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Lloyd's Maritime Law Newsletter

Kukje Hwajae Insurance Co Ltd v The M/V "Hyundai Liberty" - US Court of Appeals (9th Circuit)(Beezer, Tashima and Graber Ct JJ) - 26 June 2002

Carriage of goods by sea - Whether shipper contracting with NVOCC bound by forum-selection clause in bill of lading issued by shipowner to NVOCC - Package limitation - Whether shipper given "fair opportunity" to opt for higher limits by paying higher charges

The plaintiff was the subrogated insurer of Korean shippers ("Doosan"). Doosan contracted with Glory Express Inc, a non-vessel operating common carried (NVOCC) to arrange for the carriage of the cargo from Korea to Los Angeles on the vessel Hyundai Liberty. Glory Express issued bills of lading ("the Glory Express bills of lading") to cover the shipment, identifying Doosan as the shipper and the Hyundai Liberty as the "Exporting Carrier". Glory Express in turn contracted with Hyundai Merchant Marine Co ("Hyundai") to ship the goods on their vessel Hyundai Liberty. It did so by acting through Streamline Shippers Association. ("Streamline"). Hyundai issued a bill of lading ("the Hyundai bill of lading") identifying Streamline as the shipper and containing a forum-selection clause in favour of the Seoul Civil District Court in Korea.

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