Priminds Shipping (HK) Co Ltd v Noble Chartering Inc [2020] EWHC 127 (Comm) (31 January 2020)

Priminds Shipping (HK) Co Ltd v Noble Chartering Inc [2020] EWHC 127 (Comm) (31 January 2020)

Presenting a draft bill of lading for signature with a statement as to apparent good order and condition is an invitation to the Master to make his own assessment, not a representation or warranty by the shipper or charterer. The bill of lading was not inaccurate as a matter of law because the defects were not reasonably visible to the Master or agents at loading. No implied indemnity or warranty arises under the Hague Rules or common law for statements as to apparent condition.

Citation
[2020] EWHC 127 (Comm)
Parties
Claimant: PRIMINDS SHIPPING (HK) CO LTD; Defendant: NOBLE CHARTERING INC
Jurisdiction
England and Wales
Judgment Date
31 January 2020
Procedural Posture
Arbitration Appeal Under S.69 Arbitration Act 1996 / Judgment on Appeal
Outcome
Appeal allowed; Arbitrator's Award set aside.
Legal Topics
Bills of Lading, Implied Indemnity, Hague Rules, Charterparty, Representation and Warranty
Shipping Arbitration Commercial Law Bills of Lading Implied Indemnity Hague Rules Charterparty Representation and Warranty

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Parties

PRIMINDS SHIPPING (HK) CO LTD

Claimant

NOBLE CHARTERING INC

Defendant

Procedural Posture

Arbitration Appeal Under S.69 Arbitration Act 1996 / Judgment on Appeal

Legal Issues

  1. 1 Whether 'Clean on Board' and 'apparent good order and condition' in a bill of lading constitute a representation or warranty by shipper/charterer or an invitation to the Master to make a factual assessment
  2. 2 Whether the bill of lading was inaccurate as a matter of law given the facts found by the Arbitrator
  3. 3 Whether the claimant is obliged to indemnify the defendant for consequences of any inaccuracy in the bill of lading, either by implied indemnity or implied contractual warranty

Ratio Decidendi

Presenting a draft bill of lading for signature with a statement as to apparent good order and condition is an invitation to the Master to make his own assessment, not a representation or warranty by the shipper or charterer. The bill of lading was not inaccurate as a matter of law because the defects were not reasonably visible to the Master or agents at loading. No implied indemnity or warranty arises under the Hague Rules or common law for statements as to apparent condition.

Court Disposition

Appeal allowed; Arbitrator's Award set aside.

Orders

  • Claimant not liable to indemnify defendant for settlement with Shipowner.
  • No implied indemnity or warranty arises for statements as to apparent condition in bill of lading.