D/S A/S Idaho v. Peninsular and Oriental Steam Navigation Co. (The Strathnewton) - Court of Appeal (Sir John Donaldson M.R., Kerr L.J. & Sir Sebag Shaw) - 14 December 1982

Inter Club New York Produce Agreement overrides Hague Rules time bar

The issue in this case was whether the one-year time limit under Article III, rule 6, of the Hague Rules applied where the charterparty also incorporated the Inter Club New York Produce Agreement. The Inter Club Agreement was a memorandum of agreement between P & I Clubs as to apportionment of liability between charterers and owners for cargo claims arising out of the NYPE charter. It was a condition precedent of the Agreement that claims by bill of lading holders should first have been “properly settled or compromised”. The claims were then apportioned 100% to the shipowners for loss of or damage to cargo due to unseaworthiness; 100% to charterers for bad stowage or handling; and 50% to owners and 50% to charterers for short delivery.