Mercedes Benz Australia Pty. Ltd. v. Scancarriers A.S. & Anr. (The Tombarra) - N.S.W. Sup.Ct. (Rogers J.) - 25 November 1981

Whether exemption clause in bill of lading protects sub-contracted carrier - Effect of Hague Rules

The plaintiffs were the owners and consignees of cargo damaged by fire onboard and the vessel Tombarra during carriage between Europe and Australia. The plaintiffs sued inter alios the owners of the Tombarra alleging (a) that the goods were damaged whilst in the care and custody of the shipowners for reward and (b) that the damage arose from the shipowners’ negligence. The shipowners applied for a stay of proceedings on the ground that they were protected by clause 4(2) of the relevant bills of lading. These bills had been issued by the operator of a joint shipping service pursuant to an agreement between a number of shipowners who contributed designated vessels, of which the Tombarra was one, to a common pool.