A “default decision” amounting to reparations of $944 655, with interest, has been awarded against Mediterranean Shipping Company by a US Judge in litigation launched some 18 months ago by Pennsylvania furniture firm, MCS Industries.
According to news out of London, Judge Erin Wirth ruled in favour of the manufacturer after the Geneva-headquartered line apparently failed to present the necessary documents in a case first reported to America’s Federal Maritime Commission (FMC) in July 2021.
However, it has also been reported that MSC tried in vain to get the necessary approval from a Swiss court to have the documents released for its defence during the matter’s “discovery phase”.
Nevertheless, Judge Wirth said MSC had been warned on several occasions that failure to submit the required documents could result in a default ruling against it.
In its initial complaint to the FMC, MCS Industries alleged that MSC and Chinese carrier, Cosco Shipping Lines, had worked together to inflate revenue by forcing the manufacturer to make use of more expensive spot allocation slots.
The manufacturer said this was despite contractual obligations that the two lines had with MCS Industries.
In addition, claims were made that collusion around blank-sailing scheduled services had led to increased spot rates.
Cosco has apparently settled with MCS Industries in the interim.
