Setefano v. HSAC Logistics, Inc.
Setefano v. HSAC Logistics, Inc.
Opinion of the Court
ORDER GRANTING MOTION TO DISMISS
Introduction
On January 26, 2004, Plaintiff John Setefano (“Plaintiff”) filed an action against Defendant HSAC Logistics, Inc. d.b.a. Columbus Line (“Defendant”) for breach of contract, negligence, and negligence with wanton disregard in relation to a shipping contract entered into between the parties to transport Plaintiffs vehicle from Seattle, Washington to Pago Pago, American Samoa. Plaintiff alleges that the parties entered into the contract in May 2002, and that Defendant breached the contract
On September 30, 2004, Defendant moved to dismiss the action in part because the bill of lading contained an express provision requiring all actions to be brought within one year, and similarly, because the Carriage of Goods by Sea Act (“COGSA”), which Defendant maintains governs the parties’ agreement, likewise contains a one year statute of limitations period.
Having examined the bill of lading and applicable statutory authority, we grant Defendant’s motion.
Discussion
We begin by noting that Defendant correctly concludes that COGSA applies in this case. See 46 U.S.C. §§ 1300-1315. Section 1300 of the Act states that “[e]very bill of lading or similar document of title which is evidence of a contract for the carriage of goods by sea to or from ports of the United States, in foreign trade, shall have effect subject to the provisions of this chapter.” Section 1312 of COGSA states that “foreign trade” within the meaning of the Act does not include carriage of goods between ports of the United States, its districts, territories, and possessions. Section 1312 states, however, that “any bill of lading or similar document of title which is evidence of a contract for the carriage by sea between such [domestic] ports, containing an express statement that it shall be subject to the provisions of this chapter, shall be subjected hereto as fully as if subject hereto by the express provisions of this chapter.”
Because the vehicle shipment occurred domestically between a state and a territory within the United States, we must turn to the contract to determine COGSA applicability. Section 3(a) of the parties’ bill of lading, entitled “Responsibility; Applicable Legislation” states in relevant part that “this Bill of Lading [is] subject to the provisions of any legislation compulsorily applicable to this Bill of Lading ... which gives effect to the Hague Rules contained in the International Convention for the Unification of Certain Rules Relating to Bills of Lading, dated at Brussels, August 25, 1924, including specific adaptations thereof, such as the Carriage of Goods by Sea Act of the United States (hereinafter ‘COGSA’).” As COGSA would not be “compulsorily applicable” in a transaction as this one, wholly between ports of the United States within the meaning of the Act, then Section 3(a) is not alone an adequate provision that expressly expands COGSA beyond its general applicability to foreign trade.
Having concluded that COGSA applies, we now turn to the enforceability of the statute of limitations period in this case. In Great American Ins. Co., we examined a contract dispute for the carriage of goods by sea from Australia to Guam and the Northern Marianas seeking damages for chocolates, meats, and rice ruined during shipping. 1 A.S.R.2d at 65-66. Recognizing that the plaintiffs cause of action accrued sometime in June or July 1980 at the very latest, but that the plaintiff did not bring the action until a year and half later, we rejected the plaintiffs claim under COGSA for failure to bring its action within the one year statute of limitations period. Id. at 66. In arriving at this conclusion, we stated that “the limitations period must be strictly enforced. COGSA derives from the Hague Rules of 1921 approved by the Brussels Convention of 1922-24 and has been adopted by nearly every major shipping nation for the express purpose of providing uniformity in international law .... Courts have uniformly dismissed cases brought beyond the statutoiy period without regard to the carrier’s lack of diligence or the merits of the claim.” Id. at 65.
While this language would appear to end discussion on the matter and preclude Plaintiffs action, we noted in Great American Ins. Co., that despite our view toward “strict enforcement,” we recognize two
Plaintiff argues that because Defendant did not raise COGSA as an affirmative defense, Defendant is barred from pursuing dismissal on these grounds in its current motion. We disagree. First, in its answer, Defendant raised as a defense “[a]ny claim of Plaintiff is limited by any agreement Plaintiff entered into with Defendant.” We find this statement adequately incorporates the COGSA statute of limitations period as a defense. And second, even had Defendant failed to raise COGSA, we would have concluded that the applicability of COGSA does not turn on whether a party chooses to raise it in its pleadings, but on whether the bill of lading itself, the governing document, requires its application. Because we adhere to a policy of strict enforcement of the COGSA statute of limitations period when applicable, we cannot ignore the requirements of the bill of lading simply because a defendant did not discuss them in detail.
Finally, that section 18 of the bill of lading, entitled “notice of claim; time for suit” likewise expressly creates a contractual one year statute of limitations period only further supports our finding that Plaintiff is time barred from his current action.
Order
Having found that Plaintiff has filed his cause of action after both the statutory and contractual statute of limitations period, as set forth in the bill of lading, have passed, we must grant Defendant’s motion. This action is therefore dismissed. It is so ordered.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.