Claris Law Legal Blogging Community

Name:

E-mail:

Phone Number:

Zip Code:

Your Question:

Editor: Rod Sullivan
Profession: Maritime Attorney

Category: Supreme Court Rulings

Claims for damage to cargo shipped in international commerce are governed by the United States Carriage of Goods by Sea Act which is the U.S. enactment of the the Hague Rules. Some of its key features is that a shipowner is liable for cargo damaged from "hook to hook", meaning from loading to discharge, unless it is exonerated under one of 13 exceptions to liability such as "Act of God", inherent nature of the goods, errors in navigation and management of the ship (not the cargo) etc. A shipowner is generally entitled to limit its liability to $500 per package. The statute of limitations is one year.

Many shipowners are manipulating the terms on their bills of lading to take advantage of the $500 limitation and limit their liablility to $500 per container. However, an ancient statute is now being used to combat that trend. It provides that if shipowners do not properly describe the cargo on the bill of lading, they can be fined $2000 per bill of lading, with half going to the federal government and half going to the cargo owner.

At least on Pennsylvania based clothing manufacturer is seeking millions in damages from Tropical and Crowley for listing containers with 5000 or more men's suits as "1 package."

The case is currently filed in the Middle District of Florida.