Genetics International, Plaintiff-Counter-Defendant-Appellant v. Cormorant Bulk Carriers, Inc., Defendant-Counter-Claimant-Appellee

Genetics International (Genetics), a California corporation which exports wheat-seed, appeals a district court order granting the shipper Cormorant Bulk Carriers, Inc. (Cormorant) summary judgment on its claim for unpaid freight.

This case stems from two shipments of wheatseed by Genetics from Port Huen-eme, California to Damman, Saudi Arabia on board vessels owned by Cormorant. Genetics paid for the first shipment in full, but later alleged that the cargo had been damaged by negligent handling. Soon after paying for the first shipment, Genetics contracted with Cormorant for transport of a second shipment of wheatseed to Saudi Arabia. Genetics does not dispute that this second shipment arrived at its destination in good condition and that it received full payment from its customers for the cargo. Nevertheless, Genetics refused to pay Cormorant the full amount of freight owed, withholding $87,454.68.

Genetics sued Cormorant and two other defendants in district court for the damage sustained by its cargo during the first shipment. Its complaint invoked the district court’s jurisdiction over admiralty and maritime claims pursuant to Rule 9(h), Fed.R. Civ.P., and 28 U.S.C. § 1333…