Lloyd's Maritime and Commercial Law Quarterly
Liability for incorrectly clausing bills of lading
Benjamin Parker *
The commercial value of bills of lading depends heavily on their accuracy, and effective remedies are necessary to deal with misstatements as to the condition of the cargo. Yet, until the recent decision of the High Court in
The David Agmashenebeli, little attention had been paid to the important practical and legal problems arising when the master of a vessel insists on clausing bills of lading, despite the cargo being in apparent good order and condition. This article analyses the duties owed by a sea carrier in relation to the issue and signing of bills of lading and related documents.
This article examines the duties owed by a carrier of goods by sea in relation to the issue and signing of bills of lading. It explores in particular a question of considerable importance to maritime law and practice: what legal consequences follow from the master of a vessel clausing bills of lading, even though the cargo is in apparent good order and condition? This issue recently confronted Colman, J., and was to some extent resolved by him, in The David Agmashenebeli.
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A related question, also to be discussed, is whether a carrier owes analogous duties in relation to the signing of other shipping documents which contain statements as to the condition of the cargo, such as sea waybills and mate’s receipts.
In order to set these legal issues in context, it is helpful to outline the commercial and legal functions of bills of lading and to consider the practical difficulties arising when they contain misstatements about the cargo shipped.
A. CONTEXT
The importance of bills of lading
The bill of lading remains a document of the utmost importance, in relation not only to contracts for the carriage of goods by sea but also to the international sale of goods and to the financing of such sales by letters of credit. In form, a bill of lading records that goods have been shipped on board a vessel for carriage to the port of destination and delivery to a named consignee or to his order. But its commercial and legal functions are
* Fellow and Lecturer in Law, St John’s College, Cambridge; Barrister, 7 King’s Bench Walk, Temple, London. I am grateful to Professor M.A.Clarke for his comments on an earlier draft of this article. He bears no responsibility for my errors and infelicities. Any opinions expressed herein are those of the author alone.
1. The owners of the cargo lately laden on board the ship David Agmashenebeli
v. The owners of the ship David Agmashenebeli
[2002] E.W.H.C. 104 (Comm); [2003] 1 Lloyd’s Rep. 92; [2002] 2 All E.R. (Comm) 806 (Colman, J.). References are to paragraph numbers of the judgment.
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