Trafigura Beheer BV & Anor v Mediterranean Shipping Company SA

Trafigura Beheer BV & Anor v Mediterranean Shipping Company SA

The Hague-Visby Rules apply to the bill of lading contract as a matter of contract, not by force of law, and do not apply to the post-discharge period. The shipowner cannot limit liability for conversion under the bill of lading terms for acts post-discharge. The proper measure of damages is the value of the cargo at the date of judgment, not at conversion, and consequential losses are only recoverable if reasonably foreseeable; hedging losses are not recoverable, but litigation costs in China are.

Parties
Claimant: Trafigura Beheer BV; Claimant: HMC Company Limited; Defendant: Mediterranean Shipping Company SA
Jurisdiction
England and Wales
Judgment Date
26 April 2007
Procedural Posture
Commercial Shipping/conversion Claim / Judgment After Trial
Outcome
Judgment for the claimants
Legal Topics
Conversion, Bills of Lading, Limitation of Liability, Damages, Hague Visby Rules, Hedging Losses
Commercial Law Shipping Law Tort Law Conversion Bills of Lading Limitation of Liability Damages Hague Visby Rules +1 more

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Parties

Trafigura Beheer BV

Claimant

HMC Company Limited

Claimant

Mediterranean Shipping Company SA

Defendant

Procedural Posture

Commercial Shipping/conversion Claim / Judgment After Trial

Legal Issues

  1. 1 Whether the Hague or Hague-Visby Rules apply to the bill of lading contract and to the post-discharge period
  2. 2 Whether the shipowner can limit liability for conversion under the bill of lading or the Rules
  3. 3 Proper measure of damages for conversion, including date of valuation and recoverability of hedging losses

Ratio Decidendi

The Hague-Visby Rules apply to the bill of lading contract as a matter of contract, not by force of law, and do not apply to the post-discharge period. The shipowner cannot limit liability for conversion under the bill of lading terms for acts post-discharge. The proper measure of damages is the value of the cargo at the date of judgment, not at conversion, and consequential losses are only recoverable if reasonably foreseeable; hedging losses are not recoverable, but litigation costs in China are.

Court Disposition

Judgment for the claimants

Orders

  • Defendant to pay the value of the cargo as at the date of judgment to the claimants if cargo is not delivered up
  • Defendant to pay claimants' litigation costs in China (HK$678,270.46)