In Regal-Beloit, K-Line issued a through bill of lading for carriage of goods from China to the United States, by sea and by rail. The bill of lading included a Tokyo forum selection clause, under which a claimant would have to file any lawsuits against K-Line in Tokyo, Japan. Under the bill of lading’s “Himalaya clause,” K-Line’s subcontractors could also enforce the forum selection clause. The bill of lading also extended the application of the Carriage of Goods by Sea Act (“COGSA”) to cover the inland transportation. K-Line subcontracted the rail transportation to Union Pacific. The plaintiff cargo interests sued for damages after Union Pacific’s train derailed in Oklahoma. The District Court granted the defendants’ motion to dismiss based on the Tokyo forum selection clause. The plaintiff filed an appeal to the Ninth Circuit of the District Court’s order.
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