Forum Selection Clause and Liability Limit in Bill of Lading

Friday, June 28, 2002
The U.S. Court of Appeals for the Ninth Circuit ruled that a cargo owner is bound by the forum selection clause of a bill of lading issued by the carrier to the NVOCC and that the NVOCC may take advantage of the statutory limit of liability referred to in its bill of lading. In the instant case, a cargo owner contracted with a non-vessel-operating common carrier (NVOCC), which issued a bill of lading, to have its cargo transported from Korea to Los Angeles. The NVOCC's bill of lading provided that disputes ere to resolved in U.S court. The carrier issued its own bill of lading to the NVOCC. The cargo was damaged en route. Plaintiff cargo insurer brought suit in Los Angeles against the vessel and the NVOCC for full damages. The court held that, since the NVOCC acted as the agent of the shipper, the shipper was bound by the forum selection clause of the carrier's bill of lading - which provided that disputes were to be resolved in Korea. The court further held that the bill of lading issued by the NVOCC met the COGSA fair opportunity requirement, allowing the shipper to declare a higher value that the statutory limit. Since the shipper did not declare a higher value on the bill of lading, it was bound by the statutory limit. Kukje Hwajae Insurance v. M/V Hyundai Liberty. Source: HK Law
Maritime Reporter August 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Legal

Nigerian Oil Workers Call Off Strike After Talks with Government

Nigerian oil workers' unions have called off a four-day strike after reaching a deal with the government in a dispute over pensions, they said on Saturday. A

Nigerian Minister Pledges $1.3 bln for Power Companies

Nigeria's oil minister announced a 213 billion naira (1.3 billion US dollar) bail-out package for power companies on Saturday, nearly a year after the sector was privatised.

Russia's Yamal LNG Project May Tap Wealth Fund in 2014

Russia's Novatek may get funds from the National Wealth Fund for its Yamal LNG project before the year-end, a minister said, as part of government plans to support sanction-hit companies.

 
 
Maritime Standards Navigation Offshore Oil Pod Propulsion Port Authority Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0988 sec (10 req/sec)