FI L ED U.S. COURT OF APPEAL S EL EVENTH CI RCUI T FEB 26, 2010 J OHN L EY CL ERK [DO NOT PUBLISH]

IN THE UN ITED STATES COURT OF APPEALS

FOR THE ELE VENTH CIRCUIT

__ __ __ __ __ __ __ __ __ __ __ __
No. 0 9- 12 99 0 Non -Arg um en t Ca le nd ar

__ __ __ __ __ __ __ __ __ __ __ __ D.C. Dock et No. 0 7- 21 51 6- CV-AMS

CHANNA IMPORTS, INC.,

Pl ai nt iff -Ap pe ll an t,

ve rs us

HYBUR, LTD.,

Defen da nt -Ap pe ll ee.

__ __ __ __ __ __ __ __ __ __ __ __ App eal fro m

th e Uni te d S ta te s Di st ric t Co ur t fo r th e So ut he rn Dis tri ct of F lo rid a

__ __ __ __ __ __ __ __ __ __ __ __ (Feb ru ary 26 , 20 10 )

Befo re TJ OFLAT, W ILSON an d C OX, Circ ui t J ud ge s.

PER CURI AM:Ch an na Im po rts , In c. br ou gh t th is su it ag ai ns t Hy bu r, Ltd

. an d Ocean Exp res s,

Ltd

. fo r th e lo ss of or ie nt al carp et s al le ge d to be va lu ed at $ 2 0 7,9 68 .11

. The 1

Mag is tra te Ju dg e gr an te d Hy bu r’s m ot io n fo r pa rti al su m m ary jud gm en t, fin di ng th at

e a ch in di vi du al or ie nt al carp et di d no t co ns ti tu te a pa ck ag e un de r th e Carr ia ge of

Goo ds by Sea Act (“ COGSA”). Fo ll owi ng a be nc h tri al
, th e Mag is tra te Ju dg e fo un d 2

th at Ch an na di d no t pr ov e a sh or ta ge of carp et s at ou tt ur n. Ch an na ap pe al s. Afte r

rev ie w, we affi rm

on bo th is su es

.
Ch an na is in th e bu si ne ss of se ll in g ori en ta l carp et s. Ch an na co nt ract ed wit h

Ocean Exp res s to tra ns po rt carp et s from Ch an na ’s wareh ou se in Mi la no , Ita ly to an

affi li at e’s wareh ou se in Co zu m el
, Mex ic o. Ocean Ex p res s, in tu rn , su b- co nt ract ed

wit h Hy bu r an d ot he r carr ie rs

. Hy bu r ag reed to tra ns po rt a sh ip m e nt of th e carp et s
by sea fr om

Po rt Ev erg la de s, Fl or id a to Pu ert o M or el os , Mex ic o.

On May 8, 20 06
, a tru ck in g co m pa ny hi red b y O cean Exp res s lo ad ed th e

carp et s in to a fo rty-foo t c o n t a i n e r at Ch an na ’s wa reh ou se in or de r to tra ns po rt it to

a po rt in Gen ev a, Ita ly. The carp et s were pa ck ag ed in th e fo ll owi ng way

. Fi rs t, each

carp et was fo ld ed an d th en st ack ed on a woo de n pa ll et

. W he n th e st ack reac he d on e

m et er in he ig ht
, th e pa ll et was cl os ed

. Each pa ll et was co ve red wit h pl as ti c in or de r

The district cour

t dismi ssed the cla ims ag ainst Oce an Express. 1
The pa rties conse nted to a dec ision by the Mag istrate Judge. ( R.1-20) (R.1-21)

. 2

2to ke ep th e car pe ts dry, and th en sec ur ed wit h s tra pp in g m at eri al . (R.1- 38 at 2.) In

al l, th ere were twen ty pa ll et s co nt ai ni ng 1,8 34 carp et s. ( Id

. at 3.) The twen ty pa ll et s

were pl aced in on e sh ip pi ng co nt ai ne r. Th e d r i v e r a ffi xe d a whi te se al to th e

co nt ai ne r, an d th e ne xt da y , th e co nt ai ne r arri ve d at th e po rt in Gen ev a. On May 17
,

20 06
, th e co nt ai ne r was lo ad ed on to th e Barc el on a Exp res s, an d on Ju ne 1, 20 06
, th e

co nt ai ne r arri ve d a t t he Po rt o f Mi am i, Fl or id a. On Ju ne 7, 20 06 , a carr ie r hi red by

Ocean Exp res s m ov ed th e co nt ai ne r to Hy bu r’s sh ip pi ng faci li ty in Po rt Eve rg la de s,

Fl or id a, whe re Hy

bu r acce pt e d th e sh ip m en t. Hy bu r th en pl aced a se co nd se cu rit y

se al on th e co nt ai ne r pu rs ua nt to it s or di na ry bu si ne ss pr act i c e

. (R.1 -6 2 at 8.) The

co nt ai ne r was in Hy

bu r’s te rm in al fo r fiv e da y s; th e te rm in al is pr ot ect ed by se cu rit y

gu ard s an d ba rb ed wire fen ci ng

. ( Id

. at 9.) Add it io na ll y , th e co nt ai ne rs are st or ed in

su ch a way th at al l co nt ai ne rs , ex cep t th e la st on e on th e bo tt om ro w, can no t be

op en ed

. ( I

d

. ) O n Ju ne 12 , 2 00 6, th e co nt ai ne r was lo ad ed on to th e ve ss el Arg os y ,
whi ch de pa rte d to Pu ert o Mo rel os

. ( Id

. at 10 .) Hy

bu r is su ed th e bi ll o f la di ng

nu m be red PEVMEX08 64 0 on Ju ne 13 ; it in di cat ed th at bo th se al s were in ta ct

. The

he ad in g on th e bi ll of la di ng en ti tl ed “ Des cri pt io n of Pack ag es ” id en ti fie s th e go od s

as “ Orie nt al Carp et s S[ai d] T[o] C[o nt ai n] 18 34 P[ac ka ge s].” (R.1 -3 8 a t 3 .) Und er

th e c o lu m

n “ N[u m be r] of ,” th e bi ll of la di ng refe rs to th e fo rty-foo t co nt ai ne r, bu t

do es no t refe r to th e twen t y p a l l e t s i ns id e th e co nt ai ne r. On Ju ne 15
, 20 06
, at th e

3la te st , th e co nt ai ne r arri ve d in Pu ert o Mo rel os , whe re it was of f-l oa de d fro m th e sh ip

an d pl aced wit hi n th e Po rt Adm in is tra ti on faci li ti es , whi ch th e Mex ic an go ve rn m en t

co nt ro ls

. Lap is Ito r de Co zu m el
, an affi li at e of Ch an na , to ok cu st od y of th e co nt ai ne r

in Pu ert o Mo rel os

. (R.1 -6 2 at 3.) Lap is was res po ns ib le fo r tra ns po rti ng th e carp et s

to th ei r fin al de st in at io n in Co zu m el

. ( Id

. ) W he n th e co nt ai ne r reac he d Co zu m el an d

was op en ed
, bo th se al s w e r e st il l in ta ct

. ( Id

. at 12 .) Howev er, fo ur pa ll et s were

m is si ng fro m t h e c o n t a in er. ( Id

. at 4.) Ch an na ’s c or

po rat e rep res en ta ti ve , Ur i Ben

Yeh ud a, be cam e aware of th e m is si ng carp et s on Ju ne 20
, 20 06
, bu t Ch an na di d no t

rep or t th e lo ss to Hy

bu r un ti l it se rv ed Hy

bu r wit h a su m

m on s in th is cas e on Ju ly 24
,

20 07

.
The rel ev an t act is COGSA, 46 U.S.C

. A

. § § 3 07 01
, et se q. (2 00 7) (fo rm erl y

co di fie d a t 4 6 U.S.C. § 13 00 et seq ):

Neit he r th e carr ie r no r th e sh ip sh al l

. . . be

. . . li ab le fo r an y lo ss

. . . in

co nn ect io n wit h th e t r an sp or ta ti on of go od s in an am ou nt ex ceed in g $5 00 pe r pa ck ag e

. . . o r in cas e of go od s no t sh ip pe d in pa ck ag es , p er
cu st om ary frei gh t un it

. . . un le ss th e na tu re an d va lu e of s u c h go od s ha ve be en de cl ared by th e sh ip pe r be fo re sh ip m en t an d in se rte d i n th e bi ll of lad in g. Th is de cl arat io n, if em bo di ed in th e bi ll of la di ng , s ha ll be pri m a fac ie ev id en ce, b ut sh al l n ot be co nc lu si ve on th e car rie r.
COGSA, § 4 ( 5 )

. B ecau se COGSA do es no t de fin e th e te rm “ pa ck ag e,” an d on

acco un t of “ th e ad op ti on of ne w m et ho ds o f pr ep ari ng an d as se m bl in g go od s fo r

sh ip m en t,” co ur ts are in ev it ab ly as ke d to de te rm in e whe th er a gi ve n it em qu al ifi es as

4a pa ck ag e un de r th e st at ut e. Fir ema n’ s Fun d In s. Co

. v. Tr op ic al Sh ip pi ng & Co ns tr

.
Co

. , 25 4 F .3d 98 7, 9 97 (11 th Cir . 20 01 ) (q uo ta ti on an d c it at io n o m it te d)

.
Ch an na co nt e nd s th at each of th e 1,8 34 in di vi du al carp et s co ns ti tu te d a

COGSA pa ck ag e. Thi s arg um en t is wit ho ut m eri t. W e fin d no erro r in th e Mag is tra te

Ju dg e’s an al y si s of th is is su e or in th e gr an t of pa rti al su m m ary jud gm en t to Hy

bu r

ba se d on it s fin di ng th at th e pa ll et s, no t th e carp et s, co ns ti tu te d th e COGSA pa ck ag es

. (R.1 -3 8 a t 1 2- 13 .)

Ch an na ne xt arg ue s th at th e di st ric t co ur t erre d by fin di ng th at it fai le d to pr ov e

sh or ta ge at ou tt ur n. Bec au se we affi rm th e Mag is tra te Ju dg e’s fin di ng th at each pa ll et

co ns ti tu te d a pa ck ag e, Hy bu r is on ly po te nt ia ll y li ab le fo r $5 00 pe r m is si ng pa ll et , no t

$5 00 fo r each carp et co nt ai ne d th erei n. In or de r fo r Hy bu r to be res po ns ib le fo r th e

fo ur m is si ng pa ll et s un de r COGSA, C ha nn a m us t pr ov e th at th e pa ll et s were lo st

whi le in Hy

bu r’s co nt ro l. Pla st iq ue Ta gs , In c. v. Asi a Tr an s Li ne , In c. , 83 F.3 d 13 67
,

13 69 (1 1t h Ci r. 19 96 ) (ci ta ti on om it te d)

. In or de r to m eet th is bu rd en , Ch an na m us t

de m on st rat e: “ 1) fu ll d e l i v e r y o f th e go od s in go od co nd it io n to th e carr ie r, an d 2)

ou tt ur n b y t h e c a r rie r of th e carg o wit h da m ag ed or m is si ng go od s.” Id

. Alt ho ug h

th e Ma gi st rat e Ju dg e fo un d t ha t Ch an na su ffi ci en tl y est ab li sh ed “ th at it m ad e a fu ll

de li ve ry of th e carp et s

. . . to Hy bu r by vi rtu e of th e te rm s of th e Bi ll of Lad in g,” th e
Mag is tra te Ju dg e fo un d th at Ch an na “ fai le d to de m on st rat e th at th ere was a sh or ta ge

5of carp et s at ou tt ur n.” (R.1 -6 2 at 15 .) W e co ns id er, th en , whe t h e r t h e Mag is tra te

Ju dg e err ed in fin di ng th at Ch an na di d n ot pro ve su ch a sh or ta ge

.
The Mag is tra te Ju dg e fo un d th at bo th se al s rem ai ne d in ta ct th ro ug ho ut th e

p e r i od Hy

bu r co nt ro ll ed th e co nt ai ne r, an d were on ly rem ov ed aft er reac hi ng th e

co nt ai ne r’s fin al de st in at io n in Co zu m el

. Alt ho ug h th is fact te nd s to su gg es t th e lo ss

di d no t oc cu r whi le Hy

bu r po ss es se d th e co nt ai ne r, it is no t de te rm in at iv e. Se e Bal ly

,

In c. v. M.V. Zi m Ameri ca , 22 F.3 d 65
, 69 -7 0 (2 d Ci r. 19 94 ). Mo reo ve r, Ch an na fai le d

to in tro du ce ev id en ce s ug ge st in g t he co nt ai ne r was tam pe red wit h. Th e Ma gi st rat e

J ud ge al so fo un d th at Ch an na di d no t of fer an y ev id en ce su gg es ti ng it w a s mo r e

li ke ly th at th e m is si ng carp et s were rem ov ed whi le in Hy bu r’s po ss es si on th an at an y

ti m e aft er Hy

bu r tra ns ferr ed th e carp et s to th e cu st od y of th e co n s i g n e e , in cl ud in g

whe n th e co nt ai ne r was in Pu ert o Mo rel os at th e Po rt Adm in is tra ti on faci li ti es , en

ro ut e to th e wareh ou se in Co zu m el
, or aft er it reac he d th e wareh ou se whe re th e lo ss

was di sc ov ered . (R.1- 62 at 2 4.)

The Mag is tra te Ju dg e’s co nc lu si on is fu rth er su pp or te d by th e fact th at Ch an na

di d no t rep or t th e lo ss to Hy bu r un ti l on e y ear aft er it di sc ov ered th e m is si ng carp et s.

Thi s f a c t se rv es as pr im a faci e ev id en ce th at Hy bu r de li ve red al l th e carp et s.
COGSA, § 3( 6)

. Acco rd in gl y , th e Mag is tra te Ju dg e’s fact ua l fin di ng th at Ch an na

fai le d t o e st ab li sh a lo ss of c arp et s at ou tt ur n was no t cl earl y erro ne ou s.

6AFFIR MED.

7