Royal & Sun Alliance Insurance, PLC v. Ocean World Lines, Inc

[B]Date Decided[/B]: Jul 20th, 2010
[B]Decided By[/B]: U.S. Court of Appeals, Second Circuit (Federal)
[B]Court[/B]: 2d Cir.
[B]Citation[/B]: 612 F.3d 138
This is a COGSA case addressing the choice of law between the CarmackAmendment and COGSA for an intermodal shipment beginning overseas and ending inthe United States. The case wasdecided on the heels of the Supreme Court case Regal-Beloit. This case is significant because it isthe first Circuit Court opinion addressing the Regal-Beloit decision. “Owl”, an NVOCC, issued an intermodalbill of lading to “White Horse” (the shipper) – for the shipment of a printingmachine from Germany to Bourbon, Indiana. Owl contracted with “Yang” and “Djuric” (carriers) to move thepackage. Yang was the oceancarrier, and Djuric was the motor carrier. Djuric did not issue its own bill of lading. Owl’s bill of lading contained a ClauseParamount and a Himalaya Clause – extending COGSA’s $500 per package limitationthroughout the entire journey and to third parties who carried the package infurtherance of its delivery. Ultimately,the package (the printing press) was ultimately destroyed when a truck carryingit crashed into an overpass during its journey through the U.S. Plaintiff, Owl’s insurance coverageprovider, subrogated and sued Owl and the other two carriers. Plalintiff sought to break the $500 perpackage limitation. Plaintiffalleged that Carmack, and not COGSA, applied of its own force because thepackage was damaged en route via highway through the U.S. Plaintiff also challenged thecontractual validity of the Clause Paramount and Himalaya Clauses. Read More…