Marine Insurance Co Ltd, acting under an assignment of rights, claimed for damage to a cargo of 13,281 pieces of frozen lamb carried in 20 reefer containers onboard the MV New Zealand Pacific to Barcelona, Spain. The damage occurred due to a defect in the power supply that caused the defrosting of the cargo during the carriage period or after its discharge. The lawsuit was filed against Sagemar SA (Sagemar), the agent of the ship at the port of destination, and Maritima Layetana SA, the operator of the port of destination.

The first instance Court admitted the claim and ordered the defendants to pay compensation jointly and severally. The defendants appealed, and the Court of Appeal (CA) affirmed the decision. Sagemar denied any liability, alleging that it was not the carrier. However, the CA stated that art 3 of the Law on Carriage of Goods by Sea of 22 December 1949 (LCGS 1949) extends the liabilities of the carrier to the person that represents the ship at the port where it calls. That principle makes the agent and the carrier jointly liable. The LCGS 1949 introduced the Hague Rules into the Spanish law with some modifications. Spain also ratified the Protocols of 1968 and 1979 making the Hague-Visby Rules applicable. The defendants recurred this decision in cassation before the Tribunal Supremo/Supreme Court (SC).

Held: The SC affirmed the decision based on the art 3 of the LCGS. The SC stated that the agent is liable for the damage without prejudice of the rights that it has against the carrier it represented. Sagemar also alleged that the carrier’s liability covers only the period during the maritime transport until the cargo is delivered to the consignee (art 1.e of the Hague-Visby Rules). The SC rejected this argument too, because it was not possible to determine if the damage occurred during the transportation or after the discharge and custody at the destination port. Therefore, the carrier’s agent at destination and the port operator were held jointly liable.