Pacific Steam Navigation Co. v. Thomson, Airman, & Co., Ltd [1919] ScotLR 518_1 (04 July 1919)

Pacific Steam Navigation Co. v. Thomson, Airman, & Co., Ltd [1919] ScotLR 518_1 (04 July 1919)

The Court held that the bill of lading clause did not entitle the shipowners to freight on cargo lost during the voyage when part of the cargo was delivered. The clause was interpreted as not applying to partial loss, and there was no ascertainable standard for the weight of lost cargo. Therefore, freight was only due on the cargo actually delivered.

Citation
[1919] ScotLR 518_1
Parties
Pursuer: Pacific Steam Navigation Company; Defender: Thomson, Aikman & Company, Limited
Jurisdiction
Scotland
Judgment Date
04 July 1919
Procedural Posture
Civil / Appeal From Sheriff Court at Glasgow to Court of Session Inner House Second Division
Outcome
defenders assoilzied (absolved from liability)
Legal Topics
Bill of Lading, Freight, Partial Loss of Cargo, Interpretation of Contract Clauses
Shipping Contract Bill of Lading Freight Partial Loss of Cargo Interpretation of Contract Clauses

Case Brief

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Parties

Pacific Steam Navigation Company

Pursuer

Thomson, Aikman & Company, Limited

Defender

Procedural Posture

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

Legal Issues

  1. 1 Whether freight is payable on cargo lost during voyage under a bill of lading clause stating 'freight is to be considered as earned and must be paid, ship and/or cargo lost or not lost' when only part of the cargo is lost.

Ratio Decidendi

The Court held that the bill of lading clause did not entitle the shipowners to freight on cargo lost during the voyage when part of the cargo was delivered. The clause was interpreted as not applying to partial loss, and there was no ascertainable standard for the weight of lost cargo. Therefore, freight was only due on the cargo actually delivered.

Court Disposition

defenders assoilzied (absolved from liability)

Orders

  • Defenders assoilzied (absolved) from the claim for freight on lost cargo.