Trans-Continental Textile Recycling Ltd v Partenreederei ms “Erato” and Others (The “Erato II” and “MSC Giovanna”) - Federal Court (Trial Div)(John A Hargrave Prothonotary) - 9 November 1995

Cargo claim under bill of lading containing exclusive jurisdiction clause - Whether action should be stayed - Whether defendant waived right to object to Canadian jurisdiction

A container of used clothing was carried overland from Vancouver to Baltimore, USA, and then carried on the vessel MSC Giovanna from Baltimore to Antwerp, where the goods were placed in a new container for onward carriage to Ghana. They arrived in Ghana short and damaged. The receivers brought proceedings against the vessel and others in Canada. The bill of lading under which the cargo was shipped provided that all claims and disputes relating to the cargo carried to or from the United States should be subject to the sole jurisdiction of the US in the US District Court, SDNY, and that US law should be applied. A P & I Club letter of undertaking was given to prevent the arrest of the vessel.