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Royal Insurance Company of America v. Cineraria Shipping Co.

894 F. Supp. 1557 (1995)

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Royal Insurance Company of America v. Cineraria Shipping Co.

United States District Court for the Middle District of Florida
894 F. Supp. 1557 (1995)

Facts

Cineraria Shipping Company (Cineraria) (defendant) owned the MV Kalliopi II, a commercial cargo vessel docked in the port of Tampa Bay, Florida. The Kalliopi’s crew loaded the vessel with cargo for a voyage to Korea and made all necessary prevoyage inspections. The Kalliopi needed to be backed out of the bay by tugs before it could proceed using its own engines. The Kalliopi was backed out too far, and its rudder struck the bank of a channel. The master of the Kalliopi brought the ship back to its berth to assess the damage. The Kalliopi could not proceed with its voyage until the rudder was repaired, and the rudder could not be repaired with the cargo on board. The master ordered the cargo to be unloaded and stored on the dock while the rudder was repaired. Following the repairs, the Kalliopi was reloaded and completed its voyage. The unloading, storage, and reloading of cargo generated substantial costs. Cineraria declared general average with respect to these costs and sought contribution from the cargo owners. Royal Insurance Company of America (Royal) (plaintiff), an insurer of one of the cargo owners, filed suit in district court contesting its obligation to contribute, arguing that the situation did not constitute a general average event.

Rule of Law

Issue

Holding and Reasoning (Bucklew, J.)

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