S.S. Sabine Howaldt, a small cargo vessel, was chartered for a voyage from Antwerp, Belgium, to Wilmington, Delaware. The ship was carrying steel products consigned to the plaintiff. The cargo was in good condition when loaded at Antwerp. On arrival at the port of destination in the United States, however, the steel showed extensive saltwater damage from rust and pitting. The Sabine Howaldt encountered extremely heavy weather on the Atlantic. Water penetrated the ventilators and damaged the cargo. The carrier argued that the damage was caused solely by a peril of the sea and that the ship was seaworthy. The trial court found that the ship was unseaworthy due to the negligence of the defendant and that the winds and seas that the vessel encountered did not constitute a peril of the sea. The carrier appealed.
1. What is a "peril of the sea"? Why do you think maritime law relieves a carrier from liability for damages resulting from a "peril of the sea"?
2. Describe the sea and weather conditions here and explain whether they amounted to an exculpatory peril of the sea.
3. If an insurance company pays a claimant for goods damaged during ocean transit, may the insurance company bring the action against the carrier under COGSA?