Cormorant Bulk-Carriers v. Canficorp (Overseas Projects) Ltd. (The Akmi) - Fed. Ct. (Trial Div.) (Walsh J.) - 17 June 1982

Shippers agree to indemnify carrier against loss resulting from deliberate misrepresentation on bill of lading - Whether carrier entitled to recover under indemnity

The plaintiff (disponent) owners of the Akmi agreed with the defendant shippers to carry a quantity of asbestos from Quebec City to Kuwait. At the time, the plaintiff insisted that the goods must not be “in transit” goods being shipped to a destination beyond Kuwait. The plaintiffs knew that the practice at Kuwait was that vessels containing cargo consigned to Kuwait as a final destination were given priority in docking at the principal port of Shuwaikh. Transit cargo, on the other hand, was normally forced to discharge at Shuaiba, involving delays while permission for such a deviation was obtained. It also took longer to discharge at Shuaiba.