GOLDEN JET FREIGHT FORWARDERS LTD AND ANOTHER v. TRANSMERIDIAN AIR CARGO LTD AND ANOTHER

GOLDEN JET FREIGHT FORWARDERS LTD AND ANOTHER v. TRANSMERIDIAN AIR CARGO LTD AND ANOTHER

The appeal was allowed because the defendant in Action 914 (Golden Jet) demonstrated a bona fide triable defence: it could arguably raise a legal set-off/counterclaim against Transmeridian's claim for air charter hire and the strict common law rule against deduction from freight is limited to voyage charters and does not preclude, as a matter of law, a legal set-off in the context of an air charter hire; accordingly leave to sign final judgment was set aside and the actions were consolidated with leave to set off.

Citation
GOLDEN JET FREIGHT FORWARDERS LTD AND ANOTHER v. TRANSMERIDIAN AIR CARGO LTD AND ANOTHER
Parties
1st Plaintiff (action 3488/79); Defendant (action 914/80): Golden Jet Freight Forwarders Limited; 2nd Plaintiff (action 3488/79): Speedway Air Cargo Forwarders Limited; 1st Defendant (action 3488/79); Plaintiff (action 914/80): Transmeridian Air Cargo Limited; 2nd Defendant (action 3488/79): Transmeridian Air Cargo (HK) Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
17 April 1982
Case Number
HCA3488/1979
Procedural Posture
Civil Commercial Dispute Concerning Air Charter Hire and Related Cargo Claims / Appeal From Master's Order Granting Leave to Sign Final Judgment; Application for Consolidation and Directions
Outcome
Appeal allowed; Master's order and resulting judgment set aside; actions consolidated and transferred to Commercial List; leave to set off granted; costs allocated
Legal Topics
Set Off, Equitable Set Off, Legal Set Off, Counterclaim, Limitation Period, Charter Hire, Consolidation, Transfer to Commercial List
Source Language
EN
Contract Aviation/carriage Law Civil Procedure Limitation Law Equity (set Off) Set Off Equitable Set Off Legal Set Off +5 more

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Parties

Golden Jet Freight Forwarders Limited

1st Plaintiff (action 3488/79); Defendant (action 914/80)

Speedway Air Cargo Forwarders Limited

2nd Plaintiff (action 3488/79)

Transmeridian Air Cargo Limited

1st Defendant (action 3488/79); Plaintiff (action 914/80)

Transmeridian Air Cargo (HK) Limited

2nd Defendant (action 3488/79)

Procedural Posture

Civil Commercial Dispute Concerning Air Charter Hire and Related Cargo Claims / Appeal From Master's Order Granting Leave to Sign Final Judgment; Application for Consolidation and Directions

Legal Issues

  1. 1 Whether the common law rule against deduction from freight in voyage charters extends to air charter hire (hire)
  2. 2 Whether Golden Jet could raise a legal set-off or counterclaim to reduce or extinguish Transmeridian's claim for hire
  3. 3 Whether leave to sign final judgment should have been granted in light of arguable triable defences

Ratio Decidendi

The appeal was allowed because the defendant in Action 914 (Golden Jet) demonstrated a bona fide triable defence: it could arguably raise a legal set-off/counterclaim against Transmeridian's claim for air charter hire and the strict common law rule against deduction from freight is limited to voyage charters and does not preclude, as a matter of law, a legal set-off in the context of an air charter hire; accordingly leave to sign final judgment was set aside and the actions were consolidated with leave to set off.

Court Disposition

Appeal allowed; Master's order and resulting judgment set aside; actions consolidated and transferred to Commercial List; leave to set off granted; costs allocated

Orders

  • Appeal allowed in Action No. 914 of 1980
  • Order of the learned Master dated 21 January 1982 and the judgment entered be set aside