International Fire & Marine Insurance v. Silver Star Shipping America, Inc.

951 F. Supp. 913, 1997 A.M.C. 1691, 97 Daily Journal DAR 4656, 1997 U.S. Dist. LEXIS 601, 1997 WL 28667
CourtDistrict Court, C.D. California
DecidedJanuary 22, 1997
DocketNo. CV 96-3633 WJR (JRx)
StatusPublished
Cited by1 cases

This text of 951 F. Supp. 913 (International Fire & Marine Insurance v. Silver Star Shipping America, Inc.) is published on Counsel Stack Legal Research, covering District Court, C.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
International Fire & Marine Insurance v. Silver Star Shipping America, Inc., 951 F. Supp. 913, 1997 A.M.C. 1691, 97 Daily Journal DAR 4656, 1997 U.S. Dist. LEXIS 601, 1997 WL 28667 (C.D. Cal. 1997).

Opinion

ORDER RE: DEFENDANT SILVER STAR’S SUMMARY JUDGMENT MOTION.

REA, District Judge.

Defendant’s motion for summary judgment was filed on October 10, 1996, and oral argument was heard on November 4,1996. After having considered the oral argument, reviewed the papers submitted in support of and in opposition to the foregoing motion, the file in this case, and the applicable authorities, the Court rules as follows.

Defendant’s motion for summary judgment is GRANTED, and summary judgment is thus entered in favor of International Fire & Marine Insurance Co., Ltd., in the amount of $500 for the reasons set forth herein.

A. Standard for Evaluating Summary Judgment Motions.

“Under Rule 56(c) of the Federal Rules of Civil Procedure, summary judgment may be granted when ‘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 party is entitled to judgment as a matter of law.” Musick v. Burke, 918 F.2d 1390, 1393 (9th Cir.1990). In short, the evidence must appear insufficient for a reasonable jury to return a verdict for the nonmoving party. See Anderson v. Liberty Lobby, Inc. 477 U.S. 242, 249, 106 S.Ct. 2505, 2510-11, 91 L.Ed.2d 202 (1986).

Furthermore, while great care must be taken in evaluating a motion under Rule 56, and while “all justifiable inferences are to be drawn in [favor of the nonmoving party],” Id. at 255, 106 S.Ct. at 2513, Rule 56 motions are not disfavored motions. See Celotex Corp. v. Catrett, 477 U.S. 317, 327, 106 S.Ct. 2548, 2554-55, 91 L.Ed.2d 265 (1986). The Rule “must be construed with due regard not only for the rights of persons asserting claims and defenses that are adequately based in fact to have those claims and defenses tried to a jury, but also for the rights of persons opposing such claims and defenses to demonstrate in the manner provided by the Rule, prior to trial, that the claims and defenses have no factual basis.” Id.

B. There is No Genuine Issue of Material Fact as to Whether Silver Star Was a “Carrier” in Relation to Functional Robotics, and was thus Entitled to be a Party to a “Contract of Carriage” Extending COGS A’s Liability Limitation.

Plaintiff International Fire asserts that the Carriage of Goods by Sea Act (“COGSA”) limitation of liability, and its contractual extension by the parties, is not applicable here, as Silver Star was not a “carrier” entitled to invoke COGSA’s liability limitation or provision for extension thereof, and that the bill of lading is not a “contract of carriage” as defined in COGSA. (Opposition at 2-3).

In support of this assertion, plaintiff selectively cites pieces of COGSA provisions, (see Opposition at 3), ignoring both statutory provisions and case law which make clear that plaintiff, as a “non-vessel-operating-eommon-carrier” (NVOCC), is considered a “common carrier that does not operate the vessels by which the ocean transportation is provided....” 46 U.S.CApp. § 1702(17) (emphasis added).

It is clear, particularly in the Ninth Circuit, that an NVOCC who arranges for a vessel to carry a shipper’s cargo is a carrier in relation to the shipper, though a shipper in relation to the vessel. See 46 U.S.C.App. § 1702(17). See also Logistics Mgmt. v. One Pyramid Tent Arena, 86 F.3d 908, 911 n. 1 (9th Cir.1996) (NVOCC acts as a carrier by arranging for transportation of goods); id. at 914 (“although [an NVOCC] may not own the ships on which its customers’ goods are phys[916]*916ically transported, it nevertheless is the ‘carrier’ responsible for the through transportation of such goods.(quoting Fireman’s Fund Am. Ins. Companies v. Puerto Rican Forwarding Co., Inc., 492 F.2d 1294, 1295 (1st Cir.1974)); All Pacific Trading v. Vessel M/V Hanjin Yosu, 7 F.3d 1427, 1430 (9th Cir.1993) (“NVOCC is considered a carrier in its relationship with the shipper of the goods”). This authority, speaking directly to an NVOCC’s status as a carrier in relation to a shipper, even where the NVOCC merely arranges for the transportation of goods by another carrier, clearly belies plaintiff’s assertion that an NVOCC is not a “ ‘common carrier’ ... just because it books space” on a vessel. (See Opposition at 5).

As a matter of law, defendant Silver Star is clearly a “carrier”. As such, Silver Star is entitled to the protections of its contractual extension of COGSA’s limitation of liability to cover any damages which might have occurred during loading.

C. There is no Genuine Issue of Material Fact as to Whether Functional Robotics had a “Fair Opportunity” To Avoid the $500 Liability Limitation.

1. Defendant Makes a Prima Facie Showing of Fair Opportunity to Avoid the $500 Limitation.

Although a carrier does, under COGSA, have the right to limit liability, a carrier must, as a prerequisite, “give the shipper ‘a fair opportunity to choose between higher or lower liability by paying a correspondingly greater or lesser charge....’” Tessler Bros. (B.C.) Ltd. v. Italpacific Line, 494 F.2d 438, 443 (9th Cir.1974).

While the carrier bears the initial burden of demonstrating “fair opportunity”, Mori Seiki USA, Inc. v. M.V. Alligator Triumph, 990 F.2d 444, 449 (9th Cir.1993); Nemeth v. General Steamship Corp., Ltd., 694 F.2d 609 (9th Cir.1982), it is well established that the carrier can meet this burden by demonstrating that there is legible language on the bill of lading that either mirrors, or is to the same effect as the language of COGSA Section 4(5). Royal Insurance Co. v. Sea-Land Service, Inc., 50 F.3d 723, 727 (9th Cir.1995); Mori Seiki 990 F.2d at 449; Nemeth, 694 F.2d at 611.

This language need not appear on the front page of the bill of lading. Rather, “[t]he carrier’s initial burden is satisfied as long as the appropriate language appears ‘in the bill of lading’. (Cites omitted).” Mori Seiki, 990 F.2d at 449.

Silver Star has met its initial burden, and has thus made a prima facie showing that Functional Robotics had the “opportunity to avoid the [liability] limitation.” Tessler Bros., 494 F.2d at 443. Silver Star, in exhibit A of its Motion for Summary Judgment, attached a copy of the bill of lading entered into between Functional Robotics and Silver Star. (See Rhee decl. at ¶ 2).

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951 F. Supp. 913, 1997 A.M.C. 1691, 97 Daily Journal DAR 4656, 1997 U.S. Dist. LEXIS 601, 1997 WL 28667, Counsel Stack Legal Research, https://law.counselstack.com/opinion/international-fire-marine-insurance-v-silver-star-shipping-america-inc-cacd-1997.