The Cargo Letter

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Section E: The Forwarder Broker World


OUR "E" Section: The Forwarder Broker World


7. New U.S. Transport Related Legal Cases

Project Hope v. Neptune Orient Lines
Second Circuit Court of Appeals
May 4, 2001
Carriage of Goods: the district court properly found that the land carrier of shipment from Winchester, VA to Egypt via the port of Norfolk, Virginia was jointly & severally liable for cargo damage pursuant to the Carmack
Amendment, 49 U.S.C. § 14706; Damages: damages under the Carmack Amendment should generally be based on the fair market value, but they need not be if circumstances suggest a more appropriate alternative, which in this case was properly the replacement cost of the damaged goods.
http://www.admiraltylawguide.com/circt/2ndprojecthope.html

Submersible Systems v. Perforadora Central
Fifth Circuit Court of Appeals
May 4, 2001
Procedure (Personal Jurisdiction): claims falling within admiralty jurisdiction of federal courts are claims "arising under federal law" for the purposes of Rule 4(k)(2) of the Federal Rules of Civil Procedure, which provides that "serving a summons or filing a waiver of service is also effective, with respect to claims arising under federal law, to establish personal jurisdiction over the person of any defendant who is not subject to the courts of general jurisdiction of any state"; Rule 4(k)(2) requires a court to consider a defendant's contacts with the U.S. as a whole, which in this case did not confer personal jurisdiction since defendant's contacts with the U.S. were not "continuous & systematic"; Maritime Attachment: the district court was correct in denying  plaintiff's application for a Rule B attachment since plaintiff failed to file an affidavit concerning the presence of the defendant within the district as required by Rule B.
http://www.admiraltylawguide.com/circt/5thsubmersible.html

Corrada Betances v. Sea-Land Service
First Circuit Court of Appeals
May 3, 2001
Labor Law: the district court entered summary judgment dismissing plaintiff's wrongful discharge claim based on the following undisputed facts: At the end of his shift on April 21, 1997, Plaintiff left Sea-Land's premises with a fellow supervisor. The pair visited various watering holes, imbibing as they went. Five hours later, they returned to Sea-Land's premises for a car, but did not simply drive away, but, rather, entered the Marine Dept. office (where staff at work there) & engaged in raucous behavior. On April 22, Plaintiff was suspended for 2 weeks. On Nov. 11, 1997, Plaintiff called the office to say that he would be late for work. When he arrived, he was wearing the same clothes that he had been wearing the day before & a fellow supervisor smelled a strong odor of alcohol on his breath. Various coworkers noticed slurred speech, bloodshot eyes, slumped posture, & other indicia of inebriation. The marine manager spent a few minutes with Plaintiff, obviously disliked what he saw, told Plaintiff that he was in no shape to work, & ordered him to leave the premises. The next day, Sea-Land terminated Plaintiff's employment. Noting that "there is little point in attempting to reinvent a well-fashioned wheel", the First Circuit "declined the invitation" to reverse the district court's summary dismissal of Plaintiff's wrongful discharge claim.
http://www.admiraltylawguide.com/circt/1stbetances.html

La Reunion Francaise v. Barnes
Ninth Circuit Court of Appeals
May 3, 2001
Marine Insurance/Admiralty Jurisdiction: a federal court has admiralty jurisdiction over a marine insurance policy that, besides covering damage to a boat while on the water, requires the policyholder to store his boat on land for half the year, insures against theft while on land, and limits navigation of the boat to inland waters of California.

Brusco Tug & Barge v. NLRB
District of Columbia Court of Appeals
May 1, 2001
Labor Law: the National Labor Relations Board rejected owner's argument that mates on its tugboats are supervisors within the meaning of the National Labor Relations Act, & found that owner, by interfering with its mates' right to organize, had committed an unfair labor practice; but, because the Board failed adequately to explain its decision, the Circuit Court denied enforcement & remanded for further proceedings. http://www.admiraltylawguide.com/circt/dcbrusco.html

American Stevedoring Ltd. v. Marinelli
Second Circuit Court of Appeals
April 26, 2001
Longshore and Harbor Workers' Act: respondent qualified for permanent total disability benefits under the Act because: (i) he was engaged in "maritime employment," 33 U.S.C. § 902(3); (ii) an employer- employee relationship existed, id. §§ 902(2), 902(3), 902(4); (iii) his injury was causally related to his employment, id. § 902(2); and (iv) his injury rendered him permanently & totally unable to perform his job, id. §§ 902(10), 908(a).
http://www.admiraltylawguide.com/circt/2ndamsteve.html

Orsini v. O/S Seabrooke
Ninth Circuit Court of Appeals
April 24, 2001
Settlement Agreements/Releases/Jones Act: courts scrutinize the validity of a seaman's release under principles of admiralty law analogous to the duty owed by a fiduciary to a beneficiary, not solely under principles of contract law; the Supreme Court in Garrett v. Moore-McCormack Co.  established a 2 part test in determining the enforceability of a seaman's release: (1) whether the release was executed freely, without deception or coercion; & (2) whether it was made by the seaman with full understanding of his rights; in applying the 2nd part of this test, a court considers adequacy of the consideration, the nature of medical advice available to the seaman at the time of signing the release & the nature of legal advice available to the seaman at the time of signing the release; in applying this test, the Circuit Court declined to enforce the seaman's release since Plaintiff had no independent legal advice & the medical advice he received before signing the release was inaccurate.

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