American President Lines Ltd. v. North American Foreign Trading Corp.
Published: Nov. 25, 2000 | Result Date: Sep. 14, 1999 | Filing Date: Jan. 1, 1900 |Case number: NC0171886 Verdict – $0
Judge
Court
L.A. Superior Long Beach
Attorneys
Plaintiff
Defendant
Facts
The plaintiff, APL, is a corporation with its principal place of business in Oakland, California. The defendant,
NAFT Corp., is an importer of telephones and other electronics. NAFT had been a regular and major customer
of APL for many years. NAFT hired APL to carry five separate containers of telephones from Jakarta,
Indonesia, to Long Beach, Calif. The contractual obligations of the parties was set forth in a shipping
document called a "bill of lading."
Between December 1993 and February 1994, NAFT executed five indemnity agreements which provided that
in return for the release of the five separate shipments without surrender of the original bills of lading, NAFT
would indemnify APL and hold APL harmless for the delivery of the five shipments to NAFT. APL delivered
the shipments as provided for under the agreements.
NAFT had a dispute with P.T. Kodeco, the manufacturer and shipper, on prior shipments and therefore set off
the amount due for the five shipments against money owed by Kodeco to it.
P.T. Kodeco sued APL in Indonesia and threatened to attach APLÆs vessels and property in Indonesia. APL
tendered the lawsuit to NAFT. NAFT refused to defend of indemnify. APL had to defend itself in trial in
Indonesia. APL paid a judgment to P.T. Kodeco of $372,500.
Settlement Discussions
NAFT offered $100,000. APL demanded full reimbursement of judgment, attorney fees and costs of over $600,000 in the California action, for a total claim of $1.3 million.
Result
NAFT has paid the full judgment of $690,000 ($372,500 judgment paid by APC to P.T. Kodeco in Indonesia; $95,176.70 costs; $222,323.30 interest, both prejudgment and postjudgment).
Other Information
Motion for summary judgment granted in favor of NAFT denying recovery of attorney fees of over $600,000 to APL incurred in California action.
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