SWASHPLATE PTY LTD V LIBERTY MUTUAL INSURANCE COMPANY

[2020] FCA 15, Federal Court of Australia, Chief Justice Allsop, 16 January 2020

Insurance (marine) – Goods in transit – Commencement of risk – Effect of words "From 19 May 2018 to date of arrival" – Cargo loaded in US but insured under policy issued in Australia, with 15 hours' time difference – Institute Cargo Clauses 2009

The claimant acquired a helicopter from a seller in Picayune, Mississippi, for importation into Australia. At 08:00 Picayune time on 15 May 2018 the helicopter was at Picayune awaiting transit by truck to Port of New Orleans for their onward voyage to Queensland. A container for the helicopter arrived at 15:00 18 May 2018 (Picayune time). The helicopter was dismantled and loaded, and the container departed for New Orleans at around 17:00. The helicopter was damaged during transit, the result of movement within the containers because either their temporary wheels had not been chocked in their final stowage position or there was insufficient or unsuitable strapping. Insurance was placed with the insurers by a broker. There was in place a master slip which incorporated the Institute Cargo Clauses A (2009), and the insurance applied to "risks attaching" during the period of insurance. Cover included loading and unloading, and static cover for five days up to loading. The policy excluded liability for insufficient or unsuitable packing if carried out prior to the attachment of the policy. Insurance was placed "From: 19 May 2018 To: Date of Arrival at Sunshine Coast Airport QLD". The insurers argued that the risk had attached at 00:00 on 19 May 2018 Picayune time, but that the loading had taken place the preceding day and there was no cover for insufficient or unsuitable packing before that time. The claimant argued that the stated date and time was merely an expectation of when loading would occur, that the policy was "at and from" Picayune and that cover was backdated for five days under the static cover clause as soon as loading commenced.