Facts

Mitsui O.S.K. Lines Ltd. sued Seamaster Logistics Inc., Summit Logistics International Inc., Kesco Container Line Inc., and Kesco Shipping Inc., involving allegations of fraud.

PLAINTIFF'S CONTENTIONS:
PPlaintiff, a Japanese shipping company, claimed defendants defrauded plaintiff by conspiring to charge plaintiff for fake trucking services in China and Hong Kong, in connection with shipments of cargo from Hong Kong and Shenzhen ports, to customers in the United States. This was done under Service Contracts filed with the U.S. Federal Maritime Commission and bills of lading filed with U.S. Customs and Border Protection pursuant to US law.

Plaintiff asserted claims for intentional misrepresentation, intentional misrepresentation (conspiracy, negligent misrepresentation, civil RICO under 18 U.S.C. Section 1962(c), civil RICO conspiracy, intentional misrepresentation, intentional misrepresentation (conspiracy, and negligent misrepresentation).

DEFENDANTS' CONTENTIONS:
Defendants disputed plaintiff's claims arguing, among other things, that plaintiff failed to allege fraud and lack of jurisdiction.

Damages

MOL sought over $7 million in damages.

Result

Ultimately, the court entered judgment in favor of Mitsui and against SeaMaster on Mitsui's claims for intentional and negligent misrepresentation in the amount of $1,151,205 and against Summit Logistics on the same claims in the amount of $2,122,374. The court dismissed with prejudice Mitsui's claims against SeaMaster and Summit Logistics under RICO. The court also found Summit Logistics jointly and severally liable with Kesco in the amount of $242,649 for Mitsui's claims for intentional and negligent misrepresentation and conspiracy. The court otherwise kept the prior judgment in favor of Mitsui and defendant Kesco undisturbed. The aggregate amount of the judgment against Summit and Seamaster entered on Oct. 21, 2015 was $3,516,228. This judgment was subject to a set-off of $554,618, representing the amount of attorney fees awarded to Summit and Seamaster in a companion case filed by Mitsui under the Shipping Act in which those entities prevailed. It was also subject to the further net of costs awarded to the parties in the two actions, for a net amount of $2,961,610 against Seamaster and Summit on the fraud claim (plus $12,794.16 post-judgment interest accrued during an earlier appeal).

Other Information

The judgment against Kesco that was kept intact was in the amount of $5,778,130.29. This judgment was entered on July 18, 2013 and was not appealed. FILING DATE: June 10, 2011.