and the Law of Bailment He is licensed to practice law in all federal and state courts in Louisiana, and was co-trial counsel to AJC International, Inc. in this case. 3300 Energy Centre 1100 Poydras Street New Orleans, Louisiana 70163 504.585.7917 Phone 504.585.7688 Fax rkitto@monbar.com www.monbar.com east Louisiana has given parties that deposit cargo with marine terminal operators an opportunity to better define the extent to which terminal operators must protect the cargo in their care from damage in the wake of approaching storms. AJC International, Inc. ("AJC") v. New Orleans Cold Storage and Ware- house Company, Limited ("NOCS"), Civil Action No. 09-7519 in the United States District Court for the Eastern District of Louisiana is one such case. Although the case may initially appear to be of limited applicability, bailment principles under Louisiana law are generally consistent with those of other jurisdictions. So in that regard, the case provides instructional value to anyone who may deposit goods or equipment for storage with a bailee. The facts in AJC v. NOCS are straightforward. In the summer of 2008, AJC delivered cargo to NOCS for cold storage pending overseas shipment. was located in eastern New Orleans on Gulf Outlet/Gulf Intracoastal Waterway ("MRGO/GIWW"). NOCS accepted the shipment which consisted of thousands of cartons of frozen chicken stacked on wooden pallets seven or eight cartons high and shrink wrapped. NOCS stacked the wooden pallets on the floor of the warehouse's freezer one on top of the other several tiers high. On September 1, 2008, while the cargo was still being stored in the warehouse, Hurricane Gustav passed to the south and west of New Orleans, and made landfall along the Louisiana coast in Terrebonne Parish. of water entered from the rising MRGO/ GIWW. As a result of the loss of power and flooding, the bottom three or four layers of cartons on the bottom tier of pallets (which remained on the floor) became thawed and wetted rendering the frozen chicken unfit for consumption. At trial, the Court found that AJC established a prima facie case that the goods were delivered but not returned delivered. Thus, the burden shifted to NOCS to prove that it exercised reasonable care. testified that the company took precautions to protect cargo in its care from damage associated with hurricanes. The company reinforced the warehouse structure after it was rebuilt following Hurricane Katrina, and in the days leading up to the approach of Gustav, barricaded the warehouse overhead doors to prevent them from being blown out by heavy wind. NOCS also made arrangements to ensure that any loss of power could be restored in order to maintain freezer temperature to prevent thawing. However, there was no evidence that NOCS tried to protect the cargo from flood waters. The Court noted that the warehouse was located outside of any hurricane protection floodwall or levee system and had sustained catastrophic damage both from wind and flooding during Hurricane |