Lord & Taylor LLC v. Zim Integrated Shipping Services, Ltd.

108 F. Supp. 3d 197, 2015 A.M.C. 1762, 2015 U.S. Dist. LEXIS 75868, 2015 WL 3630443
CourtDistrict Court, S.D. New York
DecidedJune 8, 2015
DocketNo. 13 Civ. 3478(AT)
StatusPublished

This text of 108 F. Supp. 3d 197 (Lord & Taylor LLC v. Zim Integrated Shipping Services, Ltd.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lord & Taylor LLC v. Zim Integrated Shipping Services, Ltd., 108 F. Supp. 3d 197, 2015 A.M.C. 1762, 2015 U.S. Dist. LEXIS 75868, 2015 WL 3630443 (S.D.N.Y. 2015).

Opinion

OPINION AND JUDGMENT

ANALISA TORRES, District Judge:

1. Overview

On the evening of Monday, October 29, 2012, Hurricane1 Sandy made landfall in southern New Jersey, causing billions of dollars in damage along the East Coast of the United States. As a result of flooding at the New York Container Terminal (“NYCT” or the “Terminal”) located on Staten Island, 211 cartons containing Plaintiff, Lord & Taylor LLC’s, ladies cardigans and sweaters were ruined by wetting damage. Although Hurricane Sandy was figuratively an Act of God, the question before the Court is whether Hurricane Sandy was legally an Act of God that absolves Defendant, Zim Integrated Shipping Services, Ltd. (“Zim”), of liability for Plaintiffs loss.2 The answer is yes.

II.Procedural History

The Court held a bench trial from October 27 to 31, 2014. Post-trial memoranda were fully submitted on December 5, 2014. On January 8; 2015, the Court visited NYCT.

At trial, each party presented one fact witness and two expert witnesses. Robert [199]*199Nixon, Vice President of Operations at NYCT, testified as a fact witness on behalf of Plaintiff, and Zim called Salvatore Gril-lo, a former NYCT employee who was present at NYCT on the night of the storm. The Court credits their testimony.

Each party presented its own terminal operations expert. Captain Ivo Knobloch testified on behalf of Plaintiff. Knobloch holds a Bachelor of Technology degree in Ship Management and Ship Operation from the Academy for Nautical Science and Marine Technology in Bremen, Germany. Ex. 57, at I. He has been a marine surveyor and casualty investigator since 1988, and prior to that, worked on ships for about 14 years. ■ Id.; Tr. 239. Zim called Donald Hamm as its terminal'operations expert. Hamm worked at container terminals in Europe and the United States for 40 years before retiring in 2009. Tr. 522; see also Ex. 62. Most recently, from 2003 to 2009, Hamm was president of the Port of Newark Container Terminal. Tr. 524.

Each party also presented a meteorology expert. Lee Branscome, Ph.D., testified for Plaintiff. Branscome earned a Ph.D. in meteorology at the Massachusetts Institute of Technology. Ex. 33, at 1. He is a Certified Consulting Meteorologist and is board certified by the American Meteorological Society. Id. Zim called Austin Dooley, Ph.D. Dooley holds a Ph.D. in Physical Oceanography from New York University. Ex. 35, at 22. Dooley was previously an associate professor of meteorology and oceanography at the SUNY Maritime College, an adjunct instructor of meteorology and oceanography at Purchase College, and an adjunct professor of meteorology at the U.S.- Merchant Marine Academy. Id. at 1. In addition to the live testimony, the parties provided deposition excerpts constituting the direct testimony of several additional fact witnesses. See Joint Pre-Trial Order, Oct. 20, 2014, EOF No. 60.

“In an action tried on the facts without a jury ... the court must find the facts specially and state its conclusions of law separately.” Fed.R.Civ.P. 52(a)(1). Following are the Court’s findings of fact and conclusions of law.

III. Findings of Fact

A. Stipulated Facts

Prior to trial, the parties stipulated to the following facts concerning Plaintiffs cargo, the manner of shipment, and the applicable damages.

Plaintiff contracted with Zim, a licensed ocean liner carrier, to transport Plaintiffs merchandise from Hong Kong to New York. Joint Stipulation of Facts (“Jt. Stip.”) ¶¶ 1-3, 22, Oct. 20, 2014, ECF No. 60. Zim leased space aboard a ship known as the M/V. OOCL Kobe (the “Kobe”) to transport the goods in containers. Id.

On October 1, 2012, two containers, container GLDU 2916462 (“Container G”), carrying 268 cartons of Plaintiffs ladies cardigans, and container IPXU 3827688 (“Container I”), carrying 443 cartons of Plaintiffs sweaters and cardigans, were loaded onto the Kobe. Id. ¶ 1, 2. The Kobe departed Hong Kong for the Port of New York oh October 1 and arrived in New York on Saturday, October 27. Id. ¶¶ 1-2, 4. The Kobe berthed at NYCT at approximately 9:00 a.m. and began cargo operations at approximately 1:00 p.m. Id. ¶ 4. The term “cargo operations” means the loading and unloading of cargo containers. The Kobe completed cargo operations at 2:12 a.m. on Sunday, October 28 and left shortly thereafter. Id. 5. Container G was stored outdoors on the asphalt surface of the Terminal; NYCT was unable to determine where Container I was stored. Id. ¶¶ 6-7.

[200]*200As is “usual and customary” on the weekend, NYCT was closed for truck pickup of incoming cargo.- Id. ¶ 8. At no time did Plaintiff request that Zim or NYCT provide Plaintiff the opportunity to collect its goods on Saturday or Sunday. Id. ¶ 9.

Due to Hurricane Sandy, NYCT was closed on Monday, October 29. Id. ¶ 10. NYCT “suffered flooding damage on the evening of Monday, October 29, 2012 as a result of the storm surge associated with Hurricane Sandy.” Id. ¶ 11.

Plaintiffs truckers picked up the containers on November 6 and delivered them to Plaintiff the next day. Id. ¶ 12. As a result of Sandy, 118 cartons in Container G and 93 cartons in Container I suffered wetting damage and were destroyed. Id. ¶¶ 16-17. Based on the retail sales value of the merchandise, Plaintiff suffered a loss of $206,972. Id. ¶ 18. This amount was paid to Plaintiff by its cargo underwriter, Markel Syndicate 3000, which is subrogated to Plaintiffs rights to the claim under the cargo policy. Id.

Pursuant to the package limitation provision of the Carriage of Goods by Sea Act (“COGSA”), 46 U.S.C. § 30701 note, formerly at 46 U.S.C. app. §§ 1301 et seq., the parties agree that Plaintiffs damages are limited to $105,500 and that this amount is directly attributable to wetting damage from Hurricane Sandy. Id. ¶¶ 19-20.

B. The Terminal

NYCT is one of six container terminals located in the Port of New York.3 NYCT is situated on the northwest corner of Staten Island. The Terminal sits on land owned by the City of New York (the “City”), which leases it to the Port Authority of New York and New Jersey (the “Port Authority”), which, in turn, leases it to NYCT. Tr. 141, 527-28. This is a common arrangement among terminal operators and local governments in the area. Tr. 529. Constructed in the 1960s, NYCT was previously known as the Howland Hook Container Terminal. Ex. 62, at 2. The Ontario Teachers Investment Group purchased the Terminal in 2006, and it was subsequently renamed. Id.

The Terminal is an asphalt-covered lot spanning 187 acres. Tr. 456, 491. It is roughly triangular in shape. Tr. 39; see also Ex. 62A (aerial photo of NYCT with relevant structures labeled); Ex. 78 (aerial photo of NYCT described during Nixon’s testimony). NYCT is bordered along the north by a swamp, Tr. 508, and along the south by railroad tracks that do not belong to the Terminal, Tr. 454.

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108 F. Supp. 3d 197, 2015 A.M.C. 1762, 2015 U.S. Dist. LEXIS 75868, 2015 WL 3630443, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lord-taylor-llc-v-zim-integrated-shipping-services-ltd-nysd-2015.