In August 1958, a cargo of potatoes was loaded onto the Trias to be carried to Colombo, Sri Lanka. The shipper, Soc EDA (EDA), concluded a contract of carriage with Speditermar. The shipowner, Soc The Larnaca Navigation (LN), had entered into a time charter with Speditermar. EDA claimed that the bills of lading were invalid and the contract of carriage was null and void, as the bills of lading stipulated a false loading date. The loading actually occurred on 25 August rather than 22 August. In EDA’s view, the invalidity of the bills of lading would lead to the application of the law of the ship's flag (ie English law) and not Italian law as provided for by cl 32 of the bill of lading. EDA claimed that under English law it was entitled to sue not only Speditermar as charterer, but also LN as shipowner.
Held: The appeal in cassation is dismissed.
The Court noted that the date in the bill of lading not corresponding to the effective loading date might be a source of tort (extra-contractual liability) and might create joint liability on the part of the shipper and the carrier with regard to damage suffered by third parties, typically the consignee. However, it did not result in the invalidity of the bills of lading or the contract of carriage.
Moreover, the Court held that in this case, it was impossible to refer to any obligation on the part of LN because of the identification of the party assuming the duties of transport preceding the signature of the master. In addition, the bill of lading was not issued in the name of LN but rather that of the charterer, Speditermar.
The Court stressed that an application of English law would equally not imply any obligation on the part of the shipowner towards the shipper regarding the contract of carriage, where the transport had actually been performed by the charterer as carrier, who had exclusively and expressly assumed the related duties.
Furthermore, the Court emphasised that the master signed the relevant documents as an agent of the charterer, not the shipowner.