Delivery of Cargo against Fraudulent Bills of Lading

August 2000

(Sea Venture Volume 19)

Since the case report of Motis Exports Ltd. v Dampskibsselskabet AF 1912 Aktieselskab and Aktieselskabet Dampskipsselskabet Svendborg in ''Sea Venture'' Vol.18 the Court of Appeal has upheld the first instance decision.

The issue turned on the interpretation of clause 5(3)(b) of the bill of lading:

''5. CARRIER'S RESPONSIBILITY
….

3. Carriage to and from Countries other than the USA
….

(b) where the carriage called for commences at the port of loading and/or finishes at the port of discharge, the Carrier shall have no liability whatsoever for any loss or damage to the goods while in its actual or constructive possession before loading or after discharge over ship's rail or if applicable, on the ship's ramp, however caused.''

In dismissing the owners' appeal the Court of Appeal held that the exemption afforded by clause 5(3)(b) did not apply to loss or damage caused by misdelivery in the absence of the original bill of lading. Accordingly, the owners were held liable for loss of the goods due to delivery against forged bills of lading¹.

¹  [2000] 1 Lloyd's Rep. 211