Marcia S. Krieger, Chief United States District Judge.
On March 3, 2016, Expeditors delivered a shipment of computer servers racks to UPS to be flown from London to Denver. As discussed in more detail below, the cargo arrived damaged. A second shipment on March 4, 2016, transported in the same manner, also arrived damaged.
Based on these facts, Expeditors asserts
In response, UPS filed a Third-Party Complaint
The parties' summary judgment briefing clarifies, to some extent, the circumstances regarding the two shipments. As to the March 3 shipment, it is undisputed that UPS acknowledged that it received the cargo from Expeditors in London in good condition. UPS then flew the cargo to Denver. UPS arranged for Bronson to take possession of the cargo at a location known as the "hub" and transport it by truck to the recipient a few blocks away. Clint Turner, the Bronson driver handling the cargo, states in an affidavit that he observed that the cargo consisted of two packages on separate pallets. On one pallet, "the surrounding cardboard, also known as the `shroud,' was loose, torn, and had indentations." On the second pallet, the package "had puncture holes in the carton which was open on the bottom and some of the cargo was exposed." As a result, Mr. Turner wrote on the waybill "[outer] packaging crushed and damaged[,] may have hidden damage x2."
Steve Sinohui, UPS' representative at the scene, testified in his deposition that he also observed the damage to the packaging, but that neither he or Mr. Turner "could make a determination that there was damage to the [packages'] contents." Thus, Mr. Sinohui wrote, beneath Mr. Turner's notation on the waybill, "no visible damage to contents." Thereafter, Mr. Turner loaded the pallets onto his truck.
No party has come forward with any evidence regarding unusual circumstances that may have occurred during Mr. Turner's brief transportation of the pallets to the recipient. The recipient observed damages to the pallets' contents and complained to Expeditors.
As to the second shipment, it is undisputed that UPS did not note any damage to the shipment when it took delivery from Expeditors. Neither party has come forward with any evidence about any events that occurred during the cargo's transportation to the recipient. It appears to be undisputed that the recipient of the cargo noted upon delivery that the cargo had suffered substantial damage.
On March 30, 2016, a company called MTI Inspection Services conducted an examination of the cargo and its packaging at the recipient's location. MTI's report notes the following:
Both Bronson and Expeditors have filed summary judgment motions directed at claims made by or against UPS. Bronson's motion
Rule 56 of the Federal Rules of Civil Procedure facilitates the entry of a judgment only if no trial is necessary. See White v. York Intern. Corp., 45 F.3d 357, 360 (10th Cir. 1995). Summary adjudication is authorized when there is no genuine dispute as to any material fact and a party is entitled to judgment as a matter of law. Fed. R. Civ. P. 56(a). Substantive law governs what facts are material and what issues must be determined. It also specifies the elements that must be proved for a given claim or defense, sets the standard of proof and identifies the party with the burden of proof. See Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986); Kaiser-Francis Oil Co. v. Producer's Gas Co., 870 F.2d 563, 565 (10th Cir. 1989). A factual dispute is "genuine" and summary judgment is precluded if the evidence presented in support of and opposition to the motion is so contradictory that, if presented at trial, a judgment could enter for either party. See Anderson, 477 U.S. at 248, 106 S.Ct. 2505. When considering a summary judgment motion, a court views all evidence in the light most favorable to the non-moving party, thereby favoring the right to a trial. See Garrett v. Hewlett-Packard Co., 305 F.3d 1210, 1213 (10th Cir. 2002).
If the movant has the burden of proof on a claim or defense, the movant must establish every element of its claim or defense by sufficient, competent evidence. See Fed. R. Civ. P. 56(c)(1)(A). Once the moving party has met its burden, to avoid summary judgment the responding party must present sufficient, competent, contradictory evidence to establish a
If the moving party does not have the burden of proof at trial, it must point to an absence of sufficient evidence to establish the claim or defense that the non-movant is obligated to prove. If the respondent comes forward with sufficient competent evidence to establish a prima facie claim or defense, a trial is required. If the respondent fails to produce sufficient competent evidence to establish its claim or defense, then the movant is entitled to judgment as a matter of law. See Celotex Corp. v. Catrett, 477 U.S. 317, 322-23, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986).
UPS' only substantive claim against Bronson sounds in contribution. Under Colorado law, a party claiming contribution must show that: (i) it and other persons were jointly or severally liable for the same injury to a third party; and (ii) the party claiming contribution has paid more than its pro rata share of the common liability. C.R.S. § 13-50.5-102(1). Thus, to avoid summary judgment, UPS must come forward with evidence that demonstrates a genuine dispute as to whether Bronson was liable for some or all of the damage to the cargo.
UPS has not done so. UPS' theory of the case is that: (i) although there was visible exterior damage to the cargo before UPS delivered it to Bronson, the contents were nevertheless intact when the cargo was delivered to Bronson, and (ii) the damage to the cargo's contents occurred during Bronson's transit of the contents thereafter. But UPS has not adduced a scrap of evidence to establish either of those two key facts. As to whether the cargo's contents had been damaged before delivery to Bronson, even Mr. Sinohui, UPS' own representative, acknowledged that neither he nor Mr. Turner were able to examine the contents and reach a conclusion about their status. And UPS offers no evidence to dispute Mr. Turner's affidavit that the transport of the cargo from the hub to the recipient occurred without incident. Simply put, all that UPS has offered to implicate Bronson here is a theory, but not evidence. Consequently, UPS has failed to demonstrate a triable dispute with regard to its contribution claim against Bronson. Bronson is entitled to summary judgment on all of UPS' claims.
Expeditors seeks summary judgment against UPS on its claims under the Montreal Convention. Article 18 of the Montreal Convention, which governs "Damage to Cargo," applies here. Subsection 1 of Article 18 provides that "the [air] carrier is liable for damage sustained in the event of . . . damage to cargo upon condition that the event which caused the damage so sustained took place during carriage by air." However, subsection 2 of Article 18 provides that "the [air] carrier is not liable if and to the extent it proves that the . . . damage to the cargo resulted from. . . defective packaging of that cargo performed by a person other than the carrier."
As to the March 3 shipment, it is undisputed that UPS transported the cargo by international air carriage, and that the cargo was damaged, at least superficially, during that carriage. UPS argues that the cargo's
As to the March 4 shipment, Expeditors has come forward with undisputed evidence that the cargo was undamaged when tendered to UPS for international air carriage. Neither party has set forth the how the cargo moved in transit thereafter, but it is undisputed that the cargo was damaged when received by the recipient. UPS' response brief concedes that "[d]amage to the cargo occurred during transit," and there is no indication that the transit consisted of anything more than UPS' air carriage. Thus, Expeditors has come forward with evidence to support its prima facie burden of showing that the cargo was damaged in international air carriage.
UPS' contention is that the cargo was damaged as a result of defective packaging by Expeditors or the party consigning the cargo for shipping. As reflected in subsection 2 of Article 18, UPS bears the burden of proving that the shipment was inadequately packed. The sole evidence that the parties have submitted regarding the packaging of the cargo is the MTI report quoted above.
Expeditors has alleged, without challenge from UPS, that it was forced to pay damages to the recipient in the maximum amount of its contractual liability — $250,000 per shipment. Accordingly, the Court grants Expeditors' motion for summary judgment and enters judgment in favor of Expeditors and against UPS in the amount of $500,000.
For the foregoing reasons, Bronson's Motion for Summary Judgment