Seven Seas Transportation Ltd. v. Pacifico Union Marina Corpn. (The Oceanic Amity and Satya Kailash) - Court of Appeal (Oliver and Robert Goff L.JJ.) - 7 February 1984

Meaning of “loss or damage” where COGSA incorporated in charterparty - “Errors of navigation” does not cover negligence

The vessel Satya Kailash , owned by Seven Seas, had brought a cargo of grain from the U.S. to India. In order to lighten Satya Kailash before entering the discharging port, Seven Seas chartered another vessel - the Oceanic Amity - on the NYPE form expressly for the lightening operation. During this operation damage was caused to the Satya Kailash by the negligent navigation of those onboard Oceanic Amity . The Oceanic Amity charterparty contained the U.S.A. Clause Paramount. The issues were (1) whether U.S. COGSA was effectively incorporated in the charterparty; (2) whether its effect was confined to voyages to or from U.S. ports only; (3) whether the damage to Satya Kailash was loss or damage within section 4(2) of COGSA; (4) whether the owners of Oceanic Amity were exempted from liability for the damage to Satya Kailash by reason of the exception of errors of navigation in clause 16 of the charterparty.