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Kirby Engineering v. Norfolk Southern Railway Co.

71 F. Supp. 2d 1363 (1999)

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Kirby Engineering v. Norfolk Southern Railway Co.

United States District Court for the Northern District of Georgia
71 F. Supp. 2d 1363 (1999)

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Facts

Australian firm Kirby Engineering (Kirby) (plaintiff) sued Norfolk Southern Railway Company (Norfolk Southern) (defendant) for damages after equipment owned by Kirby was damaged when the Norfolk Southern train carrying it derailed in Alabama. Kirby had originally contracted with International Cargo Control, Pty Ltd. (ICC) to ship the equipment from Australia to Alabama. ICC contracted with ocean carrier Hamburg Sud to transport the equipment overseas to Savannah, Georgia. Hamburg Sud, via its subsidiary, contracted with Norfolk Southern to complete the final leg of transport from Georgia to Alabama via rail. After the derailment and damage occurred, Kirby sued ICC and Hamburg Sud in Australian court, as prescribed by the forum-selection clauses in Kirby’s contracts with ICC and Hamburg Sud. Kirby then sued Norfolk Southern in US federal court, and Norfolk Southern moved to enjoin Kirby from pursuing the parallel proceedings against ICC and Hamburg Sud in Australia, arguing that Norfolk Southern would suffer procedural disadvantages if forced to litigate in Australia and that the simultaneous proceedings were duplicative.

Rule of Law

Issue

Holding and Reasoning (Thrash, J.)

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