PAN-AM TRADE & CREDIT CORPORATION AND ANOTHER v. THE "CAMPFIRE."*

(1946) 80 Ll.L.Rep. 26

UNITED STATES.CIRCUIT COURT OF APPEALSFOR THE SECOND CIRCUIT.

Before Circuit Judges Swan, Clark and Frank.

Carriage of Goods by Sea Act, 1936-Short delivery of cargo-Partial loss-Limitation of value-Excess value (over 500 dols. per package) not declared-Pro rata clause in bill of lading-Validity-Shipment of rayon piece goods from New York to Guayaquil-Two cases valued at 1619 dols. -Loss from one case amounting to 677 dols. (40 per cent. of total)-Provision in bill of lading: "17. In case of any loss or damage to or in connection with goods exceeding in actual value 500 dols. lawful money of the United States, per package . . . the value of the goods shall be deemed to be 500 dols. per package . . . on which basis the freight is adjusted and the carrier's liability, if any, shall be determined on the basis of a value of 500 dols. per package . . . or pro rata in case of partial loss or damage, unless the nature of the goods and a valuation higher than 500 dols. shall have been declared in writing by the shipper upon delivery to the carrier and inserted in this bill of lading and extra freight paid if required and in such case if the actual value of the goods per package . . . shall exceed such declared value, the value shall nevertheless be deemed to be the declared value and the carrier's liability, if any, shall not exceed the declared value and any partial loss or damage shall be adjusted pro rata on the basis of such declared value"- Whether shipowners entitled to limit their liability to 40 per cent. of 500 dols. limit-Repugnancy to 1936 Act- Sects. 3 (8), 4 (5).