Priminds Shipping (HK) Co Ltd v Noble Chartering Inc

Priminds Shipping (HK) Co Ltd v Noble Chartering Inc

By presenting the draft bill of lading for signature, the shipper was only inviting the Master to make his own assessment of the apparent condition of the cargo. 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. There is no implied indemnity or warranty for statements as to apparent condition under the Hague Rules or at common law in these circumstances.

Parties
Claimant: PRIMINDS SHIPPING (HK) CO LTD; Defendant: NOBLE CHARTERING INC
Jurisdiction
England and Wales
Judgment Date
31 January 2020
Procedural Posture
Appeal Under Arbitration Act 1996 S.69 / Judgment on Appeal From Arbitral Award
Outcome
Appeal allowed; arbitral award set aside to the extent challenged.
Legal Topics
Bills of Lading, Implied Indemnity, Hague Rules, Voyage Charterparty, Apparent Condition of Cargo
Commercial Law Shipping Law Arbitration Bills of Lading Implied Indemnity Hague Rules Voyage Charterparty Apparent Condition of Cargo

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Parties

PRIMINDS SHIPPING (HK) CO LTD

Claimant

NOBLE CHARTERING INC

Defendant

Procedural Posture

Appeal Under Arbitration Act 1996 S.69 / Judgment on Appeal From Arbitral Award

Legal Issues

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

Ratio Decidendi

By presenting the draft bill of lading for signature, the shipper was only inviting the Master to make his own assessment of the apparent condition of the cargo. 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. There is no implied indemnity or warranty for statements as to apparent condition under the Hague Rules or at common law in these circumstances.

Court Disposition

Appeal allowed; arbitral award set aside to the extent challenged.

Orders

  • The claimant is not liable to indemnify the defendant for the sum paid to the Shipowner or for costs arising from the alleged inaccuracy in the bill of lading.