Hallmark, Insurance Companies Sue Swiss Shipping Company for Losing Cargo at Sea

Hallmark Cards, along with its insurer, Continental Insurance Company, is suing Swiss-based shipping firm MSC Mediterranean Shipping Company in a New York district court for damaging two containers of Hallmark merchandise in transit to Asia. In its Feb. 15 complaint at the District Court for the Southern District of New York, Hallmark and Continental said that MSC was negligent in its failure to deliver the cargo, thereby breaching its "statutory, contractual, and/or common law duties and obligations" as a carrier of the merchandise (Continental Insurance Company v. MSC Mediterranean Shipping Company, S.D.N.Y. #22-1272).

Hallmark and MSC entered into an agreement in January 2021 to ship two containers, one containing plush toys and the other containing paper greeting cards, from Kansas City to Yantian, China, and Haiphong, Vietnam, respectively. On Feb. 17, 2021, however, many containers fell into the North Pacific Ocean following a stow collapse. This collapse also damaged other containers, including the two sent by Hallmark.

The card company then submitted an insurance claim with Continental. The insurer fulfilled the claim, "thereby becoming subrogated to all of Hallmark’s respective rights, remedies, and claims for relief with respect to the Cargoes to the extent of its payment," the complaint said. Hallmark and Continental are now seeking $1.16 million for the amount lost from the damaged containers.

Several other companies also filed suit against MSC, including RLI Insurance Company, Liberty Mutual Insurance Company, Affiliated FM Insurance Company and Falvey Cargo Underwriting, Coast Underwriters. All of the cases' complaints concern MSC's loss of the cargo containers in the North Pacific Ocean.