Cosco Container Lines Co Ltd v Unity Int'l Cargo Pty Ltd [2012] NSWDC 122

Cosco Container Lines Co Ltd v Unity Int'l Cargo Pty Ltd [2012] NSWDC 122

The defendant signed and was bound by the ImportNet Agreement, including clause 6 and the incorporated Equipment Handover Agreement. The defendant's construction that it was not liable as a merchant would leave the agreement with no operation and was rejected. The post-free-time charges were not payable as damages for breach but were a separate agreed contractual hire obligation until return of the containers, so the provisions did not operate as a penalty. The plaintiffs were therefore entitled to recover the claimed charges.

Jurisdiction
Australia
Judgment Date
29 March 2012
Procedural Posture
Claim for Container Charges Under a Commercial Shipping Container Use Agreement / Principal Judgment After Hearing
Outcome
Verdict for the Plaintiffs in the amount claimed, $63,712.00, with interest at prescribed rates.
Legal Topics
['import Net Agreement' 'equipment Handover Agreement' 'container Demurrage Charges' 'delivery Orders' 'penalty Clauses' 'liquidated Damages' 'interest']
['contract Law' 'shipping and Maritime Law' 'civil Procedure'] ['import Net Agreement' 'equipment Handover Agreement' 'container Demurrage Charges' 'delivery Orders' 'penalty Clauses' 'liquidated Damages' 'interest']

Case Brief

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Procedural Posture

Claim for Container Charges Under a Commercial Shipping Container Use Agreement / Principal Judgment After Hearing

Legal Issues

  1. 1 ["Whether the defendant was liable to pay the plaintiffs' charges under the ImportNet Agreement." 'If necessary, whether the defendant was liable to the plaintiffs as the named consignee of the seaway bills.' 'If necessary, whether each delivery order was a separate implied contract based on Brandt v Liverpool.' 'Whether the contractual provisions requiring payment of charges after expiry of free time were unenforceable as a penalty.']

Ratio Decidendi

The defendant signed and was bound by the ImportNet Agreement, including clause 6 and the incorporated Equipment Handover Agreement. The defendant's construction that it was not liable as a merchant would leave the agreement with no operation and was rejected. The post-free-time charges were not payable as damages for breach but were a separate agreed contractual hire obligation until return of the containers, so the provisions did not operate as a penalty. The plaintiffs were therefore entitled to recover the claimed charges.

Court Disposition

Verdict for the Plaintiffs in the amount claimed, $63,712.00, with interest at prescribed rates.

Orders

  • ['Verdict for the Plaintiffs in the amount claimed, $63,712.00.' 'The plaintiffs are entitled to an award of interest under the Civil Procedure Act (2005) and the Uniform Civil Procedure Rules calculated at the prescribed rates.' 'The Court will hear the parties on costs.']