American Home Assurance Company v. American President Lines, Ltd.

American Home Assurance Company (American Home) prevailed in a bench trial against American President Lines (APL) on its claim that cargo carried by APL arrived at its destination freeze damaged. In APL’s appeal, we consider the amount of proof needed to negate a prima facie case under the Carriage of Goods by Sea Act, 46 U.S.C. § 1300 et seq., (COGSA), the requirements of proving a COGSA defense, and the evidence required to prove damages under COGSA.

I.

APL is a common carrier by sea. In 1990 and 1991, APL delivered four shipments of fruit (cherries and grapes) from the United States to Hong Kong for Primary Export International, Inc. (Primary). The parties stipulated that each shipment was in good condition when received by APL. Primary’s customer, Ever Fresh Trading Company (Ever Fresh), claimed that each shipment was partially freeze damaged on arrival in Hong Kong. Primary’s insurer, American Home, paid Primary for the damage and brought the present action against APL for subrogation.

APL used refrigerated ocean containers for each of the four shipments. Included within each container was a refrigeration unit, the purpose of which was to cool the container and maintain…