MSC Mediterranean Shipping Co SA (incorrectly sued as Mediterranean Shipping Co (USA) Inc) brought a motion to stay discovery pending a decision on its motion to dismiss the plaintiff's complaint. The plaintiff did not oppose the motion. The plaintiff commenced action on 8 November 2021 for breach of contract and breach of duty of care related to the ocean carriage of cargo, alleging that the defendant severely damaged a delivery of 1,100 boxes of yams that the plaintiff purchased from Ghana.
The defendant's motion to dismiss was based on two grounds: (1) The plaintiff sued the wrong entity, and (2) even if the defendant were the correct party, the plaintiff's claims were time-barred.
Held: The motion to stay is granted.
The defendant argues that the plaintiff's claims are time-barred pursuant to the Carriage of Goods at Sea Act, 64 USC ss 30701 ff (COGSA), which provides for a one-year statute of limitations. Clause 6.1 of the bill of lading expressly incorporates COGSA's statute of limitations. The cargo arrived on 21 October 2019, and the plaintiff did not commence this case until 8 November 2021. The plaintiff argues that the state law claims, which carry a six-year statute of limitations for breach of contract and three-year statute of limitation for negligence, survive any interpretation of COGSA. The defendant counters that COGSA, the exclusive federal law, pre-empts state law in this maritime/admiralty matter. 'COGSA governs the relationship between the parties to a bill of lading which is evidence of a contract for the carriage of goods by sea to or from ports of the United States': Alpina Ins Co Ltd v TransAm Trucking Serv Inc No 03 Civ 0740 (WHP), 2004 WL 1673310 *4 (SD NY 28 July 2004).
Claims arising pursuant to COGSA 'cannot be avoided by couching claims in terms of negligence or other common law causes of action': Miller Export Corp v Hellenic Lines Ltd 534 F Supp 707, 710 (SD NY 1982). Even if claims are brought as common law causes of action, COGSA pre-empts state law: Alpina *4. Claims arising under COGSA are subject to a one-year statute of limitations, commencing from the time of delivery. See 46 USC § 30701; see also Hangzhou Leather Prod Indus v Air City Inc No 96 CV 1590, 1997 WL 722700 *1 (ED NY 19 September 1997).
COGSA is the applicable governing law – the cause of action arises from the carriage of goods by sea to the United States. Thus, considering that the plaintiff commenced this action on 8 November 2021, over one year from the time of delivery of the allegedly damaged yams on 21 October 2019, the defendant's statute of limitations argument appears to have merit.