Gray•Duffy Obtains Summary Judgment in $4.2 Million Crane Accident Case

March 2010

Overview

Matthew S. Shorr, Esq. obtained a summary judgment in the U.S. District Court for the Southern District of New York, in which the Court dismissed a $4.2 million subrogation claim brought by St. Paul Travelers Insurance Co., Ltd. against the ocean carrier, crane operator and stevedores, when a 72 foot luxury yacht was damaged by a crane toppling over while the yacht was being offloaded from the M/V Madame Butterfly at the Port of Hueneme, California.

Discussion

St. Paul Travelers Ins. Co., Ltd. v. Wallenius Wilhelmsen, et. al.

This lawsuit was filed in the U.S. District Court for the Southern District of New York. Plaintiff St. Paul was the Subrogee insurer of a 2006 Sunseeker Predator 72 foot luxury yacht that was damaged when a crane toppled over while the yacht was being offloaded from the M/V Madame Butterfly at the Port of Hueneme, California. St. Paul brought the action against the ocean carrier, Wallenius Wilhelmsen Logistics, the crane operator, OST Trucks and Cranes, Inc., who was retained to assist in the discharge of the yacht from the weather deck of the vessel, and the stevedores responsible for offloading the yacht, Pacific Ro Ro Stevedoring LLC.

Mr. Shorr filed for Summary Judgment in favor of the crane operator firm that performed the discharge of the yacht from the vessel on the basis that the shipment, which originated in England, was governed by the ocean carrier’s Bill of Lading (or Sea Waybill, if you are interested in finding out more about the Bill of Lading you might want to check out somewhere similar to https://www.csatransportation.com/bill-of-lading) and the Carriage of Goods by Sea Act (“COGSA”) (46 U.S.C. Section 30701), and that under the Bill of Lading, the shipper agreed that all claims would be brought solely against the ocean carrier and claims against third parties would be precluded. It was also argued that any claims against the ocean carrier were limited to a $500.00 package limitation under COGSA. The District Court agreed, concluding that the governing contract of carriage was the ocean carrier’s Bill of Lading, that the plaintiff’s suits against third parties, including the crane operator, were precluded, and that the plaintiff’s recoverable damages against the ocean carrier was limited to $500.00.

Please Note: This article is necessarily general in nature and is not a substitute for legal advice with respect to any particular case. Readers should consult with an attorney before taking any action affecting their interests.