The respondents, a firm of shipowners, chartered a vessel to the appellants. By the charter-party the shipowners were exempted from liability for accidents of navigation, even if occasioned by the master’s negligence, and the master was to sign clean bills of lading without prejudice to the charter. The charterers sold the intended cargo to a purchaser, and, the cargo having been loaded, drew and presented bills of lading to the master, who signed them. The clause of exemption was not referred to in the bills, the charterers and the master both believing (erroneously) that it was incorporated by the words ‘all other conditions as per charter-party.’ The bills of lading were thereafter indorsed to the purchaser. The ship was lost owing to the master’s negligence. The indorsee of the bills of lading having in an action recovered the sum of pounds 12,571 from the shipowners on the ground of the master’s negligence, held that the charterers were bound to indemnify the shipowners who had become liable to the indorsee owing to the charterers’ breach of contract in tendering to the master for signature bills of lading disconform to the charter.
Judges:
Lord Chancellor (Loreburn), the Earl of Halsbury, Lords James of Hereford and Atkinson
Citations:
[1907] UKHL 623, 45 SLR 623
Links:
Jurisdiction:
England and Wales
Transport
Updated: 27 April 2022; Ref: scu.622308