Opinion ID: 321227
Heading Depth: 2
Heading Rank: 3

Heading: CATANACH, d/b/a ISLAND TRANSPORT

Text: 49 As with Heavy Lift, paragraph 2 of De Laval's bill of lading does not expressly include the overland transporter (Island Transport) within the definition of a carrier. At the very least, one would have to 'guess' (cf. Cabot, supra) whether that paragraph referred to the services provided by Catanach. The mere fact that paragraph 2 does not refer to Catanach does not, however, end our inquiry. Although the durden is indeed heavy, Catanach can succeed if other language in the documents expresses a clear intent to limit his liability. 50 Catanach argues that the combined effect of the contract of affreightment and the bill of lading establish the necessary clarity. The contract provides (in paragraph 2) that the cargo was to be transported from Palm Beach, Florida to the Virgin Islands Water and Power Authority Project. Since the bill of lading (in paragraph 1) limits liability after the generator was discharged from the ship, Catanach contends that the obvious intent was to protect the overland transporter just as the overseas carrier was protected. The district court adopted and refined this argument, stating that: 51 The contract of De Laval and Industries necessarily contemplated the overland portion of the voyage. It might even be reasonable to infer, from the previous dealings of those parties, that it was known that Catanach, on behalf of Industries, would be fulfilling that portion of the act of carriage, and to that extent, he was a person 'bound' by the terms of the contract. True, there was no specific mention of Catanach or Island Transport but I cannot believe that to expressly extend the benefit, as Herd's mandate requires, the beneficiary must be mentioned by name. Surely, De Laval received a copy of the bill of lading before shipping the generator and its contract amply demonstrates that it knew that the generator would be carried overland from the dock in Gallows Bay to as close to the construction site of WAPA as practicable. Unquestionably, plaintiff had to know that the $500 limit would apply to that protion of the carriage, certainly if Industries or Shipping had used a trailer bed of their own for that purpose. But, as I have said, by past practice, it was fairly to be contemplated that an Island Transport trailer would be used. 52 We do not dispute the findings of fact underlying this passage. We do, however, dispute their legal significance. The district court was not content with relying strictly upon the documentary provisions cited by Catanach (regarding the overland transport). Instead, the court found it necessary to look to extrinsic sources (e.g., the likely expectation of De Laval) in order to reach its conclusion. While we recognize that evidence of prior dealings is generally admissible to explain the intent of contracting parties, 13 we understand Herd & Company v. Krawill Machinery Corp.,supra, to preclude reliance upon such evidence in this context. It is inconsistent to require a clear expression of intent on the one hand while on the other resorting to extrinsic sources-- of which the contracting parties may or may not have actually been aware-- to interpret the documents. If the negotiating parties do not limit the liability of third parties within the 'four corners' of the documents, we will not recognize an extension of COGSA protection. Accordingly, we cannot treat as dispositive the district court's findings of fact with regard to the prior practices of De Laval. 53 Returning to the 'four corners' of the documents, we recognize that the district court did point to one other documentary provision to support its conclusion that Catanach was intentionally protected by De Laval. The court noted, separate from its findings with regard to prior practices, that paragraph 1(a) of the bill of lading states that: 54 If, however, it shall be adjudged that any other than the owner or demised charterer is carrier and/or bailee of the goods all limitations and exonerations from liability provided by law or of the terms hereof shall be available to such other. 55 The district court found this section applicable by determining that Catanach was a bailee. 56 For a variety of reasons, we conclude that the provision quoted above does not extend COGSA protection to Catanach. 14 First, we note that the term 'other' is ambiguous. Does the term refer to any other person/ business? Or is the term more limited, referring only to a particular class of persons (e.g., any other substituted carriers)? The bill of lading provides neither answers nor clues to these questions. 57 Secondly, we deem the term 'bailee' too general a category to support a limitation of liability. The mere fact that Catanach may fit within the descriptive term is not determinative. See Cabot Corporation v. S.S. Mormacscan, supra, (denying a stevedore limited liability despite the fact that 'carrier' was defined as 'all persons rendering services in connection with performance of that contract'). Rather, there must be a specific link between the contract term and the party to be protected in order to satisfy the clarity requirement of Herd & Company v. Krawill Company. Absent such a link, courts cannot be confident that the contracting parties intended to extend COGSA protection. Given the substantial risks undertaken by a party who accedes to limitations of liability, we will not extend such limitations to third parties on the basis of mere speculation. 58 Finally, we doubt whether the district court considered the above quoted provision as a sufficient ground in and of itself, to justify protection of Catanach. Had the court felt the provision to be sufficient alone, it no doubt would have extended the limitation of liability to Heavy Lift as well, since Heavy Lift was a bailee, albeit for only a short period of time. We note in this regard that Catanach, as appellee in De Laval's cross-appeal, did not even cite this 'bailee' provision in his brief on the issue of limited liability. 59 The ambiguities in the 'bailee' provision, and lack of specific identification therein, lead us to the conclusion that De Laval and Industries did not clearly express by that provision an intention to limit Catanach's liability. Rather than 'stretch the language when the party drafting . . . a form contract has not included a provision it easily might have,' 15 we hold that neither the 'bailee' provision nor any other documentary provision, alone or in combination with other provisions, clearly expresses an intention to protect parties which may transport the generator over land to its ultimate destination. Accordingly, we find reversible error in the district court's limiting Catanach to a liability of $500. 16