Commodities Reserve Co. v. St. Paul Fire & Marine Insurance Co.

Commodities Reserve, the plaintiff-appellant, seeks reimbursement from defendant-appellee St. Paul, its marine insurer, for expenses incurred in forwarding cargo from Crete to Venezuela, including certain litigation costs in Crete. Commodities Reserve incurred the expenses in order to avoid losses from infestation while the vessel carrying its cargo was detained by Greek authorities. St. Paul refused to pay because the policy excludes losses arising from detainment. The district court granted summary judgment for St. Paul. We affirm in part, reverse in part, and remand.

BACKGROUND

Commodities Reserve contracted to sell approximately 1,008 tons of chickpeas (aka garbanzo beans) and 50 tons of cumin seeds to purchasers in Venezuela. Commodities Reserve purchased the chickpeas and cumin seeds in Turkey, and chartered space on the M/V West Lion to carry its cargo from Mersin, Turkey to Puerto Ca-bello, Venezuela. The West Lion was owned by Maritime Shipping Corp., and chartered to Carimed Shipping Lines, Ltd. Commodities Reserve subchartered its space from Carimed and had no involvement in the management or operation of the vessel. The cargo was insured under the provisions of a…