Note by George Denegre, Jr.
Imparca Lines contracted with Delta Overseas, Inc., to transport electric goods by sea to Venezuela. Delta packed the goods into 341 individual cartons and placed them into a large shipping container belonging to Imparca for the voyage. The cargo was described in Imparca's bill of lading as "One 20' Ft. Container With 341 Cartons." Upon arrival in Venezuela, 202 of the cartons were discovered missing. Appellant, Allstate Insurance Company, as Delta's assignee, filed suit in admiralty against Imparca to recover the value of the missing goods. The United States District Court for the Southern District of Florida, construing section 4(5) of the Carriage of Goods by Sea Act (COGSA), determined that the container involved in the dispute qualified as a "package" under that act, and, as a result, Imparca's entire liability was limited to $ 500. The United States Court of Appeals for the Fifth Circuit reversed and held that the cartons inside the container, rather than the container itself, were "packages" under section 4(5) of COGSA. Consequently, the appellant was awarded the full value of the missing goods. Allstate Insurance Co. v. Inversiones Navieras Imparca, 646 F.2d 169 (5th Cir. 1981).
About the Author
George Denegre, Jr.
Citation
56 Tul. L. Rev. 1409 (1982)