Sail America Foundation v. M/V T.S. Prosperity

778 F. Supp. 1282, 1991 WL 253310
CourtDistrict Court, S.D. New York
DecidedNovember 21, 1991
Docket88 Civ. 1522 (DNE)
StatusPublished
Cited by14 cases

This text of 778 F. Supp. 1282 (Sail America Foundation v. M/V T.S. Prosperity) 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
Sail America Foundation v. M/V T.S. Prosperity, 778 F. Supp. 1282, 1991 WL 253310 (S.D.N.Y. 1991).

Opinion

OPINION & ORDER

EDELSTEIN, District Judge:

Background

In 1986, various sailing syndicates competed in the Americas Cup competition in Fremantle, Australia. At the conclusion of the competition, several American sailing syndicates, including plaintiffs in this action, took steps to transport their equipment to the United States. The syndicates hired an international freight forwarder, European Ocean Freight, Inc. (“EOF”), to secure transportation of the equipment to the United States. In its efforts, EOF worked with a New York-based freight forwarder, Alfred E. Bowen, Inc. (“Bowen”), though EOF negotiated on behalf of plaintiffs at all times. Both freight forwarders hoped to consolidate the various syndicates’ cargo into a single shipment in order to obtain economies of scale.

The two freight forwarders agreed that Bowen would arrange transportation for the syndicates’ cargo. To this end, Bowen entered into a booking note agreement with T.J. Stevenson & Co. under which Bowen agreed to book certain on-deck and below-deck space aboard the vessel T.S. Prosperity (“TSP”), which is owned by defendant N.L. Brier Shipping, N.A. (“NLB”), for the carriage of the syndicate’s cargo from Australia to the United States. In 1987, the TSP arrived in Fremantle for purposes of loading the syndicate’s cargo for transport to the United States.

Bowen issued a bill of lading to plaintiffs. These bills are identical except for their description of the cargo. The bills specifically incorporate the $500 per package limitation of liability contained in the United States Carriage of Goods By Sea Act (“COGSA”), 46 U.S.C.App. § 1300 et seq. The bills also state that Bowen is the sole carrier and that Bowen alone will be liable as a carrier under the bill of lading. These bills provide in relevant part:

2. Definitions:

c. “Goods” as used herein means all cargo including the deck cargo described by the Shipper on Page One of this B/L, including the boxes, bundles, containers, trailers, tanks, lifts, flats, pallets or other packages, shipping units or articles of transport used to consolidate cargo, in or on which they are transported.

*1284 6. Carrier’s Liability Limitation:

b. During all other periods of the Carrier’s responsibility for the Goods, except as otherwise specifically provided for herein the rights and liabilities of the parties to this B/L with respect to the Goods shall be governed by the United States Carriage of Goods By Sea Act ... which shall be deemed to be incorporated herein; and all other statutes and laws compulsorily applicable to this B/L during such periods.
c. Limitation of Liability. In any event, the Carrier shall not be liable for any loss or damage to or in connection with the Goods in an amount exceeding U.S. $500 per package, unless the nature and a higher valuation of the Goods have been declared by the Merchant before shipment and inserted in this B/L. Such a declaration shall be prima facie of the value of the Goods, but not conclusive on the Carrier. When not repugnant to a compulsorily applicable statute or law, “package” is defined as all pieces of cargo shipped individually and not prepared in any manner for transport, and all containers as defined in ... this B/L.
e. Any provision or any part of a provision of this B/L which is repugnant to a statute or law compulsorily applicable to this B/L is void, but only for that period during which said statute to limit or deprive the Carrier of any statutory or law compulsorily applies and nothing in this B/L shall operate liberty, defense, exemption or limitation of liability.
f. The Carrier’s defenses, exceptions, limits of liability, liberties and the like provided for by this B/L shall apply in all proceedings against the Carrier with respect to the Goods whether they be grounded in contract or tort.

Plaintiffs allege that the defendants are liable for damage inflicted on two pieces of their cargo that plaintiffs had placed on board the TSP. Sail America Foundation (“SAF”) contends that its motorized tender boat, Betsy, incurred damages during the trip to America. The Betsy is a 64 foot long motor yacht used by SAF for various non-racing functions. Defendants stowed the Betsy on the No. 1 hatch cover on the TSP’s deck. Eagle Syndicate (“Eagle”) asserts that its 100-foot long sailing mast, which was part of its twelve meter yacht, also sustained damages during this trip. The mast was also carried on the TSP’s deck. It is not disputed that all parties consented to transport of the cargo on the deck of the TSP. The TSP arrived in Long Beach, California with plaintiffs’ cargo on April 14, 1987. Plaintiffs gave notice of the alleged damage to their cargo in May 1987 and then commenced the instant action. Discovery is complete.

Defendants N.L Brier and the TSP have moved for summary judgment pursuant to Federal Rule of Civil Procedure 56 to dismiss plaintiffs’ action or, in the alternative, for partial summary judgment limiting plaintiffs’ maximum recovery to $1,000. Defendant Bowen has also moved for partial summary judgment limiting plaintiffs’ maximum recovery to $1,000. For purposes of these motions, the defendants will assume that plaintiffs’ cargo incurred damage. Plaintiffs have cross moved pursuant to Rules 7(b) and 12(f) to strike defendants’ defenses that seek to limit their liability to $1,000.

Discussion

“It is well settled that a court should grant a motion for summary judgment only if the evidence, viewed in the light most favorable to the party opposing the motion, presents no genuine issue of material fact.” Cable Science Corp. v. Rochdale Village, Inc., 920 F.2d 147, 151 (2d Cir. 1990); see United States v. Diebold, Inc., 369 U.S. 654, 655, 82 S.Ct. 993, 994, 8 L.Ed.2d 176 (1962). Whether an issue is genuine and material for purposes of summary judgment depends on “whether the evidence presents a sufficient disagreement to require submission to a jury or whether it is so one-sided that one party must prevail as a matter of law.” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 251-52, 106 S.Ct. 2505, 2512, 91 L.Ed.2d 202 (1986). “One of the principal purposes of the summary judgment rule is to isolate and dispose of factually unsup *1285 ported claims or defenses____” Celotex Corp. v. Catrett, 477 U.S. 317, 323-24, 106 S.Ct. 2548, 2553, 91 L.Ed.2d 265 (1986). The Supreme Court added that “[s]ummary judgment procedure is properly regarded not as a disfavored procedural shortcut, but rather as an integral part of the Federal Rules as a whole, which are designed ‘to secure the just, speedy and inexpensive determination of every action.’ ” Id. at 327, 106 S.Ct. at 2555 (quoting Fed.R.Civ.P.

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Cite This Page — Counsel Stack

Bluebook (online)
778 F. Supp. 1282, 1991 WL 253310, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sail-america-foundation-v-mv-ts-prosperity-nysd-1991.