## Facts

- Induspapel, a Dominican buyer, purchased a large shipment of soft wood kraft pulp from Sanca for about $569,790.
- Cargo was loaded in southern Florida on the M/V ALBERT F, and a clean on-board bill of lading was issued describing the goods as kraft pulp; the cargo particulars were stated to be furnished by the shipper.
- Induspapel paid Sanca in reliance on the clean bill of lading on the date it was issued.
- The vessel arrived at Port Haina, Dominican Republic (Feb. 19, 1979) and discharged 505 bales of wastepaper instead of the described pulp.
- Sanca initially arrested the vessel in rem; the vessel was released after Fairwind posted $344,500 security, and Induspapel was substituted as plaintiff.
- The district court held the vessel liable in rem, ruling it was estopped from contradicting the clean bill of lading, and awarded damages with prejudgment interest subject to a reduction; Induspapel sought more interest and increased security.

## Issues

1. Whether the vessel could be held liable in rem for nondelivery/misdelivery where a clean on-board bill of lading described pulp but wastepaper was discharged, and whether the vessel was estopped from impeaching the bill’s recitals against an innocent consignee who relied on it.
2. Whether the vessel qualified as a “carrier” for liability purposes under the bills-of-lading regime (including COGSA’s definition of “carrier”).
3. Whether the district court abused its discretion by reducing prejudgment interest and refusing to increase the posted security.

## Decision

- The court affirmed the judgment in all respects.
- The vessel was properly treated as a “carrier” under COGSA on the record, permitting in rem liability tied to the bill of lading obligations.
- The vessel was estopped from denying the clean bill of lading’s description as against Induspapel, an innocent holder for value that paid in reliance on the bill.
- The district court did not abuse its discretion in setting the amount of security or in reducing prejudgment interest.

## Legal Principles

- A vessel may be treated as a COGSA “carrier” (and thus subject to cargo liability) where it transported and discharged cargo, the bill of lading was issued for the master, and no contract clearly relieved the vessel/owner of cargo responsibility.
- A carrier issuing a clean on-board bill of lading is generally estopped, as to an innocent consignee or holder for value who relied on the bill, from contradicting the bill’s material recitals about the goods shipped.
- Misdelivery or nondelivery reflected by a bill-of-lading breach may support a maritime lien enforceable through an in rem action against the vessel.
- Decisions on the amount of substitute security upon release of an arrested vessel and on prejudgment interest are reviewed for abuse of discretion.

## Conclusion

The Eleventh Circuit upheld in rem liability against the M/V ALBERT F for discharging wastepaper instead of the pulp described in its clean bill of lading, holding the vessel was a COGSA “carrier” and estopped from impeaching the bill against an innocent buyer who paid in reliance on it, and it affirmed the district court’s remedial rulings on security and prejudgment interest.


Industria Nacional del Papel, C.A. v. M/V Albert F, 730 F.2d 622 (11th Cir. 1984)