News Alert
GKG Law Wins Circuit Court Decision Affirming Summary Judgment in In re Containership Co.

October 13, 2020

In a case spanning more than nine years and involving claims of more than $8 million, GKG Law’s Litigation Group recently prevailed on behalf of more than 20 clients in the U.S. Court of Appeals for the Second Circuit. The Court affirmed the U.S. District Court for the Southern District of New York’s grant of summary judgment against The Containership Company (TCC). GKG Law principals Brendan Collins and Edward D. Greenberg served as lead counsel for the firm's clients in this matter.

“We are extremely pleased with this result, and proud of our clients who remained strong and resolute throughout the tenure of this long-term matter. We worked hard to achieve this success and we are grateful to our clients for trusting us with such important work,” said Collins.

Litigation began in 2011 after TCC, a steamship line, filed for bankruptcy in Denmark and then filed 77 adversary proceedings against Non-Vessel Operating Common Carriers (NVOCCs) and beneficial cargo owners in the U.S. Bankruptcy Court for the Southern District of New York. The adversary proceedings alleged breach of pre-petition service contracts and sought liquidated damages plus interest and attorneys’ fees. Essentially, the TCC bankruptcy trustee sought to collect liquidated damages due to the failure of those parties to satisfy their respective minimum contract requirements.  In 2016, the bankruptcy court, relying on pleadings that GKG and other law firms filed, granted summary judgment against TCC, which was then affirmed by the District Court in 2019.

Throughout the course of litigation, many defendants opted to settle, but GKG Law encouraged its clients to continue litigation based on the strength of their defenses. In its October 8, 2020 decision, the Second Circuit affirmed the District Court’s finding that TCC failed to provide service and accordingly itself breached the relevant service contracts. As a result, GKG Law’s clients are not liable to TCC for any damages.