Skandia Ins. Co., Ltd. v. Star Shipping As

173 F. Supp. 2d 1228, 2001 A.M.C. 1527, 2001 U.S. Dist. LEXIS 5240, 2001 WL 394874
CourtDistrict Court, S.D. Alabama
DecidedApril 5, 2001
DocketCiv.A. 99-0284-CB-L
StatusPublished
Cited by14 cases

This text of 173 F. Supp. 2d 1228 (Skandia Ins. Co., Ltd. v. Star Shipping As) is published on Counsel Stack Legal Research, covering District Court, S.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Skandia Ins. Co., Ltd. v. Star Shipping As, 173 F. Supp. 2d 1228, 2001 A.M.C. 1527, 2001 U.S. Dist. LEXIS 5240, 2001 WL 394874 (S.D. Ala. 2001).

Opinion

ORDER

BUTLER, Chief Judge.

This admiralty action consists of two consolidated actions. 1 Plaintiffs seek recovery from the Defendants of the value of containerized cargo (reels of paper), which were damaged at container yards located at the Alabama State Docks, (“State Docks”), in Mobile, Alabama, (“Mobile”), by tidal surge flooding associated with Hurricane Georges, which struck Biloxi/Ocean Springs, Mississippi, on September 28, 1998. Generally, Plaintiffs allege, notwithstanding that this hurricane was an Act of God, 2 that the Defendants are liable because they failed to take reasonable precautions to secure the safety of, and avoid damage to, the cargo in question, by failing to move the containers out of harm’s way. Accordingly, “[a] case spawned by the ill winds” 3 and tidal surges of Hurricane Georges made landfall in this Court for a bifurcated 4 bench trial on January 8, 2001, and continued through January 12, 2001. As the waters of this legal tide have now since receded, this Court enters its findings of fact and conclusions of law as follows.

I. FINDINGS OF FACT

A. Background

In June of 1998, SCA, Graphic Sundsvall AB (“SCA”) contracted through its selling agent, Weyerhaeuser, to sell 2,130 reels of printing paper to be manufactured in Sweden and shipped to the United States, to consignee, World Color Press (“WCP”), to be delivered to its facility in Dyersburg, Tennessee (“Dyersburg”). 5 The terms of the sale were “DDP,” which is an INCO-TERM for “Delivered Duty Paid,” and means that title to the paper and risk for its loss or damage transferred when the goods are put at the disposal of the buyer at the named place (seller bears all risks of the goods during the whole transport) — so that the risk would not transfer from SCA *1234 to WCP until the paper was actually delivered to the WCP warehouse in Dyersburg. See Plfs Tr. Ex. 83, 84, 85. The containerized cargo in question contained Swedish and German manufactured LWC offset magazine quality paper which was stored at the container yards at the State Docks when Hurricane Georges struck the Gulf Coast on September 28, 1998, causing the flooding which damaged the cargo carried by the MTV STAR FRASER 6 and the MTV STAR GRINDANGER vessels. 7

B. Parties

Plaintiff, Skandia Insurance Co., Ltd., (“Skandia”), is the subrogee to the rights of the consignee of the cargo in question and insured the cargo shipped by its assured SCA, Graphic Sundsvall AB (“SCA”), from Europe to Mobile, aboard the STAR FRASER. Plaintiffs, Haindl GMBH & Co. K.G., Parenco B.V., and Interot Speditions, GMBH, are the owners, consignees and/or successors in title to the cargo described herein. Plaintiff, Perkins-Goodwin Co., Inc., (“Perkins”), was the owner, consignee and/or successor entitled to the cargo which was carried by the M/V STAR GRINDANGER from Germany and The Netherlands, for final delivery to Nashville, Tennessee, Corinth, Mississippi, and Metarie, Louisiana, via Mobile, Alabama, pursuant to one or more bills of lading issued by and on behalf of Star Shipping AS d/b/a AtlaritiCargo. See Plfs Tr. Ex. 48, 49, 50.

Defendant, Star Shipping AS d/b/a At-lantiCargo (“Star”), was the ocean carrier of the cargo, under a through bill of lading. Defendant, Strachan Shipping Co., (“Stra-chan”), was engaged in the business of providing agency, terminal handling, and stevedoring services for Star, as Star’s local agent in Mobile. SCA Graphic Sundsvall AB (“SCA”) was the shipper of the cargo. SCA contracted through its selling agent, Weyerhaeuser Paper Co. (“Weyerhaeuser”), to sell 2,130 reels of printing paper to be manufactured in Sweden and shipped to the U.S., to WCP, to be delivered to its Dyersburg facility.

C. Combined Bills Of Lading & Harter Act Applicability

The controlling agreements between the shippers and carriers involved here, which govern the intermodal movement of the cargo, is the Combined Transport Bills of Lading drafted by Star. See Plfs Tr. Ex. 1, 2, 48, 49, 50. The Clause Paramount in the bills of lading, which were involved with both the STAR FRASER and STAR GRINDANGER cargo, reads in relevant part:

.... this bill of lading insofar as it relates to sea carriage by any vessel ... shall have effect subject to ... COGSA [which] shall apply to the carriage of goods by inland waterways and reference to carriage by sea in such Rules or legislation shall be deemed to include reference to inland waterways if and to the extent that the provisions of the Harter Act ... would otherwise be compulsorily applicable to regulate the carrier’s responsibility for the goods during *1235 any period prior to loading on or after discharge from the vessel the carrier’s responsibility shall instead be determined by the provisions of 4(2) below, but if such provisions are found to be invalid such responsibility shall be subject to COGSA.

See Plfs Tr. Ex. 2.

This Clause Paramount, for purposes of the carriage at issue here, incorporates the COGSA rules to “sea carriage by any vessel” and to “the carriage of goods by inland waterways” and for other periods during the intermodal carriage, “[t]he carrier’s responsibility shall instead be determined by the provisions of 4(2) below, but if such provisions are found to be invalid such responsibility shall be subject to COGSA.” Id.

Paragraph 4(2), entitled “Responsibility, Combined Transport,” also states that “[sjave as otherwise provided in this bill of lading, the carrier shall be liable for loss of or damage to the goods occurring from the time that the goods are taken into charge until the time of delivery to the extent set out below.” Id. Subparagraph (A) 8 does not at first glance appear to have direct application to the claims at issue because there is no dispute as to where or when the flooding damaged the STAR FRASER and STAR GRIND ANGER cargo. Subparagraph (B)(i), however, addresses where the loss or damage occurred shall be proved, and imposes Harter Act obligations on the carrier Star and its agent Strachan, because by its own language, the only national law of the United States which “would have applied if the merchant had made a separate and direct contract with the carrier” for terminal operation services at the State Docks would be the Harter Act. This is so because at the stage of the carriage when the losses involved in this action occurred, the cargo was in terminal storage at container yards at the State Docks and the provisions of COGSA would not have been compulsorily applicable. 9

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Bluebook (online)
173 F. Supp. 2d 1228, 2001 A.M.C. 1527, 2001 U.S. Dist. LEXIS 5240, 2001 WL 394874, Counsel Stack Legal Research, https://law.counselstack.com/opinion/skandia-ins-co-ltd-v-star-shipping-as-alsd-2001.