Hyundai Liberty News

The U.S. the carrier to the NVOCC and that the NVOCC may take advantage of the statutory limit of liability referred to in its bill of lading. transported from Korea to Los Angeles. The NVOCC's bill of lading provided that disputes ere to resolved in U.S court. The carrier issued its own bill of lading to the NVOCC. The cargo was damaged en route. Plaintiff cargo insurer brought suit in Los Angeles against the vessel and the NVOCC for full damages. in Korea. declare a higher value that the statutory limit. Since the shipper did not declare a higher value on the bill of lading, it was bound by the statutory limit. Kukje Hwajae Insurance v. M/V Hyundai Liberty.

In a rehearing, the U.S. Court of Appeals for the Ninth Circuit ruled that the forum selection clause in a carrier’s bill of lading is accepted by the non-signing cargo owner when the owner brings suit against the carrier for breach of the bill of lading. In the instant case, plaintiff cargo owner contracted with a NVOCC to have its cargo shipped from Korea to Los Angeles. The NVOCC’s bill of lading included a forum selection clause providing for suit in the United States. The NVOCC then contracted with the carrier to actually perform the carriage. The carrier issued a bill of lading that included a forum selection clause providing for suit to be brought in Korea. Needless to say, the cargo was damaged en route and the cargo owner brought suit in the United States.

The U.S. Supreme Court has invited the Solicitor General to file a brief expressing the views of the United States in the case of Green Fire Insurance Company v. M/V Hyundai Liberty. In this case (decided in 2002 by the Ninth Circuit under the name of Kukje Hwajae Insurance v. M/V Hyundai Liberty), the appellate court held, among other things, that the forum selection clause in the ship owner's bill of lading was controlling as regards an action brought against the ship for damage to cargo carried on board.