MSC Mediterranean Shipping Co. v. Metal Worldwide, Inc.

884 F. Supp. 2d 1269, 2012 A.M.C. 2815, 2012 U.S. Dist. LEXIS 110370, 2012 WL 3241980
CourtDistrict Court, S.D. Florida
DecidedAugust 7, 2012
DocketCase No. 11-61634-Civ
StatusPublished
Cited by1 cases

This text of 884 F. Supp. 2d 1269 (MSC Mediterranean Shipping Co. v. Metal Worldwide, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
MSC Mediterranean Shipping Co. v. Metal Worldwide, Inc., 884 F. Supp. 2d 1269, 2012 A.M.C. 2815, 2012 U.S. Dist. LEXIS 110370, 2012 WL 3241980 (S.D. Fla. 2012).

Opinion

ORDER GRANTING IN PART AND DENYING IN PART PLAINTIFF’S MOTION FOR SUMMARY JUDGMENT

ROBERT N. SCOLA, JR., District Judge.

THIS MATTER is before the Court on the Plaintiffs Motion for Summary Judgment (ECF No. 58). For the reasons ex[1272]*1272plained in this Order, the Motion is granted as to Counts I, & II on the issue of breach of contract. The Motion is denied as to Counts III & X on the issues of contractual indemnity and piercing the corporate veil.

I. Background 1

This is a dispute over an alleged breach of a maritime contract for the shipment of goods. The Defendant, Metal Worldwide, Inc., contracted with the Plaintiff, MSC Mediterranean Shipping Co. SA, Geneva, to transport a shipment of shredded steel scrap from Fort Lauderdale, Florida to Chennai, India. Metal Worldwide’s shredded steel scrap supply was being provided by Sunco Metals. Sunco obtained empty containers and purported to load them with the shredded steel scrap and then sealed the containers. Metal Worldwide did not have a representative present when the containers were loaded and sealed. However, Metal Worldwide represented to MSC that the containers were filled with shredded steel scrap and further represented to MSC that the containers each weighed between twenty and twenty-five tons. The containers were delivered to the Port Everglades Terminal, in Fort Lauderdale, Florida, and loaded onto an MSC vessel. The containers were shipped under Bills of Lading, and the respective Bills of Lading served as the contracts of carriage for the containers.

The containers were shipped to Chennai, India, and were still sealed when they arrived. Upon opening the containers in India, it was discovered that the containers were not filled with shredded steel scrap, but were instead loaded with dirt. India’s customs authority launched an inquiry and seized the containers. MSC notified Metal Worldwide of the problem with the containers, and explained that Metal Worldwide would be responsible for demurrage charges that were accruing. MSC continues to incur demurrage charges from the container freight station where the containers are presently held. MSC will incur a fine from the Indian Government for the mis-declaration of the contents of the containers, and will also be responsible for the costs associated with disposing or destroying the contents of the containers once they are released by the Indian Government.

In April 2011, Metal Worldwide dissolved. Subsequently, Defendant Sachin Chhabra, as President of Metal Worldwide, sent a letter to MSC abandoning the containers and giving MSC the right to dispose of the contents.

II. Legal Standards

Summary judgment is proper if following discovery, the pleadings, depositions, answers to interrogatories, affidavits and admissions on file show that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law. Celotex Corp. v. Catrett, 477 U.S. 317, 322, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986); Fed.R.Civ.P. 56. “An issue of fact is ‘material’ if, under the applicable substantive law, it might affect the outcome of the case.” Hickson Corp. v. N. Crossarm Co., 357 F.3d 1256, 1259-60 (11th Cir.2004). “An issue of fact is ‘genuine’ if the record taken as a whole could lead a rational trier of fact to find for the nonmoving party.” Id. at 1260. All the evidence and factual inferences reasonably drawn from the evidence must be [1273]*1273viewed in the light most favorable to the nonmoving party. Adickes v. S.H. Kress & Co., 398 U.S. 144, 157, 90 S.Ct. 1598, 26 L.Ed.2d 142 (1970); Jackson v. BellSouth Telecomms., 372 F.3d 1250, 1280 (11th Cir.2004).

Once a party properly makes a summary judgment motion by demonstrating the absence of a genuine issue of material fact, whether or not accompanied by affidavits, the nonmoving party must go beyond the pleadings through the use of affidavits, depositions, answers to interrogatories and admissions on file, and designate specific facts showing that there is a genuine issue for trial. Celotex, 477 U.S. at 323-24, 106 S.Ct. 2548. The nonmovant’s evidence must be significantly probative to support the claims. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 249, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). The Court will not weigh the evidence or make findings of fact. Anderson, 477 U.S. at 249, 106 S.Ct. 2505; Morrison v. Amway Corp., 323 F.3d 920, 924 (11th Cir.2003). Rather, the Court’s role is limited to deciding whether there is sufficient evidence upon which a reasonable juror could find for the nonmoving party. Id.

III. Discussion

This Court has jurisdiction over this matter and federal maritime law applies to the parties’ dispute. A bill of lading is the basic transportation contract between the shipper-consignor and the carrier.2 S. Pac. Transp. Co. v. Commercial Metals Co., 456 U.S. 336, 342, 102 S.Ct. 1815, 72 L.Ed.2d 114 (1982). Each term of the bill of lading “has in effect the force of a statute, of which all affected must take notice.” Id. at 343, 102 S.Ct. 1815. A bill of lading that requires a substantial carriage of goods by sea for the purpose of effectuating maritime commerce is a maritime contract. Altadis USA, Inc. ex rel. Fireman’s Fund Ins. Co. v. Sea Star Line, LLC, 458 F.3d 1288, 1294 (11th Cir.2006) (quoting Norfolk S. Ry. Co. v. Kirby, 543 U.S. 14, 27, 125 S.Ct. 385, 160 L.Ed.2d 283 (2004)). Federal courts have primary jurisdiction over maritime contracts. Misener Marine Const., Inc. v. Norfolk Dredging Co., 594 F.3d 832, 837 (11th Cir.2010). The bills of lading that are the subject of this litigation involved a substantial carriage of goods by sea for the purpose of effectuating maritime commerce. (See Stmt, of Material Facts ¶ 1, ECF No. 58.)

A. Count I: Metal Worldwide Breached Its Contract With MSC By Failing To Pay Freight Charges

The Bills of Lading establish that all charges, costs and expenses due to MSC (“freight”) were earned and due upon receipt of the goods by MSC. (Stmt, of Material Facts ¶ 17, ECF No. 58.) Under the terms of the Bills of Lading, the freight is due to be paid without any set-off, counter claim, or deduction. (Id.)

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884 F. Supp. 2d 1269, 2012 A.M.C. 2815, 2012 U.S. Dist. LEXIS 110370, 2012 WL 3241980, Counsel Stack Legal Research, https://law.counselstack.com/opinion/msc-mediterranean-shipping-co-v-metal-worldwide-inc-flsd-2012.