Nike Inc (Nike) hired Mitsui OSK Lines Ltd (MOL) to ship its sportswear from factories overseas to the United States. Nike shipped four containers through Mitsui's agent in America, MOL (America) Inc (MOL America), that were intended for the Academy Sports and Outdoors (Academy) in Katy, Texas. On 12 May 2017, MOL sent the four containers from Vietnam on its ship, the MOL Commitment; it arrived in Los Angeles on May 28, 2017. From there, BNSF Railway Co carried the containers from the ship and delivered them by train to Pearland, Texas, on 31 May 2017. MOL hired Hepta Run Inc (Hepta), a trucking company, to move the containers from the train to the Academy. On 7 and 8 June, Hepta accepted the four containers and stored them on its property. On 19 June, all four were stolen. MOL America sued Hepta for breach of bailment to recover the lost value of the containers, and moved for summary judgment on its bailment claim.

Held: Summary judgment granted. Hepta must pay MOL America USD 1,346,920.82.

MOL was responsible for merchandise lost or stolen while transporting the containers from the train to the Academy store. On 13 June 2019, MOL paid Nike USD 1,000,000 to settle Nike's claims about the stolen containers. Because MOL America is the agent for MOL in the US, it may sue on behalf of its parent corporation without joining it in the lawsuit. MOL America has standing to sue Hepta.

Hepta argues that the Carriage of Goods by Sea Act 46 USC §30701 (COGSA) applies, pre-empting MOL America's state law and bailment claims. Hepta also argues that COGSA limits Hepta's liability to USD 500 per package. Because four containers were stolen, Hepta contends that its liability in this case is limited to USD 2,000. COGSA limits the liability of carriers moving goods through American ports. It applies from the time that the cargo is loaded until it is removed from a ship, and does not supersede state law causes of action arising after this tackle-to-tackle period. MOL America's state law and bailment claims are not pre-empted because the containers were stolen after this period had expired. COGSA does not apply to theft in inland storage. Therefore, Hepta's liability is not limited to USD 500 per package.

MOL America made out a prima facie case of negligence on Hepta's part. Hepta admits that it received the four containers in good condition, and did not deliver them to the Academy. No evidence suggests that Hepta exercised the requisite care in storing the containers. It had no procedures to verify which drivers were leaving with which containers. The thief drove up to the gate, stole two tractors, hitched the four containers to the tractors, and drove away. The gate was not staffed, and no vehicles were logged as they entered and exited the property. Hepta took possession of more than USD 1,000,000 of merchandise but left the containers in an open air lot without security officers or alarms. The containers were secured by an entry gate with a combination lock. This was not requisite care.