Baltic Shipping Company v. Joan Norma Dillon (the Mikhail Lermontov) - High Court of Australia - 10 February 1993

Passengers - Damages for Disappointment - Restitution of Fare following sinking of cruise liner

The plaintiff was a passenger on the defendant’s cruise liner “Mikhail Lermontov” which sank on 16 February, 1986 during the course of a 14-day cruise off the New Zealand Sounds. The sinking of the vessel was due to the negligent navigation of the pilot, for which the defendant accepted liability. The cruise, which commenced on 7 February 1986, was advertised in a brochure issued by Charter Travel Company Limited (“C.T.C.”), the defendant’s agent. The plaintiff paid a deposit of $100.00 on 30 October 1985 and received a booking acknowledgement. On or about 9 November 1985 she received a booking form from C.T.C. containing penalties for cancellation of the booking and which stated “Contract of carriage for travel as set out herein will be made only at the time of the issuing of tickets and will be subject to the conditions and regulations printed on the tickets”. On 6 December 1985 the plaintiff paid the balance of the fare ($2,105.00) and on 24 January 1986 she received a ticket containing terms and conditions limiting the defendant’s liability for personal injury and personal effects. On 7 February 1986 the plaintiff presented the ticket to the defendant to board the vessel.