Geofizika DD v MMB International Ltd & Anor

Geofizika DD v MMB International Ltd & Anor

The contract of carriage, as interpreted with the booking confirmation, did not permit on deck shipment unless the bills of lading were so claused, which they were not. The sellers and freight forwarders were not in breach of their obligations regarding carriage. Although the insurance provided was invalid due to a breached warranty, the sellers’ obligation was only to provide Institute Cargo Clauses (C) cover, which would not have covered the loss. Therefore, no recoverable loss was caused by the breach.

Parties
Buyer: Geofizika DD; Seller: MMB International Limited; Freight Forwarder: Greenshields Cowie & Co Ltd
Jurisdiction
England and Wales
Judgment Date
28 April 2010
Procedural Posture
Civil Appeal / Court of Appeal Judgment
Outcome
appeal allowed
Legal Topics
CIP Contracts, Carriage of Goods by Sea, Insurance Obligations, Interpretation of Contracts, Liability for Breach of Contract
Commercial Law Maritime Law Insurance Law CIP Contracts Carriage of Goods by Sea Insurance Obligations Interpretation of Contracts Liability for Breach of Contract

Case Brief

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Parties

Geofizika DD

Buyer

MMB International Limited

Seller

Greenshields Cowie & Co Ltd

Freight Forwarder

Procedural Posture

Civil Appeal / Court of Appeal Judgment

Legal Issues

  1. 1 Whether the contract of carriage permitted on deck shipment under CIP terms
  2. 2 Whether the sellers and freight forwarders breached their obligations regarding insurance
  3. 3 Whether the breach caused recoverable loss to the buyers

Ratio Decidendi

The contract of carriage, as interpreted with the booking confirmation, did not permit on deck shipment unless the bills of lading were so claused, which they were not. The sellers and freight forwarders were not in breach of their obligations regarding carriage. Although the insurance provided was invalid due to a breached warranty, the sellers’ obligation was only to provide Institute Cargo Clauses (C) cover, which would not have covered the loss. Therefore, no recoverable loss was caused by the breach.

Court Disposition

appeal allowed

Orders

  • Judgment of the lower court set aside
  • Claims against sellers and freight forwarders dismissed