Ferrostaal, Inc. v. The Sea Phoenix

447 F.3d 212, 2006 AMC 1217 (2006)

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Ferrostaal, Inc. v. The Sea Phoenix

United States Court of Appeals for the Third Circuit
447 F.3d 212, 2006 AMC 1217 (2006)

Facts

Delaro Shipping Company (Delaro) owned the cargo ship Sea Phoenix (defendants). Delaro chartered the Sea Phoenix to Trans Sea Transport (TST) (defendant). TST entered into an agreement with a shipper, Tunisacier International, for the Sea Phoenix to be loaded with galvanized steel to be shipped to Philadelphia and consigned to Ferrostaal, Inc. (plaintiff) under a bill of lading. The steel was damaged by seawater during the voyage. Ferrostaal sued the Sea Phoenix, Delaro, and TST for the damages. Delaro and TST moved for partial summary judgment, claiming that under the Carriage of Goods by Sea Act (COGSA) their liability was limited to $500 per package. Ferrostaal argued that the $500 limit was unenforceable under a fair-opportunity doctrine because neither Delaro nor TST had provided Ferrostaal with notice of the $500-per-package limit or given Ferrostaal an opportunity to declare a higher value. The district court granted partial summary judgment, holding that COGSA applied and did limit Delaro and TST’s liability. Ferrostaal appealed.

Rule of Law

Issue

Holding and Reasoning (Barry, J.)

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