Opinion ID: 364887
Heading Depth: 1
Heading Rank: 1

Heading: solicitation and handling of damaged goods

Text: 7 The underlying facts as found by the district court are not in serious dispute regarding the solicitation and handling of the damaged goods carried by the owner's two vessels, the S. S. Tendo and the S. S. Lindo.
8 The goods were damaged some time before their overland delivery to the Portsmouth Marine Terminal in Portsmouth, Virginia. The goods, in visibly damaged paper cartons, were stevedored by Nacirema Operating Company, Inc. 2 pursuant to its contract with MCL's local port agent, Hampton Roads Steamship Agency. Nacirema loaded the cartons into two containers owned by MCL for shipment to France on board the Tendo. 9 Nacirema sealed the containers and informed Hampton Roads that the cartons were damaged by noting on tally sheets all bundles mashed, torn and bands broken. These tally sheets were drawn on printed forms provided by Portsmouth Terminals, Inc., the terminal operator, 3 and were carried to Hampton Roads by a runner for the terminal operator. The only notice of cargo which was sent to the ship's personnel was a dock receipt tally sheet showing the nature and weight of the cargo but not its condition. This notice was on MCL's printed form and contained no space for remarks about the condition of the cargo to be loaded and carried. 10 When Hampton Roads received the tally sheets prepared by Nacirema showing carton damage, it sent notice of the damage to MCL's agent in New York, Constellation Navigation, Inc. Ignoring Hampton Roads' notice of damage, Constellation issued a bill of lading which contained no exception for the damaged condition of the shipping cartons. 11 When the Tendo was ready to sail and before the goods were loaded on board, it was noticed that one of the containers was bulging, and it was not put on the ship. The damaged cartons were reloaded into a stronger container by the stevedore Nacirema but not in time to sail on the Tendo. This second container was shipped on the later sailing Lindo. 12
13 The bill of lading was issued on MCL's printed letterhead form and was signed by MCL's agent. It contains a space for the name of the carrying vessel but no space for disclosure of the vessel owner's name; the owner's name does not appear on the bill. The bill of lading identifies the Tendo as the carrying vessel and contains a clause permitting carriage of the cargo on vessels other than the one named. The printed caption, For the Master, appears under the signature line. 14 On the back side of the form a clause captioned Contracting Parties states, 15 (T)he contract evidenced by this (Bill of Lading) is between the Merchant and the Carrier, MCL, Ltd. and it is agreed that MCL, Ltd. only shall be liable as Carrier under this (bill of lading). 16 The bill of lading recites, as required by 46 U.S.C. § 1312, that COGSA governs its terms, and the whole of COGSA is incorporated by reference into the bill of lading including the COGSA definition of the term, carrier.