Second Circuit – Subrogation: Indem. Ins. Co. of N. Am. V. Unitrans Int’l Corp.

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United States Court of Appeals for the Second Circuit

Subrogation

International cargo transportation – Montreal Convention

Indem. Ins. Co. of N. Am. V. Unitrans Int’l Corp.

21-2132

Judges Lynch, Chin, and Sullivan

Background: The plaintiff appealed from the grant of summary judgment to the defendant on the plaintiff’s subrogated claims for damage to cargo that occurred while the cargo was being unloaded from a truck at an airport. The district court had concluded that the defendant qualified as a contracting carrier under the Montreal Convention and that the plaintiff’s action was time-barred by the Convention’s statute of limitations.

Ruling: The Second Circuit vacated. The court held that while the parties are subject to the Montreal Convention, there is a disputed material fact as to whether the defendant was a contracting carrier. The court noted that the defendant was not the actual carrier because it did not perform and was not intending to perform any part of the carriage itself. There is a dispute as to whether the defendant was acting as a principal because it took primary responsibility in making and executing the carriage contracts. However, there is evidence that the defendant merely set up an air-carriage contract between parties.

Justin M. Heilig, of Hill Rivkins, for the plaintiff-appellant; John Alan Orzel, of Kennedys CMK LLP, for the defendant-appellee.

Oral argument audio