Man Ferrostaal, Inc. v. M/V AKILI
763 F. Supp. 2d 599
| S.D.N.Y. | 2011Background
- Ferrostaal purchased and shipped 9,960 thin-walled steel pipes from Shanghai to New Orleans aboard the M/V Akili in 2006.
- Pipes were damaged due to allegedly improper stowage and handling during loading, transport, and discharge.
- The voyage involved multiple entities: Akili (ship), Akela (owner), Almi (vessel manager), and SM China (voyage charterer); SM China was later dismissed.
- Ferrostaal arranged surveys pre-loading, loading, discharge in New Orleans, and post-discharge in Pennsylvania to assess damage.
- Damages were assessed through surveys by Lu Jiangming (Shanghai), Salkeld (New Orleans), Calima and Coletti (Pennsylvania), with HTI performing repairs in Pennsylvania.
- The court conducted a nonjury trial on January 20, 2011, to determine liability and damages under maritime law (COGSA/Hague-Visby).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether COGSA applies to the shipment | Ferrostaal contends COGSA governs since Akili served as common carrier. | Defendants argue private carriage since the vessel was chartered entirely to Seyang. | COGSA applies; shipment is public carriage. |
| Who qualifies as carrier under COGSA | Akili, Akela, and Almi may be carriers; multiple parties can be liable. | Only those authorized as carriers should bear liability; Akela/Almi argue they are not carriers. | Akili is liable in rem as carrier; Akela and Almi not personally liable. |
| Liability for damage due to improper stowage | Damage resulted from improper stowage aboard Akili; burden shifts to defendants to show no on-board damage. | Any damage attributed to third-party ballast/conditions; burden on Ferrostaal to prove on-board fault. | Plaintiff established prima facie COGSA claim; Akili liable in rem for damage. |
| Damages and interest | Seek full damages including repair costs and diminished value; request prejudgment interest. | Argues limited damages. | Damages awarded as $313,373.49; prejudgment interest awarded at 2.236% from Oct 17, 2006; compound interest permitted. |
Key Cases Cited
- Associated Metals & Minerals Corp. v. S/S Jasmine, 983 F.2d 410 (2d Cir.1993) (COGSA/bill of lading considerations; carrier liability)
- Arktis Sky, 978 F.2d 47 (2d Cir.1992) (COGSA duty to properly load and discharge; carriers cannot contract out liability)
- Leather's Best, Inc. v. S.S. Mormaclynx, 451 F.2d 800 (2d Cir.1971) (limitations on private carriage exemptions under COGSA)
- Nichimen Co. v. M.V. Farland, 462 F.2d 319 (2d Cir.1972) (private vs public carriage; carrier liability distinction)
- Nissho-Iwai Co., Ltd. v. M/T Stolt Lion, 617 F.2d 907 (2d Cir.1980) (joint and several liability of ship owner and charterer under COGSA)
- Demsey & Associates, Inc. v. Steamship Sea Star, 461 F.2d 1009 (2d Cir.1972) (carrier status of charterer and vessel; bailment considerations)
- Argosy, 732 F.2d 299 (2d Cir.1984) (bill of lading binding ship when issued by charterer; limitations for NVOCC scenarios)