Usinas Siderugicas de Minas Geras, SA-Usiminas v. Scindia Steam Navigation Co.: The Fifth Circuit Holds that COGSA Defenses Are Absolute

Recent Development by Ruth Brewer

On March 5, 1994, the the M/V Jalavihar, owned by Scindia Steam Navigation Co. (Scindia), grounded in the Mississippi River, severely damaging her rudder and steering mechanism while under the control of a river pilot. The vessel was docked at the Electro-Coal facility on the east bank of the river with her bow into the current and starboard side against the dock. With the assistance of two tugs, the pilot began to execute a turning maneuver in order to proceed to a nearby anchorage and await further loading instructions from the cargo owners, Usinas Siderugicas de Minas Geras, SA and Usiminas Importacao, SA (collectively, Usiminas). The pilot later testified that he had explained the maneuver to both tug captains. As the Jalavihar departed the berth, the pilot radioed one tug, the Billy Slattern, to ask if there were any lines on the bow. The pilot then discovered that the tug could not assist him with the bowlines, because the tug was positioned incorrectly at the port quarter. In that position, the tug could not aid properly in maneuvering the vessel. By the time the tug corrected its error and reached the proper position, the Jalavihar had drifted farther than expected; despite this occurrence, the Jalavihar's pilot later testified that he believed he would be able to complete the turn and was aware of other vessels in the river. However, the Jalavihar struck the barges on the west bank and ran aground shortly thereafter. Scindia declared a general average event and sued Usiminas for contribution.

The United States District Court for the Eastern District of Louisiana found for Scindia, the carrier. Specifically, the district court found the following: communication problems between the captain of the Billy Slattern and the pilot of the Jalavihar caused the accident; the lack of a dedicated pilot, radar mechanisms, or company policies requiring its master to discuss routine maneuvers with the pilot did not cause the accident; Scindia exercised due diligence to render the Jalaviharseaworthy before the voyage commenced; and the Jalavihar began its voyage at the time it left the dock so that any subsequent events did not render the vessel unseaworthy. The district court held that Scindia had established that the incident was caused by an error in navigation, an excepted cause under the Carriage of Goods by Sea Act (COGSA). The fact that the carrier fell under a COGSA exception allowed the carrier to claim a gneral average event, so that the losses could be shared by all of the parties who were involved in the venture. The United States Court of Appeals for the Fifth Circuit agreed with the finding of the district court and held that COGSA exempts the carrier from liability for navigational errors regardless of whether the errors occurred before or after the commencement of the voyage. Usinas Siderugicas de Minas Geras, SA-Usiminas v. Scindia Steam Naviagation Co. (M/V Jalavihar), 118 F.3d 328 (5th Cir. 1997).


About the Author

Ruth Brewer.

Citation

72 Tul. L. Rev. 1421 (1998)