## Facts

- A Greek cargo vessel loaded tobacco, cheese, and olive oil in Greek-area ports in 1940 for carriage to the United States, with an expected Gibraltar route lasting about 25–28 days.
- After Italy attacked Greece, the vessel was requisitioned and ordered to sail under wartime controls via Suez and the Cape of Good Hope, producing an extended, hot voyage lasting about five months.
- While following convoy and naval instructions, the ship experienced mechanical problems at Aden that required repairs without drydock access.
- To effect repairs, cargo including the cheese shipment was discharged to lighters at Aden; there were no warehouse facilities, and the cheese was covered with tarpaulins before being reloaded.
- The cheese arrived in New York spoiled and largely valueless.
- Two shipments of olive oil in steel drums were received in apparent good order but arrived substantially short due to leakage during the voyage.
- Cargo interests sued the shipowners under the Carriage of Goods by Sea Act (COGSA); the district court awarded damages for the cheese and olive-oil losses and granted pre-judgment interest.
- The shipowners appealed the awards and the interest determination.

## Issues

1. Whether COGSA’s “arrest or restraint of princes, rulers or people” defense relieved the carrier of liability for the cheese spoilage caused by wartime routing and conditions, and whether any negligent stowage or handling contributed.
2. Whether the carrier rebutted the cargo claimants’ prima facie COGSA case for the olive-oil shortage by proving an excepted cause or absence of negligence.
3. Whether the district court properly awarded pre-judgment interest despite substantial litigation delay.

## Decision

- The court reversed the cheese award, holding the shipowners not liable.
- The court affirmed the olive-oil awards, holding the shipowners liable for the leakage-related shortage.
- The court affirmed the award of pre-judgment interest as within admiralty discretion.
- Disposition: affirmed in part and reversed in part.

## Legal Principles

- Under COGSA, once cargo is shown to be received in apparent good order and delivered damaged or short, the carrier must prove an excepted cause and show that negligence did not contribute, or otherwise establish due care sufficient to avoid liability.
- Governmental wartime requisitioning and routing/convoy orders that materially control a vessel’s movements can qualify as a COGSA “restraint of princes” defense.
- When loss is primarily attributable to a COGSA-excepted cause and the carrier’s stowage and handling were reasonable for the contemplated voyage and constrained port conditions, the carrier is not liable.
- A carrier does not defeat a prima facie case by invoking general wartime conditions or inherent vice without adequate proof linking the specific loss to an exception and excluding carrier fault.
- Pre-judgment interest in admiralty is generally available to fully compensate prevailing claimants and is reviewed for abuse of discretion, including consideration of responsibility for delay.

## Conclusion

The Second Circuit held that wartime governmental control causing an unanticipated, prolonged, high-temperature voyage constituted a COGSA “restraint of princes” barring recovery for spoiled cheese absent proof of negligent stowage or handling, but affirmed liability for olive-oil losses where the carrier failed to persuasively connect leakage to an exception or to negate negligence, and it upheld pre-judgment interest as a proper discretionary award.


Lekas & Drivas, Inc. v. Goulandris, 306 F.2d 426 (2d Cir. 1962)