[Federal Register Volume 72, Number 145 (Monday, July 30, 2007)]
[Notices]
[Page 41507]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 07-3692]


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FEDERAL MARITIME COMMISSION

[Docket No. 07-05]


K.E.I. Enterprise dba KEI Logix v. Greenwest Activewear, Inc.; 
Greenwest Activewear, Inc. v. K.E.I. Enterprise dba KEI Logix and Great 
White Fleet, Ltd.; Notice of Filing of Cross-Complaint

    Notice is given that a cross-complaint has been filed with the 
Federal Maritime Commission (``Commission'') by Greenwest Activewear, 
Inc. (``Cross-Complainant'') against K.E.I. Enterprise dba KEI Logix 
(``KEI Logix'') and Great White Fleet, Ltd. (``Great White'') 
(collectively, ``Cross-Respondents'') in this proceeding noticed at 72 
FR 32,666. Cross-Complainant alleges that Cross-Respondents violated 
the Shipping Act of 1984 by failing to establish, observe and enforce 
just and reasonable practices in connection with its shipments of 
fabric to Guatemala. 46 U.S.C. 41102(c). Cross-Complainant is demanding 
that Cross-Respondents pay its claim of $152,152.90 for loss of cargo 
plus attorneys fees. In the alternative, Cross-Complainant asks that 
its request for damages be offset ``by the amount of freight charges 
claimed by KEI Logix less the amount of KEI Logix invoice relative to 
the lost shipment * * * and the difference paid to them.''
    Cross-Complainant asserts that it booked the transport of fabric in 
August 2006 with KEI Logix from Port Hueneme, California, to 
Villanueva, Guatemala. KEI Logix and Great White issued separate bills 
of lading as through bills to the aforementioned ports in California 
and Guatemala. Great White issued its bill of lading depicting KEI 
Logix as the shipper. Cross-Complainant alleges that the cargo was 
stolen while in transit by an inland carrier in Guatemala booked by 
Great White. In September 2006, Cross-Complainant filed its claim of 
$152,152.90 for the stolen cargo with KEI Logix, who then presented the 
claim to Great White for disposition.
    Cross-Complainant contends that Great White wrongfully denied the 
claim by evoking force majeure pursuant to an inland bill of lading 
that Cross-Complainant believes was never produced. Moreover, Cross-
Complainant asserts that Great White failed to prove that the goods 
were released in Guatemala with the customary escort and security 
practices required of all carriers for that particular area.
    Cross-Complainant alleges that it negotiated the disposition of its 
claim directly with KEI Logix and continued to do business with the 
company. Cross-Complainant contends that in May 2007, KEI Logix not 
only breached the agreement reached by the parties for the disposition 
of the claim, but also refused to deliver three containers in transit 
unless Cross-Complainant immediately paid the full amount of its 
outstanding invoices. Cross-Complainant alleges that KEI Logix did this 
to recoup the money that it owed to Cross-Complainant in their 
agreement. Accordingly, to mitigate its prospective damages 
attributable to KEI Logix's breach, Cross-Complainant asserts that it 
had no alternative but to tender three checks totaling $101,019.08 for 
the release of its containers, then to place a stop-payment order on 
them. Cross-Complainant claims that it offered to reissue the checks 
and to pay $2,500 in attorneys fees, but KEI Logix declined the offer.
    Cross-Complainant requests that the Commission require Cross-
Respondents to pay reparations of $152,152.90 for the stolen cargo plus 
attorneys fees, and to mitigate damages relative to freight charges. 
Additionally, Cross-Complainant requests that any hearings be conducted 
in either Washington, DC at the Federal Maritime Commission or in Los 
Angeles, California.


Bryant L. VanBrakle,
Secretary.
[FR Doc. 07-3692 Filed 7-27-07; 8:45 am]
BILLING CODE 6730-01-P