# Amicus Curiae Brief — Norfolk Southern R. Co. v. James N. Kirby, Pty Ltd.

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## Record

- **Collection:** Supreme Court brief
- **Document type:** Amicus Curiae Brief
- **Published:** January 1, 2004
- **Citation:** 543 U.S. 14

## Text

MAR 2.4 2004
/¥ OFFICE OF THE CLERK

No. 02-1028

IN THE

Supreme Court of the United States

NORFOLK SOUTHERN RAILWAY COMPANY,
Petitioner,
Vv.

JAMES N. KIRBY, PTy LTD., DBA KIRBY ENGINEERING,
AND ALLIANZ AUSTRALIA, LIMITED
Respondents.

On Writ of Certiorari to the
United States Court of Appeals
for the Eleventh Circuit

BRIEF AMICUS CURIAE OF THE NATIONAL
ASSOCIATION OF WATERFRONT EMPLOYERS
IN SUPPORT OF PETITIONER

THOMAS D. WILCOX *
CARROLL & FROELICH, PLLC
2011 Pennsylvania Avenue, NW
Suite 301

Washington, DC 20006-1895
(202) 296-3005

* Counsel of Record Attorneys for Amicus Curiae
March 24, 2004

ST
WILSON-EPES PRINTING CO., INC. — (202) 789-0096 — WASHINGTON, D. C. 20001

QUESTION PRESENTED

gn cargo owner who shipped goods to an

Whether a fi

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tations (the —

Himalaya Clause) in the intermediary’s bill of lading, or those

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issued to the

carrier

intermediary, when suing a railroad that subcontracted wi
the goods to their destination.

iver

ll of lading that an ocean
to del

in the bi
carrier

shipping intermediary is bound by the li
the ocean

(i)

TABLE OF CONTENTS

Page
| GU THIEN PURSES BD a ccccccsccccsscccsccsccscccsccsccssccscesoes i
TARE Ge AU TIRE Bie cccecccccccsccccccccscccscsseccccsseseees iv
INTEREST OF AMICUS CURIAE ........0cccccssseeeseeeeeees l
SUMMARY OF ARGUMENT.............ccccccsessseeeeeeeeneees 3
SRT cxictrtitonstncientenesiccconensenenssrenscenccssnscecssveseensccees 4
I. DUELING BILLS OF LADING....................... 4
Il. WHICH HIMALAYA CLAUSE APPLIES’... 5
Il. WHO OR WHAT IS ICC? 000.0... ccccccccceeeseeeseees 6
IV. WITH RESPECT TO THE ACTUAL
CARRIERS, ICC ACTED AS AN AGENT
aT ll ecntcncsensinccecqeeqsccscccsenccocecenee 8
V. THE ACTUAL CARRIER’S BILL OF
LADING BINDS ALL PARTIES...................... 11
eae ee 12

(iii)

iv
TABLE OF AUTHORITIES
CASES Page
Aquascutum of London, Inc. v. S.S. American
Champion, 426 F.2d 205 (2nd Cir. 1970).......... 8
Chicago, St. Paul & Pacific R.R. Co. v. Acme
Fast Freight, 336 U.S. 468 ..........:cccccccccceeseeeeeeee 8
Great Northern Railway Co. v. O'Connor, 232
CAS, SE GRO caneesensmsveneemensntinsinmaniien 11
Robert C. Herd & Co., Inc. v. Krawill Machine.
Cam, S50 Ge Gt cemmmnnnnnnininmnne 5
Hofjman-LaRoche v. M/V TFL Jefferson et al.,
731 F.Supp. 109, (S.D.N.Y. 1990)... cece 8
Ins. Co. of North America v. S.S. American
Argosy, 732 F.2d 299 (2nd Cir. 1984)............... )

James N. Kirby, Pty Lid. D/B/A Kirby Engi-
neering, and Mmi General Insurance Limited
v. Norfolk Southern Railway Company, 300
PE: Ti le 2) |. passim
Mickinberg v. Baltic Steamship Co., Rice Unruh,
Reynolds Company, and Uts, A Division of
Universal Maritime Services, 988 F.2d 327

CG, FE ecticenisticemmnntnnminieiaaien 10
Modern Office System, Inc. v. Aim Caribbean
Express, Inc., 802 F.2d 617 (DC PR 1992)....... )

Nippon Fire & Marine Insurance Co., Lid v.
Skyway Freight Systems, Inc., 235 F.3d 53

8 12
M. Prusman Ltd. v. M/V Nathanel, 670 F.Supp.
ao FO A, en )
STATUTES

Carriage of Goods by Sea Act (COGSA), 46
ST passim

\
TABLE OF AUTHORITIES—Continued

Shipping Act of 1984, 46 U.S.C. app. 1701
et seq.

So , ;:,
es GE Flee ccrccesnessenssnensemmenesinnes
ET ee
GB UI. GR Re crencenmmeens
ST eee

LEGISLATIVE

Senate Report No. 98-3, (98th Congress, Ist
I ennsssnscsesssssscsensensesmetepeneneetinnsinnnsiantots

Page

wewn An DW

IN THE

Supreme Court of the United States

No. 02-1028

NORFOLK SOUTHERN RAILWAY COMPANY,
Petitioner,

Vv.
JAMES N. KirBy, Pty Ltp., DBA KirByY ENGINEERING,

AND ALLIANZ AUSTRALIA, LIMITED
Respondents.

On Writ of Certiorari to the
United States Court of Appeals
for the Eleventh Circuit

BRIEF AMICUS CURIAE OF THE NATIONAL
ASSOCIATION OF WATERFRONT EMPLOYERS
IN SUPPORT OF PETITIONER

INTEREST OF AMICUS CURIAE |

National Association of Waterfront Employers (NAWE)
member companies perform stevedoring and/or marine
terminal services at most ports in the United States and in
some ports in foreign countries. One NAWE member,

' In accordance with this Court’s Rule 37.6, counsel of record states
that he is the sole author of this brief, that no entity other than the named
amicus party has made a monetary contribution to the preparation of this
brief, and that NAWE member, Lambert's Point Docks, has made no
contribution other than its annual dues assessment to amicus. Pursuant to
Rule 37.2(a) blanket letters of consent have been filed with the Clerk.

2

Lambert's Point Docks in Hampton Roads, Virginia is owned
by Petitioner. {t and other NAWE member companies are
those companies which load and unload cargo on and off
vessels calling at ports in the United States, including Puerto
Rico, and some foreign countries, and as such have a very
real interest in ocean carrier bills of lading pursuant to the

___Carriage of Goods by Sea Act (“COGSA”) and the precise

language of the Himalaya Clause in those bills. NAWE
members are quite concerned about whether their respon-
sibilities and liabilities are to be governed by a bill of lading
issued by their customer ocean carrier, or by a ‘bill of lading’
issued by a stranger transportation intermediary of whom they
have no knowledge. The answer to that question will dictate
‘what NAWE members must do in the future to understand
their rights and sponsibilities with respect to cargo they
handle as well as what others, such as Petitioner, must do.

This case involves the shipment of ten containers of
machinery from a point in Australia destined for Huntsville,
Alabama via the ports of Sydney, Australia and Savannah,
Georgia. It is common knowledge that such a shipment
required the services of (1) a transport entity in Australia to
deliver the containers to (2) a marine terminal in Sydney,
Australia where the containers were loaded by (3) a stevedore
entity onto a (4) vessel, here operated by Hamburg Sud
(Columbus Line), an (5) American stevedore to unload the
containers when the vessel arrived at the (6) marine terminal
in Savannah under instructions of Hamburg Sud (Columbus
Line) delivered by the terminal operator to (7) Petitioner,
Norfolk Southern Railway Company for transportation to
Huntsville, Alabama. Unfortunately, the train was derailed en
route to Huntsville and the machinery damaged. The shipper
was paid by its insurer for the loss and an action was brought
to recover from Norfolk Southern the ameunt paid by the
insurer to the shipper.

3

Although the present action is between a shipper and its
insurer and the actual ocean carrier’s designated inland
carrier, this Court’s decision could affect all parties providing
actual transportation services pursuant to the ocean carrier's
bill of lading, including the stevedore and marine terminal
operator members of NAWE, who perform the stevedoring
and marine terminal services enumerated as (5) and (6) above
in the case of imported goods and (2) and (3) in the case of
exports. This Court’s decision as to which bill of lading
governs, that of the carrier which actually performs the
transportation or that of a transportation intermediary which
performs no actual transportation, will dictate what NAWE
members and others in the actual transportation chain must
do in the future to understand and protect their rights and
responsibilities with respect to the cargo they handle.

SUMMARY OF ARGUMENT

The decision of the court below, James N. Kirby, Pty Ltd.,
d/b/a Kirby Engineering and Mmi General Insurance Limited
v. Norfolk Southern Railway Company, 300 F.3d 1300 (11th
Cir. 2002) holding that the shipping intermediary's bill of
lading controlled the liability of the ocean carrier because
there was no “privity” between the ocean carrier and the
shipper, and therefore the U.S. inland carrier, with the owner
of the goods shipped (Kirby at 1305, 1307 and 1309) is
wrong.

There was the necessary “privity” between Kirby, the
shipper, and the ocean carrier because, at all times, with
respect to the actual ocean carrier, the intermediary, whatever
denominated, be it broker, forwarder, or non-vessel oper-
ating-common carrier (NVOCC), was the agent of the shipper
with respect to the actual carrier, and the ocean carrier’s
bill of lading issued to the agent was binding on its principal,
the shipper.

4

ARGUMENT
I. DUELING BILLS OF LADING

There were two bills of lading issued. The first was issued
by International Cargo Control Pty Ltd. (ICC) to the shipper
of the machinery, James N. Kirby, Pty Ltd., d/b/a Kirby
Engineering (Kirby) who had sold the machinery to General
Motors for delivery at Huntsville, Alabama. That bill of
lading was issued ‘to formalize the contract of carriage’
entered into by Kirby with ICC to fulfill Kirby’s ‘obligation
to deliver the machinery to Huntsville.’ (Kirby at 1302). The
second bill of lading was issued by Hamburg Sud to ICC for
the actual movement of the machinery from Sydney to
Huntsville via the port of Savannah and named ICC as
shipper. The Hamburg Sud bill contained its own Clause
Paramount, and its own Himalaya Clause that extended the
bill’s limitations on Hamburg Sud’s liability to ‘all agents,
servants, employees, representatives, all participating (inclu-
ding inland) carriers and all stevedores, terminal operators,
warehousemen, crane operators, watchmen, carpenters, ship
cleaners, surveyors and independent contractors whatsoever.’
(Kirby at 1303).

In essence, the Hamburg Sud bill of lading extended
Hamburg Sud’s Carriage of Goods by Sea Act (COGSA), 46
U.S.C. §§ 1300-1315, limitation of liability to each and
everyone, the actual participants in the transport of Kirby’s
containers. However, the court below held that because there
was no “privity” between Hamburg Sud and Kirby, the
Hamburg Sud bill of lading did not protect Norfolk Southern.
In effect, by the court’s reasoning, none of Hamburg Sud’s
contractors would have been protected. However, the court
also stated had there had been the necessary “privity,” then
the clearly stated Hamburg Sud bill of lading would include
Norfolk Southern.

“This is not to say that a Himalaya Clause can never
readily identify a well-defined class of persons that in-

—ee - -

5

cludes inland carriers like Norfolk Southern. However, if
the Himalaya clause is to extend inland, it must say so
with specificity, as, for example did the Himalaya clause
in the Hamburg Sud bill when it clearly identified as
among its beneficiaries “all participating carriers
(including inland) carriers. (emphasis added)” (Kirby
at 1311).

However, since the court found there to be no “privity”
between the shipper and the actual [ocean] carrier, it
determined that the actual carrier’s bill of lading did not
apply. Thus, it found that intermediary’s bill of lading was
controlling and that its limitation of liability provision was
too indefinite and broad to include Norfolk Southern.

Il. WHICH HIMALAYA CLAUSE APPLIES

The legality of the Himalaya Clause is not an issue in this
case, Robert C. Herd & Co. Inc. v. Krawill Mach. Corp., 359
U.S. 297, 79 S.Ct. 766, 3 L.Ed. 2d 820 (1958). Neither is this
Court’s requirement that contracts purporting to grant
limitation of liability must be strictly construed and limited to
their intended beneficiaries. The issue here is which bill of
lading applies: that of a transportation intermediary or that of
the ocean carrier actually providing the transportation.
Amicus submits that it must be the latter. If not, then any
shipper in combination with a transportation intermediary
holding itself out as a carrier could—by a defective bill of
lading—knowingly or unknowingly defeat the entire inter-
national shipping regime’s liability provisions as set forth in
COGSA. It simply makes no sense to hold that a shipping
document issued by a non-vessel operating transportation
intermediary takes legal precedence over an ocean bill of
lading issued by an ocean common carrier which actually
performs the contracted transportation. The fact that the inter-
mediary appears as the “shipper” on the actual carrier’s bill of

6

lading does not mean that the true owner of the goods shipped
on whose behalf the intermediary was acting is not bound by
the actual carrier’s bill of lading.

Ill. WHO OR WHAT IS ICC?

A key issue in this case is who, or what, was ICC, iden-
tified by the court below as “an Australian freight forwarder.”
(Kirby at 1302). However, the trial judge described ICC as
“an Australian cargo broker. ICC does not transport cargo,
but rather arranges for cargo transportation by carriers.”
(Petitioner’s Appendix C at 28a.). Unfortunately, the record
below is silent as to what an Australian freight forwarder or
cargo broker is, or can do, under Australian law. ICC’s legal
identity is important, because the court below indicates that
the outcome of this case depends upon the relationship
between ICC and the actual owner of the cargo shipped,
Kirby (Kirby at 1305), and that if ICC was acting as an
agent for Kirby when the shipping contract with the actual
ocean carrier, Hamburg Sud, was made, its decision would
have been in favor of Petitioner, Norfolk Southern. (Kirby
at 1311).

Under applicable U.S. law in effect in 1997, namely the
Shipping Act of 1984, 46 U.S.C. § 1701 et seg., ICC was not
an “ocean freight forwarder” as defined in § 3(19) of the
Shipping Act (46 U.S.C. app. 1703(19)). That section
requires that the shipments dispatched by the ocean freight
forwarder be “from the United States.” An ocean freight
forwarder dispatches shipments via common carriers or other-
wise arranges space for those shipments “on behalf of
shippers.” As the court below pointed out at page 1307, ICC
clearly did not meet that requirement. COGSA has no
definition of freight forwarder. While ICC did not actually
transport the cargo, it nevertheless

issued to Kirby a bill of lading and assumed responsibility
for the shipment to Huntsville. (Kirby at 1302). Under

5

applicable. U.S. law, the Shipping Act of 1984, that would
make ICC a “non-vessel-owning-common carrier,” (or an
“NVOCC’”), which is defined as “a common carrier that does
not operate vessels by which the ocean transportation is
provided, and is a shipper in its relationship with a common
carrier.” (46 U.S.C. app. 1703(17)). (emphasis supplied)?

As ‘a “common carrier,” in order to function lawfully in the
trade from Australia to the United States ICC would have had
to file a complete “tariff’ with the Federal Maritime
Commission showing “all its rates, charges, classifications,
rules and practices between all points or ports on its own
route and on any through transportation route that has been
established” and include sample copy of “any bill of lading,
contract of affreightment, or other document evidencing the
transportation agreement.” (46 U.S.C. 1707(a)).

The record is silent as to ICC meeting its tariff filing
obligations as an NVOCC under the Shipping Act. What is
clear is that however described, ICC did not undertake to
actually provide any of the ocean transportation it contracted

‘for with Kirby and that Kirby knew it. As the dissenting judge

below succinctly stated at Kirby page 1312:

“There is nothing in the record which indicated that
Kirby expected ICC to ship the goods other than by
contracting it with another carrier. . . . When the bill of

> Comments of the Senate Committee on Commerce, Science and
Transportation on Senate bill, S. 504, a predecessor to Senate bill, S. 47
which became Pub. L. 98-237, the Shipping Act of 1984, about “non-
vessel-operating common carrier” should be noted. The Committee report
states at page 20; “(17) ‘Non-vessel-operating common carrier’ gives
statutory recognition to this marine operator who acts as a consolidator

~ and intermediary between vessel operators and shippers of less-than—

container loads. The shipper status of an NVO, in its relationship with the
vessel operator, is intended to afford the NVOs the same protection
against unjust discrimination.” Senate Report No. 98-3, 98th Congress,
Ist Session.

8

lading between Kirby and ICC was issued, Kirby knew
that an inland carrier would have to be used, because of
the destination being Huntsville, Alabama.”

The dissent concludes that “Kirby knew from the start that the
ultimate destination would have to be through an inland
carrier, so it should not be able to prevail on the technicality
of its lack of “privity” of contract.” The plain fact is that ICC
was acting as Kirby’s agent and that Kirby (and its insurer)
were bound by contracts entered into by ICC on Kirby’s
behalf.

IV. WITH RESPECT TO THE ACTUAL CAR-
RIERS, ICC ACTED AS AN AGENT FOR
THE SHIPPER

Who or what was, or is ICC, and what effect did its alleged
bill of lading have on the actual participants in the through
movement of goods in international waterborne commerce?
Was the bill of lading it issued to Kirby any more than a
contract between the shipper/owner of the goods and a
transportation intermediary under which the latter undertakes
to perform certain services on behalf of the shipper/owner,
and thus is binding only those two parties? Obviously, ICC
did not undertake to actually transport any machinery to
Huntsville. It only agreed to make the necessary arrange-
ments. Thus, ICC, with respect to Hamburg Sud and its
subcontractors, was not acting as a common carrier, and the
fact that it issued a document entitled “bill of lading” is in
itself not determinative. Chicago, Milwaukee, St. Paul &
Pacific R.R. Co. v. Acme Fast Freight, 336 U.S. 465, 484, 93
L.Ed. 817, 69 S.Ct. 692 (1949). Simply arranging for
transportation and not actually effecting it does not make a
carrier. Aquascutum of London, Inc. v. S.S. American
Champion, 426 F.2d 205, 210 (2nd Cir. 1970) and Hoffman-
Laroche v. M/V TFL Jefferson et al., 731 F.Supp 109, 111
(S.D.N.Y. 1990).

9

Amicus submits that a bill of lading issued by a trans-
portation intermediary, such as an “Australian freight
forwarder” or “cargo broker,” or even an NVOCC, to its ship-
per principal (disclosed or not) can not trump the contractual
relationship between the actual common carrier and the
parties enumerated in that carrier’s bill of lading for the
transportation actually performed thereunder.

As one court has stated,

“Thus -for the purposes of the Shipping Act . . . the
NVOCC is a hybrid; it is a common carrier with respect
to the shippers who use its services: as such it files a rate
tariff with the Federal Maritime Commission and is
subject to all laws governing common carriers. With
respect to the vessel and her owner, NVOCC is an
agent of the shipper, and thus merely a customer.
. . . indeed, only one customer among hundreds on any
given voyage. ”

“While the NVOCC is considered an agent of its shipper
in relation to the vessel and her owner, the nature and
scope of said agency is limited to the transportation
services contract by the NVOCC on the shipper’s behalf.
The NVOCC is itself liable to the shipper by virtue of its
own bill of lading, the tariff and the law applicable to the
particular trade in which the NVOCC is involved.”
Modern Office System, Inc. v. Aim Caribbean Express,
Inc. (DC, PR 1992), 802 F. Supp. 617, 622), citing Ins.
Co. of North America v. S.S. American Argosy, 732 F.2d
299, 301 (2nd Cir. 1984), and M. Prusman Ltd. v. M/V
Nathanel, 670 F.Supp.1141 (S.D.N.Y. 1987).

The court below at Kirby pages1304-5 found that the ocean
carrier’s (Hamburg Sud) bill of lading and Himalaya Clause-
could limit Norfolk Southern’s liability to Kirby, (the cargo
owner ) if Kirby is bound by the terms of that bill. If ICC had
been acting as Kirby’s agent when it entered into the shipping
contract with Hamburg Sud, then ICC had authority to—and
did—bind Kirby to the terms of the Hamburg Sud bill,

10

including its package limitation and Himalaya Clause. Thus
the required “privity” between the shipper, Kirby, and the
inland carrier, Norfolk Southern, would be satisfied.

Actually, the required “privity” is only some contractual
relationship between a party claiming protection of a
Himalaya Clause on the one who issued the clause. Thus, in
Mikinberg v. Baltic Steamship Co., Rice Unruh, Reynolds
Company, and UTS, a_ Division of Universal Maritime
Services, 988 F.2d 327 (2nd Cir. 1993) the Second Circuit
denied Himalaya Clause protection (limitations of liability)
to Universal because Universal showed no “contractual
relationship” with the ocean carrier, Baltic. The court said
at 332:

“There must be a contractual relationship between
Universal and Baltic in order for the provisions of the
‘Himalaya Clause to apply. Otherwise, any transporter in
the flow of commerce would be automatically protected
by a single bill of lading regardless of its privity of
contract with the shipper or carrier. We decline to extend
COGSA protections through the ‘Himalaya clause to
indefinite and unforeseeable defendants who have
only an attenuated connection to the ‘carriage of goods
by sea.”

The case was then remanded to the district court to allow
Universal to establish what its relationship to Baltic was.
However, in the case at bar, Norfolk Southern was not an
unforeseeable defendant under either of the bills of lading.
Both the ICC bill of lading and Hamburg Sud bill called for
inland transportation in the United States, and all parties
knew that such transportation was significantly more than an
“attenuated connection.” Neither contract could have been
fulfilled without inland rail service.

ee OR gee 6 aS -

Vv. THE ACTUAL CARRIER’S BILL OF LADING
BINDS ALL PARTIES

Both the district court and the dissenting judge below,
Kirby at 1312, determined that ICC was acting as Kirby's
agent and that ICC was not going to ship the goods other than
by contracting it with another carrier. Kirby accepted a
limitation of liability and Himalaya Clause in the written
contract with ICC. As the dissent below points out at page
1312“. . . that would include a limitation for Hamburg Sud.”
The dissent also states that it should also include the Norfolk
Southern. More importantly, the dissent below agrees with
amicus that “. . . . Kirby was bound by the Hamburg-Sud bill
of lading .. .”.

Amicus submits that the rule in cases such as this should be
that which the United States, as amicus curiae, discusses at
page 18 of its brief filed in this proceeding:

“This Court’s decision in Great Northern Railway, Co.
v. O'Connor, 232 U.S. 508 (1914) suggests, that when a
carrier accepts goods for transport from an intermediary,
the liability limitations in the carrier’s terms of carriage
are enforceable against the cargo owner regardless of
whether the intermediary contracted with the carrier “as
agent [of the cargo owner] or Forwarder.’ /d. at 514.”

In that case this Court stated at 515 that, “if the Forwarder
was shipper for the purpose of securing carload rates, it was
also shipper jor the purpose of classifying and valuing, in
order to determine which tariff was applicable. . . . “the
carrier has the right to assume that the [Forwarder] could
agree upon the terms of the shipment, some of which were
embodied in the tariff. The carrier is not bound by [the
shipper]’s private instructions or limitation on the authority of
the [Forwarder], whether it be treated as agent or Forwarder.”
And at 516 the Court concluded that:

“. . . The carrier, in the absence of something showing
rebating, or false billing, is entitled to collect the rate

12

which applies to goods of that class, and if sued for their
loss & liable only for the loss of what the shipper had
declared them to be in class and value.”

The net result is that the shipper is bound by the terms of
the contract (bill of lading) entered into for the shipment of its
goods between an actual carrier and transportation
intermediary engaged by the *ipper including the lower
ocean freight rate and the limitation of liability provisions in
the ocean carrier’s bill of lading.

Finally, in Nippon Fire & Marine Insurance Co, Lid., v.
Skyway Freight Systems, Inc., American International Air-
wavs, Inc. and United Airlines, Inc., 235 F.3d 53 (2nd Cir.
2000), the Second Circuit held at page 61 that as between an
intermediary's bill of lading and the actual (secondary)
carrier's bill of lading, the latter governs the rights of the
shipper and the actual carrier. In that case the secondary
carrier’s bills of lading restricted the nature of a claim the
shipper and its intermediary could bring against them for loss
or damage—breach of contract, and not tort or bailment. The
court found that limitation of liability binding on the shipper
and its insurer. Since the shipper/insurer did not state a claim
for breach of contract, the claim against the actual
(secondary) carriers was dismissed.

ee Lee

CONCLUSION

The court below applied the wrong bill of lading and its
limitation of liability provisions. It should have applied the
bill of lading issued by Hamburg Sud, not that issued by ICC,
and by the court’s own reasoning the decision of the district
court should have been affirmed. This Court can and should
put the issue to rest and avoid future litigation concerning
who is what, and what rights does it have in intermodal
international transportation. It can do so by finding a trans-
portation intermediary's contract or bill of lading with its
shipper client is not binding on the carrier actually per-

13

forming the transportation. The governing contract or bill of
lading setting forth the rights of the shipper vis-d-vis those
who actually perform the transportation functions is the one
issued by the actual carrier to the transportation intermediary.

If the decision below is left to stand, ocean carriers
involved in through intermodal transportation such as that in
the instant case will have to take steps to protect themselves
and their subcontractors from the effect of deficient inter-
mediary bills of lading. One such step could be to require all
intermediaries to name themselves and their principal as
shippers on the ocean carrier’s bill of lading. Another poss-
ibility could be to require all intermediaries to state in the bill
of lading they issue to the shipper that the terms of the actual
carrier's bill of lading are included by reference in the
intermediary’s bill of lading. Another possibility could be for
an ocean carrier to publish in the tariff it is required by § 8 of
the Shipping Act, 46 U.S.C. app. § 1707 (2002) to “keep open
to public inspection in an automated tariff system” its rates,
rules, bills of lading, etc., a rule providing that its bill of

lading takes precedence over any intermediary’s bill of lading
for goods carried by the ocean carrier.

All of those possible actions and others not prohibited by
§ 10 of the Shipping Act 46 U.S.C. app. § 1709 (2002),
complicated cross indemnification agreements and other legal
devices would be unnecessary if the decision below is
reversed and a determination that the bill of lading issued by
the actual carrier to a transportation intermediary holding
itself out as a carrier—by whatever name—determines the
rights and liabilities of the shipper.

Therefore, the decision below should be reversed by this

Court.

* Counsel of Record
March 24, 2004

14

Respectfully submitted,

THOMAS D. WILCOX *
CARROLL & FROELICH, PLLC
20! 1 Pennsylvania Avenue, NW
Suite 301

Washington, DC 20006-1895
(202) 296-3005

Attorneys for Amicus Curiae

---

Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385014_0631%3A25. Public record. Not legal advice.
