Proud to Announce We Are Mansfield Rule Certified 2023–2024 Learn More

Staying Above Water: Mitigating Liability Under the Carriage of Goods by Sea Act in New Jersey

Staying Above Water: Mitigating Liability Under the Carriage of Goods by Sea Act in New Jersey

On September 13, 2023, Grimaldi Deep Sea S.P.A filed a complaint in the Federal District Court of New Jersey seeking exoneration from or limitation of liability from civil actions and claims to be asserted against it in relation to an incident that occurred at a terminal located in Port Newark, New Jersey. A fire broke out on a vessel owned by Grimaldi, leading to the death of two Newark firefighters and substantial damage to property. [i] The estates of the two firefighters who died in the fire filed a countersuit in response to the declaratory action against Grimaldi, including claims premised in negligence, product liability and wrongful death. The countersuit also includes cross claims against other defendants, including the City of Newark.[ii]

Grimaldi cites to the Carriage of Goods by Sea Act in a bid to limit its liability after a maritime-related loss.[iii] The Act “allows a vessel owner to limit liability for damage or injury, occasioned without the owner’s privity or knowledge, to the value of the vessel or the owner’s interest in the vessel.” [iv] Grimaldi submitted an affidavit of Ad Interim Stipulation for Value in their complaint, providing a calculation for the value of the vessel involved in the loss, along with the freight estimate. For liability to exceed the value of value and/or interest in the loss vessel, the court must first determine what acts of negligence caused the accident and then determine whether the vessel’s owner had knowledge or privity of those acts of negligence.[v]

Grimaldi noted in their complaint that the fire on their vessel came from a vehicle onboard that began on the underside of the vehicle. Crossclaim co-defendant American Marine Services, Inc. was the contracted stevedore loading vehicle cargo onto Grimaldi’s ship. American Marine Servies was using the vehicle that caught fire to push non-running vehicle cargo on to Grimaldi’s ship. Grimaldi did not have privity or knowledge of the fire before it occurred. Grimaldi noted in their complaint that American Marine Services had maintenance and repair responsibilities for the vehicle.

 

Takeaway

The declaratory action in this matter by Grimaldi is an attempt to control the number of lawsuits that will be filed against it in relationship to the incident. Grimaldi’s use of a federal act is an attempt to shift the burden of their potential liability as the owners of the involved vessel to another entity that may have had or should have had knowledge of negligence that led to the incident. Grimaldi’s action is an example of an early defense strategy lawyers may use to attempt to resolve a case pre-trial and avoid costly, timely litigation that could potentially stem from this ship fire incident.

 

 

 

Keep Reading

Sources


[i] Grimaldi Deep Sea SPA, Complaint, No. 2:23-CV-203040, U.S. District Court of New Jersey, filed Sept. 13, 2024.

[ii] Grimaldi Deep Sea SPA, Answer, No. 2:23-CV-203040, U.S. District Court or New Jersey, filed [filing date here]

[iii] 46 USC Ch.305 Exoneration and Limitation of Liability

[iv] Lewis v. Lewis & Clark Marine, Inc., 531 U.S. 438, 446, 121 S. Ct. 993, 1000

[v] See Farrell Lines, Inc. v. Jones, 530 F.2d 7 (5th Cir.1976)