Continental Grain Co. v. Puerto Rico Maritime Shipping Authority

755 F. Supp. 506, 1991 U.S. Dist. LEXIS 1019, 1991 WL 8866
CourtDistrict Court, D. Puerto Rico
DecidedJanuary 11, 1991
DocketCiv. No. 88-0001 GG
StatusPublished
Cited by2 cases

This text of 755 F. Supp. 506 (Continental Grain Co. v. Puerto Rico Maritime Shipping Authority) 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
Continental Grain Co. v. Puerto Rico Maritime Shipping Authority, 755 F. Supp. 506, 1991 U.S. Dist. LEXIS 1019, 1991 WL 8866 (prd 1991).

Opinion

OPINION

GIERBOLINI, District Judge.

I. INTRODUCTION

On January 14, 1987, the M/V ALBAT-ROS (the “ALBATROS”) encountered rough weather twenty miles off the island of Dominique. Due to winds of thirty to forty knots and choppy seas, the merchandise in the cargo hold of the ALBATROS which had been improperly stowed shifted to port, forcing the vessel to take a list to port which increased until the crew abandoned it, and the ALBATROS capsized and sank. Continental Grain Company (“Continental”), the charterer and owner of the lost merchandise, Molinos Nacionales, Inc. (“Molinos”)1, the sellers and stevedores, and Eagle Star Insurance, the insurer of the cargo, brought suit against the owners of the ALBATROS, the Government of Grenada and the Grenada Marketing Na[508]*508tional Import Board (referred herein jointly as the “Import Board”).2

Defendants counterclaimed for the value of the vessel3 asserting claims for breach of the charter party, breach of the stevedore’s warranty of workmanlike service and negligence. Jurisdiction is predicated on 28 U.S.C. § 1333(1).

Both plaintiffs and defendants moved for summary judgment. The case was submitted to the United States Magistrate for Report and Recommendation, who on April 24, 1990, recommended the entry of summary judgment in favor of defendants. Plaintiffs filed a timely opposition to the Magistrate’s Report and Recommendation.

II. SUMMARY JUDGMENT

In determining whether summary judgment is appropriate, the court must view the record in the light most favorable to the party opposing the motion, and indulge all inferences favorable to that party. Celotex Corp. v. Catrett, 477 U.S. 317, 324-25, 106 S.Ct. 2548, 2553, 91 L.Ed.2d 265 (1986); Santiago Hodge v. Parke Davis & Co., 909 F.2d 628, 633-34 (1st Cir.1990). Summary judgment may be granted only “if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.” Fed.R. Civ.P. 56(c); Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986); Celotex v. Catrett, 477 U.S. 317, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986); General Office Products v. A.M. Capen’s Sons, Inc., 780 F.2d 1077 (1st Cir.1986).

Guided by this standard, and after an extensive review of the depositions, affidavits, exhibits, memoranda and briefs submitted by both parties, we find that summary judgment in favor of defendants is warranted.

III. DISCUSSION

A. THE VOYAGE

On December 1986, Continental entered into a voyage charter contract with the Import Board to transport two loads of grain in bulk from Guánica, Puerto Rico to the islands of Guadaloupe and Martinique. The ALBATROS made three voyages to and from Guánica and Guadaloupe and Martinique under the charter contract. On the fourth and final voyage, Continental directed the ALBATROS to Guánica for the loading of cargo which was to be performed by its subsidiary and the seller of the cargo, Molinos. The delivery basis under the purchase contract between Continental and Molinos for the cargo was “F.O.B. Guánica Stowed and Trimmed” and the delivery basis on the sales contract between Continental and the buyer of the cargo was “Delivery By Vessel C.I.F. Martinique Free Out.”

The cargo on the fourth voyage consisted of 245.13 metric tons of whole u.s. corn in bulk, 80.36 metric tons of soy bean meal in bulk, and 998, twenty-five pound bags of layer and broiler premix. Under the terms of sale “F.O.B. Guánica Stowed and Trimmed”, Molinos provided all the loading equipment, personnel and supervision for the loading operation. To assist in the loading operation, Molinos hired Luis Ayala Colón Sucesores, Inc. (“Ayala”), a Ponce stevedoring contractor, who planned and actually loaded the ALBATROS with 18 stevedores.4

The cargo aboard the ALBATROS was stowed in the same manner as it had been stowed on the previous three voyages. At the completion of the loading, stowing and trimming operation, the cargo hold of the [509]*509ALBATROS was left partially filled. As’ a receipt for the grain cargo, Captain McLawrence signed a Puerto Rico Maritime Shipping Authority (“PRMSA”) short form of bill of lading.5

B. THE VOYAGE CHARTER AGREEMENT

Maritime law divides contracts for the transportation of goods into two categories: common and private carriage. T.J. Schoenbaum, Admiralty and Maritime Law § 9-6, at 292 (1987). The agreement between Continental and the Import Board for the chartering of the ALBAT-ROS was a private carriage agreement.6 See 2A Benedict on Admiralty § 22, at 3-2 (7th ed. 1985) (“Where one shipper’s cargo takes up the full reach of the ship, it will be presumed ... that the ship is a private carrier ... ”). The difference between common and private carriage is significant. In common carrier contracts, the shipowner insures the transportation of the goods until delivery. In private carriage, however, the shipowner is “only liable for loss or damage to the extent this was proximately caused by a breach of an obligation contained in a contract of carriage.” T.J. Schoenbaum, supra, § 9-6, at 293. The private carriage agreement in this case had no express clause allocating the risk for loss or damage to either the cargo or the vessel.

The rights and obligations under a private carriage agreement are determined by the contract between the parties which may be in the form of a bill of lading or a written or oral agreement. In private carriage, the parties may agree to govern their agreement by the Carriage of Goods by Sea Act (“COGSA”)7 or the Harter Act.8 See Larsen v. A.C. Carpenter, Inc., 620 F.Supp. 1084, 1107-1111 (E.D.N.Y.1985) (charter agreement not the bill of lading is contract and its terms governs legal relationship, not COGSA); Sucrest Corp. v. M/V JENNIFER, 455 F.Supp. 371, 380 (N.D.Maine 1981) (“[c]harter party governs rights and liabilities of the parties. COGSA, of course, would apply if the bill of lading served as the contract for the carriage of the [goods]”); see also T.J. Schoenbaum, supra, ' § 10-7, at 392 (“[COGSA] and other bills of lading statutes normally do not apply to charter parties, although COGSA may apply by contract through a Clause Paramount, or even by operation of law if the parties specify that the bill of lading should govern their relations”).

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755 F. Supp. 506, 1991 U.S. Dist. LEXIS 1019, 1991 WL 8866, Counsel Stack Legal Research, https://law.counselstack.com/opinion/continental-grain-co-v-puerto-rico-maritime-shipping-authority-prd-1991.