Package limitation(NEW ZEALAND)

THE latest jurisdiction to tackle the issue of package limitation provisions in the Hague Rules is the Auckland division of the High Court in New Zealand, in the case of the Tasman Discoverer. The point at issue was whether the Hague Rules package limitation was introduced into the contract represented by the bill of lading covering a shipment of tin plate from Korea to New Zealand and, if so, what was its effect on reducing the shipowner's liability for cargo damage?

The bill of lading described the cargo as, "70 coils, said to be: 70 coils of electrolytic tin plates in a variety of sizes." During the voyage, some of the coils were damaged as a result of seawater ingress. Some were salvaged, but 55 were sold as scrap. The shipowner accepted liability for the damage and, after salvage recovery, the agreed net claim was $613,667. It was agreed that liability was governed by Clause 6 of the bill of lading, pursuant to which, argued the claimants, the package limit was 55 times the present value in gold of £100 sterling in 1924. The owner, however, maintained that its liability was restricted to £100 per package or unit - or $5,500.

The Auckland court found for the claimants, the point being made that the reference to "£100 sterling" in the Hague Rules was intended to avoid the effect of the erosion of the value of sterling by inflation.

You can read the judgment in full at the excellent New Zealand Maritime Law Updates website at: www.geocities.com/lerx_maritima