The Sanko Steamship Co. Ltd & Anor v Sumitomo Australia Ltd & Ors [1995] FCA 962

Procedural Posture

Admiralty/commercial Shipping Claim and Cross Claim / Judgment After Trial

Legal Issues

1. 1 ['Whether Sanko and Grandslam were liable for the loss of cargo due to unseaworthiness and lack of due diligence' 'Whether the United States Carriage of Goods by Sea Act 1936 and its Hague Rules were incorporated into the charterparty and/or bills of lading' 'Whether Grandslam was entitled to immunities and limitation of liability under the 1957 Convention' 'Whether Sanko was entitled to recover the balance of freight under the charterparty']

Ratio Decidendi

Sanko and Grandslam were liable for Sumitomo’s loss of cargo, as both the lack of corrected charts and incompetent crew rendered the vessel unseaworthy at the commencement of the voyage. The unseaworthiness was causative of the loss and was due to want of due diligence in management and crewing by the plaintiffs (acting through their agents). Therefore, the immunity for navigational faults under the United States Carriage of Goods by Sea Act 1936 (as incorporated into the contract) was lost. The plaintiffs failed to establish any entitlement to limitation of liability under the 1957 Convention, as they did not negate their actual fault or privity. Sanko’s claim for balance of freight also...

Court Disposition

Judgment for Sumitomo on plaintiffs' claim and on their cross-claim; judgment against Sanko’s claim for freight.

Orders

• ['Judgment for Sumitomo on the cross-claim in the sum of $8,900,000 plus interest;' "Plaintiffs' claim for limitation of liability and for balance freight dismissed;" 'Directions for parties to bring short minutes of order on final relief, interest, and costs.']