New Ninth Circuit Admiralty Case - Himalaya Clause, Bills of Lading and Statutes of Limitation

The Ninth Circuit just issued a decision regarding guarantor liability for unpaid amounts following shipment of goods under several bills of lading.

The case is Clevo, Co. v. Hecny Transportation, Inc. and the original opinion case be found here.

From the court's syllabus (which is a handy-dandy tool the Ninth Circuit is using to provide a snapshot of the opinion:

Affirming the district court’s summary judgment in an admiralty action filed bya seller of computer parts, the panel held that misdelivery claims against a freight forwarder were barred by a one-year limitations period set forth in bills of lading.

The panel held that a guarantee, which established no express statute of limitations, was initially effective to place the seller and the freight forwarder in direct contractual privity. That initial relationship was modified when the bills of lading issued. By operation of a Himalaya clause, the benefit of the one-year statute of limitations in the bills of lading was extended beyond the non-vessel-operating common carrier that issued the bills of lading to the freight forwarder, an agent of the carrier.