CMA-CGM (CANADA), Inc. v. World Shippers Consultants, Ltd.

921 F. Supp. 2d 1, 2013 WL 442656
CourtDistrict Court, E.D. New York
DecidedJanuary 23, 2013
DocketNo. CV 10-1514
StatusPublished
Cited by6 cases

This text of 921 F. Supp. 2d 1 (CMA-CGM (CANADA), Inc. v. World Shippers Consultants, Ltd.) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
CMA-CGM (CANADA), Inc. v. World Shippers Consultants, Ltd., 921 F. Supp. 2d 1, 2013 WL 442656 (E.D.N.Y. 2013).

Opinion

[2]*2 MEMORANDUM AND ORDER

WEXLER, District Judge.

This is a case commenced by Plaintiff to recover shipping charges from Defendant. Plaintiff claims that the clear terms of the parties’ agreement as well as their course of dealing require payment. Defendant claims that as an agent for a disclosed principal, it is not required to make payment for the shipping and associated costs incurred. A non-jury trial was held on October 25, 2012. The parties have submitted proposed post-trial findings and conclusions. Upon consideration thereof and the proceedings herein, this constitutes the Court’s Findings of Fact and Conclusions of Law.

FINDINGS OF FACT

I.The Parties and the Industry

1. Plaintiff CMA-CGM (CANADA), Inc. (“CMA”) is a Canadian corporation that, at all relevant times, acted as the agent of companies known as CMA-CGM S.A. and Delmas.

2. CMA-CGM S.A. (“CMA S.A.”) is an ocean carrier engaged in the international transport of containerized cargo. Delmas is a brand of CMA S.A. that, at times relevant hereto, specialized in the transport of containerized cargo between North America to and from West Africa.

3. CMA, as an agent of both Delmas and CMA S.A. was at all relevant times, engaged in the business of providing and/or arranging for international ocean shipping and related work, materials and services.

4. Defendant World Shippers Consultants, Ltd. (‘World Shippers”) is a corporation located within this District. World Shippers provides services to entities in need of shipping services such as those provided by CMA.

5. The services provided by World Shippers include the booking of cargo container space on vessels such as those operated by CMA and its agent, Delmas.

6. The parties hereto are knowledgeable about the practices of the shipping industry and, prior to the transactions at issue in this matter, have conducted business amongst themselves involving payments of over $1 million.

7. It is the practice in the shipping industry for shippers or their agents, to secure container space in vessels in advance of the shipping date to ensure that such space will be available when needed.

8. Cargo space is secured by various forms of communication, including telephone and e-mail.

9. Among the entities that typically reserve space for future voyages are shippers who reserve space for themselves, and third parties who reserve space on behalf of shippers.

10. Those entities that reserve space on behalf of shippers are known, in the relevant industry, as “forwarders” or a “freight forwarders.” The court herein uses only the term “forwarder.”

11. In addition to booking space in a vessel, a forwarder might also handle documentation for the shipment on behalf of the shipper as well as various services related to the shipments.

12. In the context of the parties’ business relationship, World Shippers has acted as an agent for shippers and as a forwarder.

[3]*313. When space is reserved on vessels for future voyages, that space is confirmed by operators of vessels, such as CMA, in a document known as a “booking confirmation.”

14. It is customary in the cargo shipping business for forwarders such as World Shippers to request cargo space, and have that space confirmed in a booking confirmation that does not identify the shipper. Instead, the confirmation is issued only in the name of the forwarder.

15. In addition to the booking confirmation, the documents generally associated with the type of cargo shipment at issue here are the draft bill of lading, the final nonnegotiable bill of lading, and an invoice.

16. Generally, a shipper is identified in a booking confirmation only in those cases where the vessel operator, such as CMA, is dealing directly with the shipper and not with a forwarder. Where the operator books space on behalf of a forwarder the shipper is not identified until the bill of lading process begins.

II. The Bookings and Charges At Issue

17. During the time period of June through July of 2009, World Shippers arranged for cargo space in connection with 23 shipments.

18. The documents associated with each shipment are exhibits before the court. At trial, counsel directed the testimony of the two witnesses who testified (one witness for each party) to the documents associated with one of the shipments. Upon review of all exhibits and the trial testimony, the court finds that the documents discussed at trial with respect to that shipment are representative of the documents associated with all 23 shipments at issue.

19. The documents associated with each of the 23 shipments at issue here are: (1) the booking confirmation; (2) the draft bill of lading; (3) the final non-negotiable bill of lading, and (4) the invoice.

20. The court refers herein to the draft and final bills of lading as the “Bill of Lading.”

A. The Booking Confirmations

21. The first document discussed at trial that was associated with each shipment is the booking confirmation. Each request for shipment is evidenced by the booking confirmation issued to World Shippers by Delmas.

22. The Delmas logo appears on each booking confirmation. Plaintiff CMA’s corporate name (CMA-CGM (Canada)), appears directly below the Delmas logo on each booking confirmation, along with Plaintiffs Montreal address. Each booking confirmation bears a booking number.

23. No booking confirmation associated with the 23 shipments at issue lists a shipper. Instead, each reflects the fact that space was reserved by World Shippers on behalf of an undisclosed shipper. Thus, the only entity with which Plaintiff dealt in booking space on its vessels was Defendant World Shippers.

24. The booking confirmations were agreed to between Delmas, as a brand of CMA, and World Shippers.

25. The booking confirmations each bear a section entitled “clauses.”

[4]*426. Clause number 17 of each booking confirmation states that “all moves referenced in the booking confirmation are subject to the terms and conditions of the carrier-issued long form bill of lading.” Clause 17 states further that the customer named in the booking confirmation “hereby acknowledges and agrees to all the terms and conditions of the carriers issued long form bill of lading.”

27. Clause 21 of each booking confirmation states that the booking is “subject to CMA terms and conditions.”

28. The court finds that the “terms and conditions” referred to in clauses 17 and 21 are the same terms and conditions.

29. Neither the long form bill of lading, nor its terms and conditions are attached to the booking confirmation. Instead, the booking confirmation refers to the availability of the long form bill of lading at any CMA agency, or at a website address (set forth in the booking confirmation) where the complete bill of lading and all terms and conditions can be viewed.

B. The Bills of Lading

30.

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Bluebook (online)
921 F. Supp. 2d 1, 2013 WL 442656, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cma-cgm-canada-inc-v-world-shippers-consultants-ltd-nyed-2013.