Colgate Palmolive Co. v. S/S Dart Canada; Dart Container Line Ltd.; Global Terminal & Container Services Inc. and anr (The Dart Canada) - U.S. Ct. of Appeals (2nd Circuit) (Lumbard, Oakes and Van Graafeiland C.JJ.) - 14 December 1983

Warehouseman’s dock receipts incorporating COGSA provisions - Whether limitation of liability valid

On 22 and 27 August 1979 Colgate delivered 22 drums of spearmint oil to Global’s terminal in Jersey City, New Jersey. The oil was to be shipped to Le Havre. Global had contracted with Dart to store the goods until it loaded them abroad Dart ships. Sixteen of the drums subsequently disappeared without trace. Global had issued dock receipts showing that it had received all 22 drums. These receipts expressly incorporated all terms of the bills of lading issued by Dart, which had all been time stamped on or before 22 August 1979. The bills of lading each contained a provision extending the application of COGSA to the period “before loading” and “after discharge”. One of COGSA’s provisions limits the carrier’s liability to $500 per package, unless otherwise agreed.