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Maritime Law
Negligent Transport
Theft Insurance

Continental Insurance Co. v. CLX Services, Circle International Inc., Arrow Trucking of California Inc.

Published: May 18, 2004 | Result Date: Oct. 15, 2003 | Filing Date: Jan. 1, 1900 |

Case number: 8424260 Verdict –  $0

Judge

William A. McKinstry

Court

Alameda Superior


Attorneys

Plaintiff

Marilyn Raia

Vijay K. Toke
(Pillsbury, Winthrop, Shaw & Pittman LLP)


Defendant

Kevin J. Gray

Rex M. Clack
(Sterling Clack & Russo)


Experts

Plaintiff

Frank Daley
(technical)

Richard Bernes
(technical)

Defendant

Michael Haugh
(technical)

Facts

In February 2001, 963 cartons of telephone equipment were shipped to the San Jose company Teledex. The shipment was transported by ship from Malaysia to Oakland in a single container and arrived in good order. Defendant CLX/Circle International Inc. contracted with defendant Arrow Trucking Co. to transport the cargo inland to San Jose. Arrow transported the cargo to its yard where the entire container load of cargo was stolen. The thieves were not identified and the cargo was never recovered. Teledex insured the shipment with plaintiff Continental Insurance Co.

Settlement Discussions

The plaintiff's demand was $280,547. CLX/Circle made a C.C.P. Section 998 offer of $5,500 and Arrow's offer was C.C.P. Section 998 of $25,000.

Damages

The plaintiff sought recovery of $280,547, the full amount of payment under its policy to Teledex for the loss.

Result

The jury found defendants were not negligent in the loss of the cargo and thus were not liable under COSGA's Q-Clause.

Deliberation

1.75 hours

Poll

9-3

Length

six days


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