Transportes Navieros y Terrestres S.A. v. Fairmount Heavy Transport N.V.

572 F.3d 96, 2009 AMC 2628 (2009)

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Transportes Navieros y Terrestres S.A. v. Fairmount Heavy Transport N.V.

United States Court of Appeals for the Second Circuit
572 F.3d 96, 2009 AMC 2628 (2009)

CS

Facts

Fairmont Heavy Transport N.V. (FHT) (defendant) caused a vessel to be arrested as security for a claim against a company that FHT wrongly believed owned the vessel. The vessel was in fact owned by Transportes Navieros y Terrestres S.A. (TNT) (plaintiff). Six months after the vessel was arrested, TNT first contacted FHT to assert ownership of the vessel and have the arrest lifted. FHT immediately arranged to have the arrest lifted. More than a year after the arrest was lifted, TNT brought suit in federal district court against FHT, claiming that TNT had suffered more than $10 million in damages from the wrongful arrest. The district court initially ordered an attachment of FHT’s property for the total amount of claimed damages. FHT filed a motion to vacate the attachment or to reduce the amount. The district court refused to vacate the attachment but granted the motion to reduce the amount. The court held that TNT’s failure to contact FHT regarding the wrongful arrest for six months amounted to a failure to mitigate damages and reduced the attachment of FHT’s property to $15,000, the amount the court reasoned TNT was likely entitled to recover. TNT appealed the reduction of the amount of the attachment.

Rule of Law

Issue

Holding and Reasoning (Katzmann, J.)

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