Opinion ID: 507381
Heading Depth: 2
Heading Rank: 2

Heading: The Carrier's Liability

Text: 22 Having resolved the limitation issue adversely to Jugolinija, we reach the issue raised in its cross-appeal: whether the district court erred in finding that the cargo was delivered to the ship in good condition. Although we must review a district court's factual findings under a clearly erroneous standard, see Fed.R.Civ.P. 52(a), Jugolinija essentially challenges the district court's finding on a legal ground. After carefully considering Jugolinija's argument, we find ourselves unwilling to disturb the district court's decision. 23 Jugolinija contends that the district court erroneously focused its inquiry concerning the coils' preshipment condition on evidence of rust and ignored evidence of other physical irregularities, such as manufacturing defects which were discovered when the coils were later tested and mechanical damage which was observed during loading. Jugolinija argues that such damaged goods cannot by definition be in good condition. In reply, Coutinho is willing to admit that some coils had broken bands and that some had indents or cuts. Coutinho notes, however, that it sought damages because wetting of the cargo during carriage aboard the SAVA allegedly caused heavy rusting of the steel; therefore, it argues, only evidence of rust was relevant in determining the coils' preshipment condition. We agree. In the only case relied on by Jugolinija to support its position, the court stated that a plaintiff seeking to recover for damaged cargo must show that the goods were delivered to the carrier free of the damage for which recovery is sought. Caemint Food, Inc. v. Brasileiro, 647 F.2d 347, 355 (2d Cir.1981). In this case, because the alleged injury that occurred during shipment was rusting, the relevant aspect of the coils' condition was the presence of rust. Jugolinija does not challenge the district court's finding that the coils were delivered to the carrier free of rust. Thus we must conclude that the coils were in good condition when the carrier received them. 8