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OUR "E" Section: The Forwarder Broker World


7. New U.S. Transport Related Legal Cases

The United States Supreme Court
No. 99-1331
Lewis v. Lewis & Clark Marine, Inc.
States Have Jurisdiction Over Claims Against Vessel Owners
The U.S. Supreme Court held unanimously (opinion by O'Connor) that state courts may adjudicate claims against vessel owners so long as the owner's right to seek limitation of liability is protected under the Limitation of Liability Act (LLA). James Lewis (Lewis) filed a claim against Lewis & Clark Marine (Marine) for negligence in Illinois state court on state claims & under the Jones Act.  Federal courts have exclusive jurisdiction to determine limited liability under the LLA, but at the same time the LLA protects "all other remedies to which [suitors] are otherwise entitled."  28 U.S.C. s1333.  The Supreme Court granted certiorari to resolve this conflict in maritime laws.  The District court found two exceptions to exclusive federal jurisdiction, the 1st being where the value of the limitation exceeds the total value of all claims asserted against the vessel owner and the second being where there is a single claimant, and dissolved the injunction limiting Marine's liability in other related claims.  The Court held that the "just" course would be to allow Lewis to proceed with the claim in state court, but still retain jurisdiction over the petition for limitation of liability for further proceedings in federal court if necessary.  Thus the District Court properly exercised its discretion in dissolving the injunction that prevented Lewis from pursuing his claim in state court, staying Limitation Act proceedings.
http://www.laws/findlaw.com/us/000/99-1331.html

South Carolina State Ports Authority v. Federal Maritime Commission
Fourth Circuit Court of Appeals
March 12, 2001
Government Regulation: State sovereign immunity prevents a ship operator from bringing an administrative proceeding against the South Carolina State Ports Authority for alleged violations of the Shipping Act of 1984 as a result of the Authority's refusal to berth ships whose primary purpose is gambling. http://www.admiraltylawguide.com/circt/4thportsfmc.html

Texaco Exploration v. Amclyde Engineered Products
Fifth Circuit Court of Appeals
February 28, 2001
Arbitration/Procedure: Rule 14(c) of the Federal Rules of Civil Procedure, which allows for liberal joinder of 3rd parties in maritime cases, does not supersede the statutory right to enforce an arbitration clause pursuant to the Federal Arbitration Act, thus the District Court erred in failing to enforce an arbitration clause because its enforcement would deny a party the ability to implead a 3rd party pursuant to Rule 14(c). http://www.admiraltylawguide.com/circt/5thtexacoexplor.html

System Pipe & Supply v. M/V Viktor Kurnatovskiy
Fifth Circuit Court of Appeals
February 26, 2001
Procedure (Personal Jurisdiction): In determining whether the court had personal jurisdiction over defendant vessel owner for purposes of plaintiff's cargo damage claim invoking admiralty law, the District Court erred in only considering the vessel owner's contacts with Texas; because plaintiff's action arises under federal admiralty law, it need not prove minimum contacts with the state of Texas, but only with the U.S. as a whole. http://www.admiraltylawguide.com/circt/5thsystempipe.html

United States v. San Juan Bay Marina
First Circuit Court of Appeals
February 21, 2001
Government Regulation: Pursuant to the Rivers & Harbors Act of 1899, 33 U.S.C. ¤ 401, it has been the law for more than a century that no one may place obstructions into the navigable waters of the United States without authorization from the Army Corps of Engineers; the District Court thus correctly ordered defendants to remove piers and structures built on the navigable waters of the United States without the necessary permits. http://www.admiraltylawguide.com/circt/1stsanjuanbay.html

U.S. Titan Inc. v. Guangzhou Zhen Hua Shipping
Second Circuit Court of Appeals
February 15, 2001
Arbitration/Charter Parties: The District Court correctly held that the parties did not enter into an "ad hoc" agreement to arbitrate whether they had formed a charter party, but that they had formed a charter party that included an arbitration clause requiring London arbitration; Foreign Sovereign Immunity: although defendant vessel owner was a Chinese state-owned company, it was not immune from petitioner's action to compel arbitration in London in view of the Foreign Sovereign Immunity Act's arbitration exception. http://www.admiraltylawguide.com/circt/2ndtitan.html

City of Los Angeles v. Federal Aviation Administration
No. 99-70452 (02/14/01)
Before Circuit Judges Goodwin, Hug, Jr., and Hall
February 15, 2001
http://laws.lp.findlaw.com/9th/9970452.html
Administrative Law/Procedure: Neither 49 U.S.C. ¤ 46110(a) or 5 U.S.C. ¤¤ 701-06 grant the courts of appeal jurisdiction over review of Final Policy decisions made by the FAA. 5 U.S.C. ¤¤ 701-706 are the codification of section 10 of the Administrative Procedures Act, but section 10 does not confer subject matter jurisdiction. See Califano v. Sanders, 430 U.S. 99 (1976). The jurisdictional grant of 49 U.S.C. ¤ 46110 embraces only Air Commerce & Safety, and does not apply to final policy. Because the CityÕs action could have been filed originally in district court & transfer serves the interest of justice, this petition is transferred to the U.S. District Court for the Central District of California. TRANSFERRED.

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Written from wire stories, the Associated Press, Reuters, Hong Kong Shipping News Lloyds & other world sources.