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Jain Irrigation System, Ltd. v. Chemcolit, Inc.

2000 WL 1802069 (2000)

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Jain Irrigation System, Ltd. v. Chemcolit, Inc.

United States District Court for the Southern District of Texas
2000 WL 1802069 (2000)

  • Written by Tanya Munson, JD

Facts

Jain Irrigation System, Ltd. (Jain) (plaintiff) purchased 700 metric tons of resin from Chemcolit, Inc. (Chemcolit) (defendant). Chemcolit contracted with Ocean Knight Shipping, Inc. (Ocean Knight) (defendant) to transport the resin from Houston, Texas, to Mumbai, India. Chemcolit sealed and locked containers that were presumed to be filled with resin. Ocean Knight issued bills of lading to Chemcolit, which stated that the containers were “said to contain” descriptions of the goods provided by Chemcolit. The containers were subsequently loaded onto vessels and transported to India. When the sealed containers arrived in India, they were opened to reveal that they contained 700 tons of soil, lumps of chemicals, and other waste material instead of the resin Jain purchased or what was described on the bill of lading. Jain rejected the containers. Jain brought suit against Chemcolit and Ocean Knight and alleged that Ocean Knight was liable for its damages resulting from the misdescription of the goods on the bill of lading. Ocean Knight moved for summary judgment, arguing that it was not liable because the bills of lading used the phrase “said to contain” and as a common carrier, Ocean Knight was not liable for the misdescribed goods under federal law.

Rule of Law

Issue

Holding and Reasoning ()

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