HFW wins in significant Court of Appeal ruling on Hague-Visby Rules time bar and deck cargo

Global law firm HFW has secured a significant win for shipowner interests in a Court of Appeal judgment that provides important guidance on the interpretation of the Hague-Visby Rules (HVR) time bar and the treatment of deck cargo under bills of lading.

In The Taikoo Brilliance, the Court of Appeal found in favour of the vessel owners on two important issues relating to the scope of the HVR one-year time bar and the circumstances in which deck cargo falls outside the definition of “goods” under the Rules.

The case arose from claims relating to the carriage of a cargo of logs from New Zealand to India. Cargo interests had begun proceedings in Singapore to obtain security for a London arbitration but failed to begin the arbitration itself within the applicable time limit. The Court of Appeal confirmed that proceedings commenced solely to obtain security do not constitute a “suit” for the purposes of stopping the running of the Hague-Visby Rules time bar.

The Court also delivered important clarification on the application of Article I(c) of the Hague-Visby Rules. It held that where only part of a cargo is carried on deck, the cargo carried on deck must be specifically identified or identifiable on the face of the bill of lading in order to fall within the Article I(c) exception. A generic statement that an unspecified quantity of cargo was carried on deck is insufficient.

The HFW team acting for the successful owners included Partner Chris Metcalf with Associates Remi Cruttenden and Maria Loukaki.

Chris Metcalf, Partner, HFW:

“We’re proud to have secured this win for Pedregal Maritime SA in the Court of Appeal. This is an important for the shipping industry and provides welcome clarity on Hague-Visby Rules that have generated significant debate in recent years.

In practical terms, the decision is likely to influence how bills of lading are drafted and may lead carriers to adopt more detailed cargo identification procedures to ensure that the intended contractual regime applies.”