Mazda Motors of America, Inc. v. M/V Cougar Ace

I. Background

A shipment of automobiles bound for U.S. ports allegedly sustained more than $40 million in water damage while cross- ing the Pacific Ocean aboard the defendant vessel, the M/V COUGAR ACE. Plaintiff Mazda Motors of America, Inc., consignee of the cargo, and its subrogated insurer, plaintiff Indemnity Insurance Company of North America (collectively “Mazda”), brought this admiralty action to recover for that damage. The shipment was governed by six identical bills of lading, which established the contract between Mazda’s affili- ates in Asia and ocean carrier Mitsui O.S.K. Lines (“Mitsui”) for transportation of the automobile cargo from Japan to vari- ous U.S. ports. As carrier, Mitsui issued the bills of lading and operated the defendant vessel, but the vessel’s owner is MOB Cougar (Pte) Ltd. (“MOB Cougar”). Neither Mitsui nor MOB Cougar is a party to this lawsuit, however, because Mazda’s complaint names only the M/V COUGAR ACE in rem.

Mazda filed its action in federal district court in Oregon, where the defendant vessel had been towed after it took on water. MOB Cougar made a restricted appearance to claim the vessel and defend the suit under Supplemental Rule…