Justia Commercial Law Opinion Summaries
Articles Posted in Admiralty & Maritime Law
Ingram Barge Co., LLC v. Zen-Noh Grain Corp.
Zen-Noh purchased grain shipments. Sellers were required to prepay barge freight and deliver the product to Zen-Noh’s terminal but were not required to use any specific delivery company. Ingram, a carrier, issued the sellers negotiable bills of lading, defining the relationships of the consignor (company arranging shipment), the consignee (to receive delivery), and the carrier. Printed on each bill was an agreement to "Terms” and a link to the Terms on Ingram’s website. Those Terms purport to bind any entity that has an ownership interest in the goods and included a forum selection provision selecting the Middle District of Tennessee.Ingram updated its Terms and alleges that it notified Zen-Noh through an email to CGB, which it believed was “closely connected with Zen-Noh,” often acting on Zen-Noh's behalf in dealings related to grain transportation. Weeks after the email, Zen-Noh sent Ingram an email complaining about invoices for which it did not believe it was liable. Ingram replied with a link to the Terms. Zen-Noh answered that it was “not party to the barge affreightment contract as received in your previous email.” The grains had been received by Zen-Noh, which has paid Ingram penalties related to delayed loading or unloading but has declined to pay Ingram's expenses involving ‘fleeting,’ ‘wharfage,’ and ‘shifting.’” Ingram filed suit in the Middle District of Tennessee. The Sixth Circuit affirmed the dismissal of the suit. Zen-Noh was neither a party to nor consented to Ingram’s contract and is not bound to the contract’s forum selection clause; the district court did not have jurisdiction over Zen-Noh. View "Ingram Barge Co., LLC v. Zen-Noh Grain Corp." on Justia Law
Dimond Rigging Co. v. BDP International, Inc.
Dimond was hired by a Chinese manufacturer to “rig, dismantle, wash, and pack,” and ship used automotive assembly-line equipment to China. Dimond, which lacked experience in international shipment, hired BDP. Dimond asserted that BDP did not disclose that it was not a licensed Ocean Transport Intermediary by the Federal Maritime Commission. In May 2011, BDP informed Dimond that it had obtained a ship and sent a booking note to Dimond. Between May and October 2011, Dimond dismantled and weighed the equipment and prepared a “preliminary" packing list. BDP allegedly provided the preliminary packing list when it obtained quotes from third-party contractors to load the Equipment. In October 2011, BDP notified Dimond that the ship was no longer available. Dimond asserted that BDP “without Dimond’s knowledge, consent or approval” hired Logitrans to perform BDP’s freight forwarding duties. BDP and Logitrans hired a ship. As a result of many ensuing difficulties, Dimond became involved in multiple lawsuits, including suits with its Chinese customer and the stevedores. Dimond sued BDP in July 2013 but never served BDP with the complaint. When the summons expired, the district court dismissed without prejudice. In August 2017, Dimond filed a Motion to Amend and Praecipe for Issuance of Amended Summons for its 2013 suit. The Sixth Circuit affirmed the denial of the motion. The suit was not timely filed within the one-year statute of limitations set forth in the Carriage of Goods by Sea Act. View "Dimond Rigging Co. v. BDP International, Inc." on Justia Law
In re: World Imports LTD
WI buys furniture wholesale. OEC provided WI with non-vessel-operating common carrier transportation services. WI signed an Application for Credit that granted a security interest in WI property in OEC’s possession, custody or control or en route. As required by federal law, OEC also publishes a tariff with the Federal Maritime Commission, which provides for a Carrier’s lien. WI filed voluntary Chapter 11 bankruptcy petitions. OEC sought relief from the automatic stay, arguing that it was a secured creditor with a possessory maritime lien. OEC documented debts of $458,251 for freight and related charges due on containers in OEC’s possession and $994,705 for freight and related charges on goods for which OEC had previously provided services. The estimated value of WIs’ goods in OEC’s possession was $1,926,363. WI filed an adversary proceeding, seeking release of the goods. The bankruptcy court ruled in favor of WI, citing 11 U.S.C. 542. The district court affirmed, holding that OEC did not possess a valid maritime lien on Pre-petition Goods. The Third Circuit reversed, noting the strong presumption that OEC did not waive its maritime liens on the Prepetition Goods, the clear documentation that the parties intended such liens to survive delivery, the familiar principle that a maritime lien may attach to property substituted for the original object of the lien, and the parties’ general freedom to modify or extend existing liens by contract. View "In re: World Imports LTD" on Justia Law
Havens v. Mobex Network Servs., LLC
An Automated Maritime Telecommunications System (AMTS) is a U.S. communication service between land and vessels in navigable waterways, existing on specific broadcast frequencies. Advances in technology have greatly expanded the potential uses of AMTSs. Under the original site-based system, small geographic regions were defined by location and the waterway served and the FCC provided licenses at no cost to the first applicant. In 2000, the FCC stopped issuing site-based licenses and began issuing licenses by competitive bidding; it divided the U.S. into 10 regions and, at public auctions, sold “geographic” licenses for two blocks of AMTS frequencies in each region. Although geographic licensees may generally place stations anywhere within their region, they may not interfere with the functioning of existing site-based stations, so the location of a site-based station creates a gap in a geographic licensee’s coverage area. Plaintiffs obtained geographic licenses in areas overlaying pre-existing site-based licenses. Site-based operators refused to provide plaintiffs with the operating contours for their site-based locations within plaintiffs’ geographic locations. Plaintiffs filed suit, alleging violation of the Federal Communications Act and the Sherman Antitrust Act. The Third Circuit affirmed dismissal of the FCA claims and a determination that no antitrust conspiracy existed. Plaintiffs did not identify particular actions that were determined by the FCC to be unreasonable or unjust and, therefore, do not possess a private right of action. View "Havens v. Mobex Network Servs., LLC" on Justia Law
Cont’l Terminals, Inc. v. Waterfront Comm’n of N.Y. Harbor
In 1953, New York and New Jersey entered into the Waterfront Commission Act, establishing the Waterfront Commission of New York Harbor to govern operations at the Port of New York‐New Jersey. At that time, individual pieces of cargo were loaded onto trucks, driven to the pier, and then unloaded for loading, piece‐by‐piece, onto the vessel. Similarly, arriving cargo was handled piece-by-piece. Containerization transformed shipping: a shipper loads cargo into a large container, which is loaded onto a truck and transported to the pier, where it is lifted aboard a ship. Continental operates warehouses, including one at 112 Port Jersey Boulevard, Jersey City. Continental picks up containers from the Global Marine Terminal, transports them to the Warehouse, unloads them, and removes their contents. Continental stores the freight and provides other services, such as sampling, weighing. and wrapping. In 2011, the Commission advised Continental that it was required to obtain a stevedore license, concluding that the property line and building of the 112 Warehouse were within 1,000 yards of a pier. Continental sought a declaratory judgment. The Second Circuit affirmed the district court holding that Continental engages in stevedoring activities at the warehouse and that the warehouse is an ʺother waterfront terminalʺ under the Act and within the Commission’s jurisdiction. View "Cont'l Terminals, Inc. v. Waterfront Comm'n of N.Y. Harbor" on Justia Law
Barclays Bank PLC v. Poynter
Defendant bought a custom-made yacht with the help of a loan from Barclays Bank. When Defendant stopped making payments on the loan, Barclays repossessed the yacht and sold it pursuant to the Florida UCC. Barclays got less than what Defendant owed on the yacht, and therefore, Barclays sued Defendant for the deficiency. Defendant moved for summary judgment, arguing that Barclays was barred from recovering the deficiency because, in violation of the mortgage's terms, it did not provide Defendant with proper notice of the sale. The district court denied Defendant's motion and sua sponte granted summary judgment in favor of Barclays. The First Circuit Court of Appeals affirmed, holding that the notice Barclays provided to Defendant was sufficient. View "Barclays Bank PLC v. Poynter" on Justia Law
India Steamship Co. Ltd. v. Kobil Petroleum Ltd.
Plaintiff appealed from an order of the district court vacating the attachment, pursuant to Rule B of the Supplemental Rules for Admiralty or Maritime Claims and Asset Forfeiture Actions of the Federal Rules of Civil Procedure, of a check issued by the district court clerk made payable to defendant. At issue was whether the validity of a Rule B attachment of a treasury check issued from the Southern District's Court Registry Investment System (CRIS), representing the proceeds of electronic funds transfers whose attachment was vacated under Shipping Corp. of India Ltd. v. Jaldhi Overseas Pte Ltd. The court held that the jurisdictional defect that led to the vacatur under Jaldhi likewise precluded the attachment of the same funds in the CRIS. Accordingly, the judgment was affirmed. View "India Steamship Co. Ltd. v. Kobil Petroleum Ltd." on Justia Law
Lake Carriers’ Assoc. v. EPA
Trade associations representing commercial ship owners and operators petitioned for review of a nationwide permit issued by the EPA for the discharge of pollutants incidental to the normal operation of vessels. Petitioners raised a number of procedural challenges, all related to the EPA's decision to incorporate into the permit conditions that states submitted to protect their own water quality. The court held that because petitioners had failed to establish that the EPA could alter or reject state certification conditions, the additional agency procedures they demanded would not have afforded them the relief they sought. Accordingly, the court denied the petition for review.