Re: U.S. MARITIME LAW DEVELOPMENTS-5TH CIRCUIT COURT OF APPEALS RULES THAT A VESSEL’S MANAGER CAN BE LIABLE IN TORT FOR CARGO DAMAGE OUTSIDE THE UNITED STATES CARRIAGE OF GOODS BY SEA ACT (“COGSA”) 24 July 2003 No.484 We would like to draw your attention to the U.S. Court of Appeals for the Fifth Circuit's 13th May 2003 decision in Steel Coils, Inc. v. M/V LAKE MARION, et al,No.02-30006(5th Cir. 2003).In this important unanimous decision, Judge Higginbotham, writing for the Court, affirmed the local Federal District Court's earlier decision, holding that cargo interests can successfully maintain a tort action outside of COGSA against a vessel's Manager who is not a COGSA carrier. The decision had burdensome financial and legal consequences for the vessel's Manager as it was not able to avail itself of the U.S. COGSA US$500 package limitation. This cargo case, on appeal from the United States District Court for the Eastern District of Louisiana, concerned the alleged seawater wetting of steel coils and plates loaded in Riga, Latvia, for discharge at New Orleans, Louisiana, and Houston, Texas. Steel Coils, Inc. ("Steel") sued the M/V "LAKE MARION" in rem, and the vessel's Owners, Lake Marion, Inc. ("Lake Marion"), its Managers, Bay Ocean Management ("Bay Ocean"), and its Time Charterers, Western Bulk Carriers K/S Oslo ("Western Bulk"), in personam, all pursuant to COGSA, and alleged a separate negligence claim against Bay Ocean. The local District Court held that the coil cargo for New Orleans, and the coil and plate cargoes for Houston, were damaged by seawater ingress through the vessel's hatch covers during the ocean voyage, and in addition, coils for New Orleans stowed in Hold No. 1 were damaged by water that leaked from "...a crack in the plating that separated the No. 1 hold from the port wing ballast tank." Accordingly, all defendants were found jointly and severally liable to Steel for US$262,000 (the COGSA package limitation for the 524 damaged coils and plat