## Facts

- Constructores Tecnicos, S. de R.L. (Contec), a Honduran well-construction company, bought a diesel truck and portable drilling rig in the United States for a Honduran government project.
- Contec retained Golden Eagle International Forwarding Co. (Golden Eagle) to arrange ocean shipment to Puerto Cortés, Honduras.
- Golden Eagle arranged carriage with Sea-Land Service, Inc. (Sea-Land), which time-chartered a vessel owned by San Miguel Shipping, S.A. (San Miguel).
- A Sea-Land bill of lading was prepared that was “clean” as to stowage: it did not specify on-deck or below-deck carriage.
- Golden Eagle knew Sea-Land sometimes stowed cargo on deck absent special instructions, but did not inform Contec and did not request below-deck stowage.
- The truck and rig were secured to an open flatrack and stowed on deck; the vessel encountered rough weather, lashings failed, other containers struck the cargo, and the equipment was totally lost.
- Contec sued Sea-Land and San Miguel in federal district court under the Carriage of Goods by Sea Act (COGSA), which generally limits carrier liability to $500 per package unless an “unreasonable deviation” defeats the limitation.

## Issues

1. Whether stowing the cargo on deck on an open flatrack under a clean bill of lading was an unreasonable deviation that eliminated COGSA’s $500 per package limitation.
2. Whether Golden Eagle had authority, as Contec’s freight forwarder, to consent to on-deck stowage or waive Contec’s expectation of below-deck carriage, and whether Golden Eagle’s knowledge could be imputed to Contec.
3. Whether San Miguel (shipowner) was required to indemnify Sea-Land (charterer) for Contec’s cargo loss.
4. Whether the district court correctly apportioned damages among defendants in light of settlements and comparative fault principles.

## Decision

- The Fifth Circuit held that on-deck stowage of the truck and rig on an open flatrack, without shipper consent and under a clean bill of lading, was an unreasonable deviation; COGSA’s $500 limitation did not apply.
- The court agreed that Golden Eagle lacked authority to consent to on-deck stowage on Contec’s behalf; Golden Eagle’s knowledge of Sea-Land’s practices was not treated as Contec’s waiver or consent.
- The court affirmed the district court’s refusal to require San Miguel to indemnify Sea-Land.
- The court reversed the district court’s damages apportionment approach and remanded for reallocation consistent with governing settlement and comparative fault rules.
- Disposition: affirmed in part, reversed in part, and remanded.

## Legal Principles

- A clean bill of lading that is silent on stowage generally supports the shipper’s reasonable expectation of below-deck carriage.
- Unconsented on-deck stowage that materially increases carriage risk—particularly exposed carriage on an open flatrack—may constitute an unreasonable deviation that defeats COGSA’s $500 per package limitation.
- A freight forwarder’s routine role in arranging shipment does not, without clear authority, include power to consent to a major change in carriage risk or to waive the shipper’s contractual expectation of below-deck stowage.
- Allocation of damages among maritime defendants after settlements must follow applicable comparative fault and contribution principles; erroneous allocation warrants remand.

## Conclusion

The Fifth Circuit treated unconsented on-deck flatrack carriage under a clean bill of lading as an unreasonable deviation that removed COGSA’s liability cap, rejected implied consent through the freight forwarder, affirmed denial of owner-to-charterer indemnity, and remanded solely to correct the damages allocation among defendants.


Constructores Tecnicos, S. de R.L. v. Sea-Land Serv., Inc., 945 F.2d 841 (5th Cir. 1991)