C-ART, Ltd. v. Hong Kong Island Lines America

940 F.2d 530 (1991)

From our private database of 46,100+ case briefs, written and edited by humans—never with AI.

C-ART, Ltd. v. Hong Kong Island Lines America

United States Court of Appeals for the Ninth Circuit
940 F.2d 530 (1991)

Facts

C-ART, Ltd. (plaintiff) was a Hong Kong-based exporter. From January 1986 to March 1986, C-ART sold multiple shipments of goods to New York Merchandising Company (NYMCO) using Hong Kong Island Lines America, S.A. (HKIL) (defendant) as the carrier. When C-ART transferred goods to HKIL for shipment, HKIL issued a bill of lading that described the goods being shipped and stated that the goods would be released to NYMCO only when NYMCO presented the original bill of lading to HKIL at the point of delivery. C-ART would give the original bills of lading to a bank in exchange for NYMCO’s payment, and the bank would send the original bills of lading to NYMCO, so that NYMCO could claim the goods at the point of delivery. However, the parties’ course of dealing differed from the written terms of the bills of lading in that NYMCO would not wait for the original bills of lading and would instead present bank guarantees to HKIL, which would then release the goods to NYMCO. In a final instance in March 1986, HKIL released the goods to NYMCO after receiving only a corporate guarantee from NYMCO instead of a bank guarantee. Shortly afterward, NYMCO went bankrupt, and C-ART never received payment for the final shipment. C-ART sued NYMCO to recover damages, claiming misdelivery. The trial court awarded damages to C-ART, and NYMCO appealed.

Rule of Law

Issue

Holding and Reasoning (Scudder, J.)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 748,000 law students since 2011. Some law schools—such as Yale, Berkeley, and Northwestern—even subscribe directly to Quimbee for all their law students.

    Unlock this case briefRead our student testimonials
  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.

    Learn about our approachRead more about Quimbee

Here's why 748,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 46,100 briefs, keyed to 987 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.

Access this case brief for FREE

With a 7-day free trial membership
Here's why 748,000 law students have relied on our case briefs:
  • Reliable - written by law professors and practitioners, not other law students
  • The right length and amount of information - includes the facts, issue, rule of law, holding and reasoning, and any concurrences and dissents
  • Access in your class - works on your mobile and tablet
  • 46,100 briefs - keyed to 987 casebooks
  • Uniform format for every case brief
  • Written in plain English - not in legalese and not just repeating the court's language
  • Massive library of related video lessons - and practice questions
  • Top-notch customer support

Access this case brief for FREE

With a 7-day free trial membership