Ceramic Corp. of America v. Inka Maritime Corp.

Ceramic Corporation of America and 22 other American owners and insurers of cargo carried aboard the M/V-Bremen Senator (collectively Ceramic) appeal from the district court’s dismissal of their admiralty action on the grounds of forum non conveniens. Ceramic contends that the district court erred in concluding that Japan is a more convenient forum for its claims. The district court had jurisdiction pursuant to 28 U.S.C. § 1333 . We have jurisdiction over this timely appeal pursuant to 28 U.S.C. § 1291 . We reverse and remand.

I

About May 15 or 16, 1991, the M/V Bremen Senator (vessel) collided with a pier owned by the Nisshin Tanker Company (Nisshin) located on Matsure Island in Japanese territorial waters, thus interrupting the vessel’s trip to the United States. The owner of the vessel, Inka Maritime Corporation (Inka), a Liberian corporation with its principal place of business in Germany, declared general average in Japan and appointed an average adjuster located in Hamburg, Germany. General average is an equitable doctrine in maritime law applicable when the vessel incurs extraordinary expense “to avert a peril that threatens the entire voyage.” In such circumstances, “the…