U.S. Supreme Court upholds Himalaya Clause

Wednesday, November 10, 2004
In a unanimous decision, the U.S. Supreme Court upheld the validity of the Himalaya Clause for in inland carrier.

In the instant case, an Australian manufacturer shipped cargo from Australia to Huntsville, Alabama, via Savannah, Georgia. The shipper contracted with a freight forwarder for the shipment and the bill of lading issued by the NVOCC included a Himalaya Clause extending the COGSA liability limitations to downstream parties. The freight forwarder contracted with a vessel operator for actual carriage of the cargo. The bill of lading issued by the vessel operator likewise included a Himalaya Clause. The vessel operator contracted with a railroad company for carriage of the cargo from Savannah to Huntsville. En route, the train derailed and the cargo was damaged. The shipper brought suit against the railroad, among others. The railroad contended that its liability was limited under COGSA by means of the Himalaya Clauses. The trial court agreed with the railroad, but this was overturned by the appellate court, which held that there was no privity of contract between the shipper and the railroad as required by state law. On review, the U.S. Supreme Court ruled that the contract was maritime in nature and the need for a uniform maritime approach is not affected by the fact that this damage was incurred during the inland portion of the transit. State interests in this matter cannot be accommodated without defeating the more important federal interest in efficient maritime commerce. The court held that the railroad was entitled to avail itself of the COGSA limits of liability by means of the two Himalaya Clauses. Norfolk Southern Railway Co. v. James N. Kirby, Pty Ltd., No. 02-1028.

Maritime Reporter April 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Legal

Steelhead Introduces a New Yacht Crane

Steelhead Marine, a North American crane manufacturer, has expanded its product offering with the launch of the new E Series 1000 crane. Suited for commercial and recreational vessels,

SEACOR Marine Sweeps NOIA SIS Awards

The National Ocean Industries Association (NOIA) today presented SEACOR Marine with the 2015 NOIA Safety in Seas (SIS) Culture of Safety Award and Safety Practice Award.

Variable Bore Rams is 35

Variable Bore Rams, Inc. (VBR), one of the largest original equipment manufacturer (OEM) ram and BOP component providers in the world, is celebrating its 35th

LNG

Solving the LNG Propulsion Puzzle

The last piece of the LNG infrastructure puzzle, in the form of North America’s first LNG bunker barge, falls into place at Conrad’s Orange, Texas Shipyard. With

LNG Emergency, Incident Response Study

Safety around Liquefied Natural Gas (LNG) is a hot topic, now that LNG is more and more becoming the fuel of the future. The results of a recent LNG emergency

Sea Star Line, ACT Sign LNG Bunkering System Agreement

System will be the first of its kind in the US for maritime industry   Sea Star Line, LLC and Applied Cryo Technologies (ACT), in cooperation with Dragon Products,

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Standards Navigation Pod Propulsion Port Authority Salvage Ship Electronics Ship Simulators Sonar
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2695 sec (4 req/sec)