In a case involving the applicability of the Carmack Amendment, Royal & Sun Alliance Insurance, PLC appeals the judgment entered by the United States District Court for the Southern District of New York (Hellerstein, J.). Consistent with the Supreme Court's recent holding in Kawasaki Kisen Kaisha Ltd. v. Regal-Beloit Corp., --- S.Ct. ---, 2010 WL 2471056 (June 21, 2010), the judgment of the District Court is AFFIRMED.
The opinion of the court was delivered by: Calabresi, Circuit Judge
Before: CALABRESI, B.D. PARKER, and RAGGI, Circuit Judges.
The Supreme Court has recently held that the Carmack Amendment "does not apply to a shipment originating overseas under a single through bill of lading." Kawasaki Kisen Kaisha Ltd. v. Regal-Beloit Corp., --- S.Ct. ---, 2010 WL 2471056, at *8 (June 21, 2010). This Court had previously held otherwise. See Sompo Japan Ins. Co. of Am. v. Union Pac. R.R. Co., 456 F.3d 54, 60-69 (2d Cir. 2006); see also Rexroth Hydraudyne B.V. v. Ocean World Lines, Inc., 547 F.3d 351, 355 (2d Cir. 2008). Although Sompo was the law of this Circuit at the time of the district court's decision, we now, of course, follow the holding of Regal-Beloit and therefore AFFIRM the judgment of the United States District Court for the Southern District of New York (Hellerstein, J.).
I. The Journey of the Printing Press
In this case, a printing press was shipped on a three-leg journey from Germany to Indiana, and was damaged during the last leg of the journey when the truck carrying the press crashed into an overpass. The five most important entities in this story are:
1. White Horse Machinery Ltd. ("White Horse"), who is not a party to this case. White Horse was the exporter and shipper of the printing press.
Royal & Sun Alliance Insurance, PLC ("Royal & Sun"), who is the Plaintiff- Appellant. Royal & Sun insured White Horse's shipment and became subrogated to its rights.
Ocean World Lines, Inc. ("OWL"), who is the Defendant-Third-Party-Plaintiff- Appellee. OWL is the non-vessel-operating common carrier ("NVOCC")*fn2 that issued a bill of lading to White Horse, promising delivery to the consignee via shipping and carriage that OWL would arrange.
Yang Ming Marine Transport Corp. ("Yang Ming"), who is one of the two Third-Party-Defendants-Appellees. Yang Ming, a vessel-operating common carrier ("VOCC"),*fn3 is the owner of the vessel that took the printing press across the ocean in the first leg of the journey. Yang Ming issued a sea waybill to OWL.
Djuric Trucking, Inc. ("Djuric"), who is the other Third-Party-Defendant-Appellee. Djuric is the owner of the truck which carried the printing press during the third leg of the trip, and which crashed into an overpass, damaging the printing press. Djuric did not issue its own bill of lading.
A. The Course of the Shipment
On June 15, 2006, OWL issued a bill of lading*fn4 to White Horse. The bill of lading described the printing press, and provided that seven packages consisting of the printing press would be shipped from Bremerhaven, Germany, to Bourbon, Indiana. The transport was to be intermodal.*fn5 OWL, being a NVOCC, is a middleman that does not own and operate its own vessels. Instead, it enters into service contracts whereby it purchases large blocks of cargo space at a discount from vessel-operating common carriers (VOCCs). It then contracts with shippers to ship smaller amounts of cargo in that space. In this particular instance, OWL's bill of lading provided that the shipment would go to Norfolk, Virginia, on the M/V Yang Ming Milano, owned by the VOCC Yang Ming. Final delivery was to be made thereafter in Bourbon, Indiana. On June 16, 2006, the day after OWL's bill of lading was ...