27,1991 the bankruptcy court granted Aslan-idis such relief, permitting him to pursue the instant claim.

On January 24, 1992 — 58 days after the bankruptcy court’s action — Aslanidis commenced suit against U.S. Lines under general maritime law and the Jones Act, 46 U.S.C.App. § 688 (1988), in the Southern District of New York.' In his complaint As-lanidis alleged that U.S. Lines was negligent in its handling of the phosphorus cargo, breached the warranty of seaworthiness of the RIGEL, and violated its duty of maintenance and cure while its employee seaman was unfit for duty. U.S. Lines responded by moving for dismissal of the complaint under Fed.R.Civ.P. 12(b)(6), or in the alternative, for summary judgment under Fed.R.Civ.P. 56 because Aslanidis’ action was barred under the three-year statutes of limitations found in the Uniform Statute of Limitations for Maritime Torts, 46 U.S.C.App. § 763a (1988), and .the Jones Act. Aslanidis countered that these applicable time bars were “tolled” or suspended while U.S. Lines was protected by the automatic stay provision of the Bankruptcy Code.

In an order dated October 16, 1992 Judge Kram granted U.S. Lines’ motion for summary judgment. In so doing, she held the bankruptcy court’s stay did not toll the two maritime statutes of limitations. According to the district court, Aslanidis was required to commence his action within three years of the date of his alleged injury, or within 30 days of the lifting of the automatic stay under the Bankruptcy Code. Aslanidis’ January 24, 1992 complaint — filed over six years after the ship fire and 58 days after the lifting of the bankruptcy stay — was not timely under either measure and, accordingly, it granted the motion terminating Aslanidis’ action against U.S.

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Bluebook (online)
7 F.3d 1067, Counsel Stack Legal Research, https://law.counselstack.com/opinion/aslanidis-v-united-states-lines-inc-ca2-1993.