Mitsui O.S.K. Lines, Ltd. v. Dynasea Corp.
Opinion
Opinion
Neal, J.
Summary
Where transaction documents show that a purchaser of goods agreed to include freight in its price to the seller, and the seller agreed to prepay the ocean carrier’s freight charges, the carrier cannot recover its freight charges from the buyer after the seller fails to pay those charges.
Facts and Proceedings in Trial Court
Appellant Mitsui O. S. K. Lines, Ltd., an ocean shipper, sued respondent Dynasea Corporation, a San Diego-based shrimp importer, to recover approximately $12,000, its charges for carrying four containers of shrimp from Thailand to Los Angeles.
Dynasea moved for summary judgment. The evidence presented in connection with the motion established the following facts without dispute:
Dynasea ordered $700,000 worth of shrimp from Thailand-based Ideal Trading Company. The transaction was memorialized in four invoices Ideal issued to Dynasea and also apparently in a purchase order, which the invoices refer to as “P.O. No. 61,” but is not included in the record. Ideal’s invoices noted they were drawn under an irrevocable letter of credit issued by Bank of America, Los Angeles. The letter of credit specified that payment would be made to Ideal only…