Van Ommeren Bulk Shipping B v. v. Cooper/T.Smith Stevedoring Co.

35 F. Supp. 2d 469, 1999 A.M.C. 918, 1999 U.S. Dist. LEXIS 1369, 1999 WL 66019
CourtDistrict Court, D. Maryland
DecidedFebruary 8, 1999
DocketCiv. AMD 98-407
StatusPublished
Cited by3 cases

This text of 35 F. Supp. 2d 469 (Van Ommeren Bulk Shipping B v. v. Cooper/T.Smith Stevedoring Co.) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Van Ommeren Bulk Shipping B v. v. Cooper/T.Smith Stevedoring Co., 35 F. Supp. 2d 469, 1999 A.M.C. 918, 1999 U.S. Dist. LEXIS 1369, 1999 WL 66019 (D. Md. 1999).

Opinion

MEMORANDUM

DAVIS, District Judge.

In this admiralty action plaintiff Van Om-meren Bulk Shipping B.V. (“Van Ommeren”) seeks indemnification from defendant Cooper/T. Smith Stevedoring Co., Inc. (“Cooper/T.Smith”) for damage caused to 15 *470 stainless steel coils shipped from Antwerp, Belgium to Baltimore, Maryland. Van Om-meren, the charterer of the vessel, settled the underlying damage claim with the consignee’s cargo underwriters for $57,000. Subsequently, Van Ommeren sued Cooper/T. Smith, the stevedore responsible for unloading the coils from the vessel, on theories of negligence, breach of contract and breach of warranty.

Pending before the court is Cooper/T. Smith’s motion for partial summary judgment, which seeks a declaration that its potential liability is limited to $7500. Specifically, Cooper/T. Smith argues that because the bill of lading and the United States Carriage of Goods at Sea Act, (COGSA), 46 U.S.CApp. § 1300 et seq., limit a carrier’s liability to $500 per package, and it is undisputed that each coil constituted one package and that 15 coils suffered damage before the consignee received them, Cooper/T. Smith’s potential liability can not exceed $7500. On the other hand, Van Ommeren argues that because a Belgian court (or other European court where it might have been sued) would have ignored the liability limits and the choice of law and forum selection provisions included in the bill of lading, its $57,000 payment to the consignee’s underwriters was reasonable. The issues have been thoroughly briefed and no hearing is necessary. Local Rule 105.6 (D.Md.1997). For the reasons discussed below, I will grant Cooper/T. Smith’s motion for partial summary judgment, limiting its potential liability to $7500.

I

The material facts are undisputed or, if disputed, shall be set forth in the light most favorable to plaintiff. Van Ommeren is a Dutch corporation and the charterer of the M/V SERAFIN TOPIC, the vessel involved in this litigation. It contracted with Avesta Sheffield, Ltd. (the shipper), a British company, for the shipment of 57 stainless steel skidded coils from Belgium to Baltimore in October 1995. The contract provided that the coils were to be shipped to Avesta Sheffield, Inc. (Sheffield), the consignee, a subsidiary of the shipper located in Illinois. The goods were shipped on the M/V SERAFIN TOPIC in November 1995. Van Ommeren engaged Cooper/T. Smith to discharge the coils from the ship in Baltimore. Shortly after their receipt, the consignee notified Van Ommeren that 15 of the steel coils were damaged. Van Ommeren alleges that the damage was caused, inter alia, by Cooper/T. Smith’s use of a “lifting gear consisting of flat chains rather than braided váre” to discharge the cargo. See Pl.’s Compl. ¶ 4.

The damage was assessed at $76,345. Sheffield’s cargo underwriters reimbursed Sheffield for the loss, and consequently sought to recover from Van Ommeren the full amount it paid for the claim. After negotiations with the underwriters, during which it received a general threat that suit would be filed absent settlement, Van Om-meren agreed to pay $57,000 to satisfy the claim. It then filed this indemnity action against Cooper/T.Smith.

The bill of lading contained the following clauses, inter alia, in pertinent part:

CLAUSE PARAMOUNT: This Bill of Lading shall have effect subject to the provisions of the carriage of goods by sea act of the United States, approved April 16, 1936, which shall be deemed to be incorporated herein and nothing herein contained shall be deemed a surrender by the Carrier of any of its rights or immunities or an increase of any of its responsibilities or liabilities under said act.... 1
LAW AND JURISDICTION: The Bill of Lading shall be construed according to the Laws of the United States, and the Shippers/Consignee and holder hereof agree that any suits against the Carrier shall be brought in the Federal Courts of the United States in the City of New York.
CARRIER’S LIMIT ON LIABILITY: In case of any loss or damage in connection with goods exceeding in value the equivalent of Dlrs 500 lawful money of the Unit *471 ed States per package or in the case of goods not shipped in packages, per shipping unit, the value of goods shall be deemed to be Dlrs 500 per package or per shipping unit, (emphasis added). 2

Thus, the bill of lading incorporates COG-SA as a contract term. COGSA also applies ex proprio vigore to the acts complained of herein because the alleged damage occurred during the discharge of goods from the ship at an American port. See 46 U.S.CApp. § 1300 (“Every bill of lading or similar document of title which is evidence of a contract for the carriage of goods by sea to or from ports of the United States, in foreign trade, shall have effect subject to the provisions of this chapter.”); 1301(e) (“[T]he term ‘carriage of goods’ covers the period from the time when the goods are loaded on to the time when they are discharged from the ship.”).

On its face, the liability limitation protection in COGSA and the bill of lading applies only to carriers. This protection, however, has been extended to stevedores, such as Cooper/T. Smith through “Himalaya Clauses.” 3 See Herd & Co. v. Krawill Machinery Corp., 359 U.S. 297, 302, 79 S.Ct. 766, 3 L.Ed.2d 820 (1959) (holding that although COGSA did not apply to stevedores, parties can contractually extend its application to “stevedores or other agents of the carrier ...”); Wemhoener, 5 F.3d at 742 (recognizing that the defendant stevedore was protected by a clause that “define[d] third party beneficiaries as subcontractors who take part in performance of the carriage”). The bill of lading between Van Ommeren and the shipper/consignee included a clause that extended all exemptions and limitations on liability to agents of the carrier. 4 Accordingly, Van Ommeren does not dispute that Cooper/T. Smith is entitled to the $500 liability limit per package if COGSA and the corresponding provision in the bill of lading were applied.

II

Pursuant to Fed.R.Civ.P. 56(c), summary judgment is appropriate “if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law.” Anderson v. Liberty, Lobby, Inc., 477 U.S. 242, 247, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). In considering a motion for summary judgment, the facts, as well as the inferences to be drawn therefrom, must be viewed in the light most favorable to the nonmovant. Matsushita Elec. Indust. Co. v. Zenith Radio Corp.,

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35 F. Supp. 2d 469, 1999 A.M.C. 918, 1999 U.S. Dist. LEXIS 1369, 1999 WL 66019, Counsel Stack Legal Research, https://law.counselstack.com/opinion/van-ommeren-bulk-shipping-b-v-v-coopertsmith-stevedoring-co-mdd-1999.