Judge Haynesconcur s in the jud gment only. * Pursuant to5 T H C IR . R. 47.5 , the court has determined that this opinion should not ** be publishe d and is not precedent except under the limited circu mstance s set forth in 5 T H C IR . R. 47.5 .4. 

### INTHE UNI TED S TATESCOU RT OFAPPEALS

FORTHEFIFTH CIRCU IT

N o. 08- 31075
TR A D E A R B E D I N C ; A R C E LO R TR A D I N G U SAI N C , doi ng busi nes s as Fr e e m a kI n d u s t r i e s ; F REEM AK I NDU S TR I ES I NC , P l ai n t i f f

- A pp el l ees v. W EST ER N BU LKCA RR I ER S K/ S , D efen d a n t- A p p ell a n t

A p p ea lf

rom the U n i tedS tates D i stri ct C ou rt f ort he E as t er n D i st r i c tof Loui si ana U SD C N o. 2: 03- C V

- 00529

B e fo r e B A R K S D A L E , S O U T H W IC K , a n dH AY N E S , C ir c u it J u d g e s . * P E R C U R IA M: ** A ti ssue i n t h i s m ari t im e -shi pp i n g di spu t e i s w h et h er th e di st ri ctcourt erred i n deter m i n i n g l i abili t y an d d am ages f or c ol d-r ol l ed st eel co il s and st eel pi pes shi pp ed on t h e M E D I T R A D E R f rom E aster n E u rope t o H ou st on an d N ew O rl ean s. W est ern B u l k ch al l en ges: t h e d istr ict court ’ s f i n di n g t h e coil s w ere unda m ag e d when l o ad e d o nt oth eM EDIT RADER, b u td a m ag e d when unl o ad e d; United States Court of App eals

Fifth Circuit 

### F I L E D Janua ry 26, 2010 Cha rl es R. F ulb ru g e II I Clerk Case: 08-31075 Document: 00511012649 Page: 1 Date Filed: 01/26/2010N o. 08- 31075

2 i t s dam ages assessm en t ; an d i t s f i n di n g W est ern B u l k w as t h e sol e C arri age of G oods b yS e a A ct( C O G S A) carr i er— an d theref ore th e sol e party li able f or dam ages
— w i t h re spe c tt o Tr adeArbed, I nc. (t he c oil s’ow ne r), and Free m ak I n d u s t r i e s , I n c . (t h e p i p e s ’o wn e r)
. A F F I RMED. I. We s t e r n B u l kwas t he l a s ti n ac h a i n o f t i me c h a r t e r e r s o f

t h e MEDI T R A D E R , t raci n g back t o her ow n er, Sea farers S h i pp i n g, I n c. Seafarer s w as a par t y t o thi s acti on , but , pos t
- t r i al , w as di sm i ss ed w i t houtpr ej udi c e, as di s c us s e d i nf

ra . A. The c ar goa ti s s ue f

o rTr ad e Arb e d a nd Fr e e m aki s de s c r ibe d i n t ur n. The pr i m ar y di s put e s c o nc e r n Tr ad e Arb e d. 1. In D ecem ber 200 2, T radeA rbed enter ed i n t o a cha rt er part y w i t h W est ern B u l k to s h ip h o t-roll ed an d col d-r ol l ed st eelcoil s on t h e M E D I T R A D E R , f rom Bour ga s , Bul ga r i a, t o N e w O r l e ans . Tr ad e Arb e d l at e rbe c am e A r c e l o rTr ad i ng (t h ey are referred t o as Trad eA rbed). (A l t h ou gh i tdoes not af fectt h i s ana l ysi s, th e r e w e r e tw o ch a r te rp a r tie s s ig n e do n 5 D e c e m b e r2 0 0 2
. W e s te r n B u lk
n egoti ated one w i t h T ra deA rbed; t h e ot h er, w i t h A rcel or Trad i n g. Th e l att er exi st s t o ref

l ectt h e above-noted m erger. Th e charterparti es refer on l y t o “ H ot R oll ed Coi l s” , butt he par t i es unders t oo d thi s t er m c ove r ed c ol d- r oll ed c oil s as w e ll.) TradeArbed’ s c oil s w er e l oade d ont o the M E D I TR A D E R i n January 2 003. Th e m oi st ure - se nsit ive c ol d- r oll ed c oil s w er e s hi pped i n t he usualpr ot ec t ive w r ap pi ngs ; t he no n- m o i s t ur e - s e ns i t iveho t
- r o l l e d c o i l s w e r e no tw r ap ped. T radeA rbed’ s dam ages at i ssue concern on l y t h e col d-r ol l ed coi l s. Case: 08-31075 Document: 00511012649 Page: 2 Date Filed: 01/26/2010N o. 08- 31075

3 Thr e e b i l l s of

l ad i ng (num be r s six– e i ght) c o ve r e d the c o l d- r o l l e d c o i l s , a nd each noted t ears, den t s, an d m i n or r u ston som e of t h e w rapp i n gs. O t h erw i se, t he b i l l s w e r e c l e an. Tr ad e Arb e d’ s c o i l s w e r e s t o w e d i n hol ds one , t hr e e , and f ive . Af t e rl o ad i ng i n B ou rg a s, h old on e c o n tain edcold-roll edcoil s cov ere dbybil lsi x, al on g w i th T radeA rbed’ s bi l l

- n i n e col d-r ol l ed coi l s an d another shi pp er’ s galvan i zed-r ol l ed
c oil s ( al som oi st ure - se nsit ive, t he galvani ze d- r oll ed c oil s w er e w r apped s i m i l ar t o c o l d- r o l l e d c o i l s ) ; ho l d t hr e e co nt ai ne d c o l d- r o l l e d c o i l s c o ve r e d b y bil ls e ve n, a lo n gw it h s o m e o f T r a d e A rb e d ’s h o t -r o ll e dc o il s a n da n o t h e rs h ip p e r ’s g a lv a n iz e d -r o lle dco ils ; a n dh o ldfiv e co n ta in e dco ld -r o lle dco ils co v e r e db yb ills
seven an d ei gh t , al on g w i t h m ore of T radeA rbed’ s hot- rol l ed coi l s. H ol ds t w o a nd f

ourw er e f

i l l ed w i t h ot hers hi pper s’c ar go. Cargo w as ad de d t o ho l ds o ne a nd thr e e a tas ubs e que ntpo r t , b e f o r e o cean transi tt o t he U n i t ed S t ates. E vi den ce w as presented at t ri al regardi n g t h e exi st en ce of co n d en sati on i n t he ho l ds , w hi c h c an c aus e r us t o n m o i s t ur e - s e ns i t ive c o l d- r o l l e d coi l s. The
mo i s t u r e wa s c l a i me dt o h a v e e n t e r e dt h e h o l d s fr o m e i t h e ro rb o t h o f t wo p r in c ip a l s o u r c e s . F i rst, i t cou l dh a ve en tered w i th non- m oi sture - se nsitive c ar go, l i k e th e h otrol l ed coil s, w h i ch, pri or t o l oad i n g, w ere st ored i n t h e open ai r and w ere c overed
w i th sn ow du r in gloa d i n g. D u ri n g loa d i n g, th e M E D I T R A D E R ’ s ch i ef m a te obj ec t ed t o st ow i ng w eth ot
- r oll ed co i l s i n t he sam e hol d w i t h m oi st ure - se nsit ive col d-r ol l ed coi l s. Sec ond, m oi st ure c oul d have ent er ed w hen, ata s u b seq u en tpor t , c ar go w a s lo a d e din t o th e h o ld s d u r in gr a in fa ll . T h i s w a s a ls o o v e rth e c h ie f m a t e ’s protes t s. A ft e rd is c h a r g in gs o m e o f h e rc a r g o in H o u s t o n , in c lu d in gF r e e m a k ’s pi pe s , t he M ED I TRA D ER p ro c e e de d t o N e w O r l e ans , w he r e he rr e m ai ni ng Case: 08-31075 Document: 00511012649 Page: 3 Date Filed: 01/26/2010N o. 08- 31075

4 c a r g o , in c lu d in gth e co ld -r o lle dco ils , w a s u n lo a d e d ; th o s e co i l s w e r e s till in
w rapp ers. In b ot h H ou st on a n d N ew O rl ean s, a n u m ber of surveyors i n spect ed t h e cargo and t h e hol ds. Su rveyors agreed hold t h ree c on t ai n ed “t i de m arks”— evi den ce o f s t and i ng w ateri n t h e hol d. I n t h e t h ree h ol ds contai n i n g t h e coi l s at i ssue, su rveyors al so f ou n d “dri p-d o w n conden sati on ” res u l t i n g f rom w aterconden si n g at th e t op of t he hol d and dr i ppi ng o nt o t he c ar go . Surve yo r s g e ne r all y ag r e e d thi s w as f r e s hw ater , as opposedt o sal t
- w ater , conden sati on , a n d att ribu t ed i tt o t h e m oi st u re i n t rodu ced du ri n g l oad i n g. It w as al so n ot ed th at som e coil s w ere dri pp i n g w ater du ri n g u n l oad i n g i n N ew O rl ean s. T ra d eA rb ed ’ s cold-roll edco i l s w ere l oa d edf rom the M E D I T R A D E R on to barges f or s h i pm en tt o t h ei r f i n aldest i n ati on s up t h e M issi ssi pp iR iver. Th ey w ere not u n w rapp ed u n t i lt h ey reachedt h ose dest i n ati on s. T h e ori gin a l b u ye r of th e bi l l s-sev en a n d -ei gh t coil s rejected th em as u n fit, ci ti n g h ea vyru st. A n oth er ro u n dof su rv ey s ge n era l l y a ttrib u tedthe ru st t o m o i s t ur e encou n t e r e d i n o c e an t r ans i t
. Tr ad e Arb e d s o l d tho s e c o i l s t o t he
or i gi nalbuyerata de pre c i at ed v al ue. Surve ys appr ove d of the new s al e pr i c e a s “fa i r, rea son a b l e, [an d ] rep rese n t[ a tive of] con d i ti on s view ed ”. T h e b ill-s ixco ils w e r e reje c te db a s e do n d a m a g e ca u s e db yru s t a n do il
e m ul s i f i c ati on w i t hi n t he c o i l s . M o r e s o t han w i t h t he b i l l s - s e ve n a nd - e i ght
c oil s, ev i denc e c onf

l i c t ed o n w het hert he bil l

- six coi l s w er e dam aged i n oc ean tran sit
. T h e ori gi n al bu yer of t h ose coil s r ej ect ed them , bu tT radeA rbed reached agreem en tw i t h a di f ferent buy er t o p u rc h ase t h em at a dep reci ated val u e. Surve ys de s c r ibe d t he new bil l

- s i x s al e pr i c e a s “r e pr e s e nt at [ at iveo f ] c o ndit i o ns vi e w e d,
. . . fair , r e as o nab l e , and
. . . r e c o m m e nde d as t he be s t di s po s i t i o n i n t he
m a tt e r. . . .” Case: 08-31075 Document: 00511012649 Page: 4 Date Filed: 01/26/2010N o. 08- 31075

5 2. F or th e sam e voyag e on theM ED ITRA D ER , Fr eem ak al so c h art ered, f rom W es t er n B ul k, s pac e t o s hi p i t s st ee lpi pes . They w er e l oade d i n D ec em ber2002 i n O dessa, U kraine. U pon un l oad i n g t h em i n H ou st on , i tw as di scovered t h ey h adbeen cr u shedb y rebar. A s i td i d at tr i al , W est ern B u l k concedes t h e pi pes w ere da m a ge ddu ri n g th e oce a n tran sit
. B. T r a d e Arb e da n dF r e e ma kf i l e da n a c t i o n fo rd a ma g e s a g a i n s t : t h e MEDI T R A D E R , i n re m ; h e ro w n e r(S e a fa r e r s ); h e rm a n a g e r(V ic to r iaS h ip M an agem en t , I n c. ) ; an d h er c h art erer (W est ern B u l k). Th e di st ri ctcourt
c o n s o lid a te dth e a c tio n w ith o n e f ile de a r lie rb yC a r g ill F e r r o u s In te r n a tio n a l,
an ot h er s h i pp er w i t h cargo on the M E D I T R A D E R d u ri n g t h e v oyag e a ti ssue. S eafarers an d V i ct ori a f i l ed a cross cl ai m an d a thi rd- pa rt y co m p la in t aga i n st W est ern B u l k, seeki n g i n dem n i f i cat i on f

or dam age to th e cargo. The di s t r i c tc o ur tb i f ur c at e d the t r i al , s e pa rat i ng “ t he c ar goq uant um cl a i m s f

rom th e issu es o f l i a b i l i ty b etw ee n [W ester n B u l k ] a n dS ea farers ”. Ca rg i l lFe r ro u s I

n t ’lv . M / V M

EDI TRADER , 513 F. Supp. 2d 609 , 612 ( E
. D
. La. 200 7)
. Th e sec on d p artof t h e bi f u rcat ed tr i alha s yett o occ u r. Af t e rab e nc h t r i alo n t he c l ai m e d c ar goda m ag e , t he di s t r i c tc o ur tf o und W e s te r n B u lklia b le , in tera lia , t o T r a d e A rb e dfo r$ 7 8 7 ,2 2 2 .4 4 fo rth e b ill-s ix th r o u g h b ill-e ig h t c o ils ; a n d , to F r e e m a kfo r$ 2 5 6 ,8 1 4 .2 2 fo rth e p ip e s . M EDI TRADER , 5 1 3 F . S u p p . 2 da t6 2 5

– 2 6
. (As ig n if ic a n tp o r t io n o f t h e d is t r ic tc o u r t ’s
o p in ion w a s d e v o te dto C a rg ill’ s c la im s, a n d C a rg ill w a s a w a rd e dd a m a g e s o f, in tera lia , $26 4, 452
. 67. C argi l l set t l ed it s cl ai m s. ) W est ern B u l k’ s m ot i on s f or r e c o n s id e r a tio n a n dfo ran e w tr ia l w e r e d e n ie d
. Case: 08-31075 Document: 00511012649 Page: 5 Date Filed: 01/26/2010N o. 08- 31075

6 O n 20 O ct ober 200 8, an om n ibu s or der: di sm i ssed w i t h ou tprej u di ce cl a i m s th a t settl edafter tri a l(n ot at i ssu e in th i s a p p ea l); an d , con sist en t w i th i t s earli er opi n i on , aw arded j u dg m en tf or Trad eA rbed an d F re e m a k ag ai n st W e s t e r n Bul k. II. F o rth is a d m ir a ltyb e n c h tr ia l, th e d is tr ic t co u r t h e a r d n o te s tim o n y ; o n ly docu m en t ary evi den ce w as presented. Thec o urt ’ s l e ga lc o nc lus i on s are revi ew ed de no vo ; its fin d in g s o f fa c t, o n lyfo rcle a re r r o r . E
. g. , Saba h Shi py ar d Sdn. Bhd.
v . M / V HARBEL TAPPER , 178 F. 3d 400, 404 ( 5t h C i r . 1999) (c i t i ng Ner co O il & G as, I

n c. v. O t t o Can d i es, I n c. , 74 F
. 3d 667, 668 ( 5t h C i r . 1996) )
. Bench- t r i al fac tf i ndi ngs , “w he t he rb as e d o n o r alo ro t he re vi de nc e , m us tno tbe se ta s i de
u n le s s cle a r lye r r o n e o u s . . . .” F ED R. C IV . P. 52(a) ( 6)
. R est ated, t h i s s t an da rd i s appl i e d e ve n t ho ught he di s t r i c tc o ur tm ad e no c r e dibil i t y de t e r m i nat i o ns basedon ora l test i m on y an d ba sed t h em onl y on “ docu m en t ary evi den ce or in fe r e n c e s f

r o m o t h e rfa c ts ”. Pa cif ic E mp loyers In s. Co. v. M / V G L OR IA , 767 F. 2d 229, 235 ( 5t h C i r . 1985) ( quot i ng A n d er so n v . C ity of B es se m erC ity, No rth Car o l i na , 4 7 0 U .S
. 5 6 4 , 5 7 4 (19 8 5 )). W est ern B u lk contends: Trad eA rbed fai l ed to prove i t s pri m a f aci e case for da m a ge to carg o; th e d i stri ct co u rt a p p l i edan i m p rop er m eth odto calcu l a te da m ages an d, i n t h e al t erna t ive, err ed bynot a p p lyin g C O G S A ’ s $500

- perpa ckag e dam age l i m i t ati on ; an d thi s w as an i n st an ce of com m on , not private,
ca rr ia g e , an d, consequ en t l y, W est ern B u l k i s not t h e onl y pa rt y l i able as a C O G S Acarr i er. A. R egard i n g t h e cl ai m ed cargo da m age, W est ern B u l k con t en ds T radeA rbed fa i l e d t o p r o v e t wo e s s e n t i a l e l e m e n t s o f i t s COGS A pri m a f

aci e case: W est ern Case: 08-31075 Document: 00511012649 Page: 6 Date Filed: 01/26/2010N o. 08- 31075

7 B u l k’ s r ecei pt of

t h e cargo i n good cond it i on ; an d i t s del ivery i n d a m aged
c o n d itio n . Se eTu b a c ex, I n c . v . M / V RI

SA N, 4 5 F .3d 9 5 1 , 9 5 4 ( 5 t h C ir. 1 9 9 5 ). Eac h e l e m e nti s a ddr e s s e d i n t ur n. 1. R e g a r d in gg o o dco n d itio n o n r e c e ip t, W e s te r n B u lka s s e r ts : th e c o ils d id
n otha ve cl ean bi l l s of l ad i n g; an d T radeA rbed fai l ed, i n t h e absen ce of such b i l l s, t o pr o veg o o d c o ndit i o n b y o t he r m e ans . I n t hat r e ga r d, W e s t e r n Bul k c o nt e nds T r a d e A rb e dfa ile dto o ffe r a n yp r o o f o f th e co ils ’co n d itio n o n re c e ip t b e c a u s e it fai l ed to show t h ei r c on di t i on i n si de thei r w rapp i n gs. C l ean bi l l s of

l ad i n g are pri m a f

aci e ev i d en ce of g oo dcon d i ti on on rece i p t. S t e e l Co i ls , I

n c . v . M/ V

LAKEMARION, 3 3 1 F. 3 d4 2 2 , 4 2 6 ( 5 t h Cir . 2 0 0 3 )
. As
no t e d, t he b i l l s w e r e no te nt i r e l y c l e an. M EDI TRADER , 5 1 3 F
. S u p p . 2d at 6 2 5

– 2 6
. In su ch a s itu a ti on , the distri ct cou rt m u st l oo kto oth er ev i d en ce to de t e r m i ne g o o d c o ndit i o n, suc h as m at e ’ s re c e i pt s and s urve ys f r o m t he l o ad i ng p o r t. S e eLAK

EM A R IO N , 3 3 1 F .3 da t 4 2 7
. A s n oted , W ester n B u l kcon ten d s T ra d eA rb edfa i le d t o m ee t a “c o n s id e r a b le b u r d e n o f g o in gfu r th e rto p r o v e a c tu a l co n d itio n ”, b e c a u s e it d id
n o t p r e s e n t ev id e n c e o f th e co ils ’co n d itio n in s id e th e irw r a p p in g s . S ee Un i t ed S t ate s v. Lykes B ros. S t eam ship Co. , 511 F
. 2d218 , 2 23 ( 5t h Ci r . 1 97 5) ( quo t i ng Compag ni e de Nav iga t i o n v . Mo ndi alUni t e d Cor p. , 3 16 F
. 2d1 63, 170 ( 5th C i r. 1 9 6 3 )); seealso Caem i n tF ood s, I n c. v. B rasi lei ro , 647 F
. 2d3 4 7 , 352 ( 2dC i r. 1 9 8 1 ) . O u rco u r t h a s , h o w e v e r , e x p r e s s lyd is tin g u is h e dth e “c o n s id e r a b le b u r d e n ” p la c e do n s h ip p e r s o f t h e w r a p p e dp e r is h a b le g o o d s in W e s t e r n B u lk ’s
c ite dca s e s fr o m t h e b u r d e n p la c e do n s h ip p e r s o f w r a p p e ds te e l co ils
. Se eLAKE M A RION, 331 F. 3d at429. I n LAKEMARION, t h e ow n er of col d-r ol l ed s t eel coil s sued f or dam ages a lle g e d ly in c u r r e dd u r in gm a r itim e tr a n s it. Id
. at4 25
. Af t e rab e nc h t r i al , t he d is tr ic t c o u r t a w a r d e dd a m a g e s . I d. Case: 08-31075 Document: 00511012649 Page: 7 Date Filed: 01/26/2010N o. 08- 31075

8 As W e s t e r n Bul k d o e s he r e , i n LAKEMARION i tw a s co n te n ded on a p p e a l : “t h e b i l lo f

l a d i n gn o t a t i o n t h a tt h e c o n d i t i o n o f t h e s e c o i l s wa s u n k n o wn fat al l y und er m i ned St ee l C oil s’ s at t em pt t o p rov e a pri m a f aci e case of

good
c o n d itio n ” a t lo a d in g . Id
. a t 4 2 8
. O u rco u r t d is a g r e e d , h o ld in g : T h e evi den ce att ri alsh o w s t h at, ha d the col d rol l ed .
. . coil s been d a m a ge dbyru st, the i r ou ter w ra p p ers w ou l dh a ve rev ea l edi t. B ecau se t h e w rapp ers h adno i n di cat i on of rust , a n d t h e m oi st u re on th e o u ts id e o f th e w r a p p e r s w a s n o t d r ip p in gd o w n in to th e co ils , it w as no tc l e ar l y e r r o ne o us f o r t he di s t r i c tc o ur tt o c o nc l ude t hatt he c ol d r oll ed .
. . c oil s w er e i n an un dam aged st at e pr i ort o l oadi ng. I d. a t 4 2 9 ; seealso Cou t h i n o, Ca ro & Co
. v . M / V S AVA , 8 4 9 F
. 2 d1 6 6 , 1 6 8 ( 5 th C i r . 1988) ( af

f i r m i ng di st r i c tc our t ’ s f i ndi ng, bas ed o n w i t nes s’t es t i m ony, t hat st eelcoil s w ere u n da m aged a tloadi n g desp i t e “ n u m erous excepti on s noti n g rust
a n dp a ck a g in gd a m a g e ” on b ills o f l a d in g). I n t he i ns t ant ac t i o n, t he di s t r i c t c o ur t r e l i e d o n t he pr e - l o ads urve ys a nd ot h er evi den ce i n tro d u ced at t ri alt o f i n d w h et h er th e cargo w as i n good
con d i ti on at l oa d i n g. T h e cou rt ru l ed : “w h i l e th e b i l l s of lad i n g w ere clau sed to
n o te s o m e d e fe c ts inp a c k a g in ga n dth e lo a d s u rv e y a ls o d e m o n s tr a te s th is , it is t h e C ou rt ’ s con cl u si on af t er vi ew i n g t h e ph ot ograp h s t h at[ , at l oad i n g, ] an y rust
o n th e co ils th e m s e lv e s w a s o n t h e h o t r o lle dco ils ”, n ott h e col d-r ol l ed coi l s. M EDI TRADER , 513 F
. Supp
. 2 d a t6 26
. The r e f o r e , f o rt he c o l d- r o l l e d c o i l s , t he d i stri ct cou rt f

ou n dT ra d eA rb edpr ov edthe u n d a m a ge d -at- l oa d i n g e l em en tof i ts pri m a f aci e c a s e . I

d. T r a d e A rb e d w a s n o t r e q u ir e dto d o m o r e . S e eLAKEMARION, 331 F. 3d at 429. Th e di st ri ctcourtdi d n otcl earl y err i n f i n d in g t h e col d-r ol l ed coi l s’
u n d a m a g e dco n d itio n a t lo a d in g . S ee G L OR IA , 767 F. 2d at 235 ( st at i n g th a t,

“ ‘ [w ] h ere th ere are t w o perm i ssibl e vi ew s of t h e evi den ce, t h e fact f i n der’ s c h oi ce b e tw e e n th e m ca n n o t b e cle a rly e rr o n e o u s . . . e v e n w h e n th e d istr ictc o u r t ’s f i n di n gs do n otres ton credibi l i t y dete rm i n ati on s, bu tare based i n st eadon Case: 08-31075 Document: 00511012649 Page: 8 Date Filed: 01/26/2010N o. 08- 31075

9 phy s i c a lo rd o c u m e n t a r ye v i d e n c e o ri n fe r e n c e s f r o m o t h e rfa c t s ’” ( quo t i ng A n d ers on , 4 7 0 U .S
. a t 5 7 4 )). 2. L i kew i se, W est ern B u l k assert s T radeA rbed fai l ed t o p rove t h e coil s w ere da m aged on del ivery, m ai n t ai n i n g i tfai l ed to present an y evi den ce of t h e coil s’ cond i t i on becau se t h ey w ere n ot u n w rapp ed i n N ew O rl ean s, b u t rem ai n ed pa ckag ed u n t i ltheyreach ed t h ei r upriver dest i n ati on s. A ccor di n g t o W est ern B u l k, t h e l i gh tatm osph eri c r u ston the coil s’w rapp i n gs at di scharge i n N ew O r le a n s d o e s n o t e x p la in t h e h e a v ie rfr e s h -w a te rru s t d is c o v e r e do n th e co ils
w h e n u n w r a p p e d o v e r a m o n th la te r . W e s te r n B u lka ls o s u g g e s ts th e co ils co u ld h ave been dam aged i n st orage af t er r each i n g t h ose dest i n ati on s. I n LAKEMARION, as here, i t w a s con t en ded : “t h e st eelcoil s r u st ed on t he w ay f

r om t he sh i p t o thei rul t i m at e i nl and des t i nat i ons ”
. 331 F. 3d at429. LAKEMARION

r u l ed su ch contenti on s w ere “bel i ed bya w eal t h of evi den ce r e l i e d up o n b y t he di s t r i c tc o ur t” , incl u di n g a quo t e d s urve y t hats t at e d the
su rv ey or’ s op i n i on a s to th e cau se of th e da m a g e . I d. Acc o r di ngly, t hi s i s s ue t ur ns o n whet he re vi de nc e i n t he r e c o r d p r e c l ude s ho l di ng c l e ar l y e r r o ne o us t he fi n d i n g th a t th e coil s w ere da m a ge di n ocea n tran sit
. The di s t r i c tc o ur tc o ns i de r e d t w o s e pa r at e g r o ups o f coi l s, a nd h e l d:

“ Tr ad e Arb e d/Arc e l o rha s c ar r i e d it s b ur de n o f pr o o f t o de m on st r at e t hatt he [bi l l s- seven an d - ei gh t] coil s w ere un l oad ed i n a da m aged cond i t i on as t h ey w ere r u s te d ”, a n dt h e b i l l

- s ixco ils w e r e “a ls o d a m a g e da s are s u lt o f in c o m p a tib le
c a r g o b e in gs to w e dto g e th e r”. M EDI TRADER , 513 F. Supp. 2d at626.
a. Reg ar di ng t he b i l l s - s e ve n an d

- ei ghtc o i l s , W e s t e r n Bul k m ai nt ai ns t he di st ri ctcourti m properl y rel i ed on six surveys— t h ree i n N ew O rl ean s, a n d three at th e up river dest i n ati on s— cit ed to sup port its fin d in g t h at th ose c oi l s w ere r us t e d d ur i ng o c e an c ar r i ag e . W e s t e r n Bul k c o nt e nds : t he upr ive rs urve ys do Case: 08-31075 Document: 00511012649 Page: 9 Date Filed: 01/26/2010N o. 08- 31075

10 no tpr o vedam age atunl o ad i ng i n N e w O r l e ans ; a nd the e ar l i e rN e w O r l e ans s urve ys dono ts ho w r us to n t he c o i l s b e c aus e t he y w e r e no tunwra ppe d. Fort he c o i l s s hi ppe d i n ho l d thr e e , s urve ys r e po r t e d “ r us t t i de m ar k” a nd

“heavy d ri p d ow n” , r es ul t i ng f r om “ shi p’ s sw eatand c ar go sw eati n t he c ar go h ol d d u e t o t h e l ack o f p rop er ventil ati on an d f rom fau l t y st ow age”. O n e N ew O rl ean s s u rveyor, i n spect i n g t h e t h ree hol ds t h at c on t ai n ed T radeA rbed’ s c oi l s, c o n c lu d e d : “t h e h e a v ie rru s t t o v a r io u s d e g r e e s n o te d o n th e c a r g o in e a c h h o ld
w as due t o s w eat
. . . c ause d as a r es ul t of i m pro perve nt i l at i on abo ar d t he o c ean c ar r i e r[ and] i m pr o pe rst o w ag e abo ar d t he o c e an c ar r i e r”
. The c o i l s w e r e f o und t o ha ve been subj ectt o “ severe s w eat c on di t i on s p ri or to l oad i n g t h e barges” f or t he upriverj our ney. As o ne s urve y e xpl ai ned: “ St ow age of hotr oll ed s t ee lc ar go i n t h e sam e cargo c om pa rt m en ta s m oi st u re sen si t ive cargo i s i m proper st ow age. V e n tila tio n o f th e ca r g o w a s im p e d e da n dth e r e fo r e im p r o p e r. . . .” Thes e s urve ys s upp o r tt he di s t r i c tc o ur t ’ s f i ndi ng t hatt he b i l l s - s e ve n a nd

- ei gh tcoil s w ere dam aged w h en u n l oad ed i n N ew O rl ean s; t h eref ore, t h e court d i dn o tc l e a r l ye r rw h e n i tc r e d i t e dt h e m. b. A s noted, af

t er th e bi l l

- six coil s’ ori gi n al bu yer rej ect ed them , T radeA rbed reachedan agreem en tw i t h an ot h er buy er t o sellt h ose c oi l s ata di scoun tbased
on “r us t/o i le m ul s i f

i c at i o n o nl y”
. The di s t r i c tc o ur tf o und t he s e c o i l s w ere “p r im a r ilyd a m a g e db yo il e m u ls ific a tio n ” r e s u lt i n gfr o m “a co m b in a tio n o f o il
a n d w a te r fr o m th e h ig h h u m id ityinth e ca r g o h o ld s ”. M EDI TRADER , 51 3 F. S u p p . 2d at 62 6
. A s also n oted , the dis trict cou rt attrib u tedthis da m a ge to “in c o m p a tib le ca r g o b e in gs to w e dto g e th e r”. I d. Surve ys c o nf

l i c t e d a s t o t he b i l l

- s i x co il s ’c o ndit i o ns , a nd o pi ni o ns c o n flic te d o n t h e c a u s e o f d a m a g e . E v id e n c e s h o w e dm o is tu r e inh o ldo n e . A
n u m ber of

t h e bi l l

- six coil s’w rapp i n gs w ere t orn, pu n ct u red, or ot h erw i se da m ag e d, t he r e byc r e at i ng hol e s t hr o ughw hi c h t hi s m o i s t ur e c o ul d r e ac h t he Case: 08-31075 Document: 00511012649 Page: 10 Date Filed: 01/26/2010N o. 08- 31075

11 co il s an d cau se em u l sif i cat i on an d rust. “ [M ] oderate/h eavyoxi da t i on /rust”on t h e bi l l

- six coil s w as f ou n d at di scharge i n N ew O rl ean s. I n shor t , som e evi denc e sugge st ed t he dam age di d notoc c ur dur i ng oc ean t ran si t
. N e v e rthel ess, t h e di st ri ctcourtdi d n otcl earl y err w h en i tcr edi t ed
c ont r ar y e vi denc e a nd f ound t he bil l

- six c oil s w er e dam aged atunl oadi ng.

B. Acc o r di ngly, t he d i st ri c tc o ur tdi d no tc l e ar l y e r rw he n itf o und Tr a d e Arb e d p r o v e d i t s COGS A pri m a f aci e case t h at th e goods w ere dam aged d u ri n g o cea n tran sit
. T h ere fore, the con tested d a m a ge s a re ad d ress ed n ex t. In
c h a l le n g in gth e d is tr ic t c o u r t’s m e th o do f c a lc u la tin gth e m , W e s te r n B u lk presents t w o al t erna t ive cl ai m s: T radeA rbed fai l ed to sati sf y i t s i n i t i albu rden t o pr ovea pri m a f

aci e case of

d am ages; a n d, in the al t erna t ive, the cou rterr ed by de nyi ng W es t er n B ul k t he be nef i tof C O G SA ’ s $500- per - pac kage dam age l i m i t at i o n. 1. W est ern B u l k con t en ds: because T radeA rbed fai l ed to prove the coil s’
s o und m ar ke tv alue a tdi s c har gei n N e w O r l e ans, in bo t h t he i rda m ag e d a nd und am aged st at es , t he di st r i c t c our t sho ul d have deni ed allr ec ove r y. U s i ng t he
c o ils ’s u b s e q u e n t u p r iv e r v a lu e to d e te r m in e d a m a g e s , W e s te r n B u lk a s s e r ts , is
c o nt r ar y t o o urpr e c e de ntr e q u iri n gd a m a ge s t o b e c al c ul at e d us i ng m ar ke tv al ue at di scharge. A s f or th e cargo covered by bi l l s- seven an d - ei gh t , t h e di st ri ct court st ated
o nly th at “t h e dam ages suff ered w ere $574 , 542
. 83”, an d ci t ed a su rve y de s c ribing t hatt hi s a m o untw as c al c ul at e d b y s ubt r ac t i ng t he di s c o unt e d p r i c e f o rt he d a m a g e d c o ils fr o m th e o r ig in a l p r ic e . M EDI TRADER , 513 F
. Supp. 2d at626. T h e di st ri ctcourtres olvedthe bi l l

- six coil s’dam ages si m i l arl y, f i n di n g “ da m ages [w er e] $212, 679. 61 af t er m i t i gat i on of

dam ages by TradeArbed/A r c el ort hro ugh
ac c e pt anc e [ o f

] r e as o nab l e de pr e c i at i o n” , an d c i t e d as urve y pr o vi di ng t he Case: 08-31075 Document: 00511012649 Page: 11 Date Filed: 01/26/2010N o. 08- 31075

12 r e le v a n t c a lc u la tio n . I d. Th ese c al cul ati on s w ere n o t i m p r o p e r u n d e ro ur p rece d en t. C O G S Adoes n otm andat e o ne m et hod of c al c ul at i ng dam ages , buti nst ead provi des a gen eral pri n ci pl e: “ In n o even t sha ll t h e carri er be l i ab le fo r m o re t h a n t h e a m o u n to f d a m a g e a c t u a l l ys u s t a i n e d ”
. COGS A, § 4 ( 5 ) , 4 6 U. S
. C. § 3 0 7 0 1 n ote. O u r c ou rt typ i ca l l y a p p l i es th e trad i ti on a l“m a rk et va l u e ru l e” to
c a lc u la te C O G S Ad a m a g e s . Se e BP N
. Am
. Pe t ro le um v . SOLAR ST, 250 F. 3d 307 , 312 ( 5th C i r. 200 1)
. A s t h e S u prem e C ou rtha s r ecognized, how ever, t h ere a r e o c c a s io n s w h e n it is n e c e s s a r yto u s e o th e rm e th o d s . S ee Il l
. Cent. R
. R
. Co. v . C ra il , 28 1 U
. S
. 57 , 64

– 6 5 ( 1 9 3 0 ) (“T h e test of m a rk et va l u e is a t bes t b u t a
conven i en tm ean s of g et t i n g at the l oss suff ered. I tm ay be d i scarded an d other
m ore acc u rat e m ean s r esort ed to, if, f or sp e ci alreasons, i ti s not exact or o th e rw ise n o t a p p li ca b le.”). I n F. J
. W

alke rL t d. v . M / V L EMONCORE , o urc o ur the l d: wher e t he
c ar r i e ri s r e s po ns ibl e f o rda m ag e s , i t“i s i n no po s i t i o n t o c o m pl ai n t hatt he dam aged par t i es c an notes t abl i sh pre c i se l y t he l os s i tcause d”
. 561 F. 2d 1138, 1147 ( 5t h C i r . 1977) (c i t i ng D a n ie ls T o w ingS v c ., In c . v . Na t Ha r r i s o n A s s o c ., Inc. , 432 F
. 2d103 , 105 –06 ( 5th C i r. 19 7 0 ))
. The L EMONCOREdi st ri ctcourt

“ w as faced w i t h est abli shi n g da m ages by on e of tw o m et h ods, b ot h of w h i ch w ere in e x a c t”
. I

d. a t 1 1 4 7
. A fte rn o tin gth e “p r im a r yo bje c t in a w a r d in gd a m a g e s is to i n d em n ifyp l a i n tiff f or th e loss su stain edbyrea son of th e ca rrier’ s fa u l t”, LEMONCOREm a d e clear th a t i n a b i l i ty to p rov e ex a ct da m a ge s i s n ot fa tal t o as h ip p e r ’ s ca s e . Se ei d. at1146–4 7 ( quot i ng I nt e rs t at e S t e e lCo r

p . v . S. S. C ryst al G em , 317 F
. Su pp . 112 , 121 ( S
. D
. N
. Y
. 197 0) ) (h o ld in gth at w h ere da m a g e s a re un cl ear or di f f i cul tt o prove, “t h e courtshou l d u se t h e best in d ica tion it ca n ob ta inra th e r th a n d e n ya n yre co v e ry”). R est ated, un cert ai n t y does n otp r e c lu d e re c o v e r y . I d. ; seealso S AUL S O RKIN , G OODSI N T RANSIT § 1 1. 03 n. 27 ( 20 09 ) (“ U nc e r t ai nt y i n a s c e r t ai ni ng Case: 08-31075 Document: 00511012649 Page: 12 Date Filed: 01/26/2010N o. 08- 31075

13 d a m a ge s doe s notm ean t hatpl ai nt i f f i s pre c l uded f

r om r ec ove r i ng. ” (c i t i ng C. It o h & Co. v . He l le ni cLi ne s , Lt d. , 4 7 0 F
. S u p p . 59 4 , 59 8 ( S
. D
. N
. Y
. 19 7 9 )) ). “ In
s u c h as itu a tio n th e d is tr ic t c o u r t h a s ad i s c r e t i o n to ch o o s e th e m e th o dit
con sider s be st. ” LEMONCORE , 561 F. 2d at1147 (c i t i ng Ill. Cen t. , 281 U
. S. 57; S an t i ago v. S ea- L an dS vc. , I n c. , 3 6 6 F
. S u p p . 1 3 0 9 , 1 3 1 4

– 1 5 (D .P .R
. 1 9 7 3 )). LEMONCORE u l t i m ately ap proveda m et h od of ca lcu l ati n g da m ages s im ila rto th e m a r k e t-v a lu e m e th o du r g e db yW e s te r n B u lk ; b u t, in th is i n st an ce, i ti s t h e gen eralC O G S A

- da m ages pri n ci pl es LEMONCOREexpresses t h at are persua sive. In t h e l i gh t of such pri n ci pl es, t h e di st ri ct court di d n oterr by n otrequi ri n g at- di scharge m arket value. O bviously, becau se of t h e na t u re of t r ans po r t i ng c o l d- r o l l e d c o i l s , T radeA rbe d c o ul d no tdi s c o ve rt he e xt e nto f t he d a m a ge to t h e m u n til th eyw ere u n w ra p p ed ; an d , be ca u se th eir ulti m a te d estina ti on s w ere u p rive r, the yw e r e n ot u n w ra p p edu n tilm ore tha n a m on th af t er th ey w ere d isch a rg ed f rom t h e M E D I T R A D E R ( an d thereby d i scharged fro m W e ste rn B u lk ’ s c o n tro l). Tr ad e Arb e d’ s e vi de nc e r e ga r di ng bil l s - s e ve n a nd - e i ghtc ar goi nc l ude d: in v o ic e s (w h ic h ca n b e u s e d t o d e te r m in e m a r k e t v a lu e , see E m m c o I ns. Co. v. W a l le n i u s Ca r i b b e a n L i n e, S
. A. , 4 9 2 F .2 d5 0 8 , 5 1 4 (5 t h C ir . 1 9 7 4 )) a n ds a le confirm ati on s f

or t h e coil s c orres pon di n g w i t h sal e contr act s enter ed both befor e an d aft er di scharge (both f or th e sam e pri ce, $18
. 33 cw t) ; evi den ce of t h e pri ce f orw hi c h t he coil s w er e so l d at sa lvage ( $11. 80 cw t) ; an d an exper topi ni on t hat t he salva gepr i c e w as “fair , r e as o nab l e , [ and] r e pr e s e nt s c o ndit i o ns ” o f t he d a m a g e dco ils a s v ie w e dd u r in gth e s u rv e y . T h e e v id e n c e re g a r d in gth e b ill-s ix
c oil s w as s i m i l ar , w i t h a cont r ac tpri c e of $21 c w tan d a sa lvage pr i c e o f $11. 60
cw t. Th e salvage - sa l e agr ee m ent s, w hi c h TradeArbed ent er ed af t eri t s or i gi nal buy e r s c o m pl ai ne d thatt he c o i l s w e r e da m ag e d, w e r e ne c e s s ar i l y no n- e xi s t e nt atdi s c har gebe c aus e T r ad e Arb e d di d notknow, and c o ul d notha vekno w n, o f t he Case: 08-31075 Document: 00511012649 Page: 13 Date Filed: 01/26/2010N o. 08- 31075

14 da m ag e , o ri t s e xt e nt , a tt hatt i m e . The s e a gr eem en t s c o nt e m pl at e d the percentages of

coil s dam aged an d w ere o th erw i se s peci f i c t o t h e st atus of

each
se tof c oil s. TradeA rbed c oul d nothave pro duce d ev i denc e o f t he at

- di sc harge

“ m arket pri ce” of thi s cert ai n n u m ber of coil s con t ai n i n g t h i s c ert ai n nu m ber of
va r i o us de fe c t s . W e s t e r n B ul k pr o vi de s no r e as o n t o f i nd c l e ar l y e r r o ne o us t he di s t r i c tc o ur t ’ s f

i ndi ng Tr ad e A rbed pr e s e nt e d s uf f i c i e nte vi de nc e t o de t e r m i ne a c tu a l d a m a g e s . W e s t e r n Bul k r e l i e s o n SOLAR ST, w h ic h co n c e r n s d a m a g e s fo ro il s o ld at a di scoun t af

t er bei n g n egl i gen t l y contam i n ated by it s carri er. T h a t ca se, h ow ever, i s di st i n cti n severalw ays f rom t h e i n st an tm att er. For ex a m pl e, u n l i ke the SOLAR ST d is tr ic t c o u r t, see 250 F
. 3d at 315 , t h e di st ri ctcourthere
w as n otpr e s e nt e d wi t h e vi de nc e i tc o u l d hav e us e d t o a pply t he m ar ke tv al ue r u le
. A s a n o th e re x a m p le , th e d is tr ic t c o u r t’s d a m a g e d e te r m in a tio n inth is i ns t anc e di d n oti m pl i c at e c o nc e r ns t hatus i ng a s ubs e que ntv al ue w o ul d m ak e th e ca r r ie ra “ g u a r a n to ro f th e u p s a n dd o w n s o f c o m m o d ityp r ic e s ”. S ee Hol d en v . SS KEN

DALL FI

SH, 3 9 5 F .2 d9 1 0 , 9 1 3 ( 5 th C ir . 1 9 6 8 ); s e ea ls o SOLAR ST, 250 F
. 3dat 312 –15
. A s a f i n alexam pl e, f

or th e bi l l s- seven an d -e ight c oi l s, e vi de nc e s ho w e d the m ar ke tr e l e va ntt o t hi s t r ans ac t i o n— i
. e. , t he v al ue o f t he
u n d a m a ge d go od s vis-a-vi s T ra d eA rb ed a n d th e bu ye rs— d i d n o t flu ctu a te betw een di scharge an d re- sal e. 2. F o rits a lte r n a tiv e d a m a g e s co n te n tio n— th a t t h e d is tr ic t c o u r t s h o u ld h ave ap pl i ed C O G S A ’ s $5 00-per- pa ckag e li m i t ati on— W est ern B u l k m ai n t ai n s: eit hert he c harter p a rty i s t he c ont r ac tof c ar r i age, and C O G SAi s t her eby i nc o r po r at e d; o r , t he b i l l s o f l ad i ng ar e t he c o nt r act s o f c ar r i ag e , a nd CO G SA ap pl i es of

i t s o w n f

orce. The CO G SA pac ka gel i m i t at i o n pr o vi de s , i n r e l e va nt p a r t: Case: 08-31075 Document: 00511012649 Page: 14 Date Filed: 01/26/2010N o. 08- 31075

15 N e i t h e rt h e c a r r i e rn o rt h e s h i p s h a l li n a n ye v e n tb e o rb e c o me l i ab l e f o ra ny l o s s o rda m ag e t o o ri n c o nne c t i o n wi t h t he t r a ns p o r t a t i o n o f

g o o d s i n a n a m o un te x c e e d i ng$ 5 0 0 p e rpac kage

. . . unl es s t he nat ure and val ue o f s uch go ods have bee n dec l ar ed by th e s h ip p e rb e fo r e s h ip m e n t a n din s e r te din t h e b ill o f la d in g . T h is d e c la r a tio n , if em b o d ie din t h e b ill o f la d in g , sh a ll b e p r im afa c ie e v id e n c e , b u t s h a ll n o t b e co n c lu s iv e o n th e ca r r ie r . B y agreem en tbetw een t h e carr i er, m aster , or agen tof the carr i er, a n dth e s h ip p e ra n o th e rm a x im u m a m o u n t th a n th a t m e n tio n e din th is p a r a g r a p h m a yb e fix e d : Provi d ed , T h a t s u c h m a x im u m s h a ll no tb e l e s s t han t he f i gu re abo vena m e d. I n no e ve nts hallt he c a r r i e rb e lia b le fo rm o r e th a n th e a m o u n t o f d a m a g e a c tu a lly s us t ai ne d. 4 6 U .S .C
. § 3 0 7 0 1 , n o te § 4 (5 ). W est ern B u l k assert s t h e charterparty itneg ot i ated w i t h T radeA rbed
r e q u ir e dth a t C O G S Ab e in c o r p o r a te dina ll b ills o f la d in g , a n ds u g g e s ts th is gav e t h e requi si t e noti ce and opp ort u n i t y for T ra deA rbed to decl are a higher
va l u e . S e e gen er a lly Bro wn & Ro o t, I n c . v . M / V PEI

SA NDER , 648 F. 2d 415, 420 –25 ( 5th C i r. 198 1) ( di scussi n g fai r- opp ort u n i t y doctr i n e)
. Fu rt h er, W est ern Bul k c o nt e nds Tra deArb e d, as o phi s t i c at e d s hi ppe r , i s no tt he t yp e pa r t y t he fai r-op p ortu n i ty d octrine i s d esign edto pro tect. T h e di st ri ctcourthel d: “ C O G S A , w i t h t h e excepti o n of t h e l i m i tof
recover y, app l i es t o t h ese c on t ract s of carri age”, ru l i n g t h at “nei t h er [t h e charter pa r t i e s ] no rt he b i l l s o f l ad i ng e vi de nc e afairo ppo r t uni t y t o de c l ar e ahi gher value f or th e shi pm en tso as t o i n vok e t h e . . . pack age l i m i t ati onbecau se m ere in c o r p o r a tio n o f [C O G S A] in to th e b ills o f la d in gth r o u g h th e ch a r te rp a r tyis in s u ffic ie n t n o tic e ”. M EDI TRADER , 513 F. Supp. 2d at625. C o n tr a r yto W e s te r n B u lk ’ s p o s itio n , to in v o k e th e p a c k a g e lim ita tio n , it i s ne c e s s ar y t o pr o vi de f ur t he re vi de nc e b e yo nd i nc o r po r at i o n o f CO G SA i nt o t he
c o nt r ac to f

c ar r i ag e , s uc h a s t he c ar r i e r ’ s g ivi ng t he s hi ppe rac ho i c e o f r at e s a nd
v a l u a t i o n s . S ee SA VA , 84 9 F. 2da t1 71 n. 6 ( “ [W ] e ha veno the l d .
. . t hatt he Case: 08-31075 Document: 00511012649 Page: 15 Date Filed: 01/26/2010N o. 08- 31075

16 m ere i n corpora tion o f C O G S Ai n t o a bi l lof l ad i n g constit u t es p rim afa cie
e vi de nc e o f

fairo ppo r t uni t y”
. )
. The c ar r i e rb e ar s a n i ni t i alb ur de n o f s ho w i ng it o ffe r e dth e s h ip p e rafa iro p p o r tu n ityto a v o idth e lim ita tio n . Id
. a t 1 6 9 . A pri m a f aci e c a s e o f fa iro p p o r tu n ityca nb e m a d e b yin tr o d u c in g , e . g. , evi den ce of a publ i she d t ar i f

f t hat“very c ar ef

ul l y gav e Shi ppera choi c e o f val uat i ons by
a c h o ic e o f p r e c is e ly d e fin a b le fr e ig h t r a te s ”. PEI SA NDER , 6 4 8 F .2 da t 4 2 4 ; see als o Wuer t t em b e rgi s c he & B adi s c he Vers i c her ungs-A kt i e nges e l ls c haf tv. M /V STUTTGART EXPRE SS , 7 11 F
. 2d6 21 , 6 22 ( 5t h Ci r . 1 98 3) ( ap plyi ng PEI SA NDER t o i n vok e C O G S A pa ckag e l i m i t ati on an d em ph asi zi n g exi st en ce o f ta riff th a t “cle a rlyg a v e th e sh ip p e r a ch o ice of v a lu a tion s”). T h e di st ri ctcourtdi d n otcl earl y err i n f i n di n g: t h at W est ern B u l k d i d n ot provi de T radeA rbed su f f i ci en tnotic e of

a fai r opportun i t y t o decl are a higher
va l ue ; a nd that , the r e f o r e , t he pa c ka gel i m i t at i o n di d n otapply.

C. F i n al l y, W est ern B u l k ch al l en ges t h e di st ri ctcourt ’ s aw a rd in gdam ages be f o r e t he s e c o nd s t ag e o f t he b i f ur c at e d t r i al
. The a w ar d w as b ased on t he d is t r ic tco u rt’s ru lin gW e st e r n B u lk w a s th e o n lyC O G S Ac a r r ie ro f T r a d e A rb e d ’s
c o ils a n dF r e e m a k ’ s p ip e s . W e s te r n B u lkco n te n d s : th e d is tr ic t c o u r t s h o u ld h ave t reat ed i t s carri age of cargo on the M E D I T R A D E R a s c om m on , not private;
a n d t h e b i l l s of l a d i n g, no t th e ch a rter p a rti es, con sti tu tedthe ap p l i ca b le
c o n t r a c t s o f c a r r ia g e . I f c a r r ia g e w e r e c o m m o n , S e a fa r e r s (t h e M E D I T R A D E R ’s
ow n er) w ou l d als o be a C O G S Acarr i er li able f or dam age to th e cargo. 1. C h a r te rp a r tie s a r e th e c o n tr a c ts o f c a r r ia g e inp r iv a te ca r r ia g e , b u t b ills
o f la d in ga r e s u c h c o n tr a c ts in c o m m o n ca r r ia g e . S ee T H OMAS J. S CHOENBAUM , A DMI RALTY AND M AR I T I ME L AW§ 1 1- 6 ( 20 04 )
. The di s t r i c tcourt ’ s de c i di ng W est ern B u l k w as th e sol e C O G S Acarr i er of t h e col d-r ol l ed c oi l s an d, t h eref ore, t h e onl y pa rt y l i ab le for da m ages to t h em , f l ow ed f rom i t s r u l i n g t h e charter Case: 08-31075 Document: 00511012649 Page: 16 Date Filed: 01/26/2010N o. 08- 31075

17 p a r ty , n ott h e bi l l s of l ad i n g, w as t h e rel evan tcontr actof carr i age betw een TradeArbed and W es t er n B ul k. W es t er n B ul k w as t he o nl y c hart er ert o s i gn t hi s c hart erpar t y, and ourpr ec ede nt“r equi r es pr ivi t y of co n trac tof c ar r i age b e fo r e lia b ilityu n d e rC O G S Aa r is e s ”. Thy s s e n S t e e lCo
. v . M / V KA VO YERAKAS , 5 0 F .3d 1 3 4 9 , 1 3 5 3 (5t h C ir. 1 9 9 5 ). T h e is s u e tu r n s , th e r e fo r e , o n w h e th e rth e d is tr ic t c o u r t e r r e dw h e n it f ou n d the ap pl i cabl e con t ractof carri age t o b e the cha rt er p art y, n otthe bill s of l ad i ng ( s i gne d no to nl y byW e s t e r n Bul k, b uta l s o b y an ag e nto f Se afar e r s , t he M E D I T R A D E R ’ s o w n e r). S e eM EDI TRADER , 51 3 F. Supp. 2d at624–25
. W es t er n B ul k m ai nt ai ns the M E D I TR A D E R w as engag ed i n co m m on c ar r i age b e c a u s e it c a r r ie dm o r e th a n o n e s h ip p e r ’ s ca r g o . I n Thy s s e n , In c . v . NOBI LITY M V, 421 F
. 3d 295 ( 5th C i r. 200 5) , as here, t h e di st ri ct court f

ou n d a voyage ch art er, not t h e bi l l s of l ad i n g, w as t h e contr act
o f c a r r ia g e , i d. at 304 , w h ere th e shi p als o “ carri ed other cargo .
. . on beh al f of
a n o th e rca r g o s h ip p e r”, i d. a t 2 9 7
. A s h e r e , th e b ills o f la d in gs p e c ific a lly in c o r p o r a te dth e ch a r te r . I d. at 307
. R evi ew i n g f or c l ear e rr o r, o u r court
a ff i rm ed th e dist ri ct cou rt’ s fi n d i n g th e sh i p “w a s en ga ge di n pr iva te car ri a ge ”, i d. , an d den i ed t h e con t en t i on tha t“m u l t i pl e sh i pp i n g defeat s anyi n di cat i on of privat e c ar r i age t hata bil lof l adi ng i nco r por at i ng t he t er m s of t he vo yage c h a r te rm a yco n n o te ”, i d. at305. P u rsuan tt o NOB I

LITY, t h e d i s t ric tc o u r td i dn o te r ri n d e c i d i n gt h e MEDI T R A D E R w a s en gag ed i n private c arri age w i t h res pect t o T radeA rbed’ s c oi l s, w i t h t h e ch a rte r p art y, not t h e bi l l s of l ad i n g, bei n g t h e app l i cabl e contr actof carri age. Th eref

ore, W est ern B u l k, as t h e onl y cha rt erer t h at si gn ed the cha rt er pa r t y, w as t he o nl y pa r t y i n pr ivit y w i t h Tr ad e Arb e d. Becau s e , a s no t e d, o ur pr e c e de ntr e quir e s pr ivit y f o rCO G SA c ar r i e rl i ab i l i t y, W e s t e r n Bul k was t he Case: 08-31075 Document: 00511012649 Page: 17 Date Filed: 01/26/2010N o. 08- 31075

18 o nl y CO G SA c ar r i e r ; no C O G SA l i ab i l i t y all o c at i o n r e m ai ns t o b e r e s o lve d a tt he
s e c o n ds ta g e o f th e b ifu r c a te dt r ia l. A c c o r d in g ly , th e d is tr ic t c o u r t d idn o t e r rin
aw ardi n g da m ages aga i n stonl y W est ern B u l k f or Trad eA rbed’ s c oi l s. 2. W est ern B u l k als o contends the di st ri ctcourterr ed becau se itdi d n ot
rese rv e a l l oca ti on of l i a b i l i ty f or da m ages t o F reem ak ’ s pi pes f or t h e second p art of t h e bi f u rcat ed t ri al , assert i n g t h e di st ri ctcourtshou l d h ave on l y determ i n ed t he a m o unt of

d am ages. W est ern B u l k cl ai m s it s fai l u re t o i n t rodu ce evi den ce as t o t h e cause of

t h e pi pes’dam ages w as i n reli an ce on t h e bi f u rcat i on order sep a ra ti n g “ca rg o q u a n tu m cl a i m s” f rom “i ssu es o f l i a b i l i ty”. T h is c la im , a s w ith th e c o ils , tu r n s o n w h e th e rW e s te r n B u lkw a s th e o n ly C O G S Acarr i er f

or the pi pes. F or the sam e reason s the cha rt er part y betw een T radeA rbed an d W e ste rn B u lkco n stitu te s th e co n tra ct o f ca rr ia ge betw eenth ose pa rt i es, t h e di st ri ctcourtrul ed: “T h e p rivate c arri age ag reem en t
. . . betw een W est ern B u l k an d F reem ak i s t h e contr ol l i n g contractof carr i age” f

or th e pi pes. M EDI TRADER , 513 F. Supp. 2d at624. A s w ith th e T r a d e A rb e db ills o f la d in g , th e F r e e m a kb ills e x p r e s s ly i n corporat ed the rel evan tcharterparty. N oth in ga b ou tt h e F reem ak charter par t y s ugges t s orc om pel s a c onc l usi on i nco nsi st ent w i t h ourea r l i erhol di ng as t o Tr ad e Arb e d. Fo rt he r e as o ns pr o vi de d sup ra , t h e d is tr ic t c o u r t d idn o t e r rin de cid in gth e charterparty, rat h er th an t h e bi l l s of l ad i n g, w as t h e contr actof
c a rr ia g e ; a n d , inco n clu d in gW e ste rn B u lkw a s th e so le ca rr ierof F re e m a k ’s pi pes. B ec ause t he di st r i c tc our tdi d n oterri n det er m i ni ng W es t er n B ul k t o b e t h e sol e carr i er f

or th e pi pes, i t s aw ardi n g da m ages aga i n stW est ern B u l k i s not i n consi st en tw i t h t h e bi f u rcat i on order. A s t h e sol e C O G S Acarr i er, W est ern Bul k i s s o l e l y r e s po ns ibl e f o rt he CO G SA d am ag e s . Thi s r e s ul t do e s no tm e an, a s W e s t e r n B u lk a s s e r t s , t h a tt h e d is t r ic tc o u r ttr e a t e dW e s t e r n B u lk ’s Case: 08-31075 Document: 00511012649 Page: 18 Date Filed: 01/26/2010N o. 08- 31075

19 ad m i s s i o n t hat t he pi pe s w e r e da m ag e d as t ant am o unt t o an ad m i s s i on of l i abili t y. R ather, t h e court ’ s r u l i n g t h at W est ern B u l k w a s t h e sol e carr i er sim p l y p reclu d edcon sider a ti on of th e fur th er q u estion o f h ow to all oca te l i a b i l i ty
am o ng t he c ar r i e r s , w hi c h woul d ha veb e e n c o ns i de r e d at t he s e c o nd s t ag e o f t he b ifu r c a te dtr ia l. III. F o rt h e f

o r e g o i n gr e a s o n s , t h e j u d g me n ti s A F F I RMED. Case: 08-31075 Document: 00511012649 Page: 19 Date Filed: 01/26/2010