Martin Marietta Corp. v. Harper Group

950 F. Supp. 1250, 1997 U.S. Dist. LEXIS 24, 1997 WL 4570
CourtDistrict Court, S.D. New York
DecidedJanuary 7, 1997
Docket93 Civ. 7313 (RLC)
StatusPublished
Cited by10 cases

This text of 950 F. Supp. 1250 (Martin Marietta Corp. v. Harper Group) 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
Martin Marietta Corp. v. Harper Group, 950 F. Supp. 1250, 1997 U.S. Dist. LEXIS 24, 1997 WL 4570 (S.D.N.Y. 1997).

Opinion

OPINION

ROBERT L. CARTER, District Judge.

I. Background

The dispute in this case centers on whether plaintiff Martin Marietta Corporation, successor to General Electric (“GE”), can recover under the Warsaw Convention 1 the full or *1252 partial value of sonar equipment damaged while en route from New York to the United Kingdom. The defendants are KLM Royal Dutch Airlines (“KLM”) and the Harper Group et al. as successor to Circle Airfreight Corporation et al. (“Circle”), the freight forwarder originally responsible for arranging the cargo’s shipment aboard KLM.

This matter was referred to Magistrate Judge Michael Dolinger for consideration of plaintiffs motion to strike defendants’ affirmative defenses of limited liability and, in the alternative, for partial summary judgment dismissing said affirmative defenses. Defendants have filed a cross-motion for partial summary judgment on the same question of whether they are entitled to assert limited liability as an affirmative defense. In his report, the magistrate judge recommended that the court grant defendants’ motion for partial summary judgment, to the extent of determining that defendants’ shipping waybills complied with Article 8 of the Warsaw Convention. Plaintiff has filed written objections to the magistrate’s proposed findings pursuant to Rule 72, F.R. Civ.P., requiring the court to give the matter de novo consideration. Only these objections are before the court. For the reasons given below, the court adopts the findings of the magistrate.

II. Facts 2

In 1988, GE and Circle entered into a Corporate Transportation Agreement, under which Circle was to serve as GE’s international air freight carrier. The agreement, which topped off a longstanding, twenty year commercial relationship between the two companies, was renewed for a second, three-year term in 1990. In November of 1991, GE arranged with Circle, pursuant to its transportation contract, to have a certain body of mine hunting sonar equipment shipped from John F. Kennedy (“JFK”) International Airport in New York to its buyer, Plessey Naval Systems, Ltd., in England. On GE’s instructions, (Circle’s Notice of Mot. for Summ. J., Ex. 9, Tichenor Dep. 76-77), Circle in turn contracted with KLM to transport the equipment from JFK to Heathrow Airport in London. A Circle employee executed the air waybill for its transaction with GE at Circle’s office, located at 1 Johnson Road, Lawrence, New York. This waybill listed Circle’s name as “the issuing carrier” and its Lawrence address and included the scheduled date of departure, KLM’s name as the airline responsible for transporting the shipment, and two flight numbers marking the cargo’s two-stage route from New York to Amsterdam and then to London. The waybill also included two additional addresses, one indicating Circle’s corporate headquarters and the other indicating its mailing address.

GE independently arranged with a separate company, Roberts Express, to have the cargo that is the subject of this dispute delivered from GE’s storage facility in New York directly to KLM at JFK. (See Pl.’s Notice of Mot., Ex. G., Roberts Express waybill) This cargo was consolidated with another GE shipment under a master waybill, which had been supplied by KLM and prepared by another Circle employee. (Pl.’s Notice of Mot., Peterson Dep. at 26-27, 30.) The KLM waybill included all the necessary particulars except for certain items under Articles 8(h) and (i) of the Convention which were overlooked. Pursuant to Circle’s agreement with GE, the consolidated shipment was flown aboard KLM to Schiphol Airport in Amsterdam where it was transported to Heathrow. (Circle’s Notice of Mot. for Summ.J., Ex. 4, McCann Dep. [hereinaf-. ter McCann Dep.] at 42.) Apparently, both stages of the shipment occurred on dates different from the ones scheduled on Circle’s waybill. At Heathrow, the cargo was damaged when it fell while being unloaded into KLM’s warehouse.

The Warsaw Convention presumes a carrier’s liability where cargo is damaged in the *1253 course of international transportation. See Warsaw Convention, Art. 18. Article 22(2) sets a ceiling on a carrier’s liability of 250 francs per kilogram (approximately $9.07 per pound) in the event that the consignor does not subscribe to the carrier’s insurance policy at the time it tenders the goods for shipment. Id., Art. 22(2). Neither defendant availed itself of this insurance option and each contends that its liability for the cargo should be limited under 22(2). Relying on Article 9 of the Convention, plaintiff argues that defendants are not entitled to limited liability because both the Circle and KLM waybills were deficient under Article 8 requiring the carrier’s waybills to supply certain information. 3 Plaintiff has reserved the question of whether the defendants engaged in willful misconduct under Article 25 of the Convention, which would also preclude a finding of limited liability.

III. Discussion

A Circle’s Compliance with Articles 8(a), (c), and (e)

Plaintiff principally asserts that the Circle waybill omitted essential items -under Articles 8(a), (e), and (e), respectively requiring the waybill to “contain ... [t]he place and date of its execution; ... [t]he agreed stopping places ... [and]; the name and address of the first carrier----” The court considers the adequacy of the waybill with respect to each of these items in turn.

1). Article 8(a)

Article 8(a) of the Warsaw Convention requires the waybill to contain the “place and date of its execution.” Id., Art. 8(a). It is not disputed that the date of Circle’s transaction with GE was properly included on the waybill. (See Pl.’s Objections to Report and Recommendation [hereinafter PL’s Objections] at 9,17.) What plaintiff contests is the ambiguity as to which of the three Circle addresses mentioned on the face of the waybill was the actual place of execution.

The court finds that the waybill conveys the information required under 8(a). The waybill’s place of execution is clearly indicated by the appearance of the Lawrence address in the box marked “name and address of issuing earrier/agent.” The fact that it is not literally identified as the “place of execution” or that the waybill contains two other Circle addresses is immaterial for the purposes of satisfying Article 8(a).

2) Article 8(c)

A slightly more difficult question is presented with respect to whether Circle has complied with Article 8(c), which requires the waybill to include the. “agreed stopping places.” Warsaw Convention, Art. 8(c). At issue is whether KLM’s flight number, denoting its stopover in Amsterdam, alone suffices under 8(c). After much consideration, the court concludes that it does.

The Court of Appeals in a succession of cases has firmly established the standard for assessing whether a waybill has fulfilled the requirements of Article 8. Thus, first in

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950 F. Supp. 1250, 1997 U.S. Dist. LEXIS 24, 1997 WL 4570, Counsel Stack Legal Research, https://law.counselstack.com/opinion/martin-marietta-corp-v-harper-group-nysd-1997.