Siaci Saint Honore v. Ironbound Express, Inc.

884 F. Supp. 2d 100, 2012 A.M.C. 2497, 2012 WL 3229179, 2012 U.S. Dist. LEXIS 112496
CourtDistrict Court, S.D. New York
DecidedAugust 6, 2012
DocketNo. 12 CV. 0833(VM)
StatusPublished
Cited by1 cases

This text of 884 F. Supp. 2d 100 (Siaci Saint Honore v. Ironbound Express, Inc.) 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
Siaci Saint Honore v. Ironbound Express, Inc., 884 F. Supp. 2d 100, 2012 A.M.C. 2497, 2012 WL 3229179, 2012 U.S. Dist. LEXIS 112496 (S.D.N.Y. 2012).

Opinion

DECISION AND ORDER

VICTOR MARRERO, District Judge.

Plaintiff Siaci Saint Honoré (“Siaci”) brings this action as subrogee of LVMH Fragrance Brands (“LVMH”) and Ideal Logistics (“Ideal,” together with LVMH, “the Insured”) against defendants Iron-bound Express, Inc. (“Ironbound”) and Danmar Lines Ltd. (“Danmar,” together with Ironbound, “Defendants”) to recover $122,848.10 arising from the loss of the Insured’s cargo. By separate letters dated June 13, 2012 (Docket Nos. 20, 21), Defendants indicated their intent to move to dismiss Siaci’s complaint (the “Complaint”) based on the statute of limitations and a forum selection clause. Siaci replied by letter (“Reply”) (Docket No. 24) dated June 26, 2012. Having reviewed the parties’ submissions, the Court deems Defendants’ June 13, 2012 letters as constituting motions to dismiss the Complaint. For the reasons discussed below, Defendants’ motions to dismiss (the “Motions”) are GRANTED, and the Complaint is DISMISSED.

I. BACKGROUND1

A. THE UNDERLYING SHIPPING TRANSACTION

This action arises out of an international shipment of goods from St. Quentin, [102]*102France to Dayton, New Jersey, via the ports of Le Havre, France and New York. The Insured contracted with Danmar to transport 1320 packages of perfumes and cosmetics in an ocean shipping container between France and New York and then in an on-land carrier between New York and New Jersey. Danmar subsequently subcontracted with Ironbound to transport the goods in a motor carrier between New York and New Jersey.

To set forth its obligations under the shipping agreement and to provide evidence of the agreement’s terms, Danmar issued to the Insured an Express Sea Waybill (the “Bill”). The Bill is an inter-modal, “through” bill of lading, which incorporates both the ocean and inland portions of the transport into a single document and extends the Bill’s provisions to any subcontracts, such as Dan-mar’s subcontract with Ironbound.

According to Siaci, the goods were stolen while in the custody and control of Defendants during the inland portion of the shipment. Delivery should have taken place on January 17, 2011. The Insured learned of the loss on January 21, 2011, and shortly afterward received money for the value of the goods from Siaci, from whom the Insured had previously purchased a marine insurance policy. On February 2, 2012, Siaci filed suit against Defendants to recover the money disbursed to the Insured, claiming that the Defendants breached their obligations under the Bill.2

B. RELEVANT PROVISIONS OF THE BILL OF LADING

Multiple provisions of the Bill are pertinent to the Court’s analysis of the Motions. The relevant provisions fall into two groups: (1) clauses establishing procedural limits to claims brought against Danmar and its subcontractors for loss or damage of cargo; and (2) clauses identifying the laws — statutes and the case law interpreting those statutes — that govern the enforceability of the Bill’s terms.

The first group includes the time bar clause (“Time Bar Clause”) and the forum selection clause (“Forum Selection Clause”). The Time Bar Clause provides that “... the Carrier [Le., Danmar or its subcontractor] shall be discharged of all liability under this Bill ... unless suit is brought within one year after the delivery of the Goods or the date when the Goods should have been delivered.” (Docket No. 20). The “Law and Jurisdiction Clause,” which subsumes the Forum Selection Clause, provides that any litigation arising under or related to the Bill shall “be determined exclusively by the competent courts of Basel-Stadt, Switzerland, and by no other court.” {Id.).

The second group of clauses, defining the legal standards that determine the validity of certain terms in the Bill, includes the Amount of Compensation Clause (“Compensation Clause”) and the Para[103]*103mount Clause (“Paramount Clause”). The Compensation Clause distinguishes between the law that would apply to loss or damage occurring at sea and loss or damage not occurring at sea.

Where the loss or damage did not occur at sea, § 13.2(B) of the Compensation Clause (“§ 13.2(B)”) provides:

the liability of the Carrier shall be determined by the provisions contained in any international convention or national law which cannot be departed from by private contract to the detriment of the Merchant[3] and would have applied if the Merchant had made a separate and direct contract with the Carrier in respect of the particular stage of carriage where the loss or damage occurred and had received as evidence thereof any particular document which must be issued in order to make such international convention or national law applicable.

(Id.). Section 13.2(B)(b) of the Compensation Clause

(“§ 13.2(B)(b)”) expounds on the terms of Danmar’s liability for non-sea carriage by specifically addressing its responsibilities during transportation in the United States from the port of discharge. This clause provides that the obligations of the carrier during such transportation “shall be subject to the inland carrier’s contracts of carriage and tariffs and any law compulsorily applicable as well as subject to any liability limitations contained in said inland carrier’s contracts.” (Id.).

Where the loss or damage happened during carriage at sea, § 13.2(C) of the Compensation Clause (“§ 13.2(C)”) states that the carrier’s liability for the alleged breach of duty is defined by a separate clause known as the “Paramount Clause,” which provides:

where the contract evidenced by this Bill of Lading is governed by the Carriage of Goods by Sea Act of the United States ... then provisions stated in the acts shall apply, respectively ... for the time the Goods are in the possession of the Carrier or its subcontractors, including the time following receipt prior to loading and following discharge prior to delivery. ...

(Id.).

II. DISCUSSION

The Court’s analysis of Defendants’ Motions turns on a dispute of contractual interpretation. The parties disagree about what body of law governs certain terms of the Bill and about the validity of two particular provisions, namely, the Forum Selection Clause and the Time Bar Clause. Specifically, the issues before the Court are: (1) whether the Carmack Amendment to the Interstate Commerce Act of 1887 (“Carmack”), 49 U.S.C. § 14706, et seq., or the Carriage of Goods by Sea Act (“COG-SA”), 46 U.S.C. § 30701, controls the Time Bar and Forum Selection Clauses, given that the loss of the Insured’s cargo allegedly occurred on land; and (2) if COGSA controls, whether the Court should honor the Forum Selection Clause and/or Time Bar Clause in light of relevant provisions of COGSA.

Siaci argues that in drafting the Bill, the parties agreed that determinations of liability for loss of cargo would be subject to Carmack, which preempts both the Forum Selection and Time Bar Clauses.

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884 F. Supp. 2d 100, 2012 A.M.C. 2497, 2012 WL 3229179, 2012 U.S. Dist. LEXIS 112496, Counsel Stack Legal Research, https://law.counselstack.com/opinion/siaci-saint-honore-v-ironbound-express-inc-nysd-2012.