Ocean carrier obtains compensation for delivery of goods by misrepresentation

In a recent decision in the Federal Circuit Court of Australia,¹ the notify party to a bill of lading who obtained delivery of goods from an ocean carrier by misrepresentation was ordered to indemnify the ocean carrier for its losses in defending and settling the claims of the rightful owner of the cargo.

Mitsui OSK Lines (Thailand) Co Ltd (MOL) carried two containers of bagged jasmine rice from Bangkok, Thailand to Sydney, Australia. The bill of lading was consigned 'to order' and named Jack Fair Pty Ltd (Jack Fair) as notify party. MOL delivered the cargo to Jack Fair on production of a colour copy of a non-negotiable bill of lading which was 'endorsed' on the reverse side with the corporate seal of Jack Fair and signed by a director of Jack Fair. MOL mistakenly assumed the 'endorsed' colour copy to be an original bill of lading and issued a delivery order for the release of the goods. In fact, Jack Fair did not hold the original bill of lading, had not paid for