Obestain Inc. v. National Mineral Development Corporation (The Sanex Act) - Q.B.D. (Com.Ct.) (Hobhouse J.) - 26 January 1987

Whether owners of damaged cargo who received full price from sub-purchasers entitled to recover substantial damages from carrier

When the vessel arrived at the discharge port, her cargo was found to be damaged due to the owners’ breach of charter. The charterparty named C. as the shippers. C. were also named as shippers in the single bill of lading that was issued. N. bought the cargo from the shippers under an f.o.b. contract which provided for the title of the goods and risks of loss to pass to N. upon the cargo being loaded on board the vessel. Payment was by documentary letter of credit payable against production of the usual commercial documents including bills of lading and invoices.