LAWYER: SHIPPERS UNLIKELY TO WIN WEST COAST CLASS ACTION AGAINST CARRIERS
Shippers who may be considering a class action lawsuit against shipping lines after having suffered damage related to the U.S. West Coast port shutdown are unlikely to win in court, according to Washington-based law firm Rodriguez O’Donnell Ross Fuerst Gonzalez & Williams.
The law firm said most service contracts include a requirement for arbitration, making the likelihood of a successful class action lawsuit small.
However, the law firm said it is exploring a class action on behalf of direct shippers and intermediaries before the U.S. Federal Maritime Commission on the grounds of unfair trade practices by ocean carriers.
On Oct. 24, the FMC confirmed that six or seven shippers contacted the regulator with complaints or questions about ocean carriers’ U.S. West Coast congestion surcharges, their declaration of “force majeure,” and requests that shippers pay for congestion and other extra costs.
This was followed on Oct. 29 by an information advisory issued by the FMC to carriers reminding them of their obligations under 1984 Shipping Act (The advisory is available on American Shipper's Web site, at http://www.americanshipper.com/fmcadvisory.asp).
“Any surcharges published in tariffs that are designed to address the consequences of continuing congestion at U.S. West Coast ports generally should not be instituted without the required 30-day notice, and may be applied only in conformance with the applicable ‘effective date’ rule,” the FMC said in its advisory notice.
Ocean carriers have come under some criticism that, as members of the Pacific Maritime Association that took the decision to lock out dockworkers at all West Coast ports, they may not be entitled to claim the defense of “force majeure.”