MEDITERRANEAN SHIPPING COMPANY SA V TRAFIGURA BEHEER BV & ANOR

[2007] EWCA Civ 794, Court of Appeal (Tuckey, Longmore, Lloyd LJJ), 27 July 2007

Bills of lading – Clause paramount – Hague Rules – Hague Visby Rules – Whether Hague Rules or Hague Visby Rules applied – Whether compulsorily applicable – Tackle to tackle – Assessment of damages

Fraudsters had presented a forged bill of lading to shipowners and paid customs duty to receive the required stamp. The cargo was released and committed to a customs warehouse for collection. Cargo owners then presented the real bill of lading and shipowners were able to stop the release of the cargo to the fraudsters. Cargo owners, who had the real bill of lading but not the customs duty stamp, were unable to collect the cargo and sued shipowners. Held that on a true interpretation of the contract, the Rules were not compulsorily applicable. The Hague Rules (not the Hague-Visby Rules) were applicable as a matter of contract. The parties had not intended the Rules to apply after discharge. The shipowners were in breach of their obligation to deliver only against presentation of the original bill of lading and the clauses in the bill were not effective to limit their liability in that respect.