THE CARRIER'S LIABILITY UNDER INTERNATIONAL MARITIME CONVENTIONS
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1 THE CARRIER'S LIABILITY UNDER INTERNATIONAL MARITIME CONVENTIONS THE HAGUE, HAGUE-VISBY, AND HAMBURG RULES Hakan Karan The Edwin Meilen Press Lewiston'Queenston'Lampeter
2 TABLE OF CONTENTS ABBREVIATIONS TABLE OFCASES TABLE OF LEGISLATION TABLE OF STANDARD FORMS PREFACE by Dr. Ademun-Odeke ACKNOWLEDGMENTS i vii xxxv xlv xlvü li INTRODUCTION /. SUBJECTMATTER AND AIM. 1 //. SCOPEAND STRUCTURE 3 III. APPROACHAND METHODOLOGY 5 PARTI PRELIMINARIES TO THE CARRIER'S LIABILITY CHAPTER1 - HISTORICAL DEVELOPMENT OFTHE CARRIER'S LIABILITY l THE CARRIER'S LIABILITY UNDER ROMAN LAW 7 //. THE CARRIER 'S LIABILITY UNDER CIVIL LAW. 9 ///. THE CARRIER'S LIABILITYATCOMMONLAW 11 IV. THE CARRIER 'S LIABILITY UNDER THE PRINCIPLE OF «LIABILITY DUETOWRITTEN STATEMENT» 12 A) GENERAL 12
3 B) THE CARRIER'S LIABILITY UNDER MODEL BILLS OF LADING The carrier's liability under the Common Form of Bill of Lading The carrier's liability under the Hamburg Rules of Affreightment The carrier's liability under the London Conference Rules of Affreightment V. THE CARRIER 'S LIABILITY UNDER NATIONAL REACTING STATUTES 18 A) THE CARRIER'S LIABILITY UNDER THE US HARTER ACT B) THE CARRIER'S LIABILITY UNDER THE CANADIAN WATER CARRIAGE OF GOODS ACT VI. THE CARRIER 'S LIABILITY UNDER INTERNATIONAL CONVENTIONS 21 A) THE CARRIER'S LIABILITY UNDER THE HAGUE RULES The carrier's liability under the pre-hague Rules The carrier's liability under the Hague Rules The carrier's liability under the Hague - Visby Rules 1968 (the Hague Rules amended by the Visby Protocol 1968 and the SDR Protocol 1979) 27 B) THE CARRIER'S LIABILITY UNDER THE HAMBURG RULES VII. THE CARRIER'S LIABILITY ATPRESENT 36 VIII. CONCLUSIONS 41 CHAPTER 2 - INTERNATIONAL RULES CONCERNING THE CARRIER'S LIABILITY /. AIMSOF THE RULES 43 A) AIMS OF THE HAGUE AND HAGUE-VISBY RULES 43 B) AIMSOF THE HAMBURG RULES 45 //. LEGISLATIVE STYLES OF THE RULES 46 III. LEGAL NATURE OF THE RULES 48 A) CONVENTION BASED UNIFORM RULES 48
4 B)MANDATORY RULES 52 1-General 52 2-Principle 53 3-Exceptions Sanctions General average Effects of Contracting States' national public policies 61 IV. SCOPES OF THE RULES 62 A) GENERAL 62 B) UNDER THE HAGUE RULES 63 C) UNDER THE HAGUE-VISBY RULES 64 D) UNDER THE HAMBURG RULES 65 E) ENLARGEMENT OF THE SCOPE OF THE RULES BY PARAMOUNT CLAUSES 66 V. JURISDICTION. 69 VI. ARBITRATION. 75 VII. CONCLUSIONS. 77 CHAPTER 3 - BASIS OF THE CARRIER'S LIABILITY /. THEREASONFORTHECARRIER'SLIABILITY 81 //. LEGAL NATURE OFTHE CARRIER'S LIABILITY 82 A)GENERAL 82 B)STRICT LIABILITY FOROTHERS'FAULT 85 QEXEMPTED LIABILITY 87 D)LIMITED LIABILITY 98 ///. RELATIONS OF THE CARRIER 'S LIABILITY W1TH OTHER LIABILITIES 100 A) RELATIONS WITH THE CARRIER'S EXTRACONTRACTUAL (TORTIOUS) LIABILITY 100
5 B) RELATIONS WITH CARRIER'S OTHER CONTRACTUAL LIABILITIES 1-General Relations with the carrier's contractual liability for loss or damage arising from unseaworthiness before and at the beginning of the voyage Relations with the carrier's contractual liability for loss or damage arising from deviation 113 a-. General 113 b-. Quasi-deviations 118 IV. THE BÜRDEN AND ORDER OFPROOF 120 V. CONCLUSIONS 123 PART II CONDITIONS OF THE CARRIER'S LIABILITY CHAPTER 4 - THE CONTRACT OF CARRIAGE OF GOODS BY SEA /. DEFINITION AND ELEMENTS OF THE CONTRACT OF CARRIAGE OF GOODS BY SEA 125 A) DEFINITION 125 B) ELEMENTS Carriage Carriage of goods (cargo) 127 a-. General 127 b-. Carriage oflive animals and deck cargo 128 c-. Carriage of Container goods Carriage by sea Carriage of goods in the carrier's custody 137 //. TYPES OF CONTRACTS OF CARRIAGE COVERED BY THE RULES 138 A) CONTRACTS COVERED BY THE HAGUE AND HAGUE-VISBY 104
6 RULES Principle: Lading contracts Exception: Contracts of carriage by chartered ship 141 B) CONTRACTS COVERED BY THE HAMBURG RULES Principle: all contracts of carriage of goods by sea Exception: contracts of carriage by chartered ship 144 ///. DOCUMENTS PROVING THE CONTRACT OF CARRIAGE 144 A) BILLS OF LADING 145 B)WAYBILLS 146 C) ELECTRONIC (PAPERLESS) BILLS OF LADING 147 IV. SUB-CONTRACTS OF CARRIAGE 150 V. CONTRACTS OF THROUGH-CARRIAGE 152 A) GENERAL '. 152 B) TYPES OF CONTRACTS OF THROUGH-CARRIAGE Contracts oflinked carriage Contracts of combined (multimodal) carriage 155 VI. ENLARGEMENT OF THE SCOPE OF THE RULES TO CONTRACTS OUTSIDE THEIR COVERAGE BY AGREEMENT 157 VII. CONCLUSIONS. 159 CHAPTER 5 - LIABLE PARTY UNDER THE CONTRACT OF CARRIAGE /. THE (CONTRACTING) CARRIER 163 //. LEGAL POSITION OF THE CARRIER ISSUING A BILL OF LADING 165 III. LEGAL POSITION OF THE SHIP 166 IV. THIRD PARTIES DEEMED A CARRIER BY LAW 167 A)SUB-CARRIERS 168 B)SHIPOWNERS 172 C) INTERMEDIÄRES OF TRANSPORT 176
7 D)CARRIER'S SERVANTS OR AGENTS General 2- Definition of "the carrier's servants or agents" 183 a-. Carrier's servants 183 b-. Carrier's agents 184 c-. People deemed "the carrier's servants or agents": carrier's assistants (in the Performance of the contract of carriage) 185 d-. Relationship between the carrier and his servants, agents or assistants 188 V. CONCLUSIONS 189 CHAPTER 6 - BREACH OF CONTRACTUAL OBLIGATION /. CONTENT OF CONTRACTUAL OBLIGATION 193 A) CARRIAGE OBLIGATION 193 B) OBLIGATION TO RECEIVE GOODS 197 C) OBLIGATION TO LOAD GOODS 198 D) OBLIGATION TO HANDLE GOODS 201 E) OBLIGATION TO STOW GOODS 202 F) OBLIGATION TO CARRY GOODS 206 G) OBLIGATION TO KEEP GOODS 207 H) OBLIGATION TO CARE FOR GOODS 209 I) OBLIGATION TO DISCHARGE GOODS 210 J) OBLIGATION TO DELIVER GOODS 211 //. BREACH OF OBLIGATION (LOSS OF OR DAMAGE TO GOODS) 216 A)MISFEASANCE OF OBLIGATION (DAMAGE TO GOODS) 216 B) NONFEASANCE OF OBLIGATION (LOSS OF GOODS) 220 III. CONCLUSIONS 222 l19
8 CHAPTER 7 - BREACH OF THE CARRIAGE OBLIGATION WHILE IN THE CARRIER'S CHARGE /. DURATION OF THE CARRIER 'S LIABILITY 225 A) RECEIPT OF GOODS BY CARRIER 226 B) DELIVERY OF GOODS BY CARRIER 228 C) AGREEMENT ON TIME OF RECEIPT OR DELIVERY 232 //. BREACH OF THE CONTRACT OF CARRIAGEDURING THEPERIOD OF THE CARRIER'S LIABILITY. 232 A) GENERAL 232 B) STATE OF GOODS AT THE TIME OF RECEIPT Receipt function of bills of lading and other documents General nature, leading marks, number, weight or quantity of goods Apparent orderand condition of goods Date of receipt by carrier and quality of goods Proofof State of goods with independent evidence 245 C) STATE OF GOODS AT THE TIME OF DELIVERY Inspection of goods Notice of loss or damage 248 III. CONCLUSIONS 254 CHAPTER 8 - LOSS RESULTING FROM BREACH OF THE CARRIAGE OBLIGATION I. DEFINITION OF LOSS 257 II. QUANTUM OF LOSS 258 A) GENERAL 258 B) DIFFERENCE THEORY Decreases in assets 260 a-. Decrease in value ofgoods carried 261 b- Decrease in value of other things in assets 266
9 c-. Decrease in assets due to non-compensation of decrease in value at the time of occurrence ofloss or damage 266 d-. Decrease in profits 267 e-. Increases in expenses 268 /-. Agreement on the method usedfor calculation Increases in benefits 269 III. CONCLUSIONS 270 PART III CONDITIONS OF THE CARRIER'S EXEMPTION FROM LIABILITY CHAPTER 9 - EXEMPTED INCIDENT /. UNAVOIDABLEOCCURRENCE 273 A)GENERAL 273 B) OCCURRENCE 275 C) LACK OF FAULT ON THE PART OF THE CARRIER, HIS SERVANTS AND AGENTS Lack of faulton the carrier's part Lack of fault on the part of the carrier's servants and agents 283 D) ACTS OF GOD 283 II. EXCEPTIONS 284 A) GENERAL 284 B) EXCEPTIONS TO THE GENERAL EXEMPTION RULE: NAUTICAL FAULT AND FIRE General Nautical fault 288 a-. General 288 b~. Forms of nautical fault 291 aa: Fault in the navigationof the ship 291 bb: Fault in the management of the ship 293
10 3-Fire 294 C) EXCEPTIONS TO THE GENERAL BÜRDEN OF PROOF RULE: OCCURRENCES PRESUMED UNAVOIDABLE General Seaperils Acts against public order (policy) Restraints of public authority Restraintsoflabor Acts or omissions of the cargo interest Salvage Inherentdeteriorationofgoods Latent defects 315 ///. PARTICULAR UNAVOIDABLE OCCURRENCES. 317 A) UNDETECTABLE DEFECTS CAUSING UNSEAWORTHINESS BEFORE AND AT THE BEGINNING OF THE VOYAGE 317 B) REASONABLE DEVIATION 320 IV. CONCLUSIONS 323 CHAPTER 10 - PROXIMATE CAUSAL RELATION I.GENERAL 325 II. COMBINATION OF PROXIMATE CAUSES 328 III. CHAIN OF PROXIMATE CAUSES 330 IV. LEGAL POSITION OF CARGO INTERESTS ADDUCING EVIDENCE TO THE CONTRARY 331 V. BLOCKED CAUSAL RELATION 335 VI. CONCLUSIONS 335
11 PART IV T.IMITATION OF THE CARRIER'S LIABILITY CHAPTER 11 - LIMITATION OF DAMAGES I.GENERAL //. IN CASE OF PHYSICAL LOSS OR DAMAGE 339 A) MEASURES USED FOR LIMITATION OF DAMAGES Package 340 a-. General 340 b-. Container, pallet orsimilar article oftransport Unit Weight 355 B)UNITOF ACCOUNT General Gold value ofcurrency 358 a-. Gold value ofpound Sterling or other equivalent national currency (in the Hague Rules) 358 b-. Gold value offranc (in the Visby Protocol) Special Drawing Rights value together with gold value (in the SDR Protocol and the Hamburg Rules) 364 QMONETARYAMOUNT 366 ///. IN CASE OFNON-PHYSICAL LOSS OR DAMAGE 367 IV. IN CASE OF BOTH PHYSICAL AND NON-PHYSICAL LOSS OR DAMAGE 369 V. LOSS OFRIGHTTO LIMIT DAMAGES 369 A) DECLARATION OF THE NATURE AND VALUE OF GOODS General Bürden on the carrier to give shippers fair opportunities to declare the value of goods Sanction on the shipper for misrepresentation
12 B) CONSCIOUS FAULT 376 VI. CONCLUSIONS 379 CHAPTER 12 - LIMITATION OF THE PERIOD FOR ACTION I.GENERAL 383 II. LEGAL NATURE OF THE PERIOD 385 III. LENGTH OF THE PERIOD 388 IV. COMMENCEMENTAND CALCULATION OF THE PERIOD 389 V. COMPLIANCE WITH THE PERIOD 391 VI. THE PERIOD FOR RECOURSE ACTION. 393 VII. ALTERATION OF THE PERIOD 395 VIII. LOSS OFRIGHTTO LIMIT THE PERIOD 396 IX. CONCLUSIONS 397 CONCLUSION /. URGENT NEED FOR THE HARMONIZATION OF INTERNATIONAL LIABILITY REGIMES IN THEFIELD OF CARRIAGE OF GOODS BYSEA 401 //. COMPARISON OF INTERNATIONAL LIABILITY REGIMES 403 ///. THE PREFERRED INTERNATIONAL LIABILITY REGIME: THE AMENDED HAMBURG RULES 408 APPENDICES /. THE HAGUE RULES //. THE VISBY PROTOCOL III. THE SDR PROTOCOL IV. THE HAMBURG RULES V. SIGNATORIESAND CONTRACTING STATES 448 VI. APPLICATION OF THE RULES ORDOMESTIC STATUES TO THE CONTRACT OF INTERNATIONAL CARRIAGE 453
13 VII. MONETARY LIMITS OF THE CARRIER 'S LIABILITY IN VARIOUS COUNTRIES 455 BIBLIOGRAPHY I.BOOKS 461 II. THESIS (UNPUBLISHED) 468 III.ARTICLES 469 IV. REPORTS 495 V. JOURNALS & OTHER PERIODICALS 500 INDEX 505
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