El Greco (Australia) Pty Ltd and Anr v Mediterranean Shipping Co SA (Federal Ct of Australia (Black CJ, Beaumont and Allsop JJ) - 10 August 2004)

Carriage of goods by sea - Hague-Visby Rules - Package limitation - Whether number of packages enumerated on bill of lading

The plaintiffs were the buyer and seller of a shipment of posters and prints stowed in a container and carried from Sydney to Piraeus under a bill of lading issued by the defendant. On arrival in Piraeus, the posters and prints were found to be heavily damaged by sea water. The cargo insurer indemnified the plaintiffs and sued the defendant exercising its right of subrogation. The cargo insurers had paid out A$883,390 and has sought to recover that amount as representing the market value of the posters and prints which had been damaged. The defendant took issue with the amount claimed and at trial, based upon the evidence given by an independent witness, the primary judge was only prepared to accept the wholesale value of the posters and prints as being A$63,570 and entered judgment in that amount in favour of the plaintiffs. In doing so, her Honour relied upon evidence as to the value of the goods in Australia, as opposed to their value in Greece.