MILTEX INDUSTRIES LTD. AND ANOTHER v. MODERN CENTURY FORWARDING LTD. AND ANOTHER

MILTEX INDUSTRIES LTD. AND ANOTHER v. MODERN CENTURY FORWARDING LTD. AND ANOTHER

Court found Transocean was a non‑trading shell incapable of contracting and the agency arrangements were fictitious; Sonu's International contracted with Modern Century as principal without notice of any exemption clauses; Modern Century breached by release of goods and is liable to plaintiff; standard terms were not incorporated so exemption clauses cannot be relied upon; accordingly judgment for plaintiff against Modern Century for declared sums and claim against Wide Sky dismissed.

Citation
MILTEX INDUSTRIES LTD. AND ANOTHER v. MODERN CENTURY FORWARDING LTD. AND ANOTHER
Parties
1st Plaintiff: Miltex Industries Limited; 2nd Plaintiff: Ashok Kumar Fabiani trading as Sonu's International; 1st Defendant: Modern Century Forwarding Limited; 2nd Defendant: Wide Sky Shipping Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
29 May 2000
Case Number
HCA6298/1995
Procedural Posture
Contract (carriage of Goods) / Trial Judgment (court of First Instance)
Outcome
Judgment for 2nd plaintiff against 1st defendant; claim against 2nd defendant dismissed.
Legal Topics
Bills of Lading, Freight Forwarding, Agency and Disclosed Principal, Incorporation of Standard Terms, Conversion/detention, Damages
Source Language
EN
Contract Maritime Law Agency Tort Bills of Lading Freight Forwarding Agency and Disclosed Principal Incorporation of Standard Terms +2 more

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Parties

Miltex Industries Limited

1st Plaintiff

Ashok Kumar Fabiani trading as Sonu's International

2nd Plaintiff

Modern Century Forwarding Limited

1st Defendant

Wide Sky Shipping Limited

2nd Defendant

Procedural Posture

Contract (carriage of Goods) / Trial Judgment (court of First Instance)

Legal Issues

  1. 1 Whether plaintiff contracted with Modern Century and/or Wide Sky as principals or whether those entities were agents for a disclosed principal (Transocean)
  2. 2 If Modern Century and/or Wide Sky were principals, whether they breached the contract causing recoverable loss and whether liability was limited by exemption clauses
  3. 3 Whether standard terms (FBDR) were incorporated into the contract by notice

Ratio Decidendi

Court found Transocean was a non‑trading shell incapable of contracting and the agency arrangements were fictitious; Sonu's International contracted with Modern Century as principal without notice of any exemption clauses; Modern Century breached by release of goods and is liable to plaintiff; standard terms were not incorporated so exemption clauses cannot be relied upon; accordingly judgment for plaintiff against Modern Century for declared sums and claim against Wide Sky dismissed.

Court Disposition

Judgment for 2nd plaintiff against 1st defendant; claim against 2nd defendant dismissed.

Orders

  • Judgment for the second plaintiff against the first defendant in the sum of US$181,165
  • Interest at 10% per annum from 1 March 1995 amounting to US$95,000 (total US$276,165)