Nissan Fire & Marine Insurance v. M/V Hyundai Explorer

I.

INTRODUCTION

This case arises out of an engine room fire aboard the M/V HYUNDAI EXPLORER (the “Vessel”), a Korean flag container cargo ship, on or about January 2, 1992. Defendant-appellant Hyundai Merchant Marine Co., Ltd. (“HMM”), the bare-boat charterer 1 and operator of the Vessel when she experienced the fire, appeals the district court’s grant of summary judgment for plaintiffs-appellees Nissan Fire & Marine Insurance Co., Ltd., Taiko Bussan Kaisha, Ltd., Fireman’s Fund Insurance Co. and American Home Assurance Co., (collectively, ■ “Cargo Interests”). Cargo Interests are the subrogated insurers or consignees of cargo that suffered damage because of the fire. We reverse the summary judgment for Cargo Interests and remand to the district court with instructions to enter judgment for HMM.

II.

FACTUAL AND PROCEDURAL BACKGROUND

The parties stipulated to most of the relevant facts in their Agreed Statement, of Facts, which they filed with the district court. During the voyage at issue, the Vessel loaded and discharged cargo at Long Beach, Oakland and Seattle. It' departed Seattle for Pusan, Korea on December 22, 1991. During the cargo operations in the United States ports…