Yemgas Fzco & Ors v Superior Pescadores S.A. Panama
2014
COMMERCIAL COURT
United Kingdom
CORAM
- THE HON. MR JUSTICE MALES
Areas of Law
- Maritime Law
- Contract Law
2014
COMMERCIAL COURT
United Kingdom
CORAM
AI Generated Summary
The case involves a cargo claim arising from damage to equipment on MV “SUPERIOR PESCADORES” during its voyage from Antwerp to Yemen. The primary issues were which rules, Hague or Hague-Visby, were incorporated via a clause paramount in the bills of lading, whether the claimants could use higher limits from the Hague Rules, and the relevant date for converting gold value under the Hague Rules. The court held that the Hague Rules were incorporated but were largely ineffective due to the compulsory application of the Hague-Visby Rules. The applicable package limitation was the Hague-Visby limit already paid by the owners. The relevant date for converting the gold value is the date of delivery of the damaged goods.
Judgment
Mr Justice Males :
INTRODUCTION
This is a fairly typical cargo claim which has given rise to three issues concerning the effect of a clause paramount in a bill of lading and the package limitation provisions of the Hague and Hague-Visby Rules. The first issue is as to the meaning in a clause paramount of the phrase “the Hague Rules … as enacted in the country of shipment”. What is the position if the country of shipment has enacted the Hague-Visby Rules? The second issue concerns Article IV Rule 5(g) of the Hague-Visby Rules which permits the parties to the bill of lading contract to agree a higher limitation figure than that provided for by paragraph (a) of that Rule. In short, what is the position when the parties’ contract provides for the application of the Hague Rules which will sometimes but not always result in a higher package limitation amount than the compulsorily applicable Hague-Visby Rules? The third issue is whether, under Article IV Rule 5 and Article IX of the original Hague Rules, the time for converting the gold value into money is the date of judgment or some other earlier time.
These issues arise on an application for summary judgment by the claimant cargo interests against the owners of the MV “SUPERIOR PESCADORES”. However, the parties agreed that they are all issues of law which do not depend on any disputed issues of fact and can therefore be finally decided one way or the other.
THE FACTS
The claim arises out of damage to machinery and equipment intended for use in the construction of a liquid natural gas facility in Yemen. This cargo was loaded on the vessel at the port of Antwerp, Belgium in early January 2008.
On 11 January 2008, the owners issued six bills of lading numbered ABA01 to ABA06 acknowledging shipment of the cargo on board the vessel in apparent good order and condition for carriage from Antwerp to Balhaf in Yemen. Each of the bills was for a number of packages and contained on its reverse side a “Paramount Clause” in the following familiar terms:
" 2. Paramount Clause
The Hague Rules contained in the International Convention for the Unification of certain rules relating to Bills of Lading, dated Brussels the 25 th August 1924 as enacted in the country of shipment shall apply to this contract. When no such enactment is in force in the country of shipment, the corresponding legislation of the country of destination shall apply, but in respect of shipments to which no such enactments are compulsorily