SUPER ALLOY (HOLDING) CO LTD AND OTHERS v. FURUKAWA LINE AND OTHERS

SUPER ALLOY (HOLDING) CO LTD AND OTHERS v. FURUKAWA LINE AND OTHERS

Judge found credible evidence that the 6th Defendant properly stuffed the goods into the container and applied a temporary seal and that the 4th Defendant never took possession and had engaged competent subcontractors; on that basis both defendants discharged the burden of proving the loss was not due to their neglect and the plaintiffs failed to prove liability; accordingly claims against the 4th and 6th Defendants were dismissed.

Citation
SUPER ALLOY (HOLDING) CO LTD AND OTHERS v. FURUKAWA LINE AND OTHERS
Parties
1st Plaintiff: SUPER ALLOY (HOLDING) CO. LTD.; 2nd Plaintiff: FUJI LEASE CO. LTD.; 3rd Plaintiff: OBNES CORPORATION; 1st Defendant: FURUKAWA LINE; 2nd Defendant: CALTEC SHIPPING LIMITED; 3rd Defendant: LEO OCEAN S.A.; 4th Defendant: FREIGHT NET INTERNATIONAL LTD.; 5th Defendant: RISETECH CONTAINER LINES LTD.; 6th Defendant: MANLITAT TRANSPORTATION LTD.; 7th Defendant: FAI SHING CONTAINER TRANSPORT CO., LTD. trading as FREIGHT CONTAINER TRANSPORTATION COMPANY; 8th Defendant: SINOWEALTH WAREHOUSE & TRANSPORTATION LIMITED; 9th Defendant: FORTUNE PIONEER DEVELOPMENT LIMITED
Court
District Court
Jurisdiction
Hong Kong
Judgment Date
19 January 2010
Case Number
DCCJ290/2002
Procedural Posture
Maritime Cargo Loss; Breach of Contract and Bailment/negligence / Trial and Judgment (district Court)
Outcome
Plaintiffs' case against the 4th and 6th Defendants dismissed
Legal Topics
Cargo Loss, Chain of Forwarders, Possession, Burden of Proof, Subcontracting, Costs
Source Language
EN
Maritime Law Contract Tort Bailment Carrier Liability Cargo Loss Chain of Forwarders Possession +3 more

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Parties

SUPER ALLOY (HOLDING) CO. LTD.

1st Plaintiff

FUJI LEASE CO. LTD.

2nd Plaintiff

OBNES CORPORATION

3rd Plaintiff

FURUKAWA LINE

1st Defendant

CALTEC SHIPPING LIMITED

2nd Defendant

LEO OCEAN S.A.

3rd Defendant

FREIGHT NET INTERNATIONAL LTD.

4th Defendant

RISETECH CONTAINER LINES LTD.

5th Defendant

MANLITAT TRANSPORTATION LTD.

6th Defendant

FAI SHING CONTAINER TRANSPORT CO., LTD. trading as FREIGHT CONTAINER TRANSPORTATION COMPANY

7th Defendant

SINOWEALTH WAREHOUSE & TRANSPORTATION LIMITED

8th Defendant

FORTUNE PIONEER DEVELOPMENT LIMITED

9th Defendant

Procedural Posture

Maritime Cargo Loss; Breach of Contract and Bailment/negligence / Trial and Judgment (district Court)

Legal Issues

  1. 1 Whether the 4th and 6th Defendants were liable for loss of 57 cartons of quartz watches
  2. 2 Whether loss occurred while goods were in the custody/possession of the 6th Defendant or later in the chain (8th/9th Defendants or in Osaka)
  3. 3 Standard of care and evidential burden on bailees/forwarders to show loss was not due to their neglect

Ratio Decidendi

Judge found credible evidence that the 6th Defendant properly stuffed the goods into the container and applied a temporary seal and that the 4th Defendant never took possession and had engaged competent subcontractors; on that basis both defendants discharged the burden of proving the loss was not due to their neglect and the plaintiffs failed to prove liability; accordingly claims against the 4th and 6th Defendants were dismissed.

Court Disposition

Plaintiffs' case against the 4th and 6th Defendants dismissed

Orders

  • Claims against the 4th Defendant (Freight Net International Ltd.) dismissed
  • Claims against the 6th Defendant (Manlitat Transportation Ltd.) dismissed