Industria Nacional Del Papel, CA. v. M/V "Albert F"

730 F.2d 622
Court of Appeals for the Eleventh Circuit·Decided April 20, 1984·No. No. 82-5865·Published·Cited by 11 cases

Opinion

HATCHETT, Circuit Judge:

In this action, we must determine whether a vessel may be held liable in rem for non-delivery of its cargo described in a clean on board bill of lading. We affirm the district court which held the vessel liable in rem because it was estopped from impeaching the bill of lading.

On January 9, 1979, the appellee, Industria Nacional Del Papel (Induspapel), ordered 1,500 metric tons of soft wood kraft pulp from Sanca Steel Corporation (Sanca), costing $569,790. In February, 1979, the cargo was loaded aboard the appellant vessel, the M/V ALBERT F, in southern Florida, and the vessel sailed for the Dominican Republic. On the same date, Induspapel paid Sanca.

The M/V ALBERT F arrived in Port Haina, Dominican Republic, on February 19, 1979, without the cargo specified in the bill of lading. Instead, it outturned 505 bales of wastepaper. Induspapel received practically worthless cargo, and sued the vessel and its claimant owner, Fairwind Container Express (Fairwind) to recover the amount it paid.

Claiming to be acting on behalf of Induspapel, Sanca originally arrested the M/V “ALBERT F.” Subsequently, the vessel was released upon Fairwind’s posting of $344,500 as security, and Induspapel was substituted for Sanca as the proper plaintiff. The district court ruled for Induspapel holding that the vessel was estopped from impeaching the clean bill of lading, and therefore, was liable in rem for the non-delivery of the cargo specified in the bill of lading. The M/V ALBERT F contends the district court erred in holding that it was estopped from impeaching the bill of lading and in finding it liable in rem. Induspapel cross-appeals claiming that the district court erred in reducing Induspapel’s prejudgment interest award and in denying it an increase in the amount of security posted by Fairwind.

[624]*624A. Estoppel

The Pomerene Act, 49 U.S.C.A. § 81-124 (West 1951), applies to all “[b]ills of lading issued by any common carrier for the transportation of goods ... from a place in a State to a place in a foreign country ....” 49 U.S.C.A. § 81. The Pomerene Act fails to define “carrier,” but the Carriage of Goods By Sea Act (COGSA), 46 U.S.C.A. § 1300-1315 (West 1975), defines “carrier” as, “the owner or the charterer who enters into a contract of carriage with a shipper.” 46 U.S.C.A. § 1301 (West 1975). “Since COGSA was enacted against the backdrop of the Pomerene Act,” we will utilize COGSA’s definition of “carrier” to determine whether the M/V ALBERT F is a “carrier” within the meaning of the Pomerene Act. Portland Fish Co. v. States Steamship Co., 510 F.2d 628, 631 (9th Cir.1974).

The Fifth Circuit has held that a vessel is a “carrier” as defined in section 1301 of COGSA where (a) the ship transported and discharged cargo; (b) the bill of lading was issued for the master; and (c) no contractual relationship existed absolving the ship and its owner from liability for the cargo. Compagnie De Navigation, Etc. v. Mondial United Corp., 316 F.2d 163, 172-73 (5th Cir.1963). These factual circumstances exist in this case, and the M/V ALBERT F is a “carrier” within the meaning of COGSA and the Pomerene Act. Since the vessel was a common carrier transporting cargo from the United States to a foreign country, the Pomerene Act applies to this case. 49 U.S.C.A. § 81.

Section 22 of the Pomerene Act provides that a carrier issuing a bill of lading will be liable “[to] the holder of an order bill, who has given value in good faith, relying upon the description therein of the goods, ... for damages caused by the nonreceipt by the carrier of all or part of the goods upon or prior to the date therein shown, or their failure to correspond to their description thereof in the bill at the time of its issue.” 49 U.S.C.A. § 102 (West 1951). This provision codified the estoppel principal which held “carriers liable to consignees and good faith assignees for value for misrepresentations in their bill of lading.” Elgie & Co. v. S.S. “S.A. Nederburg, ” 599 F.2d 1177, 1179 (2d Cir.1979), cert. denied sub nom., South African Marine Corp., Ltd. v. Elgie and Co., 444 U.S. 1072, 100 S.Ct. 1016, 62 L.Ed.2d 753 (1980).

Title 49 U.S.C.A. § 102 holds the carrier liable for goods receipted for by him but not actually received. Elgie, 599 F.2d at 1179; Strohmeyer & Arpe Co. v. American Line S.S. Corp., 97 F.2d 360, 362 (2d Cir.1938). The M/V ALBERT F received certain goods and issued a bill of lading describing 854 tons of soft wood kraft pulp, but the goods received did not conform to the goods described in the bill of lading.1 The vessel, therefore, is liable for the non-delivery of the goods pursuant to 49 U.S.C.A. § 102. See Elgie, 599 F.2d 1177.2

The M/V ALBERT F contends, however, that the exculpatory provision of the Pomerene Act, 49 U.S.C.A. § 101 (West 1951), exempts it from liability.3 The vessel claims that certain words contained in the [625]*625bill of lading free them from liability.4 The bill of lading declares that “particulars [are] furnished by shipper;” the bill also states

the shipper, consignee and owner of the goods and the holder of this bill of lading agree to be bound by all the stipulations, exceptions, and conditions stated herein whether written, printed, stamped, or incorporated on the front or reverse side hereof, as fully as if they were all signed by such shipper, consignee, owner, or holder.

These statements are insufficient to escape liability under 49 U.S.C.A. § 101. The words “particulars furnished by shipper” fail to relieve the carrier of liability under COGSA, and therefore, they do not exempt the M/V ALBERT F from liability under the Pomerene Act. Spanish American Skin Co. v. M.S. Ferngulf, 143 F.Supp. 345, 349 (S.D.N.Y.1956), aff'd, 242 F.2d 551 (2d Cir.1957); George F. Pettinos, Inc. v. American Export Lines, Inc., 68 F.Supp. 759, 764 (E.D.Pa.1946), aff'd, 159 F.2d 247 (3d Cir.1947). Since COGSA and the Pomerene Act protect the holder in due course from misleading bills of lading, statements insufficient to avoid liability under COGSA should not be permitted to avoid liability under the Pomerene Act. Moreover, the words “particulars furnished by shipper” fail to indicate that the shipper loaded the cargo, because COGSA presumes the shipper will furnish the particulars placed in the bill of lading by the carrier. 46 U.S.C.A. § 1303(3) (West 1975).

The preprinted paragraph in the bill of lading also fails to satisfy the standard in 49 U.S.C.A. § 101.

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Industria Nacional Del Papel, CA. v. M/V "Albert F", 730 F.2d 622 (11th Cir. 1984).

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