Outokumpu Stainless USA, LLC v. M/V VEGALAND

21 F. Supp. 3d 816, 2014 WL 1912099, 2014 U.S. Dist. LEXIS 65707
CourtDistrict Court, S.D. Texas
DecidedMay 13, 2014
DocketCivil Action No. H-13-66
StatusPublished

This text of 21 F. Supp. 3d 816 (Outokumpu Stainless USA, LLC v. M/V VEGALAND) is published on Counsel Stack Legal Research, covering District Court, S.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Outokumpu Stainless USA, LLC v. M/V VEGALAND, 21 F. Supp. 3d 816, 2014 WL 1912099, 2014 U.S. Dist. LEXIS 65707 (S.D. Tex. 2014).

Opinion

MEMORANDUM OPINION & ORDER

GRAY H. MILLER, District Judge.

Pending before the court are Nordana Line A/S’s (“Nordana”) motion for partial summary judgment (Dkt. 14) and plaintiffs motion for partial summary judgment (Dkt. 27). After considering the parties’ briefing, record evidence, and applicable law, the court is of the opinion that Norda-na’s motion for partial summary judgment should be GRANTED and plaintiffs motion for partial summary judgment should be DENIED.

I. Background

This maritime case stems from damaged cargo being transported by sea from Genoa, Italy to Houston, Texas. Dkt. 1, p. 7. Plaintiff, a large producer of stainless steel, shipped a 63-ton tilt drive industrial machine1 for installation in its Melt Shop facility in Alabama through Nordana as the common carrier and time charterer of the M/V VEGALAND. Id.; Dkt. 14, Ex. A. Before reaching Nordana, the melt shop was prepared for shipment by Siemens-VAI Metal Technologies (“Siemens”), the seller of the melt shop. Id. at Ex. B. It was wrapped in plastic sheeting, enclosed in a crate made from wooden slats with several inches separating each wooden slat, and mounted to a skid. Id. at Ex. D. The melt shop was shipped along with two other wooden crates containing components for the melt shop. Id. at Ex. A. Consistent with the summary packaging slip prepared by Siemens, Nordana issued a bill of lading describing the packages to be shipped as 3 “crates.” Id. at Exs. A-B. Plaintiff did not declare the value of the cargo on the face of the bill of lading. Id. at Ex. A. While in transit, the M/V VEGA-LAND encountered heavy weather. Dkt. 27, Ex. I. When the M/V VEGALAND reached, the Port of Houston, the cargo was found tipped over on its side. Dkt. 1, pp. 8-9. The melt shop experienced significant damage. Id.

Plaintiff filed suit in admiralty on January 9, 2013, claiming $566,740.80 in actual damages to the melt shop. Id. at 9. Plaintiff and Nordana filed cross-motions for partial summary judgment seeking a determination regarding whether the Carriage of Goods by Sea Act (“COGSA”), 46 U.S.C. § 30701 et seq., limits Nordana’s liability to $500 per package. Nordana submits that the physical packaging of the cargo and the bill of lading establish, as a matter of law, that the melt shop was a single package under COGSA. Plaintiff counters that the melt shop does not constitute a package, and further, that Nordana is not entitled to limit its liability because it did not give plaintiff a fair opportunity to declare a higher value for the cargo.

II. Legal Standard

Summary judgment is proper if “the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.” Fed. R. Civ. P. 56(a); see also Carrizales v. State Farm, Lloyds, 518 F.3d 343, 345 (5th Cir.2008). The moving party bears the initial burden of informing the court of evidence, if any, that demonstrates the absence of a genuine dispute of material fact. Celotex Corp. v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). Only when the moving party has discharged this initial burden does the [819]*819burden shift to the non-moving party to demonstrate that there is a genuine dispute of material fact. Id. at 322, 106 S.Ct. 2548. A dispute is “genuine” if the evidence is such that a reasonable jury could return a verdict for the non-moving party. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986); Cooper Tire & Rubber Co. v. Farese, 423 F.3d 446, 454 (5th Cir.2005). A dispute is “material” if its resolution could affect the outcome of the action. Anderson, 477 U.S. at 248, 106 S.Ct. 2505. The substantive law determines which facts are material in each case. Lastly, in determining whether a genuine dispute of material fact exists, the court views the evidence and draws inferences in the light most favorable to the non-moving party. See id. at 255, 106 S.Ct. 2505; Richardson v. Monitronics Int’l, Inc., 434 F.3d 327, 332 (5th Cir.2005).

If there are no issues of witness credibility, “the court may conclude on the basis of the affidavits, depositions, and stipulations before it, that there are no genuine issues of material fact, even though decision may depend on inferences to be drawn from what has been incontrovertibly proved.” Tamini v. Salen Dry Cargo AB, 866 F.2d 741, 742-43 (5th Cir.1989) (quoting Nunez v. Superior Oil Co., 572 F.2d 1119, 1123-24 (5th Cir.1978)). Under these circumstances, the judge, who is also the trier of fact in an admiralty case, may be warranted in deciding a factual question as a matter of law. Id. “The judge, as trier of fact, is in a position to and ought to draw his inferences without resort to the expense of trial.” Id.

III. Analysis

Nordana seeks partial summary judgment solely on the issue of whether its liability for the damaged cargo is limited to $500 per package under COGSA. Norda-na maintains that the melt shop was packaged for shipping and that plaintiff failed to declare a higher value for the cargo on the bill of lading in order to avoid additional ad valorem freight charges, despite being given a fair opportunity to do so. Plaintiff responds that the melt shop does not constitute a package because the nature and value of the equipment were apparent to Nordana such that it should not be entitled to limit its liability to $500. Plaintiff also contends it was not given a fair opportunity to declare a higher value, which should render void the limitation clause in the bill of lading. Additionally, plaintiff seeks to avoid the limitation of liability by making claims of geographic deviation, improper stowage, and spoliation of evidence. The court will address the arguments relevant to the question of whether the COGSA package limitation applies.

Both parties agree that COGSA applies. COGSA “applies to a carrier engaged in the carriage of goods to or from any port in the United States.” 46 U.S.C. § 30702. The COGSA package limitation provides, in relevant part:

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Bluebook (online)
21 F. Supp. 3d 816, 2014 WL 1912099, 2014 U.S. Dist. LEXIS 65707, Counsel Stack Legal Research, https://law.counselstack.com/opinion/outokumpu-stainless-usa-llc-v-mv-vegaland-txsd-2014.