Cigna Ins. Co. of Puerto Rico v. M/V SKANDERBORG

897 F. Supp. 659, 1996 A.M.C. 600, 1995 U.S. Dist. LEXIS 14465, 1995 WL 573835
CourtDistrict Court, D. Puerto Rico
DecidedSeptember 27, 1995
DocketCiv. 94-2678(PG)
StatusPublished
Cited by1 cases

This text of 897 F. Supp. 659 (Cigna Ins. Co. of Puerto Rico v. M/V SKANDERBORG) is published on Counsel Stack Legal Research, covering District Court, D. Puerto Rico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cigna Ins. Co. of Puerto Rico v. M/V SKANDERBORG, 897 F. Supp. 659, 1996 A.M.C. 600, 1995 U.S. Dist. LEXIS 14465, 1995 WL 573835 (prd 1995).

Opinion

OPINION AND ORDER

PEREZ-GIMENEZ, District Judge.

This dispute arises from the shipment of 1,575 cartons containing nearly 19,000 one-half gallon tins of olive oil from Cádiz, Spain, to San Juan, Puerto Rico. Upon delivery, much of the shipment was found to be ruined by rust. For this damage, the Cigna Insurance Company of Puerto Rico paid $21,414.15 to its insured, the A. Cordero Badillo company, the Puerto Rican importer of the olive oil. Cigna now appears as plaintiff, subrogated to all the rights and claims of Cordero Badillo.

The olive oil was shipped to Puerto Rico aboard the MTV Skanderborg, a vessel owned and operated by the Nordana Lines AS. The unventilated container in which the olive oil was shipped was provided by Nordana to Aceites Carbonell, S.A, the Spanish shipper. Aceites Carbonell stuffed, sealed, and returned the container to Nordana. Nordana transported it to Puerto Rico. Upon opening the container, Cordero Badillo discovered a portion of the cargo damaged by rust. Plaintiff contends that the tins rusted because they were stored in an unventilated container.

Plaintiff has brought suit against the M/V Skanderborg, Nordana AS, Aceites Carbo-nell, and several unidentified insurance companies for alleged violations of the Carriage of Goods at Sea Act (COGSA), codified at 46 App.U.S.C. 1300, et seq. 1 (Though named in the complaint, it does not appear that any action has actually commenced against Aceites Carbonell.) COGSA establishes the minimum duties and rights of maritime carriers and shippers of cargo. 46 App.U.S.C. *661 §§ 1302-04. The complaint is properly before this Court pursuant to admiralty and federal question jurisdiction, 28 U.S.C. § 1331, 1333, and 46 App.U.S.C. § 1300. Venue is proper in this district pursuant to 28 U.S.C. § 1391. Both Nordana and Cigna have filed motions for summary judgment.

PARTIES’ LEGAL ARGUMENTS

Summary judgment is appropriate when “the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue of material fact and that the moving party is entitled to judgment as a matter of law.” Fed.R.Civ.P. 66(c).

Cigna makes two principle arguments. First, that it has met the prima facie requirements of 46 App.U.S.C. § 1303(4), without defendant proffering sufficient rebuttal, thus entitling it to judgment as a matter of law. Second, plaintiff contends that Nordana breached its duty of care by providing an unfit container for shipping the tins of olive oil. Cigna asserts that the cargo rusted because the container was unventilated, that defendants knew, or should have known, of the harm that an unventilated container could cause to the tins of olive oil, and that defendants failed to take the reasonable precaution of providing a ventilated container.

On its behalf, Nordana asserts the following: (1) that Plaintiff has not established a prima facie ease under COGSA, (2) even if plaintiff has made out a prima facie ease, damage resulted from one of the “excepted causes” listed in § 1304(2), thus alleviating Nordana of liability, and (3) that it had no duty to provide a “fit” container to the shipper, and that even if it did, the shipper contractually assumed this duty.

ANALYSIS AND CONCLUSIONS OF LAW

A prima facie case for recovery ■under COGSA is established by showing that the ocean carrier accepted goods described in a negotiable bill of lading as being in apparent good order and condition and subsequently failed to deliver them or delivered them in damaged condition. EAC Timberlane v. Pisces, Ltd., 745 F.2d 715, 719 (1st Cir.1984). Once a prima facie case has been established the burden of proof shifts to the carrier to show that the damage was not due to its negligence, or that the damage resulted from one of the “excepted causes” listed in § 1304(2). Id. at 719-20.

As a starting point, it is not clear that plaintiff has established a prima facie case. It is true that Nordana issued a bill of lading indicating that it had loaded aboard the M/V Skanderborg one package “said to contain 1575 cartons of olive oil.” But because the container was stuffed and sealed by Aceites Carbonell, Nordana never had the opportunity to inspect the cargo. Noting that the burden is on the shipper to establish the prima facie ease, several courts have excused the carrier from liability when it never had the opportunity to inspect the cargo, and damage was not clearly caused by an unfit vessel. As Judge Friendly once observed:

Although a clean bill of lading normally constitutes prima facie evidence that the cargo was in good condition a the time of shipment, courts have long recognized that it does not have this probative force where, as here, the shipper seeks to recover damages to goods shipped in packages that would have prevented the carrier from observing the damaged condition had it existed when the goods were loaded.

Caemint Food, Inc. v. Brasileiro, 647 F.2d 347, 352 (2d Cir.1981). See also Greenburg v. Puerto Rico Maritime Shipping Authority, 835 F.2d 932, 934 (1st Cir.1987) (citing Caemint Food).

Further, as Cigna itself concedes, the damage resulted from an excepted cause: “insufficiency of packing.” 46 App.U.S.C. § 1304(2)(n). Although Cigna does not squarely address the “excepted cause” aspect of Nordana’s defense, it appears to argue that § 1304(2)(n) should not apply because Nordana provided the container. Why this should matter, however, is not entirely clear. Plaintiff appears to argue the following: Carriers have a duty to provide a seaworthy vessel. 46 App.U.S.C. § 1301(l)(a). From this uncontestable rule of law plaintiff asserts that, because courts have held that a container is “functionally part of the ship,” Leather’s *662 Best, Inc. v. S.S. Mormaclynx, 451 F.2d 800 (2d Cir.1971), it follows that the carrier’s duty to provide a seaworthy ship extends to ensuring that the container it provides is fit for its intended use.

However, Leather’s Best and the other cited cases are inapplicable. These cases hold that a container is “functionally part of the ship” only for the purposes of 46 App.U.S.C. § 1304(5).

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Bluebook (online)
897 F. Supp. 659, 1996 A.M.C. 600, 1995 U.S. Dist. LEXIS 14465, 1995 WL 573835, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cigna-ins-co-of-puerto-rico-v-mv-skanderborg-prd-1995.