G.F. Company v. Pan Ocean Shipping Co., Ltd., Aka, Panobulk America, Inc., and Pan Queen, Its Engines, Tackle, Apparel and Furniture Banque Indosuez

23 F.3d 1498, 94 Daily Journal DAR 6132, 28 Fed. R. Serv. 3d 1020, 1994 A.M.C. 1739, 94 Cal. Daily Op. Serv. 3216, 1994 U.S. App. LEXIS 10040, 1994 WL 164659
CourtCourt of Appeals for the Ninth Circuit
DecidedMay 5, 1994
Docket92-56615
StatusPublished
Cited by39 cases

This text of 23 F.3d 1498 (G.F. Company v. Pan Ocean Shipping Co., Ltd., Aka, Panobulk America, Inc., and Pan Queen, Its Engines, Tackle, Apparel and Furniture Banque Indosuez) 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
G.F. Company v. Pan Ocean Shipping Co., Ltd., Aka, Panobulk America, Inc., and Pan Queen, Its Engines, Tackle, Apparel and Furniture Banque Indosuez, 23 F.3d 1498, 94 Daily Journal DAR 6132, 28 Fed. R. Serv. 3d 1020, 1994 A.M.C. 1739, 94 Cal. Daily Op. Serv. 3216, 1994 U.S. App. LEXIS 10040, 1994 WL 164659 (9th Cir. 1994).

Opinion

Opinion by Judge HALL.

CYNTHIA HOLCOMB HALL, Circuit Judge:

Defendant Pan Ocean Shipping Company appeals the district court’s summary judgment for plaintiff G.F. Company in an action under the Carriage of Goods by Sea Act for damages to plywood that Pan Ocean transported from the Far East to the United States. We conclude the district court erred *1500 by invalidating the disclaimers on Pan Ocean’s bills of lading and, accordingly, we reverse.

I.

In 1988, G.F. Company purchased a cargo of wooden doorskins from Pyramid Trading Company, a Taiwanese supplier, and arranged for shipment from the port at Kaohsiung via the MTV Pan Queen, a vessel owned and operated by Pan Ocean Shipping Company. Upon receiving the doorskins from Pyramid, Pan Ocean issued bills of lading for the cargo. The bills of lading, which provided that the goods were “in apparent good order and condition unless otherwise indicated,” contained the following disclaimer (the “Wood Clause”):

THE TERM APPARENT GOOD ORDER AND CONDITION WHEN USED IN THIS BILL OF LADING WITH REFERENCE TO IRON, STEEL OR METAL PRODUCTS OR WOOD PRODUCTS DOES NOT MEAN THAT THE GOODS, WHEN RECEIVED, WERE FREE OF VISIBLE RUST OR MOISTURE STAINING, CHAFING AND/OR BREAKAGE. IF THE SHIPPER SO REQUESTS, A SUBSTITUTE BILL OF LADING WILL BE ISSUED OMITTING THE ABOVE DEFINITION AND SETTING FORTH ANY NOTATIONS AS TO RUST OR MOISTURE STAINING, CHAFING AND/OR BREAKAGE WHICH MAY APPEAR ON THE MATES, OR TALLY CLERKS’ RECEIPTS.

After the Pan Queen set sail and discharged its cargo in Charleston and New Orleans, G.F. discovered that the doorskins had significant physical damage. G.F. submitted timely claims for the loss to Panobulk America, Inc., Pan Ocean’s claims agent, but was unable to settle with the carrier. Accordingly, G.F. filed suit in district court on December 27,1990, three days before expiration of the limitations period. 1 In its complaint, G.F. named five entities (Panobulk, the Pan Queen, Banque Indosuez, and Does 1 and 2) but failed to include Pan Ocean.

After receiving the complaint, Panobulk filed an answer in which it raised as an affirmative defense the fact “[t]hat Panobulk is, and at all material times herein was[,] an agent of a disclosed principal or principals, and is therefore not liable to Plaintiff for its alleged loss.” G.F. nevertheless moved for summary judgment against Panobulk, which responded by demonstrating that Pan Ocean owned the Pan Queen and that, as a result, Panobulk was not a proper defendant. Finally realizing its mistake, G.F. filed an ex parte motion to amend the complaint “to bring in Pan Ocean Shipping Co., Ltd., as a new defendant” pursuant to Federal Rule of Civil Procedure 15(c). After an expedited hearing, the district court granted the motion, dismissed all other defendants, and postponed consideration of G.F.’s summary judgment motion, which the court “deemed to be directed at Pan Ocean.”

Ultimately, the court granted summary judgment in favor of G.F., holding that the Wood Clause was invalid and that, as a result, Pan Ocean was estopped from asserting that the doorskins were damaged prior to receipt from Pyramid. See G.F. Co. v. Pan Ocean Shipping Co., 795 F.Supp. 1001 (C.D.Cal.1992). In so holding, the court followed Portland Fish Co. v. States S.S. Co., 510 F.2d 628 (9th Cir.1974) (holding that a carrier is estopped from asserting that a shipper delivered a lesser weight of cargo than that listed on the bill of lading), and distinguished Tokio Marine & Fire Ins. Co. v. Retla S.S. Co., 426 F.2d 1372 (9th Cir.1970) (holding that a disclaimer in the bill of lading permits a carrier to establish that the shipper had delivered damaged cargo).

Pan Ocean filed a timely appeal, contending that the district court erred by (1) permitting G.F. to amend its complaint after the statute of limitations had expired and (2) invalidating the Wood Clause. We conclude the court properly allowed G.F. to add Pan Ocean as a defendant but erred by not fol *1501 lowing Tokio Marine and upholding the Wood Clause.

II.

Federal Rule of Civil Procedure 15(c) “is the only vehicle through which a plaintiff may amend his complaint, after a statute of limitation period has run, to accurately name a defendant who was not correctly named in the pleading before the limitation period had run.” Korn v. Royal Caribbean Cruise Line, Inc., 724 F.2d 1397, 1399 (9th Cir.1984). Generally a routine matter, our application of Rule 15(c) to this case is complicated by an amendment to the rule that occurred between the time G.F. filed its complaint (in December 1990) and the time the district court granted the motion to amend (in January 1992).

Old Rule 15(c), in effect for most of the district court proceedings, provided in relevant part:

An amendment changing the party against whom a claim is asserted relates back if ..., within the period provided by law for commencing the action against the party to be brought in by amendment that party (1) has received such notice of the institution of the action that the party will not be prejudiced in maintaining his defense on the merits, and (2) knew or should have known that, but for a mistake concerning the identity of the proper party, the action would have been brought against the party.

Fed.R.Civ. p. 15(c) (effective until Dec. 1, 1991) (emphasis added). The old rule therefore forbade party amendments unless the party to be added had notice of the action prior to the date on which the statute of limitations would have expired. E.g., Schiavone v. Fortune, 477 U.S. 21, 29, 106 S.Ct. 2379, 2384, 91 L.Ed.2d 18 (1986). As such, the rule spawned nonsensical results:

[Old] Rule 15(c) created an anomaly. A plaintiff who filed a timely complaint has 120 days to serve the defendant with process. So a person properly named in . the complaint might not know until four months after the running of the period of limitations that he was a defendant. But if the plaintiff mistook the defendant’s name, correction after the period of limitations would not relate back, and the suit would be untimely, even though the plaintiff served the proper person before the 120 days were up. A defendant served 10 days after the period of limitations would prevail if the original complaint contained a misnomer, while a defendant in the dark for 120 days could not plead the statute of limitations if the complaint identified him.

Diaz v. Shallbetter,

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23 F.3d 1498, 94 Daily Journal DAR 6132, 28 Fed. R. Serv. 3d 1020, 1994 A.M.C. 1739, 94 Cal. Daily Op. Serv. 3216, 1994 U.S. App. LEXIS 10040, 1994 WL 164659, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gf-company-v-pan-ocean-shipping-co-ltd-aka-panobulk-america-inc-ca9-1994.