Note by Brien D. Ward
The M/V Aragua, bound for La Guaira, Venezuela, was loaded with six cases of tire parts and issued an ‘on board’ bill of lading in New Orleans. The owner of the cargo, C.A. Articulos Nationales de Goma Gomaven (Gomaven), did not declare the value of the cases at the time the bill of lading was issued. Prior to, or during, discharge of the cargo at La Guaira, one of the cases disappeared. The carrier, Compania Anonima Venezolana de Navegacion (CAVN), had no explanation for the loss. Relying on section 1304(5) of the Carriage of Goods by Sea Act (COGSA), CAVN claimed its liability was limited to five hundred dollars. Gomaven brought suit in rem against the Aragua and in personam against CAVN, her owner, to recover the full value of the lost case. Gomaven contended that because the case was loaded aboard the vessel but not delivered, and because CAVN came forward with no explanation, the court should presume that the carrier either converted the case or discharged it at the wrong port. By force of the presumption, Gomaven argued that such misconduct would constitute an unreasonable deviation and deprive the carrier of the five hundred dollars per package limitation of liability provided by section 1304(5). The district court refused to apply the presumption and held that the carrier was entitled to the COGSA limitation. The court of appeals affirmed the judgment and held that simple nondelivery of the cargo does not constitute an unreasonable deviation and, furthermore, that the carrier's failure to explain the loss would not result in a presumption of an unreasonable deviation. C. A. Articulos Nacionales de Goma Gomaven v. M/V Aragua, 756 F.2d 1156 (5th Cir. 1985).
About the Author
Brien D. Ward.
Citation
60 Tul. L. Rev. 849 (1986)