M. S. Cowen Co. v. American President Lines, Ltd.

This is an action to recover for cargo damage resulting from beetle infestation in a shipment of 800 bags of desiccated coconut. Desiccated coconut is dried coconut which has been processed for bakery and confectionery uses. On April 4, 1956, Sun-Ripe Coconut Products, Inc., delivered 800 bags of desiccated coconut to respondent American President Lines, Ltd., at Manila, Philippine Islands, for transportation to San Francisco, California, aboard the S.S. President Cleveland. Libelant M. S. Cowen Co. became the owner of the shipment before it arrived at San Francisco on April 26, 1956. Upon unloading, the shipment was found to be infested with saw-tooth grain beetles, tiny brown insects about one-tenth of an inch long.

The record shows that the desiccated coconut was produced and packaged at the Sun-Ripe factory in Buenavista, Magdalena, Laguna, Philippines, between March 12 and 16, 1956. It was shipped by truck to Manila, stored in Sun-Ripe’s Manila warehouse until April 3, 1956, and then carried by lighter to the President Cleveland. Respondent’s agents at Manila issued a clean-on-board bill of *839 lading which states that the 800 bags were received “in apparent good order and…