Rationis Enterprises Inc. of Panama v. Hyundai Mipo Dockyard Co., Ltd.

426 F.3d 580 (2005)

From our private database of 45,900+ case briefs, written and edited by humans—never with AI.

Rationis Enterprises Inc. of Panama v. Hyundai Mipo Dockyard Co., Ltd.

United States Court of Appeals for the Second Circuit
426 F.3d 580 (2005)

Facts

The Nihon was a cargo ship built in Sweden by Brostrom Shipping Co., Ltd. (Brostrom), a Swedish firm, in 1972. In 1984, Brostrom contracted with Hyundai Mipo Dockyard Co., Ltd. (Hyundai) (defendant) to elongate the ship by 15 feet by welding in a new midsection based on specifications established by Lloyd’s Register, an international risk-management concern for ships. In 1985, an inspection revealed fatigue cracks in some of the welds. Hyundai offered to repair the welds, but Lloyd’s determined that the ship would be observed and examined for a period. The ship was ultimately put back in service by various owners, the final owner and operator being Rationis Enterprises Inc. of Panama and Mediterranean Shipping Co., S.A. of Geneva (MSC), which renamed the ship the MSC Carla. In 1997, the ship encountered a heavy storm, and a large wave caused the ship to break in two, with the front end dropping off at the Hyundai weld seam. A dispute emerged regarding whether the weld or an improperly maintained hull failed, precipitating the breakage. Rationis and MSC brought a limitation of liability action in the United States District Court for the Southern District of New York. The lost-cargo claimants filed cross-complaints against Hyundai, alleging defective work in extending the ship’s length. In defense, Hyundai pleaded that the law of Korea, Sweden, or Panama applied. Four years into the litigation, Hyundai filed a motion for summary judgment, claiming that Korean law applied and that Hyundai could not be held liable under Korean law. The district court denied the motion, asserting that Hyundai had failed to plead the applicable law adequately and waived the assertion that Korean law applied. After the trial, the court found Hyundai liable in strict liability and negligence. Hyundai appealed the decision to the United States Court of Appeals for the Second Circuit on various grounds, but the court focused exclusively on the application of foreign-law issues.

Rule of Law

Issue

Holding and Reasoning (Parker, J.)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 741,000 law students since 2011. Some law schools—such as Yale, Berkeley, and Northwestern—even subscribe directly to Quimbee for all their law students.

    Unlock this case briefRead our student testimonials
  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students.

    Learn about our approachRead more about Quimbee

Here's why 741,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 45,900 briefs, keyed to 984 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.

Access this case brief for FREE

With a 7-day free trial membership
Here's why 741,000 law students have relied on our case briefs:
  • Reliable - written by law professors and practitioners, not other law students
  • The right length and amount of information - includes the facts, issue, rule of law, holding and reasoning, and any concurrences and dissents
  • Access in your class - works on your mobile and tablet
  • 45,900 briefs - keyed to 984 casebooks
  • Uniform format for every case brief
  • Written in plain English - not in legalese and not just repeating the court's language
  • Massive library of related video lessons - and practice questions
  • Top-notch customer support

Access this case brief for FREE

With a 7-day free trial membership