FMC REFUSES TO DISMISS COMPLAINT AGAINST MAERSK SEALAND
U.S. Federal Maritime Commission has ruled in favor of a fish shipper that a cause of action under the 1984 Shipping Act accrues when the party first knew or should have known of its potential claim.
In its complaint, Alaska-based Inlet Fish Producers Inc. alleged that Sea-Land Service (known now as Maersk Sealand) had transported its seafood products from Alaska to foreign destinations from June to August 1996, and that at some point during that time, the carrier moved identical or similar products to similar points.
Inlet Fish further contended that Sea-Land had allowed “similarly situated” shippers to subtract the weight of packaging and wrapping (“tare weight”) from the weight of their cargo for the purpose of determining freight rates, but that Inlet Fish was not allowed to do the same. Inlet Fish said this resulted in it paying higher freight charges than its competitors, violating the Shipping Act.
Inlet Fish filed a complaint against Maersk Sealand with the FMC on Jan. 21, 2000. Maersk Sealand filed a motion to dismiss the complaint, arguing that Inlet Fish’s complaint was more than three and half years old,'six months beyond the three-year statute of limitations.
Administrative Law Judge Frederick M. Dolan Jr. denied Maersk Sealand’s motion, ruling that Inlet Fish did not learn about the violation until 1998. Maersk Sealand appealed the ALJ’s order, but the FMC rejected the carrier’s appeal.
The complaint will now go back to the ALJ for consideration of Maersk Sealand’s alleged Shipping Act violations.