New Zealand Kiwifruit Marketing Board v. City of Wilmington

806 F. Supp. 501, 1992 U.S. Dist. LEXIS 18047, 1992 WL 321075
CourtDistrict Court, D. Delaware
DecidedNovember 2, 1992
DocketCiv. A. 91-580-JLL
StatusPublished
Cited by2 cases

This text of 806 F. Supp. 501 (New Zealand Kiwifruit Marketing Board v. City of Wilmington) is published on Counsel Stack Legal Research, covering District Court, D. Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
New Zealand Kiwifruit Marketing Board v. City of Wilmington, 806 F. Supp. 501, 1992 U.S. Dist. LEXIS 18047, 1992 WL 321075 (D. Del. 1992).

Opinion

MEMORANDUM OPINION

LATCHUM, Senior District Judge.

1. INTRODUCTION

Defendant, City of Wilmington, has brought this motion before the Court, pursuant to Rule 56 of the Federal Rules of Civil Procedure, seeking an order for summary judgment against plaintiff, the New Zealand Kiwifruit Marketing Board (“New Zealand Kiwifruit”). 1 Plaintiff commenced this action seeking damages for the loss in value of a shipment of kiwifruit which was partially destroyed while in a port warehouse facility operated by defendant. (Docket Item [“D.I.”] 1 at 3.) Plaintiff based its claim against the City on five separate theories of liability: breach of contract, tort, breach of bailment, fraud and conversion. 2 Since this Court will grant summary judgment to the defendant by enforcing a clause in defendant’s tariff which contains a one-year statute of limitations for any suit brought against the city, the Court does not need to reach either the tort or breach of bailment claims and thus will not discuss them.

Plaintiff is a duly organized legal entity created and operating under the laws of New Zealand, with its principal place of business being Auckland, New Zealand. Defendant is a legal entity, duly organized, created and existing under the laws of the State of Delaware. The amount in controversy exceeds fifty-thousand dollars exclusive of interest and costs. The Court’s jurisdiction is based on diversity of citizenship in accordance with 28 U.S.C. § 1332.

II. FACTS

On or about July 5 or 6, 1990, plaintiff’s shipment of 2,961 pallets of fresh kiwifruit arrived at the Port of Wilmington, was unloaded and placed in the Port’s refriger *503 ated storage facilities. The Port of Wilmington and the facilities in which plaintiff’s cargo were stored are owned and operated by the defendant, City of Wilmington. On or about July 9, 1990, 200 pallets of the fresh kiwifruit being stored in defendant’s refrigeration system were cooled to a temperature of approximately 25 degrees Fahrenheit which froze the kiwifruit and thereby destroyed it. According to the plaintiff, the Port had been instructed to maintain the fresh kiwifruit at a temperature no less than 32 degrees Fahrenheit; and the destroyed. kiwifruit had a value of $266,549.48. Plaintiff brought suit in this Court on October 22, 1991, to recover the value of the destroyed cargo. Defendant City of Wilmington publishes its rates in a document entitled the General Tariff (hereinafter the “tariff”) in accordance with 46 U.S.C.App. § 801 et seq. Defendant’s tariff also includes the rules and regulations of the Port of Wilmington, including a one-year statute of limitations for any suits against the Port or the City and a clause which mandates that use of the port shall constitute consent to all the terms of the tariff. The relevant sections of the tariff read as follows:

Use of Tariff
The use of the facilities under the jurisdiction of the Port shall constitute consent to the terms and conditions of this Tariff, and evidences an agreement on the part of all vessels, their owners or agents, and other users of such facilities to pay all charges specified'in this Tariff and be governed by all rules and regulations herein contained,

and:

Limitation of Liability
... Any suit against the Port or the City or their employees of any type whatsoever must be instituted within one year from the date of the alleged injury or from the receipt or delivery of the cargo.

(D.I.-38 at A-2 and A-5.)

Defendant contends that the tariff constitutes the agreement of the parties concerning the use of the Port of Wilmington and that the one-year statute of limitations contained in the tariff must thus operate as a bar to plaintiff’s suit.

Plaintiff contends that the terms and conditions for storage at the Port were set out in a letter agreement negotiated between the Port and David Oppenheimer & Company, Ltd. Plaintiff further argues that it had no actual notice of the terms of the tariff and thus can not be bound by those terms. More specifically, plaintiff states that it had no actual notice of the one-year statute of limitations and thus this action should not be time-barred.

III. DISCUSSION

It is settled law “that the filing of a tariff gives constructive notice only of those terms which are required by law to be filed.” La Salle Machine Tool, Inc. v. Maher Terminals, Inc., 611 F.2d 56, 60 (4th Cir.1979). It is also well established that limitations on liability are not among the. provisions required to be filed by 46 U.S.C.App. § 801 et seq. or the applicable regulations 46 C.F.R. § 533.3. Id.; Federal Commerce & Navigation, Co. v. Calumet Harbor Terminals, Inc., 542 F.2d 437 (7th Cir.1976). Thus, the issue of whether or not the tariff and its one-year statute of limitations controls the agreement between the parties to this litigation depends on whether or not the plaintiff had actual notice of the tariff.

Plaintiff appears to agree with that conclusion since it has raised no argument to counter the assertion that if it had actual notice of the tariff, the tariff would constitute the contract with defendant. Nor has any argument been made to counter the assertion that if the tariff constitutes the contract between the parties that the one-year statute of limitations contained in the tariff at Section II Par. 14 D, (D.I. 38 at A-6), 3 would render this action time-barred against the City of Wilmington.

*504 Thus, the only question before this Court is whether defendant, City of Wilmington, has offered sufficient evidence of plaintiffs actual notice of the tariff, to entitle it to summary judgment.

A. The Standard of Review

Rule 56(c) of the Federal Rules of Civil Procedure provides that a party is entitled to summary judgment “if the pleadings, depositions, answers to interrogatories and admissions on file, together with the affidavits, if any, show that there is no genuine issue of material fact and that the moving party is entitled to a judgment as a matter of law.” Fed.R.Civ.P. 56(c).

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Cite This Page — Counsel Stack

Bluebook (online)
806 F. Supp. 501, 1992 U.S. Dist. LEXIS 18047, 1992 WL 321075, Counsel Stack Legal Research, https://law.counselstack.com/opinion/new-zealand-kiwifruit-marketing-board-v-city-of-wilmington-ded-1992.