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ARTICLE · 01 JUNE 2009

Misdelivery Claims In Hong Kong

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The Court of Final Appeal (the highest court in Hong Kong) recently handed down an important decision on claims concerning misdelivery of cargo in Carewins Development (China) Limited v Bright Fortune Shipping Limited (FACV No.13 of 2008, 12 May 2009).

Hong KongTransport
Nick Luxton
Nick Luxton
Craig Neame
Craig Neame

The Court of Final Appeal (the highest court in Hong Kong) recently handed down an important decision on claims concerning misdelivery of cargo in Carewins Development (China) Limited v Bright Fortune Shipping Limited (FACV No.13 of 2008, 12 May 2009). The Court has commented on the nature of straight bills of lading and the application of exemption clauses in contracts of carriage.

Background

The Defendants were freight forwarders who issued bills of lading to the Plaintiff for the carriage of consignments of footwear from Hong Kong to Los Angeles. The Defendants issued 'straight' bills of lading – that is, the consignee was named in the bills of lading and the words 'to order' did not appear. Accordingly, the bills were not negotiable. The cargo was delivered to the consignee in Los Angeles without production of the original bills of lading. Shortly after delivery took place, the cargo was seized in the United States due to an alleged trade mark infringement.

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