Continental Insurance Co. v. Polish Steamship Co.

346 F.3d 281, 2003 AMC 2718 (2003)

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Continental Insurance Co. v. Polish Steamship Co.

United States Court of Appeals for the Second Circuit
346 F.3d 281, 2003 AMC 2718 (2003)

CS

Facts

Polish Steamship Co. (PSC) owned the cargo ship Ziemia Suwalska (defendants) and chartered the vessel to Trans Sea Transport (TST). The charter agreement contained an arbitration clause. TST entered into a contract to carry steel cargo belonging to Trade-Arbed on the chartered vessel. The bills of lading for the carriage of that cargo expressly incorporated the charter agreement. When the steel was damaged during the voyage, Trade-Arbed collected cargo insurance from Continental Insurance Co. (plaintiff). Continental Insurance as a subrogee sued PSC and the Ziemia Suwalska to recover the amount Continental Insurance paid to Trade-Arbed. PSC moved to dismiss the action for improper venue, claiming that the incorporation of the charter agreement into the bills of lading required that the action go to arbitration. The district court granted PSC’s motion to dismiss. Continental Insurance appealed.

Rule of Law

Issue

Holding and Reasoning (Calabresi, J.)

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