Denby v. Seaboard World Airlines, Inc.
Denby v. Seaboard World Airlines, Inc.
Opinion of the Court
This appeal is- from an order of Chief Judge Weinstein in the District Court for the Eastern District of New York, 575 F.Supp. 1134, granting summary judgment to the defendants in an action by the insurers of a shipper for loss of cargo. The basis for the order was the shipper’s alleged failure to give notice of the loss within seven days after receipt of the cargo as required by Article 26(2) of the Warsaw
The Facts
Plaintiff Denby, representing a group of insurance underwriters at Lloyds, brought this action to recover $673,190.16, the market value of thirty-six kegs of silver residue and flake shipped by the subrogor, Kodak Limited (Kodak), from England to John F. Kennedy International Airport in New York City by defendant Seaboard World Airlines, Inc. (Seaboard).
On July 11, 1980,
SCRAP PAPER & SILVER RESIDUE FOR
SILVER RECOVERY PURPOSES 8.32m3
SPECIAL INSTRUCTIONS CONTAINER ARA5661 SB, SAID CONTAIN 40 PACKAGES No.s KROl 1/26.KP053/1-4,KL00 4/1-10.
In another box, “Handling information”, the air waybill stated:
C.A.N. 80172 2 Commercial Invoices 1 CONTAINER ARA 5661 A/F 1/10.
Later Seaboard certified on the air waybill that the container had been shipped on flight 305 on July 16.
Flight 305 arrived in New York at 12:25 a.m. on July 17. The container was stored in Seaboard’s warehouse until July 18 when Edward Kochersberger, a driver for Rochester Air Freight, commissioned by the consignee, Eastman Kodak Co. (Eastman), arrived to pick up the shipment. Precisely what happened then is not completely clear, as will be explained below; it suffices here to say that Kochersberger received only four cartons instead of forty.
On August 26 Eastman gave written notice to Seaboard claiming the loss of thirty-six kegs of silver residue and flake. The notice said:
The consignment consisted of 40 pieces. However, when the container was opened at the Seaboard World Airlines warehouse, only four bails of silver flakes were in the container.
Nearly a month later Eastman corrected the notice to say that the four barrels were scrap paper, not silver flakes.
The Proceedings in the District Court
The complaint of Denby as Eastman’s subrogee characterized the shipment as
After appropriate further proceedings, Chief Judge Weinstein granted the motion. The bulk of his opinion was devoted to Eastman’s claim that the case was not one of “damage”, for which Article 26(2) provides a seven day notice requirement, but of loss, for which no time limitation is set. He rejected this largely on the basis of the decision of the House of Lords in Fothergill v. Monarch Airlines, Ltd., [1980] 2 Lloyd’s L.R. 295 (hereafter cited by page number only) that the loss of part of the contents of a passenger’s suitcase constituted damage to baggage, a claim for which was barred by failure to make a complaint within seven days from the date of receipt.
DISCUSSION
(1) Application of Article 26(2) of the Warsaw Convention
As noted in Reed v. Wiser, 555 F.2d 1079, 1082 n. 5 (2 Cir.), cert. denied, 434 U.S. 922, 98 S.Ct. 399, 54 L.Ed.2d 279 (1977), “[i]n order to insure uniformity of interpretation, which was one of the paramount objectives of the Convention,” the text, as stated in Article 36, “est rédigée en frangais en un seul exemplaire” [“is drawn up in French in a single copy”]. It was this text which the Senate ratified and the President proclaimed, 49 Stat. 3000 (1934). Immediately following the French text is an English translation which apparently was before the Senate, id. at 3014.
The French text of Article 26 reads as follows:
(1) La reception des bagages et mar-chandises sans protestation par le desti-nataire constituera présomption, sauf preuve contraire, que les marchandises ont été livrées en bon état et eon-formément au titre de transport.
(2) En cas d’avarie le destinataire doit adresser au transporteur une protestation immédiatement aprés la décoverte de l’avarie et, au plus tard, dans un délai de trois jours pour les bagages et de sept jours pour les marchandises á dater de leur reception. En cas de retard, la protestation devra étre faite au plus tard dan les quatorze jours a dater du jour ou le bagage ou la marchandise auront été mis a sa disposition.
(3) Toute protestation doit étre faite par reserve inscrite sur le titre de transport ou par un autre écrit expédié dans le délai prévu pour cette protestation.
(4) A défaut de protestation dans lés délais prévus, toutes actions contre le transporteur sont irrecevables, sauf le cas de fraude de celui-ci.
The English translation of this was:
(Í) Receipt by the person entitled to the delivery of baggage or goods without complaint .shall be prima facie evidence that the same have been delivered in*176 good condition and in accordance with the document of transportation.
(2) In case of damage, the person entitled to delivery must complain to the carrier forthwith after the discovery of the damage, and, at the latest, within 3 days from the date of receipt in the case of baggage and 7 days from the date of receipt in the case of goods. In case of delay the complaint must be made at the latest within 14 days from the date on which the baggage or goods have been placed at his disposal.
(3) Every complaint must be made in writing upon the document of transportation or by separate notice in writing dispatched within the times aforesaid.
(4) Failing complaint within the times aforesaid, no action shall lie against the carrier, save in the case of fraud on his part.
In view of the importance which the district judge properly attached to the decision of the House of Lords in Fothergill v. Monarch Airlines, Ltd,., supra,
Side seam completely parted from the case. Damage occurred on inbound flight.
The damage to the suitcase was later fixed at £ 12.50, the airline accepted liability, and this did not figure further. After reaching home Mr. Fothergill discovered that some of the contents were missing: a shirt, a pair of sandals and a cardigan, valued at £ 16.50. He made a claim against his insurers for this amount, which was satisfied. Thereafter, the insurers brought suit to recover this added amount, although Mr. Fothergill had given no further notice of loss to Monarch. The House of Lords agreed, that the suit was barred by failure to give notice within the time limited by Article 26(2) of the Convention.
One transparently clear observation is that Article 26(2) does not apply to a case of total loss, i.e., a case where the “shipment” never arrives. This must be so since whatever meaning might otherwise attach to “damage,” the notice must be given within a period of seven days from the receipt of goods and when there has been a total failure to deliver, the period never starts to run. When there has been a delivery of sorts, the issue becomes more problematic. One’s instant reaction is that while the laceration of Mr. Fothergill’s suitcase clearly was “damage”, the extraction of his shirt, sandals and cardigan was something else. Lord Wilberforce noted, p. 299, however, that the word “damage” was used in the Convention in more than one sense and thus the resulting ambiguity made it proper to resort to the purpose of Article 26.
Such real division as there was among the law lords concerned whether and, if so, how much reliance could be placed upon a debate at the Hague Convention in 1955. See 1 International Conference on Private Air Law, The Hague, September 1955, Minutes 398-99 (ICAO Doc. 7686-LC/140 1956). The remarks read as follows:
Mr. Drion (Netherlands) proposed, seconded by Mr. Sidenbladh (Sweden), the addition of the words “or partial loss” after the word “damage”.
Mr. Calkins (United States) said that, although this proposal might well clarify the law after the Protocol had been adopted and was in effect, what would be the construction put on the present text pending that time? It went without saying that “damage” included “partial loss”. He was opposed to the Netherlands proposal.
Mr. Loaeza (Mexico), Chairman of the Drafting Committee, speaking as the Mexican Delegate, said it was not necessary to insert the words “or partial loss” after the word “damage”.
Messrs. Drion (Netherlands) and Si-denbladh (Sweden) withdrew their proposal on the understanding that the word “damage” was to be understood as including the words “partial loss”.
Lord Fraser thought that any recourse to this material was improper, pp. 308-09; the other law lords thought the contrary but warned that such use must, in Lord Wilberforce’s phrase, be “cautious”, p. 302. While appellees are correct in saying that American courts exhibit much less reticence in relying on legislative history and point to the copious references to The Hague minutes in Reed v. Wiser, supra, 555 F.2d 1079,
Like the district judge we would cheerfully apply Fothergill to facts such as were there presented. We likewise have no difficulty in approving, as he did, 575 F.Supp. at 1141, Hartford Fire Insurance Co. v. Aerolineas Argentinas, 16 Av.Cas. (CCH) 17,940 (N.Y.App.Term 1981), which applied Fothergill so as to require timely notice of damage for a carton which was delivered short in weight. But caution is demanded when we turn from these simple cases to container shipments — a development which has proved to be as revoluntionary in shipments by air as by sea.
The district court understated the case when it said, 575 F.Supp. at 1137:
Containerization, which entails loading separately packaged goods and loose ob~*179 jects into one large reusable metal or fiberglass package, represents a technique probably unknown to the Convention’s drafters.
In 1929 cargo was carried in the cargo compartments of passenger aircraft; the small size of these and the high cargo rates generally prohibited the air transportation of anything other than relatively small packages, which possessed high value either intrinsically, e.g., precious metals, or because speed in transportation was essential, e.g., designer clothing, newspapers and motion picture films. The development of all cargo aircraft and of large-bellied passenger airplanes was not then foreseen. Containerization had not yet become a factor even in maritime transport.
The rationale of Fothergill would dictate that if the container here in question had itself been delivered in sealed condition to Eastman’s truckman and, on its arrival at Eastman’s plant, some cartons were found to be missing or stuffed with rags, Eastman would have had to give notice within seven days after receipt.
Seaboard’s motion for summary judgment was supported by an affidavit of Michael Iacovelli, its Director-Insurance and Claims, to which several exhibits were attached. After reciting the history of the shipment prior to the arrival in New York, which is not in dispute, the affidavit states, rather blandly:
Upon arrival, the consignee’s broker was notified in order that said broker could arrange for the clearance of the shipment with U.S. Customs and its pick-up by the trucker who would transport it to the ultimate destination in Rochester, New York. Once those arrangements were made, the shipment was picked up, without exception, by Rochester Air Freight, the truckman employed by the consignee to transport the shipment to Rochester.
It goes on to say that
[a]t the time of pick-up, by Rochester Air Frieght [sic] on July 18, 1980, the pick-up driver acknowledged receipt of the shipment in good order and condition, as can be seen from the annexed Pick Up Order and Tally Form (Exhibit “B”).
The Pick Up Order and Tally Form, a form prepared by Seaboard, described, in typewriting, the number of pieces as “1”, and the commodity description as “Scrap Paper & Silver Residue”, with a weight of 9829 pounds.
Plaintiff responded with affidavits indicating that the delivery at Kennedy Airport had not taken the smooth and routine course depicted by Seaboard.
1 CONTAINER SAID TO CONTAIN 40 PCS — SCRAP PAPER AND SILVER RESIDUE FOR RECOVERY PUR-POSESU
with a gross weight of 9829 pounds. This was followed by a written legend:
Packed with Four cardboard containers retaped after Inspection[,]
and then what we take to be the name of the Customs Inspector and the date.
A flurry of reply affidavits followed. Most of Mr. Montbach’s affidavit dealt with matters of law. He also made the point that Seaboard had no means of knowing that the container received at Heath-row in fact contained forty cartons rather than four — a point not having much weight in view of the fact that Seaboard itself had verified the weight stated in the air waybill prepared by Kodak and somewhat increased it to take account of the container’s weight, and his concession that “Seaboard received a sealed container, which container was pilfered while in Seaboard’s custody.” Iacovelli repeated that Kodak had arranged for the shipment of a sealed container which it had loaded and that Seaboard “delivered the same container, without written exception,, to Rochester Air Freight on July 18,1980” — statements that were the truth but hardly the whole truth. Kochersberger, the only affiant with personal knowledge of what happened at Kennedy Airport on July 18, filed a further affidavit. This repeated, much of what he had said before but went on to allege facts on which plaintiff would rely in support of its claim that it came within the fraud exception of Article 26(4) as well as some others; we quote the relevant portions in the margin.
We prefer not to decide how far to extend Fothergill to container shipments — an issue of importance not simply to these parties but to many others, in the absence of a complete record with respect both to the facts of this case and the custom of the trade. Since there is a disputed issue of fact which might lead to a result different from that reached by the district court and we are now obliged to take the version most favorable to plaintiff, see, e.g., Ad-ickes v. S.H. Kress & Co., 398 U.S. 144, 157, 90 S.Ct. 1598, 1608, 26 L.Ed.2d 142
(2) The fraud exception
As previously noted, plaintiff contended that even if Article 26(2) applies, the operative section, Article 26(4), which bars an action against the carrier in case of default in the giving of notice does not apply because of the exception, "save in the case of fraud on his part." The argument is that Seaboard's employees dissuaded Kochers-berger from taking action that would have complied with Article 26(2) and (3). Seaboard responds (i) that such dissuasion does not constitute fraud within Article 26(4); (ii) that there was no dissuasion since Kochersberger was told only that it was not proper for the Seaboard employees to make a notation on the Pick Up Order and Tally Sheet; (iii) that such a notation would not have constituted the complaint required by Article 26(2) and (3); and (iv) that Eastman had ample time to file a proper claim after delivery of the four cartons to Rochester. In granting summary judgment to Seaboard with respect to this contention, the judge relied on a rather ungenerous characterization of Kochers-berger's reply affidavit and on the fact that Eastman "was, or should have been, aware of the shortage from the time that Ko-chersberger delivered the shipment" to its Rochester plant. 575 F.Supp. at 1144. We shall deal with Seaboard's arguments seri-atim.
(i) Authority with respect to the meaning of "fraud" in Article 26(4) is sparse. Taken in context the term cannot be confined to the common law tort of fraudulent misrepresentation classically described in § 525 of the Restatement (Second) of Torts (1977).
(ii) Seaboard's second argument rests on an unduly literal reading of Ko-
(iii) Article 26(3) requires that the complaint “must be made in writing upon the document of transportation or by separate notice in writing.” Although the district court appears to have thought the Pick Up Order and Tally Form was a “document of transportation”, 575 F.Supp. at 1144, plaintiff seemingly concedes that' it was not, Brief for Appellant at 33, a concession we consider to be correct.
(iv) We likewise do not regard Seaboard’s final point as being so completely dispositive in favor of defendants as did the district judge, 575 F.Supp. at 1144. There is no general rule excusing the perpetration of a fraud because the victim could have rescued himself from it and Article 26(4) surely does not dictate one. Much may depend on exactly what Seaboard’s employees told Kochersberger at Kennedy Airport and what he told Eastman on delivering the goods at Rochester. We should not attempt to prescribe the law until we know the facts.
(3) The provisions of the air waybill and of the tariff
The district judge seemingly did not pass on a third objection by plaintiff to the grant of summary judgment to the defendants.
Paragraph 10 of the Conditions of Contract on the reverse side of the air waybill reads as follows:
(a) No action shall be maintained in the case of damage to goods unless a written notice, sufficiently describing the goods concerned, the approximate date of the damage, and the details of the claim, is presented to an office of Carrier within 7 days from the date of receipt thereof, in the case of delay unless presented within 14 days from the date the goods are placed at the disposal of the person entitled to delivery, and in the case of loss (including non-delivery) unless presented within 120 days from the date of issue of the air waybill.
(b) Any rights to damages against Carrier shall be extinguished unless an action is brought within two years after the occurrence of the events giving rise to the claim.
The major difference between paragraph 10(a) of the air waybill and Article 26(2) of the Convention is that the former makes
While Seaboard contests the last point, its principal answer lies in its tariff provisions. The tariffs filed with the Civil Aeronautics Board, pursuant to 49 U.S.C. § 1373, for all international carriers which were in effect in July, 1980 included Rule 23(B) (Time Limitations on Claims and Actions), which provided, in pertinent part, as follows:
No action shall be maintained in the case of damage to or partial loss of cargo unless a written notice, sufficiently describing the cargo concerned, the approximate date of the damage, and the details of the claim is presented to an office of Carrier within 7 days from the date of receipt thereof, in the case of delay unless presented within 14 days from the date the cargo is placed at the disposal of the person entitled to delivery of the consignment, and in the case of loss (including non-delivery) unless presented within 120 days from the date of issue of the air waybill.
The tariff thus makes clear, as the air waybill does not, that the 120 day limit applies only to cases where the seven day limit of Article 26(2) as construed in Fothergill does not. If this were the whole story, any argument of plaintiff on the basis of paragraph 10 of the air waybill would indeed be foreclosed, since it is common ground that in the event of conflict between the air waybill and the tariff, the latter prevails. See, e.g., Northwest Airlines, Inc. v. United States, 195 Ct.Cl. 356, 444 F.2d 1097, 1100-01 (1971); Rosch v. United Air Lines, Inc., 146 F.Supp. 266, 267 (S.D.N.Y. 1956); see also Davis v. Cornwell, 264 U.S. 560, 562, 44 S.Ct. 410, 410-11, 68 L.Ed. 848 (1924) (Brandeis, J.). However, the page of the tariff containing Rule 23(B) stated at its foot “Not applicable to SB”, the latter initials being defined in the tariff as referring to Seaboard. Defendants seek to answer this by saying that the quoted statement was a clerical printing error made by the organization which filed the tariff on behalf of all international carriers and was later corrected without request from Seaboard. More particularly, Seaboard claims that the language at the foot of the page is preceded by an asterisk but that none of the tariff provisions on the page bears one, whereas
The order granting defendant’s motion for summary judgment is reversed and the case is remanded to the district court for further proceedings consistent with this opinion.
. More formally, a Convention for the Unification of Certain Rules Relating to International Transportation by Air. The Convention was adopted at a conference held in Warsaw in 1929 and was adhered to by the United States in 1934. See 78 Cong.Rec. 11582; 49 Stat. 3013. The text of the Convention can be found at 49 Stat. 3000-3026; at T.S. No. 876, 137 L.N.T.S. 11; and at 49 U.S.C. § 1502 note. Applicability of the Convention is conceded.
. Seaboard has since been merged into Flying Tiger Line, Inc., also named as a defendant.
. All the events herein described took place in 1980.
. Article 26(2) of the Warsaw Convention provided a three day period for giving notice of damage to baggage. The Hague Protocol of 1955, which was ratified by Great Britian, see Carriage by Air Act, 1961, 9 & 10 Eliz. 2, ch. 27, § 1(1) & sched. 1, but not by the United States, altered this to seven days, the same period which the Warsaw Convention had fixed for damage to goods. See The Hague Protocol of 1955 art. XV, reprinted, in 2 International Conference on Private Air Law, The Hague, September 1955, Documents 8 (ICAO Doc. 7686-LC/140 (1956).
. Our agreement that high regard was proper is based not only on the respect always due to a decision of the House of Lords but also to the quality of the speeches of the law lords who participated in the Fothergill decision, and the special expertise in aviation law of Lord Wilberforce who delivered the first and most comprehensive speech. Mr. Wilberforce, as he then was, had been a member of the British delegation to the International Conference on Private Air Law at the Hague, in September, 1955, see ICAO Doc. 7686-LC/140, Vol. II, at 25, which adopted a Protocol signed but not ratified by the United States, amending the Warsaw Convention in important respects; he was later the chief British delegate to the Guadalajara Conference in 1961, see ICAO Doc. 8301-LC/149-1, Vol. II, at 13. Moreover, when a case concerns the interpretation of a treaty, the desirability of international uniformity suggests the wisdom of following a thoroughly considered decision of the highest court of an important signatory, particularly one which has attracted acceptance elsewhere, if the scales are fairly balanced. See Block v. Compagnie Nationale Air France, 386 F.2d 323, 336-38 (5 Cir. 1967) (Wisdom, J.), cert. denied, 392 U.S. 905, 88 S.Ct. 2053, 20 L.Ed.2d 1363 (1968); Day v. Trans World Airlines, Inc., 528 F.2d 31, 35-36 (2 Cir. 1975), cert. denied, 429 U.S. 890, 97 S.Ct. 246, 50 L.Ed.2d 172 (1976); Saks v. Air France, 724 F.2d 1383, 1385 (9 Cir. 1984); Restatement of the Foreign Relations Law of the United States (Revised) § 329(3)(b) & comment c (Tent. Draft No. 1, 1980).
. The holding on this was unanimous, although there were some differences with respect to the reasoning; Lord Fraser is recorded as having dissented with respect to reliance on the minutes of the Hague Conference — a point discussed below. All members rejected the contention that the Property Irregularity Report was sufficient notice of the loss of . the contents.
Lord Wilberforce noted, p. 298, that the problems presented on Mr. Fothergill's appeal had been disposed of for the future by the Carriage by Air and Road Act, 1979, ch. 28, § 2. This added to the Carriage by Air Act, 1961, 9 & 10 Eliz. 2, ch. 27, a new section 4A entitled "Notice of partial loss”, paragraph (1) of which provided:
In Article 26(2) the references to damage shall be construed as including loss of part of the baggage or cargo in question and the reference to the receipt of baggage or cargo shall, in relation to loss of part of it, be construed as receipt of the remainder of it.
The statute declared that it should not apply to loss which occurred before its passage. Pre
. He thought the purpose to be as follows, p. 299:
(1) to enable the airline to check the nature of the “damage”;
(2) to enable it to make enquiries how and when it occurred;
(3) to enable it to assess its possible liability, to make provision in its accounts and if necessary to claim on its insurers;
(4) to enable it to ensure that relevant documents (e.g. the baggage checks or passenger ticket, or the air waybill) are retained until the issue of liability is disposed of.
. Such references necessarily imply that, despite the failure of the United States to ratify The Hague Protocol, an American court may look to The Hague minutes as showing what representatives of the attending countries considered the Warsaw Convention to mean. A domestic analogy would be resort to Congressional debate over an unenacted bill. Our courts assign some but not very much weight to this. See, e.g., Kosak v. United States, — U.S.-, 104 S.Ct. 1519, 1524-28, 79 L.Ed.2d 860 (1984); id. at 1530 n. 5 (Stevens, J., dissenting); Reston v. FCC, 492 F.Supp. 697, 703-05 (D.D.C. 1980).
. The writer of this opinion, who attended The Hague conference as an adviser to the United States delegation but has no recollection of this particular interchange, would agree with the remarks of Lord Diplock, p. 305:
With some personal experience of international conferences of this kind, I should not attach any great significance to the fact that two delegates in withdrawing an amendment to art. 26 which would have included in the article an express reference to partial loss as well as to damage, said, without contradiction by any other delegates who happened to be present at that time, that they did so on the understanding that partial loss was included in the expression damage. Macchiavellism is not extinct at international conferences.
. Malcolm McLean, the president of an American trucking firm, McLean Trucking Co., pioneered the use of containers in the domestic ocean shipping trade during the late 1950’s through a subsidiary, Sea Land Service, Inc. In 1966 Sea Land successfully introduced containerization into the international shipping trade on the North Atlantic routes. During the 1960’s the transportation of containerized cargo grew rapidly. See Mankabady, Some Legal Aspects of the Carriage of Goods by Container, 23 Int'l & Comp. L.Q. 317, 317 n. 2 (1974); Tombari, Trends in Oceanborne Containerization and its Implications for the U.S. Liner Industry, 10 J.Mar.L. & Comm. 311, 313 (1979).
With respect to air freight, the first standard-size containers for use in jet freighters were introduced in late 1963. The Civil Aeronautics Board approved a domestic air freight container program in 1966; at about the same time the International Air Transport Association launched a program of registering containers of various sizes for common use in international air commerce. See Philion, Containerization is giving air freight a big lift, ICAO Bull. 16, 16 (Oct. 1973).
. Discussions among the delegates considering the Warsaw Convention in 1929 confirm the district court’s statement that “the Convention makes no distinction between obvious and hidden damage.” 575 F.Supp. at 1143. See Minutes, Second International Conference on Private Aeronautical Law, October 4-12, 1929, Warsaw 214-18 (R. Horner & D. Legrez trans. 1975) (Conference rejects proposed amendment which would have specified that seven day notice provision applies to cases of "non-apparent damage” on ground that "damage” obviously encompasses both apparent and non-apparent damage); id. at 106 (statement of Henri De Vos, Reporter to the Convention) ("The second paragraph [of Article 26 (Article 27 in draft form) ] covers all claims [apparent and non-apparent damage].”). See also D. Goedhuis, National Air-legislations and the Warsaw Convention 281 (1937).
. One would suppose that in such event the truckman would have been alerted by the difference in weight. The air waybill states the gross weight as 4785 kilograms; the weight of the container appears to have been approximately 326 kilograms, see Jt.App. at 939.
. We recognize this hypothetical is somewhat unlikely. Presumably when a suitcase was damaged as badly as Mr. Fothergill’s, at least a casual look at the contents would immediately be taken.
. This was recognized by the district court, 575 F.Supp. at 1141 (albeit somewhat grudgingly, “may need no written notice”). The Supreme
. This is somewhat more than the net weight in kilograms stated in the air waybill, 4458.5 kilograms.
. Plaintiff submitted affidavits of Leonard S. Leaman, Esq., one of its attorneys, and Edward Kochersberger, the Rochester Air Freight truck driver. Most of the factual allegations in Mr. Leaman’s affidavit simply parapharase Kochers-berger’s; we turn directly to the latter.
. The container was delivered to me by three employees of Seaboard World Airlines on July 18, 1980, at which time I noticed the doors were open and the seal on the doors of the container was broken — a fact which was obvious to anyone who looked at the containers.
After inspecting the contents of the container, I informed the three employees of Seaboard World Airlines who had delivered the container to me (one of whom I knew by the name of Joe Martinez, who I understood was one of Seaboard’s lead ramp men) that there were only four pieces remaining in the container, and that 36 pieces were missing. The four pieces remaining consisted of four boxes on four separate pallets; and L made a notation on the delivery receipt which states that of the shipment which had consisted of 40 pieces, only four pieces remained when I inspected the container, and I put the word four on the delivery receipt which I signed. A xerox copy of this
A United States Customs representative was also in attendance when the container was delivered to me at John F. Kennedy Airport by the three employees of Seaboard World Airlines, and he noted in preparing his form 7512 that only four pieces of cargo remained in the container upon delivery.
Thereafter, the container delivered to me by the three employees of Seaboard was unloaded by them and the four pieces of cargo which remained in the container were loaded on my trailer truck. I then drove the trailer truck so loaded to the Holiday Inn at John F. Kennedy Airport, at which time another driver who was also employed by Rochester Air Freight took the trailer truck and made the delivery of the four pieces to Eastman Kodak Company at Kodak Park, Rochester, New York on July 21, 1980.
. I should like to state the facts and circumstances under which I signed the Pick Up Order and Tally Form by which Mr. Iacovelli stated I acknowledged "receipt of the shipment in good order and condition.”
When the container was delivered to me at JFK on July 18, 1980 by the three ramp men who were employees of Seaboard and after I stated to the three ramp men employed by Seaboard that 36 of 40 pieces shipped in the container were missing, I sought out a supervisor of Seaboard (a man whose name I do not presently recall, but he was a rather short and stocky individual) who acknowledged that he was a supervisor of Seaboard and in fact gave me his name but I do not recall it. It was this man who presented me with the Pick Up Order and Tally Form for signature. I reviewed the form and he requested me to sign it but I stated to him that I wanted to have written on the form the fact that 36 pieces of cargo were missing from the container.
Although this individual who stated he was a supervisor acknowledged that the cargo was missing, he stated that he could not put the notation of missing cargo on the Pick Up Order and Tally Form, giving me the impression that it was not a proper procedure to do so. I was only recently employed as a truck driver at the time of this pick up on July 18, 1980 and did not have any reason to suspect that this supervisor was not telling me the truth that a notation of missing cargo could not be placed on the Pick Up Order and Tally Form. I, therefore, under these circumstances signed the Pick Up Order and Tally Form which was presented to me.
I would also like to state that on several occasions prior to July 18, 1980 when I was instructed to pick up the containers which Kodak Limited had consigned to Eastman Kodak, I had picked up the contents of similar size containers of Seaboard for trans-shipment. Some of these containers had been sealed and others were unsealed but in many cases both sealed and unsealed containers were opened by Seaboard prior to my putting in an appearance to pick up the contents of these containers for trans-shipment by truck.
. One of the three Seaboard employees mentioned in Kochersberger's first affidavit was later convicted as a participant in the theft of the 36 missing pieces.
. This inference derives some support from what actually happened, from the last paragraph of Kochersberger’s reply affidavit, see supra note 18, and from the absence of any response by Seaboard.
Under Article 18(1) of the Convention, Seaboard is liable for “damage sustained in the event of the destruction or loss of, or of damage to ... any goods, if the occurrence which caused the damage so sustained took place during the transportation by air." Under Article 18(2) “transportation by air ... shall comprise the period during which the ... goods are in charge of the carrier, whether in an airport or on board an aircraft." See, e.g., Manufacturers Hanover Trust Co. v. Alitalia Airlines, 429 F.Supp. 964 (S.D.N.Y.), aff’d mem., 573 F.2d 1292 (2 Cir. 1977).
. We say this despite what appears to be the holding favorable to the carrier by the Supreme Court of the Netherlands in Affretair, supra note 14. See also R. Mankiewicz, The Liability Regime of the International Air Carrier § 212.1, at 180-81 (1981) (distinguishing between "[pjartial destruction of loss, stricto sensu," i.e., where "one or several items shipped under one single air waybill have been lost or destroyed”, which requires no written complaint under Article 26, and "destruction or loss of some or all of the contents of a single package or piece of baggage [which] must be considered as damage to the cargo or baggage and thus requires the filing of a written complaint within the time limit prescribed in Article 26(2)’’). This leaves the question “What is the package?” — an issue with which we have had all too much experience with respect to containers in another branch of transportation, see, e.g., Mitsui & Co., Ltd. v. American Export Lines, Inc., 636 F.2d 807 (2 Cir. 1981).
. This is:
One who fraudulently makes a misrepresentation of fact, opinion, intention or law for the purpose of inducing another to act or to refrain from action in reliance upon it, is subject to liability to the other in deceit for pecuniary loss caused to him by his justifiable reliance upon the misrepresentation.
. This broader view is supported by a statement of the Higher Regional Court of Frankfurt am Main in a decision dated June 3, 1976 (16 U 92/75), in which the Court stated: "Fraudulent action would be present only if the air cargo carrier would have prevented the consignee in some manner from submitting the report within the prescribed term." It draws further support from the controlling French text. See R. Manic-iewicz, supra, § 215, at 185:
Article L. 321-4, paragraph 2, of the French Code of Civil Aviation gives an authentic interpretation of the word fraude, namely, an "act by which the carrier conceals or tries to conceal the damage, loss or delay, or by any other means which prevents or tries to prevent the consignee from filing a complaint within the prescribed time limits".
. Chapter II of the Convention is entitled "Transportation Documents;” it speaks only of the passenger ticket, the baggage check and the air waybill. See R. Mankiewicz, supra, § 69, at 55 (Convention "provides for three documents of carriage"). Article 6(2) requires that one part of the air waybill shall be marked “for the consignee” and shall accompany the goods. The record is silent as to what happened to this copy.
. While it could be argued against this that such a notation would not attain the objective of giving notice to the carrier’s employees who were not engaged in the shipment and delivery process, the argument is flawed. The same could be said in regard to a notation on the air waybill, which would clearly be sufficient under the Convention if properly phrased. Nothing in the Convention prescribes what officials of the carrier must be notified.
. Judge Bondy’s opinion in Delaware, L. & W.R.R. v. United States, 123 F.Supp. 579 (S.D.N.Y. 1954), contains a good review of the cases up to that date.
. In Judge Bondy’s language, 123 F.Supp. at 582, the carrier “could not have inferred that the letter [here the hypothetical notation] was written for any purpose other than to give notice that a claim would be made." See R. Mank-iewicz, supra, § 211, at 179 '(“The Convention does not prescribe a specific wording for the written complaint; it is sufficient that the complaint indicate in unequivocal terms the damage for which the carrier is held responsible____’’). Both paragraph 10(a) of the air waybill’s Conditions of Contract and Rule 23(B) of the tariff discussed below speak of a written notice, sufficiently describing the goods concerned, the approximate date of the damage and the details of the claim. Plaintiff has not argued that the notation on the Rochester Air Freight receipt was sufficient notice.
. A well-thumbed dictionary in existence at the date of the Convention gives, not very illuminatingly, as one meaning, "Declaration en forme, par laquelle on s’éléve contre une chose”. Petit Larousse Illustre (1923).
. His closest approach to this is a statement, 575 F.Supp. at 1138, "For reasons not relevant, the Seaboard Tariff has no bearing in this case.” Plaintiff's argument is based on the air waybill, not on the tariff; plaintiff would agree that the tariff has no bearing, for reasons later discussed, but Seaboard does not.
. Butler’s Shoe Corp. v. Pan American World Airways, Inc., 514 F.2d 1283, 1285 (5 Cir. 1975). See also Famolare, Inc. v. Seaboard World Airlines, 15 Av.Cas. (CCH) 17,287 (N.Y.Sup.Ct. 1978) (120 day period applies to loss of 53 out of 1696 shipped cartons); Schwimmer v. Air France, 87 Misc.2d 147, 384 N.Y.S.2d 658 (Civ.Ct.Bronx 1976) (120 day period applies to loss of seven out of 11 cases). But see R. Mankiewicz, supra, § 214, at 215 (citing contrary decisions of French, German and Belgian courts). Cf. Molitch v. Irish Int'l Airlines, 436 F.2d 42, 43-44 (2 Cir. 1970).
. Seaboard did submit a post-argument letter with attachments, from Walter A. Mott, Manager — Cargo Tariffs, of the Official Airlines Guides firm, on the subject, but this was not in the form of an affidavit as required by Fed.R.Civ.P. 56(e).
Reference
- Full Case Name
- M.E. DENBY, Individually and on behalf of certain other concerned Underwriters at Lloyds v. SEABOARD WORLD AIRLINES, INCORPORATED and Flying Tiger Line, Incorporated
- Cited By
- 17 cases
- Status
- Published