UNDERWOOD COTTON COMPANY, INC., Plaintiff-Appellant, v. HYUNDAI MERCHANT MARINE (AMERICA), INC.; Hyundai Merchant Marine Co., Ltd., Defendants-Appellees.
No. 01-55677.
United States Court of Appeals, Ninth Circuit.
April 26, 2002.
Argued and Submitted April 5, 2002
288 F.3d 405
AFFIRMED IN PART; REVERSED IN PART; REMANDED.
Kenneth F. Mattfeld, Los Angeles, California, (argued); Geoffrey W. Gill, Arter &
David R. Woolley, Woolley & Russell, Long Beach, CA, for the defendants-appellees.
Before: FERNANDEZ and RAWLINSON, Circuit Judges, and REED,* District Judge.
Opinion by Judge FERNANDEZ; Concurrence by Judge REED.
FERNANDEZ, Circuit Judge.
Underwood Cotton Company, Inc., brought this action against Hyundai Merchant Marine (America), Inc., and Hyundai Merchant Marine Co., Ltd. (collectively Hyundai). The district court granted Hyundai judgment on the pleadings1 on the basis that the Carriage of Goods by Sea Act (COGSA)2 applied and its provisions barred Underwood‘s action based upon the Federal Bill of Lading Act (Pomerene Act)3 because this action was not commenced “within one year after delivery of the goods or the date when the goods should have been delivered.”4
BACKGROUND
Underwood brought this action and alleged that it had sold cotton to Cosan
Underwood was understandably outraged, but it did not bring its action until February 25, 2000. After answering the first amended complaint, Hyundai moved for judgment on the pleadings on the basis that the action had not been brought within one year of delivery of the goods to Cosan. See
STANDARD OF REVIEW
The district court had jurisdiction pursuant to
We review the district court‘s dismissal of the complaint upon a motion for judgment on the pleadings de novo. See Arrington v. Wong, 237 F.3d 1066, 1069 (9th Cir.2001). By the same token, when the decision is based on statute of limitations grounds, we review that de novo. See Ellis v. City of San Diego, 176 F.3d 1183, 1188 (9th Cir.1999). We also review the district court‘s interpretation of a federal statute de novo. See Silver Sage Partners, Ltd. v. City of Desert Hot Springs, 251 F.3d 814, 819 (9th Cir.2001).
DISCUSSION
This is not really a case about the merits of Underwood‘s claims against Hyundai; it is a case about the timing of the commencement of the action. The question is whether COGSA‘s one year period for bringing an action applies to Underwood‘s claim that Hyundai improperly issued a bill of lading and then delivered the goods to the holder of that document.
As we approach this question, we must reconcile two COGSA provisions that, at first blush, might seem to be irreconcilable. COGSA declares that “[e]very 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.”
When we do, it seems apparent that the proviso simply seeks to give the Pomerene Act priority in case there is some direct conflict that might tend to dilute its provisions. But there is no risk of that here. Its provisions retain their full strength, and COGSA simply sets forth a time within which an action against the ocean carrier must be commenced, if those provisions are to be enforced. In other words, no part of the Pomerene Act is repealed, and application of its terms is not limited. What is limited is the time to assert that Act in court. That said, we must digress.
The time bar provisions in COGSA state that: “[i]n any event the carrier and the ship shall be discharged from all liability in respect of loss or damage unless suit is brought within one year after delivery of the goods or the date when the goods should have been delivered.”
If
We, instead, agree that
Moreover, we would perceive very little virtue in a system wherein many claims against carriers and related to ocean bills of lading (for example, failure to deliver the quantity or quality of listed goods) would be subject to
The propriety of this reading is underscored by the fact that we have simply and commonsensically applied
Finally, there is nothing about this reconciliation of COGSA‘s provisions that will impair the negotiability of bills of lading themselves or otherwise undermine the Pomerene Act‘s central concerns. Nothing will tend to undercut the requirement that the carrier is responsible for what it puts on the bill of lading. Rather, there is simply a requirement that an action to enforce whatever rights the shipper might have against the carrier be brought within a time certain. All parties can look to a single filing period as far as a claim against an ocean carrier is concerned, whether that claim is for failure to issue a proper bill of lading, or for damage to the goods, or loss thereof, or asserted improper discharge thereof, or misdelivery, or whatever. Far from creating uncertainty, that results in an easily knowable regime. Thus, it helps to assure the smooth trade relations that both COGSA and the Pomerene Act were designed to foster.
In so holding, we do not overlook Underwood‘s assertion that it should not be bound by COGSA because it did not receive the bill of lading in the first place, although it should have. However, that makes little difference here and does not affect our conclusion. The simple fact is that Underwood does assert rights pursuant to the law that surrounds bills of lading, and where ocean carriage and an action against the carrier are concerned, that includes the effect of COGSA. Surely Underwood was not misled in that respect. It was well aware of the nature of the transaction in question, and cannot use the misissuance of the bill of lading (if it was misissued) and the misdelivery of the goods (if they were misdelivered) as a way of evading the effect of COGSA. See Stolt Tank Containers, Inc. v. Evergreen Marine Corp., 962 F.2d 276, 277, 279 (2d Cir.1992). That is to say, because Underwood is undeniably suing pursuant to the Pomerene Act itself, it cannot simultaneously argue that COGSA‘s filing period should not apply in this instance.8
CONCLUSION
We hold that the
While we recognize that our conclusion is not apodictic, we are of the opinion that it makes a great deal of sense, and we would truly find ourselves in the midst of a dilemma were we to search for an inexorably logical solution in this instance. Here, after asking ourselves about the effect of various approaches, we must settle for a solution that is somewhat more heuristic, but nonetheless compelling in the long run. If COGSA and the Pomerene Act seem to present a Gordian knot when they are laced together, rigorous logic alone is not the only way to untie it. Rather, in this case logic is complemented by history, good sense, and the need for a workable commercial answer. In fine, by applying
AFFIRMED.
REED, District Judge, concurring in the judgment.
I respectfully concur in the result. I write separately because it is my view that simply by applying canons of statutory construction we can arrive at the conclusion that COGSA‘s proviso against “repealing” or “limiting” the Pomerene Act does not preclude application of its one year time bar to Underwood‘s claims.
The issue we confront is whether COGSA‘s one year statute of limitations can be applied to a Pomerene Act claim in light of the express proviso in COGSA that it is not meant to limit application of the Pomerene Act. COGSA applies to “every bill of lading” which is “evidence of a contract for the carriage of goods by sea.”
Recognizing that COGSA sections
Our analysis under general rules of statutory construction begins with “the language of the statute.” Bailey v. United States, 516 U.S. 137, 144, 116 S.Ct. 501, 506, 133 L.Ed.2d 472 (1995). When interpreting the statutory text, we “consider not only the bare meaning of the word but also its placement and purpose in the statutory scheme.” Id. at 145, 116 S.Ct. 501. Where the plain language of a statute is ambiguous, a court may go beyond the words of the statute and examine the legislative history that may explain or elucidate it. United States v. Davidson, 246 F.3d 1240, 1246 (9th Cir.2001). In examining the legislative history of a statute, however, our function is to determine the intent of the legislature, “not to rewrite the statute based on our notions of appropriate policy.” Id. (citations omitted).
We begin, then, with a look at COGSA section
Rules of statutory construction, however, allow us to look further to the purpose and placement of the text. See Davidson, 246 F.3d at 1246. When we do so, the scope of the proviso becomes less clear. Section
Such a bill of lading shall be prima facie evidence of the receipt by the carrier of the goods as therein described in accordance with paragraphs (3)(a), (b), and (c), of this section: Provided, That nothing in this chapter shall be construed as repealing or limiting the application of any part of sections 81 to 124 of Title 49.
Thus, on one hand, the proviso states that COGSA is not meant to affect the application of any section of the Pomerene Act. On the other hand, that it appears as a clause, qualifying a specific COGSA provision regarding the evidentiary value of a bill of lading, casts doubt as to whether Congress intended it to uniformly except a Pomerene Act claim from any and all of COGSA‘s limitations or whether it was meant to merely preserve the Pomerene Act with respect to the clause under which it was placed in section
To resolve this ambiguity, we move to the second stage of statutory analysis, that is, whether legislative history can clarify the intended meaning of the text. See Davidson, 246 F.3d at 1246. Although legislative history on COGSA is scant, it is useful to reconcile the contradictions we face here. The limitation in section
The foregoing amendment is intended to preserve in effect the provisions of the Pomerene Act which hold a carrier liable for receipt of goods signed for by its representatives even though they may not actually have been received, this provision of the Pomerene Act having been found necessary to prevent abuses that were being practiced with damage resulting due to the negotiable character of the bill of lading.
. . .
Prior to the enactment of the Pomerene Act a number of cases had arisen in which shippers had induced representatives of common carriers to sign bills of lading receipting for illustration for a certain number of bales of cotton, on the shipper‘s assurance that the cotton would later be delivered to the carrier. The shipper would then dispose of the bill of lading through the usual discounting procedure. . . . The courts held the fact that the goods had not actually been received to be an adequate defense to relieve the common carrier of liability. This loophole led to frauds on a large scale until the Pomerene Act finally made them impossible. . . . All interests concerned appear to agree upon the importance of preserving this effect of the Pomerene Act.
Senate Comm. on Commerce, Carriage of Goods by Sea Act, S.Rep. No. 74-742, at 1-2 (1935), reprinted in 1 Michael F. Sturley, Ed., The Legislative History of The Carriage of Goods by Sea Act And The Travaux Preparatoires of The Hague Rules 531, 532 (1990).
This glance into the history of the bill sufficiently explains what Congress contemplated when it added the proviso regarding the Pomerene Act. It was meant to preserve a specific provision of the Act that makes a carrier liable for damages caused by “nonreceipt by the carrier of any part of the goods by the date shown in the bill or by failure of the goods to correspond with the description contained in the bill.”
Although Congress could have been more clear when it drafted the proviso, I believe that the legislative history adequately resolves the conflict between the two statutes. What was on Congress’ mind was the preservation of the validity of the terms contained in a bill of lading, regardless of their accuracy. There is no mention of keeping the Pomerene Act free of COGSA‘s statute of limitations or any of the other defenses for which it provides. See, e.g.,
Therefore, from my perspective, the inquiry ends here. Bypassing the route of weighing what policy we deem best, we can arrive at the conclusion that COGSA‘s one year statute of limitations does apply to an action brought under the Pomerene
FERNANDEZ
Circuit Judge
REED
District Judge
