China National Chemical Import & Export Corp. v. M/V Lago Hualaihue

504 F. Supp. 684 (1981)

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China National Chemical Import & Export Corp. v. M/V Lago Hualaihue

United States District Court for the District of Maryland
504 F. Supp. 684 (1981)

Facts

China National Chemical Import & Export Corporation (China National) (plaintiff) owned a shipment of chemical fertilizer. China National shipped the cargo from the United States on the MV Sapporo Olympics. At the same time, the MV Lago Hualaihue (defendant) was moving commercial cargo from Chile to the United States. The Lago Hualaihue was part of the Chilean government’s commercial shipping fleet. The Lago Hualaihue collided with the Sapporo Olympics in international waters, causing approximately $1.5 million in damage to China National’s cargo. China National filed a maritime tort action pursuant to the Foreign Sovereign Immunities Act, arguing that the collision was due to negligence or the unseaworthiness of the Lago Hualaihue. The commercial shipping arm of the Chilean government filed a motion to dismiss, arguing that, under the act, it enjoyed sovereign immunity from China National’s suit.

Rule of Law

Issue

Holding and Reasoning (Thomsen, J.)

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