This case concerned a claim brought by the claimant, King Ocean Services Ltd (King) against the defendant, CI Mistic SAS Fruits & Vegetables LLC (Mistic) for failure to pay ocean freight and related charges; and counterclaims brought by Mistic against King for damage to two containers of plantains carried by King from Colombia to Florida. The containers were shipped under separate contracts of carriage, and King issued clean bills of lading for both shipments. In both bills of lading the parties agreed to extend the provisions of the Carriage of Goods by Sea Act (COGSA) to their business transaction as follows:
This bill of lading shall have effect subject to the provisions of the Carriage of Goods by Sea Act of 1936 of the United States of America, as amended ('COGSA'), which shall apply to the Goods whether carried on or under deck, to carriage of the Goods to, from or between U.S. ports, or between non-U.S. ports, before the Goods are loaded on and after they are discharged from the vessel, and throughout the entire time the Goods are in custody of Carrier, whether acting as carrier, bailee, terminal operator, inland carrier, stevedore. Carrier shall be entitled to any and all defenses and limitations on liability provided under COGSA and any other compulsorily applicable law for any and all claims arising out of Carrier's custody or control of the Goods. Carrier shall also be entitled to any and all defenses and limitations provided in Carrier's contracts with underlying water or land carriers and all such limitations and defenses are incorporated herein by reference.
Mistic asserts four causes of action: damage to cargo under COGSA (Count I), damage to cargo under the Harter Act (Count II), breach of warranties and non-delegable cargoworthiness duties (Count III), and negligence (Count IV). King seeks dismissal of the counterclaims as a whole, or alternatively, dismissal of Counts II, III, and IV.
Held: Counts II, III, and IV are dismissed.
'COGSA, when it applies, supersedes other laws' and 'provide[s] an exclusive remedy' for lost or damaged goods: Polo Ralph Lauren LP v Tropical Shipping & Constr Co Ltd 215 F 3d 1217, 1220 (11th Cir 2000) (CMI1536). Although 'COGSA governs bills of lading for the carriage of goods "from the time when the goods are loaded onto the time when they are discharged from the ship"' parties may extend COGSA's application by contract: Norfolk S Ry Co v Kirby 543 US 14, 29 (2004) (CMI1454).
Here, the parties agreed to extend COGSA coverage to include:
Goods whether carried on or under deck, to carriage of the Goods to, from or between U.S. ports, or between non-U.S. ports, before the Goods are loaded on and after they are discharged from the vessel, and throughout the entire time the Goods are in custody of Carrier, whether acting as carrier, bailee, terminal operator, inland carrier, stevedore.
The parties agree that COGSA applies to Mistic's claims, and Mistic alleges Counts II, III, and IV as 'alternative[s] to a COGSA claim'. Given the parties’ uncontested agreement to be bound by COGSA under the bills of lading; the extension of COGSA to apply throughout the entire time the goods were in King's custody; and since neither party contests COGSA's applicability to both shipments, Counts II, III, and IV are dismissed.