A cargo of hessian bags aboard the Sinar Java was damaged between Kolkata and Singapore. The goods were bound for Sydney and transhipped in Singapore aboard the Magnavia. The plaintiff (Associated Packaging Pty Ltd), the shipper, joined two other parties in bringing a cargo claim against Lloyd Triestino di Navigazione SpA (Lloyd Triestino), the contractual carrier, alongside Samudera Shipping Lines Pte Ltd (Samudera), the owner of the Sinar Java. Lloyd Triestino had a connecting carrier agreement with Advance Container Line Pte Ltd (ACL) for the first leg of the journey between Kolkata and Singapore.

After a failed mediation, Lloyd Triestino sought to join ACL as a third party to the proceedings in order to sue upon their connecting carrier agreement.

Held: The Court accepted that Lloyd Triestino had responsibilities pursuant to the Hague-Visby Rules, although it sought indemnity from ACL for liabilities undertaken on the voyage between Kolkata and Singapore. If Lloyd Triestino was found liable in these proceedings, then a prima facie case existed against ACL under the connecting carrier agreement to indemnify Lloyd Triestino. Because of this, Allsop J proposed to permit a cross-claim to be served against ACL outside the jurisdiction by Lloyd Triestino.

Allsop J ordered that Samudera file and serve an affidavit within four weeks setting out what facts, matters, and circumstances it would rely upon in discharging its onus of proof as bailee that it took reasonable care and custody of the hessian bags pursuant to the Hague or Hague-Visby Rules, and establish what evidence it would rely upon to establish it exercised due diligence in making the vessel seaworthy, and met its obligations under art 3 of the Hague or Hague-Visby Rules. Samudera was also to file and serve its defence in the same period.