Crown Steamship Co., Ltd v. Leitch [1908] ScotLR 402 (31 January 1908)

Crown Steamship Co., Ltd v. Leitch [1908] ScotLR 402 (31 January 1908)

The consignee was contractually obliged to receive goods as fast as the steamer could deliver, with port custom expressly excluded. The shipowners were entitled to recover only those expenses reasonably and necessarily incurred to ensure quick dispatch, specifically the cost of clearing the quay when the consignee failed to keep pace. The sum claimed was reduced to a reasonable rate based on unchallenged evidence of market rates for such work.

Citation
[1908] ScotLR 402
Parties
Pursuer: Crown Steamship Company, Limited; Defender: John Leitch
Jurisdiction
Scotland
Judgment Date
31 January 1908
Procedural Posture
Civil / Appeal From Sheriff Court at Greenock to Court of Session Inner House Second Division
Outcome
appeal allowed in part; interlocutor of Sheriff-Substitute recalled; decree for pursuers for reduced sum
Legal Topics
Bill of Lading, Obligation to Receive Goods, Quick Dispatch, Custom of the Port, Contractual Interpretation, Demurrage Substitute
Shipping Law Contract Law Bill of Lading Obligation to Receive Goods Quick Dispatch Custom of the Port Contractual Interpretation Demurrage Substitute

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Parties

Crown Steamship Company, Limited

Pursuer

John Leitch

Defender

Procedural Posture

Civil / Appeal From Sheriff Court at Greenock to Court of Session Inner House Second Division

Legal Issues

  1. 1 Whether the consignee was contractually obliged to receive goods as fast as the steamer could deliver, excluding port custom
  2. 2 Whether expenses incurred by shipowners to clear the quay for quick dispatch are recoverable from the consignee under the bill of lading
  3. 3 Whether the sum claimed was necessary and reasonable

Ratio Decidendi

The consignee was contractually obliged to receive goods as fast as the steamer could deliver, with port custom expressly excluded. The shipowners were entitled to recover only those expenses reasonably and necessarily incurred to ensure quick dispatch, specifically the cost of clearing the quay when the consignee failed to keep pace. The sum claimed was reduced to a reasonable rate based on unchallenged evidence of market rates for such work.

Court Disposition

appeal allowed in part; interlocutor of Sheriff-Substitute recalled; decree for pursuers for reduced sum

Orders

  • Defender to pay pursuers £11, 14s. with interest at 5% per annum until payment