Regal Scout No. 1 - Fed.Ct. (Walsh J.) - 12 April 1983

Bill of Lading exclusive jurisdiction clause invalid

The vessel was time chartered on New York Produce form providing for London arbitration. The vessel was chartered for a voyage from Vancouver to Japan for the carriage of a cargo of grain on Baltimore Form C terms providing for Tokyo arbitration. The standard form provisions of the voyage charterparty pertaining to the incorporation of some of the terms (and in particular the arbitration clause) into bills of lading issued had been struck out. The bill of lading issued by the time charterer as agent for the vessel’s owner was endorsed to incorporate all the terms, conditions and exceptions of the relative charterparty and contained a Japanese forum clause for the resolution of disputes by the Tokyo District Court according to Japanese law. During the course of the carriage the cargo grain was damaged by salt water. The owners of the cargo brought action against the owner of the vessel only in the Federal Court of Canada. The vessel was of Greek flag and owned by a Panamanian company. The shipper was a Canadian company. The voyage charterer and the consignee were related companies. The consignee was Japanese.