FMC ruling revives NVO case against Alianca
The U.S. Federal Maritime Commission has ruled that the
non-vessel-operating common carrier Anchor Shipping can proceed with an appeal seeking more money from steamship line Alianca, even though an arbitrator had already made a decision on the case.
The FMC Wednesday issued an order vacating a ruling by an administrative law judge that said Anchor Shipping could not seek further redress against Alianca after an arbitrator had earlier ruled Alianca needed to pay Anchor $381,000 to settle a dispute related to a service contract between the companies.
Anchor seeks $1 million for alleged violations by Alianca of the Shipping Act of 1984. The service contact between the companies said that disputes must go to an arbitration proceeding before going to the FMC. The arbitrator said Alianca had to pay the $381,000, which the company did pay, but Anchor then filed a complaint with the FMC seeking additional damages.
The administrative law judge had ruled that because of the arbitrator’s decision Anchor could not continue with the case. Anchor had claimed that the arbitrator’s decision did not address all the issues relating to Shipping Act violations, an argued the other issues should be addressed by the FMC.
The FMC decision Wednesday vacated the initial administrative law judge’s ruling and remanded the case to an administrative law judge for further adjudication.