Judge Lorna Schofield
Indian paper maker Century contracted to buy 500 metric tons of pulp from now defunct Illinois wood products dealer Certifibre. Certifibre booked shipment with the MSC Mediterranean Shipping Co. SA (MSC), which operates the MSC Damla, owned by Detour Holdings Inc. Certifibre defrauded Century by delivering only a fraction of the pulp expected. MSC's bill of lading—through which Certifibre was paid $325,000 by the State Bank of India—grossly overstated the weight of shipping containers. Despite knowing the containers were shortloaded, MSC did not notify Century. The Carriage of Goods by Sea Act governed Century's action to recover its losses. The court denied both Century and the MSC Damla defendants summary judgment, concluding that although it established a prima facie case for defendants' liability, disputed factual issues existed whether Century relied on the bill of lading issued by MSC. Although Century cannot have relied on the bill of lading when the State Bank of India made payment, it was unclear whether the State Bank of India forwarded Century the bill of lading. Thus a fact dispute existed whether Century actually saw the bill of lading before Certifibre drew on the letter of credit Century opened at State Bank of India.
