A.O. SMITH ELECTRICAL PRODUCTS (CHANGZHOU) CO LTD AND OTHERS v. BLUE ANCHOR LINE AND OTHERS

A.O. SMITH ELECTRICAL PRODUCTS (CHANGZHOU) CO LTD AND OTHERS v. BLUE ANCHOR LINE AND OTHERS

The LOU constituted submission to Hong Kong jurisdiction and procedural law only; the Waybills, read as a whole, expressly make carriage involving US ports subject to US COGSA (cls.7(2) and 26(2)), thereby excluding the PRC Maritime Code in that situation; consequently US COGSA limits apply to these carriages. However, had PRC law been compulsorily applicable the PRC Maritime Code would override any lower US COGSA limit.

Citation
A.O. SMITH ELECTRICAL PRODUCTS (CHANGZHOU) CO LTD AND OTHERS v. BLUE ANCHOR LINE AND OTHERS
Parties
1st Plaintiff: A.O. SMITH ELECTRICAL PRODUCTS (CHANGZHOU) CO. LTD; 2nd Plaintiff: A.O. SMITH ELECTRICAL PRODUCTS CO.; 1st Defendant: BLUE ANCHOR LINE; 2nd Defendant: TRANSPAC CONTAINER SYSTEM CO. LTD; 3rd Defendant: CHINA SHIPPING CONTAINER LINES CO. LTD
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
18 November 2011
Case Number
HCAJ198/2009
Procedural Posture
Admiralty Action / Preliminary Issues Trial (judgment)
Outcome
US COGSA liability limits apply; the LOU did not make Hong Kong substantive law applicable; Hong Kong procedural law governs forum and procedure only.
Legal Topics
Choice of Law, Limitation of Liability, Bill of Lading/sea Waybill, Carriage of Goods by Sea, Forum Jurisdiction, Mandatory Overriding Law
Source Language
EN
Maritime Law Admiralty Private International Law Contract Law Choice of Law Limitation of Liability Bill of Lading/sea Waybill Carriage of Goods by Sea +2 more

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Parties

A.O. SMITH ELECTRICAL PRODUCTS (CHANGZHOU) CO. LTD

1st Plaintiff

A.O. SMITH ELECTRICAL PRODUCTS CO.

2nd Plaintiff

BLUE ANCHOR LINE

1st Defendant

TRANSPAC CONTAINER SYSTEM CO. LTD

2nd Defendant

CHINA SHIPPING CONTAINER LINES CO. LTD

3rd Defendant

Procedural Posture

Admiralty Action / Preliminary Issues Trial (judgment)

Legal Issues

  1. 1 Whether the Letter of Undertaking rendered Hong Kong substantive law applicable
  2. 2 Whether US COGSA or Chapter IV of the PRC Maritime Code limits apply to the Waybills
  3. 3 Whether PRC law would nullify contractual incorporation of US COGSA limits

Ratio Decidendi

The LOU constituted submission to Hong Kong jurisdiction and procedural law only; the Waybills, read as a whole, expressly make carriage involving US ports subject to US COGSA (cls.7(2) and 26(2)), thereby excluding the PRC Maritime Code in that situation; consequently US COGSA limits apply to these carriages. However, had PRC law been compulsorily applicable the PRC Maritime Code would override any lower US COGSA limit.

Court Disposition

US COGSA liability limits apply; the LOU did not make Hong Kong substantive law applicable; Hong Kong procedural law governs forum and procedure only.

Orders

  • US COGSA limits to apply to the shipments covered by the Waybills
  • Proceed to hearing on costs and consequential orders