McMURDO EXPORT CORPORATION, LTD. v. OVERSEAS TOWAGE & SALVAGE CO., LTD.

(1948) 82 Ll.L.Rep. 488

KING'S BENCH DIVISION.

Before Mr. Justice Morris.

Ship - Conversion - Towage contract - Breach-Sale of landing craft by plaintiffs to J. & L. (Portuguese company), delivery to be made at Lisbon-Plaintiffs aware that craft would be resold by J. & L. to Portuguese syndicate - Credit up to £5000 made available to plaintiffs by syndicate-Balance of purchase price, cost of delivery, etc., to be provided by bill drawn upon J. & L., bill to be accepted against delivery of bill of lading-Arrangements made by P. & M. (acting for plaintiffs) with defendants, whereby defendants agreed to tow craft from Harwich to Lisbon- Towage instructions given by defendants to their tugmaster - Bills of lading signed by tugmaster, at request of plaintiffs' Harwich agents, acknowledging receipt of craft - Defendants unaware at time towage contract entered into that tugmaster would be required to sign bills of lading - Whether request to sign bills of lading should have indicated to tugmaster that original towage contract was being varied and that craft was only to be handed over to J. & L. upon surrender of bill of lading-Craft handed over by tugmaster to J. & L. upon arrival at Lisbon, without surrender of bill of lading - Action brought by plaintiffs against defendants alleging conversion and claiming balance of sum outstanding from J. & L.