VALUABLE LAW WORKS PUBLISHED BY STEVENS AND SONS, LIMITED, 119 &• 120, CHANCERY LANE, LONDON, W.C. The Annual. P)?a©t4eeyl5^-49E(iited by. Thomas Snow, Barrister-at-Laxv- ; CHAEiEiS''BTr^NEY, a Master of the Supreme Court; and F. A/STEIN&ES^a£tliBT5eiitral,8fiioe. Two Vols, llemy Sm. Price, net, ibs. V^- Dr. Blake Odgers, Q.C., has re-written- the Notes to Orders XIX., XX., XXI. and XXV., relatimg to Pleading, 'Statement- of 'Claim, Befmee and Counter-claim, mid Proceedings in LieM of DemWrer. ■ - The Anminl- finiiTi+Tr f!«,,r4- •D«-^4.;„ ^o«« " J£jg H lELES ly 8to, Ihort ILaw. aAW, Law 'Eighth urt of il- Sot. m relat- By (Jnrn? II ICam ^rl|onl IGibtary w: Sebasi gis- trat Nwill. -f"" iNa, Heywood and Massey's Lunacy Practice. — By Arthur HETWOOD and ARNOLD MASSEY, Solicitors. Demy 8««. 1900. Price Is- &d. cloth. Htint's London Government Act, 1899. — The Law relating to Metropolitan Boroughs and Borough Councils. 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"Paet II. : WIKDING-TTP FORMS AKD PRACTICE. Arranged as follows::— Compulsory Winding-Up, Voluntary Winding-Up, Winding-Up under Supervision, Arrange- ments and ComprQmises. With Copious Notes^ and an Appendix containing Acts and Rules. ISiflit% Edition. By FEANCIS BEATJI'DET PALMEE, assisted by FEANK EVANS, Barristers-at-Law. Royal Sw." MOO. ■ Price 32s.- cloth. Paet III.: DEBENTURES AND DEBEKTTTRE STOCK. Including Debentures, Trust Deeds, Stock Certificates, Eesolutions, Prospectuses, Writs, PleadiQgs,^ Judgments, Orders, Receiverships, Notices. Miscellaneous. With Copious Notes. Mighth Edition. By FEANCIS BEAUFOET PALMEE, Barrister-at-Law. Royal 8vo. 1900. Price 21«. cloth. ' ' ' " Palmer's * Company Precedents ' is the book par excellence for practitioners. There is nothing we can think of which should be within the covers which we do not find." — Law ^oumal^ Palmer's Company Law.^A Practical -Handbook for Lawyers and Busiiiess Men. With an Appendix containing the Cqnipanies Acts, 1862 to 1898, and Eules. i- 171,172 Bishop t!. Ware, 3 Camp. 360 461 Black v. -Rose, 2 Moo. P. C. C. N. S. 277 ; 11 L. T. N. S. 31 ; 12 W. E. 1123; 10 Jur. N. S. 1009 546, 655, 657 Blaokett v. Eoyal Exchange Ass. Co., 2 C. & J. 244 ; 2 Tyr. 266 . . 172, 182, 196 Blake v. Belfast Discount Co., 6 L. E. Ir. 410 604 Blakey v. Dixon, 2 B. & P. 321 542, 662 Blakie v. Stembridge, 6 C. B. N. S. 894, 911 ; 29 L. J. C. P. 212 ; 28 L. J. C. P. 329 ; 36 L. T. 670 ; 8 W. E. 239 ; 5 Jur. N. S. 1128 ; 6 Jur. N. S. 825 48, 274 Blanohard v. Page, 8 Gray, 281 61 Blanche, The, 58 L. 692 ; 6 Asp. Mar. C. 272 40 Blanchet v. Powells Llantifit Collieries Co., L. E. 9 Ex. 74 ; 43 L. J. Ex. 60 ; 30 L. T. 28 ; 22 W. E. 490 70, 550, 581 Blanok v. Solly, 1 B. Moore, 631 ; Holt, 564 237, 543 Blanshard, In re, 2 B. & C. 244 ; 3 D. & E. 177 , 38 Blasoo V. Fletcher, 14 C. B. N. S. 147 ; 32 L. J. C. P. 284 ; 9 L. T. 169 ; 11 W. E. 997 ; 9 Jur. N. S. 1105 74, 307, 554 Bleck V. BaHeras, 29 L. J. Q. B. 261 ; 6 Jur. N. S. 1243 ; 3 E. & E. 203. . 634 Blenheim, The, 10 P. D. 167 ; 54 L. J. Adm. 81 ; 53 L. T. 916 ; 34 W. E. 154 ; 5 Asp. Mar. C. 622 309, 719 Bhght V. Page, 3 B. & P. 295 (u.) 150, 208, 216, 247, 255, 270, 611, 718 Blower V. G. W. Ey. Co., L. E. 7 C. P. 655 ; 41 L. J. C. P. 268 ; 27 L. T. 883 ; 20 W. E. 776 .~ 12 Blyth V. Smith, 12 L. J. C. P. 203 ; 7 Jur. 948 ; 6 Scott, N. E. 360 ; 5 M. & G. 405 731 Boardman v. Sill, 1 Camp. 410 (n.) 679 Bodley v. Eeynolds, 8 Q. B. 779 ; 16 L. J. Q. B. 219 ; 10 Jur. 310 728 Bohtlingk V. Inglis, 3 East, 381 ; S. C, nom. Boehtlinok v. Schneider, 3E3p. 58 511, 512, 531 Bold Buccleuch, The, 7 Moo. P. C. 267 698, 700 Bolton V. L. & T. Ey. Co., L. E. 1 C. P. 431 ; 36 L. J. C. P. 137 ; 13 L t' 764 ; 14 W. E. 430 ; 12 Jur. N. S. 317 518 Bona, The, (1896) P. 125 ; 64 L. J. P. 62 ; 71 L. T. 870 ; 7 Asp. 557 .".383, 386 Bonaparte, The, 8 Moo. P. C. 469 ; 3 W. Eeb. 298 -. 299 316 Bond V. The Superb, 1 Wallace Junior, 356 413a Booker v. Pooklington S.S. Co., (1899) 2 Q. B. 690 ; 69 L J Q B 10 ■ 81L-T. 524 '...'.App. B. Boone v. Eyre, 1 H. Bl. 273, cited 6 T. E. 573 ; 2 W. Bl. 1312 231 Bommann v. Tooke, 1 Camp. 377 219 Berries v. Hutchinson, 34 L. J. C. P. 169 ; U L. T. 771 ■ 13 W T? .SRfi ■ 18 C. B. N. S. 445 ; 11 Jur. N. S. 267 ......'.....'. 714 Borrowman v. Wilson, 7 T. L. E. 416 455 476 479 TABLE OF CASES CITED. XV BBOT. Boson V. Sandford, 2 Salk. 440 ; Carth. 58 36, 38, 47 Botany Worsted Mills v. Knott, 76 Fed. Rep. 582 ; 82 Fed. Eep. 471 103a, 103d, 103e Bottomley v. Forbes, 5 Bing. N. 0. 121 ; 6 Soott, 866 169, 197, 679 Boucher v. Lawson, Rep. temp. Hardwioke, 85 216 Boucher v. Noidstrom, 1 Taun. 568 48 Bourne v. Seymour, 24 L. J. C. P. 202 ; 16 C. B. 337 ; 1 Jur. N. S. 1001 . . 251 Bowes ■„. Shand, 2 A. C. 455 ; 2 Q. B. D. 112 ; 1 Q. B. D. 470 ; 46 L. J. Q. B. 561, 201 ; 36 L. T. 857, 161 ; 25 W. R. 730 166, 169, 171 Bowring V. Thebaud, 56 Fed. Rep. 520 144 Boyce v. Bayliffe, 1 Camp. 58 717 Boyd V. Mangles, 18 L. J. Ex. 273 ; 3 Ex. 387 696 Boyd i>. Moses, 7 "Wall. (U. S.) 316 279 Bradbum v. a. "W. Ry. Co., L. R. 10 Ex. 1 ; 44 L. J. Ex. 9 ; 31 L. T. 464 ; 23 "W. R. 468 730 Bradford v. Williams, L. R. 7 Ex. 259 ; 41 L. J. Ex. 164 ; 26 L. T. 641 ; 21 W. R. 782 235 Bradley «. Duuipace, 31 L. J. Ex. 210 ; 32 L. J. Ex. 22 ; 6 L. T. 356 ; 1 H. &C. 621 69, 71, 469 Bradley v. Goddard, 3 F. &T. 638 124, 612, 644 Bradley «. Waterhouse, M. & M. 154 ; 3 C. & P. 318 14 Bradshaw v. Irish N. W. Ry. Co., 21 W. R. 581 ; 7 Ir. R. C. L. 252 473 Bradshaw v. L. & Y. Ry. Co., L. R. 10 C. P. 189 ; 44 L. J. C. P. 148 ; 31 L. T. 847 717 Bramley v. Chesterton, 2 C. B. N. S. 1144 ; 27 L. J. C. P. 23 ; 3 Jur. N. S. 1104 731 Branckelow S.S. Co. v. Lamport, (1897) 1 Q. B. 570 ; 66 L. J. Q. B. 382 . . 613, 631 Brandao v. Bamett, 12 CI. & F. 787 ; 3 C. B. 519 192 Brandt «. Bowlby, 2 B. & Ad. 932 488, 727 Brankelow S.S. Co. v. Canton Ins. Office, (1899) 2 Q. B. 178 ; 68 L. J. a. B. 811 ; 81 L. T. 6 161, 650 Branley v. S. E. Ry. Co., 12 C. B. N. S. 63 ; 31 L. J. 0. P. 286 ; 9 Jur. N. S. 329; 6L. T. 458 4, 2-15 Branaton, The, 2 Hagg. 3 (n.) , 336 Brantford City, The, 29 Fed. Rep. 373 103a Brass v. Maitland, 26 L. J. Q. B. 49 ; 2 Jur. N. S. 710 ; 6 E. & B. 471. . . . 97, 278, 279 Bremner v. BurreU, 4 Sess. Ca. (4th), 934 623 Brenda S.S. Co. v. Green, (1900) 1 Q. B. 518 ; 4 Com. Ca. 209 462, 463 Brereton v. Chapman, 7 Biug. 569 ; 5 M. & P. 526 199, 623, 625 Breslauer v. Barwick, 36 L. T. 62 130 Brice v. Bannister, 3 Q. B. D. 569 ; 47 L. J. Q. B. 722 ; 38 L. T. 739 ; 26 W. R. 670 696 Briddon v. G. N. Ey. Co., 28 L. J. Ex. 51 ; 32 L. T. O. S. 94 285 BrigeUa, The, (1893) P. 189 ; 62 L. J. P. 81 ; 69 L. T. 834 374c, 436 Brig Fittler, The, Ang. Car. s. 301 182, 460 Brig Mary, The, 1 Sprague, 17 376, 409, 413a, 438 Brig Nestor, The, 1 Sumner, 78 698 Briggs V. Merchant Traders, &o. Association, 18 L. J. Q. B. 178 ; 13 Q. B. 167; 13 Jur. 787 353, 393 Brind v. Dale, 2 Moo. & Rob. 80 ; 8 C. & P. 327 4 Bristol and Exeter Ry. Co. v. Collins, 29 L. J. Ex. 51 ; 7 H. L. Cas. 194 ; 5 Jur. N. S. 1367 107 Bristol and West of England Bank v. Midland Ry. Co., (1891) 2 Q. B. 662 ; 66 L. T. 234 62, 66a, 601 52 XVI TABLE OP CASES CITED. SECT. Bristow V. SequeTine, 5 Ex. 275 ; 3 C. & K. 64 ; 19 L. J. Ex. 289 ; 14 Jur. 674 213 Bristow V. -Wiitmore, 31 L. J. Ch. 467 ; 9 H. L. 391 ; 4 L. T. 622 ; 9 "W. E. 621; 8 Jur. N. S. 291 589 British Columbia Saw Mill v. Nettleship, L. E. 3 0. P. 499 ; 37 L. J. C. P. 235; 18L. T. 291; 16 "W". R. 1046 68, 251, 714, 716, 724 British King, The, 89 Fed. Eep. 872 lOSd, 103e British Linen Co. v. Drummond, 10 B. & 0. 903 697 British Shipowners Co. v. Grimond, 3 Sess. Ca. (4th), 968 468 Broad V. Thomas, 7 Bing. 99 ; 4 M. & P. 732 ; 4 C. & P. 338 121 Broadhead v. Yule, 9 Sess. Ca. (3rd), 921 ; 8 So. L. R. 604 124 Broadhurst ». Columbian Ins. Co., 9 Johns. (N. T.) Eep. 9 389 Brodie v. Howard, 17 C. B. 109 ; 25 L. J. C. P. 67 ; 1 Jur. N. S. 1209. ... 34 Brooke i>. Pickwick, 4 Bing. 218 ; 12 Moo. 447 6 Brounoker v. Soott, 4 Taun. 1 47, 589, 643 Brown v. Byrne, 23 L. J. Q. B. 313 ; 18 Jur. 700 ; 2 C. L. E. 1599 ; 3 E. & B. 703 196, 197, 584 Brown v. Graoey, D. & K. N. P. 41 (n.) : 205 Brown i). Hare, 27 L. J. Ex. 272 ; 29 L. J. Ex. 6 ; 4 H. & N". 822 ; 8 Jur. N. S. 711 ; 7 W. E. 619 ; . .492, 494 Brown v. Hodgson, 2 Camp. 36 ; 4 Taun. 189 61 Brown v. Hunt, 11 Mass. 46 570 Brown «). Johnson, Car. & M. 440 224, 249 Brown v. Johnson, 10 M. & W. 331 ; 11 L. J. Ex. 373. .613, 623, 624, 625, 631 Brown v. M. S. & L. Ey. Co., 9 Q. B. D. 230 ; 10 Q. B. D. 260 ; 8 A. C. 703; 63 L. J. Q. B. 124 ; 50 L. T. 281 ; 32 "W. E. 207 ; 48 J. P. 388. .103, 110 Brown v. MuUer, L. E. 7 Ex. 319 ; 41 L. J. Ex. 214 ; 27 L. T. 272 ; 21 W. E. 18 719 Brown v. North, 22 L. J. Ex. 49 ; 8 Ex. 1 575, 592 Brown v. Powell Coal Co., L. E. 10 C. P. 562 ; 44 L. J. C. P. 289 ; 32 L. T. 621 ; 23 W. E. 649 70, 152, 161, 581 Brown v. Stapyleton, 4 Bing. 119 ; 12 Moore, 334 420 Brown v. Tanner, L. E. 3 Ch. 597 ; 37 L. J. Ch. 923 ; 18 L. T. 624 ; 16 W. E. 882 41,553, 592, 595, 697, 666 Bruce v. Nicolopulo, 24 L. J. Ex. 231 ; 11 Ex. 129 . . i 148 Brunei, The, (1900) P. 24 ; (1899) P. 45 26 Bryans v: Nix, 4 M. & W. 775 ; 1 H. & H. 480 486, 500 Bryden v. Niebuhr, 1 Cab. & Ell. 241 651 Brunner v. Webster, 5 Com. Ca. 167 82 271 Buckle V. Knoop, L. E. 2 Ex. 125, 333 ; 36 L. J. Ex. 223 ; 16 L. T. 571 • 15 W. E. 999 169, 184, 197, 677, 579 Buckley v. Gross, 3 B. & S. 674 ; 32 L. J. Q. B. 129 ; 7 L. T. 743 • 11 W E 465 ; 9 Jur. N. S. 986 .' ', _ _' 505 Budgett V. Binnington, 25 Q. B. D. 320 ; (1891) 1 Q. B. 35 ; 60 L. J Q B 1; 39W. E. 131 229,258, 611, 6i2a', 616 Bullen V. Denning, 5 B. & 0. 842 ; 8 D. & E. 657 , 172 Buller V. Fisher, 3 Esp. 67 85 Buller V. Plunket, 30 L. J. Ch. 641 ; 4 L. T. 737 ; 1 J. & H. 441 . . . ." " ." ." ', 596 Bulman v. Dickson, (1894) 1 Q. B. 179 268 624b 628 Bunch V. G. "W. Ey. Co., 17 Q. B. D. 285 ; 13 A. C. 31 ; 55 Ij.S. Q B 427 ■' 65 L. T. 9 ; 34 W. E. 574 7! ...!!. .' 6 Bunney v. Poyntz, 4 B. & Ad. 568 ; 1 N. & M. 229 .'.".'.'.'.'.'627 679 Burdick v. Sewell. (See Sewell v. Burdick.) Burges v. Wiokham, 33 L. J. Q. B. 17 ; 3 B. & S. 669 ig Burgon V. Sharpe, 2 Camp. 529 ^, Burke v. S. E. Ey. Co., 6 C. P. D. 1 ; 49 L. J. 0. P. 107 • '41" L "t'WI '■ 28W. E. 306; 44 J. P. 283 ..'..*. T!'. ,.'.!; !.' Ill TABLE OF CASES CITED. xvii SECT. Burmester v. Hodgson, 2 Camp. 488 614 Bum V. Herlofson, 6 Asp. 126 590 Burngtt V. BouoET 9 C. & P. 620 121 Burrell v. Simpson, 4 Sess. Ca. (4th Series) 177 26 Burrill v. Grossman, 69 Fed. Rep. 747 i . . . 611, 650 Burrows v. March Gas Co., L. R. 6 Ex. 67 ; L. R. 7 Ex. 96 : 39 L. J. Ex. ' 33; 41 L. J. Ex. 46; 22 L. T. 24; 26 L. T. 318; 30 "W. R. 493 717 Burton v. EngUsh, 12 Q. B. D. 218 ; 10 Q. B. D. 426 ; 53 L. J. Q. B. 133 ; 82 L. J: Q. B. 386 ; 48 L. T. 730 ; 31 W. R. 566 ; 49 L. T. 768 ; 32 W. R. 655 ; 6 Asp. M. C. 187 15, 80, 103, 105, 172, 364, 373h, 373o, 380 Barton v. Pinkerton, L. R. 2 Ex. 340 ; 36 L. J. Ex. 137 ; 17 L. T. 15 ; 15 W. R. 1139 246, 717 Bushire, The, 52 L. T. 740 ; 6 Asp. 416 , . 705 Butler v. Wooloot, 2 N. R. 64 ' 654 Byrne v. Pattison, Ahhott (5th), 335 ; (11th), iv. 8, 9 659 Byrne v. Schiller, L. R. 6 Ex. 20, 319 ; 40 L. J. Ex. 40, 177 ; 23 L. T. 741 ; 25 L. T. 211 ; 19 W. R. 161, 1114 303, 662, 565 C. S. Buller, The, L. R. 4 A. & E. 238 ; 31 L. T. 549 ; 23 W. R. 113 .... 24 Cachapool, The, 7 P. D. 217 ; 46 L. T. 171 ; 4 Asp. M. C. 602 30, 31 CafEarini v. Walker, Ir. R. 10 C. L. 250 448, 629 Caffin r. Aldridge, (1895) 2 Q. B. 366, 648 ; 1 Com. Ca. 130, 181 ; 64 L. J. Q. B. 736 ; 65 L. J. Q. B. 85 ; 73 L. T. 426 262, 286 Cahn V. Pockett's, &c. Co., (1899) 1 Q. B. 643 ; (1898) 2 Q. B. 61 ; 68 L. J. Q. B. 515 ; 80 L. T. 269 ; 8 Asp. 616 504, 536 Cairo, The, L. R. 4 A. & E. 184 ; 43 L. J. Ad. 33 ; 30 L. T. 536 ; 22 W. R. 742 329 Calabar, The, L. R. 2 P. C. 238 ; 19 L. T. 768 32 Calder vj Dohell, L. R. 6 C. P. 486 ; 40 L. J. C. P. 224 ; 25 L. T. 129 ; 19 W. R. 978 127, 132 Calderou v. Atlas Co., 170 U. S. 271 103b Caldwell v. Ball, 1 T. R. 205 503 Caledonia, The, 157 U. S. 124 17, 79, 102a, 725, 726 Cambrian, The, 76 L. T. 604 334 Camden v. Cowley, 1 W. Bl. 417 193 Camellia, The, 9 P. D. 27 ; 53 L. J. Ad. 12 ; 50 L. T. 126 ; 32 W. R. 495 ; 5 Asp. M. C. 197 333 CammeU v. Sewell, 27 L. J. Ex. 447 ; 29 L. J. Ex. 350 ; 6 Jur. N. S. 918 ; 8 W. R. 630 ; 5 H. & N. 728 211, 301 Campbell v. Thompson, 1 Stark. 490 320, 586, 698 Campion v. Colvin, 3 Bing. N. C. 17 ; 3 Soott, 338 ; 2 Hodges, 116 ... . 656, 674 Canada Shipping Co. v. British Shipowners' Mutual Protection Assoc, 22 a. B. D. 727 ; 23 Q. B. D. 342 ; 68 L. J. Q. B. 462 ; 61 L. T. 312 ; 38 W. R. 87; 6 Asp. Mar. C. 388 26, 101 Canada, The, 13 T. L. R. 288 43, 44, 156, 161, 162, 599 Candy «). M. Ry. Co., 38 L. T. 226 724 Cannan v. Meabum, 1 Bing. 243, 466 ; 2 Moo. 633 26, 297, 300, 305 Canova, The, L. R. 1 A. & E. 56 ; 12 Jur. N. S. 628 347 Capella, The, (1892) P. 70 ; 66 L. T. 388 ; 7 Asp. 158 346 Capper v. Forster, 3 Bing.~N. C. 938 ; 3 Soott, 129 ; 3 Hodges, 177 263 Capper v. Wallace, 6 Q. B. D. 163 ; 49 L. J. Q. B. 360 ; 42 L. T. 130 ; 28 W. R. 424 44, 151, 226,449, 452, 457 Card V. Hine, 39 Fed. Rep. 818 ; 232 Card i>. Hope, 2 B. & C. 661 36 Xnu TABLE OF CASES CITED. SECT. Cargo ex Argos, L. K. 5 P. C. 134 ; 28 L. T. 745 ; 21 W. R. 707 ; 42 L. J. Ad. 49...... 295,296,459, 544,693,694,695 Cargo ex Capella, L. E. 1 A. & E. 356 ; 16 L. T. 800 342, 346 Cargo ex Galam, 33 L. J. Ad. 97 ; 9 1,. T. 650 ; 12 W. R. 495 ; 2 Moo. P. C. N. S. 216 ; 10 Jtir. N. S. 477 307, 319, 394, 442, 445, 554, 668, 698 Cargo ex Honor, L. R. 1 A. & E. 87 ; 35 L. J. Ad. 113 ; 16 W. R. 10 ; 12 Jur. N. S. 773 , . 332 Cargo ex Laertes, 12 P. D. 187 ; 57 L. J. Adm." 108 ; 67 L. T. 502 ; 36 W. R. Ill; 6A8p. Mar. C. 174 79, 102, 342 Cargo ex Olivier, 31 L. J. Ad. 137 ; Lush. 484 ; 6 L. T. 259 316 Cargo ex Sarpedon, 3 P. D. 28 ; 37 L. T. 505 ; 26 W. R. 374 324 Cargo ex Schiller, 2 P. D. 146 ; 1 P. D. 473 ; 36 L. T. 714 ; 35 L. T. 97 ; 46 L. J. Ad. 9 330, 331, 352, 366, 394 Cargo ex Sultan, Swa. 504 ; 5 Jur. N. S. 1060 296, 313, 316 Cargo ex XJIysses, 13 P. D. 205; 58 L. J. Adm. 11; 6 Asp. Mar. C. 354 336 Cargo ex "Woosung, 1 P. D. 260 ; 44 L. J. Ad. 45 ; 33 L. T. 394 ; 25 W. R. 1 ; 36 L. T. 8 ; 3 Asp. 50 332, 347 Cargo per Maori King v. Hughes, (1896) 2 Q. B. 660 ; 64 L. J. Q. B. 744 ; 73 L. T. 141 , 19a, 79, 102a Cargo per "Waikato v. New Zealand S.S. Co., (1898) 1 Q. B. 646 ; (1899) 1 Q. B. 56 ; 68 L. J. Q. B. 1 ; 79 L. T. 326 102a, 166 Carib Prince, The, 170 U. S. 665 17, 79, 102a, 103, 103o Carishrook, The, 15 P. D. 98 ; 69 L. J. Adm. 37 ; 62 L. T. 843 ; 38 W. R. 543 624b Carl XV., The, (1892) P. 132, 324 ; 61 L. J. P. Ill 30 Carlton S.S. Co. v. Castle, &o. Co., 2 Com. Ca. 173 ; (1897) 2 Q. B. 485 ; (1898) A. G. 486 ; 67 L. J. Q. B. 795; 78 L. T. 661.. 249, 261, 615, 624b, 628 Carmichael r. Liverpool Sailing Ship Owners' Assoc, 19 Q. B. D. 242 ; 66 L. J. a. B. 428 ; 67 L. T. 850 ; 35 W. R. 793 ; 6 Asp. Mar. C. 184. .26, 101 Carnegie v. Conner, 24 Q. B. D. 46 ; 59 L. J. Q. B. 22 ; 61 L. T. 691 ; - 6 Asp. M. C. 477 141a Carr v. Jackson, 21 L. J. Ex. 137 ; 7 Ex. 382 128 Carr ii. Wallaohian Petroleum Co., L. R. 1 C. P. 636 ; L. R. 2 C. P. 468 ; 36 L. J. C. P. 236 ; 16 L. T. 460 ; 15 W. R. 874 566 Carrier Dove, The, 2 Moo. P. C. N. S. 243 ; Br. & L. 113 322 Carron Park, The, 16 P. D. 203 ; 59 L. J. Adm. 74 ; 63 L. T. 356 .. 79, 101, 148, 342, 373c Carter v. Crick, 28 L. J. Ex. 238 ; 4 H. & N. 412 171 Case *. Davidson, 5 M. & S. 79 ; 2 B. & B. 379 ; 5 Moore, 116 ; 8 Price, 642 691, 600 Cassaboglou v. Gibb, 9 Q. B. D. 220; 11 Q. B. D. 797; 51 L. J. Q. B. '693 ; 52 L. J. Q. B. 638 ; 47 L. T. 98 ; 48 L. T. 850 ; 32 W. R. 138 • 46 J. P. 668 495 Castel V. Trechmann, 1 Cab. & EU. 276 454 550 CasteUaiu v. Preston, 11 Q. B. D. 380 ; 62 L. J. Q. B. 366 ; 49 L. T. 29 ; 31 W. R. 699 '702 Castlegate, The, (1893) A. C. -38 ; 62 L. J. P. C. 17 ; 68 L. T. 99 ; 7 Asp 284 589, 601, 696, 699, 707, App. B. Castlegate S.S. Co. v. Dempsey, (1892) 1 Q. B. 54, 854 ; 61 L. J. Q. B. 620 • 66L.T. 742; 7 Asp. 186 614,'615a Castrique v. Lnrie, L. R. 4 H. L. 414 ; 39 L. J. C. P. 350 ; 23 L T 48 • 19W.R. 1 ;.,;...; 597 Catharine Chabners, The, 32 L. T. 847 , gg gg 274 Catley v. "Wintringham, 1 Peake, N. P. C. 202 4g2 Catling, Ex parte, Chadwiok, In re, 29 L. T. 431 , 513 Cato, The, 35 L. J. Ad. 116 ".'..".".'.'!!'.' 343 Cato D. Irving, 21 L. J. Ch. 6.75 ; 6 De G. & S. 210 ',".'.' ggo' 595 TABLE OF CASES CITED. XIX SECT. Cator V. Great Western Ins. Co. of New York, L. R. 8 0. P. 552 ; 42 L. J. 0. P. 266 ; 29 L. T. 136 ' 90 Caughey v. Gordon, 3 C. P. D. 419 ; 27 W. E. 50 , 587 Oawthron ». Triokett, 33 L. J. 0. P. 182 ; 9 L. T. 609 ; 12 "W. E. 311 ; 15 C. B. N. S. 754 47, 589, 602, 638, 643 Cella, The, 13 P. D. 82 ; 57 L. J. Adm. 55 ; 59 L. T. 125 ; 26 "W. E. 640 684, 700 Celtic King, The, (1894) P. 175 ; 63 L. J. P. 37 ; 70 L. T. 652 41a Chapman v. G. "W. Ry. Co., 6 Q. B. D. 278 ; 49 L. J. Q. B. 420 ; 42 L. T. 252 ; 28 W. E. 666 ; 44 J. P. 363 474 Chapman v. Eoyal Netherland S. Nav. Co., 4 P. D. 157 ; 48 L. J. Ad. 449 ; 40 L. T. 433 ; 27 "W. E. 554 704 Chappel V. Comfort, 10 C. B. N. S. 802 ; 31 L. J. C. P. 58 ; 4 L. T. 448 ; 9 W. E. 694 ; 8 Jur. N. S. 177 63, 162, 637, 670, 671 Charles, The, L. E. 3 A. & E. 636 ; 26 L. T. 594 ; 21 W. E. 13 348 Charles AmeHa, The, L. E. 2 A. & E. 330 ; 38 L. J. Ad. 17 ; 19 L. T. 429 698 Charleton v. Cotesworth, E. & M. 175 587 Charlotte WyKe, The, 2 W. Eob. 495 324, 332, 351 Charlton, The, 73 L. T. 49 ; 72 L. T. 198 ; 11 E. 825 30, 31 Charpentier v. Dunn, 15 Sc. L. E. 726 226, 449 Chartered Mercantile Bank of India v. Netherland India S. NaT. Co., 9 Q. B. D. 118 ; 10 Q. B. D. 621 ; 52 L. J. Q. B. 220 ; 48 L. T. 646 ; 31 W. E. 445 ; 5 Asp. M. 0. 66 ; 47 J. P. 260 . . 56, 77, 88, 93, 101, 102, 210, 704, 705, 709 Chasoa, The, L. E. 4 A. & E. 446 ; 44 L. J. Ad. 17 ; 23 L. T. 838 . . 87, 88, 94, 99 Chase v. Westmore, 5 M. & S. 180 ; 2 Marsh. 346 654 Chatenay v. Brazilian Submarine Telegraph Co., (1891) 1 Q. B. 79 ; 39 W. E. 65 ; affirming, 63 L. T. 276 203, 212 Chattahoochee, The, 173 U. S. 540 103f, 704 Chaurand i>. Angerstein, 1 Peake, 61 , 169 Chavasse, Ex parte, Grazebrook, In re, 34 L. J. Ch. 17 ; 4 De G. & S. 655; 11 Jut. N. S. 400 ; 12 L. T. 249 ; 13 W. E. 627 245, 246 Cheerful, The, 11 P. D. 3 ; 55 L. J. Adm. 5 ; 54 L. T. 56 ; 34 W. E. 307 ; 6 Asp. M. C. 525 327, 333 Chetah, The, D. E. 2 P. C. 206 ; 38 L. J. Adm. 1 ; 19 L. T. 621 ; 17 W. E. 233 ; 6 Moore, P. C. C. N. S. 278 333 Chinnery v. Blackbume, 1 H. Bl. 117 (n.) ; 3 Dougl. 391 592, 595 Chioggia, The, (1898) P. 1; 66 L. J. P. 174; 77L.T.472; 8 Asp. 362. .317, 318 Christie V. Lewis, 2 B. & B. 410 ; 5 Moo. 211. .114, 161, 599, 655, 662, 676, 681 Christoffersen v. Hansen, L. E. 7 Q. B. 509 ; 41 L. J. Q. B. 217 ; 26 L. T. 647 ; 20 W. E. 626 649 Christy v. Eow, 1 Taun. 300 240, 296, 307, 568, 607 Chrystal v. Elint, 28 Fed. Eep. 472. (See The Irrawaddy) 436 Chundersein v. Eyan, 6 L. T. 559 504 Cito, The, 7 P. D. 5 ; 51 L. J. Adm. 1 ; 45 L. T. 663 ; 30 W. E. 836 ; 4 Asp. M. C. 468 307, 308, 556 City Bank «. Barrow, 5 A. C. 664; 43 L. T. 393 ». 504 City of Cambridge, The, L. E. 5 P. C. 451 ; L. E. 4 A. & E. 161 ; 43 L. J. Ad. U ; 30 L. T. 439 ; 22 W. E. 578 30, 31, 32 Citv of Chester, The, 9 P. D. 182 ; 53 L. J. Ad. 90 ; 51 L. T. 486 ; 33 "W. E. 104 332, 345 City of Lincoln, The, 15 P. D. 15 ; 59 L. J. Adm. 1 ; 62 L. T. 49 ; 38 •W-.E.345 .! 714, 717 City of Mecca, The, 5 P. D. 28 ; 6 P. D. 106 ; 60 L. J. Ad. 53 ; 44 L. T. 760 ; 4 Asp. M. C. 412 697 City of Peking, The, 15 A. C. 438 ; 59 L. J. P. C. 88 ; 63 L. T. 722 721 Clacevich v. Hutcheson, 25 So. L. E. 11 ; 15 Sess. Ca. (4th) 11 183, 462 XX TABLE OF CASES CITED. SECT. Clan Maodonald, The, 8 P. D. 178 ; 52 L. J. Ad. 89 ; 49 L. T. 408 ; 32 W. B. 154 • 461,475, 478 Clark t). BamweU, 12 How. 272 (U. S.) 13, 86 Clark V. Chambers, 3 Q. B. D. 327 ; 47 L. J. Q. B. 427 ; 38 L. T. 454 ; 26 W. R. 613 ''■' Clarke v. Dunraven, Earl of. (See The Satanita.) Clegg V. Levy, 3 Camp. 166 213 Clendaniel v. Tuckerman, 17 Barb. 184 544 CHfiEord V. Hunter, M. & M. 103 ; 3 C. & P. 16 18 Clifford V. Watts, L. E. 5 C. P. 577 ; 40 L. J. C. P. 36 ; 22 L. T. 717 ; 18 "W. B. 925 255 CHfton, The, 3 Hagg. 117 344 CUnk V. Hickie (1), 3 Com. Ca. 276 258o Clink V. Hiokie (2), 4 Com. Ca. 292 ; 3 Com. Ca. 280 258b, 258o Clink V. Eadford, (1891) 1 Q. B. 625 648, 649, 666, 667 CUpsham v. Virtue, 13 L. J. Q. B. 2 ; D. & M. 343 ; 5 Q. B. 265 ; 8 Jur. 32 230 Closmadeuo ». Carrel, 25 L. J. C. P. 216 ; 2 Jur. N. S. 474 ; 18 C. B. 36. . 120 Clyde Nav. Co. v. Barclay, 1 A. C. 790 ; 36 L. T. 379 32 Clymeue, The, (1897) P. 295 ; 66 L. J. P. 152 ; 76 L. T. 811 30 Coates V. Eailton, 6 B. & C. 422 ; 9 D. & B. 593 520 Cobban v. Downe, 5 Esp. 41 68, 251 Cochran v. Eetberg, 3 Esp. 121 169, 613 Cochrane v. Gilkison, 16 Sess. Ca. (2nd)-548 312 Cock V. Taylor, 13 East, 399 ; 2 Camp. 587 603 Cockbume v. Alexander, 18 L. J. C. P. 74 ; 6 C. B. 791 196, 263, 267 Cockey v. Atkinson, 2 B. & A. 460 448 Coggs V. Bernard, 2 Ld. Eaym. 909 ; 1 Sm. L. C. 199 2 Cohen v. S. E. Ey. Co., 2 Ex. D. 253 ; 1 Ex. D. 217 ; 46 L. J. Ex. 417 ; 46 L. J. Ex. 298 ; 36 L. T. 130 ; 35 L. T. 213 ; 25 W. E. 476 108, 212 Cohn V. Davidson, 2 Q. B. D. 455 ; 46 L. J. Q. B. 305 ; 36 L. T. 244 ; 25 W. B. 369 21, 291 Cole V. Meek, 33 L. J. C. P. 183 ; 9 L. T. 653 ; 12 "W. B. 349 ; 15 C. B. N. S. 795 265 Cole V. North Western Bank, L. E. 10 C. P»,254 ; 44 L. J. C. P. 233 ; 32 L. T. 733 ; 22 W. B. 861 490 Coleman v. Lambert, 5 M. & W. 602 604 Coleman v. Biches, 24 L. J. C. P. 125 ; 1 Jur. N. S. 596 ; 16 C. B. 104; 3 C. L. B. 795 69 CoUard v. S. E. Ey. Co., 30 L. J. Ex. 393 ; 4 L. T. N. S. 410 ; 9 W. B. 697 ; 7 H. & N. 79 ; 7 Jur. N. S. 960 726 CoKma, The, 82 Fed. Eep. 666 103d CoUeni). Wright, 26 L.J. Q. B. 147; 27 L. J. Q. B. 215 ; 3 Jur. N. S. 363; 4 Jur. N. S. 357 ; 8 E. & B. 647 129, 731 ColUer, The, L. E. 1 A. & E. 83 ; 12 Jur. N. S. 789 .'.....' 343 . CoUina ji. Lamport, 34 L. J. Ch. 196; 11 L. T. 497; 13 W. E. 283; 11 Jur. N. S. 1, ' 40, 692 Colombus, The, 3 W. Bob. 158 yjg Colt V. M'Mechan, 6 Johns. 160 g Columbian Ins. Co. v. Ashby, 13 Peters (U. S.) 331 387, 389, 434, 436, 437 Columbus, The, 80 L. T. 203 ; 8 Asp. 488 _' 30 Colvin V. Newberry, 1 CI. & E. 283 112, lie, 153, 165, 159 Commercial S.S. Co. v. Boulton, L. B. 10 Q. B. 346 ; 44 L. J. Q. B. 219 • 33 L. T. 707 ; 23 W. B. 854 ; 3 Asp. M. C. Ill ." 613' 631 CompanhiadeNayigacioalaPleohaii. Brauer, 168 (U. S.) 104..77 87 99* 103 Cosnor V. Smythe, 5 Taun. 654 27o' 630 TABLE OF CASES CITED. xxi SECT. Consett, The, 5 P. D. 229 ; 49 L. J. P. 24 ; 42 L. T. 33 728 Constable's Case, 6 Coke's Eep. 106 355 Constanoia, The, 2'W.Eob. 487; 10 Jur. 846. .211, 317, 318, 320, 394, 445, 485 Cook V. Jennings, 7 T. E. 381 '. 307, 547 Coombs V. Bristol & Exeter Ry. Co., 27 L. J. Er. 401 ; 3 H. & N. 510 . . . . 61 Cooper, Ex parte, McLaren, In re, 11 Ch. D. 68 ; 48 L. J. Bk. 49 : 40 L. T. 105; 27W. R. 518 615, 525 Cooper V. BeU, 34 L. J. Ex. 161 ; 12 L. T. 466 ; 3 H. & 0. 722 510 Cope V. Cordova, 1 Eawle, 203 469 Cope V. Doherty, 27 L. J. Ch. 600 ; 4 Jur. N. S. 699 ; 4 Kay & J. 367 ; 2 Dea. & J. 614 24, 26, 697 Cope V. Vallette Dry Dock Co., 119 U. S. Rep. (12 Davis) 625 322 Copenhagen, The, 1 C. Rob. 289 666, 559 Copin V. Adamson, L. R. 9 Ex. 345 ; 1 Ex. D. 17 ; 43 L. J. Ex. 461 ; 31 L. T. 242 ; 22 W. R. 658 ; 45 L. J. Ex. 15 ; 33 L. T. 33 ; 24 W. R. 85. . 697 Coriolanus, The, 15 P. D. 103 ; 59 L. J. Adm. 59 ; 63 L. T. 844 336 Cork DistiUeries Co. v. Or. S. W. Ry. Co., L. R. 7 H. L. 269; 8 Ir. E. C. L. 334 61, 484 Corkling v. Massey, L. R. 8 C. P. 392 ; 42 L. J. C. P. 153 ; 28 L. T. 636 ; 21 W. E. 680 143 Cormack v. Gladstone, 11 East, 347 285 Corry v. Robinson, Stevens on Stowage (5th), 153, 671 281 Cory V. Burr, 8 Q. B. D. 313 ; 9 Q. B. D. 463 ; 8 A. C. 393 ; 51 L. J. Q. B. 468 ; 52 L. J. Q. B. 657 ; 47 L. T. 181 ; 49 L. T. 78 ; 31 W. R. 894 ; 4 Asp. M. C. 559 : 5 Asp. M. 0. 109 .- 99 Cory V. Stewart, 2 Times L. E. 608 41 Cory V. Thames Ironworks Co., L. R. 3 Q. B. 181 ; 37 L. J. Q. B. 68 ; 17 L. T. 495 ; 16 "W. E. 457 714 Coulthurst V. Sweet, L. R. 1 C. P. 649 36, 37, 577, 582 " County of Lancaster " S.S. v. Sharp, 24 Q. B. D. 158 ; 59 L. J. Q. B. 22 ; 61 L. T. 692 605, 639 Courtney v. Cole, 19 Q. B. D. 447 ; 66 L. J. M. C. 141 ; 67 L. T. 409 ; 36 W. E. 8 30 Couturier v. Hastie, 5 H. L. C. 673 ; 25 L. J. Ex. 253 ; 2 Jur. N. S. 1241 . 137 Coupe Co. V. Maddick, (1891) 2 Q,. B. 413 ; 60 L. J. Q. B. 676 ; 65 L. T. 489 112 Coventina, The, 52 Eed. Eep. 156 ; 82 Coventry®. Gladstone, L. E. 6 Eq. 44 ; 37 L. J. Ch. 492 ; 16 W. E. 837. . 614 Coventry v. G. E. Ey. Co., 11 Q. B. D. 776 ; 52 L. J. Q. B. 694 69 Ooverdale «. Grant. (See .Grant v. Coverdale.) Covington iJ. Eoberts, 2 B. & P. N. E. 378 383 Cowasjee v. Thompson, 5 Moo. P. C. 165 ; 3 Moo. Ind. App. 422 60, 511 Cowdenbeath Coal Co. v. Clydesdale Bank, 22 Sess. Ca. (4th) 682 487, 511 Cox V. Bruce, 18 Q. B. D. 147 ; 56 L. J. Q. B. 121 ; 57 L. T. 128 ; 35 "W. E. 207 ; 6 Asp. Mar. C. 152 , 63, 69a Cox V. L. & N. W. Ey. Co., 3 E. & P. 77 14 Cox 1). May, 4 M. & S. 152 360,351, 352, 365, 394 Coxe V. Harden, 4 East, 211 ; 1 Smith, 20 492 Craig V. Delargy, 16 Sc. L. E. 751 ; 6 Sess Ca. (4th) 127 63, 73, 78 Craigs, The, 6 P. D. 186 ; 29 W. R. 446 345 Cranston v. MarshaU, 5 Ex. 395 ; 19 L. J. Ex. 340 61 Craihie, The, (1897) P. 178 ; 66 L. J. P. 93 ; 76 L. T. 534 26, 27 Craven ». Ryder, 6 Taun. 433; Holt, 100; 2 Marsh. 127 60, 491, 534 Crawford «>. Wilson, 1 Com. Ca. 154, 277 -...2588, 626 Crawshay v. Eades, 1 B. & C. 181 ; 2 D. & E. 288 515, 619 Crawshay v. Homfray, 4 B. & A. 50 '...,. 654 . XXll TABLE OF CASES CITED. BEOT. Creadon, The, 54 L. T. 880 27 Gressington, The, (1891) P. 162; 60 L. J. Adm. 25 87, 101 Crew V. Great Western S.S. Co., 4 Times R. 148 ; W. N. 1887, 161 . , . , . . 82 Crockett v. Dodge, 3 Fairf. 190 369 Crookewif *. Fletcher, 26 L. J. Ex. 153 ; 1 H. & N. 893 149, 219 Crooks V. Allan, 5 Q. B. D. 38 ; 49 L. J. Q. B. 201 ; 41 L. T. 800 ; 28 "W. K. 304 ; . 66, 80, 106, 373b, 442 Cropper v. Cook, L. R. 3 C. P. 194 ; 16 W. R. 696 184, 190 Crosby v. Fitoh, 12 Conn. 410 290 Cross V. Eglin, 2 B. & Ad. 106 171 Cross ». PagUano, L. E. 6 Ex. 9 ; 40 L. J. Ex. 18 ; 23 L. T. 420 ; 19 W. R 159 123, 173 Crouch V. Credit Fonoier of England, L. R. 8 Q. B. 374; 42 L. J. Q. B. 183 ; 29 L. T. 269 ; 21 "W. R. 946 194 Crouch V. G. W. Ry. Co., 27 L. J. Ex. 346 ; 26 L. J. Ex. 418 ; 3 Jur. N. S. 796 ; 2 H. & N. 491 473 Crouch V. L. & N..W. Ry. Co., 23 L. J. C. P. 73 ; 18 Jur. 148 ; 14 C. B. 265 ; 7 RaUw. Cas. 717 ; 2 C. L. R. 188 4, 730 Crow V. Armstrong, Stevens on Stowage (5tli), 607 272 Crow V. Falk, 15 L. J. Q. B. 183 ; 8 Q. B. 467 ; 10 Jur. 374 , 148 Crozier v. Smith, 1 M. & G. 407 ; 1 Scott, N. R. 338 550, 670 Crystal, The, (1894) A. C. 508 ; 63 L. J. P. 146 ; 71 L. T. 346 360 CuUen V. Butler, 5 M. & S. 461 ; 1 Stark. 138 ; 4 Camp. 289 86 Cullen V. Enowles, (1898) 2 Q. B. 380 ; 67 L. J. Q. B. 821 35 Cumbrian, The, 57 L. T. 206 ; 6 Asp. M. C. 151 352 Cuming V. Brown, 9 East, 506 ; 1 Camp. 104 538 Cunard v. Hyde, 29 L. J. Q. B. 6 ; 27 L. J. Q. B. 408 ; 5 Jur. N. S. 408 ; E. B. &E.670; 6 Jur. N. S. 14 237, 282 Cunard v. Van Oppen, 1 P. & F. 176 121 Cunliffe ». Whitehead, 3 Bing. N. C. 829 ; 6 Scott, 31 ; 6 D. P. C. 63 ; 3 Hodges, 182 487 Cunningham v. Collier, 4 Doug. 233 130 Cunningham v. Colvils, 26 So. L. R. 249 ; 16 Sess. Ca. (4th) 295 18, 79, 144 Cunningham v. Dunn, 3 C. P. D. 443 ; 48 L. J. C. P. 62 ; 28 L. T. 631 227, 228, 229, 247, 265, 616 Cunningham v. Guthrie, 26 Sc. L. R. 208 , , 64, 66a Curfew, The, (1891) P. 131 167, 249,271, 297 Curling v. Long, 1 B. & P. 634 242, 547 Currie v. M'Knight, (1897) A. C. 97 ; 66 L. J. P. C. 19 ; 75 L. T. 457 ; 8 Asp. 193 698, 707 Curtis V. Williamson, L. R. 10 Q. B. 67 ; 44 L. J. Q. B. 27 ; 31 L. T 678 • 23 W. R. 236 ; 132 Cusaok V. Robinson, 30 L. J. Q. B. 261 ; 4 L. T. 506 ; 9 W. R. 735 ; 1 B & S 299 ; 7 Jur. N. S. 642 617 Outhbert v. Gumming, 11 Ex. 406, 24 L. J. Ex. 198, 310 ; 1 Jur. N. S. 686. . 169 182, 198, 265, 266 Cutler V. North London Ry. Co., 19 Q. B. D. 64 ; 66 L. J. Q B 648 ■ 56 L. T. 639 ; 36 W. R. 674 '.....'. .6, 110 Cybele, The, 2 P. D. 224 ; 3 P. D. 8 ; 47 L. J. Ad. 86 ; 37 L.' T." 773 • 26 W. R. 345 '...332 Czech 11. Gen. S. Nav. Co., L. R. 3 C. P. 14 ; 37 L. J. G P 3 • 17 L T 246 ; 16 W. R. 130 '...'..... 77, 78, 95 D. Dabney v. New England, &o. Co., 14 Allen (Mass.) 300 3741, _ Da Costa r. Edmonds, 4 Camp. 142 ; 2 Chitt. 227 " jgo TABLE OF CASES CITED. xxiii SECT. Da Costa v. Newnham, 2 T. R. 407 392, 403, 405 Dahl V. Nelson (see Nelson v. Dahl) 240, 450, 462, 619, 623, 625, 628 DaMn v. Oxley, 33 L. J. C. P. 119 ; 10 L. T. 268 ; 12 W. R. 567 ; 15 C. B. N. S. 646 ; 10 Jur. N. S. 655 644, 549, 576 Dalbeattie SS. Co. i). Card, 57 Fed. Rep. 304 621 Dale V. Hall, 1 Wils. 282 3, 5, 10 DairOrso ». Mason, 4 Sess. Ca. (4th) 419 460, 624b, 628 Dalton V. Irwin, 4 C. & P. 289 .' 121 Dalyell v. Tyrer, 28 L. J. Q. B. 52 ; 5 Jur. N. S. 335 ; E. B. & E. 899 114 Daniels v. Harris, L. R. 10 C. P. 1 ; 44 L. J. 0. P. 1 ; 31 L. T. 408 ; 23 "W. R. 86 19, 281 Dannebrog, The, L. R. 4 A. & E. 386 ; 44 L. J. Ad. 21 ; 31 L. T. 759 ; 23 W. R. 419 688 Danube and Black Sea Ry. Co. i-. Xenos, 31 L. J. C. P. 284 ; 5 L. T. 527 ; 10 W. R. 320 ; 13 C. B. N. S. 825 ; 8 Jur. N. S. 439 270 Danzig, The, 32 L. J. Ad. 164 ; 9 E. T. 236 ; B. & L. 112 686 D'Aro V. L. & N. W. Ry. Co., L. R. 9 C. P. 325 ; 30 L. T. 763 : 22 W. R. 919 103 Daring, The, L. R. 2 A. & E. 260 ; 37 L. J. Ad. 29 445 DarreU v. Tibbitts, 5 Q. B. D. 560 ; 50 L. J. Q. B. 33 ; 42 L. T. 797 ; 29 W. R. 66; 44 J. P. 695 702 Davidson v. Burnand, L. R. 4 C. P. 117 ; 38 L. J. C. P. 73 ; 19 L. T. 782 ; 17 W. R. 121 . . . . '. 91 Davidson ». Gwynne, 12 East, 381 151, 176, 177, 231, 268, 447 Davies v. MoVeagh, 4 Exch. 268; 48 L. J. Exeh. 686; 28 W. R. 143. .623, 624 Davis V. Bowsher, 5 T. R. 488 192 Davis «. Garrett, 6 Bing. 716; 4 M. & P. 540 16, 287 Davis V. James, 5 Burr. 2680 61 Davis V. Johnston, 4 Sim. 539 38 Davisi!. L. &N. W. Ry. Co., 32L. T. O. S. 148 : 718 Davis V. Reynolds, 4 Camp. 267 ; 1 Stark. 115 500, 634 Dawes v. Peek, 8 T. R. 330 ; 3 Esp. 12 61 Dean v. Hogg, 10 Bing. 345 ; 4 M. & Scott, 188 114 Dean v. Hornby, 23 L. J. Q. B. 129 ; 18 Jur. 623 ; 3 E. & B. 180 ; 2 C. L. R. 1519 89 De Bay, The, 8 A. C. 559 ; 52 L. J. P. C. 67 ; 49 L. T. 414 344, 345 De Cuadra v. Swann, 16 C. B. N. S. 772 302 Dederer v. Delaware Ins. Co., 2 Wash. C. C. 61 99 Deeze, Ex parte, 1 Atk. 228 192 Defeel V. BrocHebauk, 3 Bligh. 561 ; 4 Price, 36 221 De Hart ». Stevenson, 1 Q. B. D. 313 ; 45 L. J. Q. B. 675 ; 24 W. R. 367 35 De la Vega v. Vianna, 1 B. & Ad. 284 697 Delaurier v. WyUie, 27 So. L. R. 148 ; 17 Sess. Ca. (4th) 167 66a, 67, 160, 705 Delaware, The, 14 Wall. 579 ; 161 XT. S. 459 56, 103f, 164, 281 Delta, The, 1 P. D. 393; 46 L. J. P. Ill; 35 li. T. 376; 25 W. R.46.... 697 De Mattos v. Gibson, 28 L. J. Ch. 498 ; 4 De G. & J. 276 39 Denholm v. Halmoe, 26 So. L. R. 112 69, 206 Dent V. Smith, L. R. 4 Q. B. 414 ; 38 L. J. Q. B. 144 ; 20 L. T. 868 ; 17 W. R. 646 89 De Rothschild v. Royal Mail S. Packet Co., 21 L. J. Ex. 273 ; 7 Ex. 734 . . 86, 94 De SUvale i". Kendal, 4 M. & S. 37 303, 562, 564 Deslandes v. Gregory, 29 L. J. Q. B. 93 ; 30 L. J. Q. B. 36; 8 W. R. 585; 2 E. & E. 602 ; 6 Jur. N. S. 651 62, 128 XXI V TABLE OF CASES CITED. SECT. De Vaux v. Salvador, 4 A. & E. 420 ; 6 N. & M. 713 ; 1 H. & "W. 761 ; 5 L. J. K. B. N. S. 134 406 De Wutz V. Hendricks, 2 Bing. 314 ; 9 Moore, 586 216 Dewell V. Moxon, 1 Taun. 390 43 Diana, The, 1 "W. Bob. 131; 5 0. Bob. 67 .....32, 643 Dick V. Badart, 10 Q. B. D. 387 ; 48 L. T. 391 ; 5 Asp. M. C. 49 ; 47 J. P. 422 464 Dick V. Lmnsden, 1 Peake, N. P. C. 189 .' . 600, 634 Dickenson v. Jardine, L. E. 3 C. P. 639 ; 37 L. J. C. P. 321 ; 18 D. T. 717; 16 W. R. 1169 196, 416 Dickinson v. Kitchen, 8 E. & B. 789 40 Dickinson v. Lano, 2 E. & F. 188 61, 187, 602, 638 Dickinson v. Martini, 1 Sess. Ca. (4th) 1185 629 Dickson V. Buchanan, 13 Sc. L. fl. 401 649 Dickson «;. Gt. N. By. Co., 18 Q. B. D. 176 4, 110 Dictator, The, (1892) P. 304 684, 698 Diederichsen v. Farquharson, (1898) 1 Q. B. 160 ; 67 L. J. Q. B. 103 ; 77 L. T. 543 ; 8 Asp. 333 156, 160 Dimech v. Corlett, 12 Moo. P. C. 199 143, 177, 230, 270, 718, 720, 722 Dirks V. Richards, Car. & M. 626 ; 4 M. & G. 574 ; 6 Scott, N. B. 534 ; 6 Jur. 562 679 Dixon V. Baldwen, 5 East, 175 522 Dixon V. Heriot, 2 F. & P. 760 144 Dixon e. MetropoUtan Board of Works, 7 Q. B. D. 418; 60 L. J. Q. B. 772 ; 45 L. T. 312 ; 30 "W. E. 83 ; 46 J. P. 4 8 Dixon V. Reid, 5 B. & A. 597 ; 1 D. & R. 207 99 Dixon V. Royal Exchange Shipping Co., Times, 20th Dec, 1884 ; Times, 19th May, 1885 (see Royal Exchange Shipping Co. v. Dixon) . . 15, 77, 281, 379 Dixon ». Sadler, 6 M. & W. 405; 8 M. & W. 895; 9 L. J. N. S. Ex. 48,. 18, 19b Dixon V. Tates, 6 B. & Ad. 313 ; 2 N. & M. 177 517 Dobbin v. Thornton, 6 Esp. 16 639, 643 Dobell V. Green, (1900) 1 Q. B. 526 ; 4 Com. Ca. 85 257b, 258o DobeU •!). Rossmore, (1895) 2 Q. B. 408 ; 64 L. J. Q. B. 777 ; 73 L. T. 74 103d Dobell V. Watts, 7 T. L. R. 426, 622 608. Dobson V. Droop, M. & M. 441 ; 4 C. & P. 112 640, 642 Dobson D. Wilson, 3 Camp. 480 ; 395^ 445 Dodson V. Wentworth, 12 L. J. C. P. 69 ; 6 Jur. 1066 ; 4 M. & G. 1080; 5 Scott, N.R. 821 517 Domett V. Beckford, 5 B. & Ad. 621 602 Don V. Lippman, 6 CI. & F. 1 , 697 Donaldson, The J. P., 167 U. S. 599 .".',"374b Donaldson v. Forster, Abbott (5th) 208 , 262 Donaldson v. Little, 10 Sess. Ca. (4th) 413 148 Doolan v. M. Ry. Co., 2 A. C. 792 ; 37 L. T. 317 ; 25 W. R. 882 28, 29, 108,' 116 Dormont v. Fumess Ry. Co., 11 Q. B. D. 496 ; 52 L. J. Q. B. 331 ; 49 L. T. 134; 47 J. P. 711 '....360 Dorothy Foster, The, 6 C. Rob. 88 !!'.".."."."!*. 361 Douglas, The, 7 P. D. 151 ; 61 L. J. Ad. 89; 47 L. T. 502; 30 W. R. 692*; 5 Asp. M. C. 15 _' 3gQ Douglas V. Cooksey, Ir. Rep. 2 Eq. 311 gig Douglas V. Kemble, 3 Bing. 383 ; 11 Moo. 251 g03 Douglas V. RuBseU, 4 Sim. 524 ; 1 Mylue & K. 488 , 595 TABLE OF CASES CITED. XXV SECT. Dowse, The, L. R. 3 A. & E. 135 ; 39 L. J. Ad. 46 ; 22 L. T. 627 ; 18 W. R. 1008 693 Dowthorpe, The, 2 W. Rob. 73 317 Dracaohi v. Anglo-Egyptian Nav. Co., L. R. 3 0. P. 190 ; 37 L. J. C. P. 71; 17L. T. 472; 16 W. R. 277 66, 497 Dresser v. Bosanquet, 32 L. J. Q. B. 57, 374 ; 11 W. R. 849 ; 9 Jur. N. S. 458 ; 4 B. & S. 460 192 Drew t). Bird, M. & M. 156 602 Drinkwater v. The Brig Spartan, Parsons' Shipping, Vol. I., pp. 174— 177. . 663 Druid, The, 1 W. Rob. 391 707 Dry V. Boswell, 1 Camp. 329 49 Duokett V. Satterfield, L. R. 3 C. P. 227 ; 37 L. J. C. P. 144 .... 169, 182, 265 Duero, The, L. R. 2 A. & E. 393 ; 38 L. J. Ad. 69 ; 22 L. T. 37 68, 101 Dufe V. Iron, &o. Co., 19 Seas. Ca. (4th) 199 714 Dufouroet v. Bishop, 18 Q. B. D. 373 ; 57 L. J. Q. B. 497 ; 56 L. T. 633 ; 6 Asp. Mar. C. 109 , 666 Duke of Manchester, The, 2 W. Rob. 470 ; 6 Moo. P. 0. 90 346 Dumfries, The, Swab. 63 709 Dunbeth, The, (1897) P. 133 ; 66 L. J. P. 66 ; 76 L. T. 668 16, 286 Duncan v. Dundee, Perth and London Shipping Co., 15 Sc. L. R. 429 ; 5 Sess. Ca. (4th) 742 324a, 352 Duncan v. Topham, 18 L. J. C. P. 310 ; 8 C, B. 255 466 Dunlop V. BaUour, (1892) 1 Q. B. 507 ; 61 L. J. Q. B. 354 ; 66 L. T. 455 614, 648, 649, 667 Donlop V. Lambert,- 6 CI. & P. 600 61 Durham City, The, 14 P. D. 85 ; 58 L. J. Adm. 46 ; 61 L. T. 339 ; 6 Asp. M. C. 411 572, App. B. Duthie V. HUton, L. R. 4 C. P. 138 ; 38 L. J. C, P. 93 ; 19 L. T. 286 ; 17 W. R. 55 545, 549 Dutton V. Powles, 30 L. J. Q. B. 169 ; 31 L. J. Q. B. 191 ; 6 L. T. 224 ; 10 W. R. 408 ; 1 Asp. M. C. 9 . . . : 284 Dwina, The, (1892) P. 58 ; 61 L. J. P. 71 ; 66 L. T. 862 346 E. E. A. Shores, The, 73 Feb. Rep. 324 103e Earl of AucHand, The, 30 L. J. Ad. 121 ; 5 L. T. 458 ; 10 W. R. 124 ; Lush. 387 ; 15 Moo. P. C. C. 384 30 Earle v. Rowecroft, 8 East, 126 99 East India Co. v. Tod, 1 Brown's P. C. 405 104 Edenbridge, Owners of, v. Green. (See The Rutland.) Edenmore, The, (1893) P. 79; 69 L. T. 230 344 Edie V. East India Co., 2 Burr. 1226 ; 1 ,W. Bl. 295 188, 191, 487 Edmond, The, 29 L. J. Ad. 76 ; 30 L. J. Ad. 128 ; Lush. 57, 211 .... 314, 689 Edward Hawkins, The, 31 L. J. Ad. 46 ; 15 Moo. P. C. 486 333 Edward Oliver, The, L. R. 1 A. & E. 379 ; 36 L. J. Ad. 13 ; 16 L. T. 575. .317 Edwards v. Brewer, 2 M. & W. 376 619, 527 Edwards ». Sherratt, 1 East, 604 14 Elbinger, &o. v. Claye, L. R. 8 Q. B. 313 62 Elbinser-Actiengesellsohaft, &c. d. Armstrong, L. R. 9 Q. B. 473 ; 43 L. J. Q. 1.211; 30L. T. 871; 23 W. R. 127, 714, 715,716 Eleanora Charlotta, The, 1 Hagg. 156 324 EKn The, 8 P. D. 39, 129 ; 61 L. J. Ad. 77; 52 L. J. Ad. 45 ; 49 L. T. 87; 31W.R.736 317 Eliza, The, 3 Hagg. 87 601 XXVI TABLE OF CASES CITED. SECT. Eliza Cornish, The, 1 Sp. Ecc. & Ad. 36 ; 17 Jur. 738 -. 301 Eliza Lines, The, 61 Ped. Rep. 308 308, 373b, 445, 654, 561, 651 Elizabeth and Jane, The, 1 W. Eob. 278 38 Ella Constance, The, 33 L. J. Ad. 191 344 Ellen V. Topp, 20 L. J. Ex. 241 ; 6 Ex. 424 : 15 Jur. 451 177 EUershaw ». Magniac, 6 Ex. 670 492 Elliott V. Lord, 48 L. T. 642 ; 52 L. J. P. C. 23 ; 5 Asp. M. C. 63 . . . .252, 617 Elhott V. Eossell, 10 Johns. (N. Y.) 1 3, 5 EUis V. Hunt, 3 T. R. 464 , 509 EUis V. Turner, 8 T. E. 531 287 Emancipation, The, 1 W. Eob. 124 312 Emerald, The, (1896) P. 192 ; 65 L. J. P. 69 ; 74 L. T. 645 360 EmiHen Marie, The, 32 T. L. 436 ; 44 L. J. Ad. 9 ; 2 Asp. M. C. N. S. 514 63, 69, 70, 71, 152, 166,467, 468, 686, 696 Emily, The (In re Meyer), 74 Fed. Eep. 881 103g, 292a Emma, The, 3 W. Eob. 151 ; 34 L. T. 742 344, 350, 394 Empire of Peace, The, 39 L. J. Ad. 12; 21 L. T. 763 310, 314 Empire Transp. Co. v. Philadelphia, &c. Co., 77 Fed. Eep. 919 612a, 616 Empress Eugenie, The, JiUsh. 138 719 Empusa, The, 5 P. D. 6 : 48 L. J. Ad. 36 ; 41 L. T. 383 ; 28 W. E. 263. . 27 Energie, The, L. E. 6 P. C. 306 ; 44 L. J. Ad. 25 ; 32 L. T. 679 ; 23 W. E. 932 476, 476, 680 England, The, 12 P. D. 32 ; 66 L. J. Adm. 115 ; 66 L. T. 896 ; 35 W. E. 367 36, 38 Eolides, T^he, 3 Hagg. 367 718 Erasmo Treglia v. Smith's Timber Co., 1 Com. Ca. 360 449,' 455, 466, 644 Erato, The, 13 P. D. 163 345 Eriohsen v. Barkworth, 27 L. J. Ex. 472 ; 28 L. J. Ex. 95 ; 3 H. & N. 601 ; 894 ; 5 Jur. N. S, 617 156, 609, 644, 683 Erskine v. Adeane, L. E. 8 Ch. 756 ; 42 L. J. Ch. 835 ; 29 L. T. 234 ; 21 W. R. 802 164 Esposito V. Bowden, 27 L. J. Q. B. 217 ; 24 L. J. Q. B. 10 ; 7 El. & Bl. 763 ; 3 Jur. N. S. 1209 23, 237, 239, 243 Etona, The, 64 Fed. Eep. 880 ; 71 Fed. Rep. 895 103e Ettrick, The, 6 P. D. 127 ; 50 L. J. Ad. 65 ; 54 L. T. 399 ; 4 Asp. M. C. 465 346, 354, 359, 373a, 373b E. U., The, 1 Sp. E. 63 325, 326, 333, 334 Eugenie, The, L. E. 4 A. & E. 123; 29 L. T. 314; 21 W. E. 957 317 Euripides, The, 71 Fed. Eep. 728 88 Euterpe S.S. Co. i;. Bath, 2 Com. Ca. 196 475 Evans v. Bullock, 38 L. T. 34 731 Evans v. Foster, 1 B. & Ad. 118 643 Evans V. Hutton. 12 L. J. C. P. 17 ; 6 Jur. 1042 ; 4 M. & G. 954 ; 2D. N. S. 600 ; 6 Scott N. E. 670 23 Evans V. Martlett, 1 Ld. Eaym. 271 61 Everard v. Kendall, L. E. 6 C. P. 428 ; 39 L. J. C. P. 234 ; 22 L. T 408 ■ 18 W. R. 892 .'693 Ewbank v. Nutting, 7 C. B. 797 294, 300, 727 Exeter, The, 1 C. Eob. 174 ; 2 C. Rob. 261 ' 317 Exeter Carrier, The, cited 2 Ld. Eaym. 866 652 Express, The, L. E. 3 A. & E. 597 ; 41 L. J. Ad. 79 ; 26 L. T. 956 . ,209, 289 TABLE OF CASES CITED. XXVU F. SECT. Eairbridge v. Pace, 1 C. & K. 317 249, 621 Faitt V. East India Co., 4 B. & A. 630 152, 655, 658, 674 Faithful, The, 31 L. J. Ad. 81 310 FaUc, Ex parte, Kiell, la re, 14 Ch. D. 446 ; 42 L. T. 780 ; 28 "W. E. 785 ; 4 Asp. M. C. 280 541 Falke v. Fletcher, 34 L. J. C. P. 146 ; 13 W. E. 346 ; 11 Jur. N. S. 176 ; 18C. B. N. S. 403 69,269 Falkner v. Earle, 32 L. J. Q. B. 124 ; 7 L. T. 672 ; 11 W. B. 307 ; 3 B. & S. 360 ; 9 Jur. N. S. 847 196 Fanohou, The, 5 P. D. 173 ; 60 L. J. Ad. 3 ; 42 L. T. 483 ; 29 W. E. 339 40, 41 Farina v. Home, 16 M. & W. 119 ; 16 L. J. Ex. 73 501 Famell v. Thomas, 5 Bing. 188 ; S. 0. nom. Palmer v. Thomas, 2 M. & P. 296 612 Famley Hall, The, 46 L. T. 216 ^ 344 Farrant v. Barnes, 31 L. J. 0. P. 137 ; 11 C. B. N. S. 553 ; 8 Jur N. S. 868 . , 278 Farrar v. Adams, Buller N. P. 69 12 Favourite, The, 2 "W. Bob. 256 ; 6 L. T. 773 332 Fawkes v. Lamh, 31 L. J. Q. B. 98 ; 8 Jur. N. S. 386 130, 131, 183 Fay V. Alliance Ins. Co. , 16 Gray, 455 544 Fearon v. Bowers, 1 H. Bl. 364 (n.) 502 Featherston v. Wilkinson, L. E. 8 Ex. 122 ; 42 L. J. Ex. 78 ; 28 L. T. 448 ; 21 W. E. 422 723 Feise v. Wray, 3 East, 93 496, 625, 527 Felix, The, L. E. 2 A. & E. 273 ; 37 L. J. Ad. 48 ; 18 L. T. 687 ; 17 W. E. 102 64, 249, 460, 688 Fenton v. Dublin S. Packet Co., 8 A. & E. 836 ; 1 P. & D. 103 114 Fenwick i>. Boyd, 16 M. & "W. 632 -. 553 Fenwiok». Eobinson, 3 C. & P. 323 423, 424 Fenwick v. Sohmalz, L. E. 3 C. P. 313 ; 37 L. J. C. P. 78 ; 18 L. T. 27 ; 16W. E. 481 252, 253, 257a, 268 Ferguson, Ex parte, L. E. 6 Q. B. 280 ; 40 L. J. Q. B. 106 ; 24 L. T. 96 ; 19 W. E. 746 24 TeiTO, The, (1893) P. 38 ; 62 L. J. P. 48 ; 68 L. T. 418 ; 7 Asp. 309. . 101, 103e FigHa Magffiore, The, L. E. 2 A. & E. 106; 37 t. J. Ad. 62; 18 L. T. 632 ....:.... 66, 164,691 Finlay v. Liverpool & Great "Western S.S. Co., 23 L. T. 251 . .67, 83, 483, 491 Firefly, The, Swab. 240 348 Fisher v. Calder, 1 Com. Ca. 456 69b Fisher v. Val de Travers Asphalte Co., 1 C. P. D. 511 ; 45 L. J. C. P. 479 ; 36 L. T. 366 731 Five Steel Barges, 15 P. D. 142 ; 69 L.. J. Adm. 77 ; 63 L. T. 499 ; 39 W. E. 127 324a, 339, 362 Flamborough, The, 69 Fed. Eep. 470 103d Flaveno v. Bennett, 11 East, 41 505 Fleece, The, 3 W. Bob. 278 351, 352 Fleet V. Merton, L. E. 7 Q. B. 126 ; 41 L. J. Q. B. 49 ; 26 L. T. 181 ; 20 W. B. 97 131. 196 Fletcher v. Alexander, L. E. 3 0. P. 375 ; 37 L. J. C. P. 193 ; 18 L. T. -! 432; 16 W. E. 803 415, 416, 418, 440 Fletcher v. Braddiok, 2 B. & P. K. E. 182 114 Fletcher v. Gillespie, 3 Bing. 636 ; 11 Moo. 547 260, 261, 463 XXviii TABLE OF CASES CITED. SECT.- Fletcher v. IngHs, 2 B. & A. 315 87 Fletcher v. Tayleur, 25 L. J. 0. P. 66 ; 17 C. B. 21 714 Flora, The, L. B. 1 A. & E. 45 ; 35 L. J. Ad. 15 ; U L. T. 192 601 Florence, The, 16 Jur. 672 ••• ^35 Flying Fish, The, 34 L. J. Ad. 113 ; 12 L. T. 619 718 Fortes v. Cochrane, 2 B. & C. 448 ; 3 D. & B. 679 214 Ford V. Cotesworth, L B. 5 Q. B. 544 ; L. K. 4 Q. B. 127 ; 10 B. & S. 991 ; 39 L. J. Q. B. 188 ; 23 L. T. 165 ; 18 W. R. 1169 . . 150, 180, 227, 228, 229, 462, 615, 616 Forest S.S. Co. ». Iberian Iron Ore Co., 5 Com. Ca. 83 631 Forshaw v. Chabert, 3 B. & B. 158 ; 6 Moo. 369 18 Forster v. Bates, 12 M. & W. 226 125 Fortuna, The, Bdw. Ad. 56 556 Forward v. Pittard, 1 T. K. 27 2, 8 Foster?!. Colby, 28 L. J. Ex. 81 ; 3 H. & N. 705 152, 661, 668 Foster v. Frampton, 6 B. & C. 107 ; 9 D. & E.. 108 ; 2 C. & P. 469 513 Fowler v. Knoop, 4 Q. B. D. 299 ; 48 L. J. Q. B. 333 ; 40 L. T. 180 ; 27 W. K. 299 . : 64, 636, 640 Fox V. Nott, 30 L. J. Ex. 260 ; 6 H. & N. 637 66, 602 Fragano v. Long, 4 B. & C. 219 ; 6 D. & R. 283 61, 68, 251 France v. Gaudet, L. E.. 6 Q. B. 199 ; 40 L. J. Q. B. 121 ; 19 W. E. 622. . 714, 728 Francesco D.Massey, L. E. 8 Ex. 101 ; 42 L. J. Ex. 76 ; 21 W-E. 440. .647, 667 Francis and EUza, The, 2 Dods. 117 335 Franconia, The, 3 P. D. 164 ; 39 L. T. 57 ; 27 W. E. 128 , 26 Eraser v. Marsh, 13 East, 238 ; 2 Camp. 617 45 Eraser v. Telegraph Construction Co., L. R. 7 Q. B. 566; 41 L. J. Q. B. 249; 27L. T. 373; 20 "W. E. 724 66, 139 Eraser v. Witt, L. E. 7 Ex. 64 ; 19 L. T. 440 ; 17 W. E. 92 611 Frayea v. "Worms. (See Trayes ». Worms.) Frazer v. Cuthbertson, 6 Q. B. D. 93 ; 60 L. J. Q. B. 277 ; 29 W. E. 396. . 34, 36, 37 Frederick, The, 1 W. Eob. 16 ; 1 Hagg. 211 337 Frederick Molke, The, 1 C. Kob. 85 244 Freedom, The, L. E. 3 P. C. 594 ; 24 L. T. 452 ; 38 L. J. Ad. 25 . . 13, 16, 66, 73, 75, 86, 88, 90, 95, 690 Freeman v. East India Co., 5 B. & A. 617 ; 1 B. & E. 234 301 Freeman v. Bead, 4 B. & S. 174 ; 10 Jur. N. S. 149 ; 8 L. T. 468 ; 11 W. E. 802 671a Freeman v. Taylor, 8 Bing. 124 ; 1 M. & Scott, 182 144, 231 French v. Gerber, 1 C. P. D. 737 ; 2 C. P. D. 247 ; 46 L. J. C. P. 320 ; 36 L. T. 350 ; 25 W. E. 355 649, 650 French v. Newgass, 3 C. P. D. 163 ; 47 L. J. C. P. 361 ; 38 L. T. 164; 26 W. E. 430 140 Frey, The, 92 Fed. Eep. 667 103a, 103d, 103e Frost V. Knight, L. R. 7 Ex. Ill ; L. E. 6 Ex. 322 ; 41 L. J. Ex. 78 ; 26 L. T. 77 ; 20 W. E. 471 719 Fry V. Chartered Mercantile Bank, L. R. 1 C. P. 689 ; 35 L. J. C. P. 306 ; 14L. T. 709; 14 W. R. 920 156, 668, 669 Fulham, The, (1899) P. 261 ; 68 L. J. P. 75 ; 81 L. T. 19 ; 8 Asp. 659 329 FuUagsen v. WaUord, 1 Cab. & EU. 198 578 Furness v. Eorwood, 77 L. T. 95 ; 2 Com. Ca. 223 252, 267, 267a Furness v. Tennant, 66 L. T. 635 265, 272 Furness v. White, (1895) A. C. 40 ; (1894) 1 Q. B. 483 ; 63 L. J. Q. B. 267 ;' 70 L. T. 463 476, 603 FusiKer, The, 34 L. J. Ad. 25 ; 3 Moo. P. C. N. S. 61 ; 12 L. T. 186 • 13 W. R. 592 ; 11 Jur. N. S. 289 329, 331, 360 TABLB OF CASES CITED. XXIX a. SECT. Gabarron v. Ereeft, L. R. 10 Ex. 274 ; 44 L. J. Ex. 238 ; 33 L. T. 365 ; 24 W. R. 146 485, 492 Gabay v. Lloyd, 3 B. & C. 793 ; 6 D. & R. 641 89, 185 Gadd V. HougKton, 1 Ex. D. 357 ; 46 Li J. Ex. 71 ; 35 L. T. 222 ; 24 W. R. 975 130 Gaetano and Maria, The, 7 P. D. 137 ; 61 L. J. Ad. 67 ; 46 L. T. 835 ; 30 W. R. 766; 4 Asp. M. C. 470 42, 211, 213, 301, 310 Gage V. Libby, 14 Alien, 261 376, 378, 413a Gage V. TirreU, 9 AUen, 299 (Mass.) 3, 5, 74 Gairdner v. Senhouse, 3 Taun. 16 285 Galatea, The, Swab. 349 ; 4 Jur. N. S. 1064 338, 339 Gandy v. Gandy, 30 Ch. D. 57 ; 7 P. D. 168 ; 51 L. J. Adm. 41 ; 46 L. T. 607 ; 30 W. R. 673 ; 691 Gardiner ». Maofarlane, 26 So. L. R. 492; 16 Sees. Ca. (4tli) 664.. 648, 649, 667 Gardiner v. Maofarlane (2), 20 Sess. Ca. (4th) 414 257a, 267b, 258a, 614 Gardner v. Cazenove, 26 L. J. Ex. 17 ; 1 H. & N. 423 592 Gardner ». Trechmann, 15 Q. B. D. 164 ; 54 L. J. Q..B. 515 ; 63 L. T. 518 ; 6 Asp. M. C. 558 153, 160, 656, 663, 668, 669 Garrett v. Melhuish, 4 Jur. N. S. 943 549 Garriock v. Walker, 1 Sess. Ca. {4th) 100 295 Garside v. Trent, &o. Nav. Co., 4 T. R. 681 472 Garston Co. v. HioMe, 15 Q. B. D; 580 ; 53 L. T. 795 ; 5 Asp. M. C. 499. . 448, 567 Garston Co. ». HicHe (2), 18 Q. B. D. 17 ; 86 L. J. Q. B. 38 ; 56 L. T. 879 ; 36W. R. 33 84, 88a, 160, 686 Garton v. Bristol and Exeter Ry. Co., 30 L. J. Q. B. 273 ; 7 Jur. K. S. 1234 ; 1 B. & S. 112 ; 9 W. R. 734 4 Gas iloat "Whitton No. 2, (1897) A. C. 337; (1896) P. 42 ; (1895), P. 301 ; 66 L. J. P. 99 ; 76 L. T. 663 ; 4 Asp. 110 24, 322, 366 Gatliffe v. Bourne, 4 Bing. N. C. 314 ; 3 M. & G. 643 ; 7 M. & G. 860 ; 11 CI. &F. 45; 5 Scott, 667 467, 468,. 471 Gauntlet, The, 3 W. Rob. 82 314 Gazelle, The, 2 W. Rob. 279 609 Gee V. L. & T. Ry. Co., 30 L. J. Ex. 11 ; 3 L. T. 328; 9 "W. R. 103 ; 6 H. &N. 211 714, 716 Geipel v. Smith, L. R. 7 Q. B. 404 ; 41 L. J. Q. B. 163 ; 26 L. T. 361 ; 20 W. R. 332 82, 160, 232, 233, 246 Gemma, The, (1899) P. 285 ; 68 L. J. P. 110 ; 81 L. T. 379 684 General Iron Screw Collier Co. v. Schurmanns, 29 L. J. Ch. 877 ; 4 L. T. 138; 8W. R. 732; IJ. & H. 180; 6 Jur. N. S. 883 24, 697 General Palmer, The, 2 Hagg. 176 338 General S. Nav. Co. v. British and Colonial S. Nav. Co., L. R. 3 Ex. 330 ; L. R. 4 Ex. 238 ; 38 L. J. Ex. 97 ; 20 L. T. 681 ; 17 W. R. 741 30, 31 General S. Nav. Co. ®. Slipper, 31 L. J. C. P. 185 ; 6 L. T. 641 ; 10 W. R. 316 ; 11 C. B. N. S. 493 ; 8 Jur. N. S. 821 260 Georg Dumois, The, 88 Fed. Rep. 537 103o George Dean, The, Swab. 290 362 Geraldes v. Donison, Holt, 346 576 Gertrude, The, 30 L. J. Ad. 130 324 Gibbons v. Buisson, 1 Bing. N. C. 283 ; 1 Scott, 133 544 Gibbes, Ex parte, 1 Ch. D. 101 ; 45 L. J. Ch. 10 ; 33 L. T. 479 ; 24 W. R. 298 517 Gibbon 0. Mendez, 2 B. & Aid. 17 670 Gibbon v. Paynton, 4 Burr. 2298 729 C— C. G XXX TABLE OF CASES CITED. SECT. Gibbs V. Charleton, 26 L. J. Ex. 321 43 Gibbs V. Grey, 26 L. J. Ex. 286 ; 3 Jur. N. S. 543 ; 2 H. & N. 22 . . . .305, 306 Gibbs V. Potter, 11 L. J. Ex. 376 ; 6 Jur. 586 ; 10 M. & "W. 70 24 Gibson J). Carruthers, 8 M. & W. 320 506 Gibson V. Crick, 31 L. J. Ex. 304 ; 6 L. T. 392 ; 10 W. E. 527 ; 1 H. & C. 142; 2F. &F. 766 121, 190 Gibson v. Ingo, 6 Hare, 112 689, 590, 595 Gibstai V. Small, 4 H. L. Cas. 353 ; 17 Jur. 1131 ; 1 0. L. E. 363 18 Gibson v. Sturge, 24 L. J. Ex. 121 ; 3 0. L. K. 421 ; 1 Jur. N. S. 259 ; 10 Ex. 622 676, 579 Gifford V. Dishington, 8 So. L. E. 665 271 Gilbert v. Gnignon, L. E. 8 Ch. 16 ; 27 L. T. 733 ; 21 W. E. 281 ... .489, 503 . GiUdson v. Middleton, 26 L. J. C. P. 209 ; 2 C. B. N. S. 134 . . 156, 660, 663, 668 Gill«!. Browne, 53 Fed. Eep. 394,, 197, 223 Gill V. M. S. & L. Ey. Co., L. E. 8 Q. B. 186 ; 42 L. J. Q. B. 89 ; 28 L. T. 587; 21 W. E. 525 77, 107 Gillespie v. Thompson, 6 E. & B. 477 (n.) ; 2 Jur. N. S. 712 86, 95, 273 GiUingham v. Dempsey, 12 S. & E. 188 (U. S.) ; Ang. Carr. ... 482 727 Gilroy v. Price, (1893) A. C. 56 ; 68 L. T. 302 ; 7 Asp. 314 18, 79, 102a Gladstone v. Birley, 2 Mer. 401 ; 3 M. & S. 205 547, 658, 659 Glaholm v. Hays, 10 L. J. C. P. 98 ; 2 M. & G. 257j 2 Scott, K. E. 471 ; 1 Wm. Saund. 564 .' 219 Glamorgansbire, The, 13 A. C. 454 ; 59 L. T. 572 ; 6 Asp. Mar. C. 344 . . 702 Glanystwyth, (1899) P. 118 ; 68 L. J. P. 37 ; 80 L. T. 204 ; 8 Asp. 513 . . 30 Glascott V. Lang, 2 PhilHps, 310 316 Glasgow Packet, The, 2 "W. Eob. 306 346 Glassington v. Eawlins, 3 East, 407 ■ 571a GleadeU v. Thompson, 11 Siokels N. T. E. 194 101 Gledstanes v. Allen, 12 C. B. 202 , 151, 161, 672 Glendarrooh, The, (1894) P. 226 ; 63 L. J. P. 89 ; 70 L. T. 344 78 GlendeTon, The, (1893) P. 269 ; 62 L. J. P. 123 613, 633 Glenduror, The, L. E. 3 C. P. 589 ; 24 L. T. 499 344 Glenfruin, The, 10 P. D. 103 ; 54 L. J. Ad. 49 ; 52 L. T. 769 ; 33 W. R. 826 17, 79, 342 Glengaber, The, L. E. 3 A. & E. 534 ; 41 L. J. Ad. 84 ; 27 L. T. 386 ; 21 W. E. 168 342, 346 Glengamock, «S:o. Co. v. Cooper, 22 Sess. Ca. (4th) 672 250 Glengyle, The, (1898) A. C. 519 ; (1898) P. 97 ; 67 L. J. P. 87 ; 78 L. T. 801 344 Glenmanna, The, Lush. 115 296 Glenochil, The, (1896) P. 10 ; 65 L. J. P. 1 ; 73L. T.416 58.91,101, 103b, 103e GUddon v. Brodersen, 1 Cab. & EU. 197 121 GUddon v. Peek, Times, July 7th, 1885 520 Glover v. L. & S. "W. Ey. Co., L. E. 3 Q. B. 25 ; 37 L. J. Q. B. 57 ; 17 L.T. 139 : ....718 Glyn V. East and West India Dock Co., 7 A. C. 591 ; 62 L. J. Q. B. 146 ; 47 L. T. 309 ; 31 W. E. 206 ; 4 Asp. M. 0. 580 ; 6 Q. B. D. 475 ; 50 L. J. Q. B. 62 ; 43 L. T. 584 ; 29 W. E. 316 55, 66, 469, 480, 482, 486, 498, 602 Glynn v. Margetson, (1893) A. C. 351 ; affirming (1892) 1 Q. B. 337 ; 62 L.J. Q.B.466; 69 L.T.I ......!... .16, 173, 286, 292a Godard v. Gray, L. E. 6 Q. B. 139 ; 40 L. J. Q. B. 62 ; 24 L. T. 89 ; 19 W. E. 348 g97_ ^22 Godwin V. Francis, L. E. 6 C. P. 295 ; 39 L. J. C. P. 121 ; 22 L. T.' 338 . .' 731 Goff V. Clinkard, 1 Wils. 281 , , . . , , 47 48 251 TABLE OF CASES CITED. XXXI SECT. Golding, Davis & Co., Ex parte, Knight, In re, 13 Ch. D. 628 ; 42 L. T. 270; 48W. R. 481 511,641 Groldsmidt v. Whitmore, 3 Taun. 507 99 Good V. Isaacs, (1892) 2 Q. B. 655 ; 61 L. J. Q. B. 649 ; 67 L. T. 450 ... . 614, 614a, 619a, 623 Good V. London S.S. Owners Association, L. E. 6 0. P. 563 ; 20 W. R. 33 26, 101 Goodbody v. Balfour, 4 Com. Ca. 119 ; 5 Com. Ca. 69 ; 80 L. T. 188 ; 8 Asp. 503 567 Goodwin v. Robarts, L. R. 10 Ex. 337 ; 1 A. C. 476 ; 45 L. J. Ex. 748; 35 L. T. 179 ; 24 W. R. 987 194, 533 Gordon v. G. "W. Ry. Co., 8 Q. B. D. 44 ; 61 L. J. Q. B. 58 ; 46 L. T. 509 ; 26 W. R. 230 .103 Gordon v. Powis, 8 T. L. E. 397 621 Gorgier v. Mieville, 3 B. & C. 45 194 Gorris v. Scott, L. R. 9 Ex. 125 ; 43 L. J. Ex. 92 ; 30 L. T. 431 ; 22 W. R. 575 , 20 Gorrisseu v. Perrin, 27 L. J. C. P. 29 ; 2 C. B. N. S. 681 ; 3 Jur. N. S. 867 169 Gosling V. Higgins, 1 Camp. 461 23 Goss V. Lord Nugent, 6 B. & Ad. 58 ; 2 N. & M. 28 164 Gouda, Ex parte, 20 "W. E. 981 513 Gould V. Oliver, 2 M. & G. 208 ; 4 Bing. N. C. 134 ; 2 Scott, N. R. 241. . 182, 281, 379 Governor Raffles, The, 2 Dod. 14 335 Govett V. Radnidge, 3 East, 62 35 Graoie v. Palmer, 8 Wheat. 605 652 Grampian S.S. Co. v. Carver, 9 T. L. R. 210 , 221 Granger ». Dent, M. & M. 475 221 Granite City S.S. Co. v. Ireland, 19 Sess. Ca. (4th) 124 619a Grant v. Coverdale, 9 A. C. 470 ; 11 Q.. B. D. 543 ; 53 L. J. Q. B. 462 ; 51 L. T. 472 ; 32 W. R. 831 ; 6 Asp. M. C. 353 173, 252, 257, 617 Grant v. Maddox, 16 L. J. Ex. 227 ; 15 M. & "W. 737 ; 15 L. J. Ex. 104. . 169 Grant v. Norway, 20 L. J. C. P. 93 ; 10 C. B. 665 ; 16 L. T. O. S. 604 ; 15 Jur. 296 42, 43, 69, 152 Gratitudine, The, 3 C. Rob. 240 15, 294, 305, 310, 311, 318 Gravesend Barge Case, The, 1 Roll. Eep. 79 . . , 15 Gray v. Carr, L. R. 6 Q. B. 522 ; 40 L. J. Q. B. 267 ; 25 L. T. 215 ; 19 W. E. 1173 160, 173, 637, 645, 648, 666, 669, 671 Gray v. Christie, 5 T. L. E. 577 App. B. Great Eastern, The, L. E. 2 A. & E. 88 ; 17 L. T. 667 114 Great Indian Peninsula Rail. Co. v. Tumbull, 53 L. T. 325 ; 33 W. R. 874 ; 5 Asp. Mar. C. 465 562, 566, 727 G. N. Ry. Co. v. Swaffield, L. E. 9 Ex. 132 ; 43 L. J. Ex. 89 ; 30 L. T. 562 295, 683 G. W. Ey. Co. V. Bagge, 15 Q. B. D. 625 ; 54 L. J. Q. B. 699 ; 53 L. T. 225 ; 34 W. R. 45 61, 602 G. W. Ry. Co. V. Blake, 31 L. J. Ex. 346 ; 8 Jur. N. S. 1013 ; 7 H. & N. 987 ; 10 W. E. 388 107 G. W. Ey. Co. (/. Bunch, 12 Q. B. D. 215 ; 13 A. C. 31 ; 57 L. J. Q. B. 361; 58L. T. 128; 36 W. E. 785 3, 6 G. W. Ry. Co. V. McCarthy, 12 A. C. 218 ; 56 L. J. P. C. 33 ; 56 L. T. 582 ; 35 W. R. 429 110 G. W. Ry. Co. V. Redmayne, L. R. 1 C. P. 329 ; 35 L. J. C. P. 123 ; 14 ■W.R.206; 12 Jur. N. S. 692 ; 1H.&R.97.... 724 G. R. Booth, The, 171 U. S. 450 88, 89, 91 Grebert-Borgnis v. Nugent, 15 Q. B. D. 85 ; 54 L. J. Q. B. 511. ,714, 715, 716 c2 XXXll TABLE OF CASES CITED. SECT. Green r. Bartlett, 32 L. J. C. P. 261 ; 8 L. T. 503 ; 11 W. R. 834 ; 14 C. B. N. S. 681 121 Green v. Briggs, 17 L. J. Cli. 323 ; 12 Jnr. 326 ; 6 Hare, 396 34, 590 Green ». Elmslie, Peake, N. P. 278 89 Green v. Kopke, 18 C. B. 549 ; 25 L. J. C. P. 297 ; 2 Jur. N. S. 1049 .... 52 Greeves v. "West India Co., 22 L. T. 615 ; 20 L. T. 914 107, 562 GreU v. Lery, 9 L. T. 721 ; 16 C. B. N. S. 73 ; 10 Jur. N. S. 210 ; 12 W. E. 378 214 Grey v. Butler's Wharf, 3 Com. Ca. 67 *S1 Grieve v. Konig, 17 Sc. L. R. 325 ; 7 Sess. Ca. (4th) 521 69a GriU V. General Iron Screw Collier Co., L. R. 1 C. P. 600 ; L. K. 3 C. P. 476 ; 35 L. J. C. P. 321 ; 37 L. J. C. P. 205 ; 18 L. T. 485 ; 16 W. R. 796 ; 12 Jur. N. S. 727 77, 87, 99 GrieseU «;. Bristowe, L. R. 3 C. P. 112; L. R. 4 C. P. 36 ; 38 L. J. C. P. 10; 19L. T. 390; 17 "W. R. 123 184, 185, 190 Groves ». Volkart, 1 Cab. & EU. 309 221 Guadaloupe, The, 92 Fed. Rep. 670 103d, 103e GuUdhall, The, 58 Fed. Rep. 796 103a Guion V. Trask, 29 L. J. Ch. 337 ; 8 W. R. 266; 6 Jur. N. S. 185 ; 1 D. F. & J. 373 689, 590 Gullischen v. Stewart, 11 Q. B. D. 186 ; 13 Q. B. D. 317 ; 62 L. J. Q. B. 648 ; 49 L. T. 198 ; 31 W. R. 745 ; 53 L. J. Q. B. 173 ; 50 L. T. 47 ; 32 W. R. 763; 6 Asp. M. C. 200 ,160, 607, 637, 651 Gumm ». Tyrie, 33 L. J. Q. B. 97 ; 34 L. J. Q. B. 124 ; 4 B. & S. 680 ; 6B. &S. 299 574, 592 Gunn V. Bolokow, L. R. 10 Ch. 491 ; 44 L. J. Ch. 732 ; 32 L. T. 781 ; 23 W. R. 739 504, 678, 679 Gunu V. Roberts, L. R. 9 C. P. 331 ; 43 L. J. C. P. 233 ; 30 L. T. 424 ; 22 W. R. 652 316 Gunnestad v. Price, L. R. 10 Ex. 65 ; 44 L. J. Ex. 44 ; 32 L. T. 499 ; 23 W. R. 470 693, 696 Gurney v. Behrend, 23 L. J. Q. B. 265 ; 18 Jur. 856 ; 3 El. & Bl. 622. .488, 489 Guataf, The, 31 L. J. Ad. 207 ; 6 L. T. 660 ; Lush. 506 317, 698 Guy Mannering, The, 7 P. D. 132 ; 61 L. J. Ad. 67 ; 46 L. T. 906 ; 30 W. R. 835; 4 Asp. M. C. 683 31, 32 H. Haabet, The, (1899) P. 295 ; 68 L. J. P. 121 ; 81 L. T. 463 312 Hadgraft v. Hewith, L. R. 10 Q. B. 350 ; 44 L. J. M. C. 140 ; 32 L. T 720; 23 W. R. 911 30 Hadley v. Baxendale, 9 Exoh. 341 ; 23 L. J. Ex. 179 ; 18 Jur. 358 ; 2 C. L. R. 517 713 Hadley v. Clark, 8 T. R. 269 23 242 Hagedom v. Whitmore, 1 Stark. 157 89 Hahn v. Corbett, 2 Bing. 205 gg Haigh V. Royal Mail S. Packet Co., 62 L. J. Q. B., 640 ; 48 L T 267 • 5 Asp. M. C. 47, 189; 49 L. T. 802; 48 J. P. 230 .'.. m Haillei). Smith, 1 B. & P. 563 !'.'."."..'.'.'.'.'. 497 Hales ■<;. L. & N. "W. Ry. C, 4 B. & S. 66 ; 32 L. J. Q. B. 292 ; 8 L t' 421; 11W.R.856 .; ........" 714 Hall V. Janson, 4 E. & B. 500 ; 24 L. J. Q. B. 97 ; 1 Jur. N. S. 671 ; 2 C. L. R. 737 190^ 403, 410 Hall V. N. E. Ry. Co., L. R. 10 Q. B. 437 ; 44 L. J. Q. B. 164 ; 33 L T 306 ; 23 W. R. 860 *_'. ,...'..; io7 Hallett V. Bousfield, 18 Ves. 187 4^2 TABLE OF CASES CITED, XXXllX SECT. HaUett V. 'Wigrain, 19 L. J. C. P. 281 ; 9 C. B. 680 302, 320, 407 Halley, The, L. E. 2 P. C. 193 ; 37 L. J. Ad. 33 ; 18 L. T. 879 ; 16 W. E. 998 , 30, 31, 710 Haly 1). Goodson, 2 Mer. 77 38 Hamburg, The, 32 L. J. Ad. 161 ; 33 L. J. Ad. 116 ; 10 L. T. 206 ; 12 W. E. 628 ; 2 Moore P. 0. N. S. 289 ; B. & L. 263 ; 10 Jur. N. S. 600 . . 295, 299, 302, 305, 311, 316 Hamilton v. Bavis, 5 Burr. 2732 355 Hamilton v. Mackie, 6 Times Eep. 677 160 Hamilton v. Pandorf, 12 A. 0. 618 ; 17 Q. B. D. 670 ; 16 Q. B. D. 629 ; 57 L. J. Q. B. 24 ; 57 L. T. 726 ; 36 W. E. 369 84—88 Hamlyn & Co. v. Talisker Distillery, (1894) A. C. 202 ; 71 L. T. 1 204 Hammond «'. Bussey, 20 Q. B. D. 79 ; 57 L. J. Q. B. 58 . . . .714, 715, 718, 731 Hammond v. Eeid, 4 B. & Aid. 72 286 Hand v. Baynes, Whart. 204 290 Hankow, The, 4 P. D. 197; 48 L. J. Ad. 29 ; 40 L. T. 335 30 Hanna, The, L. E. 1 A. & E. 285 ; 36 L. J. Ad. 1 ; 16 L. T. 334 ; 15 W. E. 263 30 Hannibal, The, L. E. 2 A. & E. 63 ; 37 L. J. Ad. 12 335 Hansen v. Donaldson, 1 Sess. Ca. (4th) 1066 462, 612, 612a Hansen v. Harrold, (1894) 1 Q. B. 612; 63 L. J. Q. B. 744; 70 L. T. 475 , 161, 648, 649, 650 Hanson v. Eoyden, L. E. 3 C. P. 47 ; 37 L. J. C. P. 66 ; 17 L. T. 214 ; 16 "W. E. 205 42, 179 Hardy v. Eyle, 9 B. & 0. 603 571a Harman v. Anderson, 2 Camp. 243 • S17 Harman v. Clarke, 4 Camp. 159 465, 621 Harman ». Gandolph, Holt, N. P. C. 35 640 Harman v. Mant, 4 Camp. 161 466, 621 Harper «. McCarthy, 2 B. & P. N. E. 288 611, 613 Harratt v. Wise, 9 B. & C. 712 ; 4 M. & E. 621 246 Harries v. Edmonds, 1 C. & K. 686 270, 719, 720 Harrington, The, 13 P. D. 48 360 Harriot, The, 1 W. Eob. 439 335 Harris ». Best, 68 L. T. 76; 7 Asp. 272 265, 274 Harris v. Dreesman, 23 L. J. Ex. 210 254, 267b Harris v. G. "W. Ey. Co., 1 Q. B. D. 515 ; 46 li. J. Q. B. 729 ; 34 L. T. 647; 25W. E. 63 HI Harris ». Haywood; 14 So. L. E. 605 '. i 612 Harris v. Jacobs, 15 Q. B. D. 247 ; 54 L. J. Q. B. 492 626, 667 Harris v. Paokwood, 3 Taun. 264 4 Harrison v. Bank of Australasia, L. E. 7 Ex. 39 ; 41 L. J. Ex. 36 ; 25 L. T. 944; 20 W. E. 385 368, 384 Harrison v. Garthome, 26 L. T. 508 ; 20 "W. E. 722 148, 149 Harrison v. Wright, 13 Bast, 343 722 narrower v. Hutchinson, L. E. 4 Q. B. 623 ; L. E. 5 Q. B. 684 ; 39 L. J. Q. B. 229 ; 22 L. T. 684 ; 10 B. & S. 469 448 Harrowing v. Katz, 10 T. L. E. 115, 400 69 Hart ». Middleton, 2 C. & K. 9 571a Hartfort v. Jones, 1 Ld. Eay. 393 ; 2 Salk. 654 322, 324 Hartley v. Hitchcock, 1 Stark. 408 678 Hastiags v. Pearson, (1893) 1 Q. B. 62 ; 62 L. J.' Q. B. 75 ; 67 L. T. 653. . 604 Hathesing v. Laing, L. E. 17 Eq. 92 ; 43 L. J. Ch. 233 ; 29 L. T. 734 . . 60, 186, 197 Havelook n. Geddes, 10 East, 555 .303, 570, 672 Havelock v. HanciU, 3 T. E. 277 99 XXXIV TABLE OF CASES CITED. SECT. Hawes v. S. E. Ey. Co., 52 L. T. 514 ; 54 L. J. Q. B. 174 . . . ;i6, 61, 725, 726 Hawkins v. Cardy, Carthew, 466 ; 1 Salk. 65 191 Hay v. LeNeve, 2 Shaw, S. C. App. 395 704 Hayes t). South Wales Ey. Co., 9 Ir. 0. L. E. 474 107 Havn V. CoUiford, 3 C. P. D. 410 ; 4 C. P. D. 182 ; 48 L. J. C. P. 372 ; 40 L. T. 536 ; 27 W. E. 541 48, 67, 101, 154, 158, 691 Haynes D. Halliday, 7 Bing. 687 182, 266 Hayton v. Irwin, 5 0. P. D. 130 ; 41 L. T. 666 ; 28 W. E. 666 . . 196, 225, 468 Heame v. Garton, 28 L. J. M. C. 216 ; 33 L. T. 256 ; 5 Jur. N. S. 648 ; 2 El. & El. 66 • 278 Heathfield S.S. Co. v. Eodenaoher, 1 Com. Ca. 446 ; 2 Com. Ca. 55 . .261, 583a Hebe, The, 2 W. Eoh. 146 310 Hebe, The, 2 W. Eob. 246 , 337 Hector, The, 8 P. D. 218 ; 52L. J. Ad. 61; 48L. T. 890; 31W. E. 881.. 704 Hedley d. Pinkney & Sons S.S. Co., (1892) 1 Q. B. 68 ; 61 L. J. Q. B. 179 ; 66 L. T. 71 ; 7 Asp. 135 -. 18, 19, 103d Heffield v. Meadows, L. E. 4 C. P. 595 ; 20 L. T. 746 167 Heinekey v. Earle, 28 L. J. Q. B. 79 ; 6 W. E. 687 ; 4 Jur. N. S. 848 ; S E. & B. 410 518 Heinrioh, The, L. E. 3 A. & E. 424 ; 24 L. T. 914 11,81 Heinrich Bjorn, The, 11 A. C. 270 ; 10 P. D. 44 ; 8 P. D. 161 ; 62 L. J. Ad. 83 ; 49 L. T. 406 ; 32 W. E. 279 ; 6 Asp. M. C. 1 317, 699, 700, 706 Helby v. Matthews, (1894) 2 Q. B. 262 ; (1895) A. C. 471 ; 63 L. J. Q. B. 677 ; 70 L. T. 837 504 Helen, The, L. E. 1 A. & E. I ; 34 L. J. Ad. 2 ; 14 W. E. 136 ; 11 Jur. N. S. 1025 246 Helen and George, The, Swabey, 368 348 Helene, The (see Ohrloffi v. Brisoal) . Henderson v. Comptoir d'Esoompte de Paris, L. E. 5 P. C.-263 ; 42 L. J. P. C. 60 ; 29 L. T. 192 ; 21 W. E. 873 497 Henderson v. Shankland, (1896) 1 Q. B. 525; 1 Com. Ca. 252, 333; 66 L. J. Q. B. 340; 74L. T. 238 421, 422 Henderson v. Stevenson, L. E. 2 H. L. (S. C.) 470 ; 32 L. T. 709 Ill Heriz V. Eiera, 11 Sim. 318 216 Herman v. Eoyal Exchange Shipping Co., 1 Cab. & Ell. 413 158 Hero, The, 2 Dods. 139 '. 310 Hestia, The, (1895) P. 193 ; 64 L. J. P. 82 ; 72 L. T. 364 348 Heugh V. Esoombe, 4 L. T. 517 : 51, 67 Heugh V. L. N. & W. Ey. Co., L. E. 6 Ex. 51 ; 39 L. J. Ex. 48 ; 21 L. T. 676 473 Hewison v. Guthrie, 2 Bing. N. 0. 755 ; 2 Hodges, 61 ; 3 Scott, 298 .... 679 Hewsons, The, L. E. 6 P. C. 134 693 695 Heyman v. Parish, 2 Camp. 149 gg Hibbert «. Owen, 2 E. & E. 502 124 167 Hibbs V. Eoss, L. E. 1 Q. B. 534 ; 35 L. J. Q. B. 193 ; 15 L. T. 67 • 14 W. E. 914; 12 Jur. N. S.'812 .'... 45 Hick V. Eaymond, (1893) A. C. 22 (see Hick 11. Eodooanaohi) . Hick v. Eodooanaohi, (1891) 2 Q. B. 626; (1893) A. C. 22 ; 61 L J Q B 42 ; 65 L. T. 300 180, 227, 466, 614, 616, 616, 619, 630, 683 Hick V. Tweedy, 63 L. T. 765 130, I30a, 197, 221, 615, 718 Hickie v. Eodocanachi, 28 L. J. Ex. 273 ; 7 W. E. 645 ; 5 Jur. N. S. 660 • ' 4 H. & N. 455 ' ' ggg Hiokox V. Buckingham, 18 Howard, 182 ' 696 Hicks V. PaHngton, Moore, 297 393 ogg Hicks V. Shield, 26 L. J. Q. B. 206 ; 3 Jur. N. S. 715 ; 7 E. & B. 633. . . .' 564 Higginbotham v. G. N. Ey. Co., 2 F. & F. 296 ; 10 "W. E. 358 .,., 14 TABLE OF CASES CITED. XXXV SECT. Highlander, The, 2 W. Eob. 109 38 Hm». Idle, 4 Camp. 327 612, 616, 639 Hill V. Kitching, 15 L. J. C. P. 251 ; 3 0. B. 299 121 Hill V. Scott, (1895) 2 Q. B. 371, 713 ; 1 Com. Ca. UO, 200 ; 65 L. J. Q. B. 87; 73L. T. 458 3, 53, 106,666, 730 Hill V. Wnaon, 4 C. P. D. 329 ; 48 L. J. C. P. 764 ; 41 L. T. 412. . . .302, 307, 416, 424, 427, 647, 561 HiUs V. Evans, 31 L. J. Ch. 457 ; 6 L. T. 90 168 HiUs V. London Assurance Co., 5 M. & W. 569 378 Hills V. Snghrue, 15 M. & W. 263 265 Hillstrom v. Gibson, 22 L. T. 248 ; 8 Sess. Ca. (3rd) 263 449, 467 Hinde «•. LiddeU, L. E. 10 Q. B. 265 ; 44 L. J. Q. B. 105 ; 32 L. T. 449 ; 23 "W. R. 650 714, 723 Hine v. New York & Bermudez Co., 68 Fed. Eep. 920; 73 Fed. Eep. 352. . 103o Hine v. Perkins, 66 Fed. Eep. 996 ; 50 Fed. Hep. 434 614a Hingston v. Wendt, 1 Q. B. D. 367 ; 45 L. J. Q. B. 440 ; 34 L. T. 664 ; 24W. R. 664 295, 353, 429, 444 Hiort «i. Bott, L. R. 9 Ex. 86 ; 43 L. J. Ex. 81 ; 30 L. T. 25 ; 22 W. R. 414 469 Hiort V. L. & N. W. Ry. Co., 4 Ex. D. 188 ; 48 L. J. Ex. 545 ; 40 L. T. 674 ; 27 "W. R. 778 ; 38 L. T. 424 730 Hoare v. Graham, 3 Camp. 57 164 Hobbs V. Hannan, 3 Camp. 93 100 Hobbs V. L. & S. W. Ry. Co., L. R. 10 Q. B. Ill ; 44 L. J. Q. B. 49 ; 32 L. T. 352 ; 33 W. R. 620 717 Hodgkinson v. Femie, 26 L. J. C. P. 217 ; 2 C. B. N. S. 416 ; 3 Jur. N. S. 818 114 Hodgson V. Loy, 7 T. R. 440 606, 516, 527 Hodgson V. Malcolm, 2 B. & P. N. R. 336 89 Hoey V. Felton, 31 L. J. C. P. 105 ; 5 L. T. 354 ; 10 W. R. 78 ; 11 C. B. N. S. 142; 8 Jut. N. S.-764 717 Hoffnung, The, 6 C. Rob. 231 242 Hogarth v. Miller (1891), A. C. 48 ; 16 Sess. Ca. (4th) 599 ; 26 So. L. R. 459 572, App. B. Holderness v. CoUinson, 7 B. & C. 212 ; 1 M. & R. 56 192 Holderness v. Shackels, 8 B. & C. 612 ;' 3 M. & R. 25 590 HoU V. Pincent, 6 Moo. 228 121 Hollins V. Fowler, L. R. 7 H. L. 757 ; L. R. 7 Q. B. 616 ; 44 L. J. Q. B. 169 ; 33 L. T. 73 ; 20 W. R. 168 469 Hollinside, The, (1898) P. 131 ; 67 L. J. P. 46 582 Hohuan v. Dasnieres, 2 Times L. R. 607 250 Hobnan v. Peruvian Nitrate Co., 6 Sess. Ca. (4th) 657 ; 15 So. L. R. 349. . 44, 169, 197, 613 Holmann. "Wade, Times, May 11th, 1877 463 Hoist V. Pownall, 1 Esp. 240 514, 523 Holt V. Collyer, 16 Ch. D. 718 ; 50 L. J. Ch. 311 ; 45 L. T. 214; 29 W. R. 502 ; 45 J. P. 456 169, 170 Hong Kong, &c. Banking Co. v. Baker, 7 Bom. H. C. R. 186 ...... 83, 86, 474 Hoop, The, 1 C. Rob. 196 238, 243 Hooper v. L. & N. W. Ry. Co., 50 L. J. Q. B. 103 ; 43 L. T. 670 ; 25 "W. R. 241 ; 45 J. P. 223 107 Hope, The, 3 C. Rob. 215 324a Hope, The, 28 L. T. 287 317 Hope V. Hope, 26 L. J. Ch. 417 ; 3 Jur. N. S. 464 ; 8 D. M. & G. 731 . . . . 214 Hopper V. Barness, 1 C. P. D. 137 ; 45 L. J. C. P. 377 ; 34 L. T. 528 ; 24 W. R. 612 , 307, 320, 547, 561 XXXVl TABLE OF CASES CITED. SECT. Hornby «. CardweU, 8 Q. B. D. 329 ; 51 L. J. Q. B. 89 ; 45 L. T. 781 ; 30 W. R. 263 731 Homcastle v. Farran, 3 B. & A. 497 ; 2 Stark. 590 679 Home V. Midland Ey. Co., L. R. 7 C. P. 583 ; L. E. 8 C. P. 131 ;' 42 L. J. C. P. 59; 28L. T. 312; 21 W. R. 481 716 Horsley v. Baxter, 20 Seas. Ca. (4th) 333 78 Horsley v. Price, 11 Q. B. D. 244 ; 25 L. J. Q. B. 603 ; 49 L. T. 101 ; 31 W. R. 841 455, 466 Horsley i". Rush, 7 T. R. 209 42, 119 Hotham v. East India Co^, 1 T. R. 638 ; 1 Doug. 272 174, 178, 549 Hough V. Athya, 16 So. L. R. 553 ; 6 Seas. Ca. (4th) 961 631 Hough V. Head, 64 L. J. Q. B. 294 ; 55 L. J. Q. B. 43 ; 52 L. T. 861 ; 53 L. T. 809; 33 W. K. 458; 34 W. R. 160; 6 Asp. M. C. 505 93, 572 Hough V. ManzanoB, 4 Ex. D. 104 : 48 L. J. Ex. 398 ; 27 W. R. 536 . . 128, 130 Houlder v. Gen. Steam Nar. Co., 3 E. & F. 170 465, 466, 683 Houston V. Sansinena, 68 L. T. 567 ; 7 Asp. 311 ; 66 L. T. 246 147 Hovill V. Stephenson, 4 C. & P. 469 272, 274 How i>. Kixchner, 11 Moo. P. C. 21 663 Howard v. Shepherd, 19 L. J. Q. B. 249 ; 9 C. B. 297 467 Howard v. Tucker, 1 B. & Ad. 712 69, 606, 663 Howdenj). S.S. Nutfield Co., 3 Com. Ca. 56 App. B. HoweU V. Coupland, L. R. 9 Q. B. 462 ; 1 Q. B. D. 258 ; 46 L. J. Q. B. 147 ; 33 L. T. 832 ; 24 W. R. 470 256 Huhbersty ». Ward, 22 L. J. Ex. 113 ; 8 Ex. 330 69 Hudson V. Baxendale, 27 L. J. Ex. 93 ; 2 H. & N. 576 14, 473 Hudson «. Bilton, 26 L. J. Q. B. 27 ; 2 Jur. N. S. 784 ; 6 E. & B. 566 . . 220, 567 Hudsbn v. Clementson, 25 L. J. C. P. 234 ; 18 C. B. 213 620, 626 Hudson V. Ede, L. R. 2 Q. B. 566; L. R. 3 Q. B. 412 ; 36 L. J. Q. B. 273; 37 li. J. Q. B. 166 ; 16 L. T. 698 ; 18 L. T. 764 ; 16 W. R. 490 ; 16 W. R. nil ; 8 B. & S. 631, 640 182, 252, 257, 257b ' Hudson V. HiU, 43 L. J. C. P. 273 ; 30 L. T. 565 ...'... 144, 148, 218, 232, 720 Hugill V. Masker, 22 Q. B. D. 364 ; 58 L. J. Q. B. 171 ; 60 L. T. 774 ; 37 W. R. 390 504 Hull Dock Co. V. Brown, 2 B. & Ad. 43 448 Humble v. Hunter, 17 L. J. Q. B. 360 ; 12 Q. B. 310 127 Humfrey v. Dale, 26 L. J. Q. B. 137 ; 27 L. J. Q. B. 390 ; E. B & E 1004 ; 5 Jur. N. S. 191 131 igg Hunt !;. Ward, 3 T. R. 467 *.*.'.".'....' 517 Hunter v. Fry, 2 B. & A. 421 141 261 Hunter v. MoGown, 1 Bligh. 673 24 Hunter v. Northern Mar. Ins. Co., 13 A. C. 717 ; 15 Seas. Ca. (4th) 72. .448 567 Hunter v. Potts, 4 Camp. 203 , gg Hunter v. Prinsep, 10 East, 378 307 547 561 Hurry v. Royal Exchange Assurance Co., 2 B. & P. 430 ; 3 Esp. 289 462 Hurst V. Usbome, 25 L. J. C. P. 209 ; 18 C. B. 144 140 277 ' 232 Hutohings ». Nunes, 9 L. T. N. S. 125 ; 1 Moo. P. C. C. N S 243 ■ lo' Jur.N. S. 109 ■..■....:618, 529 Hutchinson v. Guion, 28 L. J. C. P. 63 ; 4 Jur. N. S. 1149 ; 6 0. B N S „^*^ 13, 97,' 272, 274, 277 Hutchinson v. Tatham, L. R. 8 C. P. 482 ; 42 L. J C P 260 • 29 T T 103; 22W.R. 18 '...'.....'.... ..131 196 Hutchison ». Eaton, 13 Q. B. D. 861 ; 51 L. T. 846 ".".'.'.'.*.", '130 Huth «. Lamport, 16 Q. B. D. 442, 735; 65 L. J. Q. B. 239; 64 LT '663'• 34 W. R. 386 ■ ' ^^2 Hutton V. Bragg, 7 Taun. 14 ; 2 Marsh. 339 gg'g ggg Hutton «), Warren, 1 M. & W. 466 ; 2 Gale, 71 ". ' jgj TABLE OF CASES CITED. XXXVU BEOT. Hydames S.S. Co. v. Indemnity, &o. Co., (1895) 1 Q. B. 600 ; 64 L. J. . Q. B. 353; 72 L. T. 103; 7 Asp. 553 173 Hyde v. Trent, &c. Nav. Co., 6 T. E. 397 ; 1 Esp. 36 462, 472 Hyde v. 'Willis, 3 Camp. 202 161 Hydraulic Engineering Co. v. M'Haffie, 4 Q. B. D. 670 ; 27 W. R. 221 . , 715, 716 Hyman v. Nye, 6 Q. B. D. 685 ; 44 L. T. 919 ; 45 J. P. 554 . . . . , 112 I. Ida, The, 32 L. T. N. S. 541 12, 73, 75 Ida, The, L. R. 3 A. & E. 542 ; 41 L. J. Ad. 85 ; 27 L. T. 457 ; 21 W. R. 39 314 Imperial Bank v. London and St. Katherine Dock Co., 5 Ch. D. 195 ; 46 L. J. Ch. 335 ; 36 L. T. 233 517 Inchmaree, The, (1899) P. Ill ; 68L. J.P. 30; 80L.T. 201; 8 Asp. 486.. 348 India, The, 1 W. Roh. 406 333 Indomitable, The, Swab. 446 ; 5 Jur. N. S. 632 312 Industrie, The, (1894) P. 58 ; 63 L. J. P. 84 ; 70 L. T. 791 210, 211, 547 Industry, The, 3 Hagg. 203 338 Inglis V. Robertson, (1898) A. C. 616 ; 67 L. J. P. C. 108 ; 79 L. T. 224 . . 501, 504 Inmau S.S. Co. v. BisohofE, 6 Q. B. D. 648 ; 7 A. C. 670 ; 52 L. J. Q. B. 109 ; 47 L. T. 681 ; 31 W. R. 141 ; 5 Asp. M. C. 6 572 Innisfallen, The, L. E. 1 A. & E. 72 ; 35 L. J. Ad. 110 ; 12 Jur. N. S. 653 38, 40 Insurance Co. v. Boon, 95 TJ. S. 117 89 Insurance Co. v. Tweed, 7 Wall, 44 89 . lona. The, L. R. 1 P. C. 426 ; 16 L. T. 158 ; 4 Moo. P. 0. C. N. S. 336 . . 32 lonides v. Pender, 27 L. T. 244 ; L. R. 9 Q. B. 631 ; 43 L. J. Q. B. 227 ; 30 L. T. 457 ; 21 W. R. 39 100 lonides v. Univeraal Marine Ins. Assoc, 32 L. J. C. P. 170 ; 14 C. B. N. S. 269 ; 10 Jur. N. S. 18 ; 8 L. T. 705 ; 11 W. R. 858 89 Iowa, The, 50 Fed. Rep. 561 103a Iredale v. China Traders' Ins. Co., (1899) 2 Q. B. 356 ; 68 L. J. Q. B. 1021 ; 81 L. T. 231 ; 4 Com. Ca. 256 369, 371, 388 Ireland v. Livingstone, L. R. 6 H. L. 395 ; 41 L. J. Q. B. 201 ; 27 L. T. 79 ; 1 Asp. Mar. C. 389 495 Ironsides, The, 31 L. J. Ad. 129 ; 6 L. T. 59 ; Lush. 458 685, 686 Irrawaddy, The, 171 U. S. 187 103f, 373c Irvine*. Mid. G."W. Ry. Co., 6 L. R. Ir. 55 718, 719, 723 Irving V. Clegg, 1 Bing. N. C. 63 ; 4 M. & Scott, 672 262, 264 Isabella Jacobina, The, 4 C. Rob. 77 242 Isberg V. Bowden, 22 L. J. Ex. 322 ; 1 C. L. R. 722 ; 8 Ex. 852 689 Isis S.S. Co." V. Bahr, (1899) 2 Q. B. 364 ; 4 Com. Ca. 307 ; 68 L. J. Q. B. 930; 81L.T.241 265 Isoa, The, 12 P. D. 34 695 Italia, The, 59 Fed. Rep. 617 88 J. Jackson v. GaUoway, 5 Bing. N. C. 71 ; 6 Scott, 786 634 Jackson v. Isaacson, 27 L. J. Ex. 392 ; 3 H. & N. 405 566 Jackson v. Nichol, 5 Bing. N. C. 608 ; 7 Scott, 577 , 610, 519 XXXVIU TABLE OF CASES CITED. BEOT. Jackson v. Union Mar. Ins. Co., L. E. 10 C. P. 125; L. R. 8 C.P. 572 ; 42 L. J. C. P. 284 ; 23 W. E. 169 ; 44 L. J. C. P. 27 ; 31 L. T. 789. . . . 227, 232, 233 Jacobs -0. Credit Lyonnais, 12 Q. B. D. 589 ; 49 L. T. 39 ; 53 L. J. Q. B. 156 203, 207, 208, 227, 247 Jacobs V. Latour, 5 Bing. 130 ; 2 M. & P. 201 679 Jaederen, The, (1892) P. 351 ; 61 L. J. P. 89 614a, 616a, 619, 619a James v. Oriffin, 2 M. & "W. 623 518 James v. Jones, 3 Esp. 27 154 Jamieson v. Lawrie, 6 Bro. Pari. C. 474 620, 630, 717 Janet Court, The, (1897) P. 59 ; 66 L. J. P. 34 ; 76 L. T. 172 ; 8 Asp. 223. 344 Japp V. CampbeU, 57 L. J. Q. B. 79 590, 592, 595 J. C. Potter, The, L. E. 3 A. & E. 292 ; 40 L. J. Ad. 9 ; 23 L. T. 603 ; 19 W. E. 335 339, 34S Jebseu v. East and West India Dock Co., L. E. 10 C. P. 300 ; 44 L. J.. C. P. 181 ; 32 L. T. 321 ; 23 "W. E. 624 721, 730 Jenkins v. Hutchinson, 18 L. J. Q. B. 274 ; 13 Jur. 763 ; 13 Q. B. 744 . . 128 Jenkyns v. Brown, 19 L. J. Q. B. 286 ; 14 Q. B. 496 ; 14 Jur. 505 494 Jeni^ns r. Usbome, 13 L. J. C. P. 196 ; 8 Scott, N. E. 505 ; 7 M. & G. 678 504, 524, 533 Jessel V. Bath, L. E. 2 Ex. 267 ; 36 L. J. Ex. 149 ; 15 W. E. 1041 ... .69, 71 Jesson V. Solly, 4 Taun. 62 47, 639, 643 Jewan v. Whitworth, L. E. 2 Eq. 692 ; 36 L. J. Ch. 127 504 Job V. Langton, 26 L. J. Q. B. 97 ; 3 Jur. N. S. 109 ; 6 E. & B. 779 . . 399, 400 Johann Friedrich, The, 1 W. Eob. 35 708 Johann Sverdrup, The, 12 P. D. 43 ; 11 P. D. 49 ; 55 L. J. Adm. 28 ; 54 L. T. 800 ; 35 W. E. 63 30 Johannes, The, 30 L. J. Ad. 91 ; 3 L. T. 757 ; Lush. 182 331 John and Mary, The, Swa. 471 ; 5 Jur. N. S. 1085 684 John, The, 3 W. Eob. 170 664, 598 John Dunn, The, 1 W. Eob. 159 27 Johnson r. Chapman, 35 L. J. C. P. 23 ; 19 0. B. N. S. 563. .366, 370, 380, 402 Johnson v. Credit Lyonnais, 2 C. P. D. 244 ; 3 C. P. D. 32 ; 47 L. J. C. P. 241 ; 37 L. T. 657 ; 26 W. E. 195 490 Johnson v. Greaves, 2 Taun. 344 , 544. Johnson v. Macdonald, 9 M. & W. 600 ; 12 L. J. Ex. 99 ; 6 Jur. 264 .... 137 Johnson v. Midland Ey. Co., 4 Ex. 367 ; 18 L. J. Ex. 366 4 Johnson v. Eoyal Mail S. Packet Co., L. R. 3 C. P. 38 ; 37 L. J. C P 33 • 17 L. T. 445 .' 40 Johnston v. Benson, 4 Moore, 90 ; 1 B. & B. 464 92 Johnston v. Cox, 16 Ch. D. 571 ; 19 Ch. D. 17 ; 50 L. J. Ch. 216 ; 45 L. T. 657 ; 30 W. E. 114 596 Johnston v. tJsborne, 11 A. & E. 649 ; 3 P. & D. 236 184 JoUy V. Young, 1 Esp. 186 571a, Jonathan Goodhue, The, Swab. 355 314 315 Jones V. Adamson, 1 Ex. D. 60 ; 46 L. J. Ex. 64 ; 35 L. T. 287 620 717 Jones V. Bennett, 63 L. T. 705 gn Jones V. Holm, L. R. 2 Ex. 335 ; 36 L. J. Ex. 192 ; 16 L. T. 794 ; 16 W. E. 62 ! ... 259 Jones V. Hough, 6 Ex. D. 116 ; 49 L. J. Ex. 211 ; 42 L. T. 108 ... .66, 58, 59, 151, 166, 161,' 269 Jones V. Jones, 8 M. & W. 431 sjo Jones v. Moore, 4 T. & C. 351 '.'.'." 505 Jones V. Nicholson, 23 L. J. Ex. 330 ; 10 Ex. 28 ; 2 C. L. E. 12 99 100 Jones ». Tarleton, 9 M. & W. 675 ; 6 Jur. 348 680 Jonge Andries, The, Swab. 226, 303 ; 11 Moore, P. C. C. 313. ,337,338,347, 348 TABLE OF CASES CITED. XXXIX SECT. Jonge Bastiaan, The. 5 C. Rob. 222 333, 350 Jonge Margaretha, The, 1 C. Rob. 189 , 244 Joseph, The, 4 Times L. R. 693 154 Joseph V. Knox, 3 Camp. 320 61 Joyce V. Swann, 17 0. B. N. S. 84 492 J. P. Donaldson, The, 167 U. S. 599 374b JubUee, The, 42 L. T. 594 340 Juno, The, 1 P. D. 135 ; 45 L. J. Ad. 105 ; 34 L. T. 741 ; 24 "W. R. 902. . 30 K. Kaltenbaoh v. Lewis, 24 Ch. D. 54 ; 10 A. C. 617 ; 51 L. J. Ch. 881 ; 48 L. T. 844 ; 45 L. T. 766 ; 31 W. R. 731 ; 30 W. R. 356 ; 55 L. J. Ch. 68 ; 53 L. T. 787 ; 34 "W. R. 477 504 Kamak, The, L. R. 2 A. & E. 289 ; 2 P. C. 505 ; 38 L. J. Ad. 57 ; 21 L. T. 159; 17 W. R. 1028; 6 Moo. P. C. C.N. S. 136.. 211, 301,310,314,664, 598 Kasan, The, Br. & L. 1 ; 32 L. J. Ad. 97 ; 9 Jnr. N. S. 235 688 Kate B. Jones, The, (1892) P. 366 332, 335, 344 Kate, The, (1899) P. 165 ; 68 L. J. P. 41 ; 80 L. T. 423 ; 8 Asp. 539 728 Kathleen, The, L. R. 4 A. & E. 269 : 43 L. J. Ad. 39 ; 31 L. T. 204 ; 23 "W. R. 350 307, 308, 555 Katy, The, (1895) P. 56 ; 64 L. J. P. 49 ; 71 L. T. 709 ; 7 Asp. 527 631 Kay B. Pield, 8 Q. B. D. 594; 10 Q. B. D. 241 ; 62 L. J. Q. B. 17 ; 47 L. T. 423 ; 46 L. T. 630 253, 267, 617 Kay V. "Wheeler, L. R. 2 C. P. 302 ; 36 L. J. C. P. 180 ; 16 L. T. 66 ; 15 W. R. 495 74, 86 Kearon v. Pearson, 31 L. J. Ex. 1 ; 7 H. & N. 386 ; 10 W. R. 12. .252, 253, 614 Keith V. Burrows, 2 A. C. 636 ; 46 L. J. C. P. 801 ; 37 L. T, 291 ; 25 W. R. 831 40, 41, 675, 591, 592, 594, 595, 596, 697, 600 Kell V. Anderson, 10 M. & W. 498 ; 12 L. J. Ex. 101 623, 626 Kelner v. Baxter, L. R. 2 C. P. 174 ; 36 L. J. C. P. 94 ; 15 L. T. 213 ; 16 W. R. 278 128 Kemp V. Canavan, Ir. R. 15 C. L. 216 532 Kemp V. Palk, 7 A. C. 573 ; 62 L. J. Ch. 167 ; 47 L. T. 457 ; 31 W. R. 125 ; 5 Asp. M. C. 1 66, 504, 613, 515, 530, 634, 540,541 Kemp V. HalUday, 34 L. J. Q. B. 238 ; L. R. 1 Q. B. 520 ; 35 L. J. Q. B. 156 ; 14 L. T. 762 ; 14 W. R. 697 ; 12 Jur. N. S. 682 ; 6 B. & S. 723 . . 352, 391, 396, 397, 398 Kendal v. MarshaU, 11 Q. B. D; 356 ; 62 L. J. Q. B. 313 ; 48 L. T. 951 ; 31 W. R. 597 ; 46 L. T. 693 506, 613, 521 KendaU v. HamUton, 4 A. C. 504 ; 3 C. P. D. 403 ; 48 L. J. C. P. 705 ; 41 L. T. 418 ; 28 W. R. 97 36, 112 Kendall v. L. & S. "W. Ry. Co., L. R. 7 Ex. 373 ; 41 L. J. Ex. 184 ; 26 L. T. 735 ; 20 W. R. 886 12 Kenmure Castle, The, 7 P. D. 47 ; 30 "W. R. 708 ; 5 Asp. M. C. 27 344 Kennedy v. Gouveia, 3 D. & R. 503 130 Kensington, The, 88 Eed. Rep. 331 ; 94 Eed. Rep. 885 103a, 103f Kent, The, Lush. 496 38 Kent. V. M. Ry. Co., L. R. 10 Q. B. 1 ; 44 L. J. Q. B. 18 ; 31 L. T. 430 ; 23 W. R. 25 107 Kentucky v. Bassford, 6 HiU, 526 (N. Y.) 214 Kerford v. Mondel, 28 L. J. Ex. 303 671, 680 Kern v. DeSlandes, 30 L. J. C. P. 297 ; 10 C. B. N. S. 205 ; 8 Jur. N. S. 194 ; 6 L. T. 349 670, 672 Keroula, The, 11 P. D. 92 ; 65 L. J. Adm. 45 ; 55 L. T. 61 ; 6 Asp. Mar. C. 23 38 xl TABLE OF CASES CITED. SECT. EerswUl v. Bishop, 2 C. & J. 529 ; 2 Tyr. 602 692 Keys V. Belfast & BaUymena Ry. Co., 8 Ir. 0. L. K. 167 107 Kiddle v. Lovett, 16 Q. B. D. 605 ; 34 W. E. 518 718 KiUeena, The, 6 P. D. 193 ; 45 L. T. 621 ; 61 L. J. Ad. 11 ; 30 W. R. 339 ; 4 Asp. M. C. 472 333 Kings. Hinde, L. R. (Ir.) 12 CI. 113 169, 620 King 4-. Shepherd, 3 Story, 349 (U. S.) .. ., 293 King V. Spurr, 8 Q. B. T>. 104 ; 51 L. J. Q. B. 105 ; 45 L. T. 709 ; 30 W. E. 152 ; 46 J. P. 198 , 49 Kingalock, The, 1 Spk. 263 339. 340, 344, 347 Kingsford v. Merry, 11 Ex. 577 ; 1 H. & N. 503 ; 26 L. J. Ex. 83 ; 3 Jur. N. S. 68 496 Kingston v. Nihbs, 1 Camp. 503 (n.) 182 Kinlooh V. Craig, 3 T. R. 119, 783 ; i Bro. P. C. 47 528 Kinnersley Caetle, The, 3 Hagg. 1 42 Kirchner v. Venus, 12 Moo. P. C. 361 ; 7 W. E. 466 ; 6 Jur. N. S. 395 200, 542, 662, 663 Kirk V. Gibbs, 26 L. J. Ex. 209 ; 1 H. & N. 810 208, 247, 255 Kish V. Cory, L. E. 10 Q. B. 653 ; 44 L. J. Q. B. 205 ; 32 L. T. 670 ; 23 W. E. 880 645, 647, 648, 649, 667 IQeinwort v. Caea Marittima, &o., 2 A. C. 156 ; 36 L. T. 118 ; 25 W. R. 608 316 Knight S.S. Co. v. Fleming, 26 Sess. Ca. (4th) 1070 468 KopitofE V. WUsou, 1 Q. B. D. 377 : 46 L. J. Q. B. 436 ; 34 L. T. 677 ; 24 706 17, 18, 87 Krall V. Burnett, 26 W. E. 305 563 Kruse v. Drynan, 18 Sess. Ca. (4th) 1110 61 9a Kreeft v. Thompson, L. E. 10 Ex. 281 ; 44 L. J. Ex. 238 ; 33 L. T. 366 ,' 24 W. R. 146 44 Kruger v. Wilcox, Ambler, 252 , 193 L. LacHngton v. Atherton, 13 L. J. C. P. 140 ; 7 M. «& Gr. 360 ; 8 Jur. 406 ; 8 Scott, N. R. 38 517 La Cour v. Donaldson, 1 Sess. Ca. (4th) 912 623 Lady Clermont, The, 23 L. T. 283 , 38 Laing v. Hollway, 3 Q. B. D. 437 ; 47 L. J. Q. B. 512 ; 26 W. E. 769. .613, 633 Lamb v. Kaselack, 19 Sc. L. E. 336 ; 9 Sess. Ca. (4th) 482 669 Lamb v. Parkman, 1 Sprague, 343 g gg Laming v. Seater, 26 Sc. L. E. 500 ; 16 Sess. Ca. (4th) 828 41 Lane j). Nixon, L. R. 1 C. P. 412 ; 35 L. J. C. P. 243 : 14 W. R. 641 • 12 Jur. K. S. 392 '. . . 462 Lang V. Anderdon, 3 B. & C. 496 ; 5 D. & R. 393 ; 1 C. & P. 171 220 567 Lannoy v. "Worry, 2 Bro. Pari. C. 60 535 Laurel, The, 33 L. J. Ad. 17 ; 9 L. T. 457 ; 13 W. E. 352 : B. & L 191 "■ 11 Jur. N. S. 346 _' gj^ Laurie v. Douglas, 15 M. & W. 746 84 g^ Lavahre v. "WUson, 1 Doug. 284 287 Laveroni v. Drury, 22 L. J. Ex. 2 ; 16 Jur. 1024 ; 8 Ex. 166 3 10 86 Law V. HoUingsworth, 7 T. R. 160 284 Lawrence v. Aberdein, 6 B. & A. 107 89 172 173 Lawrence v. Mintum, 17 How. 100 (U.S.) 15 19' 28l' 368 Lawson v. Bumess, 1 H. & C. 396 ; 10 W. R. 733 ; 2 F. & F. 793 '....'... ' 620 Lea V. Whitaker, L. R. 8 C. P. 70 ; 27 L. T. 676 ; 21 W. R. 230 '!!!!."! 722 Learoyd v. Robinson, 12 M. & "W. 746 ; 13 L. J. Ex. 213 ! ! " T ! ' 604 TABLE OF CASES CITED. xH SECT. Leask v. Soott, 2 Q. B. D. 376 ; 46 L. J. Q. B. 329, 576 ; 36 L. T. 784 ; 35 L. T. 903 ; 25 W. E. 654 638 Lebeau v. General S. Nav. Co., L. R. 8 0. P. 88 ; 42 L. J. 0. P. 1 : 27 L. T 447; 21 W. R. 146 72, 729 Le Blanche v. L. & N. "W. Ry. Co., 1 C. P. D. 286 ; 45 L. J. C. P. 521 :' 34 L. T. 667 ; 24 W. R. 808 .718 Le Couteur v. L. & S. W. Ry. Co., L. R. 1 Q. B. 54 ; 35 L. J. Q. B. 40 : 13 L. T. 325 ; 14 W. E. 80 ; 12 Jut. N. S. 266 6, 29 Ledvic V. Ward, 20 Q. B. D. 475 ; 57 L. J. Q. B. 379 ; 58 L. T. 908 ; 36 "W. R. 537 16, 56, 63, 152, 281, 286, 292a Lee V. Abdy, 17 Q. B. D. 309 ; 65 L. T. 297 ; 34 W. R. 663 213 Lee V. Butler, (1893) 2 Q. B. 318 ; 62 L. J. Q. B. 691 ; 69 L. T. 370 604 Lee V. Grinnell, 4 Duer, 400 369 Lee V. Southern Ins. Co., L. R. 6 C. P. 397 ; 39 L. J. C. P. 218 ; 22 L. T. 443 ; 18 W. R. 863 414 Leeds v. Wright, 2 B. & P. 320 ; 4 Esp. 243 517 Leer v. Tates, 3 Taun. 387 624, 639, 640, 641, 642 Leidemann v. Schultz, 23 L. J. C. P. 17 ; 14 C. B. 38 ; 18 Jur. 32 ; 2 C. L. R. 87 169, 620 Le Jouet, L. R. 3 A. & E. 566 ; 41 L. J. Ad. 96 ; 27 L. T. 387 ; 21 W. R. 83 335 Lemington, The, 2 Asp. N. S. 476 696, 707 Lennard v. Robinson, 24 L. J. Q. B. 276 ; 1 Jur. N. S. 853 ; 5 E. & B. 126 52, 130 Leo, The, 31 L. J. Ad. 78 ; 6 L. T. 68 ; Lush. 444 601 Leon, The, 6 P. D. 148; 60 L.J. Ad. 69; 44L.T.613; 29 W. R. 916. .707, 709 Lepanto, The, (1892) P. 122 ; 66 L. T. 623 334, 344 Leptir, The, 52 L. T. 768 ; 6 Asp. M. C. 411 308 Leroux v. Brown, 12 C. B. 801 ; 22 L. J. C. P. 1 ; 16 Jur. 1021 213, 697 Leslie v. Guthrie, 1 Biag. N. C. 697 ; 1 Soott, 683 596 LesKe i-. Wilson, 3 B. & B. 171 ; 6 Moo. 416 119 Letchford v. Oldham, 5 Q. B. D. 538 ; 49 L. J. Q. B. 458 87 Letrioheux v. Dunlop, 19 Sess. Ca. (4th) 209 101, 258, 619a Leuckhart ». Cooper, 3 Bing. N. C. 99 ; 7 C. & P. 119 ; 3 Soott, 621 ; 2 Hodges, 150 190, 191, 654 Leuw V. Dudgeon, L. R. 3 C. P. 17 (n.) ; 37 L. J. C. P. 6 (u.) ; 17 L. T. 145 ; 16 W. R. 80 79 Levy V. Barnard, 8 Taun. 149 ; 2 Moore, 34 678 Levy V. Costerton, 4 Camp. 389 ; 1 Stark. 212 284 Levy V. Merchants' Mar. Ins. Co., 62 L. T. 263 ; 1 C. & E. 474 .... 171 Lewis V. G. W. Ry. Co., 6 H. & N". 867 ; 29 L. J. Ex. 425 110 Lewis «. G. W. Ry. Co., 3 Q. B.D. 119; 47 L. J. Q. B. 131; 37 L. T. 774; 26 W. R. 266 103, 167 Lewis V. MarshaU, 13 L. J. C. P. 193 ; 8 Jur. 848 ; 8 Soott, N. R. 729 ; 7 M. &G. 729 171, 264 Lewis V. MoKee, 4 H. & C. 674 ; L. R. 2 Ex. 37 ; L. R. 4 Ex. 68 ; 36 L. J. Ex. 6 ; 38 L. J. Ex. 62 ; 15 L. T. 388 ; 19 L. T. 522 ; 17 W. R. 325 64 Lewis V. Rucker, 2 Burr. 1167 193 Lewis V. Williams, 1 Hall, 430 416 Liokbarrow v. Mason, 2 T. R. 63; 1 H. Bl. 367; 2 H. Bl. 211; 4 Bro. P. C. 57 ; 6 T. R. 683 ; 6 L. T. 63 , 193, 194, 487, 489, 532, 633 Liddard v. Lopes, 10 East, 626 547, 571 Lidgett V. Perrin, 2 F.' & E. 763 ; 11 C. B. N. S. 362 52, 57, 563 Lidgett V. Williams, 4 Hare, 466 119 Lilley v. Doubleday, 7 Q. B. D. 610 ; 51 L. J. Q. B. 310 ; 44 L. T. 814 . . 287 xlii TABLE OF CASES CITED, SECT. LiUy v. Stevenson, 22 Seas. Ca. (4th) 278 2o4a, 257b, 258b, 609, 625 LiUy J.. Smales, (1892) 1 Q. B. 456; 40 "W. E. 644 129, 169 Limpus V. Loud. Gen. Omnibus Co., 32 L. J. Ex. 34 707 Lindsay v. Gibbs, 22 Beav. 522 ; 28 L. J. Ch. 692 ; 4 Jur. N. S. 779 590, 691, 697 Lindsay ». Scholefield, 24 Sees. Ca. (4th) 530 16, 126, 287 Lion, The, L. E. 2 P. C. 525 ; 38 L. J. Ad. 61 ; 21 L. T. 41 ; 17 W. E. 993; 6 Moo. P.O. C. N. S. 163 30, 31 Lipsou V. Harrison, 2 W. E. 10 324 Lipton V. Jescott Steamers, 1 Com. Ca. 32 53 Lishman v. Christie, 19 Q. B. D. 333 ; 56 L. J. Q. B. 538 ; 57 L. T. 652 ; 35 W. E. 744 69b Lister v. Van Haansbergen, 1 Q. B. D. 269; 45 L. J. Q. B. 495; 24 W. E. 395 646 Litt V. Cowley, 7 Taun. 168 ; 2 Marsh. 457 ; Holt, 338 530, 631 Little V. Stevenson, (1896) A. C. 108 ; 74 L. T. 529 ; 22 Sess. Ca. (4th) 796 254a, 625 Liver AlkaU Co. v. Johnson, L. R. 7 Ex. 267 ; L. E. 9 Ex. 338 ; 43 L. J. Ex. 216; 31 L. T. 95 4, 5, 8 Liverpool and Great Western Steam Co. v. Phoenix Insur. Co. (The Montana), 129 U. S. Eep. 397 103a, 210 Liverpool Mar. Credit Co. v. "WUson, L. E. 7 Ch. 501 ; 41 L. J. Ch. 798 ; 26 L. T. 717 ; 20 W. E. 665 594, 697 Liverpool, The, (1893) P. 154 ; 68 L. T. 719 339 Livie V. Janson, 12 East, 648 89 Lizzie, The, L. R. 2 A. & E. 254 ; 19 L. T. 71 316 Lloyd V. General Iron Screw Coll. Co., 33 L. J. Ex. 269 ; 10 L. T. 586 ; 12 W. E. 882 ; 3 H. & C. 284 ; 10 Jur. N. S. 661 77, 87, 88 Lloyd V. Guibert, L. E. 1 Q. B. 115 ; 33 L. J. Q. B. 241 ; 35 L. J. Q. B. 74 ; 12 W. E. 953 ; 13 L. T. 602 ; 6 B. & S. 100, 120 ; 10 Jur. N. S. 949 42, 74, 202, 204, 205, 207, 211, 213, 301 Lloyds, The, 32 L. J. Ad. 197 ; 9 L. T. 236 ; 1 Br. & L. 359 30 Lloyds V. Harper, 16 Ch. D. 290 ; 60 L. J. Ch. 140 ; 43 L. T. 481 730 Lockhart v. Ealk, L. R. 10 Ex. 132 ; 44 L. J. Ex. 105 ; 33 L. T. 96 ; 23 W. E. 753 648, 649, 667 Loder v. Kekule, 27 L. J. C. P. 27 ; 4 Jur. N. S. 93 ; 3 C. B. N. S. 128 . . 718 Loeschmann «. Williams, 4 Camp. 181 619 L. & N. W. Ey. Co. v. Bartlett, 31 L. J. Ex. 92 ; 5 L. T. 399 ; 10 W. E. 109 ; 7 H. & N. 400 484, 523 L. & S. W. Ey. Co. V. James, L. E. 8 Oh. 241 ; 42 L. J. Ch. 337; 28 L. T. 48 ; 21 W. E. 161 27, 28 Lohden v. Calder, 14 T. L. E. 311 69b London Assurance v. Comp. de Moagens, 167 XT. S. 149 93, 172, 203 London Merchant, The, 3 Hagg. 394 , 332 Longford, The, 6 P. D. 60 ; 50 L. J. Ad. 28 ; 44 L. T. 254 ; 29 W. E. 491 331, 350, 394 Lothian v. Henderson, 3 B. & P. 499 , , , 133 Louisa, The, 1 Dod. 317 332 Lowry v. Euseell, 8 Pick. 366 285 Luard 41. Butcher, 2 C. & K. 29 584 Lucas V. Nockells, 4 Bing. 729 ; 2 T. & J. 304 ; 1 M. & P. 783 661 Luke V. Lyde, 2 Burr. 882 ; 1 W. Bl. 190 304, 556, 560 Luke V. South Kensington Hotel Co., 11 Ch. D. 121 ; 48 L. J. Ch. 361 ; 40 L. T. 638; 27 W. E. 514 _'_ _ 35 Lutsoher v. Comptoir d'Escompte de Paris, 1 Q. B. D. 709 ; 34 L. T. 798. 491 Lutwidge v. Grey, Abbott (5th), 307 ; (Uth), iv. 9, 8 ; Maol. (3rd), 479. . 654, 559 TABLE OF CASES CITED. xliii SECT. Lyle Shipping Co. v. Cardiff Corp., 69 L. J. Q. B. 93; 5 Com. Oa. 87. .619, 619a Lyon V. Mells, 5 East, 428 5 Lyons v. Hofenung, 15 A. C. 391 ; 59 L. J. Adm. 19; 63 L. T. 293 511 M. Mao, The, 7 P. D. 126; 51 L. J. Adm. 81; 46 L. T. 907 24, 356, 704 MaoAndrew v. Chappie, L. E. 1 C. P. 643 ; 14 L. T. 556 ; 14 W. E. 891 ; 12 Jur. N. S. 56 230, 231 Mackenzie v. Liddell, 10 Sess. Ca. (4th) 705 146 Mackenzie v. Pooley, 25 L. J. Ex. 124 ; 11 Ex. 638 45 Mackenzie v. Rowe, 2 Camp. 482 154 MaokiU V. Wright, 14 A. C. 106 141a, 272 Mackinnon ii. Miaohin, 6 Madras H. C. Rep. 353 474 Maokay v. Dick, 6 A. C. 251 612 Mackrell «. Simond, Abbott (5th), 333 ; (11th), iv. 9, 10 ; Maol. 483 ; 2 Chitt. 666 571 Maclean v. Dunn, 4 Bing. 722 ; 1 M. & P. 761 125 Macnee v. Gorst, L. R. 4 Eq. 315 ; 15 "W. R. 1197 504 Macrow ». G. W. Ry. Co., L. R. 6 Q. B. 612; 40 L. J. Q. B. 300; 24 L. T. 618; 19 W. R. 873 6 M' Andrew v. Adams, 1 Bing. N. C. 29 ; 4 M. & Scott, 517 223, 284 M'Andrews v. Thatcher, 3 Wallace, 347 ■ 400 M'Arthur ?;. Sears, 21 Wend. 190 8 M'Cance v. L. & N. W. Ry. Co., 34 L. J. Ex. 39; 11 L. T.426; 12 W. R. 1086 ; 3 H. & C. 343 ; 10 Jur. N. S. 1058 729 M'Conrt V. L. & N. W. Ry. Co., Ir. E. 3 CI. 107, 462 107 M'Ewan v. Smith, 2 H. L. C. 309 ; 13 Jur. 265 504 M'Intosh V. Sinclair, Ir. R. 11 C. L. 456 182, 460, 629 McCarthy r. Young, 30 L. J. Ex. 227 ; 3 L. T. 785 ; 9 W. R. 439 ; 6 H. & N. 329 112- McCall V. Houlder, 66 L. J. Q. B. 408 ; 76 L. T. 469 ; 8 Asp. 252. .368, 378, 408 McCawley v. Eurness Ry. Co., L. R. 8 Q. B. 57 ; 42 L. J. Q. B. 4 ; 27 L. T. 485 ; 21 W. R. 140 103 McConnel v. Murphy, L. R. 5 C. P. 203 ; 28 L. T. 713 ; 21 W. R. 609 ... . 261 MeKean v. Mclver, 18 L. T. 410 ; L. R. 6 Ex. 36 469, 484 MoKee v. Hecksher, 10 Daly, 393 , 544 MoLay v. Perry, 44 L. T. 152 261 McLean v. Eleming, 2 H. L. Sc. 128; 25 L. T. 317 69, 71, 581, 648, 666, 671, 672 McLeod V. 1,600 tons of Nitrate of Soda, 55 Fed. Rep. 628 258 McMahon v. Field, 7 Q. B. D. 691 ; 60 L. J. Q. B. 311, 532; 44 L. T. 175 ; 45 L. T. 381 ; 29 W. R. 472 717 Madhu Chunder Dey v. Law, 13 Beng. R. 394 69 Madrazo v. WiUes, 3 B. & Aid. 353 , 214 Magdalen, The, 31 L. J. Ad. 22 ; 6 L. T. 807 346 Maggrath v. Church, 1 Caines, 196 382 Magnin v. Dismore, 62 N. T. Rep. 35 727 Magnus «). Buttemer, 11 C. B. 876 ; 21 L. J. C. P. 119; 16 Jur. 480 87 Majestic, The, 166 U. S. 375 9, 111 Major V. White, 7 C. & P. 41 157, 272 Male V. Roberts, 3 Esp. 163 213 Malpas V. L. & S. W. Ry. Co., L. R. 1 C. P. 336 ; 36 L. J. C. P. 166 ; 13 L. T. 710 ; 14 W. R. 391 67 xliv TABLE OP CASES CITED, SECD. M. S. & L. %. Co. V. Brown, 8 A. & 0. 703 ; 63 L. J. Q. B. 124; 50 L. T. 281; 32W.E. 207; 48 J. P. 388 (see Browm). M. S. & L.Ky. Co.). .103, 110 Manchester Trust v. Pumess, (1895) 2 Q. B. 282, 539 ; 1 Com. Ca. 39 ; 64 L. J. Q. B. 766 ; 73 L. T. 110 114, 152, 164, 156, 160, 670 Manfield v. Maitland, 4 B. &• A. 582 564 Maori King, Cargo per v. Hughes, (1895) 2 Q. B. 550 ; 1 Com. Ca. 104 ; 64 L. J. Q. B. 744 ; 73 L. T. 141 20, 79 Marathon, The, 40 L. T. N. S. 163 62 Margaret, The, 2 Hagg. 275 38 Margetson v. Glynn, (1892) 1 Q. B. 337, (1893) A. C. 351 ; 61 L. J. Q. B. 186 ; 66 L. T. 142 ; 7 Asp. 148 16, 286, 292a Maria Jane, The, 14 Jur. 857 342, 343 Maria, The, L. R. 1 A. & E. 358 ; 16 L. T. 717 ; 15 W. R. 1113 30 Marie, The, 7 P. D. 203 ; 47 L. T. 737 ; 5 Asp. M. C. 27 346 Mark Lane, The, 15 P. D. 135 ; 63 L. T. 468 ; 39 W. R. 47 347 Mariposa, The, (1896) P. 273 ; 66 L. J. P. 104 ; 76 L. T. 54 332, 349 Marpessa, The, (1891) P. 403 714, 719 Marquandt). Banner, 25 L.J. Q. B. 313; 2 Jur. N. S. 708; 6E. &B. 232. .156, 599 Marsden v. Reid, 3 East, 672 , 286 Marsh v. Pedder, 4 Camp. 257 685 MarshaU v. Bolohow, 6 Q. B. D. 231 ; 29 W. R. 792 632 Marshall v. De La Torre, 1 Esp. 367 636 Marshall v. Gamer, 6 Barb. 394 369 Marshall ■„. York, Newcastle & Berwick Ry. Co., 21 L. J. C. P. 34 ; 16 Jur. 124 ; 11 C. B. 655 67 Martha, The, 3 C. Rob. 106 242, 566 Martin Luther, The, Swab. 287 ' 344 Martin v. Great Indian Peniusiilar Ry. Co., L. R. 3 Ex. 9 ; 37 L. J. Ex. 27; 17L. T. 349 67 Marwick v. Rogers, 163 Mass. 50 373b Mary, The Brig, 1 Sprague, 17 376, 409, 413a, 438 Mary Ann, The, L. R. 1 A. & E. 8 ; 36 L. J. Ad. 6 ; 13 L. T. 384 ; 14 W. R. 136 ; 12 Jur. N. S. 31 699 Mary Thomas, The, (1894) P. 108 ; 63 L. J. P. 49 ; 71 L. T. 104 373o Mary L. Peters, The, 68 Fed. Rep. 919 ; 79 Eed. Rep. 998 103d Marzetti v. Smith, 49 L. T. 580 198 461 475 479 Mascotte, The, 51 Fed. Rep; 606 , 459 Maahiter v. BuUer, 1 Camp. 84 553 Matilda, The, 48 L. T. 771; 6 Asp. M. C. 75 43 Matthews v. Gibbs, 30 L. J. Q. B. 65 ; 3 L. T. 551 ; 7 Jur. N. S. 186 ; 9 "^•^•200 304, 305, 306, 682 Maude, The, 36 L. T. 26 ; 3 Asp. 338 333 334 Mavro v. Ocean Mar. Ins. Co., L. R. 9 C. P. 596 ; L. R 10 C P 414 ■ 43 L. J. C. P. 339 ; 44 L. J. C. P. 329 ; 31 L. T. 186 ; 32 L. T. 743 ;' 23 '^■^■7^^ 302,'424, 427 Maxima, The, 39 L. T. 112 ; 4 Asp. M. C. 21 38 4^ Medeiros v. Hill, 8 Bing. 231 ; 1 M. & Scott, 311 ; 5 C. & P. 182 " ! ." ^233 246 Mediana, (1900) A. C. 113; (1899) P. 127 ; 68 L. J. P. 26 ; 80 L t' 173 •' 8 Asp. 493 ■ ■ ' »2i Medina, The, 1 P. D. 272 ; 2 P. D. 5 ; 35 L. T.'779 ; ' 26 W." r! 156 ;' "45 Jj. J.Ad. 81 „,» Meibuhr v. Prichard, Macl. 192 , „ . Meiklereid v. West, 1 Q. B. D. 428 ; 45 L. J. M. C. 91 ; 34 L.T.'ses "• 24 W. xC. yOtJ t... ,, Mellor V. Chappie, Stevens on Stowage (6th), 143 114 281 Melpomene, The, L. R. 4 A. & E. 129 ; 29 L. T. 409 '.'.326 334 TABLE OF CASES CITED. xlv SSCT. Meroantild Bank v. Grladstone, L. R. 3 Ex. 233 ; 37 L. J. Ex. 130 ; 18 L. T. 641; 17W. R. 11 43,46,575,592 Merchant Banking Co. of Loudon v. Phcenix Bessemer Steel Co., 5 Ch. D. 205; 46 L. J. Ch. 418; 36 L. T. 395; 25 W. B. 457 194, 621 Merchant Shipping Co. v. Armitage, L. R. 9 Q. B. 99 ; 43 L. J. Q. B. 24 ; 29L. T. 97, 809; 22 W. R. U 550 Mercurius, The, 1 C. Rob. 288 556 Messageries Imper. Co. i-. Baines, 7 L. T. N. S. 763 ; 11 W. R. 322 39, 42 Messina r. Petroooehino, L. R. 4 P. C. 144 ; 41 L. J. P. C. 37 ; 26 L. T. 561 ; 20 "W. R. 451 697 Metcalfe v. Britannia Ironworks Co., 1 Q. B. D. 613 ; 2 Q. B. D. 423 ; 46 L. J. Q. B. 443; 36L,_T. 451 ; 25 W. R. 720 225, 307, 453, -547 Mexican Prince, The, 82 Fed. Rep. 484 ; 91 Fed. Rep. 1003 l()3e Meyer v. Dresser, 33 L. J. C. P. 289 ; 10 L. T. 612; 12 W. R. 9S3 ; 16 C. B. N. S: 646 : : .70, 191, 549, 686 Meyer i: Ralli, 1 C. P. D. 358 ; 45 L. J. C. P. 741 ; 35 L. T. 838 ; 24 "W. R. 963 ; 697 Meyer, Re (The EmOy), 74 Fed. Rep. 881 103g, 292a Meyer v. Sharps, 6 Taun. 74 600 I Meyerstein v. Barber, L. B. 2 C. P. 38, 661 ; L. R. 4 H. L. 317 ; 39 L. J. C. P. 187 ; 19 L. T. 569 ; 22 L. T. 808 ; 15 "W. R. 998 ; 18 W. R. 1041 ..466, 474," 480, 481, 487, 498, 501, 503 Michenson f. Begbie, 6 Bing. 190 ; 3 M. & P. 442 699 Miebrodt v. Fitzsimon (Energie, The), L. R. 6 P. C. 306 ; 44 L. J. Ad. 25 ; ' 32L T. 579; 23 W. R. 932 .;. ,.475, 476 Migotti V. ColTill, 4 C. P. D. 233 ; 48 L. J. C. P. 695 ; 40 L. T. 747 ; 27 • W. R. 744 ; 571a MUan, The, 31 L. J. Ad. 105 ; 5 L. T. 690 ; Lush. 388 '. 704 Milan Tram-ways Co., Re, Theys, Ex parte,- 22 Ch. D. 122 ; 26 Ch. D. 587 ; 62 L. J. Ch. 29 ; 48 L. T. 213 ; 31 W. R. 107 ; 63 L. J. Ch. 1008 ; 50 L. T. 54.5 ; 32 W. R. 601 586, 598 Milburn v. Jamaica, &c. Co., 4 Com. Ca. 331 161b, 373o, App. B Miles, Ex parte, Isaacs, Re, 15 Q. B. D. 39 ; 64 L. J. Q. B. 566. .520, 522, 525 Miles V. Mcllwraith, 8 A. C. 120 ; 62 L. J. P. C. 17 ; 48 L. T. 689 ; 31 W. R...591 , 36 Miletus, The, Pars. Sh. I. 268 (n.) 86 Milford, The, Swab. 362 ; 4 Jur. N. S. 417 697 MOler V. Borner, (1900) 1 Q. B. 691 ; 82 L. T. 258 142, 261 Miller v. Race, 1 Burr. 452 ; 2 Ld. Ken. 189 194 Miller v. Titherington, 30 L. J. Ex. 217 ; 31 L. J. Ex. 363 ; 3 L. T. 893 ; 9L. T. 231; 10 W. E. 356 ; 6 H & N. 278 ; 7 H. & N. 954 ; 7 Jur. N. S. 214 ; 8 Jur. N. S. 1039 106, 379 MiUer v. "WoodfaU, 27 L. J. Q. B. 120 ; 4 Jur. N, S. 302 ; 8 El. & Bl. 493 572, 600 Mills V. Ball, 2 B. & P. 457 516 Milvain v. Perex, 30 L. J. Q. B. 90 ; '3 L, T. 736,; 9 "W. R. 269 ; 3 El. & Bl. 495; 7 Jur. N. S. 336 646 Mil^^ard v. Hibbert, 11 L. J. Q. B. 137 ; 3 Q. B. 120 379 Minna Craig S.S. Co. v. Chartered Mercantile Bank of India, London and China, (1897) 1 Q. B. 55, 460 ; 2 Com. Ca. 1, 110 ; 66 L. J. Q. B. 339 ; 76 L T. 310 697 Minnehaha, The, Lush. 335 ; 4 L. T. 810 ; 30 L. J. Ad. 211 ; 9 W. R. 925 ; 15 Moo. P. C. C. 133; 7 Jur. N. S. 1257 ' 339 Mirabita v. Imperial Ottoman Bank, 3 Ex. D. 164 ; 47 L. J. Ex. 418 ; 38 L. T. 597 492, 493, 494, 498 Miranda, The, L. R. 3 A. & E. 561 ; 41 L. J. Ad. 82 ; 27 L. T. 389 ; 21 W. E. 84 342 C. — C. 'I xlvi TABLE OF CASES CITED. SECT. Missouri S.S. Co., In re, 42 Oh. D. 321 : 58 L. J. Ch. 721 ; 61 L. T. 316 ; 37 W. R. 696 210, 21 7 Mitchell V. Darthez, 2 Bing. N. C. 555 ; 2 Scott, 771 ; 1 Hodges, 418. .551, 559 Mitchell r. Ede, 11 A. & E. 888 ; 3 P. & D. 613 485, 492 MitcheU v. Kahl, 2 F. & F. 709 129, 723 Mitchell V. L. & Y. Ey. Co., L. E. 10 Q. B. '266 ; 44 L. J. Q. B. 107 ; 33 L. T. 161 ; 23 "W. E. 853 103, 472 MitcheU v. Scaife, 4 Camp. 298 668 Mitoheson v. Nichol, 21 L. J. Ex. 323 ; 7 Ex. 929 262 Mitcheson v. Oliver, 25 L. J. Q. B. 39 ; 1 Jur. N. S. 900 ; 5 E. & B. 419. . 45 M. Moxham, The, 1 P. D. 107 ; 46 L. J. Ad. 17 ; 34 L. T. 559 ; 24 W. E. 650 710 Moakes v. Nicholson, 34 L. J. 0. P. 273 ; 12 L. T. 573; 19 C. B. N. S. 290 489, 492 Moir V. Eoyal Exchange Assurance Co., 3 M. & S. 461 ; 6 Taun. 241 ; 1 Marsh, 570 ; 4 Camp. 84 220, 56.7 Moliere S.S. Co. v. Naylor, 2 Com. Ca. 92 632 Moller V. Jecks, 19 C. B. N. S. 332 630, 718 MoUer r. Living, 4 Taun. 102 ' 580, 681 Moller V. Young, 24 L. J. Q. B. 217 ; 25 L. J. Q. B. 94 ; 2 Jur. N. S. 393 ; 5E. &B. 7, 765 .546, 603, 637, 639, 655, 683 Mollett V. Eobinson (see Eohinson v. MoUett) 184, 189 Monarch, The, 12 P. D. 5 ; 66 L. J. Adm. 114 ; 56 L. T. 204 ; 35 W. E. 292 337 Monsen v. Macfarlane, (1895) 2 Q. B. 562 ; 1 Com. Ca. 51 ; 66 L. J Q B 57 ; 73 L. T. 648 268c, 627a Montgomery v. Foy, (1895) 2 Q. B. 321 ; 65 L. J. Q. B. 18 ; 73 L. T. 12. . 475 Montana, The, 129 U. S. Eep. 397 103b, 210 Monte Rosa, The, (1893) P. 23 ; 62 L. J. P. 20 ; 68 L. T. 299 32 Montoya v. London Assurance Co., 6 Ex. 461 ; 20 L. J. Ex. 254 90 Moore v. Harris, 1 A. C. 318 ; 45 L. J. P. C. 55 : 34 L. T. 519 ; 24 "W. E. 887 73, 105, 208, 212, '470 Moore r. "Wilson, 1 T. E. 659 , 61 Moorsom v. Greaves, '2 Camp. 627 242 572 Moorsom v. Kymer, 2 M. & S. 303 ; 3 Camp. 549.' 602 604 Moorsom v. Page, 4 Camp. 103 262 264 549 Moorson v. Bell, 2 Camp. 616 609 Moran v. Jones, 26 L. J. Q. B. 187 ; 3 Jur. N". S. 663; 7 E. & B. 523. .399, 438 Morewood v. PoUoi, 22 L. J. Q. B. 230 ; 17 Jur. 881 ; 1 El. & Bl.' , ''*^ 24, 76, 83 Morgan v. Castlegate S.S. Co. (See The Castlegate.) Morgan v. Griffith, L. R. 6 Ex. 70 ; 40 L. J. Ex. 46 ; 23 L T 783 • 19 W. E. 957 ^.^L.iac, la _, ^ 164 Morns v. Levison, 1 C. P. D. 155 ; 45 L. J. C. P. 409 ; 34 L. T. 57C • 24 ^y^: ^-^y 142,' 167, '261, 262 Morns v. Eohmson, 3 B. & C. 196 ; 5 D. & E. 35 , _ _ 301 730 Morriss r. Thormondeen, 60 J. P. 644 ' '_'_' 082 Morrison v. Gray, 2 Bing. 260 ; 9 Moo. 484 '.'■■'''...'.'..'.... 5')^ Morrison v. Parsons, 2 Taun. 407 cq-, lIora-le-Blanch r. "Wilson, L. E. 8 C. P. 227 ; 42 L. J. C. P Vo'-' VsL T Ti/'^ •••■•■ '-o' ■■■ ■■ "'^' ^'°^' fi"', 683, 718, 731 Morse v. Slue, Raym. 220 ; 1 Vent. 190, 238 ; 2 Lev. 69 2 3 1 r 1 ^ Moselle, The , 3 2 L. T. 670 \ 30 Moss r. Byrom, 6 T. E. 379 , . _ _ _ Moss V. Smith, 19 L. J. C. P. 225 -'9 C.*B."94 ,"no ,„! Mou.se's Case, 12 Co. Eep. 63 ",' S'. Moxonr. Atkins, 3 Camp. 200 15, 374 * » i . . , , , , . , 169 TABLE OF CASES CITED. xlvii SECT. Mowbray v. Merryweather, (1895) 1 Q. B. 857 ; 2 Q. B. 641 ; 65 L. J. Q. B. 50; 73L. T. 459 714, 717 Muddle V. Stride, 9 C. &'P. 380 78 Mudhopper, The, 40 L. T. 462 345 MuUer v. Gernon, 3 Taun. 394 23, 237, 543 MuUiner v. Horence, 3 Q. B. D. 484 ; 47 L. J. Q. B. 700 ; 38 L. T. 167 ; 26 W. E. 385 662 Murphy v. Coffin, 12 Q. B. D. 87 ; 32 W. R. 616 460, 623, 624b, 625 Musohamp v. Lancaster & Preston Ry. Co., 8 M. & W. 421 ; 5 Jnr. 656 ; 2 Railw. Cas. 607 107 Myers*. Sari, SOL. J. Q. B. 9 ; 9 "W. R. 96; 7 Jur. N. S. 97 169, 170 Myers v. Willis, 25 L. J. C. P. 39, 265 ; 17 C. B. 77 ; 18 C. B. 886 ; 2 Jur. N. S. 41 40 Nasmyth, The, 52 L. T. 392 ; 10 P. D. 41 ; 54 L. J. Ad. 63 ; 33 W. E. 736 ; 5 Asp. M. C. 364 , 348 Nathan v. Giles, 5 Taun. 558 ; 1 Marsh, 226 500 National Bank v. Insurance Co., 95 U. S. 673 172 NaTulshaw i: Brownrigg, 21 L. J. Ch. 908 ; 16 Jur. 979 ; 2 De G. M. & G. 441 504 Naylor v. Mangles, 1 Esp. 109 192 Naylor v. Taylor, 9 B. & C. 718 ; M. & M. 205 ; 4 M. & R. 526 246 Neill V. Ridley, 9 Ex. 677 ; 2 0. L. E. 1018 156, 262, 599 NeiU V. Whitworth, L. R. 1 C. P. 684 ; 34 L. J. C. P. 155 ; 35 L. J. C. P. 304 ; 11 L. T. 677 ; 14 L. T. 670 ; 14 W. R. 844 ; 18 C. B. N. S. 435 ; 11 Jur. N. S. 158 ; 13 W. R. 461 ; 12 Jur. N. S. 761 172 Neish V. Graham, 27 L. J. Q. B. 15 ; 4 Jur. N. S. 49 ; 8 E. & B. 505. .606, 663 NeUie, The, 29 L. T. 516 , 333 Nelson v. Association for Protection of Commeicial Interests, 43 L. J. C. P. 218 663, 664, 682 Nelson i>. Belmont, 5 Duer, 310 ; 21 N. T. 36 400 Nelson n. Dahl, 12 Ch. D. 568 ; 6 A. C. 38 ; 50 L. J. Ch. 411 ; 44 L. T. 381 ; 29 W. E. 543 186, 225, 249, 454, 456, 465, 615, 621, 623, 624b Nelson v. Stephenson, 5 Duer, 538 12 Nepoter, The, L. R. 2 A. & E. 375 ; 38 L. J. Ad. 63 ; 22 L. T. 177 ; 18 "W. R. 49 66, 98, 690, 691 Neptune, The, 16 L. T. N. S. 36 85, 281, 379 Neptune, The, 1 Hagg. 227 ; 12 Moo. P. C. C. 346 335 Nesbitt V. Lushingtou, 4 T. R. 783 82, 94, 367 Ne"w Brunswick S. Boat Co. v. Tiers, 4 ZabrisMe, 697 8 Newberry v. Colvin, 8 B. & C. 166 ; 7 Bing. 190 ; 1 01. & E. 283 ; 4 M. & P. 876; 1 C. & J. 192; 1 Tyr. 55 112, 116, 153, 155, 159 Newman v. Lamport, (1896) 1 Q. B. 20 ; 65 L. J. Q. B. 102 ; 73 L. T. 475 ; 8 Asp. 76 App. B. Newman v. "Walter, 3 B. & B. 612 324, 336 Newport, The, Swab. 335 242 Newsom v. Thornton, East, 17 ; 2 Smith, 207 525 Niagara, The, 77 Fed. Eep. 329 ; 84 Fed. Eep. 902 - 103e Niagara v. Cordes, 21 Howard, 7 (U. S.) 293, 305 Nichol V. Godts, 23 L. J. Ex. 314 ; 10 Ex. 191 164 NichoUs V. Le Feuvre, 2 Bing. N. C. 81 ; 1 Hodges, 255 ; 2 Scott, 146 ; 7 C. & P. 91 620, 522 Nichols V. Marsland, 2 Ex. D. 1 ; 46 L. J. Ex. 174 ; 35 L. T. 725 ; 25 W.E. 173 9, 73 d2 xlviii TABLE OF CASES CITED. SECT. Nicholson v. Chapman, 2 H. Bl. 254 322 Nicholson r. Harper, (1896) 2 Ch. 415 ; 64 L. J. Oh. 672 ; 73 L. T. 19. . . . 604 Nicholson v. Williams, L. R. 6 Q. B. 632 ; 40 L. J. M. C. 159 ; 19 W. K. 793 448 Nielsen v. Neame, 1 Cab. & EU. 288 S80 Nielsen v. Wait, 14 Q. B. D. 516 ; 16 Q. B. D. 67 ; 55 L. J. Q. B. 87 ; 54 L. T. 344 ; 34 W. R. 33 ; 5 Asp. M. 0. 553 .... 182, 196, 458, 460, 613, 629 Niemann v. Moss, 29 L. J. Q. B. 206 ; 6 Jur. N. S. 775 613 Nifa,The, (1892) P. 411 167, 173, 250, 463, 614 Nimrod, The, Ware, 14 (U. S.) 374 Nitro-Phosphate, &o. Co. t). London and St. Katherine's Dock Co., 9 Ch. D. 503 ; 39 L. T. 433 ; 27 W. E. 267 9 Nix V. Olive, Abbott (5th), 393 ; (Uth), iv. 10, 5 517, 534, 536 Noble V. Kennoway, 2 Doug. 510 182 Nobel's Explosives Co. «.. Jenkins, (1896) 2 Q. B. 326; 1 Com. Ca. 436. .82, 293, 464a Nobel's Explosives Co. v. Rea, (1896) 2 Q. B. 326 ; 65 L. J. Q. B. 638 ; 75 L. T. 163 ; 2 Com. Ca. 293 442 Norden S.S. Co. f. Dempsey, 1 C. P. D. 654; 45 L. J. C. P. 764; 24 W. R. 984 169, 199, 623 Norma, The, Lush.' 124 ; 5 L. T. 340 351, 362 Norman v. Binningtou, 25 Q. B. D. 475 ; 59 L. J. Q. B. 490 ; 63 L. T. 108; 38W. R. 702 58, 101, 166 North r. Basset, (1892) 1 Q. B. 333 ; 61 L. J. Q. B. 177 ; 66 L. T. 189 . . 122 North Star, The, 29 L. J. Ad. 73 ; Lush. 45 314, 394, 445 Northey r. Eield, 2 Esp. 613 '. '. . 617 Northumbria, The, L. R. 3 A. & E. 6 ; 39 L. J. Ad. 3 ; 21 L. T. N. S. 681 27 North Western Bank r. Poyuter, (1895) A. C. 56 ; 64 L. J. P. C. 27 ; 72 L. T. 93 499 Norway, The, 12 L. T. 57 ; 13 L. T. 50 ; 3 Moo. P. C. C. N. S. 245 ; B. & L. 404 ; 11 Jur. N. S. 892 ; 13 W. R. 296, 1085.. 15, 142, 293, 295, 460, 546, 560, 680 Notara v. Henderson, L. R. 6 Q. B. 364 ; L. R. 7 Q. B. 225 ; 41 L. J. Q. B. 168; 26L. T. 442; 20 W. R. 442. .14, 15, 16, 289, 291, 293, 294, 295, 300, 408 Nottebohn v. Riohter, 18 Q. B. D. 63 ; 66 L. J. Q. B. 33 ; 35 W. R. 300. , 58, 148, 251a Netting Hm, The, 9 P. D. 105 ; 53 L. J. P. 66 ; 51 L. T. 66 ; 32 W. R. 764; 5 Asp. M. C. 241 726, 729 Nourse v. Sno-w, 6 Greenl. 208 ; Ang. Carr. s. 486 723 Nova Scotia Steel Co. v. Sutherland, &c. Co., 5 Com. Ca. 106 App. B. Nugent v: Smith, 1 C. P. D. 19, 423 ; 45 L. J. C. P. 19, 697 ; 33 L. T. 731 • 34L. T. 827; 24 W. R. 237 ; 25W. R. 117 3,4, 5, 6,9, 10, 12, 89 Nuova Raff aeUna,. The, L. R. 3 A. & E. 483 ; 41 L. J. Ad. 37 ; 24 L T 321 : 20 W. R. 216 122, 695 Nutt V. Bourdieu, 1 T. R. 323 loo Nyholm, Ex parte. Child, Re, 43 L. J. Bk. .21 ; 29 L. T. 634 ; 22 W. R. 17* 562, 563, 663, 664 Nymph, The, Swab. 86 goo O. O^ey V. Portsmouth and Eyde United S. Packet Co., 26 L. J. Ex. 99-11 Ex. 618 •.,#,.,. ' Q Obey, The, L. R. 1 A. & E. 102; 12 Jur. N. S. 817 ".'.'.". 24 26 ^Toctan S S c^'^^"""' ^^ ^- ^- ^- ^^^ ' ^^ -^^ ^- 107 '(see Audersou ' TABLE OF OASES CITED. xlix SECT. O'Connor v. Foster, 10 "Watts, 418 (N.S,) 719, 723 Ogden V. Gratam, 31 L. J. Q. B. 26 ; 5 L. T. 396 ; 10 "W. R. 77 ; 1 B. & S. 773 ; 8 Jiir. N. S. 613 451, 624b, 625 Ogg V. Shuter, 1 C. P. D. 47 ; L. E.. 10 C. P. 159 ; 45 L. J. C. P. 44 ; 33 L. T. 492 ; 24 "W. E,. 100 492 Ogle V. Atkinson, 5 Taun. 759 ; 1 Marsh. 323 491 Oglesby v. Yglesias, 27 L. J. Q. B. 356 ; E. B. & E. 930 128, 646 O'Hanlon v. G. "W. Ey. Co., 34 L. J. Q. B. 164 ; 12 L. T. 490 ; 13 W. E. 741 ; 6 B. & S. 484 ; 11 Jur. N. S. 797 727 Ohrlofe V. Briscal (The Helene), L. E. 1 P. C. 231 ; 4 Moo. P. C. C. N. S. 70 ; 35 L. J. P. C. 63 ; 14 L. T. 873 ; 15 W. E. 202 ; 12 Jur. K. S. 675 ; B. & L. 415, 429 63, 78, 96, 98, 272, 274, 275, 276 Oliver v. Colven, 27 "W. E. 822 479 Oliver v. Pielden, 18 L. J. Ex. 353 ; 4 Ex. 135 221 OlUve V. Booker, 17 L. J. Ex. 21 ; 1 Ex. 416 140, 143 O'Mealey v. "Wilson, 1 Camp. 482 243 Omoa and Cleland Coal and Iron Co. v. Huntley, 2 C. P. D. 464 ; 37 L. T. 184 ; 25 "W. E. 675 115 O'Neil V. Armstrong, (1895) 2 Q. B. 70, 418 ; 65 L. J. Q. B. 7 ; 73 L. T. 178 660 Onward, The, L. R. 4 A. & E. 38 ; 42 L. J. Ad. 61 ; 28 L. T. 204 ; 21 "W. E. 601 311, 312, 316 Oppenheim v. Eraser, 34 L. T. 524 135, 143 Oppenheim v. Russell, 3 B. & P. 42 191, 507, 533, 654 Oquendo, The, 38 L. T. 151 ; 3 Asp. M. C. 558 446 Oranmore, The, "24 Fed. Rep. 922 103a Orient, The, L. E. 3 P. 0. 695 ; 40 L. J. Ad. 29 ; 24 L. T. 918 ; 20 "W. R. 6 684, 707 Oriental S.S. Co. v. Tylor, (1893) 2 Q. B. 618 ; 63 L. J. Q. B. 128 ; 69 L. T. 577 55, 151, 562 Oriental, The, 7 Moo. P. C. 398 ; 3 "W. Rob. 243, 265 316 Orpheus, The, 3 A. & E. 308 ; 40 L. J. Ad. 24 601 Osgood V. Groning, 2 Camp. 466 547, 654 OsmanU, The, 3 "W. Eob. 198 ; 14 Jur. 93 314 Ougier v. Jennings, 1 Camp. 503 (n.) 182 Ouston i>. Hebdeu-, 1 "Wils. 101 38 P. P. & 0. Co. V. Shand, 3 Moo. P. C. N. S. 372 ; 12 L. T. 808 ; 11 Jur. N. S. 771; 13"W. R. 1049 78, 111, 202, 212 Pacific MaU S.S. Co.-?;. New York, &o. Mining Co., 74 Fed. Rep. 564. . . .373a, 399, 400 Pacific, The, (1898) P. 170 ; 67 L. J. P. 65 ; 79 L. T. 125 329 Pacific, The, 10 L. T. 541 ; 33 L. J. Ad. 120 ; B. & L. 243 ; 10 Jur. N. S. mo 685, 699, 701 Paioe V. Walker, L. R. 5 Ex. 173 ; 39 L. J. Ex. 109 ; 22 L. T. 647 ; 18 "W. R. 789 .62, 130 Palermo, The, 10 P. D. 21 ; 54 L. J. P. 46 ; 52 L. T. 390 ; 33 "W. R. 643 ; 5 Asp. M. C; 369 26 Palmer v. Naylor, 23 L. J. Ex. 323 ; 18 Jur. 961 ; 10 Ex. 382 ; 2 C. L. R. 1202 91 Palmer v. Rouse, 27 L. J. Ex. 437 ; 3 H. & N. 605 : 322, 366 Palmer ■J'. Zarifi, 37 L. T. 790 639 Pandorf v. Hamilton (see Hamilton v. Pandorf). ■ • Papayanni v. Grampian S.S, Co., 1 Coni. Ca. 448 , 374a 1 TABLE OF CASES CITED. SECT. Paradine v. Jane, Allyn, 26 '4 Parana, The, 1 P. D. 452; 2 P. D. 118; 36 L. T. 388; 25 W. E. 596.. 726, 726 Parish v. Crawford, 2 Str. 1251 154 Park V. Duncan, 25 Sess. Ca. (4th) 528 161b, App. B. Parker v. James, 4 Camp. 112 288, 727 Parker v. S. E. Ey. Co., 2 C. P. D. 416 ; 46 L. J, C. P. 768 ; 37 L. T. 540 ; 25 "W. R. 564 Ill Parker r. Winlo, 27 L. J. Q. B. 49 ; 4 Jur. N. S. 64 ; 7 E. & B. 942. . 130, 225, 450, 453, 460, 623, 625 Parlement Beige, The, 5 P. D. 197 ; 42 L. T. 273 ; 28 W. K. 642 707 Parmeter v. Todhnnter, 1 Camp. 541 310 Parr v. Anderson, 6 East, 202 ; 2 Smith, 316 289 Parsons v. New Zealand Shipping Co., (1900) 1 Q. B. 714 ; 69 L. J. Q. B. 419 ; 5 Com. Ca. 179 70, 71 Partridge v. Bank of England, 9 Q. B. 399 ; 15 L. J. Q. B. 395 ; 8 Jur. 803 ; 10 Jur. 1031 191, 194 Patria, The, L. E. 3 A. & E. 436; 41 L. J. Ad. 32; 24 L. T. 849. .154, 209, 687 Patten r. Thompson, 5 M. & S. 350 527, 537 Paul -0. Birch, 2 Atk. 621 668, 676 Pauline, The, 2 W. Eob. 358 ; 9 Jur. 286 355 Pajnter v. James, L. E. 2 C. P. 348 ; 16 L. T. 660 ; IS L. T. 449 ; 16 "W. E. 768 546, 584 Peace, The, Swab. 11.5 352 Pearson f. Gosehen, 33 L. J. C. P. 265 ; 10 L. T. 758 ; 12 W. E. 1116 ; 17 C. B. N. S. 352 ; 10 Jur. N. S. 903 43, 44, 173, 666, 720 Pease v. Gloahec, L. E. 1 P. C. 219 ; 35 L. J. P. 0. 66 ; 15 L. T. 6 ; 15 W. E. 201 ; 12 Jur. N. S. 677 ; 3 Moo. P. C. C. N. S. 556 ; B. & L. 449 496, 636 Pederson v. Lotinga, 28 L. T. 267 ; 5 W. E. 290 128, 648 Peek V. Larsen, L.'E. 12 Eq. 378 ; 40 L. J. Ch. 763 ; 25 L. T. 580 ; 19 W. E. 1045 '. _ . . .68, 161, 676 Peek r. North StafE. Ey. Co., 10 H. L. C. 473 ; 32 L. J. Q. B. 211 ; 8 L. T. 768 ; 11 "W. R. 1023 ; 9 Jur. N. S. 914 108, 1 10, 164, 167 Peel V. Price, 4 Camp. 243 63, 288 Pellas V. Neptune Mar. lus. Co., 5 C. P. D. 34 ; 49 L. J. 0. P. 153 ; 42 L. T. 35 ; 28 "W. E. 405 , . gge Pellecat v. Angell, 2 C. M. & E. 311 ; 1 Gale, 187 ; 5 Tyr. 945 216 Pelly V. Eoyal Exchange Ass. Co., 1 Burr. 341 182 Penrose v. Wilkes, cited 3 East, 566 607 Perez v. Alsop, 3 F. & F. 188 657 Pericles, The, B. & L. 80 340 Perla, The, Swab. 230 \ 345 Perry v. Barnett, 14 Q. B. D. 467 ; 15 Q. B. D. 388 ; 54 L. J. Q. B. 351, 466 ; 63 L. T. 585 184^ I90 Peter Der Grosse, The, 1 P. D. 414 ; 34 L. T. 749 ; 3 Asp. M. C. N. S. 195 73 Peters v. Warren Ins. Co., 1 Storey, 463 394 Petersen v. Dunn, 1 Com. Ca. 8 ; 43 W. E. 349 257a Petersen v. Freebody, (1895) 2 Q. B. 294; 65 L. J. Q. B. 12; 73 L. T. l^'^ •' 250, '462, 463 Petrel, The, (1893) P. 320 ; 62 L. J. P. 92 26 Petrocochino i\ Bott, L. E. 9 C. P. 356 ; 43 L. J. C. P. 214 ■ 30 L T ^^° .' ■46l' 468 Phantom, The, L. E. 1 A. & E. 68 ; 14 W. E. 774 ; 12 Jur. N. S. 629. .332, 347 Phelps V. Comber, 29 Ch. D. 813; 54 L. J. Ch. 1017; 52 L T 873- 33 W.E. 829 .'...530 Phelps I'. Hill, (1891) 1 Q. B. 605; 7 Times E. 319 289, 291, 297 TABLE OF CASKS CITED. ll aBOT. Phelps V. L. & N. W. Ey. Co., 34 L. J. C. P. 259 ; 12 L. T. 496 ; 13 W. K. " 782; 19C. B. N. S. 321; 11 Jur. N. S. 652 6 Phillips r. Briard, 25 L. J. Ex. 233 ; 1 H. & N. 21 121 Phillips 4-. Clark, 26 L. J. C. P. 168 ; 2 C. B. N. S. 156 ; 3 Jur. N. S. 467 . . 77, 95 Phillips V. Edwards, 28 L. J. Ex. 52 ; 4 H. & N. 813 53,56 Phillips V. Eyre, L. R. 6 Q. B. 1 ; 10 B. & S. 1004 ; 40 L. J. Q. B. 28 ; 22 L. T. 869 710 Phillips V. Headlam, 2 B. & Ad. 380 18, 284 Phillips V. Rodie, 15 East, 547 658 Phyn V. Royal Exchange Ass. Co., 7 T. R. 505 . . , 99 Picker V. London and County Banking Co., 18 Q. B. D. 516 ; 56 L. J.Q. B. 299 ; 35 W. R. 469 194 Pickering v. Barkley, Styles, 132 ; 2 Roll. Ah. 248, pi. 10 86, 193 Pickeruell v. Jauberry, 3 P. & F. 217 43 Pickup «;. Thames Ins. Co., 3 Q. B. D. 594 ; 47 L. J. Q. B. 749 ; 39 L. T. 341 ; 26 "W. R. 477, 689 18 Pierce v. Windsor, 2 Sprague, 35 278 Pieve Superiore, The, L. R. 5 P. C. 482 ; 43 L. J. Ad. 20 ; 30 L. T. 887 ; 22 W. R. 777 687, 699, 700 Pike.iJ. Ougley, 18 Q. B. D. 708 ; 66 L. J. Q. B. 373 ; 35 W. R. 234. .132, 196 Pilgrim, (1895) P. 117; 64 L. J. P. 78 26 Pilley V. Robinson, 20 Q. B. D. 155 ; 57 L. J. Q. B. 54 ; 58 L. T. 110 ; 36 W. R. 269 35 Pink V. Blaming, 25 Q. B. D. 396 ; 59 L. J. Q. B. 559 ; 63 L. T. 413 88a Pinnas, The, 59 L. T. 526 ; 6 Asp. M. C. 413 324 Pinnook v. Harrison, 3 M. & W. 532 ; 1 H. & H. 114 593 Pirie v. Middle Dock Co., 44 L. T. 426. .364, 366, 370, 371, 373a, 390, 402, 433 Pirie v. Steele, 2 M. & Rob. 49 ; 8 C. & P. 200 192, 423 Pirie v. Warden, 8 So. L. R. 360 ; 9 Sess. Ca. (3rd) 523 66a, 501 Plaice i: AUcock, 4 E. & E. 1074 .- 185 Planohe v. Fletcher, 1 Doug. 251 216, 247 Plummer v. WUdman, 3 M. & S. 482 403, 405 Poingdestre v. Royal Exchange Corporation, Ry. & M. 378 . . . , _ 423 Pole V. Cetcovitch, 30 L. J. C. P. 102 ; 9 C. B. N. S. 430 ; 3 L T. 438 ; 9 W. E. 279 289 Pontida, The, 9 P. D. 102, 177 ; 51 L. T. 849 ; 53 L. J. P. 78 ; 33 W. R. 38 ; 6 Asp. M. C. 330 314 Poutifex V. Mid. Ry. Co., 3 Q. B. D. 23 ; 47 L. J. Q. B. 28 ; 37 L. T. 403 ; 26 W. R. 209 531 Pooley v. Gt. E. Ry. Co., 34 L. T. 637 513 Pope v. Baridge, 10 Ex. 73 234 Pope V. Nickersen, 3 Story's Rep. 465 205 Port Adelaide, The, 38 Fed. Rep. 753 459 Port Adelaide, The, 59 Fed. Rep. 174 262 PortaUs V. Tetley, L. R. 5 Eq. 140 ; 37 L. J. Ch. 139 ; 17 L. T. 344 ; 16 W. R. 503 504 Porter v. Izat, 1 M. & W. 381 ; 1 Tyr. A G-. 639 , 14t Porteua v. Watuey, 3 Q. B. D. 223, 534 ; 47 L. J. Q. B. 643 ; 39 L. T. 195 ; 27 W. R. 30 156, 611, 637, 640, 642, 639, 671 Portman v. Middleton, 27 L. J. C. P. 231 ; 2 C. B. N. S. 322 ; 4 Jur. N. S. 689 714 Postlethwaite v. Freeland, 5 A. 0. 599 ; 49 L. J. Ex. 630 ; 42 L. T. 845 ; 28 W. R. 833. 181, 252, 462, 614, 615, 619, 626 Potter V. Burrell, (1891) 1 Q. B. 97 , 292a, 611 Potter V. New Zealand Sh. Co., 64 L. J. Q. B. 689 ; 1 Com. Ca. 114 . . 141a, 261 Potter n. Ocean Ins. Co., 3 Sumner, 27 , ■ . . . i . . . . 374o lii TABLE OF CASES CITED. SECT. Potter V. Rankin, L. E. 3 C. P. 562 ; L. R. 4 C. P. 76 ; 19 L. T. 318 .... 439 Potts V. BeU, 8 T. R. 648 ; 2 Esp-. 612 24S Powell V. Layton, 3 B. & P. N. R. 365 35 Power 1). WMtmore, 4 M. & S. 141 383, 405, 406 Price V. LiTingstone, 9 Q. B. D. 679 ; 53 L. J. Q. B. 118 ; 47 L. T. 629 ; 5 Asp.'M. C. 13 220,448,567 Price V. Noble, 4 Taun. 123 16, 374 Prickett v. Badger, 26 L. J. C. P. 33 ; 3 Jur. N. S. 66 ; 1 C. B. N. S. 96. . 121 Priestly v. Fernie, 34 L. J. Ex. 172 ; 13 L. T. 208 ; 13 W. R. 1089 ; 3 H. &C. 977; 11 Jur. N. S. 813 47, 132, 589 Primula, The, (1894) P. 128; 63 L. J. P. 118; 70 L. T. 253 564 Princess AUce, The, 3 W. Rob. 138 340 Princess Royal, The, L. R. 3 A. & E. 27, 41 ; 39 L. J. Ad. 29, 43 ; 22 L. T. 39 354, 687, 689 Princess, The, 70 L. T. 388 ; 6 R. 723 69, 156, 161^, 722 Princeton, The, 3 P. D. 90 ; 47 L. J. Ad. 33 ; 38 L. T. 260 30, 31 Pringle v. MoUett, 6 M. & W. 80 630 Prins Hendrik, The, (1899) P. 177 ; 08 L. J. P. 86 ; 80 L. T. 838 ; 8 Asp. 548 31 Prinz Heinrioh, 13 P. D. 31 ; 57 L. J. Adm. 17 ; 58 L. T. 593 ; 36 W. R. 511 352 Priscilla, The, Lush, 1 ; 1 L. T. N. S. 272 ; 5 Jur. N. S. 1421 317, 318 Progress, The, 50 Fed. Rep. 835 82, 222 Progress, The, Eden, 210 ' 351 Prospereiio Palasso, The, 29 L. T. 622 73 Protector, The, 1 W. Rob. 45 707 Prussia, The, 92 Fed. Rep. 838 ; 93 Fed. Rep. 837 103c Pugsley V. Ropkins, (1892) 2 Q. B. 184 ; 61 L. J. Q. B. 645 ; 67 L. T. 369 . 693 PuUer D. Staniforth, 11 East, 232 552, 721 Purrissima Concepion, The, 3 W. Rob. 181 328, 338 Pust V. Dowie, 32 L. J. Q. B. 179 ; 34 L. J. Q. B. 127 ; 8 L. T. 244 • 13 W. R. 459; 9 Jur. N. S. 1322; 5 B. c& S. 20 177 Pyman v. Burt, 1 Cab. & Ell. 207 68, 69b Pymaut!. Dreyfus, 24 Q. B. D. 152 ; 59 L. J. Q. B. 13 ; 61 L. T. 724 249, 460, 624a, 624b Pyreunee, The, Br. & L. 189 ,' , 352 394 Q. Quarman v. Bamett, 6 M. & W. 499 ; 4 Jur. 969 27-4 Quarrier v. Colston, 1 Phillips, 147 ; 6 Jur. 959 215 Quebec Mar. Ins. Co. v. Commercial Bank of Canada, L. R. 3 P. C. 234 ■ 39L. J. P. C. 53; 22 L. T. 559 ; 18 W. R. 769 lo'b, 21 Queensland Nat. Bank v. P. & 0. S. N. Co., 67 L. J. Q B 402 • 78 L T 67; 8 Asp. 338; (1898) 1 Q. B. 567 ' 19a,'l02a Queensmore, The, 53 Fed. Rep. 1022 ^ _ _ _ 55O 553 R. R. '0. Casks of Brandy, 3 Hagg. 257 o-. R. V. City of London Court, (1892) 1. Q. B. 273 ; 61 L. J. Q B "zH'-'ee L. T. 135 ; 7 Asp. 140 ' -„„ R. V. Southend County Court, 13 Q. B. D. 142; 63 L J Q "b "493-32 y^-^'-'!^* :..;.. :.:... 692 TABLE OF CASES CITED, liii SECT. R. V. Stewart, Stevens on Stowage (5th), 149 280 E. «. St. Mary, Warwick, 1 E. & B. 816 ; 22 L. J. M. C. 109 ; 17 Jur. 551 .571a R. V. Two Casks of Tallow, 2 W. Eob. 294 355 Eaoehorse, The, 3 C. Roh. 101 242, 351, 556 RadolifBe v. Bartholomew, (1892) 1 Q. B. 161 571a Rae V. Hackett, 13 L. J. Ex. 216 ; 12 M. & W. 724 224 Raft of Timber, 2 W. Rob. 251 322 Raisby, The, 10 P. B. 114 ; 53 L. T. 56 ; 64 L. J. Adm. 65 ; 33 W. R. 938 ; 5 Asp. M. C. 473 352, 394, 442 Rajah, The, L. R. 3 A. & E. 539 ; 41 L. J. Ad. 97 ; 27 L. T. 102 ; 21 W. R. 14 27 Ralli V. Paddingtou S.S. Co., 5 Com. Ca. 124 58 Ealli V. Troup, 157 U.S. 386 364, 374a Randall i\ Lynch, 2 Camp. 352 ; 12 East, 179 611, 616 Randall v. Roper, 27 L. J. Q. B. 266 ; 4 Jur. N. S. 662 ; E. B. & E. 84. . 713, 730 Rapid, The, 3 Hagg. 419 324a Easohe, The, L. R. 4 A. & E. 127 ; 42 L. J. Ad. 71 ; 22 W. R. 240 345 Rayner v. MitcheU, 2 C. P. D. 357 ; 26 W. E. 633 707 Eayner v. Eederiaktiebolaget Condor, (1895) 2 Q. B. 289 ; 64 L. J. Q. B. 640 ; 73 L. T. 96 ; 1 Com. Ca. 80 59, 161a Eead v. Eann, 10 B. & C. 438 121 Eeadhead v. Mid. Ey. Co., L. E. 2 Q. B. 412 ; L. E. 4 Q. B. 379 ; 36 L. J. Q. B. 181 ; 38 L. J. Q. B. 169 ; 16 L. T. 485 ; 15 W. R. 831 ; 17 W. E. 737; 8 B. &S. 371 ; 9 B. & S. 619 , 17, 18 Eeaves r. Waterman, 2 Speer. 197 87 Eedgrave v. Hurd, 20 Ch. D. 1 ; 51 L. J. Ch. 113 ; 45 L. T. 485 ; 30 W. E. 251 133 Eed Sea, The, (1895) P. 293 ; (1896) P. 20 ; 65 L. J. P. 9 ; 73 L. T. 462 . . 564 Eeeve v. Davis, 1 A. & E. 312 ; 3 N. & M. 873 114 Reg. V. City of London Court, 12 Q. B. D. 116; 51 L. T. 197; 53 L. J. Q. B. 128 ; 32 W. R. 291 695 Reid V. Hoskins, 23 L. J. Q. B. 65 ; 26 L. J. Q. B. 5 ; 3 Jur. N. S. 238 ; BE. &B. 963 238, 243, 270 Rein v. Lane, 8 B. & S. 83 ; 15 L. T. 466 ; 36 L. J. Q. B. 81 ; 15 W. R. 345 120 Reinbeok, The, 60 L. T. 209 ; 6 Asp. M. C. 366 294 Reischer v. Berwick, (1894) 2 Q. B. 548 ; 63 L. J. Q. B. 753 ; 71 L. T. 238 . 89 ReHanoe M. I. Co. «. New Tork, &c. S.S. Co., 77 Fed. Rep. 317 .... . .390, 400 Renpor, The, 8 P. D. 115 ; 62 L. J. Ad. 49; 48 L. T. 887 ; 31 W. R. 640 ; 5 Asp. M. C. 98 326, 326, 327, 349 Renteria v. Ruding, Moo. & M. 511 487 Resolven, The, 9 T. L. R. 75 141, 142 Restitution S.S. Co. v. Pirie, 61 L. T. 330 ; 5 Asp. M. C. 428 161a, 648 Reusse v. Meyer, 3 Camp. 475 138 Reward, The, 1 W. Rob. 174 340 Rex V. Humphrey, M'Clel. & T. 173 683 Reynolds v. Jex, 34 L. J. Q. B. 251 ; 7 B. & S. 86 ; 13 W. R. 968. .43, 44, 161, 162, 674 Reynolds v. Tomlinson, (1896) 1 Q. B. 586 ; 65 L. J. Q. B. 496 ; 74 L. T. 691 : 449, 466, 457, 458 Rhymney S.S. Co. «. Iberian Iron Ore Co., 79 L. T. 240; 3 Com. Ca. 316. . 631 Rialto, The, (1891) P. 175 ; 60 L. J. P. 71 ; 64 L. T. 540 347 Riby Grove, The, 2 W. Eob. 52 601 Rice t.'. Baxendale, 30 L. J. Ex. 371 ; 7 H. & N. 96 727 liv TABLE OF CASES CITED. SECT. mob. V. Coe, 2 Cowp. 639 47 Bioli f. Kneeland, Cro. Jac. 330 ; Hob. 17 3 Eiohards v. L. B. & S. C. Ky. Co., 7 C. B. 839 ; IS L. J. C. P. 251 6 Eiohardson v. N. E. Ey. Co:, L. E. 7 C. P. 75 ; 41 L. J. C. P. 60; 26 L. T. 131 ; 20 W. R. 461 14 Richardson r. Nourse, SB. & Aid. 237 . ,' 320, 432 Richardson v. Rowntree, (189i) A. C. 217 ; 63 L. J. Q. B. 283 ; 70 L. T. 817 ^ ni Richardson v. WiUiamson, L. R. 6 Q. B. 276 ; 40 L. J. Q. B. 145 129 Richardsons v. Samuel, (1898) 1 Q. B. 261 ; 66 L. J. Q. B. 579 ; 77 L. T. 479 257a, 258a, 626 Richmond Hill S.S. Co. v. Trinity House, (1896) 1 Q. B. 493; 2 Q. B. 134; 6a E. J. Q. B. 561 ; 75 L. T. 8 26 Eidsdale v. Newnham, 3 M. & S. 456 ; 4 Camp. Ill 220 Rigborgs Minde, The, 8 P. D. 132 ; 52 L. J. Ad. 74; 49 L. T. 232; 6 Asp. M. C. 123 30, 32 Riley v. Home, 5 Bing. 217, 224 ; 2 M. & P. 331 2, 4 Rio Tinto, The, 9 A. C. 356 ; 60 L. T. 461 ; 8 Asp. M. C. 224 699 Ripley V. Soaife, 6 B. & C. 167 ; 7 D. & R. 818 ; 2 0. & P. 132 572 Ripon, The, 10 P. D. 65 ; 64 L. J. Ad. 56 ; 52 L. T. 438 ; 33 "W. R. 659 ; 5 Asp. M. C. 365 32 Ripon City, The, (1897) P. 226; 66 L. J. P. 110; 77 L. T. 98.... 589, 696, 707 Rising Sun, The, 2 C. Rob. 104 656 Eisoluto, The, 8 P. D. 109 ; 52 L. J. Ad. 46 ; 48 L. T. 909 ; 31 W. R. 657 ; 6 Asp. M. C. 93 728 Ritchie v. Atkinson, 10 East, 295 176, 177, 231, 550 Roanoke, The, 46 Fed. Rep. 297 ; 59 Fed. Rep. 161 105, 373b, 374a Robert Dickinson, The, 10 P. D. 15 ; 54 L. J. Adm. 5 ; 62 L. T. 65 ; 33 W. R. 400 38 Robert Dixon, The, 5 P. D. 64 ; 42 L. T. 344 ; 28 W. R. 716 339 Robertson v. Amazon Tug, &c. Co., 7 Q. B. D. 598 ; 51 L. J. Q. B. 68 ; 46 L. T. 146 ; 30 W. R. 308 ; 4 Asp. M. C. 496 112 Robertson r. Clarke, 1 Bing. 445 ; 8 Moo. 622 169 Robertson v. French, 4 East, 136 ; 4 Esp. 246 168, 173 Robertson v. Jackson, 15 L. J. C. P. 28 ; 10 Jur. 98 ; 2 C. B. 412 620 Robertson v. Wait, 22 L. J. Ex. 209 ; 8 Ex. 299 122, 123, 730 Robins v. Power, 27 L. J. C. P. 267; 4 C. B. K. S. 778 ; 4 Jur. N". S. 810. . .46 Robinson v. Baker, 5 Cush. 137 652 Robinson i\ Bland, 2 Burr. 1077 214 215 Robinson n. Geisel, (1894) 2 Q. B. 685 ; 64 L. J. Q. B. 72 ; 71 L. T. 70 . .' 35 Robinson v. Q. W. Ry. Co., 35 L. J. C. P. 123 ; L. R. 1 C. P 329 ■ 14 W. R. 206; 1 H. &R. 97 '....103 Robinson v. Knights, L. R. 8 C. P. 465 ; 42 L. J. C. P. 211 : 28 L T 820'- 21 W. R. 683 ......'..'.....' 660 Robinson v. Macdonnell, 6 M. & S. 228 , ^ 595 Robinson t: MoUett, L. R. 7 H. L. 802 ; 44 L. J. C. P. 362 ; 33 L T 644'- 20^.^544 .'.184,189 Robmson ». Price, 2 Q. B. D. 91, 295 ; 46 L. J. Q. B. 551 ; 36 L T 354 • 25W. R.469 366,368,385 Robmson v. Turpin, 1 Peake, N. P. C. 203 (n.) 462 Robson i). The Kate, 21 Q. B. D. 13 ; 57 L. J. Q. B. 546 ; 69 L T 557 '• 36 W. R. 910 ■ ' gg2 Rodger v. Comptoir d'Escompte de Paris, L. R. 2 P. C 393- 38 L J PC 30;21L.T.33; 17 W. R. 468 .'.520,522,533,538 Rodgers v. Forrester, 2 Camp. 483 g,^ Rodney, The, (1900) P. 112; 69 L. J. P. 29 ."'.".".".'.".".'.'.".".'.'.".'.'."lOl " I03e TABLE OF CASES CITED. Iv SECT. 'EodocanaoH ». Milburn, 17 Q. B. D. 316 ; 18 Q. B. D. 67 ; 56 L. J. Q. B. 202 ; 56 L. T. 594 ; 35 W. E. 241 ISl, 161, 566, 727 KodooonacM v. Elliott, L. R. 9 C. P. 518 82 Eoecliff, The, L. R. 2 A. & E. 363 ; 38 L. J. Ad. 56 ; 20 L. T. 586 ; 17 W. R. 545 601 Eoelandts v. Harrison, 23 L. J. Ex. 169 ; 2 C. L. R. 995 ; 9 Ex. 441 . . 220, 567 Rogers d. Hunter, M. & M. 63 ; 2 C. & P. 601 640, 611 Rohl V. Pair, 1 Esp. 445 86 Rona, The, 5 Asp. M. 0. 259 ; 51 L. T. 28 21, 62, 78, 289, 291 Rona, The, 7 P. D. 247 ; 51 L. J. Ad. 65 ; 46 L. T. 601 ; 30 W. R. 614 ; 4 Asp. M. C. 520 693, 693 Ronneherg v. Falkland Islands Co., 34 L. J. C. P. 34 ; 10 L. T. 530 ; 12 W. R. 914; 17 C.B.N. S. 1 ; 10 Jur. K. S. 940 718 Rookwood, The, 10 T. L. R. 314 257, 257b Rooth ». N. E. Ry. Co., L. R. 2 Ex. 173 ; 36 L. J. Ex. 83 ; 15 L. T. 624 ; 15"W. R. 695 110 Roper V. Johnson, L. R. 8 C. P. 167 ; 42 L. J. C. P. 63 ; 28 L. T. 296 ; 21 "W. R. 384 719 RoBoow V. Corson, 8 Taun. 684 99 Rose V. Bank of Australasia, (1894) A. C. 687 ; 63 L. J. Q. B. 504 ; 70 L. T. 422 400, 401, 410 Eosevear China Clay Co., Ex parte, 11 Ch. D. 560 ; 48 L. J. Bk. 100 ; 40 L. T. 730 ; 27 W. R. 591 511 Ross V. Hunter, 4 T. R. 33 99 Eoth V. Taysen, 73 L. T. 628 ; 1 Com. Ca. 306 719 Rothhnry, The, 13 P. D. 119; 57 L. J. Adm. 99; 59 L. T. 672; 37 W. R. 158 283 Eotherfield S.S. Co. v. Tweedy, 2 Com. Ca. 84 130a, 261, 583a Eousillon V. Eousillon, 14 Ch. D. 351 ; 49 L. J. Ch. 339 ; 42 L. T. 679 ; 28'W. E. 623; 44 J. P. 663 214, 697 Eouth V. MacMUlan, 33 L. J. Ex. 38 ; 9 L. T. 541 ; 12 W. R. 381 ; 2 H. & C. 750 ; 10 Jur. N. S. 158 140 Rowe V. Pickford, 8 Taun. 83 ; 1 Moo. 526 513 Roxburgh i. Cox, 17 Ch. D. 520 ; 50 L. J. Ch. 772 ; 45 L. T. 223 ; 30 W. R. 74 598 Royal Exchange Shipping Co. v. Dixon, 12 A. C. 11 (see Dixon it. Royal Exchange Shipping Co.) 15, 16, 196, 281 Royal Mail Steam Packet Co. v. English Bank of Rio de Janeiro, 19 Q. B. D. 362 ; 57 L. J. Q. B. 31 ; 36 W. R. 105 293, 398, 399, 400 Ruby, The, 15 P. D. 139, 164 30 Ruby Queen, The, Lush. 266 707 Ruck V. Hatfield, 5 B. & A. 632 ., 60 Eumball v. Metropolitan Bank, 2 Q. B. D. 194 ; 46 L. J. Q. B. 346 ; 36 L. T. 240 ; 25 W. R. 366 194 Runquist v. Ditohell, 3 Esp. 64 ; 2 Camp. 556 66 Eusden v. Pope, L. E. 3 Ex. 269 ; 37 L. J. Ex. 137 ; 18 L. T. 651 ; 16 W. E. 1122 , 591, 592, 595 Eushforth v. Hadfield, 6 East, 519 ; 7 East, 224 ; 2 Smith, 264 . .185, 653, 654 Eussell V. Griffith, 2 E. & E. 118 123 Eussell V. Niemann, 34 L. J. C. P. 10 ; 10 L. T. 786 ; 13 "W. E. 93 ; 17 C. B. N. S. 163 11, 81, 86, 160 Russian S. Nav. Co. v. Silva, 13 C. B. N. S. 610 583 Rutland, The, (1897) A. 0. 333 ; (1896) P. 281 ; 66 L. J. P. 105 ; 76 L. T. 662 30 Ryall V. Eowles, 1 Vesey, 348 596 I VI TABLE OP CASES CITED. S. SECT. Sack V. Ford, 32 L. J. C. P. 12 ; 13 C. B. N. S. 90 ; 9 Jur. N. S. 750 .... 274 Salacia, The, 32 L. J. Ad. 43 593, 5,98 Salomons v. Nissen, 2 T. E. 674 532, 533, 538 Samuel v. Eoyal Exchange Assurance Co., 8 B. & C. 119 624b Samuel W. Hall, The, 49 Fed. Kep. 281 222 Saudeman v. Seurr, L. R. 2 Q. B. 86 ; 36 L. J. Q. B. 58 ; 15 L. T. 608 ; 15 W. E. 277; 8 B. & S. 50 42, 154, 157, 161, 274 Sanders v. Jenkins, (1897) 1 Q. B. 93 ; 66 L. J. Q. B. 40 623, 624b Sanders v. McLean, 11 Q. B. D. 327 ; 52 L. J. Q. B. 481 ; 49 L. T. 462 ; 31 W. R. 698 55, 486, 503 Sanders v. Stuart, 1 C. P. D. 326 ; 45 L. J. C. P. 682 ; 35 L. T. 370 ; 24 W. E. 949 714 Sanders ». Vanzeller, 4 Q. B. 260 ; 11 L. J. Q. B. 261 ; 12 L. J. Ex. 497 ; 2 G. &D. 244; 3 G. &r>. 580 62, 603 Sandfield, The, 79 Fed. Eep. 371 ; 92 Fed. Eep. 663 103e Sanguinetti r. Pacific S. Nay. Co., 2 Q. B. D. 238 ; 46 L. J. Q. B. 105 ; 35 L. T. 658 ; 25 W. R. 150 648, 649 San Roman, The, L. R. 5 P. C. 301 ; L. E. 3 A. & E. 583 ; 42 L. J. Ad. 46; 21W. E. 393; 28 L. T. 381 H, 82, 151, 209, 289 Santa Anna, The, 32 L. J. Ad. 198 688 Santipore, The, 1 Spk. 231 333 Santos V. Brioe, 30 L. J. Ex. 108 ; 6 H. & N. 290 565 Santos V. lUidge, 29 L. J. C. P. 348 ; 8 "W. R. 705 ; 6 Jur. N. S. 1348 ; 8 C. B. N. S. 861 , 214 Sappho, The, L. R. 3 A. & E. 142 ; 3 P. C. 690 ; 40 L. J. Ad. 47 ; 24 L. T. 795 ; 19 W. E. 24 342 Sara, The, 14 A. C. 209 ; 12 P. D. 158 ; 56 L. J. Adm. 160 ; 57 L. T. 328 ; 36W. R. 826 698, 699,706 Sarah Christian, 1 C. Rob. 237 566 Sarah, The, 3 P. D. 39 ; 37 L. T. 831 332 Saratoga, The, Lush. 318 338, 339 Sargent v. Morris, 3 B. & Aid. 277 61, 62 Sarpedon, The, 3 P. D. 28; 37L.T. 505; 26 W. R. 374. .324, 325, 329,330,331 Satauita, The, (1897) A. C. 59 ; (1895) P. 248 ; 66 L. J. P. 1 ; 75 L. T. 337 • 8 Asp. 190 26 Saunders v. Busher, 4 Camp. 54 (n.) 55 Saunders v. Drew, 3 B. & Ad. 445 662 564 Saunderson v. Griffith, 5 B. & C. 909 ; 8 D. & E. 643 125 Saville v. Campion, 2 B. & Aid. 503 555 Saxon Ship Co. v. Union S.S. Co., 4 Com. Ca. 298 ; 68 L. J. Q B 914 • 81L.T. 246 258b,' 258c Sayward v. Stevens, 3 Gray 97 gg Scaife v. Farrant, L. R. 10 Ex. 358 ; 44 L. J. Ex. 36, 234 ; 32 L T 563 ■ ' 33 L. T. 278 ; 23 W. R. 469, 840 .'.... .' 4^ g Scaife v. Tobin, 3 B. & Ad. 623 296 443* 444 Soaramanga 1). English, 1 Com. Ca. 99 -jig Scaramanga v. Stamp, 4 C. P. X). 316 ; 5 0. P. D. 295 ; 48 L J C P 478 '• 49L. J. C. P. 674; 40L. T. 191; 42 L. T. 840 ; 28 W. E. 691. '.16, 287, 292 Scarf V. Jardine, 7 A. C. 345 ; 61 L. J. Q. B. 612 ; 47 L. T. 258 ; 30 W. E. 893 ■ J J2 Scarf e v. Morgan, 4 M. & W. 270 ; 1 H. & H. 292 ".",'."."653 680 Schibsby v. Westenholz, L. E. 6 Q. B. 155 ; 40 L. J. Q B 73 ■ 24 T, t' 93: 19-W. R. 587 ....'....'..... 697 Schilizzi V. Derry, 34 L. J. Q. B. 193; 1 Jur. N. S. 795;' 4 E "& B *^^ 225,454 TABLE OF CASES CITED. IVll SECT. Sohlosa V. Heriot, 14 C. B. N. S. 69 ; 32 L. J. C. P. 211 : 8 L. T. 246 ; 11 W. R. 596 177, 366, 373a, 373b, 402 Sohmalz v. Avery, 20 L. J. Q. B. 228 ; 16 Q. B. 655 ; 15 Jur. 291 128 Schmidt v. Eoyal Mail S.S. Co., 45 L. J. Q. B. 646 24, 80, 106, 373b Sohotsmans v. Lane. & York. E,y. Co., L. R. 1 Eq. 349 ; L. R. 2 Ch. 332; 36 L. J. Ch. 361 ; 16 L. T. 189 ; 15 W. R. 637 508, 512, 531 Sohulze V. a. E. Ry. Co., 19 Q. B. D. 30 ; 56 L. J. Q. B. 442 ; 57 L. T. 438 ; 35 W. R. 683 724 Schuster v. Eletcher, 3 Q. B. D. 418 ; 47 L. J, Q. B. 530 ; 26 W. R. 766 401, 414 Schuster v. McKeUar, 26 L. J. Q. B. 281 ; 3 Jur. N. S. 1320 ; 7 E. & B. 704 60, 67, 155, 491 Schwau, The, (1892) P. 419 27 Sootson V. Pegg, 30 L. J. Ex. 225 ; 3 L. T. 753 ; 9 W. R. 280 ; 6 H. & N. 295 639 Scott V. Eoley, 5 Com. Ca. 53 144 Scott ti.- Irving, 1 B. & Ad. 605 , 189 Scott V. Petitt, 3 B. & P. 469 ; 517 Scott i\ Thompson, 1 B. & P. N. R. 181 289 Scotthom V. South Staffordshire Ry. Co., 22 L. J.Ex. 121 ; 8 Ex. 341 ; 7 Ry. Cases, 810 , 484 Scout, The, L. R. 3 A. & E. 812; 41 L. J. Ad. 42 ; 26 L. T. 371; 20 W. R. 617 343 ScoveU V. Bevan, 19 Q. B. D. 428 ; 56 L. J. Q. B. 604 ; 36 W. R. 301 .... 692 Scrutton V. Childs, 36 L. T. 212 173, 250, 463 Soudder i: Bradford, 14 Pick. 13 416 Sea Ins. Co. v. Blogg, (1898) 2 Q. B. 398 ; (1898) 1 Q. B. 27 ; 67 L. J. Q. B. 757 ; 78 L. T. 785 ; 8 Asp. 412 567 Sea Ins. Co. v. Hadden, 13 Q. B. B. 706 ; 63 L. J. Q. B. 252 ; 50 L. T. 657 ; 32 W. R. 841 ; 6 Asp. M. C. 230 591, 600 Sea Ins. Co. of Scotland v. Gavin, 4 Bligh. N. S. 578 ; 2 Dow & C. 129 . . 448 Seager i'. New York & C. Mail S.S. Co., 55 Fed. Rep. 324, 880 463 Sears v. Wingate, 3 AUen, 103 (Mass.) 69 Seeger v. Duthie, 29 L. J. C. P. 253 ; 30 L. J. C. P. 65 ; 9 W. R. 166 ; 8 C. B. N. 8. 45, 72 ; 6 Jur. N. S. 1095 ; 7 Jur. N. S. 239 176, 686 Serraino v. Campbell, (1891) 1 Q. B. 283 ; 26 Q. B. D. 501 ; 63 L. T. 107. . 156, 160, 637, 669, 671 Servia, The, (1898) P. 36 ; 67 L. J. P. 36 ; 78 L. T. 54 ; 8 Asp. 353 30 Seville Sulphur, &c. Co. v. Colvils, 25 Sc. L. R. 437 ; 16 Sess. Ca. (4th), 616 ,..: 18, 79, 102a, 144 Sevin V. Deslandes, 30 L. J. Ch. 457 39 Sewell V. Burdick, 10 A. C. 74 ; 13 Q. B. D. 159 ; 10 Q. B. D. 363 ; 54 L J Q B. 156 ; 52 L. T. 445 ; 33 W. R. 461 ; 5 Asp. M. C. 376 ... . 56, 66, 487, 499, 532, 690 Sewell i;. Crop, 1 C. & P. 392 186 Seymour «;. Bridge, 14Q. B.D. 460; 54 L. J. Q. B. 347 190 Shadforth V. Cory, 32 L. J. Q. B. 78, 379 ; 8 L. T. 736 ; 11 W. R. 918. . . . 639 Shadforth v. Higgins, 3 Camp. 385 221 Shamrock S.S. Co. v. Storey, 81 L. T. 413 ; 5 Com. Ca. 21 ; 4 Com. Ca. 80. .268c Shand v. Grant, 9 L. T. 390 ; 15 C. B. N. S. 324 677 Shand V. SaunderSon, 28 L. J. Ex. 278 : 4 H. & N. 381 162, 161, 668 Sharman/i). Brandt, L. R. 6 Q. B. 720 ; 40 L. J. Q. B. 312 ; 19 W. R. 956 . 128 Sharp V. Gibbs, 1 H. & N. 801 220,567 Sharp V. PoweU, L. E. 7 C. P. 253 ; 41 L. J. C. P. 95 ; 26 L. T. 436 ; 20 W. R. 584 ; 717 Shaw V. Aitken, 1 Cab. & EU. 195 262 Shawf. G.W.Ry. Co., (1891)1 Q.B, 373; 70 L. T. 283 94, 110 Iviii TABLE OF CASES CITED. SECT. Shenston v. Hilton, (1894) 2 Q. B. 452 ; 63 L. J. Ci. B. 684 ; 71 L. T. 339. . 504 Shepard v. De Bemales, 13 East, 565 602, 607 Shepherd v. Gt. N. Ry. Co., 21 L. 3. Ex. 286; 8 Ex. 30 ; 7 Eailw. Cas. 310 6 Shepherd v. Harrison, L. E. 4 Q. B. 196, 493 ; L. R. 5 H. L. 116 ; 38 L. J. Q. B. 105, 177 ; 40 L. J. Q. B. 148 ; 24 L. T. 857 ; 20 W. R. 1 . .488, 494, 506 Shepherd v. Kottgen, 2 C. P. D. 678, 685 ; 47 L. J. C. P. 67 ; 37 L. T. 618 ; 26 W. K. 120 369, 387 Sheppaid r. Union Bank of London, 31 L. J. Ex. 154; 8 Jur. N. S. 264 ; 7 H. & N. 661 504 Sheppard v. Wright, Show. Pari. C. 18 416 Sheridan v. New Quay Co., 28 L. J. C. P. 58 ; 4 C. B. N. S. 618 ; 6 Jur. N. S. 248 67, 483 Shield V. Wilkins, 19 L. J. Ex. 238 ; 6 Ex. 304 226 Shields v. Davis, 6 Taun. 66 ; 4 Camp. 119 47, 549, 589 Shillito, The, 3 Com. Ca. 44 161 Shipton V, Thornton, 9 A. & E. 314 ; 1 P. & D. 216 302, 305 Shirwell v. Shaploek, 2 Chitty, 397 466 Shoe V. Low Moor Iron Co., 49 Eed. Rep. 252 ; 46 Eed. Rep. 125 388 Short V. Simpson, L. R. 1 C. P. 248 ; 35 L. J. C. P. 147 ; 13 L. T. 674 ; 14 W. R. 307 ; 12 Jur. N. S. 258 ; 1 H. & R. 181 62 Short V. Spackman, 2 B. & Ad. 962 130 Shubriok v. Salmond, 3 Burr. 1 637 , 222 Sibsou V. Ship Barcraig Co., 24 Sess. Ca. (.4th), 91 122 Sickens v. Indng, 29 L. J. C. P. 25 : 7 C. B. N. S. 165 ; 6 Jur. N. S. 200. . 126 Sickness, &c. Association v. General Accident Ass. Corp., 19 Sess. Ca. (4th) 9" 671a Sievekmg v. Maas, 25 L. J. Q. B. 275, 358 ; 6 E. & B. 670 ; 2 Jur N S 426, 515 447 Siffken v. Wray, 6 East, 371 625 Silesia, The, 6 P. D. 177 ; 43 L. T. 319 ; 29 W. R. 166 .....'.'."."." .' ." ' ,' '. .' .' 347 Silvia, The, 68 Eed. Rep. 230 , ". , .".".'.'loVa " 103d Simeon v. Bazett, 2 M. & S. 94 ; 5 Taun. 824 216 947 Simmons i). London Joint Stock Bank, (1891) C. 270 ; 60 L J Ch 313 • 62 I^-T-427 ■ '... 194 Simouds J'. White, 2 B. & C. 805 ; 4 D. & R. 375 207, 364 427 Simons «). G. W. Ry. Co., 26 L. J. C. P. 25 ; 18 C. B. 805 .'...!....' 110 Simpson v. Blues, L. R. 7 C. P. 290 ; 41 L. J. C. P. 121 ■ 26 L T 697 -"20 ,. W.R.680 .'..:... .'693, 699 Simpson V. L. & N. W. Ry. Co., 1 Q. B. D. 274 ; 45 L. J. Q. B 182 • 33 L.T. 805; 24 W. R. 294 ^ig 734 Simpson v. Thompson, 3 A. 0. 279 ; 38 L. T. 1 '. .'.'.'.'.".'.'" ' ' 702 Simpson v. Toung, 2 F. & P. 426 ' _" -„ Sims V. Gumey, 4 Bing. 513 '_ Siordetr. Hall, 4 Bing. 607; 1 M. & P. 561 ' ...... .....\ """ jg Sir Henry Webb, The, 13 Jur. 639 .'"."..".'."!! 43 Sir Ralph Aberorombie, The, L. R. 1 P. C. 454 • 4 Moo.' P. "6. C N S * 374 " 344 Sjoerds V. Luscombe, 16 East, 201 , ,n „„ ' „,, Skandinay,The,60L.J.P. 46; 51 L. J. P 93 ^^u, ^za, 2So Skibladner, The, 3 P. D. 24 ; 47 L. J. Ad. 84 ; 38 L.'t." ieo m 334 Skmner «). TJpshaw, 2 Ld. Raym. 752 ' ,„ Slater v. Hayward Rubber Co., 26 Conn. 128 ," «,.„ Slubey r. Heyward, 2 H. Bl. 504 Small V. Moates, 9 Bing. 574 ; 2 M. & Scott,' 6'7'4' ' .'.'.'.'.' '152 ' IM 'er'i ' Rl'a fivq SmaU.. United Kingdom, &c. Assoc, (1897 2 Q. B 2 ^ L J B 736 ; 76 L. T. 828 . -^ -^- *^ , bb 1^. J. Q. B. 100 TABLE OP CASES CITED. llx SECT. Smeed v. Foord, 28 L. J. Q. B. 178 ; 1 E. & E. 602 ; 5 Jur. N. S. 291 ... . 715, 717, 719, 724 Smidt V. Tiden, L. R. 9 Q. B. 446 ; 43 L. J. Q. B. 199 ; 80 L. T. 891 ; 22 W. E. 913 ; 156, 162 Smith V. Bedouin S. Nav. Co., (1896) A. C. 70 ; 65 L. J. P. 0. 8 69, 78 Smith V. Dart, 14 Q. B. D. 105 ; 54 L. J. Q. B. 121 ; 52 L. T. 218 ; 33 W. R. 405 ; 5 Asp. M. C. 360 149, 221, 449 Smith V. Goss, 1 Camp. 282 , 507, 516, 523 Smith V. Green, 1 C. P. D. 92 ; 45 L. J. C. P. 28 ; 33 L. T. 572 ; 24 W. R. 142 713, 717 Smith f. Kirby, 1 Q. B. D. 131 ; 24 W. R. 207 27 Smith V. McGuire, 1 F. & E. 199 ; 27 L. J. Ex. 465 ; 3 H. & N. 564. . 120, 125, 719 Smith V. Plummer, 1 B. & A. 575 589 Smith V. Pyman, (1891) 1 Q. B. 42, 742 562, 666 Smith ». Rosario Nitrate Co., (1894) 1 Q. B. 174 ; (1893) 2 Qi B. 323 ; 70 L. T. 68 182, 252, 258 Smith V. Scott, 4 Taun. 126 89 Smith V. Shepherd, Abbott (5th), 252 ., 8 Smith V. Sieveking, 24 L. J. Q. B. 257 ; 5 E.'& B. 589 ; 2 Jur. N. S. 1135. . 156, 637, 669, 671 Smith V. Tregarthen, 57 L. T. 58 ; 6 Asp. 137 ; 56 L. J. Q. B. 437 ; 35 W.R. 665 726,727 Smith V. "Wilson, 3 B. & Ad. 728 169 Smith V. Wilson, 6 M. & S. 78 ; 8 East, 437 654, 571 Smith r. "Wilson, (1896) a! C. 579; 65 L.J. P. C. 68; 75 L.T. 81 360 Smurthwaite v. Hannay, (1894) A. C. 494; 63 L. J. Q. B. 737 ; 71 L. T. 157 605 Smurthwaite v. "Wilkins, 31 L. J. C. P. 214 ; 5 L. T. 842 ; 7 L. T. 65 ; 10 "W. R. 386 ; 11 C. B. N. S. 842 , 64, 65 Sneesby v. L. & T. Ry. Co., L. R. 9 Q. B. 263 ; 1 Q. B. D. 42 ; 43 L. J. Q. B. 69 ; 45 L. J. Q. B. 1 ; 33 L. T. 372'; 24 "W. R. 99 717 Snell V. Marryatt, Abbott (5th), 213 ; (Uth), iv. 4, 1 56 Soames v. Lonergan, 2 B. & C. 564 ; 4 D. & R. 74 , 236 Soares v. Thornton, 7 Taun. 627 ; 1 Moo. 373 99, 100 Soblomsten, The, L. E. 1 A. & E. 293 ; 36 L. J. Ad. 5 ; 15 L. T. 393 ; 15 ■W. E. 591 ■ 307, 554, 559, 560 Sodergren r. Flight, cited 6 East, 622 657 SoUy v. "Whitmore, 5 B. & Aid. 45 286 Solway Prince, (1896) P. 120 ; 65 L. J. P. 45 ; 74 L. T. 32 335 Somes V. British Empire Shipping Co., 30 L. J. Q. B. 229 ; 28 L. J. Q. B. 220 • 27 L. J. Q. B. 397 ; E. B. & E. 353 ; 5 Jur. N. S. 675 ; 6 Jur. N. S. 761; 8H. L. C. 338; 8 "W. R. 707 683 Sorensen v. Keyser, 62 Fed. Rep. 163 257 South Staffordshire, &c. Co. v. Sickness, &o. Assoc, (1891) 1 Q. B. 402 ; 60 L. J. Q. B. 260; 64 L. T. 279 671a Southampton S. CoHiery Co. v. Clarke, L. R. 4 Ex. 73 ; L. R. 6 Ex. 53 ; 40L. J. Ex. 8; ig-W. R. 214 264 Southcote'e case, 4 Co. Rep. 836 3, 11 Southgate, The, (1893) P. 329 91, 101 Southport, The Mayor, &c. of, v. Morris, (1893) 1 Q. B. 359 ; 62 L. J. M. 0. 47 ; 68 L. T. 221 ; 7 Asp. 279 24 Southwell V. Bowditoh, 1 C. P. D. 374 ; 45 L. J. C. P. 630 ; 35 L. T. 196 ; 24 W.R. 838 130 Spafford v. Dodge, 14 Mass. 66 436 Spaight V. Eamworth, 5 Q. B. D. 115 ; 49 L. J. Q. B. 346 ; 42 L. T. 296 ; 28 W.R. 508 , 678 Ix TABLE OF CASES CITED. SECT. Spaldinff V. Eudino- 12 L. J. Ch. 503 ; 15 L. J. Ch. 374 ; 6 Bear. 376 ... . 507, '^ " 533, 640, 566 Sparks v. Weston, 1 Wash. C. C. 238 278 Sparrow v. Paris, 31 L. 3. Ex. 137; 7 H. & N. 594 ; 5 L. T. 799 ; 8 Jur. N. S. 391 "2 Spears v. Hartley, 3 Eap. 81 192 Spence v. Chadwick, 16 L. J. Q. B. 313 ; 10 Q. B. 517 ; 11 Jur. 872 ... . 23, 86, ^ 216, 247 Spence r. Union Marine Ins. Co., L. K. 3 C. P. 427 ; 37 L. J. C. P. 169 ; 18 L. T. 632; 16 W. R. 1010 377, 505 Spirit of the Ocean, The, 12 L. T. 239 ; 34 L. J. Ad. 74 26 Splidt V. Bowles, 10 East, 279 591 St. Cloud, The, 8 L. T. N. S. 54 ; B. & L. Ad. 4 154, 157, 685, 690 St. Lawrence, The, 5 P. D. 250 ; 49 L. J. Ad. 82 317 Stafford v. Dyer, (1895) 1 Q. B. 566 ; 64 L. J. M. C. 194 ; 72 L. T. 114 . . 30 Staffordshire, The, L. R. 4 P. C. 194 ; 41 L. J. Ad. 49 ; 27 L. T. 46 ; 20 W. R. 557; 8 Moo. P. C. C. N. S. 443 310, 312," 313, 316 Stainhank t). Penning, 11 C. B. 51 ; 20 L. J. C. P. 226 ; 15 Jur. 1082 312 Stainhank v. Shephard, 22 L. J. Ex. 341 ; 1 C. L. R. 609 ; 17 Jur. 1032 ; 13C. B. 418 312 Stamma v. Brown, 2 Str. 1173, cited 7 T. R. 508 99, 100 Standard, The, Swah. 267 ; ... . 598 Staniforth v. Lyall, 7 Bing. 169 ; 4 M. & P. 829 ..'...; 552, 721 Stanton v. Austin, L. R. 7 C. P. 651 ; 41 L. J. C. P. 218 249, 621 Stanton v. Banks, 27 L. J. M. C. 105 ; 8 E. & B. 445 ; 4 Jur. N. S. 10, 332 30 Stanton v. Richardson, L. R. 7 C. P. 421 ; L. R. 9 C. P. 390 ; 45- Li J. C.P. 78; 33 L. T. 193; 24 W. R. 324 18, 19a, 144, 145 Star of India, The, 1 P. D. 466 ; 45 L. J. Ad. 102 ; 35 L. T. N.' S. 407 ; 25 W. R. 377 ; 728 Stavers v. CurHng, 3 Bing. N. C. 355 ; 3 Scott, 740 ; 2 Hodges, 237 174 Steel r. Lester, 3 C. P. D. 121 ; 47 L. J. C. P. 43 ; 37 L. T. 642 ; 26 W. R. 212 : 45, 114, 707 Steele. State Line S.S. Co., 3 A. C. 72 ; 37 L. T. 333 . . 17, 18, 21, 79, 83, 102a, 103d Steinmann v. Angler, (1891) 1 Q. B. 619 ; 7 Times R. 398 77, 94, 274 Stella, The, L. R. 1 A. & E. 340 ; 36 L. J. Ad. 13 ; 16 L. T. 335 ; 15 W. R. 936 352 Stephens v. Australasian Ins. Co., L. R. 8 0. P. 18 ; 42 L. J. C P 12 • 27 lu T. 585 ; 21 W. R. 228 ; .'. , . 192 Stephens r. Harris, 57 L. J. Q. B. 203 ; 56 L. J. Q. B. 516 ; 57 L. T. 618 ; 36 W. R. 185 252, 257, 267b, 258 Stephens v. Macleod, 19 Sess. Ca. (4th), 38 620 Stephens v. Wintringham, 3 Com. Ca. 169 250 462 463 Stephenson v. Dawson, 3 Beav. 342 ggj Stettin, The, 31 L. J. Ad. 208'; 6 L. T. 613 ; B. & L. 199 ', 30 Stettin, The, 14 P. D. 142 ; 58 L. J. Adm. 81 ; 61 L. T. 200 ; 38 W. R. 96. .469, 485 Stevens v. O. W. Ry. Co., 52 L. T. 324 ; 49 J. P. 310 103 Stevens v. Navigazione Generali Italiana, 39 Eed. Rep. 562 79 104 Stewart v. Aherdein, 4 M. & S. 211 ; 1 H. & H. 284 189 Stewart v. Crawley, 2 Stark. 323 , i Stewart v. Greenock Mar. Ins. Co., 2 H. L. C. 159 ; 1 Maoq. H. L. C. 382 . '. 600 Stewart v. L. & N. W. Ry. Co., 33 L. J. Ex. 199 ; 10 L. T. 302 ; 12 W R 689 ; 3 H. & C. 135 ; 10 Jur. N. S. 805 ' 103 Stewart v. Eogerson, L. R. 6 C. P. 424 447, 466^ 544 683 Stewart v. West India and Pacific S.S. Co., L. R. 8 Q. B. 88 362 ■ 42 L. J. Q. B. 191; 28L. T. 742; 21 W. R. 953 ,...'... ' "390 TABLE OF CASES CITED. Ixi SECT. Stiudt V. Roberts, 17 L. J. Q. B. 166 ; 12 Jur. 618 ; 5 D. & L. 460 ; 2 B. 0. Rep. 212 639 Stoomvaart Maataohappy, &o. v. P. & 0. Co., 7 A. 0. 795 ; 62 L. J. Ad. 1 ; 47 L. T. 198 ; 31 "W. R. 249 ; 4 Asp. M. C. 567. 27, 704 Storer v. Gordon, 3 M. & S. 308 150, 175 Stomoway, The, 46 L. T. 773 ; 51 L. J. P. 27 ; 4 Asp. M. 0. 629.. 161, 662, 676 Strahan v. Gabriel, cited 12 Ch. T>. 590 623 Straker v. Hartlaud, 34 L. J. Ch. 122 : 11 L. T. 622 ; 2 H. & M. 670 ; 10 Jut. N. S. 1143 27 Straker v. Kidd, 3 Q. B. D. 223 ; 47 L. J. Q. B. 366 ; 26 "W. R. 511 . . 640, 642 Strang v. Soott, 14 A. C. 601 ; 59 L. J. P. 0. 1 ; 61 L. T. 597. .177, 366, 373a, 373b, 373o, 375, 379, 381, 402, 442, 446 Strathdon, The, 89 Fed. Rep. 374 83, 89, 103e Strathdon (2), The, 94 Fed. Rep. 206 103e, 103f, 373a, 373c Strathgany, The, (1895) P. 264 ; 64 L. J. P. 69 ; 72 L. T. 202 334, 348 Strathnaver, The, 1 A. C. 68 ; 34 L. T. 148 340 Strong V. Hart, 6 B. & C. 160 ; 9 D. & R. 189 ; 2 C. & P. 65 686, 602 Strong V. Natally, 1 B. & P. N. R. 16 462 Strugnell v. Friederichsen, 12 C. B. N. S. 452 ; 9 Jur. N. S. 77 260 Stuart V. British & African S. Kav. Co., 32 L. T. 257 ; 2 Asp. 497 . . 103, 292a Stumors v. Breen, 12 Ap. C. 698 ; 56 L. J. Q. B. 401 42, 66, 69a StuTgess V. Gary, 2 Curt. Cir. C. 59 371 Suarez «. Washington, 1 "Woods, C. C. 96 68 SuUy V. Duranty, 33 L. J. Ex. 319 ; 3 H. & C. 270 630 Sumner v. Caswell, 20 Fed. Rep. 249 21, 144 Sunniside, The, 8 P. D. 137 ; 62 L. J. Ad. 76 ; 49 L. T. 401 ; 31 W. R. 859 345 Suse V. Pompe, 30 L. J. C. P. 76 ; 9 W. R. 16 ; 7 Jur. N. S. 166 ; 8 C. B. N. S. 638 191 Sutherland, The, 12 P. D. 164 ; 66 L. J. Adm. 94 ; 67 L. T. 631 ; 36 W. R. 13 30 Sutton o. Ciceri, 16 A. C. 144 ; 63 L. T. 742 105 Svendsen v. Wallace, 10 A. C. 404 ; 13 Q. B. D. 69 ; 11 Q. B. D. 616 ; 54 L. J. Q. B. 497 : 52 L. J. Q. B. 397 ; 62 L. T. 901 ; 48 L. T. 795 ; 34 W. R. 369 ; 30 W. R. 841 ; 5 Asp. M. C. 463 . .302, 366, 395, 399, 403, 404, 407, 408, 410, 412, 413, 440 Swainston v. Garrick, 2 L. J. N. S. Ex. 255 63, 274 Swan, The, 1 W. Rob. 70 335 Sweet V. Pym, 1 East, 4 626, 678 Sweeting v. Darthez, 23 L. J. C. P. 131 ; 14 C. B. 638 ; 18 Jur. 958 ; 2 C. & R. 1375 634 Sweeting v. Pearee, 30 L. J. C. P. 109 ; 29 L. J. C. P. 265 ; 6 L. T. 79 ; 9 W. R. 343 ; 7 C. B. N. S. 449 ; 9 C. B. N. S. 934 , 184, 189 i V. Hay, 4 T. R. 260 461 Syers v. Jones, 2 Ex. Ill 183 T. Taloa, The, 5 P. D. 169 ; 29 W. R. 123 38 Talley v. G. W. Ry. Co.. L. R. 6 C. P. 44 ; 40 L. J. C. P. 9 ; 23 L. T. 413 ; 19 W. R. 164 6 Tamvaoo v. Simpson, L. R.l C. P. 363 ; 34 L. J. C. P. 268; 35 L. J. C. P. 196; 14L. T. 893; 14 W. R. 376; 1 H. & R. 374 564, 606, 663, 665 Tamvaoo v. Timothy, IC. &E.1 6 Tanner v. Phimps, 42 L. J. Ch. 126 ; 27 L. T. 717 ; 21 W. R. 68 .... 593, 698 Tapley ». Martens, 8 T. R. 451 685 C. — C. e Ixii TABLE OF CASES CITED. SHOT. Tapsoott V. Balfour, L. E. 8 0. P. 46 ; 42 L. J. C. P. 16 ; 27 L. T. 710 ; 21 W. R. 245 , 623, 624, 624b, 626 Tarrabochia v. Hiokie, 26 L. J. Ex. 26 ; 1 H. & N. 183 144, 230 Tasmania, The, 13 P. D. 110 ; 57 L. J. Adm. 49 ; 59 L. T. 263 696, 707 Tate V. Meek, 2 Moore, 278 ; 8 Tauu. 280 684, 655, 661 Tatham v. Hodgson, 6 T. R. 656 89 TattersaU v. National S.S. Co., 12 Q. B. D. 297 ; 53 L. J. Q. B. 332 ; 60 L. T. 299 ; 32 "W. E. 566 ; 5 Asp. M. C. 206 20, 79, 102a Taubman v. Paciao S. Nav. Co., 26 L. T. 704 , 103, 111 Taylor v. Briggs, M. & M. 28 ; 2 C. & P. 525 685 Taylor v. CaldweU, 32 L. J. Q. B. 164 ; 8 L. T. 356 ; 11 W. E. 726 ; 3 B. & S. 826 137, 227, 256 Taylor v. Clay, 16 L. J. Q. B. 44 ; 9 Q. B. 713 : 11 Jnr. 277 620 Taylor f. Curtis, 6 Taun. 608; 2 Marsh. 309; Holt, 192; 4 Camp. 337 383 Taylor v. Dunbar, L. E. 4 C. P. 206 ; 38 L. J. C. P. 178 ; 17 W. E. 382 . . 89 Taylor v. Gt.N. Ey. Co., L. E. 1 C. P. 385 ; 35 L. J. C. P. 210 ; 12 Jur. N. S. 372 227, 285, 615 Taylor v. Liyerpool & Ct. W. S.S. Co., L. E. 9 Q. B. 546 ; 43 L. J. Q. B. 205 ; 30 L. T. 714 ; 22 W. E. 752 77, 78, 94, 100, 105 Taylor v. Perrin (not reported) 160 Taylor v. Stray, 26 L. J. C. P. 185, 287 ; 2 C. B. N. S. 197 ; 3 Jur. N. S. 964 184 Ten thousand and eighty-two Oak Ties, 87 Ted. Eep. 935 614, 683 Teutonia, The, L. E. 3 A. & E. 394 ; L. E. 4 P. C. 171 ; 41 L. J. Ad. 57 ; 26 L. T. 48 ; 20 W. E. 261 ; 24 L. T. 21 ; 20 W. E. 421 ; 8 Moo. P. C. C. N. S. 411 11, 23, 81, 82, 239, 240, 289, 291, 451, 544, 547, 682, 687 Thahnan v. Texas Star Elour MiUs, 4 Com. Ca. 265 284 Thames, The, 61 Fed. Eep. 1014 iga, 86 Thames Ironworks Co. v. Patent Derrick Co., 29 L. J. Ch. 714 ; 8 W. E. 408; 6 Jur. N. S. 1013; 1 J. & H. 93 662 Tharsis Sulphur, &c. Co. v. CuLiford, 22 W. E. 46 676 Tharsis Sulphur and Copper Co. v. Morel, (1891) 2 Q. B. 647 ; 61 L. J. Q- B. 11 460, 623, 624b, 625, 627 Thetis, The, L. E. 2 A. & E. 365 ; 38 L. J. Ad. 42 292 Thiis V. Byers, 1 Q. B. D. 244 ; 45 L. J. Q. B. 511 ; 34 L. T. 526 ; 24 W. E. 611 611, 613, 616, 623 Thin V. Eichards, (1892) 2 Q. B. 141 ; 62 L. J. Q. B. 39 ; 66 L. T. 684 . . 19b, 79, 102a, 144 Thol V. Henderson, 8 Q. B. D. 457 ; 46 L. T. 483 ; 46 J. P. 422 714 Thomas v. Clarke, 2 Starkie, 450 141 261 263 Thomas v. Lewis, 4 Ex. D. 18 ; 48 L. J. Ex. 7 ; 39 L. T. 669 ; 27 W. E. 1" .'...' 36 Thomas v. Ehymney Ey. Co., L. E. 6 Q. B. 266 ; L. E. 5 Q. B 226 • 40 L. J. Q. B. 89 ; 24 L. T. 145 ; 19 W. E. 477 ; 39 L. J. Q. B. 141 ! 22 L. T. 297; 18 W. E. 668 , ' _ Thompson v. Dominy, 14 L. J. Ex. 320 ; 14 M. & "W. 403 Thompson v. Gillespie, 24 L. J. Q. B. 340 ; 5 E. & B. 209 ; 1 Jur. N. S. ^''^ 567, 568 Thompson v. Inglis, 3 Camp. 428 gj5 Thompson v. Small, 14 L. J. C. P. 167 ; 1 C. B. 328 268, 661, 664 Thompson v. Trail, 2 C. & P. 334 ; 6 B. & C. 36 ; 6 D. & E. 31 !....' 269 Thompson v. Whitniore, 3 Taun. 227 gy Thomson v. Brown, 7 Taun. 656 ; 1 Moo. 358 ' ug Thorman v. Burt, 64 L. T. 349 ; 5 Asp. M. C. N. S. 563 . .63a, 68," 69,'70, 251 Thornton v. EairUe, 8 Taun. 354 ; 2 Moo. 397 ' ' 5gj Thorogood v. Bryan, 18 L. J. C. P. 336 ; 8 C. B. 115 '. '. 704 Thorsen v. MoDowall, 19 Sess. Ca. (4th) 743 460,' 612', "esV 683 107 62 TABLE OF CASES CITED. Ixili SECT. Thrift (;. Yonle, 2 0. P. D. 432; 46 L. J. C. P. 402; 36 L. T. 114 98 Thrunsooe, The, (1897) P. 301 ; 66 L. J. P. 301 84, 86 Thiiringia, The, 41 L. J. Ad. 44 ; 26 L. T. 446 718 'Ebiyatira, The, 8 P. D. 155 ; 52 L. J. Ad. 85 ; 49- L. T. 406 ; 32 "W. R. 276 691, 702, 727 Tioonderoga, The, Swab. 215 696, 707 Tigress, The, 32 L. J. Ad. 97 ; 8 L. T. 117 ; 11 W. E. 538 ; B. & L. 38 ; 9 Jur. N. S. 361 483,608, 525, 531, 689, 691 Tillett V. Cwm Avon Works, 2 Times L. E. 675 615, 626, 628 TindaU v. Bell, 11 M. & W. 228 ; 12 L. J. Ex. 161 719 Tindall v. Taylor, 24 L. J. Q. B. 12 ; 3 C. L. E. 199 ; 1 Jur. N. S. 112 ; 4 E. & B. 219 269 Timor, The, 67 Fed. Eep. 356 79, 104 Tobin V. Crawford, 9 M. & "W. 716; 12 L. J. Ex. 490; 6 M. & "W. 235. .602, 605 Toddw. Eeid, 4 B. & A. 210 .189 Toimelier ». Smith, 77 L. T. 277 ; 2 Com. Ca. 121, 258 570, App. B. Touteng v. Huhhard, 3 B. & P. 291 150, 232, 237 Towse V. Henderson, 19 L. J. Ex. 163 ; 4 Ex. 890 20, 262 Trayes v. "Worms, 34 L. J. C. P. 274 ; 12 L. T. 547 ; 13 W. R. 898 ; 11 Jur. N. S. 639, also reported as Erayes v. Worms, 19 0. B. N. S. 159 . .440, 664 TregHa v. Smith's Timber Co., 1 Com. Ca. 360 449, 455, 456, 644 Trelawney, The, 3 C. Rob. 216 (n.) ; 4 Eob. 228 324a Trent Nav. Co. v. Wood, 3 Esp. 127 ; 4 Doug. 287 ; 1 T. R. 28 (n.) 3, 8 Tribe v. Taylor, 1 C. P. D. 505 121 Trimbey v. Vignier, 1 Bing. N. C. 151 ; 4 M. &^ Soott, 695 ; 6 C. & P. 25 202, 697 Trindade v. Levy, 2 E. & F. 441 250, 463 Trinidad, &o. Co. ». Frame, 88 Fed. Rep. 528 373o Trinity House v. Clark, 4 M. & S. 288 114 Trouson v. Dent, 8 Moo. P. C. 419 293, 298, 300 Troubadour, The, L. E. 1 A. & E. 302 ; 16 L. T. 166 699 Trowbridge ». Chaplin, 23 Conn. 595 68 True Blue, The, L. R. 1 P. C. 250 ; 4 Moo. P. C. C. N. S. 96 . . . . 345, 347, 348 Tucker v. Humphrey, 4 Bing. 616 ; 1 M. & P. 378 (n.) 525 Tully V. Howling, 2 Q. B. D. 182 ; 46 L. J. Q. B. 388 ; 36 L. T. 163 ; 25 W. E. 290 -146 TuUy V. Terry, L. E. 8 C. P. 679 ; 42 L. J. C. P. 240 ; 29 L. T. 36 . . 677, 681 Turgot, The, 11 P. D. 21 App. B. Turner v. Barlow, 3 P. & P. 949 671a Turner v. Liverpool Dock Trustees, 20 L. J. Ex. 393 ; 6 Ex. 543 492 Tutela, The, 6 C. Eob. 177 246 Two EUens, The, L. E. 4 P. C. 161 ; 41 L. J. Ad. 33 ; 26 L. T. 1 ; 20 W. E. 692 ; 8 Moo. P. C. C. N. S. 398 698, 699, 701, 706 Two Friends, The, 1 C. Eob. 271 336 Tyne, &c. Co. v. Leech, 69 L. J. Q. B. 353 ; 16 T. L. R. 197 258b Tyne Improvement Commissioners v. General S. Nav. Co., L. R. 2 Q. B. 65 ; 8 B. & S. 66 ; 36 L. J. Q. B. 22 ; 16 L. T. 487 ; 15 W. R. 178 .... 30 TJ. Uhde V. Walters, 3 Camp. 16 169 UmbUo, The, (1891) P. 118; 60L. J. P. 7; 64 L. T. 328 26 Undaunted, The, 29 L. J. Ad. 176 ; Lush. 90 326, 334 Undaunted, The, 11 P. D. 4 112 Underwood v. Robertson, 4 Camp. 138 297, 298 e2 Ixiv TABLE OF CASES CITED. SECT. Union, The, Lush. 128 ; 30 L. J. Ad. 17 211 United States ii. HaU, 6 Cranoh 171 86, 89 United States J). Shea, 152 U. S. 178 lU, 572 Utopia, The, (1893) A. C. 492 ; 62 L. J. P. C. 118 696, 707 V. Valente v. Gibbs, 28 L. J. C. P. 229 ; 6 C. B. N. S. 270 ; 5 Jur. N. S. 1213 . 148 VaHant, The, 1 W. Bob. 64 38 Valieri v. Boylaud, L. K. 1 C. P. 382 ; 35 L. J. C. P. 215 ; 14 L. T. 362 ; 14 W. R. 637 ; 12 Jur. N. S. 666 70 VaUanoe v. Dewar, 1 Camp. 503 182 Vallejo V. Wheeler, Cowp. 143 r Lofit, 631 100, 193 Valpy V. Gibson, 16 L. J. C. P. 241 ; 4 C. B. 837 ; U Jur. 826 522, 623 VamBaggent;. Baines, 23L. J. Ex. 213 ; 9 Ex. 643 ; 2 C. L. R. 643 .... 220 Van Casteel v. Booker, 18 L. J. Ex. 9 ; 2 Ex. 691 492 Van den Toorn v. Leeming, 79 Fed. Rep. 107 384 Vanderspar v. Duncan, 8 T. L. R. 30 263 Vandyck, The, 7 P. D. 42 ; afid. 47 L. T. 695 ; 5 Asp. M. C. 17 332 Vaughau j). Campbell, 2 T. L. R. 33 221 Venables v. Smith, 2 Q. B. D. 279 ; 46 L. J. Q. B. 470 ; 36 L. T. 609 ; 26 "W. R. 584 49, 707 Vernon, The, 1 W. Rob. 316 697 Vertue v. Jewell, 4 Camp. 31 483, 527, 638 Vesta, The, 2 Hagg. 189 350 VibUia, The, 1 W. Rob. 1 314 Viokers v. Hertz, L. R. 2 H. L. So. 113 604 Victor V. British and African S. N"av. Co., W. N. 1888, p. 84 469 Victoria, The, 12 P. D. 105 ; 56 L. J. Adm. 76 ; 56 L. T. 499 ; 35 W. R. 291 706 Village BeUe, The, 30 L. T. 232 ; 2 Asp. M. C. N. S. 228 258 Vaie de I'Orient, The, 2 L. T. N. S. 62 85 Vindobala, The, 60 L. T. 667 ; 13 P. D. 42 ; 14 P. D. 60 ; 58 L. J. Adm. 51 ; 37 W. R. 409 36 Vine, The, 2 Hagg. 1 332 Vlierboom v. Chapman, 13 M. & W. 230 ; 13 L. J. Ex. 384 ; 8 Jur. 811 . . 307, 847, 661 Vogeman v. Bisley, 2 Com. Ca. 81 546 Volant, The, 1 W. Rob. 383 700 Vortigem, The, (1899) P. 140 ; 68 L. J. P. 49 ; 80 L. T. 382 ; 8 Asp. S23 19b, 79, 102a Vrede, The, 30 L. J. Ad. 209 ; Lush. 322 336, 338 W. WaddeU v. Blockey, 4 Q. B. D. 678 : 48 L. J. Q. B. 517 ; 41 L T 458 ■ 27 W. R. 938 .'.....' 718 "Wagstafl V. Anderson, 4 C. P. D. 283 ; 5 C. P. D. 171 ; 49 L. J. C. P 485 ■ 42L.T.720;28W.R.856 .' 115,151,156,159 Wahlberg v. Young, 45 L. J. C. P. 783 ; 24 W. R. 846 26 Waikato, Cargo per, v. New Zealand Sh. Co., (1898) 1 Q. B. 646 • fl899'l 1 Q. B. 56 ; 68 L. J. Q. B. 1 ; 79 L. T. 326 ; 8 Asp. 442 102a "Wait V. Baker, 17 L. J. Ex. 307 ; 2 Ex. 1 492 Wake V. Harrop, 30 L. J. Ex. 273 ; 31 L. J. Ex. 451 : 4 L T 555 • 7 t/t 96 ; 9 W. R. 788 ; 10 W. R. 626 ; 6 H. & N. 768 ; 1 H & C 202 ^ 7Jur.N.S.710; 8 Jur. N. S. 845. !^'. ..,.'. 130 TABLE OF CASES CITED. IxV BEOT. Walker 1'. Jackson, 10 M. &W. 161 ; 12 L. J. Ex. 166 3, 182, 187, 729 Walker v. Old Bradford Bank, 12 Q. B. D. 511 : 63 L. J. Q. B. 280 ; 32 W. E. 645 • 596 Wallace v. Woodgate, E. & M. 193 ; 1 0. & P. 675 678 Waller ». M. a. W. By. Co., i L. R. Ir. 376 ; 1 L. R. Ir. 520 . . 718, 723, 725 Walshe v. ProTan, 22 L. J. Ex. 355 ; 8 Ex. 843 ; 1 C. L. R. 823 43 Walthew v. Mavrojani, L. R. 5 Ex. 116 ; 39 L. J. Ex. 81 ; 22 L. T. 310 . . 395, 399, 407 Walton V. PothergiU, 7 C. & P. 392 , 723 Wamsutta Mills v. Old Colony Steamboat Co., 137 Mass. 471 374a Ward V. Eelton, 1 East, 507 605 Ward V. Weir, 4 Com. Ca. 216 122 Wardell v. MouriUyan, 2 Esp. 693 ; 468, 482 Warden 1!. Greer, 6 Watts, 124 10, 12, 14 Warkworth, The, 9 P. D. 20, 145 ; 53 L. J. Ad. 465 ; 49 L. T. 715 ; 51 L. T. 568; 32 W. R. 479; 33 W. R. 112; 5 Asp. M. C. 194, 326.... 26, 101 Warren v. Peabody, 19 L. J. C. P. 43 ; 14 Jur. 150 ; 8 C. B. 800 263 Warrior, The, 6 L. T. N. S. 133 ; Lush. 476 335 Warsaw, The, (1898) P. 127 ; 67 L. J. P. 50 ; 78 L. T. 327 ; 8 Asp. 399 . . 30 Waterloo, The, 2 Dod. 433 343 Waters v. Merchants, &c. Co., 11 Peters, 213 87 WatHns v. RymiU, 10 Q. B. D. 178 ; 62 L. J. Q. B. 121 ; 48 L. T. 426 ; 31 W. R. 337 ; 47 J. P. 357 Ill Watson, Ex parte. Love, Re, 6 Ch. D. 35 ; 46 L. J. Bk. 97 ; 36 L. T. 75 ; 26 W. R. 489 620, 522, 523 Watson V. Amhergate Rail. Co., 15 Jur. 448 724 Watson v. Bomer, 4 Com. Ca. 335 623, 626 Watson ff. Mid Wales Ry. Co., L. R. 2 C. P. 593 ; 36 L. J. C. P. 285 ; 17 L.T.94; 15W.R.1107 598 Watson V. Shankland, L. R. 2 H. L. So. 304 ; 29 L. T. ^349 , . . . 566 Watson V. Swann, 31 L. J. C. P. 210 ; 11 C. B. N. S. 756 125 Watts V. Grant, 26 Sc. L. R. 660 187, 582 Waugh V. Denham, 16 Ir. C. L. 405 652 Waugh V. Morris, L. E. 8 Q. B. 202 ; 42 L. J. Q. B. 57 ; 28 L. T. 265 ; 21 W. R. 438 241, 459, 543 Warerley, The, L. R. 3 A. & E. 369 ; 40 L. J. Ad. 42 ; 24 L. T. 713 .... 348 Wavertree Sailing Ship Co. v. Love, (1897) A. C. 373 ; 66 ,L. J. P. C. 77 ; 76L. T. 576; 8 Asp. 276 427,442 WaymeU ». Reid, 5 T. R. 599 216 Webb, Re, 8 Taun. 443 ; 2 Moo. 500 472 Webster v. Bond, 1 Cab. & Ell. 338 5 Wegener v. Smith, 24 L. J. C. P. 25 ; 15 C. B. 285 637, 639, 671 Weguelin v. CeUier, L. R. 6 H. L. 286 ; 42 L. J. Ch. 758 ; 22 W. R. 26 . . 675, 698, 606 Weidner v. Hoggett, 1 C. P. D. 533 ; 35 L. T. 368 130 Weir V. Girvin, (1900) 1 Q. B. 45 ; (1899) 1 Q. B. 193 ; 69 L. J. Q. B. 168 259, 562, 721 Weir V. Pirie, 3 Com. Ca. 263, 271 258o Weir V. Union S.S. Co., (1900) 1 Q. B. 28 ; 69 L. J. Q. B. 193 ; 81 L. T. 553 ; 5 Com. Ca. 24 262, App. B. Welch V. Anderson, 7 Asp. 177 718 WeUs ». Owners of Gas Eloat Whitton No. 2, (1897) A. C. 337 (see Gas Float Whitton No. 2). Wencke v. Vaughan, 60 Fed. Rep. 448 621 Wentworth v. Outhwaite, 10 M. & W. 436 ; 12 L. J. Ex. 172 613 Werldsborgaren, The, 4 C. Rob. 17 556 eB Ixvi TABLE OF CASES CITED. SECT. Wesley, The, Lush. 268 30 West V. Houghton, i C. P. D. 197 ; 40 L. T. 364 ; 27 W. R. 678 122 "Westboume, The, 14 P. D. 132; 58 L. J. Adm. 78; 61 L. T. 156; 38 W. E. 56 348 Westbum, The, 74 L. T. 200 339 Western Transp. Co. v. Barber, 56 N. T. 444 609, 677 Western Transp. Co. v. Hoyt, 69 N. T. 230 544, 561 Westminster, The, 1 W. Eob. 299 324, 351 Weston i>. Foster, 2 Curtis, 119 (U.S.) 272 Westport Coal Co. -v. McPhail, (1898) 2 Q. B. 130 ; 67 L. J. Q. B. 674 ; 78 L. T. 490; 8 Asp. 378 101. 102 Westzinthus, Re, 5 B. & Ad. 817 66, 533, 640 White Star, The, L. E. 1 A. & E. 68 339 White V. Baring, 4 Esp. 22 589 White V. Gainer, 2 Bing. 23 ; 9 Moo. 41 ; 1 C. & P. 324 679 White V. Granada S.S. Co., 13 T. L. E. 1 286 White V. Parkin, 12 East, 578 119, 164 White V. S. E. Ey. Co., Times. Mar. 3rd, 1885 107 White V. S.S. Winchester Co., 23 So. L. E. 342 ; 13 Sess. Ca. (4th) 524 . . 221, 229, 247, 611, 612, 616, 622 Whiteoross Wire Co. ^. SaTill, 8 Q. B. D. 653; 51 L. J. Q. B. 426; 46 L. T. 643 ; 30 W. E. 688 ; 4 Asp. M. C. 631. .15, 294, 366, 367, 368, 371, 388, 390 Whitehead v. Anderson, 9 M. & W. 618 ; 11 L. J. Ex. 167 .... 613, 514, 523, 629, 530 WhitUebum, The, 89 Fed. Eep. 526 103e Whitteridge v. Norris, 6 Mass. 125 376 Wiggins J). Johnston, 15 L. J. Ex. 202 ; 14 M. & W. 609 126 Wilhelm, The, 2 Asp. 0. S. 343 ; 14 L. T. 636 284 WUhelm III., The, L. E. 3 A. & E. 487 ; 26 L. T. 386 ; 20 W. E. 216 . . 331, . 350 Wilhelm Schmidt, The, 25 L. T. 34 11, 62, 209 WilMnson v. Martin, 8 C. & P. 1 121 WiUiam, The, 6 C. Eob. Ad. 316 87, 284 WilHam Beckford, The, 3 C. Eob. 355 344 William F. SafEord, The, Lush. 69 317 WilHams v. African S.S. Co., 26 L. J. Ex. 69 ; 1 H. & N. 300 ; 2 Jur. N. S. 693 24,76 Williams v. Colonial Bank, 36 Ch. D. 659 ; 57 L. T. 188 194 Williams v. Dobbie, 19 So. L. E. 336 ; 11 Sess. Ca. (4th) 980 78 Williams v. East India Co., 3 East, 192 ; 278 279 Williams v. Lloyd, W. Jones, Eep. 179 10 12 Williams v. London Ass. Co., 1 M. & S. 318 ; 433 Williams v. Reynolds, 12 L. T. 728 ; 6 B. & S. 495 ; 11 Jur. N. S. 973 714 Williams v. Shee, Z, Camp. 469 286 WmisD. Pahner, 7 C. B. N. S. 340; 29 L. J. C. P. 194; 8 W. R 295' 6 Jur.N.S. 732 692,596 Willoughby v. Horridge,' 12 C. B. 742 ; 22 L. J. C. P. 90 ; 17 Jur. 323 ... . 3 Wills V. Burrell, 21 Sess. Ca. (4th) 527 " " 262 WilEishurst v. Bowker, 7 M. & G. 882 ; 8 Scott, N. E. 571 ; 12 L J C P , *75 •■■• • .■..■..;..; 508 Wilson V. Andertbn, 1 B. & Ad. 460 , ;, arq Wilson V. Balcarres Brook S.S. Co., (1893) 1 Q. B. 422: 62 L J OB 245 ; 68 L. T. 312 ' _' _ " _ ' ' gg Wilson V. Bank of Victoria, L. E. 2 Q. B. 203; 36 L. J. Q s'sg-ifi L.T.9;15W.E.693 '. 302,384,392,414 Wilson V. Carmichael, 21 Sess. Ca. (4th) 732 7ig 730 TABLE OF CASES CITED. Ixvii SECT. Wilson V. Dickson, 2 B. & Aid. 2 24, 25, 26 Wilson V. Danville, 6 L. E. Ir. 210 713, Z17 Wilson v. Gabriel, 8 L. T. 602; 4 B. & S. 243; 11 W. E. 803 693, 598 Wilson V. General Iron Screw ColHer Co., 47 L. J. Q. B. 239 ; 37 L. T. 789 . . 714 Wilson V. Hioks, 26 L. J. Ex. 242 719, 720 Wilson V. Kymer, 1 M. & S. 157 604, 677 Wilson V. L. & T. Ey. Co., 30 L. J. C. P. 232 ; 3 L. T. 859 ; 9 W. E. 635 ; 9 C. B. N. S. 632 ; 7 Jur. N. S. 862 724, 726 Wilson V. London, &o. Nav. Co., L. E. 1 C. P. 61 ; 35 L. J. C. P. 9 ; 12 Jur. N. S. 62 ; 13 L. T. 435 ; 14 W. E. 101 ; 1 H. & E. 29 . . . . 466, 475, 477 Wilson V. Newport Docks Co., L. E. 1 Ex. 177 ; 35 L. J. Ex. 97 ; 14 L. T. 230 ; 14 W. E. 658 ; 12 Jur. N. S. 233 ; 4 H. & C. 232 713, 718 Wilson V. Eankin, 34 L. J. Q. B. 62 ; 35 L. J. Q. B. 203 ; L. E. 1 Q. B. 162 ; 13 L. T. 564 ; 14 W. E. 198 ; 11 Jur. N. S. 173 282 WUson V. Wilson, L. E. 14 Eq. 32 ; 41 L. J. Ch. 423 ; 26 L. T. N. S. 346 ; 20 W. E. 436 692, 595, 697 Wilton V. Eoyal Atlantic S. Nav. Co., 10 C. B. N. S. 453; 30 L. J. 0. P. 369; 4L. T. 706; 9 W. E. 748; 8 Jur. N. S. 232 Ill Windle v. Barker, 26 L. J. Q. B. 349 ; 6 E. & B. 675; S. C. ; 2 Jiir. N. S. 1069 141 Winestead, (1895) P. 170 ; 64 L. J. P. 51 ; 72 L. T. 91 ; 7 Asp. 547 30 Winston, The, 8 P. D. 176 ; 9 P. D. 85 ; 62 L. J. Ad. 72 ; 49 L. T. 403 ; 31 W. E. 892 ; 63 L. J. Ad. 69 ; 51 L. T. 183 ; 5 Asp. M. C. 274 30 Winter v. Mair, 3 Taun. 531 121 Wise V. G. W. Ery. Co., 25 L. J. Ex. 258 ; 1 H. & N. 63 110 Wiseman v. Vaudeputt, 2 Vern. 203 606 Witt, Ee, Shubrook, Ex parte, 2 Ch. D. 489 ; 45 L. J. Bk. 118 ; 34 L. T. 786 ; 24 W. E. 891 192 Wobum Abbey, The, 20 L. T. 621 ; 38 L. J. Ad. 28 31 Wood V. Allen 141a Wood V. Bell, 6 E. & B. 355 ; 25 L. J. Q. B. 321 ; 26 L. J. Q. B. 148 ; 2 Jur. N. S. 664 728 Wood V. Keyser, 84 Fed. Eep. 688 ; 87 Fed. Eep. 1007 612a, 613 Woodgeri;. G. W. Ey. Co., L. E. 2 C. P. 318; 36 L. J. C. P. 177; 15 L. T. 579 ; 15 W. E. 383 724 Woodley v. Michell, 11 Q. B. D. 47 ; 62 L. J. Q. B. 325 ; 48 L. T. 599 ; 31W.E.661; 5Asp.M.C.71 86,88 Woodrop Sims, The, 2 Dods. 83 704 Woods V. Jones, 7 D. & E. 126 527 Woolley V. Eeddelien, 12 L. J. C. P. 152 '. 7 Jur. 930 ; 5 M. & G. 316 ; 6 Soott, N. E, 199 224 Wordsworth, The, 88 Fed. Eep. 313 372 Worms V. Story, 25 L. J. Ex. 1; 11 Ex. 427 289, 302 Wright V. CampbeU, 4 Burr. 2046 ; 1 W. Bl. 628 638 Wright V. Marwood, 7 Q. B. D. 62 ; 60 L. J. Q. B. 643 ; 46 L. T. 297 ; 29 W: E. 673 ; 4 Asp. M. C. 451 15, 364, 379, 381 Wright V. New Zealand Shipping Co., 4 Ex. D. 165 ; 40 L. T. 413 . . 462, 615, 617, 618, 619 Wright V. Snell, 5 B. & A. 360 , 654 Wyld ». Pickford, 8 M. & W. 443 4, 67, 103 Wyllie V. Harrison, 13 Sess. Ca. (4th) 92 ; 23 Sc. L. E. 62 614a, 619a Wynne v. Callander, 1 Euss. 293 214 Wynne v. FeUowes, Shower, 334 612 X, Xantho, 12 A. C. 503 ; 11 P. D. 170 ; 66 L. J. Adm. 116 ; 55 L. T. 203 ; 35W.E. 23 78,86,87,88 Ixviii TABLE OF CASES CITED. T. SECT. Tan Yean, The, 8 P. D. W ; 52 L. J. Ad. 67 ; 49 L. T. 186 ; 31 W. E. 950; 5 Asp. M. C. 135 333, 346 Tates V. DufE, 5 C. & P. 369 51 Yates V. Mennell, 2 Moo. 297 ; 8 Taun. 302 655 Yates V. Whyte, 4 Bing. N. 0. 272 ; 6 Scott, 640 730 Yorke v. Greenaugli, 2 Ld. Eaym. 886 653 Young V. Canning Jarrali Timber Co., 4 Com. Ca. 96 579 Young V. Eitohen, 3 Ex. D. 127 ; 47 L. J. Ex. 579 ; 26 W. E,. 403 686 Young V. Mbller (see MoUer v. Young) . Young V. Turing, 2 M. & G. 593 303 Z. Zanzibar, The, (1892) P. 233 ; 61 L. J. P. 81 26 Zephyr, The, 2 Hagg. 43 335 Zephyr, The, 11 L. T. 351 ; 12 W. R. 890 684 Zephyrus, The, 1. W Bob. 329 331 Zeta, The, L. E,. 4 A. & E. 460 ; 44 L. J. Ad. 22 ; 33 L. T. 477 ; 24 "W. E. 180 356 Zeta, The (Mersey D. & H. B. v. Turner), (1893) A. C. 468 ; 63 L. J. P. 17'; 69 L. T. 630 '. 693 Zens, The, 13 P. D. 188; 59 L. T. 344; 37 W. E. 127; 6 Asp. M. C. 312.. 695 Zipsey v. Hill, 1 F. & E. 570 273 Zollverein, The, Swab. 96 ; 2 Jur. N. S. 429 709 Zunz V. S. E. Ey. Co., L. E. 4 Q. B. 539 ; 38 L. J. Q. B. 209 ; 20 L. T. 873 ; S. C. nom. Turner ». S. E. Ey. Co., 17 W. E. 1096 ; 10 B. & S. 594. . 107 Zwilohenbart v. Henderson, 22 L. J. Ex. 234 ; 9 Ex. 722 158, 599 ( Ixix ) TABLE OF STATUTES CITED. SECT. 3 Edw. I. c. 4 - - 355 15 Eich. n. c. 5- - - - 698 2 Geo. n. c. 22, s. 13 - 589 7 Geo. n. c. 15 - - - - 25 8 Geo. II. c. 24 - - - 589 19 Geo. ir. 0. 22, s. 3 (The Harbours Act, 1745) - - 360 26 Geo. ni. c. 86, s. 1 ... 25 s. 2 - - - 24 53 Geo. ni. c. 159, ss. 1, 2 (The Harbour Act, 1814) 25 4 Geo. IV. c. 83 (Factors Act, 1824) - 504 6 Geo. IV. c. 94 (Factors Act, 1826) .- - 504 c. 125, s. 59 - - - - 30 11 Geo. rV. & 1 WiU. rV. c. 68 (Carriers Act, 1830) 29 s. 1 - - - - 76 3 & 4 Vict. 0. 65 (Admiralty Court Jurisdiction Act, 1840) - 699, 700 s. 6 - - - - - - - 698 5 & 6 Vict. 0. 39 (Factors Act, 1842) - - - - 504 10 & 11 Vict. c. 27, ss. 33, 83 (Harbour, &o. Clauses Act, 1847) 464 s. 56 - - - - 360 13 & 14 Vict. c. 21, s. 4 - - - - - 571a 0. 26 (Destruction of Piratical Ships and Vessels Act, 1850) 332 16 & 17 Vict. c. 107 (Customs and Navigation Laws Act, 1853), 88. 170—172 - - 282 17 & 18 Vict. c. 31 (EaUway and Canal Traffic Act, 1854), s. 7 29, 101, 108, 110 c. 104 (Merchant Shipping Act, 1854), 88. 458, 459- - - - - 329, 330 8. 503 - - 24 ss. 504, 505 - - - - - 25, 26 c. 120 (Merchant Shipping Eepeal Act, 1854)- - 25 18 & 19 Vict. c. Ill (Bills of Lading Act, 1855), ss. 1, 2 - - - 56, 62, 65, 66, 107, 152, 532, 602, 603, 605, 606, 638, 639, 663 8. 3 - ... - 70 19 & 20 Vict. c. 97 (Mercantile Law Amendment Act, 1856), s. 5 525 Ixx TABLE OF STATUTES CITED. BBOT. 20 & 21 Viot. c. oxlvii. (Thames Conservancy Act) - - 359 24 Viot. 0. 10 (Admiralty Court Act, 1861) - - - 691 s. 2 685 S.5 701 s. 6 - - 685—691, 696, 699 B.l- - - - 698, 706 s. 9 .... - 329 s. 10 - - 699 s. 35 685, 696 25 & 26 Vict. c. 63 (Merchant Shipping Act Amendment Act, 1862), s. 54 - - - - 26, 709 ss. 67, 58 - - - - - 709 s. 59 - - - - 329 ss. 66—78 475—482, 603 s. 68 - - - - 603 26 & 27 Vict. c. 92 (Eailways Clauses Act, 1863), s. 31 - 29, 108 27 & 28 Vict. c. 25 (Naval Prize of War Act, 1864), ss. 40, 41 - - - - - 332 s. 45 . . - . . 392 31 & 32 Vict. c. 71 (County Courts Admiralty Jurisdiction Act, 1868) - - - 692, 693, 699 s. 3 - - - - - - 692, 706 c. 119 (Eegulation of Eailways Act, 1868), s. 16 - 29, 108 32 & 33 Viot. c. 51 (County Courts Admiralty Jurisdiction Act, 1869), 8. 2 - 122, 692—695, 699, 706 ss. 3, 4 - - 692 34 & 35 Vict. c. 78 (Eegulation of Eailways Act, 1871), s. 12 - 28, 29, 108 c. 105 (Petroleum Act, 1871) - - 280 36 & 37 Viot. c. 66 (Judicature Act, 1873), e. 24 - 589, 591 8. 25 - 586, 597, 704 8. 25 (b) - 697 88. 16, 34 - . 684 s. 38 - 692 39 & 40 Vict. c. 36 (Customs Laws ConsoKdation Act, 1876), ss. 39, 99 - - . . 461 88. 127—133 - - - - 284 40 & 41 Vict. c. 39 (Factors Act, 1877) - - - . 504' 42 & 43 Vict. c. 47 (Petroleum Act, 1879) . . 280 49 & 50 Viot. 0. 38 (Eiot (Damages) Act, 1886) - . 357 51 & 52 Vict. c. 25 (Eailway and Canal TraflSc Act, 1888) 29 107 «-40 '55 52 & 53 Vict. c. 45 (Factors Act, 1889) - - . 504 535 535 c. 63 (Interpretation Act, 1889), s. 38 - . . 28 54 & 65 Viot. c. 39 (Stamp Act, 1891), 88. 2, 14, 15, 49, 50, 61 - - . . 120 8.40 - . - - - 65 TABLE OF STATUTES CITED. Ixxi 56 & 57 Vict. c. 71 (Sale of Goods Act, 1893), SECT. SB. 18, 19 - - - - 488 , 492, 536 s. 25 - - - - 504, 536 ss. 39, 44 - 506 s. 45 523a s. 46 530a s. 47 504, 532, 536, 540, 541 s. 48 - ... 507 8. 62 - 536 57 & 58 Vict. c. 60 (Merchant Shipping Act, 1894), s. 13 - - - 30 s. 24 - - 40 s. 26 - - 591 s. 33 - - 594 s. 56 - - 691 s. 167 698, 699 , s. 422 - - 335 s. 434 - - - - 334 s. 451 - 282 ss. 452, 453, 454, 456 - 283 ss. 492—501 475 s. 502 24, 83 s. 503 - - 26, 709 s. 503a 27 s. 604 - , 24, 27 s. 508 26 ss. 510j 511, 518, 519, 521, 522, 525, 566 366 ss. 515—527 - 357 s. 521 - ... - 358 ss. 530—534 360 s. 544 - 352 ss. 544-546 329, 330 s. 557 332, 335 ss. 603—605, 622, 625 - 30 s. 688 - - 708 s. 742 - - 704 60 & 61 Vict. c. 61 (Exemption from Pilotage Act, 1897) - 30 61 & 62 Vict. c. 14 (Merchant Shipping Act, 1898) - 24 CAEEIAGE BY SEA. Part I. THE CONTRACT. CHAPTER I. RESPONSIBILITY OP CAEEIEES BY SEA AT COHMON LAW, AND BY STATUTE. SECT. Introductory 1 The liability of public carriers at common la'w 2 Application to carriers by water . . 3 Common carriers ' 4 Application to a ship employed by one freighter 5 Passengers' luggage 6 Meaning of "act of God" 7 Independent of human action , . . , 8 Beyond control 9 Are all causes, not human, covered? 10 " Queen's enemies "■ — Foreign ship 11 Carrier not liable for the results of inherent defects 12 Unless caused by him 13 Nor for the result of defective pack- ing, unless he had notice 14 Shipowner not liable for jettison, &o. 1 5 Exceptions do not excuse where the carrier has been negligent, or has deviated 16 Nor if ship's unseaworthiness on sailing caused the loss 17 Meaning of seaworthiness 18 Deck cargo 19 Fitness for special cargo 19a Voyage in stages 19b The ship must be fit to receive the cargo 20 The ship must be seaworthy on sail- ing — QM«?'e,astospecialapparatus 21 Summary of the common law rules 22 Illegality of contract, or of perform- ance — Acts of foreign govern- ments 23 Exemptions by Statute. Eire, &0.—M. S. Act, 1894, s. 502.. 24 Limitation of totalliability — Former Acts 25 M. S. Act, 1894, s. 603 26 Proceedings for limitation 27 Application to railway company . . 28 Other exemptions of railway com- panies 29 Compulsory pilotage 30 Exemption in respect of pilot's acts — Foreign ports 31 Duties of pilot and master 32 1. As a preliminary to the discussion of contracts made for the carriage of goods by sea, arises the question — What are the obligations which a shipowner impliedly undertakes, apart from any express contract, when he receives goods, to carry them for a reward ? An express contract modifies those obligations ; but in * C. — C. K THE CONTRACT. Sect. 1. The liability of public carriers at common law. order to apprehend its effect we ought first to understand the fundamental relations between the shipper and the shipowner which underlie it, and which are modified by it. The manner in which a shipowner must perform his undertaking to carry goods which have been shipped without express stipulations being made will be shown more conveniently hereafter, in treating of the performance of contracts of carriage. But the degree of responsibility which he impliedly undertakes will form the subject of this chapter. The matter depends partly upon statutes, but, for the most part, the rules are rules of the common law, and must be gathered from the eases decided in the Courts. 2, The common law, with regard to the liability of a public carrier of goods, is strict. Apart from express contract he is, with certain exceptions, absolutely responsible for the safety of the goods while they remain in his hands as carrier. The rule and the reason for it were first definitely given in their modern shape by Lord Holt, in his celebrated judgment in Coggs V. Bernard (a). " As to the fifth sort of bailment, viz., a delivery to carry or otherwise manage, for a reward to be paid to the bailee, those cases are of two sorts : either a delivery to one that exercises a public employment, or a delivery to a private person. First, if it be to a person of the first sort, and he is to have a reward, he is bound to answer for the goods at all events. And this is the case of the common carrier, common hoyman, master of a ship, &c. : which case of a master of a ship was first adjudged, 26 Car. 2, in the case of Morse v. Slue, Eaym. 220 ; 1 Yent. 190, 238. The law charges this person thus entrusted to carry goods against all events but acts of Grod, and of the enemies of the king. For though the force be never so great, as if an irresistible multitude of people should rob him, nevertheless he is chargeable. And this is a politic establishment, contrived by the policy of the law, for the safety of all persons, the necessity of whose affairs oblige them to trust these sorts of persons, that they may be safe in their ways of dealing ; for else these carriers might have an opportunity of undoing all persons that had any dealings with them, by combining with thieves, &o., and yet doing it in such a clandestine manner as would not be possible to be discovered." The same reason was given by Lord Mansfield in Forward v. («) 2 Ld. Eaym. 909 ; 1 Smith's L, C, (8th) 199. at p. 213 : a.d. 1703. RESPONSIBILITY OF CARRIERS BY SEA AT LiW. Pittard (b). " To prevent litigation, collusion, and the necessity of ^^°*- ^- going into circumstances impossible to be unravelled, the law pre- sumes against the carrier, unless he shows it was done by the king's enemies, or by such act as could not happen hy the intervention of man, as storms, lightning, and tempests. If an armed force come to roh the carrier of the goods, he is liable ; and a reason is given in the hooks, which is a had one, viz., that he ought to have a sufficient force to repel it : hut that would he impossible in some cases, as, for instance, in the riots in the year 1780. The true reason is, for fear it may give room for collusion, that the master may contrive to he rohhed on purpose, and share the spoil." And more recently. Best, 0. J., delivering the judgment of the Common Pleas in Riley v. Home (c), said : — " When goods are delivered to a carrier, they are usually no longer under the eye of the owner ; he seldom follows or sends any servant with them to the place of their destination. If they should be lost or injured by the grossest negligence of the carrier or his servants, or stolen by them, or by thieves in collusion with them, the owner would be unable to prove either of these causes of loss ; his witnesses must be the carrier's servants, and they, knowing that they could not be contradicted, would excuse their masters and themselves. To give due security to property, the law has added to that responsibility of a carrier, which immediately rises out of his contract to carry for a reward, namely, that of taking all reasonable care of it, the respon- sibility of an insurer. From his liability as an insurer, the carrier is only to be relieved by two things, both so well known to all the country when they happen, that no person would be so rash as to attempt to prove that they had happened when they had not — namely, the act of God and the king's enemies." If the carrier is not to receive a reward, however, he comes under Lord Holt's sixth form of bailment, and is only liable for losses or damage which may happen through want of careful management jDn his part (d). 3. The rule of liability thus laid down applies not only to AppHcation carriers by land, but also to public carriers by water within the water!^^^'^^ ^ kingdom, such as hoymen, and carriers by canal (e). {b) 1 T. R. 27, at p. 33 : a.d. 1785. (e) Eicli v. Eneeland, Cro. Jao. 330 ; (c) 5 Bing. 217, p. 220 : A.n. 1828. Hob. 17 ; Trent Navigation v. "Wood, 3 (i) Coggs V. Bernard, 1 Smith's L. C. Esp. 127 ; 4 Doug. 287. So as to a •199, p. 214. ferryman, Southoote's Case, 4 Co. Eep. b2 4 THE CONTRACT, ^^°^- ^- Also to sliips wMoh carry for the public generally, whether on coasting voyages or on voyages to foreign ports (/) . That was decided in the year 1671, in Morse v. Slue (g') , referred to by Lord Holt in Coggs v. Bernard. In that case goods had been shipped on board a vessel lying in the Thames to be carried to Cadiz, and had been forcibly taken out of her by robbers before she sailed. It was held that the master was liable for them, though there had been no negligence on his part, and he had the usual number of men to guard the ship. Hale, C. J., gave judgment on the grounds that the master might have protected himself, " which he omitting, and taking in' the goods generally, he shall answer for what happens ;" and that " he that would take ofi the master in this case from the action must assign a difference between it and the case of a hoyman, common carrier, or innholder." The objection was there raised that the matter ought to be determined in accordance with the Admiralty civil law, since the vessel was bound beyond the sea, and that by that law the master would not be liable ; but this was met by the observation that the ship was within the body of the county when the loss took place. Probably no difficulty on this score would be recognized at the present day. " There is no ground on which to imply a different extent of undertaking in the same contract for the carriage which is beyond the realm from that which is within it. On principle, therefore, the same promise should be implied for the whole carriage, whether the whole be within the realm, or part be within and part without" (h). In Barclay v. CucuUa y Grana (i), the facts were similar to those of Morse v. Slue; and Lord Mansfield held the carrier liable, saying, " It is impossible to distinguish this from the case of a common carrier." Common 4. The rule thus laid down with regard to masters of ships was mdependent of any view that they were common carriers ; indeed, 83 b ; story, BaU. b. 496 ; Aug. Oarr. 2 ; Nugent v. Smith, 1 C. P. D. 19, 423 ; B. 82; of. "Walker v. Jackson, 10 M. & Hill v. Scott, (1895) 2 Q. B. 371,'713 ;' W. 161. Where the owner travels with EUiott v. RosseU, 10 Johns. 1 (N. T.) ' the goods, see a. W. RaU. Co. ». Bunch, Gage v. TirreU, 9 AUen, 299 (Mass 1 " ' 13 A. C. 31 ; Bergheim v. G. E. RaU. , , ,^ , K ■!■ Co., 3 C. P. D. 221 ; WiUoughby v. ^^ ^ ^^°*- ^^°' ^^^' ^ ^^T- 69- Horridge, 12 C. B. 742. (h) Per Brett, J., in Nugent v. Smith, (/) Morse v. Slue, 1 Vent. 190, 238 ; 1 C. P. D. 19, p. 24 ; EUiott v. RosseU, 2 Lev. 69 ; Dale v. HaU, 1 WUs. 282 ; 10 Johns. 1 (N. T.). See Benett v. P. & Barclay v. CucnUa y Gana, 3 Doug, 0. Steam Nav. Co., 18 L. J. C. P. 85. 389 ; Laveroni v. Drury, 22 L. J., Ex. (i) 3 Doug. 389 : a.d. 1784. ' RESPONSIBILITY OF CAEEIEES BY SEA AT LAW. O Lord Holt distinguished them from oommon carriers, though he Sect. 4. classed them among persons exercising a puhlio employment. The strict rule applied because their case was not distinguishable from that of common carriers. Whether a shipowner is, in any particular case, to be regarded as a common carrier or not, is, in the light of recent discussion, likely to be a difficult question. A common carrier is one who is engaged in the trade of carrying goods as a regular business, and who holds himself out as ready to carry for any who may wish to employ him. Whether it is necessary that he should ply regularly between fixed places seems 'to be doubtful {k). Also, it is doubtful whether it is sufficient that he should habitually carry for the public, though for one only at a time ; or whether he must on each occasion offer to take for all members of the public indiSerently (l). A common carrier who plies regularly between fixed places, and carries for people indifferently, is bound to take any goods brought to him, by whomsoever, if he has room for them, and they are suitable (m). Also, he must charge only at a reasonable rate for carrying them (n),and must impose no unreasonable conditions (o). And this holds good, although one terminus of the journey upon which he professes to caiTy may be beyond the realm (p). And, perhaps, the same is true where a ship is announced as a general ship, although she may be engaged on an occasional voyage only, and not on one of a series of regular sailings (q). 5. In Morse v. Slue, the ship was apparently employed as a Applioaf oa general ship (r). In Dale v. Hall (s), the same rule of liability employed ty was applied in an action for damage to the goods on the voyage, o^^ freighter. (k) Cf. the judgments of Cookburn, advance, per Parke, B., in Wyld v. C. J., and Brett, J., in Nugent v. Smith, Piokford, 8 M. & W. 443, p. 458 ; and 1 C. P. D. 19, 423 ; Liver Alkali Co. v. he is not bound to charge aU equally, Johnson, L. K., 7 Ex. 267 ; 9 Ex. 338. per Willes, J., in Branley v. S. E. EaU. See Parsons' Shipping, ch. vii. Co., 31 L. J., C. P. 286, p. 290. (l) Cf. Liver Alkali Co. v. Johnson, (o) Garton v. Bristol and Exeter Eail. supra; Scaife v. Farrant, L. R., 10 Ex. Co., 30 L. J., Q. B. 273. 358 ; Brind v. Dale, 2 Mood. & Eob. 80 ; {p) Crouch v. L. & N. W. Eail. Co., Nugent V. Smith, 1 C. P. D. at p. 27. 23 L. J., C. P. 73 ; Benett v. P. & 0. {)») Eiley v. Home, 5 Bing. 217, Co., 18 L. J., C. P. 85. p. 220; Per Parke, B., in Johnson v. (?) Per Brett, J., Nugent v. Smith, 1 Mid. Eail. Co., 18 L. J., Ex. 366, C. P. D. 19, p. 28. p. 369. See, as to railway companies, (r) See per Cockbum, C. J., Nugent Dickson v. Gt. N. Eail. Co., 18 Q. B. D. v. Smith, 1 C. P. D. 423, p. 430. There 176. was no charter-party : see argument («) Hairia v. Packwood, 3 Taunt. 264, reported 3 Keb. 113. p. 272. He can require payment in («) 1 Wils. 281 : a.d. 1750. THE CONTEACT. Sect. 5. brought against " a shipmaster or keelman who carried goods for ' hire from port to port." It does not appear whether he carried for other persons as well as for the plaintiff. But in none of the cases was any distinction drawn between the rule as to general and as to chartered ships. And in Liver Alkali Co. v. Johnson («!), it was held, in the Exchequer Chamber, that the same strict rule applied to the case of a vessel used exclusively for the purposes of one person, who engaged her services for the voyage. The defendant was the owner of a number of flats, and made it his business to send them out under the care of his servants to carry cargoes to or from places in the Mersey. He carried for anyone who chose to employ him, but always for one person only at a time, and an express agreement was made as to each voyage or employment of a flat. " "We think," said Blackburn, J., " that this describes the ordinary employment of a lighterman («), and that both on authority and principle a person who exercises this business and employment does, in the absence of something to limit his liability, i)icur the liability of a common carrier in respect of the goods he carries." This judgment was advisedly worded in this manner, because the learned judge, and those whose opinions he expressed, considered it unnecessary to decide whether the defen- dant was " a carrier, so as to be liable to an action for not taking goods tendered to him." Brett, J., however, while agreeing in the decision, expressly did so notwithstanding that he considered the defendant not to be a common carrier, and he laid down the following general pro- position : — " I think that by a recognised custom of England, a custom adopted and recognized by the Courts in precisely the same manner as the custom of England with regard to common carriers has been adopted and recognized by them, every shipowner loho carries goods for hire in his ship, whether by inland navigation, or coastways, or abroad, undertakes to carry them at his own {t) L. R., 7 Ex. 267 ; 9 Ex. 338. See risk or Hability to the owner of tte craft Lyon V. Mells, 5 East, 428. Of. Scaife in respect of the carriage of the goods." v. Earrant, L. E., 10 Ex. 358. In Tamvaco v. Timothy, 1 0. & E. 1, (««) On the Thames lighters are hired Cave, J., left it to the jury to say •with, or without, "risk of craft," at whether the defendants, who were em- different rates. In "Webster v. Bond, 1 ployed to unload and warehouse a cargo, C. & E. 338, "Mathew, J., held that the had undertaken the liability of common latter mode of hiring meant "without carriers. K-tiiSJ:-UJNiSlJilljlT]£ Ui' (JAKKIEKS BY SEA AT LAW. absolute risk, the act of God or of the Queen's enemies alone Sect. 3. excepted, unless by agreement between himself and a particular freighter, on a particular voyage, or on particular voyages, he limits his Kability by further exceptions." The same judge reiterated this view when delivering the judg- ment of himself and Denman, J., in Nugent ». Smith. And he there traced the rule to the Eoman law, which he ascribed as the origin of our law of bailment. This theory and the general doctrine based upon it were, however, strongly dissented from by Cockburn, C. J., in the Court of Appeal ; who pointed out that the Eoman law made no distinction between what we term the " act of Grod " and inevitable accident arising from other causes, but exempted the carrier whenever the loss resulted from unforeseen and unavoidable accident ; and that " as matter of legal history we know that the more rigorous law of later times, first introduced during the reign of Elizabeth, was, in the first instance, estabhshed with reference to carriers by land, to whom by the Eoman law no such liability attached " (»). The point did not, however, require to be decided in that case, as it was on all hands agreed that the shipowner there was a common carrier ; and no opinions upon it were given by the other members of the Court of Appeal. The reasoning of the Chief Justice does not seem to destroy the effect of the decision in Liver Alkali Co. v. Johnson. As a matter of priuciple, it is difficult to find a valid distinction between cases in which a ship is used to convey the goods of one person, and of several persons. Where the ship herself is let to a charterer, so that he takes over the charge and control of her, the case is different ; the shipowner is not then a carrier. But where her services only are let, the same grounds for imposing a strict («) Nugent V. Smith, 1 0. P. D. 19, eludes ttat the modem rule is a " frag- 423. See the history of the law on this mentary survival" of that early law, suhjeot discussed in Holmes' Common " and that the modifications which the Law, Leot. V. ; where the author traces old law has undergone were due in part the origin of the modem Uability of to a confusion of ideas which came in carriers back through Southcote's Case -with the displacement of detinue hy the {i Co. Eep. 83 b ; Cro. EUz. 815), and action on the case, in part to oonoep- cases in the Tear Books, to the strict rule tions of public policy which were read of responsibilty for losses by robbery into the precedents by Lord Holt, and imposed on bailees in early English in part to still later conceptions of policy law ; a responsibility which was inde- which have been read into the reason- pendent of rewards, and of any idea of ings of Lord Holt by later judges." public employment. The author con- THE CONTKACT, Sect. 5. responsibility on the shipowner exist, whether he is employed by one or by many. The master and crew are in each case his servants : the freighter in each case is usually without any repre- sentative on board the ship ; the same opportunities for fraud or coUusion occur ; and the same diflSeulty in discovering the truth as to what has taken place arises. Whether the rule of law is wise, or not, it appears to apply as properly to the one class of cases as to the other (y). 6. Groods carried as the personal luggage of a passenger are, it seems, in the same category as goods carried independently of any passenger. The carrier undertakes the full liability of a common carrier (s). It was formerly held in the Court of Appeal that the same rule does not apply where the goods have been under the passenger's own control, as where they have been taken with him in a railway carriage ; and that the carrier is then only liable for loss or injury caused by his negligence {a). But this view was dis- sented from in the House of Lords in G. W. Rail. Co. v. Bunch (6), and the rule now seems to be that the passenger's interference with the exclusive control of the goods only modifies the liability of the carrier to the extent that he is relieved from responsi- bility for losses which happen owing to the passenger's own want of care. Where goods are taken with a passenger as his personal luggage, the carrier is not generally liable for them as a common carrier unless they are of that character (c). ^aot^God." ''• ^^® ^'^^^ °^ *^^ exceptions to the strict rule of the common law is, that the shipowner is not responsible for losses or damage (y) As to the rule abroad, see per G. W. Rail. Co., L. R., 6 Q. B. 612; Cookbum, C. J., 1 C. P, D. pp. 427-9. Brooke v. Pickwick, 4 Bing. 218 ; Ang! In the U. S., see Lamb v. Parkman, 1 Carr. s. 108 et seq. Cf. Cutler v. N. L. Sprague, 343, where Sprague, J., said RaU. Co., 19 Q. B. D. 64. of owners of a ship under charter-party, («) Bergheim ■;;. G. E. Rail. Co., 3 "In no sense were they common car- C. P. D. 221; TaUey v. G. W. Rail, riers, but baUees to transport for hire, Co., L. R., 6 C. P. 44. Cf. Le Couteur and as such bound to the use of ordinary v. L. & S. W. Rail. Co. L. R. 1 skiUandcare" (p. 353). Also Gage «. Q. B. 54. ' ' ' TiireU, 9 Allen, 299, p. 309 ; Story, (*) 13 A. C. 31, approving Richards BaU. ss. 501, 604. But cf. per Kent, -o. L. B. & S. 0. RaU. Co., 7 C B 839 C. J., in Elliott V. RosseU, 10 Johns. 1 {c) Shepherd v. G. N RaU Co 21 (N. Y.), cited 1 C. P. D. p. 33. L. J., Ex. 286 ; Phelps v. L. & N ' W Jz) G. W. Rail. Co. V. Bunch, 17 RaU. Co., 34 L. J., C. P. 259; Maorow Q. B. D. 215 ; 13 A. 0. 31 ; Maorow v. v. G. W. RaU. Co., L. R., 6 Q B 612 RESPONSIBILITY OF CAKEIEKS BY SEA AT LAW. S resulting from " acts of Grod." The meaning of " act of Grod " Sect. 7. in this relation has given rise to much discussion and difference of opinion. The result of this seems to be, that to enable us to describe a casualty as arising from an act of God it must have two essential features. First, it must have occurred independently of human action ; man must have been purely passive. Secondly, it must have been an event which the shipowner could not have avoided, or guarded against, by any means which he could reason- ably be expected to use. James, L. J., in Nugent v. Smith (d), gave the following defini- tion : " The ' act of Grod ' is a mere short way of expressing this proposition : — A common carrier is not liable for any accident as to which he can show that it is due to natural causes, directly and exclusively, without human intervention, and that it could not have been prevented by any amount of foresight and pains and care reasonably to be expected from him." 8. The condition that human action must not have contributed to independent produce the result is illustrated by Forward i\ Pittard (e). A fire action"^ had spread from a distance to the place in which the goods had been deposited by the carrier, and had destroyed them. Lord Mansfield said, " Now, what is the act of God ? I consider it to mean something in opposition to the act of man ; for everything is the act of God that happens by his permission, everything by his knowledge In this case it does not appear but that the fire arose from the act of some man or other. It certainly did arise from some act of man, for it is expressly stated not to have happened by lightning." So an accident caused by some act done iu navigating the vessel does not come withia the exception, though natural causes which made the navigation perilous in an unusual manner may have co-operated, and though all possible care was taken. For example, where a vessel is steered on to a shoal owiag to a fog (/) ; or in consequence of changes in the channel {g) ; or owing to a danger- ous obstruction being exposed by an unusually low tide (A). So where the vessel containing the goods was being towed, and {d) 1 C. P. D. at p. 444. (5tli), 252; (11th), iv. 6, 1; Trent (e) 1 T. B. 27. Navigation v. Wood, 3 Esp. 127. (/) Liver Alkali Co. ». Johnson, (A) New Brunswick Steamboat Co. v. L. E., 7 Ex. 267 ; L. R., 9 Ex. 338. Tiers, 4 Zabriskie, 697, cited in Ang. (ff) Smith V. Shepherd, cited Abbott Carr, s. Ifi7. 10 THE CONTKACT. Sect. 8. was driven by the force of the sea on to the tug in consequence of her stopping (properly) to make way for another vessel ; the proxi^- mate cause heing the stopping of the tug, the damage was not due to an act of God («'). And in an American case (/), a stranding, which happened through a mistake made in taking a light upon another stranded vessel to be a known beacon light, was held not to be caused by an act of Grod; and evidence to show that the navi- gation had been vigilant was held to be inadmissible. Beyond 9_ ^y^ ££ ^\^q causes of the casualty are independent of man, it is not necessary that they should be extraordinary, or such as could not have been anticipated. Storms of wind, violence of the sea, and lightning, are common, but their results may be within the exception (k). A sudden gust of wind may suffice (l) ; so, also, may a frost (m). Nor is violence necessary. A sudden failure of the wind under critical circumstances may be enough ; as where a ship is tackiug near rocks (;*), or is under the influence of a current setting her on to the shore. What is needful is, that the causes of the event shall have been so far beyond what could reasonably be foreseen (o), or, if they might have been foreseen, shall have been so far irresistible, that no foresight or endeavour of man, reasonably to be expected, would have prevented their operation. It is not enough for the shipowner to show that the loss arose from natural, as distinguished from human, causes, and to leave it (i) OaHey v. Portsmouth and Ryde of negligence imputable to the master, United Steam Packet Co., 25 L. J., Ex. in sailing so near the shore under a 99. Cf. Dixon v. Metropolitan Board 'light variable -wind,' that a failure in of Works, 7 Q. B. D. 418. coming about would cast him aground. iJ) M'Arthur v. Sears, 21 Wend. 190, He ought to have exercised more cau- stated in Ang. Carr. s. 197. tion, and guarded against such a pro- {k) Nugent V. Smith, 1 C. P. D. 423. bahle event, in that case, as the want of [t) Amies v. Stevens, 1 Str. 127. wind to bring his vessel about. A ()») Aug. Carr. s. 160; Story, Bail. common carrier is only to be excused ^- ^^^- from a loss happening in spite of all (n) Colt V. M'Mechen, 6 Johns. 160, human effort and sagacity." The ma- cited Ang. Carr. ». 155 ; Story, Bail. jority of the Court, however, thought s. 523. Kent, C. J., in that case, said, that the verdict of the jury negativing " I concur in the general doctrine that negligence should not be disturbed and the sudden failure of the wind was an that the shipowner was exempted ' act of God. It was an event which (o) Cf. Nichols v. Marslaud 2 Ex could not happen by the intervention of D. 1 ; Nitro- Phosphate, &c Co v man, nor be prevented by human pru- London & St. Katherine's Dock Co. 9 • dence. But I think here was a degree Ch, D. 603. ' EESPONSIBILITY OF CAREIEES BY SEA AT LAW. 11 to the other side to show that there was some want of precaution Sect. 9. or care on his part ; he must himself show affirmatively that the causes were such that no reasonable amount of precaution and care would have enabled him to avoid or guard against them (^j). 10. Whether all causes other than those attributable to human Aje all causes, intervention are to be regarded as natural causes, within the rule, covered ? ' seems to be somewhat uncertain. In Dale v. Hall (q), damage occurred to goods by water, which got in through a leak made by rats in the vessel. Evidence was given to show that all proper efforts were made by the carrier to prevent the goods from being damaged by the water, and the jury found in his favour ; but the Court held that he was liable except for acts of God and king's enemies, and that the evidence of carefulness was inadmissible ; a new trial was granted. That case, therefore, appears to show that the action of rats is not one of those natural causes which may be acts of God. But there is some doubt as to the effect of the decision. In Jones on • Bailments (r), it was said that " the true reason of this decision is not mentioned by the reporter ; it was, in fact, at least ordinary negli- gence to let a rat do such mischief." And in Abbott on Ship- ping (s), the case was treated by the author as an instance of the principle that " the master and owners are held responsible for every injury that might have been prevented by human foresight or care." In Williams v. Lloyd {t), it was held that a bailee of a horse was excused from re-delivering it, when it had become sick and died without any neglect on his part, on the ground that this happened by the act of God. Oases of this kind are now gene- rally excepted, as we shall shortly see, on the ground that the loss is by a defect in the thing itself. But .such a case may fall within the definition of "act of God," if the defect or disease which has caused the loss has been in no way caused by acts of man (m). In Nugent v. Smith (»), a mare, shipped upon a voyage from London to Aberdeen, received injuries in a storm and died. This (p) See The Majestic, 166 U. S. 375. (*) W. Jones, Eep. 179. ■„r.i „„, .Bc/, («) In Warden v. Grreer, 6 Watts, o) 1 Wils. 281 : A.D. 1750. .„, , j: , . . , , y" 424, a loss ot molasses irom barrels by ■ ()•) Page 105 : publisKbd a.d. 1781. fermentation and expansion was said to (s) 5th, p. 244; (11th), iv. 5, 4. be a loss by an" act of &od." Cf. LaYeroni v. Drury, 22 L. J., Ex. 2.' • (i>) 1 0. P.' D. 19 ; 423. 12 THE CONTRACT. Sect. 10. was due partly to the unusTially bad weather, and partly to the struggles of the mare in her fright. The jury negatived any negligence ; but on being asked whether there were any known means, though not ordinarily used by people of ordinary care and skill, by which the injury might have been prevented, they were unable to answer. It was held by the Court of Appeal, reversing the judgment of the Common Pleas Division, that the carriers were not liable. Mellish, L. J. (x), said, " It being a clear rule of law, that if the loss of the goods carried is occasioned by an irresistible act of nature, the carrier is protected ; and another clear rule of law, that if the loss of the goods is solely occasioned by a defect in the thing itself, the carrier is also protected ; it seems to me to follow that, if the loss is occasioned partly by an act of nature, although one not by itself irresistible, and partly by a defect in the thing itself, although that defect is not the sole cause of the loss, and the carrier has no means of preventing the combined effect of the two causes, he ought to be held protected. The principle seems to me to be that a carrier does not insure against acts of nature, and does not insure against defects in the thing carried itself ; but in order to make out a defence, the carrier must be able to prove that either cause taken separately, or both taken together, formed the sole and direct and irresistible cause of the loss. I think, however, that in order to prove that the cause of the loss was irresistible, it is not necessary to prove that it was absolutely impossible for the carrier to prevent it, but that it is sufBcient to prove that by no reasonable precaution under the circumstances could it have been prevented." Queen's H- The next exception, that of " Queen's enemies," relates to acts done by states or peoples with which the Sovereign may be at war, at any time during the carriage of the goods. It does not include robbers on land ; but has been said to include pirates, or robbers on the high seas, as being enemies of all nations (y). The shipowner is bound to be careful to avoid the acts of such enemies; but where he has been so, he is not liable for losses {x) At p. 441. The exception "king's enemies," ap- {y) Ang. Carr. o. 200; Story, Bail. P®'"'^ *° ^*^'« '^^^^ ™a,^e, oiiginaUy, s. 526. But see per Byles, J., in Eus- ^'^''^"^e the bailee who had lost the 11 -NT- c. T T ^ T. ,„ , ^°°^^ °y- *^^""' ^<=*8 "«^as -without a sell.. Niemann, 34 L. J., 0. P. 10, at remedy against them. Southoote's p. 14. Cf. Morse v. Slue, 1 Vent. 238. Case, 4 Co. Rep. 881). enemies. RESPONSIBILITY OP CAERIERS BY SEA AT LAW. 13 oooasioned by them. For example, for the destruction or capture Sect. 11. of the goods by enemies' cruisers ; or for a delay where the master has properly put into a neutral port for safety. The master is justified in putting in, and delaying, where he has a reasonable apprehension of danger from capture (z). The effect of this exception where the ship is a foreign one seems Foreign sMp. to be uncertain (a). It does not appear to have been decided whether the English rule would except the acts of enemies of a foreign state who were not enemies of England. Usually, how- ever, the liability of a foreign shipowner is governed by the law of the country to which he belongs, and not by the English common law : for the law of the contract is generally that of the flag of the ship (b). An express exception of " Queen's enemies " relates, at least, to the enemies of the State to which the carrier belongs (c). 12. A further exception at common law, which was not expressly Carrier not stated in the earlier eases, but is well established, is that a carrier r^g^jta of * is not responsible for a loss or damage which has resulted from an ?f^^f"* inherent quality, or defect, of the thing carried. For example, in the case of animals, he is not responsible for the progress of disease in them, or for injuries arising from their own vice or timidity (d). So in the case of perishable goods, such as fruit, and hides, he does not answer for their decay or deterioration ; nor for the heating or weevHling of grain; nor for fermentation, acidity or effervescence (e) in fluids, when these changes are the results of ordinary processes going on in the things themselves, without the aid of causes intro- duced by the shipowner. In Blower v. Grreat Western Eail. Co. (/), Willes, J., said : " The question as to their liability may turn on the distinction between accidents which happen by reason of some vice inherent in the animals themselves, or disposition producing unruliness or phrenzy, and accidents which are not the result of inherent vice or unruliness (s;) The Teutonia, L. R., 4 P. C. 171; {i^ Nugent v. Smith, 1 C. P. D. 423; The San Roman, L. R., 5 P. 0. 301. Blower v. G. W. Rail. Co., L. R., (a) EusseUiJ.Memami, 34L.J.,C.P. 7 C. P. 655; Kendall v. L. & S. W. 10. See also The Teutonia, L. R., 4 Rail. Co., L. R., 7 Ex. 373 ; Williams P. C. 171; The Heinrioh, L. R., 3 A. & v. Lloyd, W. Jones, 179. E. 424; The Wilhehu Schmidt, 25 L.T. (e) Farrar v. Adams, Buller, N. P. 34. 69 ; Warden v. Greer, 6 Watts, 424, (i) Infra, Chap. VII. stated Ang. Carr. b. 211 ; Nelson v. (c) Russell V. Niemann, 34 L. J., C. P. Stephenson, 5 Duer, 538. 10. (/) L. R., 7 C. P. 655, at p. 662. 14 THE CONTRACT. Sect. 12. of the animals themselves. . . . By the expression ' vice' I do not, of course, mean moral vice in the thing itself or its owner, but only that sort of vice which hy its internal devebpment tends to the destruc- tion or the injury of the animal or thing to he carried, and which is likely to lead to such a result. If such a cause of destruction exists and produces that result in the course of the Journey, the liahility of the carrier is necessarily excluded from the contract between the parties." Similarly, the carrier is not liable for the ordinary wasting on the journey of goods which are, apart from any exceptional causes, liable to waste ; such as the ordinary evaporation or leakage of fluids contained in casks. And d fortiori the carrier is not liable when the damage is due to the goods having been shipped in an unfit condition, as where grain is shipped green and heats in consequence {g). pnless caused 13. Where, however, a loss which may be traced to an inherent by mm, . . quality or defect of the goods has arisen, not from the ordinary development of that quality or defect, but from adventitious causes introduced by the carrier, the same rule does not apply. So that if the ordinary consequences have been aggravated by the manner in which the goods have been stowed in the ship, the shipowner is responsible, though it may not appear that there was any negligence in so stowing them {h). Also the carrier cannot rely on the excuse that the loss has been due to an inherent weakness of the goods, unless he has used such care with them as their nature " demanded. But if he has been misled by the shipper, as by a delivery, without any notice of their nature, of goods which are breakable, and so packed that that could not by reasonable care be ascertained («), or which are liable ig) The Ida, 32 L. T., N. S. 541 ; pay the freight ; as the master and The Barcore, (1896) P. 294. owners are in no fault, nor does their /isam. T., -r -r. r. -r. ^ contract contain any insurance or war- W See The Freedom, L^R, 3 P.O. ranty against such an event." Refer- K 979 /•/...'■ T?Tr«; . ^-^"^ ^^^ *^^^^ ^-^' to " 12 East, 381 ; How. 272, decided m the Umted States , Camp. 119 ; 6 Taun. 65 ; Abbott on S'Zt "t; l" I ' ^^T. % T ^^- *28 (Shee's ed.) ; " but these autho- said that : It has been held if the ^ties do not seem to support the pro- damage has proceeded from an mtrmsic p^^jtions laid down. The decision in prmcipleo decay naturally inherent m ^he case, however, was that damage the commodity itself, whether active in f -u -j-j. j, , , ,. M»uii%c •i ■• 1 ■ ., „ trom humidity of the ship was a danger every situation, or only m the confine- „f +>,„ „„„„ , ^^ » «. uauger „ 1 J 1 , ,, , . , ot the seas, where not caused bv the ment and closeness of the ship, the t n , , „ °^" "■> ^'^ , , ,, ,, , Bnii,, Lue negligence or default of the shipowner merchant must bear the loss as well as ^-^ \^^^ q^^ ^_ 213 '^^"w^ne'^v KESPONSIBILITY OP CARRIERS BY SEA AT LAW. 15 to be injured by contaot with certain otber kinds of goods (k), the Sect. 13. degree of care to be required from the shipowner before he can be allowed to rely upon this defence will be estimated with reference to the extent of his knowledge, and means of knowledge, of the character of the goods (k). In Baldwin v. L. C. & D. Eail. Co. (l), the plaintiff was not allowed to recover the value of some rags which had been im- properly delayed in transit, and had consequently become rotten ; that being due to their having been packed in a damp state, and the railway company having had no notice of their condition. • 14. Again, the carrier is not usually liable for losses which Nor for the result from the defective manner in which the goods are packed ; feotive°paok- or from defects or insufficiency of the packages which contain Y^%< ^°iess he ■' r n jiad notioe them. In such cases, as also where goods are shipped in an unsound or unfit condition, it may be said that the loss has resulted from the inherent defect of the goods themselves (m). Moreover, where goods are improperly packed, there is a neglect on the part of the shipper of his implied duty to be reasonably careful in shipping them. And " no person is entitled to claim compensation from others for damage occasioned by his neglect to do something which it was his duty to do " (m). But the carrier is still bound to use care in carrying the goods ; and where the packages containing them are plainly defective, or become so during the voyage, and he has notice of the defects and might remedy them, he may be liable if he fails to do so (o). 15. One other exception seems to be made by the common law, Shipowner which has not so far been noticed, viz., that where goods have been fettison &c™ intentionally and properly destroyed or damaged during the course of a voyage, in order to save the ship and the remainder of the cargo from a danger which was common to the whole, the ship- owner is not answerable. Where goods have been thus sacrificed, [k) Hutchinson v. Guion, 28 L. J., M. & M. 154 : Edwards v. Sherratt, 15 C. P. 63 ; infra, s. 277. East, 604. (I) 9 Q. B. D. 582. (") ^^^ Richardson v. N. E. Eail. Co., „ ' „ ' ' ^ , , „ L. E., 7 C. P. 75 ; Cox v. L. & N. W. (,«) See Hudson v. Baxendale, 27 j,^^ ^o., 3 F. & P. 77 ; Higginbotham L. J., Ex. 93. ^ g, j^ jjg^jj_ (,g^ 2 P. & P. 796 : («) Per Cleasby, B., Barbour «>. S. Stuart «>. Crawley, 2 Stark. 323; Warden E. Rail. Co., 34 L. T. 67. And see v. Greer, 6 Watts, 424. And of . Notara Richardson v. N. E. Rail. Co., L. R., v. Henderson, L. R., 5 Q. B. 346; L. R., 7 C. P. 75 ; Bradley v. Waterhouse, 7 Q, B. 225. 16 THE CONTRACT. Sect. 15. the law, except in certain cases, e.g., deck cargo, gives the owner a right to contributions towards his loss from those whose property is saved {p). But otherwise no claim for the goods or their value can be made against the shipowner. An illustration of this prin- ciple is, where water has been poured into the hold of the ship in order f o extinguish a fire. But the most familiar case is that of a jettison ; where part of the cargo is thrown out of the ship to lighten her, in a storm, or when she has stranded. Mouse's Case {q) appears to be the earliest statement of the common law with regard to jettisons. The report is as follows: — " In an action of trespass brought by Mouse, for a casket and a hundred and thirteen pounds, taken and carried away, the case was, the ferryman of Grravesend took forty-seven passengers into his barge to pass to London, and Mouse was one of them, and the barge being upon the water, a great tempest happened, and a strong wind, so that the barge and all the passengers were in danger to be drowned, if a hogshead of wine and other ponderous things were not cast out, for the safeguard of the lives of the men : it was resolved, per totam curiam, that in case of necessity, for the saving of the lives of the passengers, it was lawful to the defen- dant, being a passenger, to cast the casket of the plaintiff out of the barge, with the other things in it ; for quod quis oh tutelam cor- porh suifecerit, jure idfecisse videtur, to which the defendant pleads all this special matter ; and the plaintiff replies, de injuria sua pro- pria absque tali causa ; and the first day of this term, this issue was tried, and it was proved directly, that if the things had not been cast out of the barge, the passengers had been drowned ; and that levandi causa they were ejected, some by one passenger, and some by another ; and upon this the plaintiS was nonsuit. It was also resolved, that although the ferryman surcharge the barge, yet for safety of the lives of passengers in such a time and accident of necessity, it is lawful for any passenger to cast the things out of the barge ; and the owners shall have their remedy upon the sur- charge against the ferryman, for the fault was in him upon the surcharge ; but if no surcharge was, but the danger accrued only by the act of God, as by tempest, no default being in the ferryman, everyone ought to bear his loss for the safeguard and life of a man ; for interest reipuhUcce quod homines conserventur, 8 Edw. lY . c. 23 &c. • 12 Hen. VIII. c. 15 ; 28 Hen. Till. ; Dyer, 36. Plucking down (i>) See Chap. XII. {q) 12 Co. Eep. 63, decided Mich. 6 Jac. I. EESPONSIBILITY OF CARRIERS BY SEA AT LAW. 17 of a house, in time of fire, &c., and ihis pro bono publico ; et conser- Sect. 15. vatio mt(B hominis est bonum publicum. So if a tempest arise in the sea, lemndi navis causa, and for salvation of the lives of men, it may be lawful for passengers to east over the merchandizes, &c." And in the Grravesend Barge Case {r), reported by Eolle as having been stated by Coke, it was held that an action would not lie against the bargeman under the same, or similar, circumstances ; the loss having been through the act of God, and for the safety of human lives. In the Gratitudine (s), Lord Stowell said: — "Nothing can be better settled than that the master has a right to exercise this power " (of throwing cargo overboard) " in case of imminent danger. He may select what articles he pleases ; he may deter- mine what quantity ; no proportion is limited ; a fourth, a moiety, three-fourths, nay, in cases of extreme necessity, when the lives of the crew cannot otherwise be saved, it never can be maintained that he might not throw the whole cargo overboard. The only obligation wiU be that the ship should contribute its average proportion." And the same seems to hold good, even in cases where there is no liability on th'e ship to contribute, as where the goods thrown over were stowed on deck {t). This exception at common law was expressly considered by Cave, J., in Dixon v. Royal Exchange Shipping Co. (m), where he decided in favour of the shipowner, on the ground that the act of jettison is done by the master as agent of the cargo owner, not of the shipowner («). It seems doubtful whether any theory of agency is required to support the rule ; and if it is possible to avoid the view that the master is the representative of the cargo owner, it is perhaps better to do so. The master is the agent of the shipowner in the matter, to some extent at any rate; for the latter is responsible if the jettison be made vdthout sufficient cause ; or if it be omitted or made in an improper manner, where there is a good cause {y). And, at least, no such implied agency should excuse the shipowner (r) 1 Boll. Hep. 79. Burton v. Englisli, 12 Q. B. D. 218, at (s) 3 C. Rob. 240, at p. 258. P- 221 ; cf. Lawrence v. Minturn, 17 How. 100 (U. S.). (t) Wright ■.. Marwood, 7 Q. B. D. ^^^ p^^ ^^^^ j^ ^^^^^^ ^ g^^. 62 ; see p. 72. derson, L. R., 7 Q. B. at p. 236 ; per (») Times, Deo. 20, 1884. Brett, J., Whitecross Wire Co. ■<,. SayiU, {x) And see per Brett, M. E., in 8 Q. B. D. 653, at p. 663. C— C. C m THE CONTRACT. Sect. 15. Exceptions do not excuse where the carrier has been negli- gent, or has deviated. Nor if ship's ui\seaworthi- ness on sailing caused the loss. from liability if the jettison became necessary owing to dangers for wMcli he was responsible (z). Moreover, it appears from the cases above cited that the ship- owner may be excused where goods have been jettisoned by other persons than the master {a). 16. A shipowner will not be exonerated from losses arising from any of these excepted causes when there has been any neglect on his part to take all reasonable steps to avoid them ; or to guard against their possible e£Eects {b) ; or to arrest their consequences (c). Ajad where these causes have followed upon a departure from the proper prosecution of the voyage, and would not have operated but for that, the shipowner is not excused ; as where a tempest has been encountered after a deviation from the proper course (d) ; or where the cargo has deteriorated owing to improper delay on the voyage (e) ; or, being improperly carried on deck, has been jettisoned (/). 17. And further, the shipowner is always responsible for loss or damage to the goods, however caused, if the ship was not in a sea- worthy condition when she commenced her voyage, and if the loss would not have arisen but for that unseaworthiness. This is so, although the shipowner may have taken all reasonable pains and precautions to make the ship seaworthy, if, in fact, he has failed to make her so. He undertakes absolutely that she shall be fit, on («) See per Dr. Lushington in Th Norway, 12 L. T. 67; and infra, s. 294. (a) And see Price v. Noble, 4 Taunt. 123 ; and infra, s. 374. Although in early statements of maritime law, made at times when it was usual for the owner of the goods or his supercargo to be on board, it was provided that the master should consult him before making a jettison, still the master's authority to make that did not depend on his consent. " The merchants, if there are any who approve of the jettison, are to signify their assent ; but if they do not agree, the master ought nevertheless not to tarry to throw over as much as shall seem to him good, swearing the third part of his companions on the Holy Gospels, when he shall have come safe to shore, that he did it of no malice, but to save their lives, the ship, the cargo, and the wines." Judgments of Oleron, Art. 8 ; translated in Lowndes, Gen, Av. (4th) p. 6. So also in the. laws of Wisby, Art. 20 ; cited in Park Mar. Ins. (8th), p. 279. (A) Siordet v. HaU, 4 Bing. 607 ; The Freedom, L. E., 3 P. C. 594. (c) See illustrations cited in Ang. Carr. ss. 160 — 164 ; Notara :;. Hender- son, L. E., 5 Q. B. 346 ; 7 Q. B. 225. (d) Leduo v. Ward, 20 Q. B. D. 475 ; Scaramanga v. Stamp, 4 0. P. D. 316 ; 5 C. P. D. 295 ; Davis v. Garrett, 6 Bing. 716 ; The Dunbeth, (1897) P. 133. And see infra, a. 287. («) Glynn v. Margetson, (1893) A. C. 351 ; (1892) 1 Q. B. 337 ; Lindsay v. Soholefield, 24 Sess. Ca. (4th) 530; Hawes v. S. E. Eail. Co., 52 L. T. 514. But see Baldwin v. L. C. & D. Rail. Co., 9 Q. B. D. 682. {/) EoyalExohangeSh. Co. ». Dixon, 12 A. C. 11. EESPONSIBILITY OF CARRIERS BY SEA AT LAW. 19 sailing upon the voyage, to carry tlie cargo which she has on board, Sect. 17. and with it to encounter safely whatever perils a ship of that kind may fairly be expected to be exposed to in the course of that voyage at that season of the year. If her unfitness becomes a real cause of loss or damage to the cargo, the shipowner is responsible, although other causes from whose effects he is excused, either at common law or by express contract, have contributed to produce the loss (g) . Lord Blackburn in Steel v. State Line Steamship Co. (A), said: — "I take it, my Lords, to be quite clear, both in England and Scotland, that where there is a contract to carry goods in a ship, whether that contract is in the shape of a'biU. pf lading or any other form, there is a duty on the part, of the person who furnishes or supplies that ship, or that ship's room, unless som'ething be stipulated which should .prevent it,.that the ship shall be ^t f or its purpose. That is generally expressed by saying that, it shall be seaworthy ; and I think, also, in marine contracts, contracts for sea carriage, that is, what is. properly caUed, a warranty, not merely that they should do their best to make the ship fit, but that the ship should really be fit." It appears, then, that the shipowner undertakes responsibility for any defects in the ship, or her machinery or equipment ; even for defects not discoverable by careful examination (»'). In Eeadhead v. The Midland Eail. Co. {J), it was decided that carriers of passengers, by land, did not undertake this responsi- bility; and it was said, in the Exchequer Chamber, to be extremely doubtful whether carriers of goods did so (k). But in the Court below, Liish and Blackburn, JJ., both considered it estabHshed that carriers of goods, whether by land or by water, warrant the. fitness of their vehicles or vessels for the purpose, and are re- sponsible for the consequences of failures occasioned by latent defects. And in the Grlenfruin (/), Butt, J., acted upon this view, and iff) The Glenfruin, 10 P. D. 103 Steel V. State Line S. S. Co., 3 A. 0. 72 KopitofE V. WUson, 1 Q. B. D. 377 Prince, 170 U. S. 655 (1898); infra, B. 103o. ij) L. R., 2Q.B. 412; L.R.,4Q.B. Lyon V. MeUs, 5 East, 428. 379. Ih) 3 A. C, at p. 86. {k) L. R., 4 Q. B., at p. 383. And (») The rule in the IT. S. is equally see Kopitofl v. Wilson, 1 Q. B. D. 377, stringent ; The Caledonia, 167 U. S. at p. 383. 124 ; and the obligation is not lessened (l) 10 P. D. 103. And see the case by the Harter Act, 1893 ; The Oarib of Backhouse v. Snead, in North Caro- C2 20 THE CONTRACT. Sect. 17. Leld that the shipowners were responsible for a defect m the screw shaft, which coijld not haye been discovered by care and skiU. Meanmgof ig. The ship must be fit in design, structure, condition and seaworthi- ^ •^ p \. / \ csi. nees. equipment to encounter the ordinary perils of the voyage {m) . the must also have a competent master, and a competent and sufficient crew (w). And if she sails from a port where a pilot may be procured, and the nature of the navigation requires one, she is, it would seem, not seaworthy without a pilot (o) ; unless the master himself has a competent knowledge of the navigation. Also, the cargo taken must be a safe cargo for such a voyage as may be reasonably expected ; and it must be stowed so as not to be a source of danger. In Kopitoff v. Wilson {p), one of a number of armour plates stowed in the ship broke loose during bad weather and went through her side, so that she sank. The jury found that she was not reasonably fit to encounter the ordinary perils that might be expected on the voyage, owing to the manner of stowing the plates ; and that the loss was caused by that unfitness. Held, that the shipowner was liable for the value of the plates. But the duty to supply a seaworthy ship is not equivalent to a duty to provide one that is perfect, and such as cannot break down except under extraordinary peril. What is meant is that she must have that degree of fitness which an ordinary careful and prudent owner would require his vessel to have at the commence- ment of her voyage, having regard to all the probable circum- stances of it(g'). To that extent the shipowner, as we have seen, lina, 1 Murpli. 173, where a sHpowner this it was held that the ship had not was held responsible for damage through been unseaworthy at starting; Cun- the loss of a rudder which proved to be ningham v. Colvils, 26 So. L. K. 249. rotten internally, though apparently As to burden of proof, Pickup v. sound. Pars. Sh. i. 285; Ang. Carr. Thames Insurance Co., 3 Q. B. D. ss. 171, 192. 594. (m) Stanton v. Richardson, L. R., 7 („) cUfford v. Hunter, M. & M. 103 ; C. P. 421 ;, 9 C. r. 390. Where the p^,^,^ „. chabert, 3 B. & B. 158. boilers of a steamship failed owing to / , o -r. the muddy state of the river-water with , i°' f " ^^^^ "■ Headlam, 2 B. & which they had been fiUed at starting, ^^- ^^^ ' "'^°° "■ ^^^""^ 5 M. & W. i.v i ij i. -u ^i_. 405, at pp. 414— 5 this was held to be unseaworthiness ; , rr ^ "■ Seville Sulphur, &o. Co. v. Colvils, 25 M ^ Q- B. D. 377. So. L. R. 437. In a subsequent case, (;?) Gibson v. SmaU, 4 H. L. C. 353 ; however, on the same facts, it was Burges ». Wiokham, 33 L. J., Q. B. shown that, on getting out to sea, the 17 ; per Blackburn, J., Readhead v. boilers might easily have been emptied. Midland Rail. Co., L. R. 2 Q. B. 412 and the mud thus got rid of, and upon at p. 440. RESPONSIBILITY OF CAEEIERS BY SEA AT LAW. 21 undertakes absolutely that she is fit ; and ignorance is no excuse. Sect. 18. If the defect existed, the question to he put is, Would a prudent shipowner have required that it should he made good before sending his ship to sea, had he known of it ? If he would, the ship was not seaworthy within the meaning of the undertaking. Further, a ship may be seaworthy when she sails, although she could not safely perform her voyage in the precise state in which she sailed. Hatches may be off in ordinary course, or a port-hole may be open, but in such a position that it can be, and will in ordinary course be closed after sailing. Those are not cases of unseaworthiness {r). In Grilroy v. Price (s), the defect lay in the want of a casing to a pipe. The cause was remitted by the House of Lords to the Court of Session for a further finding as to when the needful casing should have been put over the pipe. It was there found that the ordinary practice was to case such pipes, in vessels carrying jute, before the cargo was loaded, and that the pipe in question was not, after loading, visible or accessible without the removal of part of the cargo. The vessel was therefore held to have been unseaworthy. 19. Perhaps the effect of the warranty is not in all respects the 'Deck cargo. same where the goods shipped are to be stowed on deck. A ship may be seaworthy with goods on deck; but that may depend upon the fact that in case of need those goods can be easily got rid of. This would be a state of seaworthiness so far as concerned the cargo in the hold, but not as to the goods on deck. This question was fully discussed in relation to a policy of insur- ance in Daniels v. Harris {fj. Brett, J. delivering the judgment, said, that the warranty in a policy on ship, or on cargo other than deck cargo, would be satisfied " if the deck cargo, by reason of the facility with which it could be got rid of, would have caused no danger to the ship." But that in a policy on deck cargo it could not be satisfied if it was necessary to contemplate the destruction, in order to save the ship, in an ordinary voyage, of that very cargo which is the subject-matter of insurance. On the other hand, in an action by a shipper against a ship- owner for a loss of deck cargo by jettison, the Supreme Court of (>■) Per Lord Herschell in Gilroy v. Pininey, (1892) 1 Q. B. 58. Price, (1893) A. 0. 56, p. 64; per Lord (») (1893) A. C. S6. Blackburn in Steel v. State Line, 3 {t) L. E., 10 0. P. 1. Of. Hedley v. A. C. 72, p. 90. And see Hedley v. Pinkney, (1892) 1 Q. B. 58. 22 THE CONTRACT. Sect. 19. the United States held, that the shipowner " does not warrant the sufficiency of the ship, if otherwise staunch and seaworthy, to withstand any extraordinary action of the sea when thus laden. If the vessel is in itself staunch and seaworthy, and her inability to resist a storm arises solely from the position of a part of the cargo on the deck, the owner of the cargo who has consented to this mode of shipment cannot recover from the ship or its owners on the ground of negligence or breach of an implied contract respecting seaworthiness " (««). Fitness for i9a_ This warranty is not limited to the mere fitness to en- Bpeoial cargo. counter sea perils. If the ship is to carry goods of a particular kind, the implied warranty requires that the ship and her equipment bei fit for the purpose of safely carrying those goods to their destination (x). Thus, where the contract is for the carriage of frozen meat in a ship fitted with refrigerating machinery, there is an implied warranty that the ship and refrigerating machinery are fit to receive and carry the frozen meat safely on the agreed voyage («/). And where specie is to be carried in one of the class of ships which are provided with strong rooms for that purpose, so that the contract is presumably made in relation to carriage in such a room, there is an implied warranty that the strong room is reasonably fit to resist thieves (s). Voyage in 19b. Where the voyage has several stages, for which the of « n-aa O ' needful condition and equipment of the ship differ, as where the voyage is partly by river and partly across the open sea, it will generally be sufficient if the ship be made fit for the first stage only, on first sailing. But, in that case, the warranty requires that the ship shall be fit for each subsequent stage when that is entered upon (a) . The shipowner may satisfy the warranty by making her fit for the whole voyage at the start, or else by making her fit at the commencement of each stage for that stage. The same is true where the ship is at liberty to take in necessary fuel or stores at an intermediate port. The warranty is not broken {«) Lawrence v. Mintum, 17 Ho-w. (z) Queensland Nat. Bank v. P. & 0. 10" (^- S-)- S. N. Co., (1898) 1 Q. B. 567. (x) See Stanton v. Richardson, L. R., {a) See Dixon v Sadler 8 M & W 7 C. P. 421 ; 9 C. P. 390 ; The Thames, 405, per Parke, B., p. 414'; Eic'card .'. 61 Fed. Rep. 1014. Shepherd, 14 Moo. P. C. 471 ; Quehec (y) Cargo per Maori King ?;. Hughes, M. I. Co. v. Commercial Bank of (1895) 2 Q. B. 550. Canada, L. R., 3 P. C. 234 stages. RESPONSIBILITY OF CAEEIEES BY SEA AT LAW. 23 by starting without sufficient fuel for the whole voyage ; but where Sect. 19b. that is done, she must, at starting, have enough for her first stage to the intermediate port at which it is intended to take further coal ; and she must have enough for her second stage when she sails from that intermediate port (J). Thus it is no answer to a claim for a loss of cargo upon the second stage of a voyage, owing to insufficient fuel, that this was due to neglect of the officers to take in a proper supply, although the bill of lading may contain an exception of negligence of the master and crew. And further, it is no answer that the deficiency of coal might have been remedied by putting into another port in the course of the second stage, and that the master improperly neglected to do so ; for the cause of action is the breach of the underlying warranty of seaworthiness (c). In Biccard v. Shepherd {d) the ship was loaded at two ports, H. and N. She was seaworthy on sailing from H., but became unseaworthy by overloading before she left N. It was held, in an action upon a policy on the cargo, " at and from H. and N.," that the warranty of seaworthiness was satisfied in respect of the cargo loaded at H., but not in respect of that loaded at N. 20. The ship must not only be fit to carry the cargo on the The ship must intended voyage, she must also be in a fit condition to receive it at receive the the time it is put on board. Thus, in Tattersall v. National Steam- <=^'^so- ship Co. (e), a vessel which had carried cattle with foot-and-mouth disease was not properly cleansed and disinfected before a fresh lot of cattle were received on board, and these consequently caught the disease ; the shipowner was held liable on the ground that he had not provided a ship fit for their reception (/). In Gorris v. Scott ((/), an action was brought for the loss of some sheep washed overboard, as alleged in the declaration, because the vessel had not been divided into proper pens, in accordance with an order of the Privy Council under the Contagious Diseases (Animals) Act, 1869. A demurrer to the declaration was allowed on the ground that the statute and order had been made with a different object, and not for the purpose of protecting animals against such a danger. («) Thin V. Richards, (1892) 2 Q. B. (e) 12 Q. B. D. 297. 141 ; The Vortigem, (1899) P. 140 ; (/) A mere suspicion of nnfltness of vnfra, a. 79. the ship for the goods is not enough. (c) The Vortigem, (1899) P. 140. Towse v. Henderson, 19 L. J., Ex. 163. {H) 14 Moo. P. 0. 471. (?) L. R., 9 Ex. 125. 24 THE CONTEACT. Sect. 21. 21. The warranty of seaworthiness for the voyage must he satis- Ship must be fied at the time of sailing with the cargo. It is ,not sufficient that samLg.'^'' ""^ tlie ship was fit for the voyage while the cargo was heing taken in, if she became unfit before she started (A). The warranty, in truth, appears to he a double one ; viz., that the ship shall be fit to receive the cargo when receiving it, and shall be fit to sail at the time of sailing. On the other hand, there is no undertaking that she will con- tinue fit after sailing. If from any cause she afterwards becomes unseaworthy, and this leads to loss, the shipowner is only liable if the cause was one for which he was answerable. In The E.ona («), it was held that the voyage must be considered to commence, for this purpose, when the ship starts from whatever were her moorings. So that if the vessel is damaged in getting out of the harbour, and afterwards proceeds without repairing, the warranty may still have been satisfied. In Quebec Marine Insurance Co. v. Commercial Bank of Canada (k), it was held that a breach of the implied warranty in a policy, of seaworthiness at starting, was not cured by repairs of the ship done subsequently, though before the loss. Wten does It seems doubtful whether this rule, that the warranty of sea- the warranty . i ■ n i of fitness worthiness must be satisfied on sailing, extends to the analogous apparatus warranties of fitness of the ship for special goods, such as those attach? above mentioned in relation to frozen meat, and bullion. The main reason for making the warranty of seaworthiness attach on sailing is that then begins the time " at which the perils are to be encountered which the ship is to be worthy to meet" {I). While she is loading she need not be seaworthy for the voyage. But the special apparatus for keeping meat frozen, or gold safe against thieves, should be fit at the time of taking the meat, or the gold, on board. And that fitness is generally the very fitness which is required for maintaining the temperature, or protecting the bullion, throughout the voyage. Where this is the case it seems unnecessary, and therefore not according to the probable intention, to imply a second warranty of the same apparatus at the moment of sailing. The point did (A) Cohn V. Davidson, 2 Q. B. D. (j) 61 L. T. 28. 455 ; Steel v. State Line Steamship Co., (A) L. R. 3 p. C. 234. 3 A. 0. 72 ; Sumner v. CasweU, 20 Fed. (t) Cohn \. Davidson, 2 Q. B D Rep. 249 (1884). p. 402. RESPONSIBILITY OF CAERIEES BY SEA AT LAW. 25 not arise in the cases cited above (s. 19 (a)), and the language of ^^°^- ^^- the judgments leaves the matter in doubt. 22. Where, then, a shipowner receives goods to be carried for Summary of reward, whether in a general ship with goods of other shippers, or law rules. " in a chartered ship whose services are entirely at the disposal of the one freighter, it is implied at common law in the absence of express contract, That he is to carry and deKver the goods in safety, answering for all loss or damage which may happen to them while they are in his hands as carrier : Unless that has been caused by some act of God, or of the Queen's enemies ; or by some defect or infirmity of the goods themselves, or their packages ; or through a voluntary sacrifice for the general safety : And, that those exceptions are not to excuse him if he has not been reasonably careful to avoid or guard against the cause of loss, or damage ; or has met with it after a departure from the proper course of the voyage ; or, if the loss or damage has been due to some unfitness of the ship to receive the cargo, or to unseaworthiness which existed when she commenced her voyage. 23. A further possible case must, however, be noticed here. Illegality of The shipowner may be prevented from performing the contract performance, by acts of the British government, or legislature, which either physically prevent him from carrying it out, or make it illegal for him to do so. In either case he is excused (;«). If the contract was originally an illegal one, it is void, and neither party can enforce it (n) ; and if, though originally lawful, its performance has been prevented, or become unlawful by a subsequent act of the government, e.g., by a declaration of war, a failure to perform what has thus become impossible or illegal does not entitle the shipper to damages (o), unless the prevention was only a temporary one (p). But this rule does not apply to acts of British officers which (m) Barter v. Hodgson, 3 M. & S. L. E., 4 Q. B. 180 ; Abtott (5tli) 267 ; Atkinson v. Eitchie, 10 East, p. 427 ; mfra, Oh. VIII. S30. ■ {p) Hadley v. Clarke, 8 T. E. 2S9. («) Muller V. Gemon, 3 Taun. 394. See infra, s. 242. Of. The Teutonia, (o) Esposito V. Bowden, 27 L. J., L. E., 3 A. & E. 394 ; L. E., 4 P. 0. Q. B. 17. See Bailey p. De Crespigny, 171. 26 THE CONTRACT. Sect. 23. are improper or uDauthorized. In G-osling i>. Higgins (q), wine shipped at Madeira, to be carried to Jamaica and thence to England, was seized on arrival at Jamaica for a supposed violation of the revenue laws, and was condemned. On appeal to the Privy- Council in England, the sentence of condemnation was reversed. Lord EUenhorough held the shipowner liable for the non-delivery of the wine (r). Acts of iffor does it apply to acts of foreign governments. So that where governments, a ship on the course of her voyage called at a Spanish port, and her cargo was there seized as contraband by Spanish customs officers, and condemned by a Spanish Court, the shipowner was held answerable for the goods (s). But a the ship be a foreign ship, it seems that acts of her government which render performance of the contract illegal, may have the effect of exonerating the shipowner (t) . Exemptions hy Statute. 24. In addition to the exceptions set by the common law to the liability of a carrier, there are statutory provisions which have been enacted for the peculiar protection of shipowners. ^nf ^"h. By the Merchant Shipping Act, 1894, Part. VIII., sect. 502:— lo94, s. 502. " The owner of a British (u) seagoing ship {x), or any share therein, shall not be liable to mate good to any extent whatever any loss or damage happening without his actual fault or privity (jr) in the following cases, namely : — Fire. " (i) "Where any goods, merchandise, or other things whatsoever taken in or put on board his ship are lost or damaged by reason of fire on board the ship (z) ; or (?) 1 Camp. 451. navigation not propelled by oars." (r) Of. Evans v. Hutton, 12 L. J., See Ex parte Ferguson, L. K,., 6 Q. B. C- P. 17. 280 ; The C. S. Butler, L. E., 4 A. & (s) Spenoe v. Chadwiok, 16 L. J., E. 238; The Andalusian, 3 P. D. 182; Q- B- 313. The Mao, 7 P. D. 126 ; The Gas Float (f) The Teutonia, L. R., 4 P. 0. 171 ; "Whitton No. 2, (1897) A. C. 337; (1896) per "Willes, J., in Espoeito v. Bowden, P. 42 ; (1895) P. 301. A launch used 27 L. J., Q. B. 16, p. 25. for carrying passengers upon an arti- («) The corresponding provisions ficial lake is not included in the definition. (8. 503) of the IVD. S. Act, 1854, were The Mayor, &c. of Southport v. Morris, held not to relate to foreign ships. (1893) 1 Q. B. 359. Cope V. Doherty, 27 L. J., Ch. 600 ; (y) The Obey, L. R., 1 A. & E. 102 ; The General Iron Screw Collier Co. v. Wilson v. Dickson, 2 B. & Aid 2 Schurmanns, 29 L. J., Oh. 877. . [z] Under a siinUar enactment (26 (X) By sect. 742, " ' Ship' includes Geo. 3, .. 86, e. 2), it was held that a every description of vessel used in fire on a Ughter used in landing goods RESPONSIBILITY OF CARRIERS BY SEA AT LAW. 27 " (ii) "Where any gold, silver, diamondB, watches, je-wels or precious Sect. 24. stones (a) taien in or put on board his ship, the true nature and ^, — T] value (3) of which have not at the time of shipment been declared by the owner or shipper thereof to the owner or master of the ship in the bills of lading or otherwise in writing, are lost or damaged by reason of any robbery, embezzlement; making away with, or secreting thereof." But, by sect. 508 of the same Act : " Nothing in this part of this Act shall be construed to lessen or take away any liability to which any master or seaman being also owner or part owner of the ship to which he belongs is subject in his capacity of master or seaman ; or to extend to any British ship which is not recognized as a British ship within the meaning of this Act " (c). 25. Again, a limitation has been set by statute to the total Limitation of liability of a shipowner for losses which have occurred, under circumstances for which he must answer, but without his fault or from a sihip was not included. More- wood V. PoUok, 22 L. J., Q. B. 250; Hunter v. M'Gown, 1 Bligh. 573. The Act does not relieve the shipowner from making general average contributions in the case of a fire ; Schmidt v. Royal Mail Co., 45 L. J., Q. B. 646. (a) This covers jewellery, &c. carried in ordinary luggage ; Acton i/. Castle Mail-Packet Co., 1 Com. Ca. 135. (4) Where a bill of lading described the goods as " one box containing about 248 ounces of gold dust," it was held that that was not such a description as to deprive the shipowner of the protec- tion of the Act. WiUiams v. African Steamship Co., 25 L. J., Ex. 69. Alderson, B., said, "Here there is not even an exact statement of the quantity, as I think there ought to have been. It is said to be about 248 ounces ; and so far from the value being stated, there is not even an estimate of it." And Martin, B., said, "Even if all gold dust was of the same value, so that when the quantity was stated the value would be known with tolerable cer- tainty, it would be straining the con- struction of the section to say, that a mere statement of the quantity would be sufficient, and that the value in money need not be stated. But that is not the case. I certainly doubt whether the word ' true ' applies to ' value.' I think that the owner may state as the value what he iond fide believes to be the value ; and that the validity of the declaration of value would not be af- fected by his overrating or underrating it; but that the question would be whether the declaration had been made fairly and in good faith. It may be conventional value, rendering the ship- owner liable to an extent not exceeding the value declared, but still the value in money must be stated." The value may be stated in the currency of the place of shipment. Gibbs v. Potter, 11 L. J., Ex. 376. (c) She must belong to natural-bom British subjects, or to persons who have been naturalised or made denizens, or to a corporation established under and sub- ject to the laws of some part of the Queen's dominions and having its principal place of business in those dominions ; and she must generally be registered. See sects. 1 — 8 of the Act.. A British ship not completed, and in consequence not registered, was formerly excluded; The Andalusian, 3 P. D. 182; but is now protected at and from launch- ing until registration (not beyond three months) by 61 & 62 Vict. o. 14. 28 THE CONTEACT. Sect. S5. privity. This was first done, with regard to losses by embezzle- Former ment and theft by the master and mariners, by a statute passed in 1734 (d) ; the total liability being limited in such eases to the value of the ship, and her appurtenances, and the freight for the voyage. And this was subsequently extended to cases of robbery in which the master and mariners were not concerned (e). By 53 Greo. III. o. 159, s. 1, the same limitation, to the value of the ship and freight, was set to the liability to answer for any loss by any act, neglect, matter, or thing done, omitted, or occa- sioned without the fault or privity of the shipowner to any goods carried in the ship, or to any other ship, or to goods in any other ship. And the same limit was preserved, after the repeal of the above-mentioned statutes (/), by the Merchant Shipping Act, 1854, s. 504. The " freight " included in ascertaining this maximum of liability was that which was " due or to grow due in respect of such ship during the voyage which at the time of happening of any such events as aforesaid is in prosecution or contracted for " (ff) ; and it comprised " the value of the carriage of any goods or merchandise belonging to the owners of the ship, passage money, and also the hire due or to grow due under or by virtue of any contract, except only such hire in the case of a ship hired for time as may not begin to be earned until the expiration of six months after such loss or damage " (h). mf;tto3. ^®- ®^°*'' ^^^ ^""^ ^^^ °^ ^'^^ ^°* °^ 1^^4 ^e^e repealed by the Merchant Shipping Act, 1862, and replaced by sect. 54 of that Act. That Act again was repealed by the M. S. Act, 1894 ; and now, by sect. 503 of this Act, " (1) The owners of a ship (i), British or foreign (/c), shall not where (d) 7 Geo. II. G. 15. have been earned had the Toyage been {e) 26 Geo. III. c. 86, s. 1. completed, having regard to losses on (/) By 17 & 18 Vict. c. 120. the way. In the above cases it was iff) M. S. Act, 1854, s. 604. Under also held that the value of the ship was similar words in 63 Geo. III. .. 169, it to be taken as at the time when the was held that freight paid in advance cause of action arose, not as at the was to be included ; WUson v. Dickson, commencement of the voyage. 2 B. & Aid. 2. In Cannan v. Meabum (A) M. S. Act, 1854, s. 505 • 53 (1 Bing. 465), it was held that not the Geo. III. o. 159, s. 2. ' whole amount of freight expected at' (i) gee note (k), supra, s. 24. the commencement of the voyage was (k) The AmaHa, 32 L. J.,' Ad. 191 to be reckoned, but that which would Of. Cope v. Doherty, 27 L. J.' Ch 600 RESPONSIBILITY OF CARRIERS BY SEA AT LAW. 29 all or any of tlie following occurrences take place without their actual fault or privity (Z), (that is to say) : — " (a) "Where any loss of life, or personal injury, is caused to any person being carried in the ship ; " (i) Where any damage or loss is caused to any goods, merchan- dise, or other things whatsoever, on board the ship (m) ; " (c) "Where any loss of life, or personal injury, is caused to any person carried in any other vessel by reason of the improper navigation of the ship ; " (d) Where any loss or damage is caused to any other vessel, or to any goods, merchandise, or other things whatsoever on board any other vessel by reason of the improper navigation («) of the ship ; be liable to damages beyond the following amounts ; (that is to say) "(i) In respect of loss of life or personal injury either alone or together with loss of or damage to vessels, goods, merchan- dise, or other things, an aggregate amount not exceeding fifteen pounds for each ton of their ship's tonnage (o) ; and " (ii) In respect of loss of or damage to vessels, goods, merchandise, or other things, whether there be in addition loss of life, Sect. 26. (I) Part owners are not deprived of the protection of the Act by fanlt or privity of a, co-owner, even though he he also the master. Wilson v. Dickson, 2 B. & Aid. 2 ; The Obey, L. R., 1 A. & E. 102 ; The Spirit of the Ocean, 12 L. T. 239. (m) This does not apply to loss after transhipment into another ship, in con- sequence of a, collision. The Bemina, 12 P. D. 36. («) Where a collision occurred owing to the faulty steering of one vessel, which was caused by a pin of the steam- steering gear being out, that pin not having been properly put in, it was held that the damage arose from " improper navigation" vrithin the section. The Warkworth, 9 P. D. 20, 145. In the Court of Appeal, Brett, L. J., laid it down that ' ' all damage wrongfully done by a ship to another whilst it is being navigated, where thS wrongful action of the ship by which damage is done is due to the negligence of any person for whom the owner is responsible, is com- prised within the statute." AndBowen, L. J., said: — "Improper navigation means impropernavigationby the owner of the ship. Now, in the eye of the law, the owner does improperly navi- gate his ship if, owing to the negligence of some one for whom he is responsible, his ship does damage to another. It is impossible for us to treat ' improper ' as equivalent to ' unskilful ' — on the con- trary, it means 'wrongful.' A person who uses his ship, which is not ' in a condition ' to be so employed, does in reality improperly navigate her." See also Good V. London Steamship Owners' Association, L. E., 6 C. P. 503 ; and Carmichael v. Liverpool Sailing Ship Owners' Association, 19 Q. B. D. 242 ; Canada Shipping Co. c. British Ship- owners' Mutual Protection Association, 22 Q. B. D. 727 ; 23 Q. B. D. 342. In Wahlberg v. Toung (46 L. J., C. L. 783), it was held that the owners of a tug, so improperly navigated as to run the tow aground, were protected by the Act, although that amounted to a breach of the contract to tow. (o) The claimants in respect of loss of life or personal injury alone take the benefit of Tl. out of the 161., and they may prove for any deficiency against the remaining Sk, pari passu with the claimants in respect of loss or damage to ships, &c. The Victoria, 13 P. D. 125 ; Tiie Crathie, 1897 P. 178. 30 THE CONTRACT. Sect. 26. or personal injury, or not, an aggregate amount not exceed- ing eight pounds for eacli ton of their ship's tonnage. " (2) For the purpose of this section — " (a) The tonnage of a steamship shall be her gross tonnage without deduction on account of engine room {p) ; and the tonnage' of a sailing ship shall be her registered tonnage : " Provided that there shall not be included in such tonnage any space occupied by seamen or apprentices and appropriated to their use which is certified under the regulations scheduled to this Act with regard thereto (y) : " (b) "Where a foreign ship has been or can be measured according to British law, her tonnage, as ascertained by that measure- ment, shall, for the purpose of this section,, be deemed to be her tonnage : " (c) Where a foreign ship has not been, and cannot be, measured according to British law, the Surveyor-General of Ships in the United Kingdom, or the chief measuring officer of any British possession abroad, shall, on receiving from, or by the direction of, the Court hearing the case in which the tonnage of the ship is in question, such evidence concerning the dimensions of the ship as it may be practicable to furnish, give a certificate under his hand, stating what would, in his opinion, have been the tonnage of such ship if she had been duly measured according to British law ; and the tonnage so stated in that certificate shall, for the purposes of this section, be deemed to be the tonnage of such ship (»•). " (3) The owner of every seagoing ship or share therein shaU. be liable in respect of every such loss of life, personal inj ury, loss of or damage to vessels, goods, merchandise, or things as aforesaid arising on distinct occasions to the same extent as if no other loss, injury, or damage had arisen." The owner of a British ship is not entitled to the benefit of these provisions unless liis ship is "a recognized British ship," and registered as such (s). This right to limitation of liability may be waived by contract. {p) See Eurrell v. Simpson, 4 Sess. Palermo, 10 P. D. 21. Navigation Ca. (4th series) 177; The Franoonia, 3 spaces, The Umbilo, (1891), P. 118; P. D. 164. See note (. 132, at p. 134. See {ff) See per Dr. Lushington, The Marsden on CoUisions (4th), pp. 266 Diana, 1 W. Eoh. 131, at p. 136 ; The et seq., for a statement of the law on the City of Cambridge, L. E., 5 P. C. 451 ; subject. CHAPTER II. THE EMPLOYMENT OF THE SHIP. 37 SECT. Modes of employing sliips 33 Wio may determine haw the ship shall he used — Position of part owners 34 Part owner may sue or he sued on contract 35 Authority of managing owner or ship's hushand 36 Eegistered managing owner 37 Right of part owners to restrain the use of ship until security given . . 38 Owners may he restrained from using ship inconsistently with charter party 39 So also a prior mortgagee not ia possession, unless security im- paired 40 When is security impaired? 41 SECT. Position of suhsequent mortgagee. . 41a Authority of master to contract for owners— Substituted master . , . . 42 Consistently with the vessel's usual employment 43 Master may not alter charter party — Where charter party broken at foreign port 44 JPrimd facie master is servant of registered owner 45 ESeot of change of ownership on master's authority 46 Master personally Uahle, and able to sue on contracts made in his own name 47 Liable for his own torts ; . . . 48 Where vessel worked for joint bene- fit of master and owner , , . 49 33. Speaking generally, shipowners offer the services of their Modes of vessels in two ways: — Either the ship is put up for a defined ^^^^"^^ voyage, and takes the goods of any persons willing to ship in her ; or the owner seeks for a merchant who will employ the whole vessel upon some voyage, or during some period of time, for purposes and upon terms to be agreed with him. "When a ship is put up to carry for any persons, indifferently, who may he willing to ship goods in her on the particular voyage, she is said, among lawyers, to be employed as a general ship {a). When the whole, or substantially the whole, of her services are let to one person, or set of persons, the contract used is known as a charter party, and she is said to be chartered by the merchant. Contracts relating to shipments in general ships are embodied in documents called bills of lading, and usually follow a common (a) The expression does not appear to convenient. Putting the ship "on the be used by mercantile men, but it is berth " is a phrase conunonl^ used. 38 THE CONTEACT. Sect. 83. Who may determine how the ship shall be used. type, -with changes of detail. Charter parties are used to carry out a greater variety of purposes ; and we shall have to distinguish between some different types which give rise to certain hroad differences of relation between the contracting parties, and between them again and the outside world. Before discussing these contracts, however, it will be well to consider, shortly, who are the persons that can decide how the ship shall be used ; and who are the persons responsible for the per- formance of her engagements. 34. The ship may belong to one owner or to several ; and if to several, they may hold her in partnership, or may have indepen- dent shares in her. When she belongs to partners, each of them is the agent of the others, and contracts made by one for her employment will be binding on all. But where there are several independent part owners, they hold the ship as tenants in common, not as partners, though her earnings are treated on the footing of a partnership (&). One part owner, then, cannot generally, as such, bind the other owners by engaging to let the use of the ship to a particular person, or to employ her in a particular way. He is not, from the mere fact of co-ownership, their agent to do the ship's business. To make his contracts binding on them, he must have had actual authority to contract on their behalf ; imless by their conduct they have led the other contracting party to believe that he had that authority (c). When a contract for the employment of the ship has been made by one part owner with the authority of his co- owners, they each become personally bound by it ; and each is liable in full for a breach of it ; having a right of contribution from the others. In Alexander v. Dowie {d), it was held that a part owner, in possession of the ship, could settle a claim for damages for detention so as to bind the others. maJs°ror ^^- ^^^^ °^ *^® P^^* owners, then, for whom, and with whose he sued ou authority, a contract for the ship's employment has been made, is liable in full for any breach of it. And he may be sued alone for the breach, subject to a right to apply to the Court, or a judge. Position of part owners. {b) Green v. Briggs, 17 L. J., Ch. 323 ; Maolachlan, 95 ; mfra, a. 590. (c) Brodie t>. Howard, 17 0. B. 109; Frazer v. Cuthbertson, 6 Q. B. D. 93, at p. 98. [d) 25 L. J., Ex. 281. THE EMPLOYMENT OP THE SHIP. 39 to require the plaintiff to join the other owners who are liable on Sect. 35. the contract, as defendants (e) . Formerly, a part owner sued alone upon a contract might have pleaded the non-joinder of the other owners in abatement (/) ; hut that right no longer exists {g). An order must be applied for if it is desired to have them joined; and such an order will generally be made (A). A judgment against one of the part owners, although unsatis- fied, is a bar to any action for the same matter against others of them («). Again, one part owner may now sue alone on the contract. His action will not fail for want of the others, as formerly it would have done (A). But the defendant may apply to the Court to require the other owners to be joined (/). If they are not willing to join as plaintiffs, the proper course seems to be to join them as defen- dants (m). By rule 9 of E. S. 0. 1883, XYI., however, one owner may sue on behalf of himself and the other owners. In De Hart ». Steven- son (m), where this was done, the Court refused to require the other part owners to be added as plaintiffs, the only object being to secure their liability for costs. 36. The business of a ship having several owners is ordinarily Authority of conducted by a managing owner, or a ship's husband, appointed by owner or the owners for the purpose (o). He bears their authority, and acts \,^^^^ ^' as their general agent to do all the ordinary business of the ship. Thus, usually, he is empowered to make any such contracts for carrying goods in the ship, or for letting her, as are consistent with her ordinary employment; and to do what else may be («) E. S. 0. 1883, XVI. 11; cf. (i) Kendall ». Hamilton, 4 A. C. 504. XVI. 9 ; PiUey v. Eobinson, 20 Q. B. D. (A) Boson v. Sandford, 2 Salt. 440 ; 155. per Lord Blackburn, Kendall v. Hamil- (/) PoweU V. Layton, 2 B. & P. ton, 4 A. C. 504, at p. 643. N. E. 365 ; tmless the action could he (l) E. S. C. 1883, XVI. 11. laid in tort ; G-ovett v. Eadnidge, 3 (m) See Luke v. South Kensington East, 62. Hotel Co., 11 Ch. D. 121 ; CuUen v. {g) E. S. C. 1883, XXL 20. Knowles, (1898) 2 Q. B. 380. (A) See per Lord Cairns, Kendall v. («) 1 Q. B. D. 313. Hamilton, 4 A. C. 604, at p. 516; Pilley (o) Contracts among owners fettering V. Eobinson, 20 Q. B. D. 155. Where their discretion in appointing the ship's the CO -contractor is abroad, see Wilson husband, or the master, are jealously V. Balcarres Brook S.S. Co., (1893) 1 scrutinized, and may be illegal. See Q. B. 422 ; or cannot be found, Eobin- Card v. Hope, 2 B. & C. 661 ; The son V. aeisel, (1894) 2 Q. B. 685. England, 12 P. D. 32, 40 THE CONTEACT. Sect. 36. " necessary to enable the ship to prosecute her voyage and earn ' freight" {p). And the contracts so made are generally binding on all the part owners personally {q). But a managing owner's authority, as general agent for the owners, is limited to contracts which are reasonably needful for carrying on the ordinary business of the ship. He cannot, for example, validly engage her for an unusually long period in advance, and thus take the control of her out of the owners' hands. And the extent of his authority may be a question of fact, to be determined upon the 'particular circumstances. He may m truth be acting for some of the part owners only. And those for whom he does act may show that he was not empowered to make the particular contract on their behalf; unless by their course of business, or in some other Tvay, they have held him out as having that power (r). In Thomas v. Lewis (s), it was held that a ship's husband had not power to cancel a charter party which he had made, although it was for the benefit of the owners to do so. But the question there arose in an action, against one of the owners, on a promise to pay a sum of money in consideration of the charter being cancelled. And the decision was, that the ship's husband was not authorized to bind the owner to pay that ; it was not necessary to decide that he could not put an end to the charter. Eegistered 37. By the Merchant Shipping Act, 1894, sect. 59 : — managing " (1) The name and address of the managing owner for the time being of every ship registered at a port in the United Kingdom shall be registered at the custom house of that port. " (2) Where there is not a managing owner, there shall be so regis- tered the name of the ship's husband, or other person to whom the management of the ship is entrusted by or on behalf of the owner ; and any person whose name is so registered shall, for the purposes of this Act, be under the same obligations, and subject to the same liabilities, as if he were the managing owner. " (3) If default is made in complying with this section the owner shall be liable, or if there are more owners than one each owner shall be hable in proportion to his. interest in the ship, to a fine not {p) Barker v. HigMey, 32 L. J., retract the authority, see Tlie Vindobala, C. V. 270 ; Abbott (Uth), i. 3, 4 ; 60 L. T. 657 ; 13 P. D. 42. Story, Agency, s. 35 ; and see Ooult- (r) Frazer v. Cuthbertson, 6 Q. B. D. hurst V. Sweet, L. R., 1 0. P. 649. 93 ; Miles v. Mcllwraith, 8 A; 0. 120. (?) As to the part owner's right to (s) 4 Ex. D. 18, owner. THE EMPLOYMENT OF THE SHIP. 41 exceeding in the whole one hundred pounds each time the ship leaves Sect. 37. any port in the United Kingdom." The efEect of registration as managing owner upon the question of agency was considered in Frazer v. Cuthhertson (t). The action there was for necessaries supplied to a ship of which the defendant was one of the registered part owners ; and of which one "Watson, another owner, appeared as the registered managing owner. The order for the goods had been given by Watson, who was employing the vessel without defendant's knowledge, and' in violation of an agreement between them ; and the defendant was not interested in the adventure. Bo wen, J., said : " The law relating to the position and liabilities of registered owners of ships is tolerably clear. Shipowners, to begin with, are not necessarily partners. An owner's liability or non-liability for necessaries supplied to a ship depends on the question whether the person who gave the order had his authority to give it. The register, no doubt, is evidence of ownership of the vessel, and the registered owner, until the contrary is shown, may be presumed to be the employer of those who have the custody of her, and who are engaged in her navigation. But a part owner, whether registered or not, has no power to bind the other owners without their assent. The question in each case is one of fact, whether he has had such authority committed to him, or if this is not in fact the case, whether he has been allowed to hold himself out as armed with such apparent authority. Such being, beyond all doubt, the general law, what has really to be determined in this ease is the question, whether by inadvertently sufiering the entry of the 31st of December, 1877, to remain unaltered, the defendant Outhbertson held out to third parties consulting the register that J. H. Watson was his agent to manage and navigate the ship on his behalf. I will assume, for the purpose of my judgment, that third persons consulting the register had a right to consider,, as between themselves and aU owners upon the register, including, of course, the defendant, that J. H. Watson was a managing owner within the meaning of the section I have referred to. The term managing owner, however, is not defined in the Act of Parliament; it is a commercial and not a legal expression. It is perfectly true that a managing owner is a name which frequently and commonly {t) 6 Q. B. D. 93 ; and see BaumvoU, &c. v. Fumess, (1893) A. C, 8, 42 THE CONTRACT, Sect. 37. denotes an owner to whom the other owners have delegated the management of a vessel. But I do not think it follows, as of course, that every single other owner must he taken to have joined in the adventure merely heeause there is an owner called a manag- ing owner. Language occurs both in some text books and in some decided cases which seems to be based on the assumption that a managing owner" is an owner employed by and on behalf of all his brother-owners without exception. See Abbott on Shipping, p. 72, 10th ed. ; Barker v. Highley {u) ; Coulthurst v. Sweet («). But there is no magic in the term ' managing owner ' which creates him a plenipotentiary for those owners whose agent he is not in fact. The writers and judges in the passages and cases to which I allude have been discussing the extent of the authority of the person appointed, not the question whether every single owner must be taken to have joined in his appointment. In the two cases I have cited it was assumed, and was no doubt the fact (as is often, if not generally, must be the fact), that all the owners were partners in the employment of the ship, and assented to the appointment of one managing owner. But an advertisement that A. B. is manag- ing owner of a vessel seems to me to mean no more than that as owner he is entrusted by such of the owners as are interested in the ship's employment to manage her affairs. An entry to a like effect upon the register does nothing further. The 36th section of the Act nowhere creates new agents, new functions, new capacities, nor clothes existing agents with enlarged powers. The section is part of the machinery designed to secure adequate protection for lives and property at sea, and provides with that or a similar object that a certain class of agents when they are appointed shall be registered, so that it may be known who in fact is managing the vessel. A managing owner registered under the Act is no more and no less than a managing owner before the Act. He binds those whose agent he is ; he binds nobody besides. Here, J. H. Watson was not in fact the agent of the defendant Cuthbertson ; it is not suggested that he was ; and I do not think that, by leaving unaltered the entry in the registry which described J. H. Watson as managing owner, the defendant Cuthbertson held him out as his managing owner, that is to say, as clothed with authority to bind any owners other than those who had, in fact, entrusted to M 16 C. B. (N. S.) 27 ; 32 L. J., 0. P. 270. {«) L. R., I C. P. 649. THE EMPLOYMENT OF THE SHIP. 43 him the management of the ship. Judgment must therefore he Sect. 37. entered for the defendant, with costs." 38. When the part owners disagree as to the mode of employing Eight of part the ship, those who own the majority of the shares have the right restrain the to control her. But they may be required to secure the minority „otil*eeoimty against a possible loss of their interests in her. If the ship is in g™°- the possession of the minority, the majority may obtain possession by proceedings in the Court of Admiralty ; giving security to the minority if they object to the proposed voyage (y). On the other hand, if the majority have possession, the dissentient owners may, by an action of restraint, arrest the vessel until security has been given them for the value of their shares, should she not return in safety (z). The security required is an undertaking, with sufficient sureties, to pay the value of the plaintiff 's shares in case the ship does not return (a). When part owners have restrained the ship in this manner, and obtained security for their shares, they cease to be interested in the voyage. She sails at the expense and risk of the majority, and for their profit. Contracts therefore entered into by them in regard to the voyage do not bind the dissenting minority (b). A part owner will not be allowed to interfere with the perform- ance of a voyage under a charter party, upon the vessel putting into a port of refuge, if she sailed on the voyage with his knowledge and assent (c). 39. When a ship has been validly chartered, the owners must Owners may not deal with her m a manner mconsistent with the charter, from using Should they threaten to do so, the charterer may obtain an in- B^te^°°^tii junction restraining them from any such acts (d). But the Courts charter party. (y) Williams & Bruce, Ad. (2na) 25 ; (a) Williams & Bruce, Ad. {2nd) 27 ; Eoscoe, Ad. p. 78 ; The Valiant, 1 W. The Eohert Dickinson, 10 P. D. 15. Kob. 64; The Elizabeth and Jane, 1 ^^j -^^^^ ,^_ Sandford, Garth. 58; W. Kob. 278 ; The Kent, Lush. 495. p^^^ ^_ Johnston, 4 Sim. 539 ; Abbott, (.) The England, 12 P. D. 32; The (g^j^j^ p_ ^^ . ^^^^^^^ j 3^ g . ^^^_ Apollo, 1 Hagg. 306 ; The Margaret, ^qq jqj 2 Hagg. 275 ; In re Blanshard, 2 B. & ,\ ™ x \ ^, ^ „., t m ^ r> o.. r, i. TT r,j 1 wi ini M The Lady Clermont, 23 L. T. 283. C. 244; Oustonv.Hebden, 1 Wils. 101 ^t L, t^- . on t rr no rm. „ , ~ , ,. Ti/r B/r A _L Of. The Maxima, 39 L. T. 112. The Haly ». Goodaon, 2 Mer. 77. A mort- „,,-„_>'„ . , . ii f i_ • L Taloa, 5 P. D. 169, was not approved gagee of shares in the ship, who is not . i. , -l t, i^^ -r ■ „,, ? ° . i , . ,. J. of, as reported, by Butt, J., in The m possession, cannot bring an action of ' , ^ , ,„t. T^ V.,, 7 . i mi. II- 1.1 J n txr Tj 1. Vmdobala, 13 P. D. 42. restramt. The Highlander, 2 W. Bob. ' 109 ; The Imiisfallen, L. E., 1 A. & E. {d) Sevin v. Deslandes, 30 L. J., Ch. 72 ; The Keroula, 11 P. D. 92. 457. 44 THE CONTRACT. Sect. 39. "will not enforce speoifio performance of the charter party by decree (e) ; the charterer's remedy for a breach of it is by action for damages, either against the owners who made the contract, or in rem against the ship (/). So, also, an injunction may be obtained against a purchaser or mortgagee of the vessel, subsequent to the charter party, who threatens to interrupt the performance of it {g). So also a prior 49. Further, a mortgagee of the ship, who has allowed the mortgagee .. . . ,., not in posses- mortgagor to remain in possession, cannot invalidate the contracts security ^e has made with regard to her employment ; unless they are such impaired. ^^ materially to impair the security {h). The mortgagee in such a case is not personally bound to perform the contract, whether, after it has been made, he enters into pos- session of the vessel or not («). But if an agreement for the employment of the vessel has been made with third persons by the mortgagor, while in possession, as by chartering her for a voyage, the mortgagee cannot, by afterwards taking possession of the vessel, entitle himself to prevent her from performing the chartered voyage {j). In CoUins v. Lamport (/ ) the' owner, who continued in posses- sion after mortgaging the ship to the defendants, chartered her without their knowledge to the plaintiffs. When part of the cargo had been loaded the defendants took possession of the ship, and refused to allow any further loading or to let her sail. Afterwards they sold her. It was held that the charter party was binding on the mortgagees and on the purchaser ; and an injunction was granted " to restrain the defendants, the mortgagees, and the purchaser, their assignee, from dealing with the ship in any («) De Mattes v. Gibson, 28 L. J., of the mortgage, be deemed the owner Oh. 498. ■ of the ship or share, nor shall the mort- (/) See Chap. XIX. gagor be deemed to have ceased to be ((?) The Messageries Imp. Co. v. owner thereof." This section is protec- Baines, 7 L. T. (N. S.) 763 ; De Mattos tiye of the mortgagee ; it does not deprive V. Gibson, 28 L. J., Ch. 165, 498. him of his ordinary rights of ownership {h) Collins T. Lamport, 34 L. J., Ch. in the property given by the mortgage. 196. Cf. Keith v. Burrows, 2 A. C. See Dickenson v. Kitchen, 8 E. & B. 636. 789. (i) Myers v. WilHs, 25 L. J., C. P. (/) CoUins <;. Lamport, 34 L. J., Ch. 39, 255. By M. S. Act, 1894, s. 34, 196 ; The InuiefaUen, L. E., 1 A. & E. " Except as far as may be necessary for 72; The Fanchon, 6 P. D. 173; The making u. mortgaged ship or share Blanche, 58 L. T. 692. Cf. Johnson v. avaUable as a security for the mortgage Eoyal MaU Steam Packet Co., L. E., 3 debt, the mortgagee shall not, by reason 0. P. 38, THE EMPLOYMENT OP THE SHIP. 45 manner inconsistent with, or which may interfere with or prevent Sect. 40. the execution of the charter party." Lord Westbury, in giving judgment, said (k) : " As long, there- fore, as the dealings of the mortgagor with the ship are consistent with the sufficiency of the mortgagee's security, as long as those dealings do not materially prejudice and detract from, or impair the sufficiency of the security of the vessel, as comprised in the mortgage, so long is there parliamentary authority given to the mortgagor to act in all respects as the owner of the vessel ; and if he has authority to act as owner, he has, of necessity, authority to enter into all those contracts touching the disposition of the ship, which may be necessary for enabling him to get the full value and the full benefit of his property. Whenever a mortgagee is in a position to show that the act of the mortgagor prejudices or injures his security, then, I apprehend, the parliamentary declaration that the mortgagor shall be deemed the owner ceases to have any binding efEect as against the mortgagee, and the mortgagee is in a position to claim and exercise the full benefit and the rights given to him by his mortgage ; but, subject to that qualification, every contract entered into by the mortgagor remaining in possession, is a contract which derives validity from the declaration of his continuing to be the owner ; but, at the same tiine, it is a contract into the benefit of which the mortgagee may at any time enter, by giving notice to the party who is to pay the mortgagor under the contract, that he requires the payment to be made to him, the mortgagee." 41. There does not appear to have been much discussion of the When is question. What contracts are " consistent with the sufficiency of the impaired f mortgagee's security"? The exposure of the vessel to the ordinary risks of the sea is not regarded as inconsistent (l) ; nor is the fact that she will be removed from the jurisdiction of the English Courts, as where the voyage is outwards only, to a foreign port (m). Perhaps an agreement by which the mortgagors are to receive a large part of the freight in advance might be considered materially to prejudice the mortgagee's security : especially if the ship is to go a long foreign voyage ; and if the effect of paying freight in (A) Collins V. Lamport, 34 L. J., Oh. {m) The Fanohon, 5 P. D. 173. The 196, at p. 200. ship there belonged to Nova Sootia, and. (2) The Maxima, 39 L. T. 112. Of. the chartered voyage was to Phila- LamingiJ. Slater, 26 So. L. R. SCO. delphia. 46 THE CONTRACT. Sect. 41. Position of subsequent mortgagee. Authority of master to contract for owners. advance would be to leave the master without sufficient funds to disburse the ship abroad. A mortgagor cannot assign away the charter-freight so as to prevent the mortgagee from receiving it, on taking possession. "So to hold would enable the mortgagor to deprive the mortgagee of the whole benefit of the security. The ship might be chartered for several years, and the freight imme- diately assigned behind the back of the mortgagee" («). And the same remark would seem to apply to an agreement by which mort- gagors are to receive the freight from a charterer in advance. But in Cory v. Stewart (o), where part of the freight was payable in advance, and part of the balance to a person other than the mort- gagor, the Court of Appeal held that the mortgagee could not interfere ; and Lord Esher expressed the view that the ship need not be freight-earning for the mortgagee within any particular period. 41a. The position of a mortgagee who has taken his mortgage after the contract for the employment of the ship has not been definitely laid down. One who acquires a legal title to a ship, without notice of a contract or equity which may be affecting it, generally takes it free of that. But " there may be cases in which, although there is no actual notice, a mortgagee ought to assume that the ship is engaged in some ordinary employment" {p). In The Celtic King {q) a contract had been entered into by the owner with Tyser & Co., for the employment of the ship in The Tyser Line for five years. This was while the ship was being built. After completion and registration she was mortgaged to persons who had no notice of the contract. Moreover, the contract was one for working in a special trade, and contained clauses which, if binding on a pm-chaser, might make a sale diflaoult. Barnes,- J., held that the mortgagees were entitled to sell the ship without being hampered by the contract ; and that a purchaser from them could not be restrained from employing the ship in a manner contrary to that contract, although he had bought with knowledge of it. 42. When a ship is away from her home port, where her busi- ness is managed, the master generally carries the owner's authority, in) Brownj,. Tanner L. E 3 Ch. (^) pe, Barnes, J., in The Celtic 597, at p. 603. Cf. Keith i;. Burrows, tj-. „on.^T>,», 2 A. C. 636. King, (1894) P. 175, p. 187. (o) 2 T. L. E. 608. [q) (i894) p. 175. THE EMPLOYMENT OF THE SHIP. 47 and ordinarily he has power to enter into engagements, on their Sect. 42. behalf, for carrying goods in the ship, or for letting her services ; provided those engagements are consistent with the usual manner of employing her adopted by the owners (r). Shippers, having no notice to the contrary, are entitled to assume that he is the general agent of the owners for these purposes, and that his authority to enter into any usual undertakings is not controlled by any private instructions from them (s). " The best authorities we have (both Abbott and the American authority Story) seem to treat him as having power so to do when the owners are not present, either in person, or by virtue of their having consigned to an agent who represents them, and who, therefore, would be the proper person to apply to " (t). Where, however, a broker has been employed by the owners to find a cargo for the ship, the authority to make contracts is gene- rally in the broker, and not in the master (m) ; and shippers who know of the broker's appointment cannot safely deal with the master. If the vessel is a foreign one, sailing under a foreign flag, the authority of the master to contract on behalf of his owners is that which is conferred by the law of that flag. "His mandate is contained in the law of that country, with which those who deal with him must make themselves acquainted at their peril" (v). Where the appointed master has died, the first mate succeeds to Substituted his ojB&ce, and takes over his duties, and his authority to act for the "'^'^ ^^' owners (w). And if both master and first mate have died, the second mate succeeds to the position and authority of master. 43. But the master of the ship cannot engage her for purposes. Consistently or on terms, essentially different from those on which the owners Vessel's usual have usually employed her (x). What these are depends partly on employment. (r) He cannot contract by deed on their («) See per Lord Watson in Stumore behalf, unless he is authorized by deed v. Breen, 12 A. 0. 698, p. 704. {v) Lloyd V. Gruibert, 33 L. J., Q. B. And see The Q-aetano and Maria, 7 P. D. 137. to do so. Horsleyff. Bush, cited 7 T.E. at p. 209. ^ 241 at p. 248; L. E., 1 .Q. B. 115 (s) Smith's Merc. Law, yiu. p. 124, ^J^ ^J^^^ ;..„.„„„' „„r^,r.^. - and per Jervis, 0. J., in Grant v. Nor- way, 20 L. J., C. P. p. 98 ; Sandeman V. Scurr, L. K., 2 Q. B. 86. (w) Hanson v. Iloyden,-L. E., 3 0. P. (t) Per Wood, V.-C, Messageries 47. As to authority of a substituted Imp. Co. V. Baines, 7 L. T., N. S., at master, see The Alexander, 1 Dod. 278 ; p. 765 ; Abbott (5th), p. 91 ; (11th), iii. The Kinnersley Castle, 3 Hagg. 1. 2, 2 ; Story, Agency, ss. 116—121. (x) Story, Agency, s. 121. 48 THE CONTRACT. Sect. 43. the circumstances of the particular case ; but it has been held that a master has not authority to carry goods freight free (y) ; nor to contract to carry at a lower freight than that agreed upon by the owner with the freighter (s) ; nor to agree that the freight shall be payable to any person other than the owners {a). " The master is the agent of the owner for the purpose of enabling him to carry on the trade in which the ship is usually engaged ; but it is not com- petent to the master, or to anybody, to, assume to himself any other authority than the indispensable and necessary one of procuring a freight for the vessel, according to the ordinary terms " (b). In particular cases it may be shown that the master had, in fact, authority to make an exceptional contract. And where an im- proper contract has been made by him, and acted upon by the freighter, it would seem that the owners must adopt the whole contract if they seek to adopt it in part (c). It was decided by the Court of Appeal in The Fanny and The Matilda (<;?), that a master has not power to authorize a shipbroker at a port to which the ship is proceeding to charter her before arrival. Brett, L. J., said : " The authority of the captain to bind his owners by charter party only arises when he is in a foreign port, and his owners are not there, and there is difficulty in communicating with them. The system of a master writing forward, in the way I have described, to have his ship chartered, might counteract the very orders of the owners, who had themselves written to the very same place " (e). Master may 44. When the ship has been chartered by the owners the master charter party. ^^^ iiot authority to cancel the charter party, or to alter its terms. He is the owners' agent for the voyage defined by the charter party, and has not power to change it for another. Thus, he cannot validly agree to change her destination (/), nor to alter the amount of freight to be paid, or the manner of paying it {g). {y) Dewell v. Moxon, 1 Taun. 390 ; Henry Webb, supra. and per Jervis, C. J., in Grant v. Nor- (c) See Gibbs ■— Onus of proof where ' ' quantity and quality unknown " 73 Subject to the expressed exceptions, the contract is to deliver safely , . 74 But subject to inherent defects and general average losses 75 And subject to exemptions by statute 76 Exceptions construed against ship- owner, when ambiguous — Neg- ligence not covered by general words 77 Onus of proof 78 Warranty of seaworthiness not af- fected 79 Nor liability to general average. ... 80 Act of God, and Queen's enemies . . 81 " Restraints of princes, &c." 82 "Fire" 83 "Dangers of the seas and naviga- tion" 84 "PerUs of the sea" — The sources of danger 85 Bangers not peculiar to the sea — Loss by arrest 86 Loss must be accidental — And not a result of negligence , 87 Co-operation of causes — Proximate cause regarded 88 Application of proximate cause rule 88a Illustrations of proximate causes . . 89 Spread of mischief originated by sea damage 90 CARRIAGE IN A GENERAL SHIP. 55 BECT. Duration of "navigation" 91 "Risk of boats" 92 " Collision " 93 " Pirates, robbers, thieves " 94 Liability for bad stowage 95 Liability for ignoiance 96 Damage from dangerous quality of goods shipped 97 " Leakage " 98 " Barratry " 99 Effect of owner's assent — Barratry against charterer or cargo-owner 100 "Negligence of master, &c." . . .' . 101 Negligence of shipowner not gene- rally covered 102 Nor unseaworthiness 102a " Merchant's risk " 103 The Harter Act, 1893 103a Prohibitions under the Act 103b Clauses exempting from unsea- worthiness 103c Sect. 3— "Due diligence " 103d SECT. 103e Sect. 3 applies only as between freighter and shipowner — Does not enable shipowner to claim in general average 103f Sect. 3 — Other exceptions — Liberty to deviate to save life, &c 103g "Ship damage " 104 "Capable of being covered by in- surance" — "Damage" 105 " Claims to be made before re- moval" 106 Through bills of lading 107 Railway companies — Effect of Rail- way and Canal Traffic Act, 1854 — Steamers of railway companies 108 Exceptions on freight note 109 Decisions as to reasonable condi- tions—Theft 110 Passengers' luggage — " Not ac- countable unless bin of lading -Emigrant ships Ill 50. When a sHp is employed as a general ship, her sailing is Engagements usually announced publicly by advertisements, placards, and cireu- iu'^a'genefal lars. These show some details of her description, her port of ^'"P- destination-, or the round of ports at which she is to call ; her date of sailing ; with perhaps some of the terms on which goods will be received. Rates of freight and other terms are arranged by com- munipation with the ship's agents; or with the master, as the case may be. And each intending shipper usually enters into a binding agreement to send a specific quantity of goods ; for which, on the other hand, the agent of the ship undertakes to reserve space. The shipper then delivers his goods to those in charge of the ship, either on the quay at which she is lying or in lighters along- side her, or as may be customary at the particular port, and takes in exchange a receipt for them from the person in charge. This document is called the mate's receipt, and frequently shows the terms on which the goods are received. Sometimes it refers to a particular form of bill of lading for which it is to be exchanged. Further, in nearly aU cases, except sometimes on coasting voyages, the mate's receipt is exchanged for a bill of lading, signed by the master or the ship's agent, which sets out the fact that the goods have been shipped, and the terms upon which they are to be carried and delivered. 56 THE CONTRACT. Sect. 51. Breaches of engaffements. Liability of agents. 51. Engagements to ship goods, and to keep space for goods, must be punctually performed. Damages may be claimed, on tbe one side, if the ship has to sail without the goods, and so loses freight ; or if she is detained, through the non-arrival of the goods at the ship's side by the agreed time, or within such time (if none was agreed) as they might reasonably be expected to arriTe in when the contract was made. And, on the other side, the shipper may claim damages if the ship delays in sailing imreasonably, or beyond the agreed time, if any ; or if she sails leaving his goods behind, or without giving him the agreed, or a reasonable, oppor- tunity of delivering them for shipment {a). In Heugh v. Escombe (6) an undertaking was given by shipping agents in the following terms : — " "We undertake to ship for you by the "Warrior Queen, guaranteeing that she sails not later than the first week in July, or forfeit 2s. &d. per ton, 300 or 400 packages, one-third yam, at a through rate of 42s. Qd., free of commission, provided they are forwarded per Thompson, McKay & Co. on or before the 29th inst." In an action for not shipping some of the goods in the "Warrior Queen, alleging consequent losses, it was held that payment of 2s. Qd. per ton of the goods to be forwarded according to the agreement was a good defence. 52. Engagements to ship are frequently made by forwarding agents acting for merchants inland or abroad ; or by vendors or buying agents shipping on behalf of English or foreign purchasers or principals; and a doubt sometimes arises whether the person who has thus made the engagement is personally responsible upon it. Where the contract is not entered into expressly for some one else, or so as to indicate to the other party that he who makes it is only acting as agent in the matter, the person entering into it becomes responsible for its performance (c), though the principal for whose benefit it was in fact made may also be liable, and may be entitled to claim the benefit of it. In Lidgett v. Perrin {d), forwarding agents who contracted for the shipment in their own names were held liable for the freight, [a) See Hawes v. S. E. Bail. Co., 52 L. T. 514. Cf. Cranston v. Marshall, 5 Ex. 395 ; Yates v. Duff, 5 C. & P. 369. (b) i L. T., N. S. 517. {e) As to the personal liability of a broker who advertises a line of ships in his own name, see Simpson v, Toungr, 2 F. & F. 426. {d) 2 E. & E. 763. CARRIAGE IN A GENERAL SHIP, 67 though the names of their principals were inserted in the bills of Sect. 52. lading as shippers. If the contract has expressly been made for another, the person making it does not become responsible for its performance, but he impliedly warrants that he has authority to make it for that other person, and is liable in damages if that is not the case (e). When an engagement of this kind has been made in England on behalf of a foreign purchaser or principal, the presumption seems to be that the vendor or agent contracts personally, and does not pledge the credit of the foreigner (/). But this presumption will not prevail against a clear intention to the contrary (g). 53. If no bill of lading or other document is given upon the What form of shipment, the contract of carriage must be collected from the to be given, announcements, and arrangements that were made prior to the goods being shipped (A) . And should a difference arise as to the form of bni of lading to be given, that must be decided upon the same materials. Particular forms of bills of lading are used in certain trades, and where that is the case a shipper will be presumed to agree to accept the usual form. The same may be true of one who ships in a vessel belonging to a line, where a particular bill of lading is uniformly and notoriously used for that Hne. 54. BlQs of lading differ greatly in detail, but they have Forms of bill usually certain common features. The following may, perhaps, be said to show the common type : — " Shipped, in good order and condition, by , in and upon the good ship called the , whereof is master for this present voyage, now riSing at anchor in the port of , and bound for , [^description of goods] marked and numbered as in the margin, and are to be delivered in the like good order and condition at aforesaid (the act of God, the Queen's enemies, . fire, and all and every other dangers and accidents of the seas, rivers, and navigation of whatever nature and kind soever excepted), (e) See infra, sect. 129. [g] Green v. Kopke, 18 C. B. 649 ; (/) See Armstrong v. Stokes, L. R., Deslandes v. Gregory, 30 L. J., Q. B. 7 Q. B. 698 ; Elbinger, &c. v. Olaye, 36- L. R., 8 Q. B. 313 ; per Oleasby, B., ^ (*) f « ^^^f P« ;• ^^^f ^' ^8 \^-> ' Ex. 62 ; Peel v. Pnoe, 4 Camp. 243 ; Paioe V. Walker, L. R., 6 Ex. p. 178. ^j^^^^ ^_ jegoott Steamers, 1 Com. Ca. Cf. Lennard v. Bobinson, 24 L. J., 32 ; HiU v. Scott, (1895) 2 Q. B. 371 ; Q. B. 275. 713. 58 THE CONTRACT, Sect. 54. unto , or to his assigns, lie or they paying freight for the said goods at the rate of , with primage and average accus- tomed. In witness whereof, the master or agent of the said ship hath affirmed to bills of lading, aU of this tenor and date, the one of which bills being accomplished the others to stand void. " Dated in the day of " (Signed) Upon this, however, many modifications are made, generally in the direction of a diminution of the shipowner's liability. And different trades require peculiar clauses to meet their own circum- stances («). Much has been done in some trades towards establishing the use of common forms. That greater uniformity would be an advan- tage to merchants, underwriters, and bankers, is obvious ; but the matter involves awkward questions respecting the amount of liability to be borne by the shipowners ; and the efforts which have been made with the object of establishing a general uniformity have met with little success (/). How pre- 55. The bills of lading are usually procured by the shipper, and filled up by him with statements of the kinds and quantities of the goods, and the marks upon them (k) . These are checked on behalf of the ship ; and the documents are signed by the master, or ship's agent (1), and delivered to the shipper in exchange for the mate's receipts. Every bill of lading made in the United Kingdom " of or for any goods, merchandize or effects to be exported or carried coast- wise," must be stamped with a 6^^. stamp before signature ; otherwise the person who makes or executes it becomes liable to a penalty of 501 (rn). It cannot be stamped after signature {m). Sets. It is usual for a bill of lading to be drawn in a set, that is to say, two, three, or more parts of it are made out and signed. One (i) Some specimens will be found in tical success. See Appendix A. Appendix A. [Ic) As to charterer's duty to present (y) Three attempts have heen made bills of lading for signature, Oriental at conferences of the Association for the S.S. Co. v. Tylor, (1893) 2 Q. B. 618. Eeform and Codification of the Law of (?) See Stumore v. Breen, 12 A. C. 698, Nations (now the International Law as to the duties of the master, and of Association), at Liverpool in 1882, at the ship's agent, in regard to the bills Hamburg in 1885, and in London in of lading. 1893, to formulate a bill of lading suit- («i) 54 & 55 Vict. c. 39 s. 40 and able for general use ; but without prao- schedule. CARRIAGE IN A GENERAL SHIP. 59 of tliese is retained ty the master for Ms own guidance ; the others Sect. 55. are delivered to the shipper. ~ This is done for the convenience of the shipper ; it enables him to empower his agent to claim the goods when anything has gone wrong with the first hill of lading, or in case he should require to stop the goods in transit. At the same time the practice enahles the shipper to commit frauds, by negotiating the different 'parts to different persons, and it has been adversely commented on by learned judges (ra). Sometimes one of the set is marked " original," and the others " duplicate." In other cases, in order to protect the shipowner from liability upon more than one part, the clause is inserted that " one of these bills of lading being accomplished the others shall stand void ; " which means, " that if upon one of them the ship- owner acts, in good faith, he will have ' accomplished ' his contract, will have fulfilled it, and will not be liable or answerable upon any of the others" (o). 56. A doubt has sometimes been raised whether the bill of lading is the bill of is a conclusive statement of the contract between the shipper and conduai^^ shipowner : or is onlv one piece of evidence, helping with others statement of ^ , . 1 1 . T . the contract P to show what that contract is, and so subject to be contradicted, or varied, or added to, by verbal or other evidence, to show the agreement between the parties. The question is important, for if the bill of lading is the state- ment of the contract it cannot, ia the absence of fraud or mistake, be altered or added to by any evidence of preliminary or con- temporaneous negotiations or agreements on the subject-matters («) In Glyn k. East and West India the other parts of the bill can now be Dock Co., 7 A. C. 691, at p. 605, Lord applied, but could not be used for the Blackburn said : "I have never been able purpose of pretending to be holder of to learn why merchants and shipo-miers a bill of lading already parted with, continue the practice of making out a However, whether because there is some bin of lading in parts. I should have practical benefit of which I am not thought that, at least since the intro- aware, or because, as I suspect, mer- duction of quick and regular communi- chants dislike to depart from an old cation by steamers, and still more since custom for fear that the novelty may the estabUshment of the electric tele- produce some unforeseen effect, bills of graph, every purpose would be answered lading are still made out in parts, and by making one biU of lading only, which probably will continue to be so made would be the sole document of title, and out." See Sanders v. Maclean, 11 taking as many copies, certified by the Q. B. D. 327. Infra, Chap. XIV. master to be true copies, as it is thought (o) Per Lord Cairns, Glyn v. East convenient ; those copies would suffice & West India Dock Co., 7 A. C. 691, at for every legitimate purpose for which p. 599. 60 THE CONTRACT. Sect. 56. of the contract {p). The point does not seem to have often given rise to practical difficulty ; but there is some conflict of authority upon it. The bill of lading purports to be a statement of the contract ; and it would be anomalous and inconvenient that a formal docu- ment, accepted by the parties, and apparently expressing the relation between them, should be only evidence, liable to be rebutted, of that relation. On the other hand, the biU. of lading is not usually signed until after the goods have been shipped; and it sometimes happens that it contains terms not agreed upon at the time of shipping, or that it varies or omits some of the terms as then understood. In Eunquist v. Ditohell (q), at Nisi Prius, a shipper was allowed to rely on a statement in the advertisement of the ship that she was warranted to sail with convoy, as being a contract to that effect ; although the bill of lading (if any) did not contain any stipulation of the kind (r). But the point does not seem to have been raised, nor does it appear that there was any bill of lading at all (s). In Phillips V. Edwards {t), casks of brandy had been shipped at Bristol for Falmouth, with carriers whose printed time bills stated that they would not receive goods, except upon the terms that they should not be responsible for any loss or damage from any cause whatever during the transit. One of these bills had been delivered to the shipper. After the casks had been shipped a "freight note," as it was called, which appears to have been in effect a biU of lading, was delivered to the shippers by the carriers. This was inconsistent with the time bills, and by its terms the carriers were responsible for bad stowage. The casks were stove in during the voyage, and the question arose whether the carriers were entitled to the exemption expressed in their time bills, or were bound by the terms of the freight note. It was held that the expressions in the time bills governed, the contract. It is true that the Court thought there had probably been a mistake made in using this freight note ; but Pollock, C. B., said that " the contract is that {p) See Chap. VI. (s) Cf. Abbott (5th), p. 213 ; (13th), (?) 3 Esp. 64. P- 357 ; ^""i Snell v. Mairyatt, there cited, where the question was treated as («•) See per Gribbs, 0. J., in Saunderson unsettled. V. Busher, 4 Camp. 54, u. (<) 28 L, J., Ex, 52. CARRIAGE IN A GENERAL SHIP. 61 which is formed at the time the goods are delivered," whereas Sect. 56. " the freight note was a matter occurring afterwards " (m). And Watson, B., gave judgment to the same effect. These cases favour the contention that the bill of lading is not conclusive evidence of the contract ; and in a later judgment hy Lush, J. (v), that eminent judge expressed the following opinion : — " A MU of lading is not the contract, but only the evidence of the contract ; and it does not follow that a person who accepts the bill of lading which the shipowner hands him necessarily, and without regard to circumstances, binds himself to abide by all its stipula- tions. If a shipper of goods is not aware when he ships them, or is not informed in the course of the shipment, that the bill of lading which will be tendered to him will contain such a clause, he has a right to suppose that his goods are received on the usual terms, and to require a bill of lading which shall express those terms" (x). We have, however, to deal at present with cases in which the shipper has not required anything diSerent from the bill of lading in fact tendered to him, but has accepted that without protest. Where that has been done, it is difi&cult to suppose that the docu- ment can be treated as not being what it seems to be. The practice of looking to it as the contract may be said to be uniform ; and, indeed, has been adopted by the Legislature (y) ; and the scarcity of authority is in truth a strong confirmation of the view that it is the contract, for it shows that in practice the point has not been considered open to question. In Fraser v. Telegraph Construction Co. (z), Blackburn, J., said: " The bill of lading must be taken to be the contract under which goods are shipped, and until I am told differently by a Court of Error I shall so hold." And Brett, L. J., in Chartered Mercantile Bank, &c. v. Nether- land India Steam Navigation Co. (a), said: "The contract has been by the consent of the parties reduced into the form of a bill of lading, and therefore the whole of the contract is contained in («) 28 L. J., Ex. p. 54. (y) Bills of Lading Act, 18 & 19 Vict. («)) Crooks V. AUan, 5 Q. B. D. at c. Ill ; infra, sect. 62. p. 40. («) L. B,., 7 Q. B. atp. 671. (it) So, too, per Bramwell, L. J., in {a) 10 Q. B. D. at p. 628. And see Jones V. Hough, 5 Ex. D. p. 124. And the judgments of Lord Esher and Fry, see Sewell v. Burdick, 10 A. C. .74, at L. J., in Leduo v. Ward, 20 Q. B. D. P' 105. 475. 62 THE CONTRACT. Sect. 56. that bill of lading, and no terms of the contract outside the hill of lading can he looked at." And Lord Selhorne, in Glyn v. East and West India Dock Go. (b), said : " Everyone claiming as assignee under a hill of lading must he hound hy its terms, and hy the contract hetween the shipper of the goods and the shipowner therein expressed. The primary oflSce and purpose of a hill of lading, although hy mer- cantile law and usage it is a symhol of the right of property in the goods, is to express the terms of the contract hetween the shipper and the shipowner." In the Supreme Court of the United States the point was dis- tinctly raised upon the question whether evidence could he given of a verhal agreement with the shippers (plaintiffs), made before the biU of lading was signed, that the goods should he stowed on deck ; the hill of lading being silent on the point. It was held, that the bill of lading imported a contract to stow under deck,, and that the evidence to vary it ought not to be admitted (c). 57. On the other hand, the biU. of lading is not always the expression of the contract; that may have been definitely concluded before it was given, as where the shipper had chartered the vessel or part of her. In such cases the original contract generally determines the relations between the shipper and shipowner (d). And where the biU of lading is on its face manifestly not a complete statement of the contract, evidence may be given to complete it. Thus, in Andrews v. Moorhouse (e), the bill of lading contained the clause, " freight for the said goods being paid," and evidence was admitted to show that the amount of freight had been agreed upon verbally at 51. a ton, payable in London, the port of shipment. It was left to the jury to say whether the contract meant that that freight should be paid in any event, whether the ship arrived at her destination or not, or only upon delivery of the goods (/). Shipper may 58. The shipowner has no right to alter the contract after the require le- j i. i , t ■, , „ "j-^^j. ujac delivery of goods have been put on board ; and if he refuses to give a bill of Bill of lading not always the contract. Where iaoomplete. (i) 7 A. 0. 591, at p. 596. (e) The Delaware, 14 WaU. 679 (1871) ; of. Say ward v. Stevens, 3 Gray, 97 (Mass. 1854). In Leduc v. "Ward, 20 Q. B. B. 476, the shipper's assent to an intended deviation was ignored. l^ Infra, s. 161. " (e) 5 Tauu. 435. (/) So also Lidgett v. Perrin, 11 C. B., N. S. 362. And see Malpas v. li. & S. W. EaU. Co., L. R., 1 C. P. 336. CAEEIAGE IN A GENERAL SHIP. . 63 lading in accordance with the terms that have been expressly agreed, Sect. 58. or are to be implied from the usual course of business, the shipper goods if a may demand his goods back, and may claim damages for the breach fading not °^ of contract (g). given. In Peek v. Larsen (g), a Norwegian vessel was advertised in London as about to sail for St. John. " For freight or passage apply to J. D. Claxton & Co., brokers To be followed by other well-known clippers." The plaintiff applied to J. D. Claxton & Co., and arranged with them for the shipment of some packages of tea, at the rate of 17s. 6d. per ton and 5 per cent, freight, payable at St. John, with an allowance for primage. The tea was then sent on board by the plaintiffs, a receipt was given for it signed by the mate, and the plaintiffs presented bills of lading to J. D. Claxton & Co. for signature by the captain. But these were returned some days afterwards unsigned, and it then appeared that Messrs. Claxton were only charterers of the ship, and were unable to carry out their contract. The captain claimed to retain the tea under a lien given by the charter party, and refused to sign any bills of lading that did not incorporate the terms of the charter party. The plaintiffs had had no previous notice of the charter; they declined to take bills of lading incorporating its terms ; and claimed that the tea should be re-delivered to them. It was held, that they were not bound to have inquired as to the existence of a charter party, and were entitled to have back the tea free of any claims of the shipowner. Lord iiomUIy, M. R., considered that no transaction had been completed between the parties (h). When, however, a bill of lading has been given and taken, its When bill of provisions must be considered to relate back, and apply to what has jts tefm?^^'^' been done in regard to the shipment before it was given. It is to ?®'*^ *° "^^^* JlSiS D66U be taken as the expression of the contract under which everything already done, has been done. Thus, the exceptions of risks contained in it apply to the stowage of the goods, although that may have been com- pleted before the bill of lading was given («'). {ff) Teekv. Larsen, L. E., 12 Eq. 378 ; E. 393 ; Pyman v. Burt, 1 Cab. & E. of. KaUi V. Paddington S.S. Co., 5 Com. 207. And see per A. L. Smith, J,, in Ca. 124; Jones {'.Hough, 5 Ex. D. 115; Norman v. Binnington, 25 Q. B. D. infra, s. 269. 475, p. 478 ; and per Barnes, J., in the (A) Ibid. p. 386. Glenoohil, (1896) P., p. 19. Cf. (i) Baerselman ». Bailey, (1895) 2 Nottebohn v. Eichter, 18 Q. B. J). Q. B. 301 ; The Duero, L. E., 2 A. & 63. 64 THE CONTEACT. Sect. 59. 59. The shipper is entitled to have a duly signed bill of lading Shipper may given to him. As we shall see hereafter, the document is not lading? ° merely evidence of the contract, but also a document of title to the goods ; by the negotiation of which the property in the goods may be transferred, and delivery of them constructively given. In Falke v. Fletcher (k), it was held that a refusal to give bills of lading to the shipper, and sailing away with the goods after that refusal, amounted to a conversion of them. But in that case the captain, in so refusing, was in effect setting up the title of another person to the goods. On the other hand, in Jones v. Hough (l), a wrongful refusal to give a bill of lading for goods, received on board to be carried under a charter party, under circumstances which showed no intention to deprive the shipper of his property, was held not to amount to a conversion ; but to give a right to damages, if any could be shown. Where the charter party requires that the master shall sign the bills of lading, it is not satisfied by the owners signing, or being willing to sign (m). To whom is 60. The shipowner must be careful to give the bill of lading to lading to be the person entitled to have it. Ordinarily that is the person who given? j^g^g siiipped the goods. He is generally the contracting party; and the shipowner, if he has no notice to the contrary, may treat him as entitled to the possession of the goods, and to the bill of lading which represents that possession (n). But the matter is sometimes complicated by the existence of a mate's receipt. This may have been transferred to a purchaser ; or the owner of the goods may have required the receipt to be given up to him by the person who has shipped for him, in order to obtain the bill of lading himself. The shipowner ought, there- fore, in prudence, when a mate's receipt has been given, to require that it be given up in exchange for the biU of lading. Possession of it by the person who claims the bill of lading is evidence that he is either the real shipper, or has the authority of the shipper; whereas, non-possession of it is an indication that he has not that authority (o). {k) 3i L. J., 0. P. U6. («) Hathesing v. Laing, L. K., 17 (?) 6 Ex. D. 115. Cf. Eayner v. ^- ^^■ Rederiaktiebolaget Condor, (1895) 2 ^"^ ^^^ ^'"^^^'^ "■ ^7^^' ^ '''^™- Q T, „„. . ^ ; -= 433; Euok^. Hatfield, 6 B.& A. 632; ^" Schuster v. M'Kellar, 26 L. J., Q. B. m) The Princess, 70 L. T. 388. 281. CARRIAGE IN A GENERAL SHIP. 65 But the mere fact of holding the mate's receipt does not give the Sect. 60. holder the right to claim the bill of lading. If the latter has been Effect of given to the person actually entitled to the dominion over the ^geipt. goods, the shipowner is discharged, although the mate's receipt may be in the possession of some one else (p). The right to that dominion generally depends on the law relating to sales of goods (q). Where a vendor ships goods in his own name, and takes and keeps the mate's receipt for them, that goes far to show that he still intends to keep, and does keep them under his own control, although, by the contract, the property is to pass to the purchaser on the shipment (r). But where agents at Bombay had bought and paid for goods on account of their principals, and had shipped the goods in the names of their principals, it was held that the retention by them of the mate's receipts, with the view of holding the .goods as security for repayment of the price, did not entitle them to claim the goods from the shipowner, or from the holders of bills of lading which had been given to the principals. Por the lien of the agents was lost when they shipped the goods, notwithstanding their retention of the receipts («) ; and the Yiee-Chancellor refused to hold the shipowners bound by a custom said to exist at Bombay, under which the bill of lading must be delivered to the persons holding the mate's receipts. He considered that the captain, having no notice of any other owners, discharged his duty by giving bills of lading to those in whose names the goods had been shipped. In Schuster v. McKellar {t), the" plaintiffs, owners of the goods, had allowed one Cole (who was an intending purchaser) to ship them, on the understanding that he would hand them the mate's receipt. This he did, and according to the ordinary course of business between them he should have redeemed the receipt by paying for the goods. Instead, however, he obtained a signed bill of lading for the goods, without producing the receipt, and he indorsed this bill of lading to the Oriental Bank for value. (p) Co-wasjee v. Thompson, 5 Moo. see Cowasjee v. Thompson, 6 Moo. P. C. P. C. 165 ; Hathesing v. Laing, L. K., 1^5. g^ W Hathesing v. Laing, L. E., 17 "■ ■ Eq. 92. But perhaps the agent's Hen (q) See Benj. on Sales {3rd), bk. ii. would have been preserved had the re- ■. . oeipts been taken in their own names. See per Abbott, 0. J., Ruck v. Hatfield, (r) Craven v. Ryder, 6 Taun. 433 ; 5 B. & A. 632. Ruck V. Hatfield, 6 B. & A. 632. But [t) 26 L. J., Q. B. 281. C. — C. F 66 THE CONTEACT. Sect. 60. After the ship had sailed, and after Cole had failed, the owners of the goods gave notice to the shipowner that they held the mate's receipt, and required him to deliver the goods to them. In spite of this, they were delivered at Calcutta, the ship's destination, to the Oriental Bank ; and the question raised was whether the owners were precluded by what they had done, or omitted to do, from insisting upon their title to the goods. For it was considered that if they had, by improper conduct or laches, led the shipowner to incur other liabilities under the bill of lading, they would be so precluded. The jury were asked whether the captain and ship's brokers were justified, under the circumstances proved, in signing and delivering the bill of lading to Cole without the mate's receipt ; and they were told that " if the captain and brokers did not know of the mate's receipt, and there was good ground for supposing that there was none, there would be no negligence on their part." The jury found for the plaintiffs, and their verdict was upheld by the Court. With whom 61. When goods are delivered to a carrier to be carried without 18 the contract , . . made? any special contract bemg made, the right to sue for a breach of duty on the carrier's part appears to be in the person to whom the goods belonged at the time of the bailment {x), or who is to bear the risk of the transit {y) . If the actual sender is acting on the owner's instructions, the latter is regarded as the contracting party, and he becomes entitled to sue for the goods, and is liable to pay the freight, and otherwise to perform the implied contract. But when a special contract is made with the carrier, its terms must be looked at ; and if it appears that the shipper was himself the contracting party, he is the person able to sue, and liable upon the contract, although he may have been acting for the benefit of another, and may have no interest in the goods (s). In Davis v. James {a), an action by consignors against the carrier for not delivering, the objection was taken that the action (x) Dawes v. Peck, 8 T. R. 330 ; 600 ; Cork DistiUeries Co. ». a. S. & Coombs V. Bristol & Exeter Rail. Co., W. Rail. Co., L. R., 7 H. L. 269. 27 L. J., Ex. 401 ; Sargent v. Morris, W Dvmlop v. Lambert, 6 CI. & F. 3 B. & Aid. 277 ; Eragano v. Long, i 60" ! Dickenson v. Lano, 2 E. & E. 188 ; B fi^ O 2iq ^-^^ ^^- ^°- ■"■ ^*8^S«> 15 ^- B- ^• 625. Dunlop V. Lambert, 6 CI. & P. (a) 5 Burr. 2680. CARRIAGE IN A GENERAL SHIP. 67 should have been brought by the consignee, to whom the goods Sect. 61. had passed. The ''plaintifEs had paid the carriage. Lord Mans- field said there was neither law nor conscience in the objection. " The vesting of the property may differ according to the circum- stances of cases ; but it does not enter into the present question. This is an action upon the agreement between the plaintiffs and the carrier. The plaintiffs were to pay him. Therefore the action is properly brought by the persons who agreed with him and were to pay him" [b). The same was held in Joseph v. Knox (c), in an action by for- warding agents who had shipped goods in their own names, under a bill of lading, and had paid the freight on them. In Dunlop v. Lambert ((?) the same question was raised before the House of Lords. Lord Oottenham said : " I am of opinion that although, generally speaking, where there is a delivery to a carrier to deliver to a consignee, he is the proper person to bring the action against the carrier, should the goods be lost ; yet that if the consignor made a special contract with the carrier, and the carrier agreed to take the goods for him, and to deliver them to any particular person at any particular place, the special contract supersedes the necessity of showing the ownership in the goods ; and that, by the authority of the cases of Davis v. James, and Joseph v. Knox, the consignor, the person making the contract with the carrier, may maintain the action, though the goods may be the goods of the consignee." In that case, also, the goods had been shipped under a bill of lading, by which the freight was payable by the shipper. The case was remitted to the Court below, on the ground that the direction to the jury had been erroneous : (1) because the question at whose risk the shipment was made had been withdrawn from them; and (2) because the question had not been determined whether there was a special contract between the consignors and consignee (? shipowner) which might enable the former to recover. Perhaps it may be laid down that where goods are shipped in the ordinary way, and a biU of lading is taken for them by the (i) Cf . Moore v. Wilson, 1 T. E. 659 ; Ld. Raym. 271 ; Blanchard v. Page, 8 Dawes .. Peck, 8 T. E. 330. ^ ^^^^^_^ 281. («) 3 Camp. 320. Cf. Brown ». Hodg- '^ ' son, 2 Camp. 36 ; Evans v. Martlett, 1 M 6 01. & F. 600. r2 68 THE CONTKACT. Sect. 61. shipper, without giving any notice that he is acting only as agent, then, whether the consignee is named or not, the contract is, in the first instance, between the shipowner and the shipper himself, although the freight be made payable abroad by the consignee (e). But if it be shown that the shipper had in fact a principal, the latter may claim the benefit of the contract, and may be made liable upon it (/). BiUs of 62. Prior to the Bills of Lading Act, 1855, the contract of car- Ijadmg Act , , , nage was not transferred by a transfer of the biU of lading, or of the property in the goods. The transferee did not acquire any right to sue for a breach of the contract in his own name {g), nor was he himself liable to be sued upon the contract Qi), To obviate the inconvenience of this state of the law the BiUs of Lading Act (18 & 19 Yict. c. Ill) was passed, on August 14th, 1855. It recited that " by the custom of merchants a bill of lading of goods being transferable by indorsement, the property in the goods may thereby pass to the indorsee, but nevertheless all rights in respect of the contract contained in the bill of lading continue in the original shipper or owner, and it is expedient that such rights should pass with the property." And enacted as follows : — " 1. Every consignee of goods named in a bill of lading, and every indorsee of a bill of lading to whom the property in the goods therein mentioned shall pass, upon or by reason of such consignment or indorsement, shall have transferred to and vested in him all rights of suit, and be subject to the same liabilities in respect of such goods as if the contract contained in the bill of lading had been made with himself. "2. Nothing herein contained shall prejudice or afEect any right of stoppage in transitu, or any right to claim freight against the original shipper or owner, or any liability of the consignee or indorsee, by reason or in consequence of his being such consignee or indorsee, or of his receipt of the goods by reason or in consequence of such consignment or indorsement. " 3. (See below, sect. 70.) " W See G. W. EaU. Co. v. Bagge, 16 Ex. 320 ; Sargent t;. Morris, 3 B. & Aid. Q. B. D. 625. Infra, ss. 484, 602, 638. 277. (/) Anderson .. Clark, 2 Bing. 20. (A) Sanders v. VanzeUer, 12 L. J., (y; Thompson v. Dominy, 14 L. J,, Ex. 497. CAEKIAGE IN A GENERAL SHIP. 69 TJnder this Act the rights under the contract follow the pro- Sect. 62. perty in the goods, provided the owner or assignee is named in the EfPect of bill of lading as consignee, or has the bill of lading indorsed to ''''^°™e°'«'i*- him. And the indorsee acquires the right to claim for breaches of the contract committed before, as well as after, he became the owner of the goods («). The indorsement need not be special; simple delivery of the bill of lading, indorsed in blank, is suffi- cient (k). With the rights of suit are also transferred the liabilities in respect of the goods under the contract. It does not appear to have been decided whether this relates only to subsequent liabilities. Perhaps it also includes liabilities on the face of the bill of lading which ought to have been, but have not, in fact, been satisfied by the indorser : for example, where the freight was agreed to be paid in advance, and has not been paid (l). 63. The contract assigned by the indorsement is that which is Indorsee not expressed in the bill of lading, unaffected by any alterations which inconsistent may have been agreed upon between the shippers and the ship- made with" ^ owner. Thus, in Leduc v. Ward (m), an action by an indorsee for ^^"PP™; a loss of the goods during a deviation from the voyage described in the bill of lading, it was contended ihat the shipowners were excused by a notice to the shippers, at the time of shipment, that the ship would make that deviation. But it was held that no understanding with the shippers could affect the right of the indorsee to have the goods carried as shown in the bill of lading. " I prefer to rest my judgment on the view that the provision of the statute making the contract contained in the bill of lading assignable is inconsistent with the idea that anything which took place between the shipper and shipowner, not embodied in the bill of lading, could affect the contract " (»). Nor is an indorsee affected by collateral stipulations, or condi- tions, which might have prevented those who have assigned and indorsed to him from enforcing the contract; unless he had (i) Short V. Simpson, L. R., 1 0. P. to sue the shipowner for the damage. 248 ; The Wilhelm Schmidt, 25 L. T. (A) See the suggestion of a possible 34 • The Bona, 61 L. T. 28. See difference between special and blank in- Bristol, &c. Bank v. Midland Rail. Co., dorsements by Lord Selbome, in Sewell (1891) 2 Q. B. 652. Cf. The Marathon, v. Burdiok, 10 A. C. 74, p. 83 ; but of. 40 L. T., N. S. 163, where one who per Ld. Blackburn at p. 93. had sold a cargo, and allowed in the (0 See infra, ss. 606, 637. price for damage sustained in the ship {m) 20 Q. B. D. 475. prior to the sale, was afterwards allowed («) Per Fry, L. J., at p. 484, 70 THE CONTKACT. Sect. 63. Nor by estoppel of shipper. Claim of indorsee confined to goods put on board. notice of tHose stipulations. In The Emilien Marie (o), a bill of lading had been given to the shipper for forty tons of palm kernels, on the understanding that delivery in full should first be made under two bills of lading previously given for portions of the cargo ; and that delivery should only be given under the third bill of lading if any were left. There were, in fact, not enough kernels to satisfy aU the bills of lading. Still the indorsee of the third for forty tons was held entitled to demand that quantity, without regard to the understanding with the shipper. And in Obrloff v. Briscal (The Helene {p) ), Dr. Lushington held that an indorsee of the bill of lading is not estopped from com- plaining of the stowage of the cargo, merely because the shipper would be estopped from doing so by his acts at the time of ship- ment. " The shippers and the assignees of the bill of lading do not stand to each other as agent and principal, but as vendor and purchaser. The rights and the liabilities which the assignee of the bill of lading, under the first section of the 18 & 19 Vict. c. Ill, has transferred to him, are the same rights and liabilities in respect of such goods as if the contract contained in the biU of lading had been made with him ; but in these cannot be included the rights and UabiKties as between the shipper and the master dehors of that contract in respect of other goods, or of the charter party. If so, the biU of lading would always incorporate the charter party, which it never does unless expressly stated; Chappel v. Comfort (j'). I think the rights of the plaintiffs, as assignees of the bill of lading, could not be curtailed by any liability of the charterers towards the master, not being a liability imposed upon the plaintiffs under the bill of lading " (;•). 63a. On the other hand, the rights of suit thus transferred to the indorsee are limited to those which arise under the contract, as expressed in the bill of lading. In Thorman v. Burt (s), 7,497 pieces of timber had been brought alongside the ship, and a mate's receipt had then been given for them. Subsequently 216 pieces were in some way lost from the rafts while alongside, and did not (o) 32 L. T. 435. [p] L. R., 1 P. C. 231. (j) 10 0. B., N. S. 802. ()•) OhrlofE V. Briscal (The Helene), L. E., 1 P. C. »t p. 236. And see Leduo V. Ward, 20 Q. B. D. 475. Cf. Swainstont). Garrick, 2 L. J., N. S., Ex. 2S5 ; Craig v. Delargy, 16 So. L. R. 751. And per Lord Esher in Cox v. Bruce, 18 Q. B. D. 147, p. 152. (») 64 L. T. 349. CAERIAGE IN A GENERAL SHIP. 71 get on "board ; but iDills of lading -were signed by the captain's Sect. 63a. agent for the whole 7,497 pieces, as being " in the hold." In- dorsees of these bills of lading claimed for short delivery of the 216 pieces. But it was held by the Court of Appeal that they had no right of action, since they could only claim under the contract in the bill of lading, and that only bound the shipowner in respect of the timber actually put on board. So far as the biQ of lading related to goods not put on board, it was given vnthout authority. In that case the whole of the timber mentioned in the bills of lading had been delivered into the custody of the ship ; and thus the shipowner was apparently liable for it to the shippers (t). But the Court regarded that fact as not material to the claim of the indorsees; for their claim was made by virtue of the Bills of Lading Act, and was confined to what could be claimed under the contract shown by the bills of lading. 64. An indorsee to whom the rights and liabilities under the Effect of re- contract have passed, gets rid of those rights and of any subsequent by inter- Habilities if he assigns the goods away again, and indorses the bill ^aoraee of lading to the assignee (m). But an indorsement to an agent will not relieve the indorser of his liabilities, unless the shipowner in some way agrees to accept the liability of the indorsee in place of that of the indorser. In Lewis v. MeKee (»), the consignee (and owner) of the goods indorsed the bill of lading as follows : " Deliver to Messrs, Whatney & Keane or order looking to them for aU freight, dead freight, and demurrage, without recourse to us, (signed), George B. MoKee & Co." A plea which set this out, and alleged that the plaintiffs accepted the indorsement and delivered the goods in pursuance thereof to Whatney & Keane, as the persons entitled to the goods, and not to the defendant, was held good on demurrer (y). But proof of the mere delivery of the goods to Whatney & Keane (who were in fact only agents for the defendant), in exchange for the bill of lading so indorsed, was not sufficient to discharge the (t) The short-tand notes of the trial («) Smurttwaite v. Wilkiiis, 31 L. J., before Grove, J., show that the ship- 0. P. 214. owner's liability to the skippers, for the {x) L. K., 2 Ex. 37 ; L. K., 4 Ex. missing pieces, was admitted, subject to 68. possible defences against them. {y) L. E-i 2 Ex. 37. 72 THE CONTRACT. Sect. 64. Position of shipper after indorsement. defendant ; it was held that he must show that tlie indorsement had been seen and assented to (s). And, on the other hand, the liabilities oi the bill of lading holder are not got rid of by a sale of the goods, unless he also transfers the bill of lading. The consignee of a cargo sold it before it arrived, but retained the bill of lading. On arrival, the cargo was delivered to the last purchasers (there had been two sub- sales), upon delivery orders signed by the consignee; but the cargo was not taken with proper despatch within the meaning of the biU of lading contract. The consignee was held liable for the breach, he being stUl consignee within the meaning of the Bills of Lading Act. As against the shipowner he had retained aU the rights of owner (a). 65. It does not appear to have been decided whether the original shipper continues liable under the contract when the property has. Are Uaiiiities passed to a consignee named in the bill of lading, or to an indorsee. The reasoning, however, on which Smurthwaite v. WUkins (i) was decided, seems to apply to the case of the shipper as well as to that of an intermediate indorsee. By the Act the shipper's rights under the contract are transferred to the indorsee ; it would, there- fore, be unfair that he should still be imder the obligations of the contract which have to be performed subsequently (c). Sect. 2 of the Act expressly keeps aUve the shipper's liability for freight, and this confirms the view that subject to that exception the liabilities are transferred. It should, however, be noted that the Act does not say that the liabilities are to be transferred; and that its preamble only states that it is expedient that the rights of suit should pass with the property. But this does not seem to have given rise to any distinction. Brett, L. J., referring to the Act, in Gllyn v. East and West India Dock Co. {d), said : — "As the statute is, in my opinion, applicable, the rights of suit under the contract agaiast the shipowner, that is, the rights to performance of the contract by the shipowner, are transferred to the indorsee. If it were not for the subsequent part of the enactment {i. e., sect. 2), the meaning («) L. E., 4 Ex. 58. (a) Fowler v. Knoop, 4 Q. B. D. 299. As to tlie right to sue in such a case, see The Felix, L. E., 2 A. & E. 273. Cunningham v. Guthrie, 26 So. L. E. 208. (i) 31 L. J., C. P. 214. [c) But see Fox v. Nott, 30 L. J., Ex. 260. {d) 6 Q. B. D. at p. 482. CARRIAGE IN A GENERAL SHIP. 73 of the word ' transferred ' would be that all rights and liahilities Sect. 65. under the contract would arise and exist between the shipowner and the indorsee, and would cease between the shipowner and the indorser, if he was the original shipper or owner. All such rights and liabilities are so transferred, that is to say, so arise and cease, except such as are reserved by the proviso in sect. 2. No right is reserved to the original owner or shipper, except the right to stop in transitu. Therefore, by virtue of the statute, the original owner or shipper has lost all accruing claims and right to performance under the contract against the shipowner, and all such claims and rights are transferred to the indorsee." 66. The transfer of the rights and liabilities under the contract to what depends upon the passing of the property in the goods to the con- ^^o^g* ™'^^* signee or indorsee. He must acquire "the property in the goods" pass? "upon or by reason of- such consignment or indorsement" (e). A prima facie right of action is, however, established by proving that the indorsee gave value for the bill of lading to one who got it from the consignors of the cargo (/) . In The Freedom {g), it was held that consignees for sale, to whom the consignors had indorsed the bill of lading, and who, as part of the transaction, accepted and paid a bill of exchange drawn by the consignors for nearly the full value of the goods, had acquired the property within the meaning of the Act. And in The Nepoter (A), Sir E. PhiUimore considered that a consignee for sale might be in the same position, although he had not advanced against the particular cargo, if the consignor was indebted to him on the account current between them, and an arrangement existed under which the proceeds of the goods were carried to that account. The decisions in these eases were, however, as to the effect of the Admiralty Court Act, 1861 («), and it is perhaps doubtful whether the requirements of that Act are the same as those of the Bills of Lading Act, 1855 (/«). (c) The effect of an indorsement of FigUa Maggiore, L. E., 2 A & E. 106. the bUl of lading in passing the pro- (A) L. E., 2 A & E. 375. perty in the goods is discussed in Chap. j.j 34 yiot. 0. 10, s. 6. Infra, ss. 685, XIV. 690. (/) Dracaohi v. The Anglo-Egyptian (j) See per Lord Blackburn, Sewell v. Nav. Co.,,L. E., 3 0. P. 190. Burdiok, 10 A. 0. 74, at p. 94. And (y) L. E., 3 P. C- 591- See also The see infra, s. 691. 74 THE CONTEACT. Sect. 66. The question under the latter Act was raised distinctly in Sewell V. Biordick {I), and was there fully discussed, especially in the House of Lords. A shipment of machinery had been made under bills of lading, which made it deliverable at Poti to the shipper or assigns on payment of freight, &c. ; in default the owners or agents to have an absolute lien on the goods, and liberty to sell by auction and retain freight and charges. The bills of lading were indorsed in blank, and deposited with Messrs. Sewell, bankers in Manchester, as security for a loan made by them to the shipper. The ship had in the meantime arrived at Poti, and the goods were landed and warehoused at the Russian custom-house. The shipper disappeared, and after a year the goods were sold, in accordance with Russian law, to pay custom-house duty and charges, and they realised no more than enough for that purpose. The question was whether Messrs. Sewell, as holders of the bills of lading, were liable for the freight, which remained unpaid. Field, J., held that they were not, on the ground that the transaction was only a pledge of the goods, and that the bankers had only acquired a special property in them as pledgees. This was reversed by a majority of the Court of Appeal (Brett, M. E., and Baggallay, L. J. ; Bowen, L. J., dissenting), on the ground that by the indorsement the legal property in the goods had passed to the bankers. But in the House of Lords this judgment again was reversed, and that of Field, J., restored. The judgment of the Court of Appeal proceeded on the view that the indorsement of a bill of lading as a security for an advance necessarily passed the legal property in the goods to the indorsee, leaving only an equitable interest in the indorser, either to redeem the bill of lading by paying ofE the advance, or to receive any surplus in the event of a sale. That, in short, the security given in this way must be by way of mortgage, as dis- tinguished from pledge, whereby the right of possession of the goods would pass to the indorsee without giving birn the goods themselves. This view must now be considered to be definitely disposed of by the judgments in the House of Lords. There is no technical necessity for regarding a transfer of a bill of lading as indicating any one particular thing. It may be made for the purpose of completing a pledge, or a mortgage, or a sale, or simply as an (T> 10 Q. B. D. 363 ; 13 Q. B. D, 159 ; 10 A. C. 74. CARRIAGE IN A GENERAL SHIP. 75 authority to an agent to reoeiYe the goods. In each ease the effect Sect. 66. is to be ' determined by considering what the intention was as between transferor and transferee (m) . But, further, the judgments in the House of Lords show that, Is a transfer although the intention may be to transfer the legal property in mortgage the goods by way of mortgage, it does not follow that the rights ^ and liabilities under the contract are transferred. Lord Black- burn (w), commenting on the dictum of the Privy Council in The Freedom (o), that the "property" referred to in the Bills of Lading Act, 1855, was " the legal title to the goods as against the indorser," said that the opinion there expressed "was perhaps not necessary, and I think not sound." " The words used in the statute are not such as prima facie to express such an intention. No one, in ordinary language, would say that when the goods are pawned, or money is raised by mort- gage on an estate, the property, either in the goods- or land, passes to the pledgee or mortgagee, and I cannot think that the object of the enactment was to enact that no security for a loan should be taken on the transfer of bills of lading unless the lender incurred all the liabilities of his borrower on the contract. That would greatly, and I think unnecessarily, hamper the business of advanciug money on such securities which the legislature has, by the Factors Acts, shown it thinks ought rather to be encouraged. " But where the goods are at sea, and there is a transfer of the bill of lading, there is a delivery of possession, symbolical it is true, but all that can be given. The question whether there was a mortgage or only a common law pledge, or hypothec, it being accompanied by delivery, might affect the question what was the Court in which those rights were to be enforced, but does not affect the substance of the rights. The borrower, i£ ready and willing to pay the money, might, in the one case, be able to bring an action at law against the lender who refused to allow him to redeem, and, in the other, have to sue in equity ; but as it would equally be a pledge, his rights would be the same in substance. I am therefore strongly inclined to hold that, even if this was a mortgage, there would not have been a transfer of ' the ' property within the meaning of 18 & 19 Vict. c. Ill Bowen, L. J., (m) See the question discussed, infra, («) 10 A. 0. at p. 95. SB. 497-499. (») L- R-. 3 P. 0. 594. 76 THE CONTRACT. Sect. 66. -who agreed "witli Eield, J., in thiaking that this was not a mort- gage but only a pledge, did not express any opinion as to what would have been the law if it had been a mortgage. I belioTe all the noble and learned lords who heard the argument are agreed with him in thinking that in this ease it was only a pledge. I do not, therefore, intend to express a final decision that an assignee of a bill of lading by way of mortgage is not as such liable to be sued under 18 & 19 Yict. c. Ill ; but only to guard against its being supposed that, even if Brett, M. R., and Baggallay, L. J., were right in holding this a mortgage, I, as at present advised, should agree in their conclusion that the defendants could be sued." And Lord Selborne's language indicated a similar doubt. He said {p) : " The statute contemplates the passing of ' the property in the goods,' by the indorsement of the bill of lading, as a thing which may, or may not, happen, according to the nature and intent of the contract or dealing for the purpose of which that indorsemeut is made ; and it seems to provide for those cases only in which the property so passes as to make it just and convenient that aU rights of suit under the contract contained in the bill of lading should be ' transferred to ' the indorsee, and should iiot any longer ' continue in the original shipper or owner.' One test of the application of the statute may perhaps be, whether, according to the true intent and operation of the contract between the shipper and the indorsee, the shipper still retains any such proprietary right in the goods as to make it just and reasonable that he should also retain rights of suit (the word is suit, not action) against the shipowner, under the contract contained in the bill of lading. If he does, the statute can hardly be intended to take from him those rights, and transfer them to the indorsee. If they are not trans- ferred to the indorsee, neither is the indorsee subjected to the shipper's liabilities. It is very difficult to conceive that when the goods are still in transitu, when the substance of the contract is not sale and purchase, but borrowing and lending, and when the indorsement and deposit of the bill of lading is only by way of security for a loan, it can be the intention of either party thereby without more, to divest the shipper of all proprietary right to the goods, and to take from him and transfer to the indorsee all rights of suit under the contract with the shipowner. That some pro- prietary right (his original right, subject only to the creditor's Oj) 10 A. 0. at pp. 84—86. CAEEIAGI2 IN A GENERAL SHIP. '^7 security) remains in him is indisputable. If that proposition Sect.ee. needed illustration from authority, it would be found in the cases of Re Westzinthus (q), Spalding v. Euding (r), Kemp v. FaUi («). Can it be that he is by the statute deprived of all remedies, legal and equitable, under the bill of lading, as long as it remains in the hands of the secured creditor ? The creditor, in the ordinary course of things, will do nothing until the time for payment or delivery of the goods arrives. Can it then be material whether the proprietary right, thus remaining in the shipper while the goods are in transitu, is legal or equitable ? ^^he statute relates to a subject of general mercantile law, in which not Englishmen only but foreigners also may be, and often are, concerned. Foreign as well as British indorsements of bills of lading by way of security for advances (which may be made abroad, perhaps in countries not governed by English laws) are liable to be afEected by it, whenever recourse must be had to British Courts. It seems to me to be inconceivable that the construction of the words ' the property in the goods,' in such a statute, can have been intended to depend upon any such technical distinction as that made in English law (but by no means in the laws of all other countries in which the customs of merchants prevail) between legal and equitable titles. It is to be observed, further, that the statute contemplates beneficium cum onere, and not onus sine heneficio. It may be reason- able, if the indorsee has the benefit (as he would if he were a purchaser out and out, or if under his title as indorsee of the biU of lading he obtained delivery of the goods to himself), that he should take it with its corresponding burden, quoad the shipowner. But it would be the reverse of reasonable to impose upon him such a burden when he has neither entered into any contract of which it might be the natural result, nor (having taken a mere security) has obtained any benefit from it. This observation is fortified by the fact that the statute does not appear to distinguish between indorsements subsequent, and those anterior, to its enactment." On the other hand. Lord Selbome expressed the view that an Does delivery indorsee who is not entitled to the benefit of the contract, in the aitS m"^^ first instance, may become so by obtaining possession of the goods position ? under the bill of lading. " The authorities decided upon the statute itself appear to me to be most easily reconciled with its apparent objects, and with each other, by a view which, if hardly (?) 5 B. & Ad. 817r (r) 6 Bear. 376. (») 7 App. Gas. 573. 78 THE CONTEACT. Sect. 66. consistent "with expressions to be found in some otlier cases, nevertheless seems to me to have a real and substantial foundation in reason and good sense; viz., that the indorsee by way of security, though not having 'the property' passed to him absolutely and for all purposes by the mere indorsement and delivery of the biU of lading while the goods are at sea, has a title by means of which he is enabled to take the position of full proprietor upon himself, with its corresponding burdens, if he thinks fit ; and that he actually does so between himself and the shipowner, if and when he claims and takes delivery of the goods by virtue of that title" (t). Property 66a. Further, the property must pass " upon or by reason of " with till of the consignment, or indorsement of the bill of lading, in order to ^ ^' transfer the rights of suit. Hence, in Delaurier v. Wyllie (m), it was held by the Scotch Court of Session, that where the goods had belonged to the indorsee of the bill of lading before they were shipped, no right to sue for them on the bill of lading contract was given to him by the indorsement. Certain iron had there been shipped by a person through whom (as agent) the pursuers had bought it, in a vessel chartered by the shipper to carry other goods which he himself was selling to the pursuers. The bill of lading for the iron was indorsed by the shipper to the pursuers. It contained no exception of negligence ; but the charter did. The iron was lost owing to negligent naviga- tion. It was held that no claim on contract could be made against the shipowners except under the charter-party, on the ground above stated. In another recent Scotch case (x) it was held that holders of delivery orders, given by the indorsee of the bill of lading, could not sue the shipowner for non-delivery of the goods ; though the bill of lading was in the hands of the master, indorsed by the indorsee, with a request for delivery against his delivery orders. The indorsement must take place while the bill of lading is still in force as a document of title, that is, generally, before delivery of the goods (y). But where deKvery has been improperly made to one who did not hold the bill of lading, a subsequent indorsement may still transfer the rights under the contract (s). (i!) Sewellj). Burdiok, 10 A. 0. atp. 86. {y) See infra, a. 501. («) 27 So. L. E. 148 (1889). (z) Pirie v. Warden^ 8 So. L. E. 360. {x) CuDmngham v. authrie, 26 So. L. Cf . Bristol, &o. Bank v. Midland RaU. K- 208. Co., (1891) 2 Q. B. 662. CAERIAGE IN A GENERAL SHIP. 79 67. It must be remembered that the owner of goods has the Sect. 67. right, apart altogether from contract, to claim compensation from Eight of any person who wrongfully injures his goods, or deprives him of l^^^^° ™® them. Thus, an owner of cargo may have a right to sue the ship- owner, although not the holder of the bill of lading ; for example, for improperly stowing the goods in contact with others injurious to them (a), or for delivering them to some person who was not entitled to have them (h). Where goods have been shipped in fraud of their owner, the shipowner cannot claim to detain them as against him ; and, on the other hand, he is discharged of his contract by a delivery to the true owner (c). Where, however, goods have been shipped with the consent of the owner, though not under contract with him, he will not be in a position to claim against the shipowner for the consequences of a tortious act, if the shipowner is exempted from liability for such acts by the contract with the shipper. Thus, in' Delaurier i). Wyllie {d), the shipowners were not liable to the owners of the iron in tort, for negligently destroying it, as the goods were on board with their consent under a charter which excepted negligence. 68. The shipowner becomes responsible as a carrier for all goods Shipowner which have been delivered to him, or to his authorized servants, responsible ou for the purpose of being carried. It is not necessary that they ^^^^^ *° ^ should have actually got on board. Thus, delivery to the mate on goods not on . .... board, the quay, alongside which the vessel is lying, is sufficient (e). And if the goods have to be taken to the ship in lighters, and that is done by the shipowner, he becomes responsible, in the absence of express stipulation or custom to the contrary, from the time of taking delivery for the purpose of lightering them. In each case, the question is, had the goods been delivered into the shipowner's custody for the purpose of being carried ? The usual course, when a vessel is lying alongside a quay, (a) Hayn v. Culliford, i 0. P. D. 182. (<;) 27 So. L. E. 148, cited supm, And see Marshall D. York, &c.Eail. Co., g. 66a. See also Alexander v. Mal- 21 L. J., C. P. 34 ; Martin ». Great Ind. oolmson, Ir. Eep., 2 Oh. 621 ; Wyld v. Pen. EaH. Co., L. E., 3 Ex. 9. Pickford, 8 M. & W. 443. (4) Schuster v. McKellar, 26 L. J., Q. B 281. W British Columbia Saw Mill Co. ■:). (e) Einlay n. Liverpool and Great Nettleship, L. E., 3 C. P. 499 ; Cobban ■Western Steamship Co., 23 L. T. 251 ; ^- Downe, 6 Esp. 41 ; Fraganov. Long, Sheridan v. New Quay Co., 28 L. J., * B. & 0. 219. Cf. Thormam;. Burt, 54 C p gg L. T. 349. Infra, s. 25U 80- THE CONTRACT. Sect. 613. appears to be for the shipper to place the goods on the quay, and to take a receipt there from the mate or person in charge of the ship ; and for the ship to do the work, and bear the expense of putting the goods on board. The person to whom the goods are delivered must be a servant or agent of the shipowner authorized to receive the goods. Thus, delivery to a deck hand of a steamboat not employed to receive goods is not sufficient (/). And the delivery must be under a contract made, or intended to be made, with the shipowner. He is not responsible for goods deKvered to the master, to be carried under a private arrangement with him, whether he was privileged to carry on his own account or not {g). Effect of 69. A description of the goods shipped is generally given in the and statement ^^ 0^ lading ; with a statement of the number of packages, or of good^^ b^°* *^® quantity when the shipment is in bulk. This description and of lading. statement of quantity are evidence against the shipowner that goods of that kind and amount have been shipped. But they are not conclusive. He may show that they are incorrect, whether the claim be by consignees on whose account the shipment was made {h), or by iudorsees of the bill of lading ; although they may have given full value for the goods, as there described, without knowledge of the error («). And this does not depend upon words of reservation, such as "weight and contents unknown," being inserted in the bill of lading (A;). Though whether such words appear or not, the onus of falsifying the statement in the biU of lading is upon the shipowner {I). {/) Trowbridge v. Chaplin, 23 Conn. Brown v. Powell Coal Co., L. E., 10 595 ; Cobban v. Downe, 5 Esp. 41. C. P. 562 ; Thorman v. Burt, bi L. T. {g) AngeU, Carr. s. 146. In Suarez ^^^ ' ^^^^ "■ Wingate, 3 AUen, 103 V. Washington, 1 Woods, C. C. 96, the (^ass.). shipowner was held not liable for goods W ^™°* "■ Norway, 20 L. J., C. P. • deKvered to the purser, who gave a bill ^^ ^ ^™"^ *• ^°^ell Coal Co., L. E., of lading for them without authority. •^'' ^- ^- ^^'^• [T) Per Lord Chelmsford, McLean v. (h) Berkeley v. WatUng, 7 A. & E. pieming, L. E., 2 H. L., Sc. 128, p. 29; Bates v. Todd, 1 Moo. & E. 106. 130 ; and see Bradley v. Dunipace, 31 So as to the quantity stated in the mate's l_ j j;^ 210' 32 L J Ex 22 receipt: Biddulph ». Bingham, 30 L. T. gee Smith '». Bedouin S. Nav-'co.] 30. (1896) A. C. 70, and Harrowing v. Katz, 10 T effect of ei McLean v. Hlemjng, 2 H. L., So. 128 ; of lading. (4) Grant v. Norway, 20 L. J., C. P. Katz, 10 T. L. E. 115, 400, as to the 93 ; Jeasel v. Bath, L. E., 2 Ex. 267 ; effect of evidence to contradict the bill CAEKIAGE IN A GENERAL SHIP. 81 In Grant v. Norway {m), a bill of lading liad been signed by Sect. 69. the master for twelve bales of silk, none of wbich had ever been shipped ; it was held that transferees of the bill of lading, ;ivho had given value for it on the faith of the representation contained in it, had no claim against the shipowners. For the master had no authority to give a bUl of lading for goods which had not been shipped. " It is not contended that the captain had any real authority to sign biUs of lading, unless the goods had been shipped. Nor can we discover any ground upon which a party taking a bill of lading by indorsement would be justified in assuming that he had authority to sign such bills, whether the goods were on board or not. If, then, from the usage of trade and the general practice of ship- masters, it is generally known that the master derives no such authority from his position as master, the case may be considered as if the party taking the bill of lading had notice of express limi- tation of the authority, and iu that case, undoubtedly, he could not claim to bind the owner by a bUl of lading signed when the goods therein were never shipped. ****** " The general usage gives notice to all people that the authority of the captain to give biUs of lading is limited to such goods as have been put on board, and a party taking a bill of lading either originally or by indorsement, for goods which have never been put on board, is bound to show some particular authority given to the master to sign it " (n). So in Hubbersty v. Ward (o) it was said, " When a captain has signed bills of lading for a cargo that is actually on board his vessel, his power is exhausted ; he has no right or power, by signing other biUs of lading for goods that are not on board, to charge his owner." There the captain had been induced by fraud to give bills of lading for part of the cargo twice over, and delivery had been (m) 20 L. J., 0. p. 93. Cf. Coleman ment in the bill of lading conclusive V. Eiohes, 24 L. J., C. P. 125 ; The evidence, it has been held, in Scotland, EmiHen Marie, 32 L. T. 435. *^** *^^ shipowner is not bound by it. Denholm v. Halmoe, 25 So. L. B. 112, («) Per Jervis, C. J., delivering the cited infra, s. 206. considered judgment of the Court, 20 (o) 22 L. J., Ex. at p. 116. Of. L. J., 0. P. at p. 98. Even where the Coventry v. G. E. Rail. Co., 11 Q. B. T>. law of the flag would make the state- 776. C. — C. G 82 THE CONTRACT. Sect. 69. given under those obtained fraudulently. It was held that the shipowner was liable for the value of the goods to the holders of the original bills of lading. In Thorman v. Burt {p), bills of lading had been given by the captain's agent for a quantity of timber, of which part had not been put on board, having been lost from the rafts while alongside the ship. It was held that the statements in the bills of lading were not binding upon the shipowners, although the whole of the timber had been brought alongside and delivered to the ship, and the mate's receipts had been given to the shippers for the whole quantity after it had been brought alongside. EfiEeot of 69a. Again, the master does not generally bind the shipowners to quality. by a description in the bill of lading of the quality of the goods. In Cox V. Bruce {q), a biU of lading had been signed by the captain for 500 bales of jute, which were described in the bill of lading as marked in a certain manner with known marks, which indicated their quality. It turned out that the marks as stated in the biU of lading were not accurate, and the plaintiffs, who were indorsees for value, without notice of the error, claimed from the shipowners the difference in value between the goods described and those in fact shipped and delivered. They contended that the shipowners were estopped from denying the truth of the represen- tation made. But the Court of Appeal, affirming the Queen's Bench Division, dismissed the claim. Lord Esher said: " That the captain has authority to bind his owners with regard to the weight, condition, and value of the goods under certain circumstances may be true ; but it appears to me to be absurd to contend that persons are entitled to assume that he has authority, though his owners really gave him no such authority, to estimate and determine and state on the bill of lading, so as to bind his owners, the particular mercantile quality of the goods before they^ are put on board, as, for instance, that they are goods containing such and such a percentage of good or bad material, or of such and such a season's growth. To ascertain such matters is obviously quite outside the scope of the functions and capacities of a shijj's captain, and of the contract of carriage with which he has to do. It was said that he ought to see that the quality marks were not incorrectly inserted in the bill of lading. [p] 54 L. T. 349. See this case, stated atipra, s. 63a. (q) 18 Q. B. D. 147. CARRIAGE IN A GENERAL SHIP. 83 But, apart from the special terms of the contract with regard to Sect. 69a. the quaKty marks, -with which I have already dealt, I do not think it was his duty to put in these quality marks at all ; aE he had to do was to insert the leading marks. There is nothing in the case to show that, irrespective of the particular contract, the quality marks had by the custom of the trade become a recognized part of the marks which it was his duty to insert " (r).. The bill of lading in that case contained the following clause : — " If quality marks are used they are to be of the same size as the leading marks, and contiguous thereto, and if such quality marks are inserted in the shipping notes, and the goods are accepted by the mate, bills of lading in conformity therewith shall be signed by the captain, and the ship shall be responsible for the correct delivery of the goods." It was held that " such quality marks " meant the marks on the bales themselves, and that, as those marks had not been correctly inserted in the shipper's shipping notes, the clause did not apply to bind the shipowner. 69b. Sometimes it is agreed that the statement of quantity in the Where quau- bill of lading shall be conclusive, and, if so, the shipowner is bound be conolusiTe. by it, unless he can show fraud, although the goods may not have been shipped, and though the master, in giving the bill of lading, may have made a mistake as to the owner's obligations. InLishman v. Christie («), a ship was chartered to carry a cargo of timber from Memel. The charter party provided that the cargo should be brought alongside at the charterer's risk, and also that the bills of lading should be " conclusive evidence against the owners of the quantity of cargo received as stated therein." The captain signed bills of lading for the whole quantity of timber sent to the ship from the timber-ponds up the river, although it was known that some of it had been lost on the way down. He did this on the demand of the shippers' agent, and under the mistaken impression that he was bound by the custom of the port to give (r) As against an indorsee for value within the scope of his authority. See of a bill of lading, which stated that the Parsons, Shipping, 190. It was held in goods were marked " Calcutta," it was Grieve v. Konig, 17 So. L. E. 325, that held in Bengal, on the authority of shipowners are not answerable in dam- Howard V. Tucker, 1 B. & Ad. 712, ages for the unauthorized act of the that the shipowner was estopped from master in ante-dating a bUl of lading, denying that they were so marked : As to the master's duty in this respect, Madhub Chunder Dey v. Law, 13 Ben. see Stumore v. Breen, 12 A. C. 698. L. E. 394. Statements of that kind made by the master appear to be clearly ^ ' H- ■ ■ g2 84 THE CONTEACT. Sect. 69b. clean bills of lading for the whole, after noting his protest against the loss. It was held hy the Court of Appeal that the statements in the bills of lading were conclusive upon the shipowners as to the quantity shipped, and that they were responsible to the charterers for the deficiency {t). Where by the charter party the bill of lading was to be con- elusive evidence of the quantity shipped, and a bill of lading was given for a certain number of pieces with a marginal note that some had been lost before put on board, it was held that the biU of lading did not preclude the shipowners from showing that some of the number stated were not shipped (m). T*^^ °* 70. Though the ovmers are, generally, not conclusively bound by s. 3. ' the bill of lading statement of the quantity of goods shipped, the same is not true of the person who has signed the biU of lading. By the Bills of Lading Act, 1855 (18 & 19 Vict. c. Ill), s. 3, " Every bill of lading in the hands of a consignee or indorsee for valuable consideration, representing goods to have been shipped on board a vessel, shall be conclusive evidence of such shipment as against the master or other person signing the same, notwithstand- ing that such goods, or some part thereof, may not have been so shipped, unless such holder of the bill of lading shall have had actual notice at the time of receiving the same that the goods had not been in fact laden on board : provided that the master or other person so signing may exonerate himself in respect of such mis- representations by showing that it was caused without any default on his part, and wholly by the fraud of the shipper («>), or of the holder, or some person under whom the holder claims." This section prevents the person who has actually signed a bill of lading, or the person in whose name and with whose authority it has been signed {w), from disputing its accuracy, in material points \ww), in any proceeding between a consignee or indorsee for value and himself, unless he can bring himseK within the proviso. It does not bind the shipowner when the biU of lading has been signed by his agents in their own names {w). {t) See also Fisher v. Oalder, 1 Com. Coal Co., L. E., 10 C. P. at p. 568. Ca. 466. Of. Pyman v. Burt, 1 Cab. & [ww] Parsons ». New Zealand Shipping Ell. 207. Co., 5 Com. Ca. 179. (m) LoMeu». Calder, 14 T. L. R. 311. [x) Jessel v. Bath, L. E., 2 Ex. 267 ; (o) See VaUeri v. Boyland, L. E., 1 Brown v. Powell Coal Co., L. K., 10 C- !"■ 382. 0. P. 562 ; Thorman v. Burt, 54 L. T, (w) Per Brett, J., Brown v. Powell 349. CAERIAGE IN A GENERAL SHIP. 85 In Bknohet z>. Powells Llantivit OolHeries Co. (y), the master of Sect. 70. a vessel sued for a lump freight, made payable by a bill of lading, signed by the master in respect of goods which were described in the bUl of lading as weighing 256,782 kilos. The defence was that a smaller weight only was carried and delivered. To which it was replied that the whole of the goods described in the biU of lading had been delivered, and that the weight stated was a mistake. It was contended, on demurrers, but without success, that the Bills of Lading Act precluded the master from alleging that the weight stated was incorrect. Bramwell, B., said : " In an action against him for non-delivery he might be estopped, but not in such an action as this." And Cleasby, B., went further : " Now, if the bill had acknowledged the receipt of certain specific things — a certain number of horses, for instance — it might be that the plaintiff could not be heard to say that a different number was shipped in fact. But that cannot be said of a mere statement of weight, which may, and often does, vary during the transit ; and I do not see any estoppel, therefore, to prevent the plaintiff from saying that the measurement was wrong, it not being suggested that a wrong weight was inserted fraudidently in order to enhance the lump freight recoverable." Where an action for freight was brought by a master, who was also a part owner of the ship, and a deduction was claimed by the bill of lading holder for short delivery of the goods specified in the bill of lading, there was a division of opinion among the judges of the Court of Common Pleas as to whether the section applied (s). It seems that a consignee or indorsee who has given value for the bill of lading is entitled to the protection of the section, even though the mistake in the biQ of lading was the result of careless- ness or omission on the part of his own agents (s). 71. Usually the bill of lading contains the words " weight, con- "WeigW, &o. tents, and value unknown," or a clause to that effect, although the °^^' weights and description of the goods may also be set out in the document. Where that is the case these statements of weight and description must be taken as having been made by the shipper, and not verified by the person who gave the bill of lading (a). (y) L. R., 9 Ex. 74. But see per Lord Chelmsford ia MoLeam (a) Meyer v. Dresser, 33 L. J., C. P. v. Flemmg, L. E., 2 H. L., So. 128, at 289. Of. The Emilien Marie, 32 L. T. p. 130. Of. Parsons v. New Zealand 435. Shipping Co., 5 Com. Oa. 179, as to {a) Vessel V. Bath, L, R,, 2 Ex. 267. incorrect marks, 86 THE CONTRACT. Sect. 71. In Jessel v. Bath (b), the Court considered tliat tlie clause " weight, contents and value unknown," was not inconsistent with a statement of the weight of mineral shipped in hulk, and that it would have protected the person who signed the bill of lading from liability for short weight. But in Bradley v. Dunipace (c), the words " contents unknown, and not responsible for weight," did not protect the master who had signed for "467 bags of rye meal, or bran, gross 35 tons 9 cwt., iinder the subjoined marks;" the fact being that bags of two sizes with the same marks had been shipped, and the bags delivered to the holder of this bUl of lading were too many of them of the smaller size to make up the gross weight of 35 tons 9 cwt. Shipper may 72. Where the clause "weight, &c. unknown " occurs, the shipper 010086? ^ is entitled to the benefit of it, as well as the shipowner. Upon shippiag a case of silk broadstuffs a shipper, by mistake, described the goods in the bill of lading as linen goods. The master before signing stamped on the bill of lading the words " weight, value and contents unknown." Had the goods been properly described the rate of freight to be paid would have been higher than was in fact agreed. Some of the silks were abstracted from the case before delivery. It was held that the misdescription did not prevent the shipper from recovering for the loss from the shipowner ; the effect of the memorandum was to make the contract one for the carriage, not of linen goods, but of the case and its contents, whatever they might be {d). A doubt was expressed whether the shipper could recover more damages than if the parcel had contained linen, on the ground that he had precluded himself from saying that they were anything else ; but the point was not decided. Another question discussed was, whether there would have been any contract, had the memorandum not been inserted ? Gb"Ove, J., thought that where a party entering into a contract "for carriage of goods, even without fraud, describes the goods to be carried as goods of a certaiQ character, the contract is to carry goods of that character, and not of another character" (e). But Brett, J., said that " stiU there would have been a delivery (i) L. E., 2 Ex. 267. {0) Lebeauj). General Steam Nay. Co., W 31 L. J., Ex. 210 ; 32 L. J., Ex. L. E 8 C P 88 22. Cf. The EmiHen Marie, 32 L. T. 435. {ej L. E., 8 C. P. at pp. 97, 98. CAEEIAGE IN A GENERAL SHIP. 87 of the goods shipped to the defendants, and an acceptance of such Sect. 73. goods to be carried for reward. What, then, would have heen the effect of the statement ia the bill of lading that the goods were linen goods ? It is not necessary to decide the point, and I do not decide it, but I am inclined to think that the misrepresentation would not avoid the contract " (/). It seems necessary to adopt the view that there is a contract of some sort, where the carriage of the goods has been actually under- taken. Had there been only an executory contract, had the goods been still on the quay at the place of shipment when the mistake was discovered, the shipowner might have put an end to the con- tract, as having been founded on a mutual mistake. But having actually entered upon a performance of the intended contract, by dealing with the subject-matter in fact contemplated by it, though not rightly described in it, that contract seems to be the only one that can determine the rights of the parties. Even if the shipper had been guilty of fraud, it would not be competent for the ship- owner to put an end to the contract, unless he could restore the shipper to his origiual position. Though he would not in that case, it seems, be liable ia damages for a loss of the goods {g). 73. The general statement in the bill of lading that the goods "Good order have been shipped "in good order and condition," amounts to an tion." admission by the shipowner that, so far as he and his agents had the opportunity of judging, the goods were so shipped {h). But it has been held that the admission is not conclusive ; even in favour of indorsees ; and although the master knew, or ought to have known, of the defective state of the goods when he signed the bill of lading (i). It was considered that the claim of the indorsees was subject to the defence which the shipowners would have had against the shipper {k) . In The Ida {I), the Privy Council held, confirming Sir E. PhilH- Onus of proof more upon the point, that the addition of the clause "quantity "quantity and quality unknown " prevented the ordinary words " in good ^^^„^ order," &c. from operating as an admission by the shipowner that the cargo was in good order when shipped. The cargo was of (/) At p. 95. And see per Bovill, Asp. N. S. 195. 0. J., at p. 94. [i) Craig v. Delargy, 16 So. L. E. 751. (y) See infra, s. 729. (A) But of. the cases cited siipra, s. 63. (A) The Freedom, L. R., 3 P. C. 594 ; (/) 32 L. T. 541. See also The The Peter der Grosse, 1 P. D. 414 ; 3 Prosperino Palasso, 29 L. T. 622. 88 THE CONTRACT. Sect. 73. cotton seed, and had heated badly on the voyage. The shipowner contended that this was owing to its green condition when shipped. The Court held that the plaintiff was bound to make out a prirnd facie case ; either by showing that the seed was in good condition when shipped, or that the damage could be traced to some default of the shipowner (m). But in the later case of The Peter der Grosse («), it was held by Sir E. Phillimore, and by the Court of Appeal, that the clause " weight, contents and value unknown," did not destroy the effect of the words " in good order, &c.," as an admission that the goods (bales of feathers) were in good order externally. James, L. J., said (o) : " The bill of lading, taken together, must be considered to admit that the goods when shipped were, as far as they could be seen, in g9od order ; and by adding the words above quoted, the master does no more than say that he does not admit anything as to the contents of the packages, which he cannot see. He does admit, however, that the goods appear to be in good condition outside, and this throws upon the appellants the onus of proving that the damage did not arise whilst the goods were on board the ship or in their custody, or that it comes within the exceptions of the bills of lading." Subject to the 74. The contract of the shipowner in the bill of lading is, that exoeptidns tlie ^e Will, subject to the excepted perils, which we shall presently deHver^safely - Delargy, 16 So. L. R. 751 ; Williams {m) The Rona, 61 L. T. 28, p. 32 ; v. Bobbie, 21 So. L. R. 336 ; Horsley The Alexandra, 14 L. T. 742 ; Adam v. v. Baxter, 20 Sess. Ca. (4th) 333. Cf . • Morris, 18 Sess. Ca. (4th) 153. Cf. per Ld. HerscheU in The Xantho, 12 Muddle w. Stride, 9 0. & P. 380. A. C. 503, p. 512. («) The Glendairooh, (1894) P. 226 ; (o) Si^ra, ss. 17—21. 94 THE CONTRACT. Sect. 79. exceptions in the bill of lading, unless that is clearly stipu- lated (^). In TattersaU v. National Steamship Oo. {q), cattle had been shipped under a bill of lading, by which it was provided that the defendants were to be " in no way responsible for either their escape from the steamer, or for accidents, disease, or mortality, and that under no circumstances shall they be held liable for more than 5/. for each of the animals." The ship had not been pro- perly cleansed before the cattle were received on board, and in consequence they were affected by foot-and-mouth disease. It was held that the liability of the defendants was not limited by the clause to 51. for each of the cattle. For the stipulations of the bin of lading related, to the carriage of the goods on the voyage, and did not affect the liability to provide a ship fit for the reception of the cattle. In Seville Sulphur Oo. ■y. Oolvils (r), the exception was of " negligence of navigation of whatsoever nature and kiud during said voyage." The damage was found to be the result of taking muddy water into the boilers before sailing, whicb, ia the judgment of the Court, rendered the vessel unseaworthy ; and it was treated as clear that this made the shipowners liable, whether the taking in water was an act of " navigation " or not (s). In Thin v. Eichards (?!), the ship "being tight, &c.," was to proceed to Oran, and load a part cargo of esparto grass (having liberty to fill up with ore) for Grarston ; " any act, neglect or default whatever of pilot, master or crew in the management or navigation of the ship " excepted. After loading esparto at Oran the ship went to Huelva, and filled up with ore. She left Oran without a sufficient supply of coal for the voyage to Garston ; and if) Steel V. State Line SteamsHp Co., beenlield toexouseliaWlityfordamageby 3 A. C. 72 ; Leuw v. Dudgeon, L. R., rats eating the cargo if reasonable care 3 C. P.,p. 17, n. ; The Glenfmin, 10 was taken to keep the ship free of them. P. D. 103 ; Gih-oy v. Price, (1893) The Timor, 67 Fed. Rep. 356 (1896). A. C. 56 ; Cargo per Maori King v. Cf. Stevens v. Nav. Gen. ItaUana, 39 Hughes, (1895) 2 Q. B. 660. The Fed. Rep. 662. ■warranty may be qualified or got rid of, (»•) 25 So. L. R. 437. by apt -ffords, e.g., "warranted sea- (s) See per Lord Young. And see also worthy only so far as ordinary care can Cunningham v. Colvils, 26 So. L. R. provide; " Cargo ex Laertes, 12 P. D. 249. ^*^- (0 Thin V. Richards, (1892) 2 Q. B. (?) 12 Q. B. D. 297. On the other 141; so also The Vortigem, (1899) P. hand, an exception of "vermin" has 140. CARRIAGE IN A GENERAL SHIP. 95 at Huelva, owing to a mistake of the engineer, she took in no Sect. 79. further coal. She was ultimately lost owing to want of coal. Held, hy the Court of Appeal, that the owners were liable for the loss of the esparto. Notwithstanding the exception, they were liahle for not having had the ship properly equipped for the voyage, either at Oran or at Huelva. In the United States it has heen held, hy a majority of the Supreme Court, that the shipowner is liable for a loss due to a latent defect in the propeller shaft, notwithstanding an exception of " loss or damage from .... machinery or defects therein " ; the defect being such that the ship was unseaworthy when she sailed (m). So, also, where the exception was of "latent defects in hull, tackle, &c." {x) . On the other hand, in The Carron Park («/), an exception of negligence " dioring the voyage " was held to relieve the ship- owner from liability for an act of negligence committed during the loading, by which water was admitted into the ship, and the cargo then on board was damaged. The ship had not been unfit for the goods when they were put on board. 80. Again, the shipowner's obligation to contribute to general Nor liability average sacrifices of the cargo, made during the voyage, will con- in general tinue, notwithstanding general words in the bill of lading which ''^®'^*^®- may seem wide enough to exclude that liability. If the liability is not to exist, that must be stipulated in express terms. Where a sacrifice was made in consequence of a fire which occurred on board, and the bill of lading excepted fire on board and any con- sequences of it, it was held that that did not relieve the owner from contribution (s). So, where a bill of lading provided that the shipowner was "not to be liable for any damage to any goods which is capable of being covered by insurance," Lush, J., following the former case, held that this did not excuse him from contributing to a general average sacrifice of the goods. He said, " I adopt the words which I used in that case, and repeat that the office of the bill of lading is to provide for the rights and liabilities of the parties in reference to the contract to carry, and is not concerned with liabilities to con- («) The Caledonia, 157 U. S. 124. (y) 15 P. D. 203 ; of. The Accomao, As to the efieot of the Harter Act, 1893, 15 P. D. 208. see^os*, s. 103 (a). («) Schmidt ii. Royal Mail Steamship (») The Carib Prince, 170 TJ. S. 666. Co., 45 L. J., Q. B. 646. 96 THE CONTRACT. Sect. 80. "Actof Gbd and Queen's enemies." "Restraints of prmoes, &e." tribution in general average, and, unless the contrary appears, the ■words used must he so construed " (a). A similar point was decided in Burton v. English (5). A char- ter party had provided that the vessel should be " provided with a deck load, if required, at full freight, but at merchant's risk." A deck load had been taken, and had been properly jettisoned to save the rest of the adventure. The Court of Appeal, reversing Cave, J., decided that the shipowner was nOt protected by the words " at merchant's risk " from Kability to contribute to the general average. 81. The exception " act of God " is that which has already been dealt with as a limitation, at common law, of the carrier's liability, where no express contract has been made. " The Queen's enemies " is also an exception at common law ; and its effect, when expressed, does not appear to be any wider ; except, perhaps, in the case of a foreign ship, when the clause will be read to include the sovereign of the master who has made the contract. In Eussell v. Niemann (c) the ship and her owners belonged to Mecklenburg, as also did the master who gave the bill of lading : the goods were shipped in Russia, and were to be carried to Eng- land. The Court held that the exception " King's enemies " in- cluded at least the enemies of the sovereign of the person who made the stipulation {d). 82. " Restraints of priaces, rulers, and peoples " covers any forcible interference with the voyage or adventure at the hands of the constituted government, or ruling power of any country (e), whether done by it as an enemy of the state to which the ship belongs, or not. For example, orders of government prohibiting or restricting the exportation or landing of goods; quarantine regulations (/) ; embargoes, or restrictions on particular ships ; blockades; confiscations of goods as contraband, and so forth. And the restraint may have been by acts which were not directed (a) Crooks ». Allan, 5 Q. B. D. 38. So as to an exception of "Jettison," Tlie AlUanoe, 64 Fed. Rep. 871 (1894). (*) 10 Q. B. D. 426 ; 12 ib. 218. (c) 34 L. J., C. P. 10. {d) And see The Teutonia, L. R., 4 P. C. 171 ; The Heinrich, L. R., 3 A. & E. 424. («) Nesbitt V. Lushington, 4 T. R. 783. As to restraint by the GoTemment of the shipowner's country, see Aubert V. Gray, 32 L. J., Q. B. 60. (/) The Progreso, 60 Fed. Rep. 835 (1892). CARRIAGE IN A GENERAL SHIP. 97 against the ship or goods ; th^ may have been affected in- Sect. 82. directly (g). But when goods have been taken from the ship under process of the tribunals of the port, at the instance of one ■who claims to be entitled to them, that is not an act of government within the exception (A). So the exception does not cover the shipowner's liability to shippers where the ship is arrested at the suit, say, of charterers («). " Restraints of princes and rulers means the act of a state or government interfering with a strong hand, and not the judgment of any judicial Court" {k). It was said by Lord EUenborough, in Atkinson v. Eitchie (l), that " the restraint meant must be an actual and operative restraint, and not a merely expected and contingent one." So that the ex- ception did not exonerate a shipowner who had sailed away from a foreign port, without taking an agreed cargo, in fear that an embargo was about to be laid on British vessels there. The vessel might have been loaded, for the embargo was in fact not laid until six weeks later. But where a blockade by the French actually existed at Hamburg, the place to which the cargo was to be carried, this exception excused the shipowner's refusal to take it on board (m). The exception does not protect the owner when the master has acted unskilfully, or imprudently, or with an unreasonable degree of apprehension. But it is not limited to restraints actually exerted by force. The master is entitled, and bound, to use caution in avoiding the risk of actual seizure ; and deviations and delays on the voyage prudently made with that object are excused by the clause (w). In Nobel's Explosives Co. v. Jenkins (o), a neutral ship was carrying contraband of war to Japan when war broke out between Japan and China. The master landed the contraband at Hong Kong, and proceeded with the rest of the cargo. Had he not done so the ship would probably have been stopped and searched, {g) See Eodooonachi v. EUiott, L. E., (2) 10 East, at p. S34 ; of. The San 9 0. P. 518. Roman, L. E., 5 P. 0. 301 ; The (h) Einlay v. Liverpool & Gt. "W. Teutonia, L. E., i P. 0. 171 ; Brunner Steamship Co., 23 L. T. 251 ; Crew v. v. Webster, 5 Com. Ca. 167. Gt. W. Steamship Co., 4 Times L. E. (m) Geipelf). Smith, L. E., 7 Q. B.404. 148. («) The San Eoman, L. E. 5 P. C- (i) The Coventina, 62 Fed. Eep. 156. 301 ; The Teutonia, L. E., 4 P. C. 171. (A) Per Martin, B., 23 L. T., p. 254. (o) (1896) 2 Q. B. 326. C. — C. H 98 THE CONTRACT. Sect. 82. and the contraband confiscated ; and it was uncertain what the captors would have done with the ship and the other cargo. Mathew, J., held that the delivery in Japan was prevented by- restraints of princes. " Fire." 83. The exception of " fire " is given by statute in the case of sea-going ships (p). But the express exception may be somewhat more extensive than the statutory. For the latter includes only cases of fire happening on board the ship, to goods which have been put on board ; it does not, for example, cover a fire on a lighter in which goods have been put by the shipowner for the purpose of landing them (q). Whereas the express exception appears to cover all cases of fire which happen while the goods remain in the hands of the shipowner under the contract (r). On the other hand, the statutory exception protects the ship- owner from fire, however caused, if it be without his personal fault or privity. Whereas the express exception leaves him liable for fire occasioned by the negligence of his servants or agents. His responsibility in this respect for goods in his custody before they have been taken on board, and after their discharge, is therefore somewhat different from his responsibility while they are on board. " Dangers of 84. The exception, " dangers and accidents of the seas, rivers, the seas and j • i ■ /• i . navigation." and navigation o± whatsoever nature and kind, covers a group of casualties which it is difficult to define. This longer form of the exception has taken the place of the short clause, " dangers of the seas " or " perils of the sea," formerly used, and still sometimes used in bills of lading (s). It is not clear how far the longer clause has a greater effect, but it extends the area of operation to " rivers " as well as " seas," and to risks of navigation in harbours and docks as well as in the open water {t). {p) M. S. Act, 1894, s. 502; supra, («) This change ia said to have ooonrred ^' ^*' in consequence of alarm taken at the (q) More-wood i>. Pollock, 22 L. J., decision in Smith v. Shepherd, Abhott ^- ^- 250- (5th), 215; (13th), 362. But that decision (»■) Hong Kong, &c. Banking Co. v. does not seem to have been upon the Baker, 7 Bom. H. C. R. 186 ; of. Steel meaning of the exception, -apparently V. State Line Steamship Co., 3 A. C. 72, there was no bill of lading : Abbott (5th), p. 85. As to the extent of the statutory 253 ; (13th), 459. exemption in the U.S., The Strathdon, {t) Laurie' v. Douglas, 15 M. & W. Fed. Kep. 374. 746. See cases infra, s. 91. CAEEIAGE m A GENERAL SHIP. 99 "Perils of the sea" denotes accidents peculiarly incident to Sect. 84. navigating the sea. The words are used in relation to navigation of a ship on the sea, though the accidents contemplated are not all the accidents which may occur during the navigation. They are to be accidents " of the sea " ; that is, arising from the peculiar physical conditions under which navigation upon the sea takes place. Perils of the sea " really are the perils to which people who carry on their business on that dangerous element are liable because they carry on their business on the sea. They are the perils of the sea, not the perils of journeying " (m). Whether the words " dangers and accidents of the ^eas, rivers, and navigation of whatsoever nature and kind " cover, in addition, accidents which may happen incidental to the means by which the navigation is accompKshed, and apart from the elements in which it takes place, has not been determined. Whether, for example, they would cover damage to cargo by the falling of a spar, or by the explosion of a boiler, without any accidental force of wind or incursion of sea water, may be doubtful. But it seems probable that they would (k). Sometimes the expression used is "steam navigation," and that (while really a narrower form) seems to emphasize the point that dangers from the machinery, or means of navigation, are meant to be covered. In The Thrunscoe {'i/) the cargo was damaged by heat from the engines and boilers, which did not pass away as usual owing to the necessity of closing the ventilators during prolonged bad weather. The damage was held to be by " accidents of the seas, rivers, and steam navigation." Partly the exception " perils of the sea " covers the same ground as is covered by " acts of Grod " ; but it is, on the one hand, con- fined to only a limited class of natural causes ; and, on the other hand, as we shall see, it sometimes includes losses which have been in part brought about by acts or neglects of man. In this latter respect, therefore, it is more comprehensive than the exception "acts of God." But to ascertain what losses fall within the exception, we must consider, first, what are the sources from which the loss or damage (a) Per Lord Esher in Pandorf v. of navigation, though not a peril of the Hamilton, 17 Q. B. D. 670, p. 675. sea according to the view which then (a;) See G-arston Co. v. Hickie, 18 prgTailed. Q. B. D. 17, where collision with a negligent ship was held to be a danger (y) (1897) P. 301. h2 100 THE CONTKACT. Sect. 84. must arise ; seooadly, in what degree must the loss or damage ' have been accidental ; and thirdly, how far will the fact that other causes have co-operated with sea perils exclude the loss from the exception. "Perils of the 85. First, then, as to the physical sources from which the loss or The soiiroea damage must arise. of danger. jjj ^bjjott on Shipping (2), it was said that the words "perils of the sea," " certainly denote the natural accidents peculiar to that element, and in more than one instance have been held to extend to an event not attributable to natural causes." And this has been adopted by other authorities (a). But we still must consider what are the sources of danger, and loss, which are regarded as peculiarly incident to the sea, or to navigation upon it. In Smith's Mercantile Law {h), the exception is said to relate to "losses occasioned strictly by sea damage {ex marinm tempestatis discrimine; Emerigon, vol. 1, e. 12, in initio); e.g., by stress of weather, winds, waves, lightning (c) and tempest, rock, sands, &c." In Arnould on Insurance (<^), the words " perils of the sea," in a policy, were said to mean "all kinds of marine casualties, such as shipwreck, foundering, stranding, &c. ; and every species of damage to the ship or goods at sea by the violent and immediate - action of the winds or waves, not comprehended in the ordinary wear and tear of the voyage, or directly referable to the acts and negligence of the assured as its proximate cause " (e). It is clear that the action of the sea itself is one of the causes contemplated. Whether the damage is done by the sea water getting into the ship, and coming directly into contact with the goods ; or, indirectly,- by the waves beating on the ship, and so injuring her as to prevent or delay the voyage, or causing her to roll, or strain, with the result that the goods become displaced and damaged (/) ; these are aU losses by dangers of the sea. [z) (6th), p. 253; (13th), 459. mg from thia. "All losses caused by (o) Story, Bail. s. 512 ; Aug. Oarr. the action of wind and water acting on s. 166 ; The Neptune (Amer.), 16 L. T., the property insured under extraordinary ■N^- S. 36. circumstances, either directly or medi- (*) (8th), p. 348. ately, without the intervention of other (c) But see per Lord Bramwell in independent active external causes, are Hamilton v. Pajidorf, 12 A. 0. 618, losses hy 'perils of the sea, or oliier P- 527. perils and dangers.' " W (3rd), p. 687. (/) The Catharine Chalmers, 32 L. T. («) In Bailey on "Perils of the Sea," 847; The Ville de 1' Orient (Irish), 2 a definition was given somewhat difEer- h. T., N. S. 62. CARRIAGE IN A GENERAL SHIP. The wind, again, is one of the sources of danger contemplated. So are rocks, and shoals, and other natural ohBtacles lying in the sea, or,, as icebergs, floating on it. Losses or delays caused by tempest, or by stranding, or collision with these natural obstacles, are within the exception, whether the sea gets into the ship and so directly damages the goods or not. Loss by foundering owing to collision with another ship is a loss by a "peril of the sea" (g). This was at one time held not to be true where the collision was the result of negligence (h) ; but it has now been settled, by the decision of the House of Lords in the case of The Xantho («), that that view was erroneous. In a case of f oimdering the loss is due to the action of the sea itself, and there are dicta in the judgments in The Xantho (k), and in Hamilton v. Pandorf (/), which perhaps suggest the view that the loss, or damage, to be within the exception, must be due to direct action " of the sea." Probably, however, it was not in- tended there to lay down that damage, or delay, caused (say) by collision with an iceberg, or with another ship, is not by a " peril of the sea " unless there'^has been some incursion of sea water, or accidental action of the waves. The phrase " perils of the sea " seems to be used much as we use the expression " dangers of the streets " ; by which we mean not necessarily dangers arising from the street itself, but dangers which are peculiarly incident to being in or passing along the streets. So that we must take into account not only the waves and waters, but also the storms, the shoals, and coasts, and the other various obstacles, fixed and moving, which form the peculiar vicissitudes of navigating the seas. Loss, or damage, or the pre- vention or delay of a voyage, produced by such causes, may pro- perly be said to be by " perils of the sea," though no action of the waters may have had anything to do with it (m). [g) The Xantho, 12 A. C. 503; BuUer V. Fisher, 3 Esp. 67. (A) Woodley v. Miohell, 11 Q. B. I>. 47. (j) The Xantho, 12 A. C. 603, re- versing 11 P. D. 170. (/c) 12 A. 0. 503, per Lord HersoheU, at p. 509. (?) 12 A. 0. 518 ; per Lord Bramwell, at p. 527. (to) a good illustration is afforded by- Sect. 85. an accident which occurred to the " Soythia " in 1876, when her propeller ■was disabled by striking a whale, and she had to put back to Queenstown. The damage and the delay were surely due to a peril of the sea. So, where damage above water-line has been done in a collision, and a perishable cargo must be discharged while repairs are efEeoted, loss thus arising is surely excused by " perils of the sea," See infra, s. 88 (a). not covered. 102 THE CONTRACT. Sect. 86. 86. Losses by perils whicli have no peculiar connection with the Dangers not sea, Or the navigation, though they may occur during the voyage, the'^r *° ^° ^0* *^^ within the exception. For example, damage by rats (n) or cockroaches (o) eating the goods in the ship ; or by an accidental fire in the hold (p) ; or by the heating or sweating of the cargo (q) ; or by fumes arising from other goods (r), although the several parts of the cargo may have been well stowed. But if bad weather has prevented the ordiaaxy ventilation of the ship's holds (as by taking off the hatches), perhaps a conse- quent heating and sweating of the cargo would be regarded as a damage by sea perils (s). .The question in such a case seems to be whether reasonable means for ventilating had been provided, having regard to the probabilities of bad weather. It has, in several cases, been held that the acts of pirates are within the exception, " dangers of the seas" (t). None of these, however, are of recent date ; and the modern practice is to have an express exception of pirates ia the bill of lading. Loss by arrest A Seizure of the goods, as contraband, by foreign authorities at a port into which the vessel has put, in the course of the voyage, is not a loss by a peril of the sea, or of the navigation («). Nor is an arrest of the goods under a bottomry bond given by the master for repairs of the ship, which became needful owing to sea damage (a;). (») Kay v. Wheeler, L. E., 2 C. P. damage caused by the eondeiwation of 302 ; Laveroni v. Drury, 22 L. J., Ex. vapour in the hold, due to the tramsi- 2 ; and see the judgments in Hamilton tion from a, warm to a cold climate, is V. Pandorf, 12 A. C. 618. Cf . Hunter a damage by sea perils, if the cargo has ■V. Potts, 4 Camp. 203 ; Eohl v. Parr, 1 been stowed in the usual manner. See Esp. 445. Clark ©.Barnwell, 12 How. 272; Lamb». (o) The Miletus, Parsons, Ship. i. Parkman, 1 Sprague, 343, cited Parsons, 258, n. Shipping, 261, n. Cf. The Thames, 61 {p) Hamilton ». Pandorf, 12 A. C. 618, Fed. Eep. 1014. p. 527, per Lord Bramwell ; The Hong (<) Pickering v. Barclay, Styles, 132 ; Kong, &c. Banking Corp. v. Baker, 7 2 EoU. Ab. 248, pi. 10; BartoniJ.'Walli- Bomb. H. C. Eep. 186, p. 203; Parsons, ford. Comb. 66; Abbott {5th), p. 254. Shipping, i. 256. ' Per Byles, J., in Russell v. Niemaim, 34 ( •'^ ■ ■"• (/) oeeOompauhiadeNav.LaFleoha »• Brauer, 168 U. S. 104 a897) (4 See The Santho, 12 A. C. 603 ; .".<=. lu* ^lo»/^ and HamUton v. Pandorf, 12 A. C. 618. (^) Kopitofi v. Wilson, 1 Q. B. D. 377. Of. The Cressington, (1891) P. 152; (A) The Chaaea, L. E,., 4 A. & E. 446 ; infra, s. 88 . Waters v. Merchants, &o. Co. , 1 1 Peters, ((Z) Story, Bail. s. 616; The WUUam, 213 (1837). See Magnus v. Buttemer, 6 Rob. Ad. 316. 11 0. B. 876; 21 L. J., 0. P. 119; («) Lloyd «. General Iron Screw CoUier Thompson v. Whitmore, 3 Tavm. 227; Co., 33 L. ^., Ex. 269 ; Grill v. Same, Fletcher v. Inglis, 2 B. & A. 315. CARRIAGE IN A GENERAL SHIP. 105 " dangers and accidents of the seas," was definitely raised and Sect. 88. decided by tke House of Lords, in the case of Hamilton v. Pandorf (^'), so lately as the year 1887. The action was by the owners of a cargo of rice, for damage by sea water which had entered through a hole in a lead pipe leading from a bath room in the ship to the sea. This hole had been made by rats during the voyage. It was admitted that there had been no neglect or default on the part of the shipowners or their servants. Upon these facts, Lopes, L. J., decided that the loss was within the exception, and that the shipowners were consequently not liable (/f). This judg- ment was reversed by the Court of Appeal (l), but was restored by the House of Lords (Lords Halsbury, "Watson, Bramwell, Fitzgerald, and Herschell) {m). The explanation of this difficulty and doubt was the uncertainty as to how, for the purposes of a contract of carriage, the cause of a loss was to be ascertained. The distinction had been frequently laid down («) that " in a bUl of lading, as distinguished from a policy of insurance, we are entitled to look at what was the real cause, that is, as it is expressed in our legal phraseology, we may look at the causa causam instead of merely looking at the causa proxima" ip). In Pandorf «. Hamilton, in the Court of Appeal, Lord Esher repeated this distiuction, and held that " where the rats, by being the effective cause, let in the sea, this letting in of the sea is not a cause at all. It is the effect of what was done by the rats, and the rats were the effective cause" {p). The view seems to have been that the accidental, unforeseen factor in the production of a casualty ought properly to be regarded as its cause. The forces which actually, immediately, did the mischief li) 12 A. 0. 518. ship was liable ; the pipe should have />^ 1 6 O B D 629 been properly cased, or made of iron. ^ ' («) Per PoHook, C. B., in Lloyd ».• (0 17 Q. B. D. 670. General Iron Screw CoUier Co., 30 L. J., («j) 12 A. C. 618. Cf . The Euripides, Ex. p. 371 ; per Sir K. Phillimore, in 71 Fed. Eep. 728 (1896), where the The Chasoa, L. E. , 4 A. & E. p. 448. water which got into the cargo had been But see the judgment of the Privy intentionaUy forced down the pipe (w.c), Council in The Freedom, L. R., 3 P. C. in which rats had gnawed a hole, for p. 601. flushing purposes ; held not to be by (o) Per Brett, L. J., in Chartered perils of the sea. In The Italia, 69 Merc. Bank v. Netherlands India Steam Fed. Eep. 617, a loss occurred by fresh Nav. Co., 10 Q. B. D. atp. 631; and per water which escaped from a lead pipe Manisty, J., S. C, 9 Q. B. D. p. 126. gnawed by rats ; it was held that the [p) 17 Q. B. D. p. 682. 106 THE CONTEACT. Proximate cause regarded. Sect. 88. were not to be regarded, if they were only forces wWcli it was known beforehand would have that effect in case such accidental conditions occurred. The same view led to the conclusion, in Woodley v. Michell (q), and in The Xantho (r), that the loss of a ship and cargo by collision with another ship, which had been negligently navigated, was not a loss by a peril of the sea. " The real cause of the loss has to be sought for, and it is negligence " (s). This was, however, definitely decided to be mistaken by the House of Lords, on appeal ia The Xantho (t). And by their judgments in that case, and in Hamilton v. Pandorf (m), the Lords must be taken to have abolished the distinction previously made in the construction of policies on the one hand, and of charter parties and bills of lading on the other. They laid it down that the words " perils of the sea " have the same meaning in these different documents; and that the rule as to looking to proximate causes applies in relation to contracts of carriage as well as to policies. But that, whereas in a policy that rule alone has to be considered, in a contract of carriage, on the contrary, " you may look behiad the immediate cause, and the shipowner is not protected by the exception of perils of the sea in every case in which he would be entitled to recover on his policy, on the ground that there has been a loss by such perUs " («). (?) 11 Q. B. D. 47. (r) In the C. A., 11 P. D. 170. («) Per Ld. Esher, 11 P. D. p. 173. And see, in the U.S., The G. E. Booth, 171 XT. S. 450, cited helow. (<) 12 A. C. 503. («) 12 A. C. 518. {x) Per Ld. Herschell, The Santho, 12 A. C. p. 510. Ld. Watson (p. 526) said: "Tour lordships have no-w dis- approved of the novel doctrine that in a contract of sea carriage a meaning must be attached to the expression, ' dangers and accidents of the sea,' different from that which it bears in a contract insuring cargo against sea risks ; that, in a, case of a charter party or bill of lading, the Court ought to look to what has been termed the remote, as distinguished from the proximate, cause of damage, whereas in the case of a poUoy the proximate cause can alone be regarded. The ex- pression has precisely the same signi- ficance in both oases ; but there is this difference between them, that when a shipowner, who is bound, by the implied terms of his contract, to carry with ordinary care, claims the benefit of the exception, the Court will, if necessary, go behind the proximate cause of damage, for the purpose of ascertaining whether that cause was brought into operation by the negligent act or default of the shipowner or of those for whom he is responsible." Hamilton v. Pandorf was distinguished by the Supreme Court of theU. S. in The a. E. Booth (171 V. S. 450 (1897)), where the circumstances were rather closely similar. During the dis- charge of a cargo a case of detonators ex- ploded, without any negligence, making a hole in the ship's side; sea water flowed in through the hole, and got to a part of the ship in which sugar was stowed, and damaged it. The bill of lading excepted "loss or damage occa- sioned by the perils of the sea or other waters," and also " accidents of naviga- CARKIAGE IN A GENERAL SHIP. 107 88a. A shipowner then is excused where the proximate cause of Sect. 88a. a loss has been an excepted peril, although other accidental causes Application of may have co-operated which were not excepted. In that sense the ca^'^le. rule of looking to proximate causes is applicahle. But the converse is not always true. A shipowner may he excused by an exception of perils though the proximate cause of loss may not have been excepted. The contract of a carrier diEEers from that of an insurer. An underwriter agrees to indemnify against losses by certain perils, and to make him liable the loss must have been by one of those perils as proximate cause. The contract of a shipowner is to deliver the goods in good order at their destination, unless prevented by certain excepted perils. Such prevention may be by an excepted peril directly, as where goods are destroyed by the sea breaking in. But, also, an ex- cepted peril may so alter the conditions of the voyage as to prevent its completion unless the cargo is dealt with in a manner which exposes it to risk and loss ; as where goods are put on to a beach to lighten a stranded ship. If so, the consequent loss is covered by the exception. In this sense the remote as well as the proxi- mate consequences of excepted perils must be regarded. An illustration of this difference is afforded by the case of Pink V. n.eming(«/). The question was as to the liability of underwriters of a fruit cargo for damage done to it, necessarily, by discharging at a port of refuge. The ship had been in collision, and the discharge was necessary for the purpose of repairing her. The Court of Appeal, following the rule of proximate causes, held that this was not damage " consequent on collision," within the warranty against particular average " unless damage be consequent on collision with any other ship." tion of whatsoever kind." It was held effect of the bursting open of the ship's that neither exception applied. Gray, J., side hy the explosion. There being two delivering the judgment, said: "The conoturent causes of the damage — the damage to the sugar was an eflfeot explosion of the detonators and the which proceeded inevitably and of abso- inflow of the water — ^without any ap- lute necessity from the explosion, and preciable interval of time, or any possi- must therefore be ascribed to that cause. bility of distinguishing the amount of The explosion occurred as the efficient damage done by each, the explosion agent, with the water, at the instant as the cause which set the water in when the water entered the ship. The motion, and gave it its efflciencyf or harm inflow of the water, seeking a level by at the time of the disaster, must be the mere force of gravitation, was not a regarded as ilas predominant cause." new and independent cause, but was a necessary and instantaneous result and iv) 25 Q- B. D. 396. 108 THE CONTEACT. Sect. 88a. Prom this it might seem, applying the same rule of construotion to a biU of lading, that where .a cargo has to he discharged for repairs, owing to sea perils, the damage necessarily done in discharging it will not he covered by the exception " perils of the sea." This would be a mistake. The shipowner is justified in discharging the cargo in such a case ; indeed, he must discharge it, whether to repair and carry it on, or to tranship it. And since he is excused responsibility for the accident which made this necessary, he is not responsible for the consequences of the discharge if he uses proper care (s). lUustrations 89. The following cases will illustrate how the rule of lookine of proximate . . . , causes. to the proximate cause has been applied with regard to policies of insurance : — "Where a vessel was taken in tow by a ship of war, and was obliged to carry an extraordinary press of sail in order to keep up, and consequently shipped water in a gale, the damage was held to be by perils of the sea {a). So, where a ship was driven ashore by the wind, owing to seizure by the press-gang of two of her crew who had been sent ashore to cast ofE a rope(S). So, again, where a ship went ashore because a light had been extinguished, at Cape Hatteras, as an act of hostility during the American Civil War (c). In each case the loss was by perils of the sea. Where ships have been driven on to hostile coasts by stress of weather, and have thus been captured, the cause of loss has been held to be the capture, not the sea peril {d). And where the rescue of goods from a stranded ship was prevented by belligerents, the loss was ascribed to them, not to the perils which caused the stranding (e). On the other hand, where goods had in effect been lost by sea perils, but were afterwards saved and confiscated by captors, the loss "was ascribed to the perils of the sea, not to capture (/). Again, where adverse weather caused delay on the voyage, so (z) See Garston Co. v. HioHe (2), 18 278 ; Livie v. Janson, 12 East, 648. Q. B. D. 17. {e) lonides v. Universal Marine Ins. (a) Hagedom v. Whitmore, 1 Stark. Association, 32 L. J., C. P. 170. ^^^' (/) Hahn v. Corbett, 2 Bing. 205 ; and (5) Hodgson V. Malcolm, 2 B. & P., see lonidee v. Universal Marine Ins. N. R. 336. Association, supra; and Dent f. Smith, [o) lomdes V. Universal Marine Ins. L. E., 4 Q. B. 414 ; Dean v. Hornby, AssociatioB, 32 L. J., 0. P. 170. 23 L. J., Q. B. 129 ; United States v.- (d) Green v. ElmsUe, Peake, N. P. Hall, 6 Cranch, 171, CAREIAGE IN A GENERAL SHIP. 109 tliat a cargo of meat became putrid, it was held not to be a loss Sect. 89. by perils of the sea (g). But where horses on board were injured in a storm, by the rolling and pitching of the ship, and by kicking one another in the confusion, "so that they died, the loss was considered to proceed directly from the violence of the storm, and to be by perils of the sea (h). In Eeischer v. Berwick (i) a ship was insured against " damage received in collision with any object." She collided with a snag, and the cover of her condenser was broken. By plugging the ejection pipes the master stopped the inrush of water, and made her safe while she remained at anchor. But a tug was employed ; and soon after towing began one of the plugs came out, the water rushed in, and the vessel had to be beached and abandoned. Held by the Court of Appeal, affirming Kennedy, J., that the loss was by the collision. " The sinking of this ship was proximately caused by the internal injuries produced by the collision, and by water reaching and getting through the injured parts whilst she was being towed to a place of repair. The sipking was due as much to one of these causes as to the other ; each was as much a proximate cause of her sinking as the other, and it would in my opinion be contrary to good sense to hold that the damage by the sinking was not covered by this policy " (fc). 90. Where mischief has been set up in a cargo by sea damage. Spread of the spread of that mischief is regarded as arising from perils of the ori^nated by sea (/). Even under a policy it is treated as a result of the sea ^^* amage. peril (m). A vessel loaded with hides and tobacco shipped a quantity of water, in bad weather, which wetted and putrefied the hides. The packages of tobacco were not immediately touched by the water ; but the tobacco was greatly damaged in flavour, by the fetid vapours proceeding from the putrid hides. It was held that the damage to the tobacco was due to sea perils («). Pollock, C. B., ((7) Taylor v. Dunbar, L. R„ 4 C. P. 374; The G. K. Booth, 171 U. S. 450, 206 ; Tatham v. Hodgson, 6 T. E,. 656. supra, a. 88. tis n 1. Ti J o Tj fc n TQ!!. (0 See The Catharine Chalmers, 32 Ih) Gabay 1). Lloyd, 3 B. & C. 793, t rr, o-- t> 4. j. m, i?. j t -d _>' ,t J • c T, e, \ -inT L. T. 847. But of. The Freedom, L. R., Lawrence v. Aberdem, 6 B. & A. 107. -i-prTcQi Cf. Nugent «. Smith, IC. P. D. 19, 423. ,,■ ; t . . (m) Montoya n. iioudon Asaur. Co., (i) (1894) 2 Q. B. 548. g j;^_ ^gi_ (A) Per Lindley, L. J., (1894) 2 Q. B. (») Montoya v. London Assur. Co., 6 p. 551. Cf. Insurance Co. v. Tweed, 7 Ex. 451 ; 20 L. J., Ex. 254. Cf. Cator Wall. 44 ; Insurance Co. v. Boon, 95 v. Great Western Ins. Co. of New York, U. S. 117; The Strathdon, 89 Fed. Kep. L. R., 8 0. P. 652. 110 THE CONTEACT. Sect. 90. Duration of " naviga- tion." "Risk of toats." said, "It is a matter of indifference -whethet the whole of the cargo belongs to one person, and consists of one entire package of corn, or whether the cargo consists partly of com and partly of hides, and is the property of several owners. In both cases the loss arises from perils of the sea ; and it is diflBcult to see how the loss can he said not to be the immediate result of such perils. And I think it may be laid down as a general rule that when mischief arises from perils of the seas, and the natural and almost inevitable consequence of that mischief is to create further mischievous results, the underwriters in such case are responsible for the further mischief so occasioned" (o). And Parke, B., saiid, "It seems to me impossible to distinguish this case from that which I put, where the cargo is supposed to consist entirely of hides or com, and the upper part is injured by noxious gases arising from the decompo- sition of the lower portions, or by the water being raised by capillary attraction" {p). 91. The " navigation," within the meaning of "dangers and accidents of the seas and navigation," begins at the loading port and continues after the ship has got to her discharging dock and berth. So that an accident by which water gets in during the loading or unloading, and damages the goods, will generally be excepted {q). 92. Where the exception ran as follows : " All and every other dangers and accidents of the seas, rivers, and navigation of what- ever nature and kind soever, save risk of boats so far as ships are liable thereto excepted," it was held that the shipowner was not liable for a loss, occasioned by storm, of goods which had been properly placed in a boat for the purpose of landing them (r). ColUsion." 93. The exception " collision " does not protect the shipowner where a collision has been brought about by a- default of the master, or crew, of the carrying ship. But if there has been no default on their part, it does protect him against a collision with another ship, although that may have been navigated improperly ; and although she may have belonged to the same shipowner, and (o) 6 Ex. at p. 458. {p) Ibid, at p. 469. (q) Laurie v. Douglas, 16 M. & W. 746; Adam v. Morris, 18 Sess. Ca. (4tli), 153 ; TheSouthgate, (1893) P. 329 ; The Glenoohn, (1896) P. 10. But see The Acoomao, 15 P. D. 208 ; The G. B. Booth, 171 U. S. 450 (1897) ; Davidson V. Burnaud, L. E., 4 0. P. 117 ; mfra, s. 101. (r) Johnston v. Benson, 4 Moore, 90. CAKEIAGE IN A GENEEAL SHIP. Ill been in charge of liis servants (s). The exception does not, how- Sect. 93. ever, in such a case, prevent the shipowner from being liable, in tort, as owner of the other vessel, for the negligent navigation (t). " ' Collision ' appears to me to contemplate the case of a vessel striking another ship or boat, or floating buoy, or other navigable matter — something navigated, and coming into contact with it. It, so to speak, imports, as it were, two things. It may be that one is active and the other is passive, but stiU, in one sense, they each strike the other. That does not apply to striking on the ground at the bottom" {u). 94. As we have seen, "pirates" have been held to be within "Pirates." " dangers of the seas," but they are generally excepted expressly. Piracy is forcible robbery at sea, whether committed by marauders from outside the ship, or by mariners or passengers within it. The essential element is that they " violently dispossess the master, and afterwards carry away the ship itself, or any of the goods, with a felonious intent " (»). " Eobbers " is more general than " pirates," but stiU. implies that " Eobbers." the acts excepted are acts of forcible taking {>/) . " Thieves" seems to cover all acts of felonious taking (s). But "Thieves." it has been held that the general exception of " thieves " does not cover acts of the crew, or of other persons on board the ship (a) ; and, presumably, the same is true of " robbers " and " pirates" (b). In modern bills of lading the exception sometimes runs : "pirates, robbers, or thieves, whether on board or not." In this form it protects the shipowner against thefts by passengers or strangers on board, but not against thefts by the crew, or by other persons in the employ of the shipowner, or (as stevedores) doing the work he has undertaken to do (c). Greneral exceptions are always con- («) Chartered Merfiant£e Bank of (y) De Eothsohild v. Eoyal Mail Steam India, &c. v. Netherlands India Steam Packet Co., 21 L. J., Ex. 273. Nav. Co., 10 Q. B. D. 521 ; reversing (z) But see Taylor v. Liverpool and 9 Q. B. D. 118. - Great Western Steamship Co., L. E., 9 {t) Hid. Q. B. 546 ; where Archibald, J., seems («) Per Grove, J., in Hough v. Head, to have held that the theft must he with 52 L. T. 861, p. 864. As to "in colU- violence. sion" in the memorandum of a policy, (a) Taylor v. Liverpool, &c. Co., see London Assurance v. Comp. de supra; Steinmann v. Angler, (1891) 1 Moagens, 167 U. S. 149 (1897). Q. B. 619. (x) Att.-Gen. for Hong Kong v. (S) Of. The Chasoa, L. E., 4 A. & E. Kwok-a-Sing, L. E., 5 P. C. 179. See 446. Neshitt V. Lushingtou, 4 T. E. 783 ; (c) Steinmann v. Angier, (1891) 1 Palmer v. Naylor, 23 L. J., Ex. 323. Q. B. 619. 112 THE CONTRACT. Liatility for bad stowage. Sect. 94. strued, sutject to contrary words, so as to preserve the shipowners'' obligation to use care. A fortiori, they- must be construed so as to preserve his obligation to be honest, by himself and his servants. An exception of "neglects or defaults" of the shipowner's servants will not cover thefts by such persons (d). 95. The general responsibility at law of the shipowner makes him liable for any loss or damage which may happen to the goods in the ship's hold by their contact with, or proximity to, other parts of the cargo, or by any wasting or deterioration; imless, indeed, he can show that it altogether arose from some quality or defect of the goods themselves (e). It is not necessary that negligence in the manner of stowiag the goods should be proved, or should have occurred, in fact. If the shipowner chooses to carry a number of different articles together, he does so at his own risk, and though he may have used all possible care in stowing them, he is liable for the damage they may cause to one another (/). We, therefore, usually find in a bill of lading some exceptions relating to risks of damage by wasting, and by contact with other goods ; e.g., by breakage, leakage, drainage, evaporation, heating, sweating, rust, decay, &c. Such general clauses do not relieve the shipowner from responsibility for negligence or unskilfulness^ in handling and arranging the goods. It is presumed, unless the contrary is expressed, that he and his agents will still be skilful and careful {g). 96. But where these risks have been excepted, the shipowner does not undertake that more than reasonable care and skill will be shown. Ignorance of the injurious consequences of stowing particular kinds of goods together does not always amount to negligence, so as to prevent him from relying on the exceptions. It cannot be said that there has been negligence, or want of reasonable skill, unless the consequences of such a stowage were well known to stevedores. In Ohrloff v. Briscall (A), Lloyd & Co. had chartered The Helene for a voyage from Leghorn, and they there shipped a cargo of Liability for ignorance. id) Of. Shawv. G. W. Rail. Co., (1894) 1 Q. B. 373. (e) See siipra, e. 12. (/) The Freedom, L. R., 3 P. 0. 594 ; Gillespie v. Thompson, 6 E. & B. 477 (n.) ; Stevens, Stowage (6th), p. 456. iir) Phillips V. Clark, 26 L. J., 0. P. 108 ; Czech v. General Steam Nav. Co., L. R., 3 C. P. 14 ; supra, s. 77. {fi) The Helene, L. R., 1 P. 0. 231. CARRIAGE IN A GENERAL SHIP. 113 rags, wool, and forty-seven easts of olive oil. A till of lading Sect. 96. was given for the oil, which excepted " leakage," and this hill of lading was endorsed to the plaintiffs as purchasers of the oil. The oil was stowed in the same hold with some rags and wool, and these having tecome heated, the staves of the casks dried, the casks became l§aky, and thus a large part of the oil escaped. Dr. Lushington held the shipowners responsible for this loss, as caused by negligent stowage, but his decision was reversed by the Privy Council. Turner, L. J., in delivering judgment, said : " Notwithstanding the evidence of the notoriety at Liverpool of the deleterious conse- quences of the collocation of oil in casks with rags and wool, or other matters tending to generate heat, we do not, believe that either the shippers or the shipowners in this case were aware of them. Nor do we think the ignorance of the shipowners in itself amounted to negligence. It can hardly be imputed as misconduct that the shipowners should be ignorant of latent mischief of this nature, when Lloyd & Co., who are proved to have had very great experience as oil merchants, were in the same state of ignorance "(2). 97. Further, apart from all exceptions, if the damage to a ship- Damage from per's goods has been the result of dangerous qualities in themselves quality of which were known to the shippers, but were not known, and could ftwjpea. not reasonably be expected to have been known, to the shipowners, the latter are not responsible for the damage. For example, where salt cake was shipped, and was in ignorance stowed by the ship- owners with casks of salt provisions, so that the salt cake rotted the casks and cask hoops, and the brine ran out of the casks, spoiling the salt cake : these facts were pleaded as a defence to an action for the damage, and it was held to be no sufficient reply that the salt cake was an article whose nature and properties were well known in commerce, and to persons carrying on the business of carriers in ships Qc). 98. The general exception "leakage" includes all loss, however "Leakage," great, due to leaking of the goods themselves. It does not relate to their ordinary leakage merely {I). (i) L. K., 1 P. C. pp. 238, 239. L. J., Q. B. 49; Aoatos v. Bums, 3 Ex. D. 282. See infra, a. 273 et seq. {k) Hutchinsou v. Guion, 28 L. J'., (z) Ohrlofi v. Brieeall (The Helene), C. P. 63. Cf. Brass v. Maitland, 26 L.E., 1 P. C. 231. C. C. I 114 THE CONTRACT. Sect. 98. " The condition that the shipowners are not to he aecountahle for leakages does not, in its ordinary and grammatical sense, put any Kmit to the quantity of leakage ; and on principle, therefore, we do not think it would he justifiahle to add any such limit to its terma" (m). The same remark seems to apply to other similar exceptions, such as " evaporation, rust," &o. But the exception does not relate to damage sustained by the goods owing to leakage from some other part of the cargo, unless that is expressed. In Thrift v. Toule (w), 100 harrels of oil and 106 bales of palm baskets were shipped under one bill of lading, which contained the clause " not accountable for rust, leakage, or breakage." On delivery two barrels of the oil were found to be empty, and sixty of the bales of palm baskets were damaged with oil. It was held, that the shipowner was responsible for the damage to the bales. Grove, J., said : " The words in the biU of lading simply mean that if the goods shipped are injured by rust, or if the casks containing them become leaky or are broken, the ship- owner is not to be accountable ; there is nothing in the bill of lading to show that the clause is to be extended to remote conse- quences ; and the ulterior injury arising from leakage may be of a very important kind, and nevertheless of a totally different nature : suppose, for instance, that a cask of spirits leaks, and that what escapes from it catches fire and destroys other goods ; I think that this clause would not protect the shipowner from liability to com- pensate the owner of the goods burnt." Denman, J., said : " The sole question for our consideration is the meaning of the word ' leakage.' Some goods, such as oil stored in barrels, are apt to leak ; and by the insertion of this word it was intended to protect the shipowner from liability to compensate the owner of the goods for the waste occasioned by leakage. I do not think the word can have a more comprehensive meaning. In like manner, by the use of the word 'breakage,' it was merely intended that the shipowner should be absolved from liability in respect of goods broken during the voyage ; it would be absurd to suppose that it could extend to damage done hj the broken goods to other goods." "Barratiy." 99. " Barratry," or " barratry of the master or mariners," means any wilful act of spoliation, or violence to the ship or goods, or any (m) L. R., 1 p. C. at p. 240. {«) 2 0. P. D. 432. Cf. The Nepoter, L. R., 2 A. & E. 275. CAEEIAaE IN A GENERAL SHIP. 115 fraudulent or consciously illegal act wMch exposes the ship or goods Sect. 99. to danger of damage, destruction, or confiscation, done by the master or crew without the consent of the shipowner. For example, if goods are lost or damaged hy the master wilf uUy ruiming the ship upon rocks (o), or attempting to scuttle her {p) ; or through a fraudulent delay {q), or deviation {r) upon the Toyage, for the master's private purposes ; or by the ship and cargo being fraudulently sold by the master (s) ; the exception relieves the shipowner from responsibility for such losses. So again, if the goods become confiscated owing to the master using the ship for purposes of smuggling {t), or trading with an enemy {u), or running a blockade (®). And the effect is the same although the master was intending to act for the benefit of the owners («). Speaking in relation to a policy of insurance. Lord EUenborough said {y) : " A breach of duty (by the master) in respect to his owners, with a criminal intent, or ex malificio, is barratry. And with respect to the owner of the ship or goods, whose interest is to be protected by the policy, it can make no difference in the reason of the thing, whether the prejudice he suffers be owing to an act of the master, induced by motives of advantage to himself, malice to the owner, or a disregard to those laws which it was the master's duty to obey, and which (or it would not be barratry) his owners relied on his observing. It has been strongly contended, on the part of the defendant, that if the conduct of the master, though criminal in respect of the state, were, in his opinion, likely to advance his owner's interest, and intended by him to do so, it will not be barratry. But to this we cannot assent. For it is not for him to judge in cases not intrusted to his discretion, or to suppose that he is not breaking the trust reposed in him, but acting meritoriously, when he endeavours to advance the interest of his owners by means which the law forbids, and which his owners also (o) Scares v. Thornton, 7 Taun. 627 ; [t) Hayelook v. Hauoill, 3 T. R. Heyman v. Parish, 2 Camp. 149. 277. /vnTLz-ii. T T, A \ i>.-a AAd M Earlo V. Roworoft, 8 East, 126. (^ TheChasoa, L.R., 4 A. &B.446. ) i „ ^3 -jj. wt,'* q rr * ' (v) Goldsmidt v. Whitmore, 3 Taun. (q) Ross v.- Hunter, 4 T. R. 33 ; 507. And see other oases of barratry Eoscow V. Corson, 8 Taun. 684. ty exposing the ship and goods to con- , . ,, T. ^ m T> own fisoation, cited in Earle v. Rowcroft, 8 J) Moss . B^om, 6 T E. 379 ; ^^g. Dixon V. Reid, 5 B. & A. 597. ^^^ 3^^ ^^^ g^^^^^ ^_ ^^^^^^ 2 Str. (s) Jones V. Nicholson, 23 L. J., Ex. 1173. 330. W Earle v. EoToroft, 8 East, 126. i3 ,^ 116 THE CONTRACT. Sect. 99. EfPeot of owners' assent. Barratry against charterer, or cargo-owner. must be taken to liave forbidden ; not only from wliat ought to be, and therefore must be presumed to have been their own sense of public duty, but also from a consideration of the risk and loss likely to follow from the use of such means " (z) . A deviation through ignorance of the master is not barratrous (a) ; nor is negligent navigation, in contravention of the rules of navi- gation, if there has been no improper motive (5) ; nor is a jettison made by the master under an unfounded fear, without apparent or reasonable necessity (c). It is essential that the act shall have been either fraudulent, or done knowingly in breach of the lsiw{d). In Cory v. Burr (e), an action on a policy of insurance, which contained the warranty "free from capture and seizure," it was held that a loss by seizure and detention, for smuggling by the master, must be ascribed to "capture and seizure," and not to the barratry. 100. Where the master has acted with the assent of the owners, his acts are not barratrous (/). But the mere fact of his being a part owner will not prevent the possibility of his committing barratry as against the other part owners (g), or against his mortgagee (h). And if the ship has been chartered so as to give the charterer possession and control of her for the time being, acts may be committed against him which will be barratrous, although the shipowner may have ordered or assented to them («) . In relation to policies of insurance acts may perhaps be barra- trous against the cargo owner, though not done against the ship- Owner's wUl. Thus in lonides v. Pender (/c), Hannen, J., directed the jury that a loss by scuttling would, under a poKcy on goods, be barratry, although the scuttling were done with the knowledge of the shipowner, if it was without the knowledge of the freighter. Ins. Co (z) Per Lord Ellentorougt. in Earle V. Eowcroft, 8 East, p. 124. (o) Phyn V. Royal Exchange Ass. Co., 7 T. K. 505. (J) Grrill V. General Screw Collier Co., L. E., 1 C. P. 600. {e) Campanhia de Nav. la Elecha v. Brauer, 168 U. S. 104 (1897). {d) Phynjj.Eoyal Exchange Ass. Co., supra; The Australasian Ins. Co.!). Jack- son, 33 L. T. 286. See Phillips, Ins., ss. 1063 et seq. ; Dederer v. Delaware 2 Wash. C. C. 61. («) 8 Q. B. D. 313 ; 9 Q. B. D. 463 ; 8 A. C. 393, (/) Nutt V. Bourdieu, 1 T. E. 323; Hobhs V. Hannam, 3 Camp. 93 ; Stanuna V. Brown, 2 Str. 1173. {g) Jones V. Nicholson, 10 Ex. 28. {h) Small V. United Kingdom, &c. Assoc, (1897) 2 Q. B. 42. (i) Scares v. Thornton, 7 Taim. 627 ; VaUejo V. Wheeler, Cowp. 143. (A) 27 L. T. 244. CARRIAGE IN A GENERAL SHIP. 117 In Atkinson v. Great Western Insurance Co. {I), in the New Sect. 100. York Court of Common Pleas, after an elaborate discussion of tlie history and meaning of the word, Daly, C. J., said that barratry " as a marine term means an intentional injury to the vessel, or to the cargo (w) ; or some unlawful, fraudulent, or criminal act, whereby, or in the prosecution of which, loss or injury arises to the owners of the vessel, or of the cargo, or to the insurers ; and does not embrace what in the law is denominated negligence." Questions on this subject have generally arisen with respect to insurances, and they will be found discussed in works on marine insurance. In relation to contracts of carriage we have, however, to re- member that the exception is introduced for the shipowner's benefit, and will not shield him against losses produced by his own wrongful acts. So that, although an act of the master done with his owner's consent might, within a policy, be barratrous against the charterer, that will not bring the act within the exception so as to protect the shipowner from the conseijuences. 101. Bills of lading now commonly relieve the shipowner from "Negligence responsibility for negligence of the master or mariners in navigat- ing the vessel. Often the exception extends to acts of stevedores, and other persons employed by the ship ; and sometimes it goes still further, and covers all wrongful acts, and neglects, and errors in judgment, whether of the owners, or of those in their service, or for whose acts they would otherwise be liable. There is nothing in our law to prevent the parties from making such a contract (w). The legislature has not interfered with ship- owners, as it has with railway and canal companies (o), to prevent their enforcing contracts which may seem to the Courts not to be reasonable {p). {T) 27 L. T. 103, at p. 110. vants' negligence are valid ; but the (ot) The question -wlietlier a -wrong- law seems no-w to be ia favour of that ful act done to the cargo only could be viewinFrance, Germany, Italy, Holland, barratry was raised, but not decided, in and Belgium ; see a valuable paper by Taylor ». Liverpool and Great Western Judge Raikes, Q.C., read before the Steamship Co., L. R., 9 Q. B. 546. International Law Association,- at Ant- («) The Duero, L. R., 2 A. & E. 393 ; werp, in 1895. Westport Coal Co. v. McPhail, (1898) In the United States the matter is 2 Q. B. 130. practically settled by the Harter Act, (o) 17 & 18 Vict. c. 31, s. 7. 1893, infra, s. 103 (a). [p) There has been a good deal of un- As to the effect in an English Court certainty in some European states as to of a foreign law which makes a stipula- whether clauses which exempt the ship- tion in the contract void, see infra, owner from - consequences of his ser- sb. 214 — 216. of master," stowing. 118 THE CONTRACT. Sect. 101. But the Courts construe such exceptions strictly, against the sHpowner, and will not extend them beyond their clear meaning. Negligence in Thus, an exception of "negligence of master or mariners" -will not cover the neglect of a stevedore, iu stowing the cargo {q) ; though it will cover acts of the crew in stowing (r) . While an exception of negligence in the " navigation " will not cover negligent stowage, although done by the crew (s). Where, however, it ran, " any act, negligence, default, or error in judgment of the pilot, master, mariners, or other servants of the shipowner in navigating the ship or otherwise" it was held to cover negligent stowage by a stevedore employed by the shipowner (f) ; and, under a similar exception, damage by rain owing to a negligent exposure of the goods during the loading was excused («(). ''Naviga- The meaning of "navigation" in such clauses has been much discussed. In The Accomac («), the charter excepted negligence of the crew " in the navigation of the ship and in the ordinary course of the voyage." Damage was done to the cargo during the discharge, in dock, by water which entered through a pipe from which a cock had been removed in the course of repairs. The ship's engineer had opened the sea-valve, and so let in the water, without ascertaining whether this pipe had been plugged. The plugging had been omitted by negligence of the repairing con- tractor's men. Butt, J., held that as the damage was due to the joint negligence of those men and the engineer, and not exclusively to the fault of one of the crew, it was not excepted. The Court of Appeal affirmed the judgment, on the ground that the loss was not by negligence " in the navigation," or during the voyage («/). In The Cressington (s) it was held that " accidents of navigation . . . even when occasioned by the negligence, default, or error in judgment of the pilot, master, &o," covered damage to the cargo through the continuance of an accidental leak which ought to have been stopped by the master. In Adam v, Morris (a), the same exception was considered to (?) Hayn i>. Culliford, 3 0. P. D. 410 ; [u) Norman v. Binnington, 25 Q. B. 4 C. P. D. 182; The Ferro, (1893) P. D. 475. Cf. JUi Kang !;. AustraHan S. 38- N. Co., 9 Viot. L. R. 171. (r) The Duero, L. R., 2 A. & E, 393. («) 15 P. D. 208. (y) In Grleadell v. Thompson, 11 (») Per Denman, J., in Hayn v. CulU- gietel's N. T. R. 194, it was held that ford, 3 0. P. D. 410 ; The Eerro, (1893) ^egUgence which occnrred after the goods had been landed was not covered. [t) Baerselman v. BaUey, (1895) " («) (1891) P. 162. Q. B. D. 301. (a) 18 SesB. Ca. (4th) 153. CAREUGE IN A GENERAL SHIP. 119 cover damage ty water -whioh entered owing to negligence of the Sect. 101. engineer, at the port of discharge, in leaving the sea-cock open when filling the boiler. And in The Southgate (b), Grorell Barnes, J., indicated the opinion that a similar incursion of water during the loading of the ship was an " accident of navigation." He did not, however, decide the point. And in The Glenochil (c), where a similar accident had occurred, it was held that the loss resulted from an error in the " management " of the vessel rather than in the " navigation." The word "management" has also given rise to difficulty (^. "Manage- In The Grlenochil (c) it was held to cover the act of an engineer in admitting water to a ballast tank without first ascertaining that it was safe to do so. But in The Ferro (e) the same Court held that " management of the ship " did not include acts of stowage. The distinction was drawn between " want of care of cargo, and want of care of vessel indirectly affecting the cargo " (/)• An exception of negligence " during the said voyage " was held by Sir J. Hannen to cover acts done during the loading (g). Where goods were lost owing to a coUisioh between the carrying Negligence on ship (The Crown Prince) and another ship (The Atjeh) which be- ganie owners. longed to the same company, for which both ships were to blame, it was held that the shipowners were not protected by the excep- tion of " accidents, loss, or damage from any act, neglect, or default whatsoever of the pilots, master, or mariners, or other servants of the company in navigating the ship." For the collision was in part due to negligence of those on The Atjeh, and their acts were not within this clause. The company were held to be liable in tort to the extent of half the damage {h). 102. Unless expressly excepted, personal neglects or defaults of Negligence of the shipowner will render him liable, although negligence of his noifgrn^rally covered. (4) (1893) P. 329. {d) See cases under the Harfcer Act, (c) (1896) P. 10. And see The mfra s. 103 (e). Rodney, (1900) P. 112. As to the efEect (g) (1893) P. 38. given to the words "improper naviga- ^^j p^^ gj^ j, j^^^ ^^^ q^^^_ tion " in. insurance contracts, see Canada nchil fl8961 P v 16 Shipping Co. v. British Shipowners' Mutual Protection Association, 22 Q. B. W The Carron Park, 15 P. D. 203 ; D. 727 ; 23 Q. B. D. 342. But of. Good ^^ see Letricheux i>. Dunlop, 19 Sess. V. London Steamship Owners' Assooia- (^tt) 209. Of. The Acoomao, IS P. D. tion, i,. R., 6 0. P. 563 ; Oarmichael v. 208. Liverpool SaiUng Ship Owners' Associa- {h) Chartered Mercantile Bank, &e. tion, 19 Q. B. D. 242 ; and The Wark- v. Netherlands India Steam Nav. Co., 9 •worth, 9 P. D. 20. Q. B. D. 118 ; 10 Q. B. D. 521. 120 THE CONTEACT. Sect. 102. servants be excepted. " There are liabilities on the part of the shipowner which would well exist under a bill of lading in this form, as, for instance, if any personal negligence of his could be proved to be the real cause of the loss. If he employs as master of the ship a person who was known to be of drunken habits, and it is shown that the collision or loss is the result of the drunkenness of the captain on a particular occasion, that I should say would be personal negligence on the part of the shipowner, and he would be liable. Or if, in order to favour some relation of his own, he ap- points as master of the ship a person who has not reasonable know- ledge, skill and capacity, and if the loss is shown to have resulted from the want of that reasonable knowledge, skill and capacity, the shipowner would be liable ; or if the shipowner gives written instructions to his captain that upon the vessel entering into a certain port, although he should have a pilot before entering that port, he is not to have one on board, and by reason of his not having a pilot the ship be lost, there would be negligence on the part of the shipowner, and he would be liable " {i). In Westport Coal Co. v. McPhail (k), the question arose whether the master himself, who was a part owner, was excused by an exception of " neglect and default of the master in navigating the ship." The Court of Appeal held that he was. " The plain common sense of the matter seems to be that the owners, including the defendant, bargained to be excused from the consequence of the negligence within the sphere of his duty of the person — who- ever he might be — who should be properly charged with the command of the ship " (l). Nor nnsea- 102a. Further, an exception of " negligence " does not relieve the ■vfortmness. .. . ,.,,.,. , ,,. shipowner trom his obhgation to supply a ship that is seaworthy, and fit for the cargo, at the commencement of the voyage. He is liable for a loss caused by unseaworthiness, or unfitness, although that may have been due to negligence of the master or crew, unless there was an express exception relieving him from that unsea- worthiness or want of fitness (m). (i) Per. Brett, L. J., in Chartered The Vortigem (1899) P. 140 ; Thin v. Mercantile Bank, &o. v. Netherlands Eioharda, (1892) Q. B. D. 141 ; Seville Indian Steam Nav. Co., 10 Q. B. D. at Sulphur Co. v. Colvils, 25 So., L. E. P- 532. 437 ; steel v. State Line Steamship Co., (A) (1898) 2 Q. B. 130. 3 a. C. 72 ; Tattersall v. National (Z) Per Collins, L. J., at p. 133. Steamship Co., 12 Q. B. D. 297. (ot) Qrpiay V. Price, (1893) A. C. 66 ; s. 79. risk.' CAKRUaE IN A GENERAL SHIP. J21 ■ Such exceptions are frequently inserted, and are valid {n). But Sect. 103a. their language must be clear to he effectual. Thus an exception of " failure or breakdown of machinery " will not excuse a failure of refrigerating machinery on board owing to its unfitness («). Nor will an exception of " defects latent on beginning voyage or other- wise," excuse defects which should have been obvious at the commencement of the- voyage (p). In the United States it has been held that an exception of " latent defects in hull, tackle, &c.," does not amount to an exception of latent defects amounting to unseaworthiness on sailing {q). 103. Sometimes a comprehensive stipulation is used in the bill "Merchant's of lading to throw the whole risks of the voyage upon the shipper. For instance, that the goods are to be carried "at merchant's risk"(r), or "owner's risk" (s), or that the carrier is not to be liable "in any case" (i), or is to be relieved "from all liability for loss or damage by delay in transit, or from whatever other cause arising" (m). Such clauses usually cover all risks, including that of loss or damage from negligent or improper acts of the master and crew («). But it may become necessary to consider what the parties had in view when making the contract. ' The words may have been used with reference to a particular known course of business, under which they have acquired a peculiar meaning («/). Also, such clauses must generally be construed as relating to the risks which would otherwise fall on the shipowner under the contract in which they occur. So that a stipulation in a charter party that a deck cargo was to be carried " at merchant's risk," was held not to ex- elude the liability of the shipowner to contribute to a general («) Cargo per Maori King v. Huglies, Rail. Co., L. R., 8 Q. B. 67 ; Stewart (1895) 2 Q. B. 530, per liord Esher, v. L. & N. W. RaU. Co., 33,L. J., Ex. p. 555j Cargo ex Laertes, 12P. D. 187. 199. Cf. Mitchell v. Lano. & York. (p) Cargo perWaikato v. New Zea- Rail. Co., L. R., 10 Q. B. 256. land Steamship Co., (1898) 1 Q. B. 645 ; (t) Ashendon v. L. B. & S. C. Rail. (1899) 1 Q. B. 56 ; Queensland Nat. Co., 5 Ex. D. 190 ; Taubmaa i>. Pacific Bank v. P. and O., &o. Co., (1898) 1 Steam Nay. Co., 26 L. T. 704. Q. B. 567. (») Brown v. M. S. & L. Rail. Co., 9 ig) The Carib Prince, 170 U. S. 655 Q. B. D. 230 ; 10 Q. B. D. 260 ; 8 A. C. (1898) ; The Caledonia, 157 IT. S. 124. 703. (r) Burton v. English," 10 Q. B. D. (x) Cases supra. Cf. Wyld v. Piok- 426 ; 12 Q. B. D. 218. ford, 8 M. & "W. 443, and cases infra. («) Lewis V. Gt. Western Rail. Co., (y) See Lewis v. Gt. Western Rail. 3 a,. B. D. 195 ; McCawley v. Fumess Co., 3 Q. B. D. 195. 132 THE CONTKACT. Sect. 103. average sacrifice of the goods so carried. For tlie right to contri- hution did not arise under the charter party, hut independently of it, upon the act of sacrifice ; and the contract did not clearly express that a sacrifice was not to give that right (s). Further, a general clause, such as " at owner's risk," does not put an end to the carrier's ohligation to perform his contract. It has heen repeatedly held that it does not excuse him for not deliver- ing the goods within the time expressly or impliedly agreed [a). Nor would it cover an improper refusal to deliver the goods (6). And the words must he read with reference to their subj ect-matter. In Stuart v. British and African S. Nav. Oo. (c), the goods were to he transhipped in the course of the agreed voyage, and the following clause was inserted : — " The goods to be transhipped at Bonny, and forwarded to destination hy branch steamer at ship's expense but shipper's risk." It was held that the words " at shipper's risk " only- related to the operation of transhipment at Bonny, and not to the forwarding to the destination, which had been undertaken in the other part of the biU of lading. In Oampanhia de TSTavigacion la Flecha v. Brauer (d), cattle were carried on deck " at owner's risk," and the shipowners were not to be "accountable for mortality from whatever cause arising." Some of the cattle were thrown overboard by the master under an unfounded fear, and without apparent or reasonable necessity. It was held by the Supreme Court of the United States that the shipowners were not protected. The Harter 103a. Down to the year 1893 the Federal Courts of the United States held that clauses which exempted the shipowner from liability for his own or his servants' negligence were void, as being contrary to public policy. No effect was given to such clauses where the contract was governed by the law of the United States {e). Nor could effect be given even though the contract expressed an agreement of the parties that some other law should govern (/). (z) Burton v. EngKsh, 12 Q. B. D. {d) 168 IT. S. 104 (1897). 218, reyereing 10 Q. B. D. 426. (e) Liverpool, &o. Co. v. Phoenix Ins. (a) Eobinson ». Gt. Western Rail. Oo. (The Montana), 129 TJ. S. 397 ; The Co., 35 L, J., 0. P. 123 ; WAmv. L. & Brantford City, 29 E'ed. Eep. 373 ; The N. W. Bail. Co., L. E., 9 C. P. 325. Guildhall, 68 Fed. Eep. 796 (1893), (i) Of. Gordon v. Gt. Western Eail. where the contract had been made Co., 8 Q. B. D. 44; Stevens v. Gt. abroad, but delivery was to be in the Western Bail. Co., 52 L. T. 324. U. S. («) 32 L. T. 267. (/) In The Oranmore, 24 Fed. Eep. CARRIAGE IN A GENERAL SHIP. 123 In Eebmary, 1893, tlie Act known as the Harter Act was passed Sect. I03a. by Congress and approved ; and it came into operation on July 1, 1893. It has such an important bearing upon the trade to and from United States ports that a detailed consideration of it is necessary. It affects British contracts of carriage in two ways : first, because its provisions are very commonly incorporated ex- pressly; secondly, because the Courts of the United States apply those provisions, without any express incorporation, not only where the cairyiag ship is American, but also where it is of British or other nationality. Even when the contract has been validly made, outside the United States, the American Courts will not, it seems, give effect to exceptions in it which are contrary to the Act, if the cargo is to be delivered at a port of the United States {g). The Act, entitled " An Act relating to navigation of vessels, bills of lading, and to certain obligations, duties, and rights in connection with the carriage of property," enacts as follows : — 1 . That it shall not be lawful for the manager, agent, master or owner of any vessel transporting merchandise or property from or between ports of the United States and foreign ports ,to insert in any bill of lading or shipping document any clause, covenant, or agree- ment wherehy it, he, or they shall be relieved from liability for loss or damage arising from negligence, fault, or failure in proper loading, stowage, custody, care, or proper delivery of any and aU lawful merchandise or property committed to its or their charge. Any and aU words or clauses of .such import inserted in bills of lading or shipping receipts shall be null and void and of no effect. 2. That it shall not be lawful for any vessel transporting merchan- dise or property from or between ports of the United States of America and foreign ports, her owner, master, agent or manager to insert in any bill of lading or shipping document any covenant or agreement whereby the obligations of the owner or owners of said vessel to exercise due diHgence (to) properly equip, man, provision, and outfit said vessel, and to make said vessel seaworthy and capable of perform- ing her intended voyage, or whereby the obligations of the master, agents or servants to carefully handle and stow her cargo and to care 922, effect was given. But in The {g) The Silvia, 68 Fed. Rep. 230; Brantford City, 29 Fed. Rep. at p. 396 ; The Kensington, 88 Fed. Rep. 331 ; 94 The Iowa, 50 Fed. Rep. 561 (1892); Fed. Rep. 885; The Frey, 92 Fed. Rep, Botany Worsted Mills ■.. Knott, 76 gg^^ Although the contract may ex- Fed. Rep. 682 ; 82 Fed. Rep. 471, effect ■, ,. ^ >. t ^i, i ♦ „ ■. T j.1. 1 i i- J pressly stipulate for some other law, was refused. In the last-mentioned i^ j j^ > case the contract was made abroad ; in Botany Worsted Mills v. Knott, 76 Fed. the others it was made in the U. S. Rep. 582 ; 82 Fed. Rep. 471. 124 THE CONTRACT. Sect. 103a. for and properly deliver same, shall in any wise lie lessened, weakened or avoided. 3. That if the owner of any vessel transporting merchandise or property to or from any port in the United States of America shall exercise due diligence to make the said vessel in aU respects seaworthy and properly manned, equipped and supplied, neither the vessel, her owner or owners, agent, or charterers shall become or be held respon- sible for damage or loss resulting from faults or errors in navigation or in the management of said vessel ; nor shall the vessel, her owner or owners, charterers, agent or master be held liable for losses arising from dangers of the sea or other navigable waters, acts of God, or public enemies, or the inherent defect, quality, or vice of the thing carried, or from insufficiency of package, or seizure under legal process, or from loss resulting from any act or omission of the shipper or owner of the goods, his agent or representative, or from saving or attempting to save life or property at sea, or from any deviation in rendering such service. 4. That it shall be the duty of the owner or owners, masters or agent of any vessel transporting merchandise or property from or between ports of the United States and foreign ports to issue to shippers of any lawful merchandise a bill of lading, or shipping docu- ment stating, among other things, the marks necessary for identifi,ca- tion, number of packages, or quantity, stating whether it be carrier's or shipper's weight, and apparent order and condition of such mer- chandise or property delivered to and received by the owner, master, or agent of the vessel for transportation, and such document shall be primd facie evidence of the receipt of the merchandise therein described. 5. That for a violation of any of the provisions of this Act the agent, owner, or master of the vessel guilty of such violation, and who refuses to issue on demand the biU. of lading herein provided for, shall be liable to a fine not exceeding two thousand dollars. The amount of the fine and costs for such violation shall be a lien upon the vessel, whose agent, owner, or master is guilty of such violation, and such vessel may be libelled therefor in any district Court of the United States, within whose jurisdiction the vessel may be found. One-half of such penalty shall go to the party injured by such violation, and the remainder to the Government of the United States. 6. That this Act shall not be held to modify or repeal sections forty-two hundred and eighty-one, forty-two hundred and eighty-two, and forty-two hundred and eighty-three of the Revised Statutes of the United States, or any other statute defining the liability of vessels, their owners or representatives. 7. Sections one and four of this Act shall not apply to the trans- portation of live animals. 8. That this Act shall take effect from and after the first day of July, eighteen hundred and ninety-three. CAEJBIAGE IN A GENERAL SHIP. 125 103b. It will be seen that this Aot expresses two main purposes : Sect. 103b. Krst, that of prohibiting clauses which relieve shipowners from Prohibitions liahility for consequences of " negligence, fault or failure in proper °* *^® ^°^' loading, stowage, custody, care, or proper delivery" of cargo (s. 1), or which diminish or avoid the obligation to be diligent to make the vessel fit for the voyage (s. 2) ; Secondly, that of exempting shipoimiers from liability for consequences of " faults or errors in navigation or in the management" of the vessel, as well as of certain other perils, in cases where they have exercised "due diligence to make the said vessel in all respects seaworthy and properly manned, equipped and supplied " (s. 3) . First, as to the prohibitions. In effect they affirm the previous decisions of the United States Courts. The words of ss. 1 and 2 are so general that they seem to cover all exceptions of negligence in relation to the cargo. And so they probably prevent the ship- owner from obtaining any exemptions from responsibility for neglects, mistakes, or omissions of his servants, other than those which are given without need of express exception, but condition- ally, by sect. 3 of the Act {h). In Calderon v. Atlas Co. («), a bill of lading stipulated that, " In case any part of the goods cannot be found for delivery during the steamer's stay at the port of destina- tion they are to be forwarded by the first opportunity, when found, at the company's expense, the steamer not to be held liable for any claim for delay or otherwise." The goods had been shipped at New York for Sa vanilla ; on arrival at Savanilla they were over- looked and were carried on. In course of being brought to Savanilla, subsequently, in another vessel of the line, they were lost by the foundering of that vessel. It was held that there had been negligence in the failure to deliver. No proper search for the goods had been made. But, apart from that, it was held that the clause was avoided by the Act. " No such want of delivery can be excused under the terms of either the 1st or 2nd section of the Harter Aot." 103c. On the other hand, there seems to be no prohibition of Clauses ex- clauses framed to relieve a shipowner of the absolute warranty of uns^eawortU^ seaworthiness of the ship- on sailing, which, under United States ''®^^- law as well as English law, is implied in the absence of express (A) See, however, the limitation of the words of sect. 1, suggested in the Glenoohil, (1896) P. 10. Ci) 170 IT, S, 271. 126 THE CONTEACT. A Sect. 103c. agreement. On the contrary, the terms of sect. 2 of the Act seem implicitly to sanction such clauses, proyided they still leave on the shipowner an obligation of due diligence to make the ship fit ia hull and equipment, and to have the cargo properly stowed. Thus an exception of latent defects in the hull, or machinery, has heen held to be valid {k). And doubtless the clause, in common use, that the shipowner will not be responsible for any want of seaworthiness of the ship on sailing, not resulting from want of due diligence to make her seaworthy, would be treated as effectual. Expressclause But it is important to note that any such limitation of the implied warranty of seaworthiness must be by an express clause. Neither sect. 2, nor sect. 3, of the Harter Act has the effect of reducing the implied warranty to one, merely, that due diligence has been, or wiU be exercised to make the ship fit. In the Carib Prince (l), the cargo was damaged by water which escaped from a ballast tank, owing to a latent defect in a rivet. The shipowner was held liable for the loss, as resulting from a failure to have the ship seaworthy ; for sect. 3 of the Act had not modified that implied obligation. " The immunity from risks of a described character, where due diligence has been used, cannot be so extended as to cause the statute to say that the owner, when he has been duly diligent, is not only exempted in accordance with the tenor of the statute from the limited and designated risks which are named therein, but is also relieved, as respects every claim of every other description, from the duty of furnishing a seaworthy ship" {m). And that was held notwithstanding an exception of "latent defects " ; for this was considered not to expressly exclude the implied warranty of seaworthiness. Section 3. 103d. Turning now to sect. 3 of the Act, we find that the ship- owner is relieved from liability for faults or errors in " navigation," or in " management" of the ship, if he has exercised due diligence to make her fit. We have to consider (1) what is meant by this condition of due diligence; and (2) what is meant by faults or errors in navigation or in management. {k) The Prussia, 92 Fed. Eep. 838; shipowner is not relieved when there is 93 Fed. Eep. 837. And see The Carib an express warranty of seaworthiness; Prince, 170 TJ. S. 655, p. 660. The Georg Dumois, 88 Fed. Eep. 537 : (0 170 XJ. S. 665. Hine ». New York and Bermudez Co., (m) 170 U. S. p. 661. A fortiori the 68 Fed. Eep. 920 ; 73 Fed. Eep. 352. CARRIAGE IN A GENERAL SHIP, 127 " Due diligence " seems to be equivalent to reasonable diligence, Sect. lOSd. having regard to the circumstances known, or fairly to he expected, "Due dili- and to the nature of the voyage, and the cargo to be carried. It ■will suffice to satisfy the condition if such diligence has been exercised down to the sailing from the loading port {n). But the fitness of the ship at that time must be considered with reference to the cargo (o), and to the intended course of the voyage. In Botany Worsted Mills v. Knott {p), shipments of wool and sugar were so stowed that, on sailing, the drainage from the sugar did not reach the wool. But, on calling at an intermediate port, cargo was discharged from the forward part of the ship, as in- tended, with the result that owing to the alteration of trim the draiaage flowed to the wool, and damaged it. The shipowner was held liable. The damage was by improper stowage, and con- sequent imfitness, having regard to the intended course of the voyage. It is not enough to satisfy the condition that the shipowner has been personally dUigent, as by employing competent men to do the work. The condition requires that diligence to make her fit shall, in fact, have been exercised, by the shipowner himself, or by those whom he employs for the purpose {q). The shipowner " is respon- sible for any shortcomings of his agents or subordinates in making the steamer seaworthy at commencement of the voyage for the transportation of the particular cargo " (r). Oases occur in which the ship sails in such a condition as to be fit to start, but not fit to continue through the voyage unless something is done, such as the closing and fastening of a port, which can and would ordinarily be done during the voyage. In such cases the ship is not considered to be unseaworthy at starting (s) ; and an omission to do the thing required for safety, at the proper time, is treated as a fault in "navigation or management " (t) . Those words "include, at the least, the control during the voyage of everything («) See The Guadaloupe, 92 Fed. Rep. 919 ; 79 Fed. Rep. 998 ; The OoHma, 82 670. Fed. Rep. 665. (o) See the Alvena, 74 Fed. Rep. 252; (r) The Frey, 92 Fed. Rep. 667, at 79 Fed. Rep. 973. p. 669. (j)) 76 Fed. Rep. 582 ; 82 Fed. Rep. (s) Steel v. State Line, 3 A. 0. 72 ; 471. Hedley v. Pinkney, (1894) A. 0. 222; (?) DobeU V. Rossmore, (1896) 2 Q. B. The Silvia, 171 U. S. 462. Supra, s. 18. 408 ; The Flamborough, 69 Fed. Rep. {t] The Silvia, 171 U. S. 462 ; The 470 ; The Mary L. Peters, 68 Fed. Rep. British King-, 89 Fed, Rep. 872. mediate port. 128 THE CONTRACT. Sect. 103d. with whioli the vessel is equipped for the purpose of protecting her and her cargo against the inroad of the seas " (m). ■; Nayiga- I03e. Many cases have raised the question as to the meaning of "manage- "management." And it has been repeatedly held that the word ™^'^*' does not include acts of preparing the ship for the voyage. Thus omissions in the ship's equipment (x), negligence or mistake in the stowage (y), or so loading her that she wiU get out of safe trim on the voyage (z) are not faults in " management." Even if such defaults could be described as faults or errors in management they would, if they occurred at the commencement of the voyage, negative the condition of due diligence in making the ship fit, and so would exclude the exemption given by sect. 3. Acts at inter- "Where, however, the question is as to acts done at an intermediate port, a wider effect may probably be given to the word " manage- ment." In The Gruadaloupe (a), the ship was damaged in bad weather and put into a port for repairs. She was surveyed, and such repairs were done as were considered necessary. The cargo was not removed for the purpose of the examination. In the further course of the voyage the cargo was damaged owing to the bad condition of some of the beams ; and that had not been dis- covered in consequence of the non-removal of the cargo. It was held that, if an error had been committed, it was an error of judgment on the part of the master ; and that it pertained " to the management of the ship ; since the question arose after the voyage had commenced, and at a port of distress, far from the home port and away from any supervision by the owners, and was wholly subject to the master's determination." Where the act negligently done, or omitted, was one which was or ought to have been done during the course of the voyage, and had reference to the safety of the ship or cargo, it has generally been a fault in navigation or management. Thus, want of proper attention to the pumps (6) ; negligence in clearing the ship's decks of water (bb) ; or in ascertaining the condition of tanks before filling them (c) ; (m) Per Gray, J., 171 U. S. p. 466. 76 Fed. Eep. 682 ; 82 Fed. Eep. 471. {x) The Niagara, 77 Fed. Eep. 329 ; («) 92 Fed. Eep. 670. 84 Fed. Eep. 902. (4) The British King, 89 Fed. Eep. («/) The WhitUeburn, 89 Fed. Eep. 872 ; The Sandfield, 79 Fed. Eep. 371 ; 526 ; The Frey, 92 Fed. Eep. 667. Of. 92 Fed. Eep. 663. The Ferro, (1893) P. 38. (JJ) The Eodney, (1900) P. 112. (a) Botany Worsted Mills v. Knott, [a) The Grleuochil, (1896) P. 10. CAEEIAGE IN A GENERAL SHIP. 129 the omission to close a valve in a pipe througli which haUast-water Sect. 103e. was being emptied, so that it got into the cargo (d) ; the improper use of a donkey boiler, so as to cause a fire (e) ; have aU been treated as faults in " management." While the improper selection of an anchorage (/), and the neglect to properly heed a light upon a reef (g), were faults in "navigation," within sect. 3 of the Act. The operation of sect. 3 is not confined to matters which arise during the voyage at sea. In The Grlenochil (h), the damage occurred to the cargo in filling the ballast tanks during the discharge of the cargo at its destination. It was held to be covered by the section. " Exemptions extend from the time the cargo was taken on board to the discharge " (M). 103f. This third section applies only as between freighter and Sect. 3 applies shipowner. It does not, for example, relieve the shipowner from between responsibility for negligent navigation, causing damage to other freighter and ships («). Nor, in cases of collision where both ships are to blame, has it the effect of increasing the liability of the non- carrying ship. So that where ships A. and B. were in collision, for which they were both to blame, and A. was sunk with her cargo, the Act did not interfere with the ordinary rule under which B. (having paid the value of A.^s cargo) could set off one half the amount so paid against his liability for half the value of A.'s ship (y). It has also been held that the Act does not apply to passengers and their baggage (k) . Nor does sect. 3 affect the obligation of the shipowner to eon- Does not tribute in general average to sacrifices of cargo (l). And, on the owner to^^' other hand, it does not operate to enable the shipowner to claim claim in .... 1 . 11 -o 1 general contributions m general average, m cases where the sacrifice has average. been necessitated by the negligent navigation of his servants (m). It has, however, been held in the District Court of New York that where, in such a case, there have been sacrifices of both ship and {d) The Mexican Prince, 82 Fed. Hep. at p. 19. 484; 91 Fed. Rep. 1003. (i) The Delaware, 161 U. S. 459. (e) The Strathdon, 89 Fed. Rep. 374. (/) The Chattahoochee, 173 U. S. 640. (/) The Etona, 64 Fed. Rep. 880; (/c) TheKensington, SSFed.Rep. 331; 71 Fed. Rep. 895. 94 Fed. Rep. 885. y) The E. A. Shores, 73 Fed. Rep. (0 Of. The AUiauoa, 64 Fed. Rep. 324. 871. (A) (1896) P. 10. {m) The Irrawaddy, 171 U. S. 187. (hh) Per Gorell Barnes, J., (1896) P. Infra, s. 373c. 0. — C. K 130 THE CONTRACT. Sect. 103f. cargo, the owner of cargo can only bring an " action for general average adjustment" of the sacrifice of cargo on the terms of allowing the sacrifice of ship to be brought into the adjust- ment (n). Sect. 3, other exceptions. Literty to deviate. " Ship damage." 103g. The third section of the Act further relieves the ship- owner, where the " due diligence " condition is satisfied, from liability for " losses arising from dangers of the seas or other navi- gable waters, acts of Grod, or public enemies, or the inherent defect, quality, or vice, of the thing carried, or from insufficiency of package, or seizure under legal process, or from loss resulting from any act or omission of the shipper or owner of the goods, his agent or representative, or from saving or attempting to save life or property at sea, or from any deviation in i-endering such service." Presumably these provisions will be read as similar excep- tions in bills of lading have been read. The shipowner will not be allowed to rely upon them where his own negligence, or the negligence of his servants, has brought the excepted cause of loss into operation. Unless, indeed, that negligence is covered by the earlier exemption in the section, of losses " from faults or errors in navigation or in the management " of the vessel. The liberty to deviate to save life or property given by this section has been held not to extend beyond the necessity of the particular case. A steamer carrying cargo from San Francisco to Coos Bay found another steamer on the rogks, and having towed her off took her into a harbour, where she was pumped out, and lay safe, but in a position which might become dangerous. Tugs were there which could have towed her into San Francisco ; but the salving steamer herself took her to that port. It was held that that was an unjustifiable deviation (o). 104. In East India Co. v. Tod (p), the shipowners were not to be liable " in respect of goods damaged on board the ship, either in her outward or homeward-bound voyage, but such as shall by the condition and appearance of the package thereof, or by some other («) The Strathdon, 94 Fed. Rep. 206, per Thomas, J. The view taken seems to have been that the right of the cargo- owner is to recover a balance of general average on adjustment. But queers. His right is to have coutrihutions to his loss, not to have an "adjustment." The adjustment is only a convenient statement, and setting off, of the cross- claims. (o) lie Meyer, The Emily, 74 Fed. Rep. 881. (p) 1 Bro-wn's P. C. 405. CARRIAGE IN A GENERAL SHIP. 131 reasonable proof, appear to he ship damage." It was held, that Sect. 104. sMp damage meant such as might happen hy insufficiency of the ship, or hy the negligence of those in charge of her. An exception of " vermin" has heen held to cover damage hy " Vermin." rats eating the cargo, where reasonable care has been taken to keep the ship free from rats (q). 105. Sometimes the bill of lading excludes responsibility of the "Capable of shipowner for any insurable damage. A clause of this kind, viz., by insur- " The shipowner is not to be liable for any damage to any goods *"''®" which is capable of being covered by insurance," was held not to cover a loss of the goods by a theft committed while they were on board, either on the voyage or after arrival (r). Lush, J., said (s), "I do not agree that 'damage' is limited, as Mr. Cohen "Damage." contended, to partial damage or injury, as distinguished from a total destruction of the thing ; if goods were so much damaged as to be totally destroyed, that would be damage within the clause. But I think that it must be confined to cases where the goods receive damage from some peril which may be insured against, and that it does not extend to the case of a loss which is occasioned not by any damage or injury, but by the total bodily abstraction of the thing " (t). Such a clause will not generally relieve the shipowner from liability for consequences of unseaworthiness of the ship, or of negligence of the crew (u). Nor does such a clause -protect the shipowner from liability to contribute to a general average sacrifice of the cargo (x). For " the office of the bill of lading is to provide for the rights and liabilities of the parties in reference to the contract to carry, and is not concerned with liabilities to contribution to general average ; (j) The Timor, 67 Fed. Rep. 366, case was, however, decided in favour of (1895). Cf. Stevens v. Nav. Gen. the shipowner on another ground. Italiana, 39 Ted. Rep. 562 (1889). («) Supra, sects. 77, 79. , , _ , _ . , J /I J. («) Crooks V. AUen, 5 Q. B. D. 38 ; (r) Taylor v. Liverpool and Great „ , . .^ „ , -.t .i ci , • ,~, tTT i oi T • ^ T r. n /I -r> Schmidt V. Royal Mail Steamship Co., Western Steamship Co., L.R., 9 Q. B. ,, ,- t l-, „.„ a , , , r ' 45 L. J., Ad. 646. So also a clause giving the shipowner the benefit of any (s) L. R., 9 Q. B. at p. 550. insurance of the goods did not relieve (f) In Moore ». Harris, 45 L. J., P. C. him from liability to contribute in 56, a similar clause was not relied upon general average, though the insurers in an action for damage to tea by fumes had paid the loss ; The Roanoke, 59 from disinfectants used on board. The Fed. Rep. 161. k2 132 THE CONTEACT. Sect. 103. and unless the contrary appears the words used must be so construed " (y). Where carriers had quoted rates which were not to cover any " insurance risk," hut were " simply for freight," it was held that this reservation did not relieve them from the ordinary liability of carriers (z). ' And an express agreement by the carrier to insure for the shipper does not relieve the carrier from liability for risks covered by an insurance so effected (a). ^^*5™t*?^® 106, In some cases the bill of lading limits the time within made beiore ° remoTal. which claims under it may be made. For example, in Moore v. Harris (b), the stipulation was, " no damage that can be insured against wiU be paid for, nor will any claim whatever be admitted unless made before the goods are removed." The goods were " to be delivered from the ship's deck, where the ship's responsibility shall cease, at the Port of Montreal .... unto the Grand Trunk Eail. Co., and by them to be forwarded thence per railway to the station nearest to Toronto, and at the aforesaid station delivered to, &c." On the question whether the removal referred to in the exception related to that at Montreal, or at Toronto, the Court thought the latter the more consistent with the rest of the bill of lading. But the main question was whether the exception related to all damage, or only to damage that was discoverable without unpacking the tea. The Court considered that it was not confined to apparent damage. " If any limitation of the condition could be implied, it could not reasonably go further than to exclude such damage only as could not on an examination of the packages, conducted with proper care and skill at the place of removal, have been discovered, and their lordships think it appears upon the evidence that if such an examination had taken place, either at the shipping sheds at Montreal or the railway station at Toronto, the damage complained of might have been discovered" (c). Througli bills 107. It is now a frequent practice in trades in which goods have ^' to make a transit which is broken into several parts, to use "through bills of lading." The transit is generally, as in the (y) Per Lush, J., 6 Q. B. D. at p. 40, («) Hill v. Soott, (1895) 2 Q. B. 371, Of. Burton v. English, 10 Q. B. D. 426; 713. 12 Q. B. D. 218. (}) 45 L. J., P. 0. 65. («) Sutton V. Cioeri, 15 A. C. 144. {e) 46 L. J., P. C. p. 61. CARRIAGE IN A GENERAL SHIP. 138 cotton trade with the United States, partly by land and partly by Sect. J07, sea ; or it may be by a series of ships, 'wholly by sea. The land journey may have to be performed. over several different railways, and more than one vessel may be employed in the sea transit (d) . When a contract for a through journey is made with a carrier or contractor, he is answerable for its complete performance, although it may be intended that some part of the carrying shall be done by others (e), unless the contract expressly limits his liability to his own part of the journey (/). Apart, then, from such a limitation, the first carrier with whom the contract is made may be liable for a breach of it after the goods have left his hands. But the carrier in whose hands they were when the breach was committed is also generally liable, if the through contract was made for his benefit, and with his authority (g) ; and, on the other band, he is entitled to the benefit of the exceptions of liability which the contract may contain (h) . In Gill V. Manchester, Sheffield and Lincolnshire Rail Co. («), a cow had been booked by the Grreat Northern Rail. Co. from Doncaster through to Sheffield, partly over the- defendant's line ; the action was brought for damage to the cow, due to negligence in the delivery of her from the defendant's railway at Sheffield. ((2) See, for example, G-reeyea v. West the desired result without an amend- India, &o. Co., 22 L. T. 615. The ment of the Bills of Lading Act. See a relationship hetween these through bills discussion of the subject, with sugges- . of lading, and biUs of lading for goods tions for the amendment of the Act, in a "shipped" for a "voyage," has not paper, by the present writer, " On some been settled. It is doubtful whether a defeotsintheBiUsof LadingAot, 1855," through bUl of lading is within the BiUs Law Quarterly Review, vol. 6, p. 289. of Lading Act, 1855. Also, there are (^j Muschamp v. Lancaster and several practical difficulties in oonneo- Preston Rail. Co., 8 M. & W. 421 ; tion with the use of through bills of Bristol and Exeter Rail. Co. v. Collins, lading ; owing mainly to the fact that 29 L. J., Ex. 51 ; Gt. 'Westem Rail Co. the ship in which the ocean transit is ,„. Blake, 31 L. J., Ex. 346 ; Thomas v. made is not, generally, ascertained when Ehymney Rail. Co., L. R., 6 Q. B. 266. the thrpugh biU of lading is given. ^^^ ^unz v. S. B. Rail. Co., L. R., 4 The result is that the consignee is often q_ ^ ggg. ^^^^ ^ jj- jj^jj ^^^ ^ ^ _ not able to proceed against the ship ; in O B 1 while the raUway company, which " ^^"^^^^^ ^_ ^ ^ ^^ ^ ^^ ongmally makes the contract, uBuaUy ^^^ ^ ^ ^^^ ^^ ^_ ^ ^ ^ ^' undertakes no responsibmty tor the _ „^„ „« ■« , „, ,, , ^ , „, ., Ran. Co., L. R., 8 Q. B. 186. But of. goods after they have left its posses- „ . , ' , „ ' „ ., „ ~ „. sion. An attempt has recently been Bristol and Exeter Rail. Co. i/. Collins, made in the cotton trade to establish a ' '' system of through bills of lading with W ^aU v. N. E. RaU. Co., L. R., 10 Bubordinate ocean biUs of lading ; but it Q. B. 437. is questionable whether this can produce (») L. R., 8 Q. B. 186, 134 THE CONTEACT. Sect. 107. It appeared that there was an agreement between the companies for interchange of- traffic and through booking, and for an appor- tionment of the through fares. Held, that either company might be sued for the damage. Mellor, J., said, " In our opinion the Great Northern Eail. Co. became, by virtue of their agreement with the defendants, the agents of the latter, to make the contract for the carriage of the cow with the plaintiff." And, during the argument, Blackburn, J., said, " We need not consider whether the two companies are partners ; the traffic is carried on for the joint benefit of the two, so that they are joint principals; and either may be sued." Under such circumstances, then, it seems that the carriers subse- quent to the first, who made the contract, are also liable for the proper performance of it throughout the journey. In Hayes v. South Wales Rail. Co. {h), an action was brought for the loss of some pigs shipped at Cork, in a steamer belonging to a Mr. Redmond, for Milford ; to be sent thence by the South Wales and Great Western Railway to London. The freight was paid at Cork to Redmond's agents, and a freight receipt note was given in the name under which he traded. It appeared that the steamer was worked between Cork and Milford in connection with the South Wales Railway, under an agreement by which the through fares were to be apportioned; and by which it was agreed that the traffic should be booked through by Redmond, or by the company, according to the direction in which it was going. Held, by the Court of Common Pleas in Ireland, that the through contract was made not only on behalf of the shipowner, but also for the railway company ; and that both parties were liable as joint contracting parties for the entire journey {I). So that the railway company were liable for a loss of the pigs on the voyage to Milford, due to a default of the captain of the steamer. On the other hand, in White v. South Eastern Rail. Co. (m), it was held that the defendants were not liable for the loss of some fruit consigned from Paris to Charing Cross, there being no evidence that the damage occurred on their line, nor that there was any partnership or quasi-partnership between them and the Great (7c) 9 Ir. C. L. E. 474. Cf. M'Court (?) See also Keys v. Belfast and Bal- V. L. & N. "W. Rail. Co., Ir. E., 3 0. L. lymena RaU. Co., 8 Ir. C. L. K. 167. 107, 462. (ot) Times, March Srd, 1885. CARRIAGE IN A GENERAL SHIP. 135 Nortlieni Eail. Co. of Prance, by whom the fruit was carried on Sect. 107. the first part of the journey. Railway Companies. 108. By the Eailway and Canal Traffic Act, 1854 (ra), the Effect of legislature restricted the right of railway and canal companies to Oan^Traffio limit their liability for goods carried by them. The effect of •^°*> ^^®** sect. 7 of that Act, as finally settled by the House of Lords in Peek V. l^orth Staffordshire Eail. Co. (o), is that the liability of a railway company for loss of, or injury to, " goods or things in the receiving, forwarding, or delivering thereof, occasioned by the neglect or default of such company or its servants," can only be limited by them by such conditions as the Court or judge may determine to be just and reasonable. And, further, that any con- dition limiting the company's liability mu^t be embodied in a special contract, in writing, between the company and the owner or persons delivering the goods to the company, which must be signed by such owner or person. By sect. 31 of the Eailways Clauses Act, 1863 {p), the pro- steamers of visions of that statute apply to the traffic by steam vessels of panies"^ ''°"'" railway companies who are authorised by a special Act, incorpo- rating Part IV. of the Eailways Clauses Act, 1863, to own or use steamers for carrying on communication between any towns or ports {q). And by the Eailway Eegulation Amendment Act, 1871 (r), where a railway company, under a contract for carrying animals or goods by sea, procures them to be carried in a vessel, which does not belong to the company, the company is answer- able in the same manner as it would be if the steamer belonged to itself («). Thus, a railway company which carries animals or goods by sea maybe in a different position from that of an ordinary shipowner; both as to the kind of contract it can make, and as to the manner of making the contract {t). («) 17 & 18 Vict. 0. 31. repealed by the Railway and Canal (o) 10 H. L. Cas. 473. Traffic Act, 1888 (61 & 62 Vict. c. 26). (r) 34 & 35 Vict. >;. 78, s. 12. (^) 26 & 27 Vict. 0. 92, s. 31. )^^ j^^^^^ ^_ ^^_ ^^ Co., 2 A. 0. ig) The similar general enactment in 792 ; Cohen v. S. E. RaU. Co., 2 Ex. D. sect. 16 of the Regulation of Railways 263. Act, 1868 (31 & 32 Vict. c. 119), was if) Ibid. 136 THE CONTEACT. Sect. 109. 109. By sect. 14 of tlie Act of 1868, however, tlie need of a Exceptions on written and signed contract in these cases seems to he avoided. reig no e. rjr^^^ section is as follows : — " Where a company, hy through hooking, contracts to carry any animals, luggage, or goods from place to place, partly hy. railway and partly hy sea, or partly hy canal and partly hy sea, a condition exempting the company from liahility for any loss or damage which may arise during the carriage of such animals, luggage or goods hy sea from the act of God, the king's enemies, fire, accidents from machinery, hollers and steam, and all and' every other dangers and accidents of the^ seas^ rivers, and naviga- tion of whatever nature and kind soever, shall, if puhlished in a conspicuous manner in the oflBce where [such through hooking is effected, and if printed in a legihle manner on the receipt or freight note which the company gives for such animals, luggage or goods, he valid as part of the contract hetween the consignor of such animals, luggage or goods and the company, in the same manner as if the company had -signed and delivered to the con- signor a hill of lading containing such condition («). For the purpose of this section the word ' company ' includes the owners, lessees or managers of any canal or other inland navigation." Decisions as 110. There have heen numerous decisions as to what conditions conditions. ^ ^^^ ^^^ ^^® ^°*' j^^^ ^^^ reasonahle within the Railway and Canal Traffic Act, 185-1 (»). Exemptions of liahility for the defaults and neglects of the company's servants or sfgenfs, or of the servants of other persons whom the company have procured to carry out their contract, are not considered to he so (y). And where a condition that the company shall not he responsihle for loss, or damage, or delay is framed so generally that it will cover losses or delays caused hy the improper acts or neglects of the company's servants, it is in general held to he unreasonahle (z). The same is true, although the condition may confine such (m) The last part of this sentence (s) Peek v. N. Staff. Kail. Co., 10 seems to be a mistake. A signature by H. L. Cas. 474 ; Rooth v. N. E. Rail. the consignor was the former require- Co., L. E., 2 Ex. 173 ; Ashendon v. ment, to be got rid of : supra, s. 108. L. B. & S. C. Eail. Co., 6 Ex. D. 190 ; , , „ -rr J -r. ., .N, . Cutler V. North London EaU. Co., 19 [x] See Hodges on Eailways, Ch. XVI. r. -d -rv ox a ^ ji aiu ., o •' ' Q. B. D. 64. As to delay, see Alldayi'. Get. Western EaU. Co., 34 L. J., Q. B. S. (!/) Doolan v. Mid, Eail. Co., 2 A. C. Cf. Wise i>. (Jt. Western EaU. Co., 25 792, I^. J., Ex. 258. CARRIAGE IN A GENERAL SHIP. 137 general exception to the case of goods wMcli may be insufficiently Sect. 110. or improperly packed («). But in Lewis v. Great Western Eail. Oo. (b), it was held that a condition exempting liahility generally where the goods were incorrectly descrihed was reasonahle. And in the same ease a condition disallowing any claims not made within «, certain time after delivery was held reasonable. And where the company is willing to carry the goods at a fair rate, but makes a special arrangement to carry at a lower rate, on the terms of being exempted from all liability for loss or damage or delay in transit, that condition is not unreasonable, although it may cover acts and neglects of the company's servants (c). Sect. 7 of the Act only limits the Railway Co.'s power to make contracts which exempt it from liability for the " neglect or default of such company or its servants." It has been held that those Theft, words do not cover thefts by servants of the company, which have occurred without negligence. So that, as regards such thefts, the position of railway companies is the same as before the Act; they can by contract, or notice brought home to the customer, exempt themselves from liability for such thefts, although the con- tract or notice may be an unreasonable one (d). 111. With regard to luggage carried in a ship with a passenger. Passenger's the liability of the shipowner, apart from contract, appears to be "^SS^S^- that of a common carrier of goods, imless the luggage was under the passenger's own control (e). But a contract on the subject is usually made with the passenger, which is generally expressed on his ticket, or the receipt for his passage-money (/). By such a contract the shipowner may relieve himself of all («) Simons v. Gt. Western Eail. Co., (/) As to conditions on the hack of 26 L. J., 0. P. 25. the ticket, see Henderson v. Stevenson, (b) 29 L. J., Ex. 425. L. R., 2 H. L. (Sc.) 470 ; Harris v. (c) a. W. Eail. Co. V. McCarthy, 12 Gt. 'Weatem RaU. Co., 1 Q. B. D. 616 ; A. C. 218; M. S. & L. Eail. Co. v. Parker ». S. E. Rail. Co., 2 C. P. D. Brown, 8 A. C. 703; Lewis v. Gt. 416; Burke v. S. E. Eail. Co., 5 C. P. D. "Western Rail. Co., 3 Q. B. D. 195; 1. As to the sufficiency of notice to the Simons v. Gt. Western Rail. Co., 26 passenger, Acton v. Castle &o. Co., 1 L. J., C. P. 25; cf. Dickson -n. Great Com. Ca. 135; Richardson i). Rowntree, Northern RaU. Co., 18 Q. B. D. 176. (1894) A. C. 217 ; The Majestic, 166 (d) Shaw V. G. W. Rail. Co., (1894) 1 U. S. 375 (1897). Reference to general Q. B. 373. notices, Watkins v. RymiU, 10 Q. B. D. (e) Stipra, s. 6. 178. 138 THE CONTRACT. "Not accountable imlesa bill of lading Sect. 111. responsibility for the safety of the luggage, including all risks of loss from negligent or wrongful acts of the master or crew {g). In Wilton v.. Eoyal Atlantic Mail Steam Navigation Co. (Ji), a condition on the passage ticket was as follows : " The ship will not be accountable for luggage, goods, or other description of property, unless bills of* lading have been signed therefor. Each first and second class adult passenger allowed to have twenty cubic feet of luggage free, but no merchandise, plate, jewellery, precious stones, specie, or bullion will be carried as luggage." It was held that the company were not liable for luggage lost through the captain's negligence, for which no bOl of lading had been asked or given, whether it occupied more, or less, than twenty cubic feet. Where, however, the contract is " for or in respect of a passage as a steerage passenger in any ship, or of a passage as a cabin passenger in any emigrant ship, proceeding from the British Islands to any port out of Europe and not within the Medi- terranean Sea," the contract ticket is to be " in a form approved by the Board of Trade and published in the London Grazette " (»'). The forms which have been approved are nearly identical with those set out in the schedule to the Passengers Act, 1865 [k). It has not been decided whether, and how far, these provisions and forms control the shipowner's right to set conditions upon his responsibility for luggage. Emigiant ships. {g) P. & O. Co. V. Shand, 12 L. T. 808 ; Taubman v. Pacific Steam Nav. Co., 26 L. T. 704; Haigh v. Eoyal Mail S. P. Co., 52 L. J., Q. B. 640. (A) 30 L. J., C. P. 369. (i) M. S. Act, 1894, s. 320. An "emigrant ship" is by sect. 268 defined to mean a ship carrying more than 50 steerage passengers ; or more than one steerage passenger to 33 registered tons, in the case of a sailing-ship, or 20 regis- tered tons in the case of a steamship. {k) 18 & 19 Viot. u. 119. See London Gazette, Dec. 14, 1894. ( 139 ) CHAPTER IV. CONTRACTS BY CHAETER PARTY. SEOT. Charters -whioli are and are not con- tracts of carriage — Distinction , , 112 ■With, regard to third persons 113 Illustrations of douhtfvd charters — The test generally is, whose ser- vants are to he in charge ? 114 Omoa, &o. Co. v. Huntley ..,..■.. 116 Cases in which possession passed to charterer ...., 116 Classes of charter parties which are contracts of carriage 117 Porm of charter party 118 Usually in writing 119 Stamp 120 Shipbroker's commission — Where several brokers employed — Broker's undertaking to procure ship , 121 Clause in charter party as to broker's commission 122 Clause as to consignment of ship — Righttoproourehomewardfreight from the port of discharge 123 Right to collect freights 124 Agent for charterer — Authority — Ratification 125 He cannot alter charter party .... 126 Rights and liabilities of an undis- closed principal 127 Liability of agent — Cesser clause . . 128 Warranty of authority 129 Personally bound unless the agency appears clearly .,.,.... 130 Berth-notes 130a Custom to make agent liable 131 SECT. Principal cannot be sued after judg- ment against agent 132 Representations in a charter party . 133 Must generally be made in the document to have effect 134 When is a representation a promise? 135 Representations which are promises must generally be true, or charterer not bound to load 136 Existence of ship — Implied con- dition 137 Statement of nationality 138 Statement that vessel is a steam- ship 139 Statement as to class 140 Statement as to measurement . . , , 141 Express guarantees — Vessel's draught — Cases of specified cargo 141a "Say about 1,100 tons" 142 Statement of ship's position 143 Representation: "tight, staunch, &c." — ^Distinction from ordinary warranty of seaworthiness 144 Mtness for cargo a condition pre- cedent 145 In case of time charter 146 Character of shipowner's under- takings 147 When does the exception clause apply? 148 It does not affect charterer's right to cancel for not arriving in time. 149 Does it relate to charterer as well as owner p 150 112. We come now to cases in whicli the wliole, or substantially Charters . Ill which are and the whole, of the ship s services are employed by one person or set are not con- of persons. The agreement for this is usually expressed in a oaniage— distinction. 140 THE CONTEACT. Sect. lis. document called a charter party ; but all charter parties are not contracts of carriage. Sometimes the ship itself, and the control over her working and navigation, are transferred for the time being to the persons who use her. In such cases the contract is really one of letting the ship, and, subject to the express terms of the charter party, the liabilities of the shipowner and the charterer to one another are to be determined by the law which relates to the hiring of chattels (a), and not by reference to the liabilities of carriers and shippers. Also, a charter party may be made for other purposes than the carriage of goods; for example, for passenger service, or for towage or salvage. These, also, are not such contracts as fall within the scope of this book, and the rules with regard to contracts of carriage may in some cases not be applicable to them. Most commonly, however, charter parties are made for the purpose of securing to the charterer the use merely of the ship on a particular voyage or series of voyages. He does not desire to interfere with the manner in which she is to be navigated, nor is the shipowner willing to part with his control over her. The charterer is content with the owner's undertaking that the voyage shall be performed, and that the vessel's services shall be at his disposal. The whole control and management of the ship is therefore left undisturbed in the hands of the owner, who remains in possession by his servants, the master and crew. In such a case the shipowner acts as a carrier of the goods upon the agreed terms {b). Contracts in which the possession of the ship is handed over to the charterer are very much less frequent. But they are at times made, and occasionally in such doubtful shapes that it is difficult to tell whether, in fact, the possession does or does not pass to him. But when that does take place, so that the charterer, and not the owner, is in actual control of the ship, it cannot properly be said that the relation between the owner and the charterer is that of carrier and freighter. And that is still true, though the owner may have contracted to make and keep the ship fit for the work, (a) As to 'wMoh, see Eotertson v. 46. Liability of hirer to owner for acts Amazon Tug and Lighterage Co., 7 Q. of servants: Coupe Co. v. Maddiok, B. D. 598 ; Hyman v. Nye, 6 Q. B. D. Moqn o n B 4T? 685 ; McCarthy v. Young, 30 L. J., Ex. ^ ' ^' ' "^• 227. Implied warranty of fitness of (*) As to his liability at common law, hired tug : The Undaunted, 11 P. T>. see Chap. I. CONTEACtS BY CHAKTER PARTY. 141 aad to provide her necessary stores, and even though he may also Sect, 113. have undertaken to supply and pay the crew (c). 113. This difference between charters which do, and do not, Witli regard , to tmrd per- pass the possession of the vessel, and the control over her, to the sona. charterer, also gives rise to important differences with regard to the liabilities of the shipowner and the charterer to persons who are strangers to the contract. For instance, as to damage which may be done by the improper navigation of the ship. Also as to their respective responsibilities upon contracts made by the master with third persons ; e.g., with shippers of goods, where the charterer has used the ship as a general ship. These depend upon the question, whose agent the master is in mating the contracts. And this, as we shall see, generally depends upon whether he is, under the charter party, the servant of the owner or of the charterer {d). Hence, though charter parties which are contracts of letting and not of carriage do not belong to our subject, it is necessary to distinguish them ; more particularly with a view to the effect of sub- contracts of carriage made by the master or charterer, and to questions regarding the shipowner's liens. 114. Where a ship is completely transferred to a hirer for a Illustrations period of time, and the shipowner during that time has nothing charters, whatever to do with the appointment of her officers or crew, or with the working or management of her, the case is clearly one of letting and hiring (e). But where both owner and charterer take part in working the ship, or where, while the owner actually works her, the charterer has the disposal of her services, and directs what voyages she shall perform and what cargoes she shall take, ambiguities are apt to occur. The following cases illustrate such doubtful charters : — In Penton v. The Dublin Steam Packet Co. (/), a steamer was chartered for six months to John Dails, at the rate of 201. a week, " the owners to keep the vessel in good and sufficient order for the conveyance of goods, merchandise and passengers to and from Newcastle and Q-oole, or any other coasting station which the said J. D. may from time to time employ the vessel in. The said J. D. (c) Of. Newterry v. Colvin, 8 B. & C. (e) See Meiklereid v. West, 1 Q. B. D. 166 ; 7 Bing. 190 ; 1 01. & F. 283. 428 ; Reeve v. Davis, 1 A. & B. 312. (d) See this discussed vnfra. Chap. V. (/) 8 A. & E. 835. 143 THE CONTRACT. Sect. 114. to pay all distursements, including Harbour dues, pilotages, seamen's and captain's wages and coals and oil, tallow, &c. for the engines, and to insure the vessel for 3,000^., the policy to be deposited with the company." The appointment and power of dismissal of the officers and crew were in fact left with the owners. The question was whether the owners were liable for a collision caused by improper navigation of the vessel. And it was held that they were ; for the charter left the possession and care of the vessel in their hands, and the crew were their servants {g). In Trinity House v. Clark {h) the vessel was chartered to the Grovermnent for transport purposes at the rate of 20s. a ton of the register tonnage for each calendar month during the service. The owners undertook that the ship should be in good condition and properly provided and manned ; and that the master should receive on board such soldiers, &c. as directed, " and proceed with them to such places in the European seas as he should be directed, under such convoy as the commissioners or officers iu chief whose com- mand he should be under should direct, and land and deliver the same, and so from time to time during his continuance ia the service." The appointment of the master and crew was left with the owners. Upon a question arising as to the liability of the owners of the ship to pay light dues, it was held that the effect of the charter party was to transfer possession of her to the Crown during the term of her service (»). (y) Of. The Great Eastern, L. E., 2 interfere with the full and free nse of A. & E. 88 ; Dalzell i>. Tjrei, 28 L. J., the ship, which they have let to hire for Q. B. 52 ; Dean v. Hogg, 10 Bing. 345 ; a term, but as subsidiary and subservient Steel j;. Lester, 3 C. P. D. 121. to such use. It is not only consistent (A) 4 M. & S. 288. with the entire ownership and posses- (i) Lord EUenborough, giving judg- sion of the vessel on the part of the ment,said: — "It is evident that the ser- Crown during the period for which it is vice contracted for is of the highest im- let, but it is a farther means provided to portance to the country, and that its most enable the Crown, fully and beneficially valuable interests may depend upon the to enjoy the sajue, by letting at the immediate execution of such service as same time out to the Crown the services this charter party authorizes the Crown biewise of those by whom the vessel to require, and the proprietors of the might be best conducted under the ship agree to perform. Whatever con- direction of the Crown, in the proseou- struction of the contract enables the tion of the object for which the Crown Crown to enforce a prompt obedience to hired it. The vessel, therefore, is not its terms, must be most agreeable to its only hired, but along with it the services spirit and intent. * * « * g^^ q£ g^ certain number of persons paid The possession, such as it is, of the by the proprietors, and these services master and crew, is not retained by the are necessary to the use of the vessel, proprietors of the ship, to restrain or which the proprietors have expressly CONTEACTS BY CHARTER PARTY. 143 Lord EUenborougli laid stress in his judgment upon the otjeots Sect. 114. wMcli the charter party was to serve. Also he relied upon the expressions used in it, hj which the vessel was " granted, and to hire and freight let." These, he said, were proper words of lease, and would of themselves pass the possession. But the use of such words has not been regarded as at all conclusive (/). On each charter party the question is, who, on the whole instrument taken together, was intended to have the possession of and to work the vessel ? Whose servants were those in charge of her to be ? The test TTTi 11- » 1 n 1 J • generally is, Where they are the shipowner s, then generally he acts as a earner whose ser- of goods for the charterer ; while if they are to be servants of the ^g^ charge ? charterer, the shipowner generally ceases to be a carrier, and the contract is really one of hiruig (A). 115. In the Omoa and Cleland Coal and Iron Co. v. Huntley (?) Omoa, &c. a steamer was " let for the sole use of the charterers, and for their Hiintley. benefit, for the space of six months," with option to take her longer ; and the services to be rendered were thus described : " The said vessel or steamer being tight, staunch and strong, and in every way fitted for the voyage or service, and so maintained by owners, vrith a full complement of officers, seamen, engineers and firemen, adapted to a steamer of her class, shall be placed under the direc- tion of the charterer, merchant, or his assigns, to be by Tn'm or them employed for the conveyance of lawful merchandise ^ pas- sengers as follows : between ports in the United Kingdom and the continent, Baltic and Black Sea being excluded between 1st September and 1st March, as may be ordered by the charterers, the cargoes to be laden or discharged in any dock or other safe place the charterers may order." warranted to the Crown. It is the same Braddiok, 2 B. & P., N. B. 182; thing as the hire of a waggon and team HodgMnson v. Femie, 26 L. J. , for a certain term, the proprietor of the C. P. 217 ; tTnited States v. Shea, 152 waggon stipulating that the waggon U. S. 178. shonld be driven, and the horses taken ^^.j g^^ j^^^y^ ^_ Lewis, 2 B. & B. care of, by his own waggoner and boy, . , „ whom he has to feed. In such a case it ,,. _ „ „ could hardly be made a question that . W BaumwoU, &c. v. IVmess, (1893) the waggon and team were in the A- C 8 ; Manchester Trust ». Fumess, possession of the hirer during the bar- (IS^^) 2 Q. B. 282, 539. See a common vest, or whatever the term might be for *°™ °* *""^ °'^^'*«^' ^PP" ^- ^ ^^^° '"^ which they were hired. This is, indeed, ^ ^°™ ^'^^ *^« charterer the right to idem per idem, but as the instance is ^ppomt^the oaptam, The Beeswing, 53 more familiar, it serves to put the point in a clearer Ught." Cf. Fletcher v. (?) 2 C. P. D. 464. 144 THE CONTRACT. Sect. 115. fjijjQ charterers were to have the whole reach of the vessel, reserving space to the owner for the crew, &c. The captain was to use all dispatch in prosecuting the voyages, and the crew were to " render all customary assistance in loading and discharging." Also the captain was to sign hUls of lading as presented, without prejudice, to the charter party, and to follow the chai-terers' instruc- tions " as regards loading, discharging and departui'e." Coals, port charges, pilotage and extra lahom-age, were to be paid for by the charterers ; but the owner was to pay the crew and find all ship's stores and other necessaries. The freight for the hire of the steamer was to be " 410^. per month, payable in advance monthly, until the vessel is again returned by the charterers," after notice. " The vessel to be delivered up on the termination of this charter party on Clyde or Forth, All derelicts and salvages for owner's and charterers' equal benefit." The captain was also to furnish the charterers with a daily copy of the log, if required. In the course of a voyage under this contract the vessel was wrecked, owing to negligence of the master and crew ; and the question arose, whether the owner was liable to the chai'terers for that negligence. It was held that he was ; for by the charter pai-ty it was intended that, so far as concerned the navigation of the vessel, he was to retain her under his control for the purpose of carrying out his contract. The charterers might direct where the vessel was to go, and with what she was to be laden, but the owner remained in all respects accountable for the manner in which she might be navi- gated (m). Cases in 116. On the other hand, in the following cases, the ship passed session passed to the possession of the charterers. In Newberry v. Colvin (w), a too arterer, ygggg]^ ^^^ chartered to one Betham, who was by the charter appointed to the command, for a voyage to Calcutta and hack to London. The owner undertook that the ship was tight, &c., and properly victualled, provided and manned ; that the number of the crew should be kept up to thirty-two at his expense ; and that he would keep her properly victualled and provided during the voyage. Betham undertook to navigate the ship to the utmost of his skill and ability, and to take the ship into his service for twelve (ot) Cf. Wagstafl v. Anderson, 4 {«) 8 B. & 0. 166 ; 7 Bing. 190 ; 1 CI. C. P. D. 283; 5 0. P. D. 171. & P. 283. CONTRACTS BY CHAETEE PAETY. 145 montlis certain, or so mucli longer as the voyage should require, Sect. lie. and to pay for the use or hire of her at the rate of 25s. per ton per month. Betham was to take such cargo as he might think proper, reserving certain space for the owners, and the freights on the cargo were to he for his benefit ; subject, however, as to the homewai-d freights, to an arrangement by which the owner was to be secured payment from them of the chartered freight. He was also to be at liberty to employ the ship in the East Indies upon in- termediate voyages, for a certain limited period, at the same time- freight. Further, it was provided that an agent was to be put on board by the owner, who was to have the sole management of the ship's stores and provisions, and the issuing of them, and to have the sole ordering and purchasing of any needed supplies. And it was provided that in case Betham should proceed with the ship to any port or place other than Madeira, Madras and Calcutta, with- out the leave of the agent, or if he should be guilty of any breach of the contract, he should be and become divested of any further command of or in the ship, and it should thereupon be lawful for the agent to appoint another commander in his place. Also, that in the event of certain defaults by Betham, the agent was to be allowed to load a homeward cargo on the owner's account, without prejudice to the charter party. Upon this charter party a question arose as to the liability of the shipowner to merchants who had shipped goods from Calcutta to London under a bill of lading given by Betham. The shippers having had notice of the charter party, and received a copy of it, from the owner's agent on board the ship. Lord Tenterden deli- vered the considered judgment of the Court of King's Bench in iavour of the shippers. " Taking the whole together, it appears to be in substance nothing more than the appointment of a master, upon an undertaking by him that the ship shall earn a certain sum ; and all beyond that sum was to be for his own benefit, but all loss was to be made good by him " (o) . This was reversed by the Exchequer Chamber, on the ground that in putting up the ship as a general ship, and signing bUls of lading, the captain was not acting as servant or agent of the owner, but as himself the temporary owner. And this view was confirmed by the House of Lords ; when Lord Tenterden appears to have changed his opinion. (o) 8 B. & C. at p. 183. C. C. L 146 THE CONTKACT. Sect. 116. In Beloher v. Capper [p), a vessel had been chartered for six months certain, during which the charterer was to " possess the entire and exclusive use and disposal of the whole reach and burthen of the vessel, with the exception of the space occupied with the cabin together with room for the usual accommodation of the crew and for the stowage of the ship's stores and provisions." The master was to take on board and stow goods as and as often as required, and proceed upon the voyages directed by the charterer, and deliver the goods agreeably to bills of lading, subject to certain exceptions. The owners were to keep the vessel tight, &o., and properly manned and provided. And the charterer was to pay 22s. per ton per month of the employment. Further, it was provided that the charterer should have the privilege of puttiag in a master of his own appointment, he finding the cabin with all stores, and paying his wages, the owners allowing the charterer whatever rate of wages they paid their own masters. And it was agreed that, as the master was to be appointed by the charterer to superintend his interest, the owners were not to be responsible for his acts and conduct should he deviate from the charter party ; but the charterer held himself responsible to the owners for the master's honest and correct conduct, and strict integrity, whilst he should have the navigation, of their vessel. Under this contract a question arose as to whether the shipowner had a lien upon goods on board for the hire of the vessel. It was held that he was not in possession of the goods, and had no Hen. Tindal, 0. J., in dehvering the judgment, said : — " In each case the whole contract must be taken together, and due effect given to the several clauses that counteract or qualify each other ; and thus it often happens that the same expression will bear different mean- ings, and require a different interpretation, according to the context of the instrument in which they are found. In construing this charter party, therefore, we have not relied implicitly upon the interpretation put by judges in other cases on any particular expression also found in this contract ; but we have collected the intention of the contracting parties from the whole scope of the instrument, having reference nevertheless to the several authorities cited at the bar, as guides to our decision ; and we are satisfied that, in this particular case, according to the terms of this particular charter party, the possession of the vessel was given up by the (,p) 4 M. & a. 502. CONTRACTS BY CHARTER PARTY. 147 owners to the charterer during the continuance of the contract ; Sect. 116. that the master was in possession of the cargo as agent for the ' charterer, and not as the .servant of the owners ; that personal credit was given to the charterer for the payment of the hire of the vessel; and that no lien, or right of stoppage of the goods, was intended, to be reserved to the owners as a security for the pay- ment of the contract price." ■ 117. Leaving out of consideration charter parties which deprive Classes of the owner of possession, or whose objects are not the carriage parties'^ which of goods, those with which we have to deal may be divided into the ^J® contracts . •' of carnage. lollowing three classes : — A. Contracts for the use of the ship, on a voyage or series of voyages, in carrying goods to be shipped by the charterer, or in his name : the charterer agreeing to pay for her either in propor- tion to the goods carried, or a Jump sum for the voyage, or in proportion to the time occupied. B. Contracts similar to A, but by which liberty is given to the charterer to use the ship for the purpose of taking goods of other shippers, and to require the master to give biUs of lading for goods so shipped. C. Contracts for the services of the ship for a period of time, during which the charterer is to have the right within agreed limits of directing how the ship shall be used, and is to pay for her in proportion to the time occupied. 118. Charters vary very greatly, according to the subject-matters Form of with which they have to deal, but they usually have certain ° ^^ ^' party, common features. These are shown in the following skeleton form, of a contract which would fall imder the Class A described above : — "Liverpool, 1885. " It is this day mutually agreed between of the good ship, or vessel, called the , of the measurement of tons register, or thereabouts, now at , and , of , merchant : That the said ship being tight, staunch and strong, and every way fitted for the voyage, shall with all convenient speed sail and proceed to , or so near thereunto as she may safely get, and there load from the factors of the said merchant a full and complete cargo of , not exceeding what she can reasonably stow, and carry over and above her l2 t48 THE CONTRACT. Sect. 118. tackle, apparel, proTisions and furniture ; and being so loaded shall therewith proceed to , or so near' thereunto as she may safely get, and deliver the same on being paid freight as follows : — , in full of all port charges and pilotage as customary. (The act of God, the Queen's enemies, restraint of princes and rulers, fire, and all and every other dangers and accidents of the seas, rivers, and navigation of whatever nature and kind soever during the said voyage always mutually^ excepted.) *' The freight to be paid as follows : — " The cargo to be brought to and taken from alongside at the said merchant's risk and expense. " - days are to be allowed the said merchant (if, the ship is not sooner despatched) for loading, and * days on de- murrage over and above the said laying days at ' per ton per day. The vessel to be discharged at the port of discharge with all despatch as customary. « (Signed) When it is intended that the charterer may use the ship as a general ship (bringing the charter within Class B above), the following clause is usually added : — " The captain to sign bills of lading as presented by the freighter " (or, " at such rates of freight as may be required by the freighter ") " without prejudice to this charter party." Charters of the Class C are instruments of special agreements, and cannot perhaps be said to have any common features beyond those above set out. A form of Time Charter which is largely used is set out in Appendix B. Usually in 119. Agreements of this kind may be made verbally (j), but it is the almost invariable rule to reduce them to writing. And usually they are made as simple agreements ; merely signed by the parties or their agents. Sometimes they are made by deed ; but, as the rule of law is that a deed executed by an agent does not bind his principal, unless authority to execute it has been conferred by deed (r), this course is usually to be avoided. And charter parties under seal are now seldom seen (s). (j) Per 'WigTam, V.-C, Lidgett v. goods have been shipped under a charter ■Williams, 4 Hare, 456. party under seal, not binding on them, /\ rn-'ti. n J. J. mi, v .«» Bee Leslie ». Wilson, 3 B. &B. 171. As M Chitty on Contracts (9th), p. 192 ; . . , , ' , , , \ /> J- 'to varying a charter party under seal, Horsley ... Rush, cited 7 T. R. 209. gge White v. Parkin, 12 East, 678 ; (s) Aa to the OTroer's liability when Thomson v, Bro-wn, 7 Taxm. 666. CONTRACTS BY CHARTER PARTY. 149 . 120. The stamp duty upon a " charter party, or any agree- Sect. ISO. ment, or contract for the charter of any ship or vessel, or any stamp. memorandum, letter, or other writing {t), between the captain, master, or owner of any ship or vessel, and any other person, for or relating to any freight or conveyance of any money, goods, or effects on board of the ship or vessel," is 6d (u). This duty " may be denoted by an adhesive stamp which is to be cancelled by the person by whom the instrument is last executed, or by whose execution it is completed as a binding contract" (x). If first executed out of the United Kingdom, unstamped, " any party thereto may within ten days after it has been first received in the TJnited Kingdom, and before it has been executed by any person in the United Kingdom," stamp it with an adhesive stamp, to be cancelled at the same time («/). An unstamped charter party may be stamped with an impressed stamp, on payment of a penalty, within one month after the first execution of it ; but not afterwards (s). A charter party which has not been duly stamped cannot be given in evidence, or made available in a Court of law, if it has been executed in any part of the United Kingdom, or if it relates " to any property situate or to any matter or thing done or to be done in any part of the United Kingdom " {a). If the charter has been executed by both parties abroad, the limit of ten days in sect. 50 does not apply. The document is then within sect. 15 (3) of the Act, which provides that "any unstamped or insufficiently-stamped instrument, which has been first executed at any place out of the United Kingdom, may be stamped at any time within thirty days after it has been first received in the United Kiugdom on payment of the unpaid duty only " (b). The stamp, under this section, must be an impressed, not an adhesive, stamp (c). 121. A charter party is usually effected through the intervention Shipbroter's of a shipbroker. And the ordinary course is for the document <'°™™i^^^°"- {t) See Rein i;. Lane, 15 L. T. 466. by the parties, may be admitted un- («) S4 & 65 Vict. 0. 39, Sctedule. stamped, if the original was stamped : ^g Smith 1). Maguire, IF.&F. 199. Evi- * ' ■ • • denoe of stamping : Closmadeuc v. Car- iv) ^^- s- 50. rel, 25 L. J., C. P. 216. (z) Ibid. s. 51. (J) See The BeUort, 9 P. D. 215. [a) Ibid.a. 14. A.oopy,thoughsigned [e] 64 & 56 Viot. u. 39, s. 2. .150 THE CONTRACT. Sect. 181. signed by the parties to be kept by the broker, who gives out certified copies of it as .may be required. The broker receives a commission from the shipowner for effecting the contract; usually 5 per cent, on the agreed or estimated freight. Where the amount has not been agreed, it must be ascertained by reference to the customary rate, if there is one ; and, if not, upon the basis of a reasonable remuneration under the circumstances (d). Apart from special agreement, the commission is payable for the work done in obtaining the charter, and does not depend upon the freight being actually earned (e). On the other hand, nothing is payable to the broker for the trouble and expense he may have been put to, unless a binding charter party is concluded (/). And this was held to be the case, upon evidence of usage (g), even where the completion of the contract fell through owing to a refusal by the shipowner to go on with the business, after the broker had found a person willing to charter the vessel on the proposed terms. " If the contract is, in fact, brought about through 'the broker's introduction of the parties, he is entitled to his commission, whether he himself works the matter out, or the principals com- plete it without his help (A). His introduction, however, must have been direct; it is not enough that he has mentioned the matter to somebody else. Who has brought the parties together. Nor would it suffice that he had introduced the shipowner to another broker who effected a charter of the ship. A custom, said to exist among shipbrokers, that the introducing broker should be paid under these circumstances, has been considered to be unreason- able and invalid (i). In Smith ». Butcher (k), the broker who actually procured the charter party had not been directly employed by the shipowner, but had got instructions "from another broker who was employed by him ; still, he was allowed to recover the commission from the {d) Where the Toyage wag for an in- (A) Burnett v. Bouoh, 9 G. & P. 620 ; definite time : HoU v. Pincent, 6 Moo. '' Wilkinson v. Martin, 8 C. & P. 1 • 228- Green v. Bartlett, 32 L. J., C. P. 261. (e) Hill V. Kitching, 15 L. J., 0. P. As to other charters flowing from the 251. Cf. Winter v. Mair, 3 Tann. 531.. same introduction, see Allan ». Sundins, (/) Bead ». Rann, 10 B. & C. 438; 31 L. J., Ex. 307; Tribe v. Taylor, 1 Dalton V. Irwin, 4 C. & P. 289. C. P. D. 505. (•) The Nuova EafEaelina, L. K., 3 («) GKddon v. Brodersen, 1 Cab. & A. & E. 483 ; The Alina, 5 Ex. D. 227. EU. 197. (s) i Com. Ca. 216. But cf. Sibson (o) 32 & 33 Vict. 0. 51, s. 2. v. Ship Barcraig Co., 24 Sess. Ca. (4th) {p) The Nuova EaflEaelina, L. E., 3 91 ; a similar commission clause; but A. & E. 483. Cf. North v. Basset, ship chartered " to arrive ;" commission (1892) 1 Q. B. 333. held not payable upon loss before (?) Robertson v. Wait, 22 L. J., Ex. arrival. 152 THE CONTRACT. Sect. 122. at Japan, proceed to British Oolumtia, and there load a cargo for London ; and that a commission of 3f per cent, should be paid to the charterers " on amount of this charter party on completion of the loading, or should the vessel be lost." The ship was lost while on her way to Japan. Held, that the commission had become payable. Clause as to 123, Charters frequently provide that the ship shall be con- ofsh^i. signed at the loading or discharging ports, to agents of the charterer, or to some named persons. Customary commissions are payable for doing the business of the ship at those places; and the charterer may sue the shipowner for the loss of com- missions through a breach of this term of the contract, although that loss be sustained not by the charterer himself but by the persons named (t). Eight to pro- In Eobertson v. Wait (t), the agreement was that the vessel ■ward freight should be " Consigned to Messrs. Ewing & Co., merchants, at of'dLoharge^ Calcutta, on the usual and customary terms," and it appeared that one of the usual terms was that the consignees should procure the vessel's homeward freight, and receive 5 per cent, commission for doiag so. The vessel was consigned to Ewiag & Co., but before she arrived at Calcutta, the defendants con- tracted with another person to supply a homeward cargo. It was held that the charterers might sue for the full commission, on behalf of Ewing & Co., without showing that they were in- terested in it. Where the ship was chartered for an outward voyage to China, to be consigned to the charterers' agents there, " free of commission on this charter," it was held that the charterers could not import a custom to the effect that it was the right, under those circumstances, of their agents, as consignees of the ship, to procure a charter or cargo for the ship outward from the Chinese port, and to be paid the usual commission for doing so, or to be paid the commission if the owners, without default of the agents, should procure a cargo otherwise («). If the consignment to the charterer's agents is to be " free of commission," the charterer is liable for expenses incurred by the shipowners in consequence of their being unable to clear her {v). {t) Eobeftson v. W^it, 22 I.. J., Ex. ^ ^^^P« "■ ^^'''i' 25 L- J-. Es. ^°^' {i>) EusseU V. Griffith, 2 P. & P. 118. CONTRACTS BY CHARTER PARTY. 153 In Cross v. Pagliano {x), tlie ship was cliartered for a voyage to Sect. 123. San Franoisoo, where she was to he " consigned to charterers' agents, inwards and outwards, paying the usual commissions." The voyage ended at San Francisco, and the ship, after discharging her cargo, proceeded to Selina Cruz, in Mexico, to take in a cargo for Hamburg, under a charter party which had heen made prior to the other. The plaintiffs' agents were not employed in obtaining this : but they had offered the captain a homeward cargo at San Francisco. It was held that the clause did not compel the ship- owners to pay commission, as if they had taken a cargo outwards from San Francisco. " Whatever would have to be done by a ship's broker if a cargo had been taken on board outwards at San Francisco, the plaintiffs' agents were to do ; or if the ship should sail in ballast — as in fact she did — any services required in connection with her so sailing were to be performed by those agents "(^). 124. "Where a ship was addressed to the charterer's agents at Right to London, her port of discharge, a special jury found that they feeio-hts. might claim to collect the freights, and earn a commission for doing so (s). In Hibhert v. Owen (a), a charter made by London shipbrokers on their own account, for an outward voyage, contained the clause, " a commission of 5 per cent, on this charter to be paid to (plaintiffs), to whom the vessel is to be addressed on her return to London." The plaintiffs contended that on the ship's return the work of reporting her and the ordinary business of her homeward cargo, such as making out the freight notes and collecting the freight, should be done by them; and that they should receive from the shipowners an address commission of 2J per cent, on the homeward freight. It was left to the jury to say what the meaning of the clause was in mercantile usage, and they found that it related to the homeward voyage, and gave the plaintiffs a commission (apparently Ij per cent, on the homeward cargo), and a reporting fee. Charterer's agents to whom the ship is consigned are to be regarded as acting for the shipowner, as well as the charterer, (x) L E' 6 Ex 9 ' i") ^^ Bradley v. Goddard, cited in ' ' Maol. p. 192. {y) Per BramweU, B., L. E., 6 Ex. («) 2 E. & E. 502. Of. Meibuhr v. p. 13. Priohard, cited Maol. p. 192. 154 THE CONTRACT. Sect. 124. Agent for charterer — Authority. Ratification. Agent cannot alter charter party. when collecting freiglits. But they have no power as against the owner, without special authority, to give up part of the freight ia compromise of a claim for damage to the goods {b) . 125. Where the charter is signed by an agent either for the charterer or for the owner, a question may arise as to the extent of the agent's authority to make the contract. This is a matter of fact iu each case. The authority may be a special one for the occasion, in which ease it must be construed strictly ; or the agent may have a general authority, or may, from the course of his employment by the principal, have acquired an apparent general authority to do such acts on his behalf. Where that has been the case, the principal will not be allowed to contradict the apparent authority by evidence of private instructions limiting it (c). In Smith v. McGhiire (d), Pollock, 0. B., said that the question to be answered in' such cases is, " Has the person who is to be charged with liability under this commercial instrument, or with the contract, whatever it may be, authorized and permitted the person, who has professed to act as his agent, so to act, in such a manner, and to such an extent, as that, from what has occurred publicly, persons dealing with him have a reasonable right to con- clude, and to draw the inference, that the person so acting is a general agent ? .... If that was the reasonable conclusion, I think the defendant is bound, though it should turn out that he had determined the extent of the agency by all sorts of rules and calculations." And when one professing to act as agent was not authorized at the time the charter party was made, the principal may stiU be bound by it, if it was expressed to be made on his behalf, and he has afterwards ratified it by some act which shows an adoption of it (e). But an act adopting the contract by a person for whom the agent did not profess to act will not make that person a party to the contract (/). 126. Neither the master nor the broker acting for the owners can vary a charter party made by them, or on their behalf (g). (S) Broadhead v. Tule, 9 Sess. Ca. (3rd), 921. (c) Smith i). McGuire, 27 L. J., Ex. 465. {d) 27 L. J., Ex. 465, at pp. 468-9. (c) Maclean v. Dunn, 4 Bing. 722 ; Forster v. Bates, 12 M. & W. 226; Bird V. Brown, 19 L. J., Ex. 154. (/) Wilson c. Tmnman, 12 L. J., C. P. 306 ; Saunderson ». Griffith, 6 B. & C. 909 ; Watson v. Swann, 31 L. J., C. P. 210. , iff) Supra, B, 44. CONTRACTS BY CHARTER PARTY. 155 So an agent for the oharterer has not authority to vary the Sect. 126. terms of a charter which has been made, unless he has been specially instructed to do so. A ship was chartered to proceed to Mayo (one of the Cape de Yerd islands), and there load a cargo of salt from the charterers' agents. When she arrived at Mayo, several vessels were waiting to be loaded, and the charterers' agents, to avoid delay, directed the master to go to Boa Yista, another of the islands, about 100 miles away. The master required an indemnity from the agents, and then sailed with one of them to Boa Yista, and took in a cargo of salt. Boa Yista salt was inferior to Mayo salt, and the charterers repudiated the transaction and refused to' pay the freight. It was held that they were not liable. " " I think the extent of the agent's authority must be confined to this : that he has authority to do all things necessary to perform the charter party, and, provided that the contract be substantially performed, to vary in slight matters ; but he has no authority, such as is contended for here, to substitute a new contract, as it would be to substitute an essentially different port of loading, and to put on board another and a different article, and it would be highly mischievous to allpw a charterer's agent to think that he has any such authority " {h). In Lindsay v. Seholefield (i), fruit was to be loaded abroad under a charter party, by which the shipowner had liberty to load other cargo "before loading fruit." The master arranged with the shippers of the fruit to load that lefore the shipowner's cargo. It was in consequence kept in the ship's hold for a needlessly long time at the ports of loading and discharge, and so became deterio- rated. The shipowner was held liable to the charterer. The shippers were not authorized to vary the terms of the charter. Where the charter party expressly authorized the charterer's agent at the loading port to make alterations in the charter, it was held that this included an authority to allow the ship to make an intermediate voyage before loading the homeward cargo (/c). 127. Where an agent has entered into a charter party on behalf Rights and of his principal, without disclosing his name, the latter is still an undisclosed bound by it ; although the agent also may be personally bound. P'^^oipal. , , „. , ^ . „„ T T n -D (») 2i Sess. Ca. (4th) 530. (A) Sickens 1!. Irving, 29 L. J., C. P. )L ^. . t -l ^ ,= t t ^ ' a> > ^^j Wiggins V. Johnston, 15 L. J., 25, per WiUiams, J., p. 28. j.^_ 202. 156 THE CONTRACT. Sect. 127. And the other party to the contract, on discovering the principal's existence, may enforce the contract against him. Conversely, the principal, whether named or not, may claim the benefit of, and may sue upon, a charter party which his agent has made on his behalf ; although the agent did not at the time disclose the fact that he had a principal. But where a contract has been made exclusively with the agent, at a time when the name of the principal was known to the other party, then that principal is not considered a party to the contract, and cannot enforce it (Z). Where an agent for a shipowner chartered the ship in his own name, describing himself in the charter party as the owner, it was held that the actual owner could not sue for a breach of it [m). The description " owner " in the charter party excluded the sup- position that he was acting as agent. Patteson, J., said, " The general principle is quite clear and untouched by our decision, that where there is nothing to define the character of the contracting party, he may be shown to be agent merely, so as to cast the right of suing on the real principal" (w). Liability of 128. Where a charter party has been made by an agent expressly ° ' on behalf of a principal, the agent is not personally liable upon the contract ; even though the principal be a foreign one (o) ; and although he may not have authorized the supposed agent to make the contract (p). If the agent was not authorized, no binding contract at all has been concluded ; unless it can be shown that the agent had no principal at all, and was in fact contractiag for himself ; in which ease probably he may sue or be sued on the contract (q). Cesser clause. Charters made by alleged agents without disclosing their prin- cipals frequently contain a stipulation that the agent's liability " shall cease as soon as the cargo is shipped." When that is the case the agent appears to be liable to the shipowner on the contract until the shipment has been made, but not after (r). It does not {t) Addison v. Gandaseqm, 4 Taun. (p) Jenkins v. Hutchinson, 18 L. J., 573 ; 2 Sm. L. C. 369. Cf. Calder v. Q. B. 274. Dobell, L. R., 6 C. P. 486. {q) Schmalz v. Avery, 20 L. J., Q. B. ' (m) Humble «>. Hunter, 17 L. J., Q.B. 228; Cami. Jackson, 21 L. J., Ex. 137; 360. Kelner v. Baxter, L. R., 2 C. P. 174. («) At p. 352. But of. Sharman n. Brandt, L. R., 6 > (o) Deslandes v. Gregory, 30 L. J., Q. B. 720. Q- ^- 36, (r) Oglesby v. Tglesias, 27 L. J., CONTRACTS BY CHARTER PARTY. 157 appear to have been deoided how far in such oases the contract may Sect. 128. he enforced by the party whose liability has ceased. . Where a charterer was apparently acting as agent, but was in truth the principal, a clause terminating his liability upon the loading of the cargo, " the charter being concluded for another party," was said not to apply to his character as principal. " His responsibility would unquestionably continue after the cargo was shipped" (s). 129. An agent who professes to contract for a principal warrants Warranty of to the other party that he has authority to do so ; and if he has ^^ °" ^' not that authority, he is liable to compensate the other for any loss he may sustain by being unable to enforce the contract owing to the absence of authority {t) . In LUly V. Smales iu), it was held, by Denman, J., that a broker who signed a charter party " by telegraphic authority " of the merchant, " as agent," did not absolutely warrant that he had authority to sign the charter. A mistake had there been made in the transmission of the telegram. Evidence was given which established that an agent, signing- in that form, is well under- stood not to warrant more than that " he has had a telegram which, if correct, authorizes such a charter as that which he is signing." A broker having agreed to charter a ship on behalf of the owners, without their authority, requested the merchants to get another vessel in place of her. They chartered one that was larger, and loaded her. Cookburn, C. J., directed the jury that, if the charterers could not have found a smaller ship, they were entitled, as damages against the broker, to the difference between the freight on the whole cargo of the substituted ship and that which would have been payable on the agreed ship; giving credit, however, for the profit made on the surplus cargo carried to fill up the larger ship {x). 130. But one who enters into a charter party in his own name Personally is personally bound by it, although he may in fact have been th^gen^y^^ appears Q. B. 366. Of. Sohmalz v. Avery, 20 liabilily to cease, see mfra, m. 645—651. " ®" •''■ L. J., Q. B. 228 ; Hough v. Manzanos, [t) Oollen v. Wright, 26 L. J., Q. B. 4 Ex. D. 104; Pedersou v. Lotinga, 1*7; 27 L. J., Q. B. 215; EiohardsQU?;. 28 L. T. 267. ^ ' Williamson, L. R., 6 Q. B. 276. («) Sohmalz v. Avery, 20 L. J., Q. B. M (1892) 1 Q. B. 466. p. 232. As to clauses making charterer's («) Mitchell v, Kahl, 2 F. & P. 709. 158 THE CONTKACT. Sect. 130. acting as agent for another ; and, conversely, lie can personally enforce it {y).- This may none the less be the ease although the existence and the name of the principal may have been disclosed. If a doubt arises as to whether the contract was made by the agent personally, or merely as a representative, it must be settled by reference to the document, considering it as a whole, and having regard to its objects and to the relations of the parties. The question in each case is as to the intention of the parties. If the charter party is signed by the agent in his own name without qualification, the presumption generally is that he meant to contract personally. Thus, in Parker v. Winlo (s), the de- fendant, a shipbroker, chartered a vessel on behalf of his prin- cipals, E. Winlo & Sons. The charter party was expressed to be made between the master and " G. W. Winlo, agent for E. Winlo & Son, of Devonport, merchants " ; but it was signed by the defendant, " Gr. W. Winlo," without qualification of any kind. It was held that he was personally liable upon it. The presumption from the unqualified signature was not rebutted by the description of him as "agent" in the body of the charter party. So also, where agents signed without qualification, though- the charter was expressed to be made by them " as agents for charterers" {a). But the fact that the agent's signature is unqualified does jiot conclusively show that he contracts personally : the whole docu- ment must be considered (6) . And, on the other hand, an agent may be held personally bound, although his signature has been qualified. In Lennard v. Eobinson, a charter party made in London was expressed to be between the shipowner and " Robinson & Fleming, of London, merchants " ; and throughout the document the pro- visions were with reference to the " said merchants." But Robinson & Fleming signed the charter party " by authority of and as agents for M. A. H. Schwedersky, of Memel." It was [y) Short v. Spaokman, 2 B. & Ad. Tweedy, 63 L. T. 765. 962 ; and per Blackburn, J., Fawkea v. [a) Hough i>. Manzanos, 4 Ex. D. Lamb, 31 L. J., Q. B. 98. Agent for 104 ; Cooke ». Wilson, 26 L. J., C. P. gOTernment, Cunningham v. Collier, 4 15 ; Paioe v. Walker, L. E., 5 Ex. 173; Doug. 233. Mistake in printed form, Kennedy v. Gouveia, 3 D. & B. 603. Breslauer v. Barwiok, 36 L. T. 62. [h) Southwell v. Bowditch, 1 C. P. D. {z) 27 L. J., Q. B. 49 ; and eee Hickj;. 374 ; Gadd v. Houghton, 1 Ex. D. 357. CONTRACTS BY CHAETEE PARTY. 159 held that, looking at the whole document, Eobinson & Meming Sect. 130. contracted in it as principals (c). 130a. Forms of contract are sometimes used hj shipbrokers. Berth-notes. known as " berth-notes," which leave the relations between the parties in considerable doubt. In Hick V. Tweedy {d), the defendants, having made various contracts with merchants for loading the ship in Odessa, wrote to the owner, saying, " we confirm having this day fixed the S.S. Thorn- tondale for a full cargo of grain ™j? seed from Odessa to London, &e charterers having the option of cancelling if she is not ready to receive cargo by 12th December next. Steamer to be loaded on usual berth terms, 2 per cent, commission to us." Charles, J., held that .the defendants' " true position was that of agents for freighters as well as agents for the plaintiff " ; but that they had, by their signature to the letter " incurred a personal and primary liability." In the S.S. Eotherfield Oo. v. Tweedy (e), the defendants' berth- note ran as follows, " We hereby confirm arrangement that the S.S. Eotherfield, of the capacity of 4,250 tons, now due Constanti- nople, to-day is berthed by our Odessa correspondent, Messrs. Tweedy, Eeid & Co. (they having engaged as agents for owners' account for this steamer on customary Odessa terms, as sanctioned by the Odessa Bourse, a full cargo of wheat ^^ other grain »* seed), to be loaded at Odessa ^^^ Sevastopol, . . . charterers' option." Collins, J., held that the defendants had taken the responsibilities of charterers under the note. 131. In Hutchinson v. Tatham (/), a charter party was entered Custom to into by the defendants " as agents to merchants,'' and their signa- liable. ture to it repeated that description. They had in fact acted as agents in the matter, but they did not disclose the name of their principal until a considerable time afterwards. Evidence was given of a trade custom that if the principal's name was not dis- closed within a reasonable time after the signing of the charter party, the broker was liable personally upon it. The jury found that the custom existed, and that the principal's name had not been (c) Lennard v. EobiaBon, 24 L. J., 273 ; 31 L. J., Ex. 451. Q. B. 275; Adams v. Hall, 37 L. T. 70. (a) 63 L. T. 766. And see Hutoheson v. Eaton, 13 Q. B. D. 861 ; Weidner v. Hoggett, 1 C. P. D, ^^' ^ ^°™- ^^- ^*- S33 ; Wake v. Harrop, 30 L. J., Ex, (/) L. K,, 8 C. P. 482. 160 THE CONTRACT. Sect. 131. disclosed witMn a reasonable time. And the Court held that the evidence of custom was rightly admitted ; though, apart from the custom, the defendants would not have been liable on the con- tract {g). On the other hand, if the agent becomes by custom liable per- sonally on the contract, he may, presumably, enforce it personally. For the rights and liabilities of the parties are generally reci- procal (A). Principal 132. When both principal and agent are liable upon a contract sued^after made by the agent, either of them may be sued upon it. But the judgment principal cannot be sued after an action has been brought, and against agent. , -^ . , , 7 . judgment obtained, against the agent ; even though no satisfaction of the claim results («). In Priestley v. Fernie («), the plaintiff sought to make the owners of a ship Hable for the non-delivery of goods, under a bill of lading, after he had sued and obtained judgment against the captain for the same matter ; and had seized him in execution, made him a bankrupt, and proved for the amount of his judgment in the bankruptcy. It was held that the shipowners could not after this be sued. And _ the ground of the decision appears to have been, that their position had been altered; for they had become liable to the captain or his estate on the claim. So, probably, a judgment obtained against the principal would put an end to the right to sue the agent (/«) . But whether any act, short of a judgment, in the way of electing to treat either principal or agent as the person liable, will preclude proceedings against the other of them appears to be doubtful {I) . Eepreaenta- 133. A charter party usually commences with a description of charter party, the sMp, giving her nationality, character, class, and capacity ; and some statement of where she is lying, or how she is occupied, at the time the contract was entered into. These are representations made by the shipowner ; being matters within his knowledge, or (j') SeeaJsoHiunfreyt). Dale, 26L. J., 172; Kendall v. Hamilton, per Lord Q. B. 137 ; 27 L. J., Q. B. 390 ; Fleet Cairns, 4 A. 0. at p. 415. V. Murton, L. R., 7 Q. B. 126 ; Pike v. (k) See the judgment of Lord Cairns Ongley, 18 Q. B. D. 708. in Kendall v. Hamilton, 4 A. 0. 504. ,z\ a Tji It, T -o 1 W Curtis v. Williamson, L. K., 10 {h) See per Blaokbum, J., Fawkes v. n tj kt . n u -n i. n t -d c n T V, ,1 T T /^ T> no U. B. 57 Calder v. DoheU, L. E., 6 C. Lamb, 31 L. J., Q. B. 98. t, ,„„ oi . „„- nn ' ' P. 486 ; Story on Agency, s. 295. Cf. (i) Priestley v. Fernie, 34 L. J., Ex. Scarf v. Jardiue, 7 A. C. 345. CONTJRACTS BY CHAETER PARTY. 161 means of knowledge, and not witliiii the knowledge of the char- Sect. 133. terer. And they may amount to warranties, or promises by the shipowner that the facts are as represented ; or they may be mere recitals identifying the subjeot-matter of the contract, or bare representations which only become significant when it is sought to show that the charterer has been induced to contract by mis- representation. If representations that are false have been made by the ship- False repre- owner, and if the charterer was induced by them to enter into the contract, he may put an end to it on discovering the real state of the facts : unless the contract has been so far acted upon that the shipowner cannot be restored, substantially, to his former posi- tion (m). And this is true whether the misrepresentations were embodied in the written contract or not ; and although the ship- owner may have made them without knowing that they were false («). If the misrepresentations have been made knowingly, the char- terer may also sue the shipowner for any damages which he may have sustained through the deceit. 134. Apart, however, from misrepresentation, as affording a Must gene- ground for rescinding the contract, or for an action for deceit, inthed™u- statements made as to the ship, or other subject of the contract, will not form part of the agreement unless they are embodied in the document which shows what that is. Where the contract is in writing, the rules of evidence require that representations, in order to form part of the contract, shall be made iu the document (o). Though, if it can be shown that they were meant to be stipulations between the parties which were to be preliminary to the contract, so that it was not to have any operation unless or until those repre- sentations had been satisfied, then they will have effect, although not put into the writing (p). 135. Whether a representation contained in the document does When is a or does not amount to a warranty by the shipowner, depends upon a promise? the presumable intention of the parties, to be gathered from the form of the contract, and the circumstances under which it was made. The whole scheme of the contract must be considered : its (m) PoUook, Prin. Con. (4th) 541. Oh. X. (») See Redgrave v. Hurd, 20 Oh. D. (o) Infra, B, 164. 1; Adamr.Newbigging, 34 0h. D. 582; (p) SeeBannerman)'. White, 31L. J., 13 A. 0. 308 ; Pollock, Prin. Con. (4th) 0. P. 28. C. — C, M ment to have effect. 162 THE CONTEACT. Sect. 135. Eepresenta- tions wMch. are promises must gene- rally be true, or charterer not bound to load. subject, its objects, and the relations of the parties to one another. If from this point of view the reasonable supposition is that the representation was relied upon by the charterer when he entered into the contract, and that the shipowner who made it expected, or should have expected, that it would be so relied upon, then the representation amounts to a promise. It is a warranty that the fact is as stated, and i£ not satisfied, and damages result in con- sequence to the charterer, he may recover in respect of them. Mere expressions of eulogy and expectation, involving no distinct allegations of fact, are not regarded as significant. And the fact represented must be one which has a material bearing upon the purposes of the contract. Whether that is the case may depend upon the circumstances imder which the contract was made. " Por instance, if it was made in the time of war, the national character of the vessel is of such importance that a statement of it in the charter party might properly be regarded as part of the shipowner's contract, and so amounting to a warranty. Whereas the very same statement in the time of peace, being wholly unim- portant, might well be construed to be a mere representation. So, if it was shown that the charter party was made for a purpose, such that unless the vessel began her voyage from the port of loading, with a cargo on board by a certain time, it was manifest that the object of the charter party would in all probability be frustrated, the Court might properly be led by these circumstances to conclude that a statement as to the locality of the ship, coupled with the stipulation that she would sail with all convenient speed, was a warranty of her then locality" {q). 136. Further, a representation may not only be a warranty that the fact is as represented, so as to make the shipowner liable in damages for a failure to satisfy it, it may also amount to a con- dition precedent to the charterer's obligation to load. The fact represented may be so material to him that that obligation will become a substantially difierent thing from what he meant to undertake, if it prove untrue. In that case he will, on discovering the truth, be at liberty to refuse to load (r). The test for ascertaining whether the truth of a representation (?) Behn v. Bumess, 32 L. J., Q. B. at p. 207. See Oppenheim v. Praser, 34 L. T. 524, where a finding of the jury on the question of materiality was adopted in construing the contract. [r) Behn v. Burness, 32 L. J., Q. B. 204 ; Bentseu v. Taylor, (1893) 2 Q. B. 274. CONTRACTS BY CHARTER PARTY. 163 is or is not tlms a condition precedent is similar to that whicli Sect. 136. determines whether the representation amounts to a warranty. If it is so material as to influence the charterer in contracting, it is because the falsity of it would substantially alter his under- taking. Generally, therefore, it may be said that if a descriptive statement is so material as to be regarded as a promise, it is also a condition which must be satisfied, if the charterer is to be bound by the contract. "With respect to statements in a contract descriptive of the subject-matter of it, or of some material incident thereof, the true doctrine, established by principle as well as authority, appears to be, generally speaking, that if such descriptive statement was intended to be a substantive part of the contract, it is to be regarded as a warranty, that is to say, a condition on the failure or non-performance of which the other party may, if he be so minded, repudiate the contract in toto, and so be relieved from performing his part of it, provided it has not been partially executed in his favour" (s). 137. The charter party impliedly represents that the ship con- Existence of ... . ship— Implied tracted for is in existence as a ship. That is the foundation of the condition. contract ; a preliminary condition which must be satisfied if the contract is to be acted upon. Whether the shipowner warrants to the charterer that she does exist, so as to be liable in damages if it should turn out that she does not, must depend upon the form of the contract. If that represents her to be at a certain port in safety, whereas she is, in fact, at the bottom of the sea, it seems clear that there is a promise or warranty that she exists as represented, for the breach of which an action would lie (t). But if she is at sea, and that is stated, so that there is no certain representation of her condition, there is, it would seem, no warranty that she exists, and the contract on each side depends upon her continued existence as a preliminary condition (m). 138. A misstatement of the vessel's nationality may be very Statement of material to the charterer, either in time of war, as bearing upon («) Behn v. Bumess, 32 L. J., Q. B. («) Of. Johnson v. Maodonald, 9 M. & 204, at p. 206. Of. Barnard v. Eaber, ^ g^g ^ ^^^ ^ Caldwell, 32 L. J., 1893) 1 Q. B. 340 ; infra, s. 175. „ . „ ' „ ^ (*) Behn v. Bumees, 32 L. J., Q. B. ^- ^- ^^* ' Couturier v. Hastie, 5 H. L. 204. C. 673. m2 164 THK CONTRACT. Sect. 138. Statement that vessel is » steamship. her neutrality or otherwise («) ; or in time of peace, with reference to the navigation laws of the places where she may be intended to trade ; or with reference, perhaps, to the question by what rules of law the effect of the contract is to he determined. In Eeusse v. Meyer (y), a ship was described as Swedish in a charter party for a voyage from London to Grottenburg. The charterer refused to load her, on the ground that she was not Swedish, but British built, whereby he had been prevented from sending her to Gottenburg. Evidence was given by the owner that she was, in fact, British built, but that, when the contract was made, she had a complete set of Swedish papers, and a treasury licence to sail as a Swedish ship, all of which was known to the charterer. Lord Ellenborough said : — " I should hold that the ship must correspond with the description in the written contract ; but she is Swedish in one sense, being furnished with Swedish papers, and in a condition to navigate as a Swedish ship. Although the expression in the memorandum for charter be ambiguous, I think it was enough that she had a Swedish national character imposed upon her, and that she was Swedish within the meaning of the parties to the contract." 139. If the charter party represents that the ship is a steamship, that is material, and the shipowner is liable if she cannot, or does not in fact work as a steamship, in the ordinary sense of the term. Goods were shipped under a bill of lading " on board the steam- ship Hibernia, from Singapore to London, with liberty to call at any ports in or out of the route and discharge coals, and to tranship the goods by any other steamer," &c. The Hibernia was an auxi- liary screw steamer, and the voyage home was made under sail, for the most part, by the owner's instructions ; she thus arrived much later than if she had made an average voyage under steam. The shipper was held entitled to damages for the delay {z). Blackburn, J., said : — " It is part of the contract that the goods are to be forwarded per steamer, that is, by a vessel worked by steam power principally. It is not necessary that it should be worked every day by steam power, but worked by steam power as the chief and principal power " {a). {x) Lothian v. Henderson, 3 B. & P. 499. W 3 Camp. 475. («) Praser v. Telegraph Construction Co., L. R., 7 Q. B. 566. {a) L. R., 7 Q. B. at p. 871. CONTEAOTS BY CHARTER PARTY. 165 140. The description of the ship's class is material. A charter Sect. 140. made at New York described the vessel as the " A. 1 Br. hrig statement as Hannah Easter, of Liverpool." Held, that this amounted to a promise that she was classed A. 1 at Lloyd's at the date of making the charter party ; and that, as this was not true, and the charterer had in consequence been obliged to pay extra premiums for insur- ■ ance of the cargo, he was entitled to the amount of those extra premiums as damages from the shipowner (J). And the charterer may refuse to load the ship if she is not of the described class (c). But the description of the class relates to the time of contracting only ; the shipowner undertakes that she has it at that time, but not that she shall maintain it throughout the duration of the con- tract. So that a charterer is not entitled to refuse to load on the ground merely that the vessel has run off, or lost, her class on the way to the port of lading {d). 141. Whether the statement of the ship's measurement amounts Statement as to a promise, and to a condition precedent, depends upon the cir- ment. cumstances under which, and the manner in which, it was made. It seems clear that if the shipowner wrongly states her capacity for a particular cargo, that is a misdescription which may be very material to the charterer's calculations, and should therefore fall within the rule which entitles him to refuse to load. On the other hand, a mere statement of the vessel's measured tonnage does not definitely indicate her carrying capacity, and a mistake in stating it may not be material in the same sense. In Hunter v. Fry (e), the ship was described as "of the burden of 261 tons, or thereabouts." She could have carried 400 tons of the agreed cargo, but the charterer loaded only 336. The ship- owner claimed compensation for loss of the freight that would have been earned had the charterer loaded a full cargo, and this wrs resisted on the ground that the statement as to the ship's capacity was untrue (/). But the shipowner recovered. Abbott, 0. J., said : " I am of opinion that the mention of a ship's burden in the description of a ship in the charter party in Hie manner it is here mentioned, is an immaterial circumstance, (J) Eouth V. MaoMiUan, 33 L. J., Ex. («) 2 B. & Aid. 421. Cf. Thomas v. 38. Clarke, 2 Starkie, 450. (c) See the judgment in OlUve v. Booker, 17 L. J., Ex. 21. '■^'> ^^ ^°®« '^°* ^PP«*' ^^^*t^=^ 261 {0) Hurst 1). Ushome, 25 L. J., C. P. ^ns was inaocnrate a^ a statement of 209 ; French v. Newgass, 3 0. P. D. 163. the registered tonnage. 166 THE CONTRACT. Sect. 141. although it may he made material hy the allegation of fraud or other matter. Here the freighter has not covenanted to load a cargo equivalent to the hurden mentioned in the charter party ; he has covenanted to load and put on board a full and complete cargo, and to pay so much per ton for every ton loaded on board. If the covenant had been to' pay a gross sum for the voyage the freighter (upon the arrival of the ship at the foreign port) might have insisted that the captain should take on board as much as the ship would safely contain ; and the owner who had covenanted to take a full and complete cargo would not be justified in saying that he would take no more than the register tonnage of the ship. It is, indeed, quite impossible that the burden of the ship (as described in the charter party) should in every case be the measure of the precise number of tons which the ship is capable of carrying. That must depend upon the specific gravity of the particular goods ; for a ship of given dimensions would be able to carry a larger number of tons of a given species of goods that were of a great specific gravity than she would of another of a less specific gravity." In Windle ». Barker (17), the charterer had undertaken to load a vessel, described as " of the measurement of 180 to 200 tons, or thereabouts," with a full cargo of coals. At the time of chartering it appeared that neither the owner nor his agents knew the size of the vessel, and that the agents communicated to the charterer all they knew about her. On arrival at the loading port the charterer had her measured, and found that she measured almost 258 tons ; and upon that he refused to load her. It was held in the Exchequer Chamber that he was not entitled to do so. But the judges differed in their reasons. Pollock, 0. B., appears to have thought that the statement of measurement had no effect unless it was made fraudi^ently ; and other members of the Court held that it was not a warranty. On the other hand, Jervis, C. J., and Martin, B., considered that the matter depended upon whether the misdescription was material. Martin, B., thought that a plea that the ship unreasonably exceeded 200 tons would have been good upon demurrer. " The mistake of the defendant is this : the opinion of the jury ought to have been taken whether this was a ship unreasonably exceeding in size the ship described in the contract. If it was, I think that the defendant was not under any [g) 25 L. J., Q. B. 349. CONTEACTS BY CHARTER PARTY. 167 otligation of loading her. It seems to me that it was a question Sect. 141. of fact, not of law. Had the jury found the ship supplied to be a vessel aocordiug to the contract, I do not say that I should have been satisfied with the verdict " {h). Where a steamer was described as " of the measurement of 1,033 tons register and carrying 2,000 tons or thereabouts," it was held that the representation of carrying capacity related to cargo, apart from bunker coal ; and that the shipowners were bound to take 2,000 tons of cargo or thereabouts («). 141a. The capacity of the vessel is often expressly guaranteed Express by the shipowner, more especially ia charters at a lump freight, or ^^^''*" ^^^• for time. Such guarantees must be read with reference to the circum- Vessel's stances contemplated by the parties. Thus where a guarantee was given that the ship would carry " 3,000 tons dead weight of cargo, upon a draught of 26 feet of water," and it appeared that both parties contemplated that the cargo might be loaded in a river, it was held that the guarantee applied to fresh water as well as to salt (A). In Mackni v. Wright (I), the shipowners guaranteed that the vessel should "carry not less than 2,000 tons dead weight of cargo." And should she not carry the " guaranteed weight," a deduction from the freight was to be made. The cargo was to consist of " such goods and merchandise as the charterers or their agents shall tender alongside." But the character of the intended Specified cargo was discussed between the charterers and shipowners at the ° time of making the coiitract. It was to be a general cargo, con- sisting in part of machinery which would occupy stowage room out of proportion to its dead weight ; and a note specifying the largest pieces was written on the margin of the charter party. The char- terers, in fact, sent many more large pieces for shipment than had been represented, and in consequence the ship did not carry 2,000 tons weight. They claimed a deduction from the lump freight. But it was held in the House of Lords that, as the cargo shipped was different from that contemplated, they were not entitled to a deduction. The guarantee as to weight did not extend to any kind of cargo which might be sent. (A) 25 L. J., Q. B. at p. 351. (^) The Norway, U L. T. 57 ; 13 L. T. SO. (i) The Resolven, 9 T. L. R. 75. (^) 14 a. C. 106. 168 THE CONTRACT, Sect. 141a. All the Lords agreed, however, that the expression " dead weight of cargo " must be read as heing " something more than a mere guarantee of carrying capacity. It is a guarantee of the vessel's carrying capacity with reference to the contemplated voyage, and the description of the cargo proposed to he shipped, so far as that description was made known to the owners " {m). On the other hand, in Carnegie v. Conner (w), where the charter provided for a cargo of creosoted sleepers and timbers, with 100/200 tons of general cargo at charterer's option, it was held by Huddleston, B., and Mathew, J., that a clause " owner's guarantee ship to carry at least about 90,000 cubic feet, or 1,500 tons dead weight of cargo," did not mean that the ship would be able to carry that amount of the cargo specified ; but merely that she had an actual carrying capacity of 90,000 cubic feet, or 1,500 tons. EfEeot of "about." 142. In Morris v. Levison (o), the ship was to load " a full and complete cargo of iron ore, not exceeding what she could reasonably stow, &c., say about 1,100 tons." The charterer loaded 1,080 tons, but the ship could have taken 1,210. It was held that effect must be given to the words, " say about 1,100 tons," and that 3 per cent, was a fair excess to allow ; so that the charterer ought to have loaded 1,133 tons. In The Besolven {p), the ship was represented to be able to carry " 2,000 tons or thereabouts " ; this was considered to mean a quantity not differing more than 5 per cent, from 2,000 tons. Statement of 143. The position of the ship at the time of making the charter tion. ^ ^°^" party is generally important to the charterer ; and the statement made in the charter party with regard to it has frequently been (m) Per Ld. Maonaghten, 14 A. C. p. 120 ; and see per Ld. Halsbnry, p. 114, and per Ld. Watson, p. 116. A smularviewwas taken by A. L. Smitb, J., in Wood V. Allen, tried at Liverpool, Aug. 1st, 1890, wittout a jury. The charter there provided for a cargo of ' ' deal ends, firewood, and fifty standards- of broom handles." And it stated that the ship had "carried 640 standards." The judge held that this was a guarantee that she could carry 540 standards of the agreed cargo. So that it was not satis- fied by showing that she had carried 640 standards of planed boards, a lighter cargo. The ship in fact took on board only 472 standards, and was then fully deep. It was suggested that the wood was wet and heavy. The evidence showed that she had on previous occasions carried 520 standards of the kind of timber agreed ; and damages were aooordiugly given for the loss on 20 standards. See also Potter ». New Zealand Sh. Co., 64 L. J., Q. B. 689, infra, s. 261. («) 24 Q. B. D. 45. (o) 1 C. P. D. 156. Cf. Bomer v. Miller, 82 L. T. 258. (p) 9 T. L. R. 75. CONTRACTS BY CHAETEE PARTY. 169 held to be a sulDstantive part of the contract. Thus, in Behn v. Sect. 143. Burness {q), in a charter party dated October 19th, 1860, the ship was stated to be " now in the port of Amsterdam," and she was to sail with all possible despatch to Newport, to take cargo. On the 15th of October, the ship had been at Nieuwediep, about sixty-two miles from Amsterdam; but owing to contrary winds she was detained there until after the 19th, and she did not reach the docks at Amsterdam until the 23rd. Her cargo was then discharged with all despatch, and she at once proceeded to Newport. The charterer refused to load her ; and it was held in the Exchequer Chamber that he was entitled to do so. " The place of the ship at the date of the contract, when the ship is in foreign parts and is chartered to come to England, may be the only datum on which the charterer can found his calcula- tions of the time of the ship arriving at the port of lading. A statement is more or less important in proportion as the object of the contract more or less depends upon it. For in most charters, considering'-winds, markets, and dependent contracts, the time of a ship's arrival to load is an essential fact for the interest of the charterer. In the ordinary course of charters in general, it would be so. The evidence for the defendant shows it to be actually so in this case. Then, if the statement of the place of the ship is a substantive part of the contract, it seems to us that we ought to hold it to be a condition, upon the principles above explained, unless we can find, in the contract itself or the surrounding circumstances, reason for thinking that the parties did not so intend." So, where a charter represented the vessel as " now at sea, having sailed three weeks ago," whereas she had not in fact sailed three weeks before, it was held that the charterers were not bound to load her (r). And where shfe was described as " expected to be at Alexandria about the 15th of December," that was a promise for the breach of which the charterer could sue. The promise was broken if the ship was in such a part of the world, and under such engagements that she could not perform them and arrive by the day named (s). (?) 32 L. J., Q. B. 204 ; Oppenheim Bentsen v. Taylor, (1893) 2 Q. B. 274. V. Eraser, 34 L. T. 524. Cf. Dimeoh v. (s) Corkling ». Massey, L. R., 8 C. P. Corlett, 12 Moo. P. C. 199. 396. Where a time is fixed for arriviag, (r) Ollive v. Booker, 17 L. J., Ex. 21 ; or sailing, infra, ss. 219—221. 170 THE CONTEACT. Sect. 144. 144. The representation that the ship is " tight, staunch and Eepreseuta- strong, and every way fitted for the voyage," seems to be equi- sta^ch'^&o!" "talent to the warrant of seaworthiness and fitness, which, as we have seen {t), is implied by law on the part of the shipowner. But whereas the warranty at law applies to the condition of the ship on sailing with the cargo (m), the words in the charter party apparently relate either to the time at which the contract is made (»), or to the time of sailing for the loading port. The warranty of seaworthiness on sailing from the port of loading is, however, implied by the law, although there be an express warranty in the charter which relates only to the time of sailing for that port. Thus, in Seville Sulphur, &c. Co. v. Colvils {x), where the charter provided that the ship " heing tight, staunch and strong, and every way fitted for the voyage, shall" proceed to Seville, and there load, it was held that she was bound to be seaworthy on sailing from Seville. And the charterer recovered, on the ground that this warranty was broken, though the defect was not an original one, but lay in the muddy state of the water which had been taken into the boilers just before leaving Seville. Diatinotion Satisfaction of the warranty at law, by providinsr the ship at from ordinary , ^ ■, -,■ ■ n ■, ■warranty of the port of ladmg m a fit state to carry the agreed cargo on the agreed voyage, is a condition precedent to the charterer's obligation to load her {y). On the other hand, the express representation of the charter party as to her condition, so far as that relates to the time prior to her arrival at the port of loading, does not constitute a con- dition precedent. The charterer is bound to load her, if she is fit and seaworthy at the loading port, although she may have not been so at the time of the contract, or at the time when she sailed for that port from the place at which she was lying when chartered (z). And, on the principles above referred to, it seems that no action {t) Supra, 83. 17—21. Caswell, 20 Fed. Rep. 249. («) Supra, s. 21. {y) Stanton v. Riohardson, L.E., 70. {v) Scott V. Foley, 5 Com. Ca. S3. P. 421 ; L. R., 9 C.P. 390. Affirmed in {x) 25 So. L. R. 437 ; and see per H. L., see 1 Q. B. D. at p. 381. Ld. Shand in Cunningham «!. Colvils, 26 (2) TarrabocHa v. HicMe, 26 L. J., So. L. R. 249, p. 260. See also Thin v. Ex. 26 ; Hudson v. Hill, 43 L. J., C. P. Richards, (1892) 2 Q.B. 141; Bowringv. 273. Cf. Dixon v.Heriot, 2 F. & P. Thebaud, 66 Fed. Rep. 520 ; Sumner v. 760. seaworthi. nes9. CONTEACTS BY CHARTER PARTY. 171 would lie for a iDreaoIi of this representation (a). An action will, Sect. 144. however, lie for an improper delay in reaching the port of loading arising from want of diligence on the shipowner's part in having her fit, or in other respects. And in some cases subh delay may entitle the charterer to refuse to load (b). 145. In Stanton v. Richardson (e), the ship was to sail to a port Fitness for of loading and there load a " full and complete cargo of sugar in dition preoe- bags, hemp in compressed bales, ^ measurement goods," and ^^ ' different rates of freight were specified for wet and for dry sugar. The ordinary statement of the condition of the ship did not appear in the charter party, but it contained a clause that, " The master engages that the vessel, before and when receiving cargo, shall be a good risk for insurance ; and during the voyage the master shall take all proper means to keep the vessel tight, staunch and strong, well manned and provided, and in every way. fitted and provided for the voyage." The charterers provided a cargo of wet sugar, and when the chief part had been loaded it was found that there was such an accumulation of draiaage from the sugar in the hold that the ship would not be seaworthy. An attempt was made to pump out' this drainage, but the ship's pumps, though of the usual kind, and sufficient for ordinary purposes, could not do the work, and there were no means of procuring sufficient pumps within several months. The cargo was discharged, and the charterer refused to reload it, or to load any other instead. An action was brought by the shipowner against the charterer for not loading a cargo, and a cross-action by the charterer against the shipowner for not providing a fit ship. The jury found that the cargo offered was a reasonable one ; that the ship was not reasonably fit to carry such a cargo ; and that she could not be made so within such a time as would not have frustrated the object of the adven- ture. Upon these facts it was held that the charterer was entitled to refuse to load any further cargo, and to claim damages from the shipowner for not providing a fit ship. He was not bound to load the ship while its unfitness continued, and as that could not be remedied in a time consistent with the object of the voyage, he was altogether absolyed. (a) But see Porter v. Izat, 1 M. & W. Of. Behn v. Bumess, 32 L. J., Q. B. at 381. p. 207. And see Chap. VIII. (6) Preeman v. Taylor, 8 Bing. 124 ; (c) L. E., 7 C. P. 421 ; L. E., 9 C. P. TarrabooMa v. HioMe, 26 L. J., Ex. 26. 390. 172 THE CONTRACT. Sect. 145. The question did not ttere arise, but if the defect of the ship had heen remedied by the shipowner, without such delay as to frustrate the adventure, probably the charterer 'would not have been entitled to reject the ship, though he might have claimed compensation for any loss sustained through the delay. In case of 146. If a vessel is chartered for a specified period of time, the charterer will not be bound to take her unless she is ready and fit at, or shortly after, the commencement of that period. A ship was chartered for as many consecutive voyages between Sunderland and London as she could enter upon within twelve months after the completion of the voyage she was then upon. That voyage was completed, and the owner gave notice that she would be ready to load on April 9th under the charter party. But the Board of Trade officer objected to her loading, on the ground of unseaworthiness; and, though she was repaired promptly, she was not ready until June 17th. The Court of Appeal, affirming the Queen's Bench Division, held that the charterer was not bound to load her at all {d). There was some difference of opinion in that case, in each of the Courts, as to the extent of the delay needful to entitle the charterer to throw up the contract. The majority of the Court of Appeal (Kelly, C. B., Mellish, L. J., and Amphlett, J. A.) gave judgment on the ground that, " as in a charter for a voyage the specified voyage would be of the essence of the contract, and the charterer, if he could not have the use of the vessel for the specified voyage, would not be bound to take her for any other voyage ; so, in a charter for time, if the charterer cannot have the vessel for the specified time, he is not bound to take the vessel for a shorter time or a substantially different time; and if he cannot get the vessel for the specified time, he may throw up the charter" (e). But Brett, J., agreed with the judgment, not " on the ground that there is, in such a charter, a warranty that the ship should be seaworthy on the day when the charter is to commence, with a right to reject the ship if the warranty is not complied with, nor on the principle that time was of the essence of the contract, but on the ground that, under the circumstances proved at the trial, the jury might, and indeed should, in reason have found that the ship was not fit for the purpose for which (rf) Tully V. Howling, 2 Q. B. D. 182. («) 2 Q. B. D. pp. 187, 188. CONTRACTS BY CHARTER PARTY. 173 eke was chartered, and could not be made fit ■within any time Sect. 146. which would not have frustrated the object of the adventure " (/). Where a tug was chartered for salving purposes for a period of one or four weeks, " commencing from the 8th September, at which date the vessel is to be at the disposal of the charterers at Greenock," it was held that she ought to have been ready for the service at the beginning of the 8th of September. A failure to be ready to sail from Grreenook until 2.30 p.m. of that date was a breach (g). 147. "We have discussed in Chapter I. the degree of a ^hip- CHaraoterof owner's responsibility apart from express contract, where he lets undertakings, the use of the whole ship to one person. That discussion, how- ever, related only to the carrying of goods when they have actually been delivered to him. The degree of obligation to go to a loading port, to get them, must depend upon the terms of the contract. The undertakings of the shipowner under a charter party in the ordinary form, as to proceeding to the port of loading and there loading, and afterwards proceeding to the port of discharge and delivering, are in terms absolute, subject to the excepted perils. And the remarks already made with regard to the under- takings in an ordinary bill of lading seem to apply to a charter party also {h). The ordinary exceptions of perils in a charter party are those which we have considered in reference to bills of lading («). Other exceptions, peculiar to charter parties, e.g., as to providing a cargo, will be more conveniently discussed hereafter. As also will the other clauses which relate to the performance of the contract. 148. A doubt sometimes arises as to when during the agreed When does voyage the ordinary exceptions of perils apply. Do they relate okuleTpply? only to that part of it in which the ship is carrying the charterer's goods ? Or do they also cover risks which frustrate or delay the voyage before the goods are taken on board ? Say, in going to the port of loading, and during the loading there. (/) 2 Q. B. D. pp. 188, 189. (i) Chap. III. As to the construction / \ ■««• 1- ■ T-jj 11 -in a n of exceptions introduced into a charter (g) Mackenzie v. Liddell, 10 Sess. Ca. ^ by reference to a lorm oi bill of lading, (4th) 706. ggg Houston v. Sansinena, 66 L. T. 246 ; (A) Supra, B. 74. Of. infra, s. 227. 68 L. T. 567. 174 THE CONTKACT. Sect. 148. Where such and such perils are to he " always excepted," the shipowner seems to he relieved from Hahility for any failure to perform his contract, if caused hy those perils, whenever they may have occurred. But where the clause runs " during the voyage always excepted," as it frequently does, there may be an amhiguity in the word " voyage." If the vessel is to proceed to a different port from that at which she is lying, and load there, the voyage thither is considered to he part of the chartered voyage, even though the vessel he allowed hy the charter to take, and in fact takes, a cargo outwards for other mer(fliants ; and although in doing so she proceeds first to another port, out of the route to the loading port {k). And if the vessel is prevented, or delayed in getting to the loading port [1) ; or if the loading is prevented, or a loss occurs during the loading, at that port {m), by a peril excepted "during the voyage," the exception applies. So, again, where the vessel is lying at her port of loading ; if she has to move from the place at which she is lying to a loading berth, the " voyage " to which the exceptions relate commences as soon as she breaks ground to go to that berth (n). But it seems that the exceptions do not apply to matters which may happen before the ship has entered upon the voyage dealt with by the charter party (^). So that if she were disabled by perils of the sea while still completing a voyage, on which she was engaged, at the time of chartering, the shipowner would not he excused. If the ship is to be loaded at the place where she is lying, it does not appear to be settled whether the " voyage " may begin before she has commenced her transit, in such a sense that the exceptions may relate to risks during, or prior to, the loading. In Crow v. (A) Hudson V. Hill, 43 L. J., 0. P. preyented her reaching Barrow tOl the 273. In Donaldson v. Little, 10 Sess. 16th, and again from reaching Glasgow Ca. (4th) 413, the vessel was to load a till the 26th. Held that there had been cargo at Barrow for Glasgow, and was no breach of the warranty, warranted to arrive at Glasgow "not _. later than Oct. 14th, unforeseen cir- ^^^^ Harrison v. Garthorne, 26 L. T. cixmstances excepted." She sailed from Glasgow on Oct. 11th, with an outward W Bruce v. Kicolopulo, 24 L. J., Ex. cargo for Dubliu, in time under ordi- 321 ; The Carron Park, 15 P. D. 203. nary circumstances to have got back to SeeNottebohnj).Eiohter, 18Q. B.D. 63. Barrow, loaded there, and returned to («) Barker v. M'Andrew 34 L. J. Glasgow by the 14th. But bad weather C. P. 191. owner? CONTRACTS BY CHAETER PARTY. 175 Ealk (o), it was decided that it did not. But that decision has Sect. 148. more than once been dissented from (p). 149. Where the exceptions relate to the whole of the charter It does not party, a failure of the shipowner to start for the loading port hy an terer's right agreed date will be excused, if it was caused by an excepted not arriving peril (g'). And so, also, of a failure to arrive by an agreed date (r). ™ ti™^- But this does not affect the right of the charterer, if any, to cancel the contract, in consequence of such a failure. That right remains ; whether it arose under an express clause giviag the charterer an option to cancel, should the ship not sail, or not arrive, by an agreed date (s), or only by implication, from a stipulation that she should sail [t), or should arrive, before a given date. 150. It has been said that the clause of exceptions in the charter Does it relate party is introduced " for the benefit of the master, not of the mer- as w^V. as chant " (m) ; and in Blight ». Page («), Lord Kenyon held that the charterer was not excused from providing a cargo where that had been prevented by a prohibition of the Russian Gf^overnment, though the charter excepted restraints of princes and rulers during the voyage. Perhaps, however, this depends upon the manner in which the clause is introduced. Where the contract is in the form of separate covenants, and the shipowner's covenant alone contains thp excep- tion clause, the construction that he only is to have the benefit of it seems necessary; and is well supported by authority (^z). But where the charter party is in the ordinary form of a mutual agree- ment, with the exception clause after the several clauses that relate to the voyage to the port of loading, the loading there, and the voyage to and delivery at the port of discharge (and not specially referring to any one of these), it would seem that the exceptions are as apphoable to the charterer's part, of loading and unloading, (o) 15 L. J., Q. B. 183. (s) Smith v. Dart, 14 Q. B. D. 105. (o) See per Pollock, 0. B., Bruce v. , v ^ , . -„, , ■NT- 1 1 o^ T T i? on, J ('') Crookewit v. Fletcher, 26 L. J., Nicolopulo, 24 L. J., Ex. 321 ; and per -p ico WiUes, J., Barker v. M'Andreiv, 34 ' " L. J., C. P. 191 ; The Oarron Park, 15 {«) Per Lord Alvanley in Touteng v. P. D. 203. Cf. Valente v. Gihbs, 28 Hubbard, 3 B. & P. p. 298. L. J., 0. P. 229 ; The Accomao, 15 , , , -d . x, „„. p jj 208. (x) S B. & P. 295, n. But cf. per I \' a ' TIT _i_- T. /-(_ 1 -1. Blackburn, J., Greipel v. Smith, L. R.. (?) See per Martin, B., Crookewit v. n q j, \-,-, •^'^•"i, -lj. a.., Fletcher, 26 L. J., Ex. 153, at p. 159. ^' ^' (r) Harrison v. Garthome, 26 L. T. {y) Sjoerds w. Lusoombe, 16 East, 201; 508. Storer v. Gordon, 3 M. & S, 308. 176 THE CONTEA.CT. Sect. 150. as they are to the shipowner's part of bringing the ship to the ports of loading and discharge, and safely deKvering (a). Blight V. Page (6), however, appears to he an authority to the contrary. In Grarston Co. v. Hickie (c), it was held that the exception clause in a charter party did not qualify a subsequent clause which provided that the freight should be paid " less cost of coals or coke delivered short of bill of lading quantity." Part of the cargo of coals was lost owing to perils which were excepted. StUl the charterers were allowed to deduct the cost of that part from the freight. It is now a frequent practice to express that the ordinary risks are " mutually excepted " ; and in such a case, at any rate, the exceptions protect the charterer as well as the shipowner {d). (a) See per Marfan, B., in Ford v. [b) 3 B. & P. 295, n. Coteswortli, L. E,., 5 Q. B. at p. 548 ; («) 18 Q. B. D. 17. Barrie v. The Peruvian Corporation, (•) Per Lord Esher, Serraino J). Camp- bell, (1891) 1 Q. B. 283, at p. 290 ; per Lindley, L. J., in Manchester Trust v. Tumess, (1895) 2 Q. B., at p. 545. {«) 17 C. B., N. S. 163. BILLS OF LADING GIVEN ON SHIPMENTS IN CHARTERED SHIP. 189 Court of Session in Scotland, in Delaurier ». Wyllie (t) ; and by Sect. 160. the Court of Appeal, in Serraino v. Campbell («) . And in Diede- richsen v. Farquharson («), the Court of Appeal (Rigby, L. J., dissenting) held that the same construction applied where the words were "freight and all other conditions as per charter party," omitting the word " paying." In an unreported case of Taylor v. Perrin, in the House of Lords, referred to in the last mentioned cases. Lord Blackburn spoke of Russell v. Niemann as correctly deciding " that the reference to the charter party is meant to bring in those conditions which would apply to the person who has taken the bill of lading, and in taking delivery of the cargo,, such as payment of demurrage, the payment of freight, the manner of paying, and so on, but is by no means to be taken to incorporate all the conditions of the charter party." In Gullischen v. Stewart (y) it was held that " other conditions as per charter party " did not bring into the bill of lading a cesser clause in the charter ; that being inconsistent with its character as a bill of lading. And in Hamilton ». Maokie (s) a clause in the charter requiring disputes under it to be referred to arbitration was held to have no appUoation to the biU of lading, and was, therefore, not brought in. It follows, a fortiori, that terms of the charter party which are inconsistent with those of the bill of lading are not incorporated by the words we are considering. Thus, in Gardner v. Trechmann (a), they did not make the indorsee of the bill of lading liable for part of the charter freight, which ought to have been paid at the port of loading ; for under the bill of lading the goods were deliverable on payment of the freight there stated. Nor was any lien under the charter, for the unpaid freight, there preserved against the indorsee ; that also being inconsistent with the bill of lading. Liens given by the charter party may, however, be preserved, as conditions which an indorsee of the bill of lading must satisfy, although there may be no personal liability of the indorsee for the amount secured by the lien. For example, with regard to claims for dead freight, or demurrage at the port of loading (6). The subject will be discussed hereafter (c). {t) n Sess. Ca. (4th) 167. («) 15 Q. B. D. 154. W 25 Q. B. D. 501 ; (1891) 1 Q. B. (j^ g^^ ^^^^ ^ ^arr, L. R., 6 Q. B. (x) (1898) 1 Q. B. 150. ^^^ ' *^^ *"-^'"''' ^' ^^^' *^ *° demurrage (y) 13 Q. B. D. 317. clauses. («) 5 Times Rep. 677. (e) Infra, ss. 668 ei seq. 190 THE CONTRACT. Sect. 161. 161. It is doubful how far the master has authority in the Master's absence of express provision to sign bills of lading which do not g?Te Mi^of ° preserve the owner's rights under the charter. The charterer cannot lading. apart from express agreement require him to do so [d). But as against shippers who have no notice of the terms of the charter party, or of the extent of the master's authority, and who are not put upon inquiry by any peculiarity in the transaction (e), a bill of lading in an ordinary form is within the master's apparent autho- rity, and is binding on the shipowner (/). Bills of Jading The common clause that the master shall "sign bnis of lading by master "as ^s required by the charterer, without prejudice to the charter required. party," gives an express authority from the owner which appears to be unlimited. The provision that the charter party is not to be prejudiced is rather a condition of the contract with the charterer than a limitation of the master's authority. It means that, not- withstanding any engagements made by the bills of lading, the contract. between the parties to the charter is to stand unaltered {g). The object of the whole clause generally is that biUs of lading may be signed which shall reserve such freights as may be procured by the charterer, and thus give him' an opportunity of making a profit upon the charter rates. Not uncommonly the bUls of lading are to be signed " at such rates of freight " as may be required by the charterer ; and even where the words are wider it is difficult to suppose that the intention can be to leave the whole character and terms of the bill of lading to the charterer's uncontrolled discretion. In AiTOspe v. Barr {h), the question was discussed in the Court of Session whether the captain, having a claim for dead freight and demurrage at the port of loading, could properly refuse to sign bills of lading unless they referred to the charter party; so as to preserve the liens there given for such claims. The charter party [d) Hyde v. Willis, 3 Camp. 202. Cf . to the charter, but he said the shippers Reynolds v. Jex, 34 L. J., Q. B. 251. "must be taken to have acted under the (e) SmaU «. Moates, 9 Bing. 674. authority of the freighter, and must be deemed to have notice of the charter (/) SandemanB.Scurr, Ii. R., 2Q. B. party and its contents." This view has 86. In Christie v. Lewis (2 B. & B. not, however, been followed in the later 410), it was said by Burrough, J., that cases. Cf. Peek v. Larsen, L. R., 12 where the goods to be shipped under a Eq. 378 ; The Stomoway, 46 L. T. 773. charter were to be such as were sent by {g) Per PoUook, C. B., Shand v. San- the freighter, the actual shippers could deraon, 28 L. J., Ex. p. 282 ; Gledstanes not be considered strangers to the i). Allen, 12 C. B. 202 ; Hansen v. charter party. The bUls of lading were Harrold, (1894) 1 Q. B. 612. in the ordinary form, and did not refer (A) 8 Sess. Ca. (4th Ser.) 602. BILLS OP LADING GIVEN ON SHIPMENTS IN CHARTERED SHIP. 191 required him " to sign bills of lading as presented at any rate of Sect. 161. freight without prejudice to this charter party." The opinion was expressed by the Lord President (Inglis) and by Lord Shand, that he was entitled to insist on the words " other conditions as per charter party." But in Hansen v. Harrold {i), where the captain was to sign bills of lading " at the current or any rate of freight required without prejudice to this charter party," it was held by the Court of Appeal that the captain could not have insisted on words in the bill of lading to preserve the hen, given by the charter party, for the charter party freight. Davey, L. J., after referring to Airospe v. Barr, said, " I do not think that the case is an authority for more than this, viz., that, except so far as the rate of freight is concerned, he ought not to sign any bill of lading which contains provisions at variance with the charter party. I am not prepared to say, if the captain had insisted on having created by the bill of lading a Hen in favour of the shipowner, not only for the bill of lading freight, but also for the charter party freight, that such a" stipula- tion would have been consistent with the obligation to grant a bill of lading at any or (it may be) a lower rate of freight " [k). In Eodocanaohi v. Milburn [l), the clause was, "The master to sign bill of lading at any rate of freight, and as customary at port of lading, without prejudice to the stipulation of this charter party, receiving the difference, if less than the rates specified therein, at port of lading." Much doubt was expressed as to the effect of the words " as customary at the port of lading." Lord Esher thought it impossible to suppose that they meant that the bill of lading was to be in the form customary at the port of lading ; and that they probably referred to the mode of signature. Lindley, L. J., was clearly of opinion that they did not mean that the captain was to have authority to sign bills of lading containing stipulations contradicting the provisions of the charter party {m). Clauses of this kind do not at any rate empower the master to Limits of sign bills of lading for more goods than have been put on board, authority, so as to estop the shipowner from disputing the quantities stated in (i) (1894) 1 Q. B. 612. L. E., 10 Ex. 274, p. 290 ; and per (A) (1894) 1 Q. B. p. 621. Of. BramweU, L. J., Jones ». Hough, 5 Ex. Brankelow Steamship Co. v. Canton Ins. D. 115, at p. 124. Office, (1899) 2 Q. B. 178 ; also per (Z) 17 Q. B. D. 316 ; 18 Q. B. D. 67. Kelly, C. B., in Gabarron v. Kreeft, \m) 18 a. B. D. 67, p. 78. i9S . THE CONTKACT. Sect. 161. them («). And, on the other hand, they do not generally import a -warranty by the charterers that they will not make a mistake in the quantities inserted in the hiUs of lading (o). Nor do such clauses generally authorise the master to give biUs of lading by which the freight is to be payable to the charterer or his nominees, so as to deprive the shipowner of his lien for the charter freight (p). In Eeynolds v. Jex (p), the charter party provided that bills of lading should be signed " at any rate of freight, without prejudice to this charter." The master, ia consideration of getting advances, gave a bill of lading for goods shipped by the charterer's agents, making freight payable at the destination to third persons ; this was held invalid, and a lien on the goods for a balance of the charter freight was maintained. In the Canada (p), the captain was to sign bills of lading " at the current or any rate of freight required, without prejudice to this charter party .... and should the freight list, according to bills of lading, show a less sum in the aggregate than chartered freight .... the difference to be paid in cash prior to the ship's clearance at the custom house." One of the biUs of lading was signed by the master making the freight on the goods payable at the port of loading; and that freight was paid there to the charterer, who failed however to pay in cash the diEEerence between the charter freight and the amount of bill of lading freight to be collected at the. destination. It was held by Sir F. Jeune that this bill of lading was given without authority ; that the payment to the charterer did not discharge the shippers ; and that the shipowners were entitled to a lien on the goods for the usual freight, which was taken to be that named in the bill of lading. The shippers were third -persons, but they had had notice of the terms of the charter party. ''Clean bills 161a. Sometimes the expression used is that "clean bills of of lading." in.,, i . lading are to be given. These words do not, however, seem to bear any definitely settled meaning {q). Used in the present (n) Brown v. Powell Coal Co., L. E., Arrospe v. Barr (8 Seas Ca. (4th) 602), 10 C. p. 662. and various meanings were given to (") ^ii^- them. The Lord President (Inglis) {p) Reynolds v. Jex, 7 B. & S. 86 ; said (p. 607): "It appears to me that 34 L. J., Q. B. 251 ; The Canada, 13 a clean hill of lading must be construed T. L. E. 238. Cf. The ShiUito, 3 Com. with reference to the circumstances of C^- **■ each particular case. If there is a (?) The words were much discussed in matter in dispute between parties as to BILLS OF LADING GIVEN OK SHIPMENTS IN CHAETEEED SHIP. 193 connection, they protably import that there must be nothing on Sect. I61a. the face of the bill of lading to denote that the shipowner has any claim against the goods except for the freight. As between a vendor and a purchaser the words would probably also refer to the description of the goods, and require that there be nothing which denotes that they are defective in condition or quantity. In Eayner v. Rederiaktiebolaget Condor (r) the charter party required the captain to " sign charterers' bills of lading as presented without qualification, except by adding weight unknown, within twenty-four hours after being loaded, or pay 10/. for every day's delay as and for liquidated damages, until the ship is totally lost or the cargo delivered." The captain refused to sign the bills of lading presented, without first inserting words" to signify an obli- gation to pay certain claims for demurrage, &c., at the port of discharge. Mathew, J., held that the charterers were entitled to nominal damages, but not to the penalty of 10/. a day. 161b. In time charters it is usual to insert an indemnity by the Indemnity charterers against consequences of their requiring the master to sign bnis of lading. Such an indemnity must be read with the obligations of the shipowner under the charter, and will generally relate only to Kabilities consequent upon an increase of obligation imposed by the bill of lading. the conditions on which the voyage is shand (p. 611) thought "that the true to take place, and the goods are to be meaning was that the captain shall sign carried and delivered, there a 'clean ' taig of lading, which, from their terms, bill of lading will have reference to the T^iu entitle the holder to delivery of the , subjeotof that dispute, and the meaning cargo as there described on payment of it wiU be that the master will not simply of the freight, or, at least, on cumber his bill of lading with any payment of an amount which may be allusion to it. Other cases may be ascertained on the face of the biU of imagined in which difficulties are fore- lading itself." seen, not as subjects of regular dispute, in Eestitution Steamship Co. v. Pirie bat where there are difficulties antici- (61 L. T. 330), Cave, J., after expressing pated, and if these form an element in a difficulty about the matter, adopted a the discussion between the parties, and definition from Maude and PoUock's the master signs the biU of lading, it Merchant Shipping (4th ed., p. 341), to will be understood that it is to exclude the effect that » clean bill of lading is all reference to such difficulties." one which acknowledges the shipment Lord Mure (p. 608) was of opinion of such and such goods, in good order, that "a clean bUl of lading must mean a without any quaUfioation, such as bill in the ordinary uniform style reoog- < ' weight unknown." nized in all ports of this country, and without any special stipulations different W (1895) 2 Q. B. 289 ; and see The from that ordinary style." WhileLord Princess, 70 L. T. 388. c. — c. o 194 THE CONTEACT. Sect. 161b. In Milbum v. Jamaica, &o. Co. (s), the charter required the captain to sign bills of lading at any rate of freight, and the charterers agreed "to indemnify the owners from any consequences that may arise from the captain following the charterers' instruc- tions and signing bills of lading." The charter excepted liability for negligence of the master, &c. The ship took on board govern- ment stores, and under the charterers' directions the captain gave bills of lading for them which contained no negKgence clause. Owing to negligent navigation of the ship she collided with another ship, and had to put back, and expenses were inouired by the shipowners which would ordinarily be made good in general average. No contribution could, however, be recovered from the Gj-ovemment in respect of the stores, owing to the omission of the negligence clause. The shipowners claimed the amount from the charterers under the indemnity claim, and it was held they were entitled to recover it. Parties not ad idem. Smidt V. Tiden. 162. Smidt v. Tiden (t) illustrates another kind of difficulty which may occur where the shipment is made through the inter- vention of a charterer. A ship had there been chartered by the master to Lyth, a shipbroker, to carry a cargo of railway iron to Grothenburg ; the freight, at the rate of 7s. 3d. per ton, to be paid in London on signing bills of lading. The owner to have a lien for freight. The master to sign bills of lading without prejudice to the charter. Lyth then chartered the ship to the defendants for the same cargo and voyage, afEecting to act as broker in the matter, but having no authority to do so. Under this charter the freight was to be at the rate of 8s. per ton, and was to be paid in London on signing bills of lading. The iron was shipped by the defendants under a bill of lading given for it by the master, making the freight payable " as per charter party," and it was delivered at Gothenburg without any freight having been paid to the shipowner. Lyth had, however, in the meantime obtained payment from the defendants of the 8s. a ton, under the charter made by him vdth them. The question was, whether the master could recover any freight from the defendants. («) 4 Com. Ca. 331. Cf. Park v. Duncan, 25 Sess. Ca. (4th) 528. (t) L. E., 9 Q. B. 446. BILLS OF LADING GIVEN ON SHIPMENTS IN CHARTERED SHIP. 195 It was held that he ooiald not, either on the bill of lading or Sect. 162. on an implied contract to pay reasonable freight for the carriage. " The bill of ladiag being ambiguous and equally capable of being applied to the one charter party as to the other, we cannot hold it to be a contract, or evidence of a contract, between the parties. It does not express that which was common to both minds, and therefore it is not biadiag upon the parties At no stage of the transaction were the parties ad idem. It follows that there was no contract, express or implied, upon which the plaintiff can recover against the defendants " (m). («) As to a right of lien in such a case, see per Lush, J., L. E., 9 Q. B. at p. 450 ; The Canada, 13 T. L. E. 238 ; Eeynolda v. Jex, 34 L. J., Q. B. 251.' o2 196 THE CONTRACT. CHAPTER VI. ON THE CONSTRUCTION OF THE CONTRACT ; AND THE EFFECT OF CUSTOMS OF TRADE. SECT. Introductory 163 The dooument must govern, so far as clear 164 Indefinite or amlbiguoas terms .... 165 Construction is for the judge 166 Evidence of extrinsic facts — Pre- vious couise of business 167 Ordinary meaning of words gene- rally adopted — Technical words. . 168 Words having special trade mean- ings — Geographical terms 169 Presumption that special meaning Tvas intended 170 Evidence of mere opinion is not relevant 171 Words to be construed " contra pro- ferentem " 172 Effect to he given to whole docu- ment — Printed clauses 173 Conditions precedent 174 When the character of the under- taking is affected 176 Independent promises not amount- ing to the whole consideration . , 176 Conditions not available after con- sideration partly received — Waiver of conditions 177 Nor if the failure of the condition is due to the party who reUes on it. 178 Implied terms — Reasonable per- formance 179 Ambiguity of " reasonable " 180 Reference to trade practices— Not necessarily uniform 181 SECT. Illustrations 182 A custom may add terms to the contract 183 May bind persons ignorant of it — Effect of employing agent 184 It must be known outside the trade in order to bind persons ignorant 185 A custom annexing a term must be definite and uniformly adopted . . 186 Otherwise where some implied term is required 187 Custom will not generally deter- mine an accidental question .... 188 A custom must be reasonable .... 189 Illustrations 190 A general custom contrary to law not valid 191 Where no rule of law exists , 192 Former practice of taking opinions of business men 193 Need of information on new mat- ters ; e.g. , negotiable instruments 194 The custom must relate to the sub- ject of the contract 195 It must be consistent with the con- tract 196 Effect of local customs — When re- cognized throughout the trade . . 197 As to matters to be performed locally 198 Norden Steamship Co. v. Dempsey. 199 As against indorsee of bill of lading 200 Introductory. 163. Many of the difficulties which arise in relation to the contracts we are considering, are due to doubts ahout the true e£Eect of the CONSTRUCTION OF TH^ CONTEACT AND CUSTOMS OF TRADE. 197 doouments used to express them. Sometimes the meaning of a Sect. 163. word or phrase is ohscure or ambiguous ; sometimes the materiality of a clause, or its effect in relation to other clauses, is uncertain. It will, therefore, be well to discuss shortly the manner in which these doubts are dealt with by the Courts. Also, some discussion is needful of the manner in which terms are implied into the contract by the law, and of the effect of usages of trade in explaining words used in the contract ; in showing how its provisions should be carried out ; and in adding qualifying or independent terms to it. These matters will form the subjects of this chapter. 164. In construing a commercial contract, the object must be The document to arrive at the real intention of the parties to it. It is that, so so far as clear. far as it can be ascertained, which must determine the meanings of the words and phrases used ; their materiality, and their dependence one upon another. But the intention must be judged of from the expressions which the parties themselves have given of it — not by reference to what might probably, or ought in fair- ness to have been the intention. Men should be able to rely upon the Courts to give full effect to the terms for which they stipulate, and to the Kmitations they set upon the obligations they undertake. The document which shows the contract is, therefore, to be allowed to govern, without reserve, so far as it speaks clearly. And as that document is generally to be regarded as the expression by the parties of their agreement, it cannot be contradicted or qualified, or added to, by any preliminary or con- temporaneous agreements made between them. Nor can evidence be given to show that their real intention was different from that which appears in the writing, so far as that is clearly and unambiguously expressed {a). Unless, indeed, there has been mis- representation or mistake, or unless it can be shown that the document was not meant to express the whole contract (6), or that it was not to operate unless some preliminary condition were fulfiUed (c). (a) See per Blackburn, J., Peek v. Delaware, 14 Wallace, 579. Nortli Staffordshire Kail. Co., 32 L. J., „ t t „ „ , T. 11 1 ^ T, -NT- 1, 1 (*) See AUau v. Sundius, 31 L. J., Q. B. 241 ; per PoUock, C. B., Nichol v. ^ ' ' Godts, 23L. J., Ex. 314; perDenman, ^' '' 0. J., Goss V. Lord Nugent, 5 B. & Ad. (c) Bannerman v. White, 31 L. J., 58 ; Hoars v. Graham, 3 Camp. 67 ; The C. P. 28. 198 THE CONTEACT. Sect. 164. Indefinite or ambiguous terms. Construction is for the judge. Evidence of extrinsic facts. This rule does not, however, prevent effect being given to an agreement, made at the same time, upon a matter which is collateral to the contract shown by the document {d). Nor does it prevent either party from showing that the contract was altered, or rescinded, after it was made, either verbally or otherwise (e). 165. But where the terms used are indefinite, or capable of more than one meaning, or if the materiality or effect of a clause is doubtful, the doubt must be solved by reference to the meanings which the parties probably attributed to those terms or provisions when they made the contract (/). Por this purpose, regard must be paid to the relations subsisting between the parties at the time of entering into the contract, and to its subject-matter as understood by them, and to the objects they then had in view. Those who are to construe the document should therefore, as far as possible, be informed with the same facts, and the same business knowledge; as those who made it. 166. The duty of construing the contract, however, lies upon the judge of the Court, not upon the jury. A jury may be called upon to decide as to the meaning of a technical expression, or of a word or phrase which may have been used in a peculiar sense; but it is for the judge to say what the effect of the whole is, when he has been informed of the facts, and of any such special meanings. "The Court it is which, when once it is in possession of the circumstances surrounding the contract, and of any peculiarity of meaning which may be attached by reason of the custom of the trade to any of the words of that contract, has to place the construction upon the contract " {g). 167. Mercantile contracts are commonly expressed with such brevity and want of definiteness, that information with regard to the relative positions in which the parties stood, and to the subject- matter and objects of their contract, is often very necessary to (a!) See Erskine v. Adeane, L. E., 8 Ch. 756 ; Morgan v. Griffith, L. R., 6 Ex. 70 ; Angell v. Duke, L. E., 10 Q. B. 174. [e) White v. Parkin, 12 East, 670. (/) An. illustration is the rule as to construing general words, of indefinite extent, as relating to matters ejusdem generis -witli the special proTisions, pre- ceding the general words. Eor instance, see as to the meaning of "or otlierwise," Norman v. Biunington, 25 Q. B. D. 476 ; Baersehnan v. Bailey, (1895) 2 Q. B. 301 ; cargo per Waikato v. New Zealand Sh. Co., (1899) 1 Q. B. 56. (^) Per Lord Cairns, Bowes v. Shand, 2 A. C. 455, at p. 462. Cf . Ashforth v. Eedford, L. E., 9 C. P. 20 ; Alexander V. Vanderzee, L. E., 7 0. P. 630. CONSTRUCTION OP THE CONTRACT AND CUSTOMS OF TRADE. 199 enable the Court to judge of the meaning (A). And if the docu- Sect. 167. ment is ambiguous or indefinite, evidence on these points may he given, and ought to he taken into account in construing it. Thus, upon a question as to the meaning of a warranty in a marine policy («), Lord Watson said: "In the absence of evi- dence sufficient to show that a technical meaning has been attached to the words ' no St. Lawrence,' or (it is probably more accurate to say) in consequence of its being established by the evidence that the words have no technical meaning, it becomes necessary for the Court to construe them, and, in construing them, I appre- hend that it is perfectly legitimate to take into account such extrinsic facts as the parties themselves either had, or must be held to have had, in view when they entered into the contract of insurance." In such cases the previous course of business between the parties Previous may be taken into account. This was done, for example, in busmess. Lewis V. Great Western Eail Co. (J), where the question was as to the effect of the words " owner's risk " in a 'contract note. BramweU, L. J., there said (k) : "I think it is a rule of evidence or law that where words are used which would comprehend some other than one necessarily exclusive meaning upon which the judges are to put an interpretation, then, as Parke, B., said, all the surrounding circumstances, and the coxrrse of dealing between the parties, not only may, but must, be looked at to ascertain the meaning of those words when used in reference to those surrounding circumstances and that course of dealing." And Brett, L. J., said (l) : " I apprehend that, in order to con- strue a written document, the Court is entitled to have all the facts relating to it, and which were existing at the time the written contract was made, and which were known to both parties. Certain facts existing at a time when a written contract is made are sometimes customs of trade, or the ordinary usages of trade ; sometimes the course of business between the parties ; sometimes they consist of a knowledge of the matter about which the parties (h) See Heffield v. Meadows, L. R., i North StafEordshire Rail. Co., 10 H. L. 0. P. 595; Morris ». Le-rison, 1 C. P. D. 0. 473; The Curfe-w, (1891) P. 131, 1S5 ; Heugh v. Esoombe, 4 L. T. 517. where letters showing the intention were ,,T.. ■,, T^ „ . /-, o.^ ^ looked at ; but see The Nifa, (1892) P. (i) Birrell ^. Dryer, 9 A. 0. 345, ^^ m ' \ / P- ^^^- (A) 3 Q. B. D. at p. 202. iJ) 3 Q. B. D. 195. Cf. Peek v. {!) At p. 208 200 . THE CONTRACT. J Sect. 167. were negotiating ; tte Court is entitled to ask for those facts to enable it to oonstrue the written dojcument, not simply because they are customs of trade, or the course of business between the parties, but because they are facts which were existing at the time, and which have a relation to the written contract, and which are things which must be taken to have been known by both parties to the contract." Ordinary igg. Apart from any technical or peculiar meaning which the meaning of ^ , , . , . words gene- words used may be shown to have, they are to be taken in their y °v ^ ■ Qr(Jinary, generally accepted, meanings. They are to be " under- stood in their plain, ordinary, and popular sense, unless they have generally, in respect to the subject-matter, as by the known usage of trade, or the like, acquired a peculiar sense distinct from the popular sense of the same words ; or unless the contract evidently points out that they must, in the particular instance, and in order to effectuate the immediate intention of the parties to that con- tract, be understood in some other special and peculiar sense " (m). Technical ]3^^ where a word is technical, so that special knowledge is ■words. _ _ _ 7 ~ required in order to arrive at its meaning, evidence on the point may be given, and the jury should determine it (w). For example, this was done as to the word " privilege," in an agreement with the master of a ship, by which he was to receive a certain sum " in lieu of privilege and primage " (o). So again, as to the mean- ing of " ship to be addressed " to the charterer's agents (p). Words having 169. Again, a word or phrase used may have a peculiar, or meankig^^ ^ ^ Specially limited sense in the trade, although it may be an ordinary, well-known expression, and free from any apparent ambiguity (q). If so, evidence of its meaning may be given. The object is to get at the real effect to the parties of the terms used ; and if they have acquired secondary meanings in connec- tion with particular kinds of transactions, it is as important to have them translated, as if the contract were in a foreign language. Thus, a "thousand" rabbits, in a lease, was shown to mean by custom a hundred dozen (r) ; a " year," in a theatrical agree- ment, meant only that part of the year during which the theatre (m) Per Lord Ellenborough, Robert- (y) See per Lord Cairns, Bowes v. son V. French, 4 East, at p. 136. Shand, 2 A. C. 455, p. 468 ; Myers v. in) Hills V. Evans, 3] L. J., Ch. 457. Sari, 30 L. J., Q. B. 9. Cf. Holt v. [o) Birch v. Depeyster, 4 Camp. 385. CoUyer, 16 Oh. D. 718. {/l Hibbert v. Owen, 2 F. . PagUano, L. R., 6 Ex. 9. („) gg l. T. 212. The decision in (m) See per Lord Ellenborougli in o . , .^, ., ■, Robertson .. I^ench, 4 East, 130, at ^"™"°" "" ^^' '''''' *° ^''^^ ''««" p. 134 ; and Moore v. Harris, 45 L. J., "^°''&' ^^^ the Nifa, (1892) P. 411 ; P. 0. 63, at p. 60. »«/»•«, 8. 260. CONSTRUCTION OF THE CONTEACT AND CUSTOMS OP TBADE. 205 modem times tliat the question whether oovenants are to be held Sect. 174. dependent or independent of each other is to be determined by the intention and meaning of the parties as it appears on the instru- ment, and by the application of common sense to each particular case ; to which intention, when once discovered, all technical forms of expression must give way " (o). 175. We have, in a previous Chapter (^), discussed the effect When the J. i_ i- • 1 1 L • J j-i" character of 01 representations m a charter party as promises, and as conditions ^.j^g umjer- precedent to the charterer's obligation to load. It there appeared *^^|^^^ that a representation is both the one and the other, if its truth is so material to the charterer that a failure to satisfy it will sub- stantially alter the character of his undertaking. The rule of interpretation thus suggested may perhaps be applied more, broadly. An undertaking in the contract may be entered into upon the assumption that when the time for its per- formance arrives, certain acts will have been done by the other party. And if the acts of the one party, which it was expected would have been performed, were, in the view of the parties at the time of contracting, so material that their omission would give a substantially different character to the undertaking of the other, it may be inferred that their performance was intended to be a condi- tion precedent to that undertaking. Thus, a charterer's obligation to load does not arise if the vessel is delayed in arriving at her loading port to such an extent that the contemplated adventure becomes practically impossible; though a delay which is merely inconvenient or injurious to the charterer, but does not so alter the conditions as to require a different kind of loading, or expose him to a different kind of risk, does not excuse him [q). In Storer v. Grordon (r), the question arose whether delivery of an outward cargo was a condition precedent to the charterer's duty to load a return cargo. The charter party there provided that the ship should take an outward cargo and deliver it to the charterers at Naples, and that " having so done," she should receive a return cargo ; and the charterers engaged that they would provide a (o) Per Tindal, C. J., Stavers v. Cur- {q) See the oases collected, infra, s. 230 ling, 3 Bing. N. C. 353, at p. 368. Of. et seq. Express stipulations as to time per Ashurst, J., Hotham v. East India are generally treated as conditions pre- Co., 1 T. E. 638; Barnard v. Eaber, cedent, s. 21^ et aeq. (1893) 1 Q. B. 340. (r) 3 M. & S. 308. See also Ohlsen {p) Sect. 135 et seq, v. Drummond, i Doug. 356. 206 THE CONTRACT. Sect. 175. Independent promises not amounting to the whole consideration. Conditions not available after con- sideration partly re- ceived. return cargo. It was held that they were not absolved from load- ing one by a failure of the shipowner to deliver the outward cargo, which was due to a seizure by the Neapolitan G-ovemment. Lord Ellenborough, after showing that an exception could not, by implication from the wording of the plaintiff's covenant, be introduced into that of the defendant's, said : " Nor is there any ground from the nature of the thing, to imply such an exception. The outward cargo may be intended as the fund to procure the homeward cargo, but it by no means follows that it must be so, and in very many instances the homeward cargo is procured and ia readiness to ship before the outward cargo arrives." 176. Where the undertaking on one side is not so connected with the act which was to have been done on the other side, that its character will be altered by the failure to perf omx that act, the latter is not generally a condition precedent, unless it formed substantially the whole consideration for the undertaking. For example, it is no excuse for the non-payment of an agreed lump freight that part of the cargo has not been taken on board through the shipowner's default (s), or that the ship did not sail with the first convoy as agreed {t). 111. Further, it must be borne in mind that when a contract has been partly performed, and the consideration for a promise in part received, that promise must generally be performed, although under different conditions from those anticipated. The remedy, i£ any, for the loss arising from that difference, is in damages. It is not to be presumed that it was intended that, imder those circumstances, performance should be excused. If the contracting party " has received the whole or any sub- stantial part of the consideration for the promise on his part, the warranty loses the character of a condition, or, to speak more properly, perhaps, ceases to be available as a condition, and becomes a warranty in the narrow sense of the word, namely, a stipulation by way of agreement, for the breach of which a compensation must be sought in damages " (m). * Thus, in Pust v. Dowie {x), a charter party provided that the (s) Ritchie ». Atkinson, 10 East, 296 ; Seeger v. Duthie, 29 L. J., C. P. 253 ; 30 L. J., 0. P. 65. {t) Davidson V. Cr-wynne, 12 East, 381. («) Behn -o. Bumess, 32 L. J., Q. B. 204, at p. 206. See Ellen v. Topp, 20 L. J.,,Ex. 241. {x) 32 L. J., Q. B. 179; affirmed in Ex. Ch., 34 L. J., Q. B. 127. CONSTRUCTION OF THE CONTRACT AND CUSTOMS OF TRADE. 207 sHip should take a full and complete cargo, and that the ohai'terer Sect. 177. should pay 1,650^. in full for the voyage, " on condition of her taking a cargo of not less than 1,000 tons." To an action for an unpaid balance of this freight, it was pleaded that the Tessel did not, nor could take a cargo of not less than 1,000 tons of weight and measurement, hut could and did only take a much smaller cargo. It was held on demurrer, that this was no answer to the action ; for although the hreach of the condition as to the ship's tonnage might have entitled the charterer to refuse to load, yet, having loaded, and having had the benefit of part, at any rate, of the consideration, he could not then be allowed to say that because the condition had not been performed, he would pay nothing. " The only way that justice can be done is, by holding the plaintiff entitled to maintain this action, leaving, the defen- dant to one of two remedies, either by giving the failure of the full tonnage in reduction of damages, or by a cross action " (y). So, again, the unseaworthiness of the ship, though it would entitle the charterer to refuse to load, will not excuse him from contributing to a general average sacrifice incurred on the voyage with the cargo which he has in fact loaded ; unless, indeed, the average loss was the consequence of that very unseaworthiness (2). And if the charterer, knowing that a condition of the contract WaiTer of , is not satisfied, stiU allows the owner to act upon the charter o°^'^*'^°^- party, e.g., by sending his ship to the loading port, he cannot afterwards rely on the breach of that condition as an excuse for not loading her {a). In Bentsen v. Taylor (h) a ship, described as " now sailed or about to sail from a pitch-pine port to the United Kingdom," was chartered by the defendants to proceed to Quebec, after discharging homeward cargo, and there load from the defendants. The description proved to be wrong, and objection was taken by th^ charterers. Before she sailed for Quebec they wrote, " you must therefore clearly understand that, if you send her out to load under our charter party, we shall protest against loading, and difference) of freight and insurance upon goods there shipped." It was held, (y) Per Cookbum, 0. J., 32 L. J., {a) Dimeoh v. Corlett, 12 Moo. P. C. Q. S. p. 181. And see Ritchie v. Atkin- 199 ; conmieiited on in Behn ». Bumess, Bon, 10 East, 295 ; Davidson v. Orvrjane, 32 L. J., Q. B. at p. 208. 12 East, 381.. _ {fi) Bentsen d. Taylor, (1893) 2 Q. B: («) See Sohloss v. Heriot, 32 L. J., 274. Of. Olsen v, Hunter-Benu, 64 C. P. 211 ; Strang v. Scott, 14 A. 0. 601. Fed. Rep. 630. 208 TEE CONTRACT. Sect. 177. Nor if the failure of the condition is due to the party who relies on it. Implied terms. Eeasonahle performance. by the Court of Appeal, tliat the charterers had led the shipowner to belieTe that they intended to treat the misdescription as a breach of contract only, and not as a failure to perform a condition precedent ; and had therefore lost the right to refuse to load the ship when she reached Quebec. 178. Also, if the condition to be fulfilled is that something shall have been done by the party who relies upon it, he will not be excused if he himself improperly failed to perform it. Thus, in Hotham v. East India Co. (c), the charter proyided that no claim should be made for short loading unless it should be certified by the company's agents ; and upon a claim being made, they reHed upon the absence of a certificate. Ashujst, J., deliver- ing the judgment of the Court, said : " It is unnecessary to say whether the clause relative to the certificate be a condition pre- cedent or not ; for granting it to be a condition precedent, yet the plaintiffs having taken aU proper steps to obtain the certifi- cate, and it being rendered impossible to be performed by the neglect and default of the company's agents, which the jury have found to be the case, it is equal to performance." 179. Next, as to the terms which are to be implied in mer- cantile contracts. It is obvious that in a transaction which in- volves a great number of different acts, to be carried out under circumstances which cannot be definitely anticipated, no complete statement of the contract can be made. The broad lines of it are laid down, but the manner in which it is to be worked out is for the most part not expressed. We have then to consider upon what principles details are to be supplied where the contract is silent. So far as the contract is express on any point, rules which would otherwise apply as to implying terms on that point have no opera- tion, and no term can be implied which is not consistent with those that are expressed. But, apart from these considerations, one general rule may be said to govern the. performance of the contract, viz., that it must be performed in a reasonable manner and with reasonable diligence on each side. Where the manner or place of doing an act, or the time at which or within which it is to be done, is left undefined, it is to be determined by reference (f) 1 T, R. 638. CONSTEUCTION OF THE CONTEACT AND CUSTOMS OF TRADE. 209 to what is reasonable, having regard to the ciroumstances of the Sect. 179. particular case (d). This is, however, subject to any definite rule on the particular point in question which may have been established by the law, and also to any definite rule which may have been established by custom in the particular trade. Eules of law or custom of this kind are part of the groundwork of the contract. The matters to be decided by the standard of what is reasonable are those to which no agreement or established rule applies. " The express provisions of a maritime contract generally include and govern cases of usual occurrence and not unusual events, it being im- plied that if such events should occur the parties shall act in a reasonable manner, having regard to the character of the contract, the usage in like cases, if any, and the general provisions of the law"(e). 180. It is important to note that the requirement of a reasonable Ambiguity of performance may be understood in two distinctly different ways. The standard may be that of suitability and fairness under the circumstances which ordinarily exist, when acts of the kind in question have to be performed ; or it may be that of suitability and fairness under the circumstances which actually obtain, when the particular act in fact comes to be performed. Thus, where no time for doing an act is fixed, it is generally said that it must be done within a " reasonable time." This may mean within a time which would under ordinary circumstances be reasonable, in which case it would be no excuse for an unusual delay that it had been due to causes which the actor could not have avoided, and for which he was not responsible. Or it may mean that the time occupied must not be more than is reasonable under the circumstances which, in fact, arise ; that the act must be done with such diligence and despatch as an ordinary man might fairly be expected to use under those circumstances, and that an enforced delay would be excusable. The earlier reported cases did not show very consistently which of these two views is the right one. But it seems now esta- blished that the latter,- the less rigid, doctrine is right. We are considering cases in which the person making the promise has avoided any express obligation to perform it, in all events, in a (<^ See per Lord Watson in Dahl v. («) Per Willes, J., Hanson v. Eoyden, Nelson, 6 A. C. 38, at p. 59. L. R., 3 0. P. 47, at p. 50. C. — C. F 210 THE CONTRACT. Iteference to trade'prao- tices. Sect. 180. particular manner, or in a particular time. And it would be unjust that the law should, by implication, fasten upon him an obligation which might have been stipulated for expressly, and which would, in the ordinary course, have been so stipulated for, if the parties had had such conditions in their minds (/) . That the effect would be to impose such obligations, if the test of what is reasonable under ordinary circumstances were adopted, is clear; for the standard would be a fixed one, unaffected by the actual circumstances. A reasonable time for doing an act under ordinary circumstances is a quantity which is calculable at any time, and therefore is as much a fixed quantity as a defined period would be. 181. What is a reasonable performance may often be ascertained by reference to the ordinary practices of men engaged in the same and other kindred businesses. The methods they adopt, and the conditions they impose on one another, indicate what they regard as fair and suitable in carrying out such transactions, and thus generally show what is reasonable in the opinions of those best able to judge. Moreover, when things are ordinarily done at the place in some particular way, it would generally not be convenient, and therefore not reasonable, to adopt a method which is not consistent with the usual arrangements. For example, as to the delivery of goods at a certain port : the place within the port at which delivery should be made, and the manner and time of giving it, are ascertained by reference to the practices and habits of the business men of the place. There may be no invariable practice on any of these points. In each case there may be several alternatives, all consistent with what is usual. But the various usual practices go to show what axe and are not reasonable methods of performing the contract, and it would be inconvenient and unreasonable not to work within the limits indicated by them {g). Not neoes- We are here dealing with a much more indefinite subject than formT^™^" that of customs of trade, strictly so-caUed. A definite uniform (/) See per Martin, B., Ford v. Cotes- ■worth, L. E,., 6 Q. B. 544, at p. 648 ; also Hick v. Rodocanaohi, (1891) 2 Q. B. 626, per Lindley, L. J., p. 638, and per Fry, L. J., p. 646 ; affirmed as Hick V. Raymond, (1893) A. C. 22. And see those cases and others discussed infra, SB. 616, 616. (^) It is not quite accurate to say that the implied term of the contract is to perform it in accordance with the prac- tice of the port, for every way of doing a thing which is consistent with usual practices may not under the particular circumstauoes be reasonable. Cf. as. 249, 460, 461, mfm. CONSTRUCTION OF THE CONTRACT AND CUSTOMS OF TRADE. 211 custom may, as we shall see, Ibe impliedly incorporated into the Sect. 181. contract with the effect of adding terms to it. The customary practices we are now considering need not he either definite or uniform, and though they are of importance in showing how the agreed terms of the contract are to he understood, and carried out, they cannot add other independent terms to it. Moreover, such varying practices axe only some guide to what is a reasonable manner of performing the contract, whereas a definite custom imported into the contract becomes the guide and rule as to what is to be done {h). 182. The following cases illustrate the bearing of customary Illustrations. though not uniform practices. In Da Costa v. Edmunds («'), an action on a policy of insurance upon some carboys of vitriol which had been stowed on deck, evidence was given that such carboys were very frequently carried on deck, though it was also usual to stow them below. Lord . EUenborough left it to the jury to say whether it was usual to carry vitriol on deck, and whether these carboys were properly stowed. If there was a usage, the under- writers were bound to take notice of it without any communication. If there was no usage to carry vitriol on deck, they would not be liable. The jury found for the plaintiff, and the Court refused a rule for a new trial (k). And usage may justify a shipowner in stowing cargo in a particular way, e.ff., on deck, although another way may be safer (l). So, again, the manner in which the obligation to load a full cargo is to be satisfied may be determined by reference to the special methods of preparing .or packing the goods for ship- ment ordinarily adopted at the loading port ; as in Benson v. Schneider (m), where it was shown to be the practice, at New Orleans, to re-compress cotton before shipping it ; and in Cuthbert V. Gumming (w), where a cargo of sugar and molasses, packed in {h) An express reference in the con- Exchange Ass. Co., 2 C. & J. 244 ; tract to the custom of the port generally Vallance v. Dewar, 1 Camp. 603 ; Ougier relates to the customary practices of the v. Jennings, and Kangston v. Boiibbs, port, see per Lord Blaokhum, Postle- ibid., in notes. thwaite v. Freeland, 5 A. C. 599, at p. {1} Per Tindal, C. J., Gould ji. Oliver, 616. 2 M. & G. 208, p. 236. (j) 4 Camp. 142. (m) 7 Taun. 273. (A) See also Noble v. 'Kennoway, 2 {n) 24 L. J., Ex. 198, 310 ; and see Doug. 510 ; Pdly v. Royal Exchange Duokett v. Satterfield, L. R., 3 C. P. Ass. Co., 1 Bun-. 341 ; Blackett v. Royal 227. p2 212 THE CONTRACT. Sect. 182. hogsheads and puncheons according to the practice at Trinidad, was held to satisfy the contract, although, owing to this mode of packing, it did not fill the ship. So, in Haynes vi. Halliday (o), a practice of taking the decks out of decked boats, when shipping them, was proved ; and a refusal to perform an undertaking to carry a boat in any other manner was held not to be a breach of the contract. And, again, the manner in which a ship should be loaded or discharged by the charterer may be shown by reference to the customary practices at the port {p) ; also the place where the ship should be lying; and whether she should load or discharge her cargo at one spot, or at more than one spot, moving onward as her draft of water alters (g). And where there are several suitable discharging places in the port, usage may determine how the choice among them is to be made (r). Also the acts to be done by the carrier in delivering may perhaps to some extent be determined in the same way (s). In these cases we have practices which, though not necessarily definite or invariable, yet indicate how the contract may and may not be performed. Aoustommay 183. But further, a usage of trade may not only have the effect the oouteact. of explaining the terms of a contract, or of showing how they ought to be performed, but also it may add a term to the contract which the parties have not thought it necessary to express. " It has long been settled that, in commercial transactions, extrinsic evidence of custom and usage is admissible to annex incidents to written contracts, in matters with respect to which they are silent. The same rule has also been applied in other transactions of life, in which known usages have been established and prevailed ; and this has been done upon the principle of presumption that, in such transactions, the parties did not mean to express in writing the whole of the contract by which they intended to be bound, but to contract with reference to those known usages " {t). [o] 7 Bing. 587. Carr. b. 301 (n.). \p) Hudson V. Ede, L. R., 2 Q. B. (s) See Walker v. Jackson, 10 M. & 666; L. R., 3 Q. B. 412; Smith v. W. 161. How far unusual burdens may Eosario Nitrate Co., (1894) 1 Q. B. 174. thus be put upon a shipowner, ignorant q) M'Intosh v. Sinclair, Ir. E,, 11 of the usages of the place, seems to be C. L. 456 ; Nielsen v. Wait, 14 Q. B. D. doubtful. See infra, ss. 198, 462. 616 ; 16 Q. B. D. 67. («) Per Parke, B., Hutton ii. Warren, (r) See The Brig Fittler, cited Ang. 1 M. & W. 466, at p. 476. CONSTRUCTION OF THE CONTRACT AND CUSTOMS OF TRADE, 213 When a practice has come to be constantly followed hy all those Sect. 183. engaged in a trade, and is such that its existence is well known among them, it becomes unnecessary in contracting to expressly insert the condition or rule which it establishes. That is adopted tacitly, and taken for granted, as one of the data of the transaction. And if on the particular occasion it were intended not to follow it, that intention would naturally be expressed in the contract. A uniform practice of this kind is called a custom of the trade ; and where such a custom prevails, it is presumed that a contract made by persons in that trade was intended to incorporate it {u), unless the contract has either expressly excluded it, or contains terms with which the custom is not consistent, and so has excluded it by implication. The custom overrides the rule of law which would otherwise apply ; just as an expressed term of a contract supersedes the term which the law would otherwise have implied. But the custom is not law ; it depends for its operation upon con- tract. So that unless the circumstances under which the contract was made were such that a knowledge of the custom, and an inten- tion to incorporate it, can properly be presumed, the custom ought not to qualify, or add to the effect of the contract, as interpreted by the law (»). 184. The presumption is that the custom is known to aU. persons May bind who engage in the trade. And even if one of the parties to the rant°o/itf°°' contract has previously been a stranger to the trade, and is in fact ignorant of the custom, still the same rule will generally apply. For the other party is entitled to assume, unless he has know- ledge to the contrary, that the stranger knows what is notorious in the trade, and that he intends to contract upon the usual footing. " I think it is now thoroughly established that a person who deals in a general market is bound to inquire what the usages are, and that those who deal with him have a right to hold him bound by them to the same extent as they would have been entitled to hold a person bound who belonged to the place. He is precluded from setting up, as against the persons he dealt with, his ignorance of that which he ought to know " {y). («) Parol evidence of a, custom may {x) An alleged custom at a discharg- thus add a term to tte written contract, ing port, where tke whole trade was in though parol evidence of an additional the hands of the merchant setting it up, express agreement might be inadmis- was held not binding : Clacevich v. Bible. See Fawkes v. Lamb, 31 L. J., Hutcheson, 15 Sess. Ca. (4th), 11. Q. B. 98. Cf. Allan 'u. Sundius, 31 (y) Per Blackburn, J., MoUett v. L. J,, Ex. 307; Syers v. Jones, 2Ex.ni Robinson, L. R., 7 C. P. 84, at p. Ill, 214 THE CONTEACT. Sect. 184. The meaning of a " market " in this connection is not very clearly defined ; and perhaps the difficulty of definition would be even greater with regard to a " trade " carried on between different places. Where such a trade as that of exporting particular goods from certain ports to certain others is regularly carried on by a body of merchants, who constantly employ ships belonging to a particular body of shipowners, perhaps the conditions are analogous to those of a " general market " ; so that one who enters into such a trade, upon an occasion, may be presumed to know its customs, and may be bound by them, although he may in fact be ignorant about them. But unless a custom has been established among both merchants and shipowners, habitually engaged in the trade, it is difficult to see how such a presumption could arise (z). Effect of If an agent is employed to do business in a general market, or employing agent trade, he is impliedly authorised to transact it according to the known usages and customs of that market or of the trade, although the principal may be ignorant of them (a) ; and though they may require or enable the agent to act in a manner not generally usual in such an employment (5). But not so if the usage be incon- sistent with the essential character of the employment (c) ; or if it be unfair to the priucipal (d) . In such cases the employment of the agent does not give him authority to contract on that basis. It must be 185. But a custom must be well known outside the particular known out- i-j-i/i- side the trade trade, or place where it is adopted, or it cannot bind persons outside teiT persons ^^° ^^^ ignorant of it (e). It ought to be "so general and Ignorant. notorious that persons dealing in the market could easily ascertain it, and must be presumed to have been aware of it " (/). Where a claim of lien by usage was made by bleachers, Willes, J., directed the jury that the usage must be " so universally acquiesced in that everybody in the trade knew it, or could have ascertained it if he had taken the pains to inquire " (g). In Bartlett ». Pentland (^), Lord Tenterden said, "As to the (a) See infra, s. 197. D. 467. (a) GrissellD.Bristowe, L. E., 3C.P. {d) Bartlett v. Pentland, 10 B. & C. 112 ; 4 C. P. 36 ; Taylor v. Stray, 26 760 ; Sweetiug v. Pearoe, 30 L. J., C. P. Ij. J., C. P. 185, 287 ; Buckle v. Knoop, 109. See infra, s. 189. L. R., 2 Ex. 125. (e) See Eushworth ». Hadfleld, 6 (}) Cropper v. Cook, L. E., 3 C. P. East, 519 ; 7 East, 224. 194 ; Johnston 1). Usbome, 11 A. & E. {/) Per BovUl, C. J., Urissell v. 549. Bristowe, L. E., 3 C. P. 112, at p. 128. (c) Eohinson v. Mollett, L. E., 7 {ff) Plaice v. AUoook, 4 F. & E. 1074. H. L. 802 ; Perry v. Bamett, 14 Q. B. {h) 10 B. & 0. 760, at p. 770. CONSTRUCTION OP THE CONTRACT AND CUSTOMS OF TRADE. 215 supposed usage at Lloyd's ; the usage in a particular place, or of a Sect. 185. particular class of persons, cannot be binding on other persons, unless those other persons are acquainted with that usage and adopt it. Merchants residing in London, and effecting insurances there, may reasonably be supposed to be acquainted with that usage, and to act upon it. But there is nothing in the case to raise such a presumption against the present plaintiffs ; on the contrary, there is everything to rebut such a presumption." Again, in Grabay v. Lloyd («'), an action on a policy on horses effected at Lloyd's coffee-house in London, a usage at that place was set up to give a peculiar meaning to the warranty " free of jettison and mortality " ; but the Court held that it did not bind the plaintiffs. For " it was not found to be the general usage of the whole trade in the City of London, but only in one house where policies were usually effected by private individuals. If there had been any evidence to show that the plaintiffs we're in the habit of effecting policies at Lloyd's coffee-house, the jury ought to have found that they had knowledge of the usage which prevailed there." In Hathesing v. Laing (k), Bacon, V.-C, refused to allow that a shipowner was bound by a local custom of merchants at Bombay ; according to which the mate's receipts for goods shipped were negotiable in the market, and entitled the holder to have the bills of lading for the goods. 186. That a custom of trade may have the effect of annexing a -A- custom annexing a qualifying or independent term to a contract it must be definite, term must be and uniformly adopted. There must be no uncertainty as to what ■,Z^tnr^^^ it is; and it must have been followed, in that shape, and as a adopted, regular thing, in transactions of that particular kind, by all persons habitually engaged in that trade, or branch of the trade. For if the custom is not definite it is not possible to say with certainty what the term is, which is to be incorporated in the contract (/). And if it has not been uniformly adopted, it cannot confidently be presumed that it was adopted on the particular occasion (m). (i) 3 B. & C. 793. would be indefinite ; so would be a (A) L. E., 17 Bq. 92 ; mfra, s. 197. custom that the ship shall have some (1) See Sewell v. Crop, 1 C. & P. 392. measurement goods as part of her cargo, 'Ecu example, a custom to deduct dis- with nothing to define what amount. count from freight, where the rate of {m) ' ' It must be uniform as weU as discount has varied with different people, reasonable ; and it must have quite as 216 THE CONTRACT. Sect. 186. That is to say, the adoption of the custom must be uniform whenever there has heen nothing expressly agreed upon the point. Instances in which the custom has been expressly varied, or excluded, will rather tend to prove the general adoption of it. Otherwise 187. It must be noted, however, that this rule relates to cases in where some ,.,, ■,,,■,■ i ■, i j_ • implied term which the matter sought to be imported by custom is one as to IS reqmre . -^j^q]^ there is no need to make a presumption one way or the other. If in any ease it is necessary that some term should be implied, and if there is no rule of law which decides what that term should be, a different principle may apply. It then becomes needful to ascer- tain the prohabk intention of the parties ; and if there has been a usual practice, or course of business, which they may be presumed to have known, and with reference to which it is reasonable to suppose that they contracted, that becomes material to show their intention, although it may not be a definite or uniform practice (m). We may take as an illustration the case of Walker v. Jackson (o), where the question was whether a ferry company undertook to land, as well as carry, a carriage which was delivered to them. It was held that the mere circumstance that they were ferrymen did not give rise to such an obligation, as a matter of law ; but that a contract to undertake that duty might be inferred from a practice on their part to land carriages put on board their boats ; and that the question must be determined by the jury, having regard to evidence of that usage. Again, in Dickenson v. Lano (jo), an action for freight and demurrage against the manager of the quarry by whom a quantity of stone had been shipped, where the defence was that this had been done for the purchaser of the stone, evidence was admitted by Blackburn, J., that, according to usage, quarry masters who had thus shipped stone had nothing to do with it after the shipment, and that the consignees always paid the freight. It was left to the jury to say with whom the contract was. Where, however, there is no necessity to import the term which it is proposed to incorporate by the custom, or some other term instead of that ; or where, if there is such a need, the law itself supplies it ; then the custom cannot add a term to the contract, or much certainty as the written contract (o) 10 M. & W. 161. See also Watts itself." Per Jessel, M. E., in Nelson v. '"■ Grrant, 26 So. L. R. 660, as to how Dahl, 12 Ch. D. S68, p. 576. *^^ expense of weighing cargo should by custom he borne, cited infra, s. 682. («) Cf. supra, ss. 167, 181, {p) 2 F. & F. 188. CONSTRUCTION OP THE CONTEACT AND CUSTOMS OF TRADE. 217 override the rule whidi the law lays down, unless it must be Sect. 187. supposed to have formed part of the contract ; and that can only he when the custom is definite and uniform. 188. Further, the custom must be one which has so frequently Cuatom -wiR not generally been acted upon as to be notorious. It is not uncommon for a determine an supposed custom to be set up relating to a matter which so rarely question. arises in the course of business that it is difficult to see how the notoriety and general adoption, which are the grounds for presuming that it formed part of the contract, can be said to have existed. Rules adopted by business men with regard to accidental questions which arise only occasionally, e.g., upon a bankruptcy, may perhaps be more properly regarded as the result of their view of what the law is, or ought to be, than as based upon a custom which they have agreed to adopt as part of their contracts. GreneraUy no agreement or need of agreement on such points is thought of by the parties at the time of contracting, but when a difficulty arises which is similar to others that have occurred in the trade, and have been settled in some particular way, the expectation is that it also will be settled in that way. Eules of law cannot, however, be put on one side except by agreement. If it has been agreed that they are not to operate, that may be effectual ; otherwise they must prevail. If a settled rule exists, the opinions or understanding of business men as to what it is, or should be, are not even relevant, and still less are they binding {q). 189. A custom will not be imported into a contract if it appears A custom to the Court to be unjust or unreasonable, unless the party against reasonable, whom it is set up was aware of it, and can be considered to have assented to it. " When considerable numbers of men of business carry on one side of a particular business, they are apt to set up a custom which acts very much in favour of their side of the business. So long as they do not infringe some fundamental principle of right and wrong, they may establish such a custom ; but if, on dispute before a legal forum, it is found that they are endeavouring to enforce some rule of conduct which is so entirely in favour of their side that it is fundamentally unjust to the other side, the Courts have always -determined that such a custom, if sought to be enforced (y) Edie V. East India Co., 2 Burr. 1226. See infra, a. 193. 218 THE CONTEACT. Sect. 189. against a person in fact ignorant of it, is unreasonable, contrary to law, and void" (r). For example, it was held, in a series of cases, that a custom among underwriters and insurance brokers at Lloyd's, that a claim on a poHoy, made through a broker, should be settled by being set off against any premiums due from him to the under- writer, could not bind the principal in the transaction, unless he had been aware of it (s). In Todd V. Eeid the Court said : " No usage can sanction such a practice as that which is stated to have prevailed in this par- ticular business. This is, in fact, an attempt to pay the debt of one person with the money of another." In Scott V. Irving, Lord Tenterden said : " If the usage relied upon in this case were allowed to prevail, it would have the effect of making the broker, and not the underwriter, the debtor to the assured for the loss. Such a usage, however, can be binding only on those who are acquainted with it, and have consented to be bound by it. There may possibly be cases proved, where an assured, being cognisant of such usage, may be supposed to have assented to it, and therefore may be bound. Here no such assent is shown, nor can it be inferred from the delay which has taken place in the prosecution of this claim " (t). Illustrations. 190. The following are other illustrations :— In Eobinson v. MoUett (m), the question was whether it was competent to a broker, employed to buy tallow on the London tallow market, to set up a custom of that market for brokers themselves to supply their principals out of tallow purchased on their own account. The Common Pleas and Exchequer Chamber were each equally divided on the point. But in the House of Lords it was held unanimously that a custom which so entirely altered the intrinsic character of the employment could not bind a principal who was ignorant of it. Lord Chelmsford said : " The usage is of such a peculiar character, and is so completely at variance with the relation between the parties, converting a broker employed to buy into a principal selling for himself, and thereby giving him an interest wholly {r) Per Brett, J., in Eobinaon v. Sweeting v. Pearoe, 30 L. J., 0. P. 109. MoUett, L. E., 7 H. L. p. 818. Of. Stewart v. Aberdein, 4 M. &W. 211. (s) Todd V. Reid, 4 B. & A. 210 Scott V. IrvLQg, 1 B. & Ad. 605 Bartlett v. Peutland, 10 B. & 0. 760 («) 1 B. & Ad. at p. 612. (««) L. E., 7 H. L. 802 ; reversing L. E., 7 0. P. 84 ; L. E., 5 0. P. 646. CONSTRTTCTION OF THE CONTRACT AND CUSTOMS OF TRADE. 219 opposed to his duty, that I think no person who is ignorant of such Sect. 190. an usage can be held to have agreed to submit to its conditions, merely by employing the services of a broker, to whom the usage is known, to perform the ordinary and accustomed duties belonging to such employment" («). In Leuckhart v. Cooper (y), the defendants resisted a claim to goods of the plaintiff, which had been warehoused with them by his factor, on the ground of a custom in the City of London for warehousemen to have a general lien upon all goods remaining in their warehouses, for and in the name of the persons by whom they were retained or employed, for all moneys due from those persons in respect of certain kinds of advances and expenses, and claimed a general lien for moneys due to them from the factor. It was held that this custom was not valid as against the plaintiff, for it extended the lien to all goods delivered to the warehouse keeper, whether they were the property of the person who employed him or not, and was, therefore, unreasonable and unjust. In Gibson ». Crick (s), an attempt was made to set up a custom among shipbrokers, that if a broker merely introduces to a ship- owner another broker with whom he subsequently does business, the first broker is entitled to a commission from the shipowner. But the Court held that such a custom would be unreasonable, and that evidence of it ought not to be permitted. 191. Again, a custom not confined locally, or to one section of a _a^ general trade, but prevailing universally throughout it, cannot be set up if ^"^*°™ 9?"' it conflicts with a rule of law or is inconsistent with any settled "ot valid, legal principle. Thus, customs with regard to the negotiability of bills of exchange and promissory notes, which were contrary to settled rules of law, were treated as invalid (a). So it was held that a custom of carriers to exercise a general lien for moneys due from the owners of goods carried by them did (a;) L. R., 7 H. L. at p. 838. Of. W 31 I'- J-, Ex. 304. Cf. Allan v. Cropper v. Cook, L. R., 3 0. P. 194; Sundius, 31 L. J., Ex. 307. GrisseU v. Bristowe, L. R., 3 0. P. 112 ; {») Edie y. East India Co., 2 Burr. L. R., 4 C. P. 36 ; Seymour v. Bridge, 1226 ; Partridge v. Bank of England, 14 Q. B. D. 460 ; Perry v. Bamett, 14 15 L- J-, Q- B. 395; Hawkins v. Cardy, Q. B. D. 467. Carthew, 466 ; 1 Salk. 65. And as to the liability of an indorser : Suse v. iy) 3 Bing. N. e. 99. Pompe, 30 L. J., 0. P. 75. 220 THE CONTRACT. Sect. 191. not defeat the right of an unpaid vendor to sto'p the goods, while they were in the carrier's hands, in transit (b). In Meyer v. Dresser (c), an attempt was made to deduct the value of goods not delivered from the freight, under a custom of merchants to do so, said to be universal in every trade. This was not allowed. Erie, C. J., said : " According to my view of the law, such a right to deduct does not exist. It is, therefore, to my mind, a self-evident contradiction to say that the law does not give the right, and yet that there is a universally-estahliehed usage (which, if so universally established, would be the law) to allow it. A universal usage cannot be set up against the law " (d). In Atwood V. Sellar (e), it appeared that it had for seventy or eighty years past been the practice of British average adjusters to treat certain port of refuge expenses as particular average, which the Courts then held ought by law to be treated as general average. It was contended that the practice of the adjusters, which had, in effect, been acquiesced in and adopted by merchants, shipowners, and underwriters, ought to be followed. But the Court of Appeal, confirming the majority of the Queen's Bench, declined to do so. " When a practice of this kind is brought to the test of legal decision, and is found to be erroneous and inconsistent with law, it cannot be permitted to override the law and acquire the force of law " (/). Wlereno 192, But a general custom, prevailing throughout a trade, may exists. be valid if it deals with a matter on which the law has no settled rule, and in a manner consistent with legal principles ; and after repeated proof of it in Courts of Justice, it may be judicially recognized without further proof (g). StiU, until such a right has become part of the general law, it can only be maintained, if challenged, by proof of accepted usage. It was at one time held to be a settled point that a wharfinger had (i) Oppenheim -f. Bussell, 3 B. & P. new for old In insurance claims : Poing- 42. Cf. Leuokhart «/. Cooper, 3 Bing. destre v. Royal Exchange Corp., Ry. & N. C. 99. M. 378 ; infra, s. 423. As to deolara- (c) 33 L. J., C. P. 289. tio»s under open policies : Stephens u. W Ibid., p. 293. Australasian Ins. Co., L. R., 8 0. P. 18. (, 4 a. B. B. 342 ; 5 a B. B. 286. T^t.iirt^L'':i:^:r^o{. {/) Per Cookbum, C. J., 4 Q. B. D. & p. 737. Packer's general Uen : In re at p. 364. -V^itt, Ex parte Sliubrook, 2 Ch. D. 489 ; (y) Eor example, as to deductions of Ex parte Deeze, 1 Atk. 228. COKSTEUCTION OF THE CONTRACT AND CUSTOMS OP TRADE, 221 a lien upon goods in his hands for the balance of a general account Sect. 192. due from the owner (h). But in Holderness v. CoUinson (»'), it was shown that this rule had not been acquiesced in at Hull, as regarded the claims of wharfingers to retain the goods for balances other than in respect of wharfage; and the Court held that the wharfinger must make out his right to the general lien, and that he had failed to do so {k). 193. In former times, when the Courts were less familiar with Former prac- mercantile questions than they have since become, and when on opinions of many matters no definite legal principles had been laid down, ^^™^^^™^"- a practice prevailed of taking the opinions of business men as to the rules which ought to govern the particular case before the Court. This was done, sometimes, by consultation with mer- chants {I), and sometimes by hearing their opinions, even though unsupported by instances, given as witnesses (w) ; and, generally, the opinion of the jury of business men was taken on the whole matter («). That practice has now fallen into disuse. Settled principles, which have been to a great extent founded upon usages and opinions of mercantile men, have become part of the law ; and the endeavour of the Courts now mainly is to preserve the principles thus established, and to develop them in a consistent manner, as the new circumstances of commerce require (o). {h) Naylor v. Mangles, 1 Esp. 109 ; of law all the evidence in mercantile Spears*. Hartley, 3 Esp. 81. oases was thrown together; they were (i) 7 B. & 0. 212. left generally to the jury, and they pro- {h) Where wharfingers act under duced no established principle. From statutory powers, see Dresser v. Bosan- that time we all know the great study quet, 32 L. J., Q. B. S7, 374. has heen to find some certain general (T) See Eruger v. Wilcox, Ambler, principles, which shall be known to aU 252 ; Vallejo ». Wheeler, 1 Cowp. 143 ; mankind, not only to rule the particular Lewis ». Rucker, 2 Burr. 1167. In case then under consideration, but to Pickering v. Barkley (2 RoU. Abr. 248, serve as a guide for the future. Most pi. 10), merchants were consulted on a of us have heard these principles stated, demurrer. reasoned upon, enlarged, and explained, (m) Camden v. Cowley, 1 W. Bl. 417 ; till we have been lost in admiration at and per Lord Haidwioke, Baker v. the strength and stretch of the human Paine, 1 Ves. 456. understanding. And I should be very («) In Lickbarrow v. Mason (2 T. R. sorry to find myself under a necessity of 63, at fp. 73), Buller, J., said: "We differing from any case on this subject find in Snee ». Presoot that Lord Hard- which has been decided by Lord Mans- wioke himself was proceeding with great field, who maybe truly said to be the caution, not establishing any general foxmder of the commercial law of this principle, bat decreeing on aU the cir- country." oumstanoes of the case put together. (o) See Smith's Merc. Law, Introd. ; Before that period we find that in Courts Lowndes.' Mar. Ins., Introd. 222 THE CONTEACT. Sect. 194. Need of in- fonuatioii on new matters ; e.g., nego- tiable instru- ments. The custom must relate to the subject of the contract. 194. But still, new subject-matters are from time to time in- troduced, -which, must be dealt with by the law ; and it becomes necessary that the Court should be informed how those matters are regarded and dealt with by business men in order to give the right effect to transactions respecting them. This is well marked with regard to negotiable instruments. The requirements of commerce have from time to time given rise to the need of new kinds of documents by which rights to money or to goods might be represented, and by which those rights might be transferred to others. New classes of negotiable instruments have thus come into use ; and have been recognized by the Courts as having those characters and effects which evi- dence has shown them to have acquired among business people. It was thus, for example, that the negotiability of a bill of lading as an instrument which represents the goods was determined, on the second trial of Lickbarrow v. Mason (jj). 195. That a custom may be incorporated into a contract it must relate to the subject-matter of that contract. In Phillips V. Briard {q), a charter party provided that the ship, which was chartered for a voyage outwards only, should be consigned at the port of discharge to the charterer's agents, " free of commission on this charter." It was sought to add, by custom, a term that the charterer's agents should be entitled to procure a charter or cargo for the ship outwards from that port ; or should be en- titled to the usual broker's commission on freight if a charter or cargo were obtaiaed through others, without any default by them. The Court refused to allow this. Pollock, C. B., said : " Here an attempt is made, not to explain the contract or to add an incident to it by custom, but to make a {^) 5 T. E. 683. See, as to bills of exchange and promissory notes, the judgment delivered by Cookburn, C. J., in Goodwin v. Eobarts, L. E., 10 Ex. 337. As to bank notes, Miller v. Eace, 1 Burr. 452 ; 1 Sm. L. C. 6th ed. 468. Foreign bonds, Grorgier v. MieviUe, 3 B. & C. 45 ; Simmons v. London Joint Stock Bank, (1891) 1 Ch. 270. Scrip for foreign bonds, Goodwin 'O. Eobarts, L. E., 10 Ex. 76, 337 ; 1 A. 0. 476. Scrip certificates for shares, Eumball v. Metropolitan Bank, 2 Q. B. D. 194 ; Williams v. Colonial Bank, 36 Ch. D. 659. Iron warrants, Merchant Banking Co. of London v. Phoenix Bessemer Steel Co. , 6 Ch. D. 205. Compare, as to dividend warrants, Partridge v. Bank of England, 15 L. J., Q. B. 395 ; deben- tures. Crouch V. Credit Ponoier of Eng- land, L. E., 8 Q. B. 374 ; Bechuanaland Exploration Co. 41. London Trading Bank, (1898) 2 Q. B. 658 ; wharfingers' certificates! Gunn v. Bolckow, L. E., 10 Ch. 491 ; bonds negotiable abroad, Picker v. London and County Banking Co., 18 Q. B. D. 515. (?) 25 L. J., Ex. 233. CONSTRUCTION OF THE CONTRACT AND CUSTOMS OF TRADE. 223 party who has entered into one contract enter into a second, which Sect. 195. imposes on him an ohhgation of paying the agent commission on the return voyage. If that view is to be adopted, where are the Courts to stop ? If the agent is to be held entitled to payment on the back voyage, why may he not also be entitled to payment, on the voyage after that ? There is no authority showing that you may explain an instrument by parol evidence in. the manner that we are here required to do. In fact, this is not an attempt to explaiu a contract by inserting what is incidental to it, but it is an endeavour to introduce another contract, and to contend that the defendant agreed to do another thing than that which he con- tracted to do" (r). So, in Cockburn «. Alexander (s), a charterer was not permitted to show that by the custom of the port of loading the cost of pressing wool, before shipment, should be paid by the shipowner, the charter party being silent on the point. * 196. And the custom must be consistent with the expressed con- it must be tract. If it be inconsistent with any agreed term, the parties must ^^^ the be considered to have excluded it. " You may translate the words contract. of a contract ; you cannot vary or alter it" (t). It is, however, often difficult to apply this rule ; and the inclination of the Courts appears to have been to give effect to a custom unless it is unmis- takably in conflict with the contract. The following cases will illustrate the matter : — In Hutchinson v. Tatham (u), a charter party had been entered into by the defendants " as agents to merchants," and they in fact made the contract for a principal ; but they did not disclose his name within a reasonable time, and were themselves sued upon the charter party, on the ground of a trade usage that if the principal's name was not disclosed within a reasonable time after signing the charter party the broker became personally liable on it. It was held that this was not inconsistent with the contract («) ; though a custom that the defendants should be liable as principals under all circumstances would have contradicted it, and been inadmissible (y). (r) 25 L. J., Ex. at p. 230. («) L. R., 8 0. P. *82. , . ,„ T T r P 74. ^^^ ^^^ ^^® Humfrey v. Dale, 27 L. W ^^ ^- '' ■' ^- ^- '*• J., Q. B. 390 ; Fleet v. Murton, L. E., (if) Per Lord Halsbury in Tancred v. 7 Q. B. 126. Steel Co. of Scotland, 15 A. C. 125, (y) Per Brett, J., L. R., 8 C. P. at p. 137. Of. Royal Exchange Shipping p. 487- Of. Vikev. Ongley, 18 Q. B. D. Co. V. Dixon, 12 A. 0. 11. 708. 224 THE CONTRACT. Sect. 196. And where the contract contained an artitration clause making the broker an arbitrator in case of dispute, it was held that a custom to treat the broker as the principal was inconsistent with that clause, and could not be introduced (s). In Brown v. Byrne («), it was held that a custom at Liverpool, the port of discharge, to deduct three months' discount from the freight payable under bills of lading on goods coming from eertaia ports, was not inconsistent with a bill of lading which required freight to be paid on delivery, at a certain rate. " The consignee undertakes to pay freight on delivery after that rate, the shipowner undertakes to allow three months' discount on freight paid after that rate ; the latter contract is dependent on the former, but is not repugnant to it. If the bill of lading had expressed, or if from the language of it the intention of the parties could have _ been col- lected, that the freight at the specified rate should be paid free from all deductions, tsustomary or otherwise, then it would have been repugnant to it to set up the usage " (h) . In Hayton v. Irwin (c), a ship ordered to Hamburg to discharge got to Stade, which was the nearest point to which she could get with her full cargo, and was ready to deliver there. But the charterer refused to take delivery of any part of the cargo at that place, and alleged that by a custom of the port of Hamburg he was not bound to take delivery at Stade, or elsewhere than at the port of Hamburg. It was held, on demurrer, that the custom was inconsistent with the terms of the charter party, by which the vessel was to go to the port of discharge, " or so near thereto as she can safely get, and deliver, &c." and that it was therefore excluded. But a custom for the ship to discharge partly at one place, and then, after being lightened, to proceed to another place in the port, would not be inconsistent with the clause in the charter party above mentioned (flf). And where the custom set up was that the time occupied in thus moving from one part of the port to the other should not be counted as lay days, it was held that that was not inconsistent with a provision that the discharge was to be done in a certain number of " running days " (e). («) Barrow v. Dyster, 13 Q. B. D. 638. judgment, 23L. J., Q. B. p. 316. (a) 23 L. J., Q. B. 313. And see (o) 6 C. P. D. 130. Falkner v. Earle, 32 L. J., Q. B. 124, (i) Nielsen v. Wait, 14 Q. B. D. 516 ; on the same point. 16 Q. B. D. 67. (i) Per Coleridge, J., delivering the («) Ibid. See infra, s. 628. CONSTEUCTION OF THE CONTRACT AND CUSTOMS OF TEADE. 225 The following are illustrations from policies of insurance : — Sect. 196. In Blackett v. Eoyal Exchange Ass. Co. (/), it was held that evidence could not be given of a usage that hoats slung upon the outside of the ship, on the quarter, were not protected by a policy on the ship, " boat," &o., in the ordinary form. In Hall V. Janson (g), an action was brought on a policy upon money advanced on account of freight, which contained. the memo- randum that freight was " warranted free from average under 5^. per cent. Tinless general, &c." It was held that an alleged custom, that insurers of money advanced on account of freight were not liable to make good any part of a general average loss or contribu- tion, was not consistent with the words of the policy. In Dickenson v. Jardine (h), a custom that underwriters were not Kable for a general average loss of cargo by jettison, beyond the owner's share of the average, was held to be iuconsistent with a policy which expressly covered loss by jettison. On the other hand, in Miller v. Titherington (i), it was held that a custom among shipowners and underwriters in the timber trade from British North America, that underwriters of policies on ships, in the ordinary form, should not pay towards any general average contribution payable by the shipowner on account of the jettison of timber stowed on deck, was not inconsistent with the words of the policy. The custom there limited the liability of the under- writer for general average only in regard to a part of the cargo, and left the liability as to the remaiader standing. 197. Where a custom is local only, some difficulty may arise in Effect of importing it into a contract which has been made in one place and °°^ "^ °™^' is to be performed in another, or which, having been made with one person, has been transferred by him to another elsewhere ; and these are ordinary characteristics of the contracts with which we have to deal. As the ground upon which a custom may add a term to a contract is that the parties are presumed to have known of it, and to have tacitly adopted it, it seems clear that no custom can qualify or add to the contract unless it was well known and habitually followed by persons engaged in that trade at the place where the contract was made. The same remark applies to the meanings of words used in the (/) 2 C. & J. 244. W li. E., 3 C. P. 639. (i) 30 L. J., Ex. 217; 31 L. J., Ex. iff) 24 L. J., Q. B, 97. 363. C. C. Q 226 THE CONTEACT. Sect. 197. contract. If it is sought to give them a peculiar oustomary sense, that must have been the one customarily adopted in that connection at the place where the original contract was made. Thus, in Holman v. Peruvian Nitrate Co. (k), it was held that the words " working days," in a charter party made in London, could not be interpreted by reference to a local usage at Iquique, the loading port, not to count surf-days as working days. " Where a custom is purely local, it cannot be taken to control or explain the words of a written instrument unless it was known to the parties " {f). Whenrecog- But where a custom, or customary meaning of words, is throTigliout habitually observed by those engaged in a branch of the carrying ® ^^ ®' trade, it may be presumed that it is adopted by shipowners and merchants who go into that trade. This was the case in Bottomley V. Forbes (w), and Buckle t). Knoop (w), where the usage relied on was one generally recognized in the trade of bringing cotton from Bombay to London. In the latter case Kelly, C. B., said (o) : " The contract was entered into, as I understand, in London, through London brokers, and between mercantile men in London and Liverpool, and the subject-matter of it relates to things and circumstances existing in and having relation to Bombay, London and Liverpool. I am of opinion that evidence of usage is admissible to show any customary interpretation put in Bombay, London and Liverpool on a contract that is constantly, perhaps daily, entered into by Bombay and London and Liverpool merchants. It was said by Mr. James that there, was no evidence here that any of the parties to the contract had ever heard of the custom. I think the jury may presume, and the jury were bound to presume, that any one who enters into a contract of a nature commonly and frequently entered into amongst persons dealing in a particular commodity, or engaged in a particular trade to which that contract relates, knows, as he is bound to know, of every usage bearing upon the interpretation of a contract of such a nature. I think, therefore, as the evidence shows that it was customary among London and Liverpool merchants trading and freighting ships to and importing goods from Bombay to put this interpretation upon a contract of this nature, it was admissible; and, the jury having found on it in (A) 5 Sess. Ca. (4th ser.) 667. 53 Fed. Eep. 394. . (!) Per Lord President (Inglis), ibid. (»») 5 Bing. N. C. 121. at p. 671. Cf . Hick i>. Tweedy, 63 L. («) L. E., 2 Ex. 125 ; 36 L. J., Ex. 49. T. 765, per Charles, J. ; Gill v. Browne, (o) 36 L. J., Ex. 49, at p. 63. CONSTRUCTION OF THE CONTRACT AND CUSTOMS OF TRADE. 227 favour of the interpretation contended for on the part of the Sect. 197. plaintiff, that such is the interpretation which we must likewise put upon this contract, although the evidence of usage is merely con- firmatory of the construction which I should without it have been disposed to put on the words used " {p). 198. Also, where a contract made in one place relates to some- As to matters thing to be done elsewhere, it may well be implied that it is made formed^'^' on the understanding that things are to be done in a reasonable ^°°^^J- waj, having regard to the practices of that other place, although they may not be known to the parties. That is the case, as we have seen, with regard to the manner of packing goods for ship- ment {q). So, also, with regard to the way in which they should be delivered at the port of discharge (r). Though it does not seem to be settled how far a custom of the loading or discharging port may impose an unusual burden upon the shipowner of which he was ignorant when he made the contract. 199. In Norden Steamship Co. v. Dempsey (s), -the Court Borden appears to have gone further than the limits above suggested, v. Dempsey. The charter party there was made at Riga, between a merchant of that place and the owners of the foreign steamship "Pamona." She was to carry a cargo of sleepers "from Miihlgraben to Liverpool ;" " discharging dock to be ordered on arrival of steamer at Liverpool." The sleepers were shipped by the charterer in two parcels, under bills of lading which made them deliverable to order or assigns. One of the parcels was consigned direct to the defendant, a tinjber merchant at Liverpool, and he was also assignee of the other bill of lading. The "Pamona" on her arrival at Liverpool was ordered to the Canada Dock, one of the two usual docks for timber ships, and she got in there on September 13th ; but, owing to the crowded state of the dock, she did not get to the quay, where, by the regulations, the discharging must take place, until the 17th ; and the question was whether the lay days began to run on the 13th or not. The defendant sought to show that there was a custom at Liverpool that, in the case of timber ships, the lay days commenced only from the mooring of (p) Cf. Brown V. Byrne, 23 L. J., 273; Cuthbert v. Oummmg, 24 L. J., Q. B. 313 ; Hathesing v. Laing, L. E., Ex. 198, 310. J- -g gg (f) Marzetti v. Smith, 49 L. T. 580. See infra, ss. 461, 462. fe) Benson v. Schneider, 7 Taun. (s) 1 C. P. D. 654 ; 45 L. J., 0. P. 764. q2 228 THE CONTRACT. Sect. 199. the vessel at the quay ; and for that purpose his counsel asked one of his witnesses, " Is there any custom in 'the port of Liverpool, with regard to ships in the timher trade, as to when they are deemed to have arrived at their usual place of discharge ? " • The question was objected to, and was not allowed by Lush, J., who tried the case, on the ground that the supposed custom was too limited, being confined to a particular trade and to vessels bringing a particular description of cargo. The Court, however, after consideration, held that the question ought to have been allowed, and ordered a new trial. Lord Coleridge, C, J., said : " Principle and authority have alike decided that where the question is what particular part of an extensive port a vessel must have reached before she can be said to have arrived at her destination, evidence may be given as to the usage of the port in that respect. Such evidence has been allowed by judges, and the propriety of receiving it has, upon many occasions, been recognized by the Courts, upon the ground that it is not offered for the purpose of contradicting, but merely to explain the contract." Brett, J., said : "As to the first point, whether the proposed question would add to or vary the terms of the charter party, if that was the effect of it I think it was inadmissible. This charter party was made at Eiga. To attempt to vary it by showing a custom of the port of Liverpool, evidence of which would be admissible only upon the supposition that it was known to both parties to the contract, could not be allowed. I do not accede to the proposition that there is any distinction in this respect where one of the parties to the contract is a foreigner (t) ; but I do not think the proposed question has the effect of varying the terms of this charter party. The contract is to carry the cargo to Liverpool, a certain number of days being allowed for loading the ship at the port of loading, and for unloading her at the place of discharge. Here, Liverpool is the place of discharge. The question, therefore, is, what is the meaning of ' Liverpool ' ? It is not contended that the vessel arrived at Liverpool the moment she entered the Mersey, but only when she entered a Liverpool dock — when she (t) The report ia the Law Journal is t^® place wtere tlie contract was made, fuller. The learned judge added :— ^^^ therefore it cannot be assumed that "And I think that it cannot be ad- ^* ^'^^ ^^ ^^^ °°''*'^<'* ^^' "^^^ *^« parties to the contract knew of that mitted, because it is not the custom of custom" : 45 L. J., C. P. at p. 769. CONSTRUCTION OF THE CONTRACT AND CUSTOMS OF TRADE. 229 arrived at a place where, according to the custom of the port, she Sect. 199. was considered as an arrived ship. It Is then only that the lay days are to commence." Still, it seems to have been held that the special custom of the timber trade at Liverpool might be binding upon foreign shipowners, though the charter was made abroad with a foreign charterer, and though presumably both parties were ignorant of the custom. Eor the custom was alleged to be one at the port, not in the trade generally ; and no attempt was made to show that the charterer and the shipowners were aware of it. The question involved was not one as to how the contract should be reasonably performed, but as to whether the ordinary right of the shipowner could be altered by a custom to postpone the com- mencement of the lay days froni the time when they would other- vrise have begun to run. For what was sought was to give a special meaning to the word "Liverpool." The defendant did not endeavour to show the effect of that word in charter parties generally, but to give it a meaning peculiar to the timber trade of that port, which confessedly was not the meaning generally attri- buted to it («<). It seems clear that a reasonable interpretation must be given to a wide expression such as " Liverpool " ; and that what that should be must be determined by reference to the local circumstances (x) . But it is difficult to understand how a special exemption in favour of a particular trade can be properly imported into the meaning, unless the parties can be presumed to have so agreed. 200. Further, though a custom may exist at the place at which As against a biU of lading is made, and so form part of the contract between till of ladino-. the actual parties to it, it does not perhaps follow that the custom will affect the rights of one who takes over the goods and the con- tract without knowledge of the custom. In Kirchner v. Venus («/), the question was whether a shipowner could claim a Hen on goods shipped at Liverpool for Sydney, for freight which was by the bill of lading made payable in England, (m) In the Law Journal, however not to charge demurrage until the ship (p. 770), Brett, J., is reported to have is at quay berth." Upon the second said that, "if a sljip is considered at trial the defendant failed to prove the Liverpool to be an ' arrived ' ship, you existence of the alleged custom, cannot alter the rights of the shipowner, (») See Brereton v. Chapman, 7 Bing. upon a contract made at Riga, by show- 569. ing that at Liverpool there is a custom (y) Vi Mo. P. C. 361, 230 THE CONTRACT. Sect. 200. in advance : the freight not having, in fact, been paid. The ship- owner set up a custom, said to obtain at Liverpool, that shipowners should not lose their Hen for freight, although it were made payable in England and the goods were deliverable abroad. But the Privy Council held that such a custom at Liverpool could not affect the rights of the indorsees of the bill of lading, who lived at Sydney. That question arose prior to the Bills of Lading Act, 1855. The bill of lading contract did not therefore pass to the indorsees, so that possibly the decision on the above point would not now apply (s). Whether terms which are not expressed ia a bill of lading can form part of the contract which arises, under that Act, between the shipowner and indorsee, does not appear to have been decided. (z) See infra, ss. 606, 663. 231 CHAPTER VII. EFFECT OF FOREIGN LAWS, SECT. Confliotof laws 201 Tlie law of the place of eontraoting 202 Displaced by a different intention — Place of performance 203 Master's authority determined by the law of the flag 204 Shipowner's liability determined by the law of the flag 205 So too the efiect of the contract generally 206 Meanings of terms used — Rules as to performance 207 Law of place of performance does not excuse non-performance . . , , 208 SECT. Law of place of delivery 209 Intention not to adopt the law of the flag 210 Master's authority to deal with cargo determined by the flag ... . 211 Through contracts 212 Validity of contract — Form 213 Illegality by English law 214 Contracts valid at the place of per- formance 215 lEegality by foreign law 216 Stipulations void by foreign law . . 217 201. It often happens that the parties to a bill of lading or charter Conflict of party are of different, nationalities, and that the places at which the contract is to be performed belong to states in which the rules of law differ from one another, and from those of the place where the contract was made. Hence it is not surprising that questions arise as to the law by which the effect of the contract, or the manner of performdng it, is to be governed or its validity is to be tested. Rather it may be wondered at that difficulties on these points do not more often occur. The decisions upon them are comparatively few, and they can scarcely be said to establish rules which may be applied with complete confidence. Certain rules and principles have, however, been laid down, and it is important to consider their effect. 202. The ordinary rule adopted in our Courts is that the law of The law of the place at which a contract was made determines its effect {a). oontraotLg. (a) P. & 0. Steam Nav. Co. v. Shand, 12 L. T. 808 ; Trimbey v. Vignier, 1 Ring. N. C. 151; Story, Conflict of Laws, ss. 242, 263. 232 THE CONTRACT. Sect. SOS. " It is generally agreed that the law of the place where the con- tract is made is prima facie that which the parties intended, or ought to he presumed to have adopted, as the footing upon which they dealt, and that such law ought, therefore, to prevail in the absence of circumstances indicating a different intention — as, for instance, that the contract is to he entirely performed elsewhere, or that the suhject-matter is immoveable property situate in another country, and so forth " (b). Displaced by a different intention. Place of performance. 203. But this ordinary prima facie rule is displaced where a clear intention of the parties to the contrary can be gathered from the contract itself, or from the nature of the transaction. Thus, it has been laid down that where a contract made in one place is to be performed entirely in another place, where the law is different, the presumption is, that the law of the place of performance is that which is to determine its effect (c) . " If a contract is made in our country to be carried out between the parties in another country, either in whole or in part, unless there appears something to the contrary, it is to be concluded that the parties must have intended that it should be carried out according to the law of that other country " [d). But neither is this presumption conclusive. In each ease the whole character and circumstances of the contract must be con- sidered, to ascertain the real or probable intention. Bowen, L. J., delivering the judgment of the Court of Appeal, in Jacobs v. CrMit Lyonnais (e), said: — "It is obvious, however, that the subject-matter of each contract must be looked at as well as the residence of the contracting parties or the place where the contract is made. The place of performance is necessarily, in many cases, the place where the obligations of the contract wiU have to be enforced, and hence, as well as for other reasons, has been introduced another canon of construction, to the effect that the law of the place of fulfilment of a contract determines its obligations. But this maxim, as well as the former, must of course give way to any inference that can legitimately be drawn from the character of the contract and the nature of the trans- («) Per ■Willes, J., Lloyd v. Oiiibert, L. E., 1 Q. B. 115, at p. 122. (c) Story, Conflict, h. 280 ; London Assurance v. Comp. de Moagens, 167 U.S. 149 (1897). {if) Per Lord Esher, Chatenay v. Brazilian, &c. Co., (1891) 1 Q. B. 79; and see per Lord Mansfield, Eobinson v. Bland, 2 Burr. 1077, p. 1078. («) 12 Q. B. D. 589. EFFECT OF FOREIGN LAWS. 233 action. In most cases, no doubt, where a contract has to he Sect. 803. wholly performed ahroad, the reasonable presumption may be that it is intended to be a foreign contract determined by foreign law ; but t]ns primA facie view is in its turn capable of being rebutted by the expressed or implied intention of the parties as deduced from other circumstances. Again, it may be that the contract is partly to be performed in one place and partly in another. In such a case the only certain guide is to be found in applying sound ideas of business convenience and sense to the language of the contract itself, with a view to discovering from it the true intention of the parties. Even in respect of any performance that is to take place abroad, the parties may still have desired that their liabilities and obligations shall be governed by English law ; or it may be that they have intended to incorporate the foreign law to regulate the method and manner of performance abroad without altering any of the incidents which may attach to the contract according to English law. Stereotyped rules laid down by juridical writers cannot, therefore, be accepted as infallible canons of interpretation in these days, when commercial transactions have altered in character and increased in complexity ; and there can be no hard- and-fast rule by which to construe the multiform commercial agreements with which in modern times we have to deal " (/). 204, With regard, however, to contracts for carrying goods by Master's sea, a more definite rule has been laid down. It was decided, detemdned with great authority, in Lloyd ». Guibert (g) that, in some J"/ ^® '^"^ °* respects at any rate, the law of the flag, or nationality, of the ship determines the effect of the contract. In that case the plaintiff was a British subject who had chartered a vessel at St. Thomas, a Danish "West India island, for a voyage from St. Marc, in Hayti, to Havre, London or Liverpool, at charterer's option. The vessel ■ belonged to French subjects, domiciled and trading in France; and the chai-ter party described her as French. The master chartered her under his general authority. A cargo was shipped by the plaintiff at St. Mare for Liverpool, and the vessel sailed with it ; but she was damaged in a storm, and put into Fayal, a Portuguese port ; and in order to repair, the master borrowed (/) 12 Q. B. D. at p. 601. See also dispute under the contract was held to Hamlyu & Co. v. Talisker Distillery, show an intention to apply English law. (1894) A. 0. 202, where a clause pro- {g) 32 L. J., Q. B. 241 ; L, Tl., 1 viding for an English arbitration of any Q. B. 115. 234 THE CONTRACT. Sect. 204. money upon bottomry of the ship, freight and cargo. On arrival at Liverpool, the ship and freight were insufficient to satisfy this ^ charge, so that it partly fell upon the plaintiff as owner of the cargo ; and he claimed to he indemnified hy the shipowners. He would, it seemed, have been entitled to indemnity under either Danish, Portuguese or English law ; but under French law the shipowners, having given up ship and freight, were not further liable. The question, therefore, was, by what law should the matter be deternuned ? The judgment of the Queen's Bench in favour of the ship- owners was delivered by Blackburn, J., and turned upon the consideration that the authority of the master to make the charter party was limited by the law of his flag. " We think that, as far as regards the implied authority of the master of a ship to biad his owners personally, the flag of the ship is notice to all the world that the master's authority is that con- ferred by the law of that flag ; that his mandate is contained in the law of that country, with which those who deal with him must make themselves acquainted at their peril " (A). \ Shipowner's 205. Upon error being brought, this judgment was unanimously termined.by affirmed by the Exchequer Chamber. But there the broader the^.° ground was taken, that the law of the flag governed the ship- owner's liability under the contract, without considering whether it was made under a limited authority or not. Willes, J., delivering the judgment of the Court, said (?) : " The present question does not appear to have ever been decided in this country, and in America it has received opposite decisions equally entitled to respect (/). We must, therefore, deal with it as a new question, and endeavour to be guided in its solution by a steady appHeation of the general principle 'already stated, viz., that the rights of the parties to a contract are to be judged of by that law by which they intended, or rather by which they may justly be presumed, to have bound themselves. We must apply this test successively to the various laws which have been suggested as appHeable." And after pointing out that there was no general uniform rule of maritime law upon the subject, and discussing the applicability {h) 32 L. J., Q. B. p. 248. W See Arayo v. CurreU, 1 Louis. Eep. 528 ; Pope it. Nickeraon, 3 Story's (i) L. R., 1 Q. B. p. 123. Rep. 465. EFFECT OF FOREIGN LAWS. 235 of the laws of ^England and of Portugal, lie continued: "In Sect. 205. favour of the law of Denmark there is the cardinal fact that the contract was made within Danish territory, and, further, that the first act done towards performance was weighing anchor in a Danish port. For the law of France, on the other hand, many practical considerations may be suggested ; and first, the subject- matter of the contract, the employment of a sea-going vessel for a service, the greater and more onerous part of which was to be rendered upon the high seas, where for all purposes of jurisdiction, criminal or civil, with respect to all persons, things and transac- tions on board, she was, as it were, a floating island, over which France had as absolute, and for all purposes of peace as exclusive, a sovereignty as over her doniinions by land ; and which, even whilst in a foreign port, according to notions of jurisdiction adopted by this country (18 & 19 Vict. e. 91, s. 21 ; 24 & 25 Vict. c. 94, s. 9), and carried to a greater length abroad (Ortolan, Diplomatie de la Mer, c. xiii, the work of a French naval officer, but of which a jurist might well be proud), was never completely removed from French jurisdiction. " Further, it must be remembered that, although bills of lading are ordinarily given at the port of loading, charter parties are often made elsewhere ; and it seems strange and unlikely to have been within the contemplation of the parties that their rights or liabilities in respect of the identical voyage should vary — first, according as the vessel was taken up at the port of loading or not ; and secondly, if she was taken up elsewhere, according to the law of the place where the charter party was made, or even ratified. "If a Frenchman had chartered the Olivier upon the same terms as the plaintiff did, it would seem strange if he could appeal to Danish law against his own countryman because of the charter party being made or ratified in a Danish port, though for a service to be rendered elsewhere by a transient visitor, for the most part within French jurisdiction. Moreover, there are many ports which have few or no sea-going vessels of their own, and no fixed maritime jurisprudence, and which yet supply valuable cargoes to the ships of other countries. Take Alexandria, for instance, with her mixed population and her maritime commerce almost in the hands of strangers. Is every vessel that leaves Alexandria with grain under a charter party or bill of lading made there, and every passenger vessel leaving Alexandria or Suez, be she English, 236 THE CONTEACT. Sect. 205. Austrian or French, subject to Egyptian law ? As to not a few half- savage places in Africa and Asia, with neither sea-going ships nor maritime laws, a similar question — What is the law in such cases, or is there none, except that of the Court within whose jurisdiction the litigation first arose ? — arises. Again, it may be asked, does a ship which visits many ports in one voyage, whilst she undoubtedly retains the criminal law of her own coimtry, put on a new sort of civil liability at each new country she visits, in respect of cargo there taken on board ? An English steamer, for instance, starts from Southampton for Gibraltar, calling at Vigo, Lisbon and Cadiz. A Portuguese goiag in her from Southampton to Yigo would naturally expect to sail subject in all respects to English law, that being the law of the place and the ship. But if the locality of the contract is to govern throughout, an English- man going from Yigo to Lisbon on the same voyage would be under EngHsh law as to crimes, and all obligations not connected with the contract of carriage, but under Spanish law as to the contract of carriage ; and a Spaniard going from Lisbon to Cadiz during the same voyage would enjoy Portuguese law as to his carriage, and be subject to English law in other respects. The cases which we have thus put are not extreme nor exceptional ; on the contrary, they are such as would ordinarily give rise to the question. Which law is to prevail ? The inconvenience and even absurdities which would follow from the adopting the law of the place of contract, in preference to that of the vessel, are strong to prove that the latter ought to be resorted to. "No inconvenience comparable to that which would attend an opposite decision has been suggested. The ignorance of Erench law on the part of the charterer is no more than many Englishmen contracting in England with respect to English matters might plead as to their own law, in case of an unforeseen accident. Nor can we aUow any weight to the argument that this is an impolitic law, as tending to interfere with commerce, especially in making merchants cautious how they engage foreign vessels. That is a matter for the consideration of foreigners themselves, and nothing short of a violation of natural justice, or of our own laws, could justify us iQ holding a foreign law void because of being impolitic. No doubt the Erench law was intended to encourage shipping by limiting the liability of shipowners, and in this respect it goes somewhat further than our own, but whether wisely or not is EFFECT OP FOREIGN LAWS, 237 matter within the competence and for the consideration of the Sect. 205. French legislature, and upon which, sitting here, we ought to pronounce no opinion. " Exceptional cases, should they arise, must be dealt with upon their own merits. In laying down a rule of law, regard ought rather to be had to the majority of cases upon which doubt and litigation are more likely to arise ; and the general rule, that where the contract of affreightment does not provide otherwise, there, as between the parties to such contract, in respect of sea damage and its incidents, the law of the ship should govern, seems to be not only in accordance with the probable intention of the parties, but also most convenient to those engaged in commerce. In order to preclude all misapprehension, it may be well to add that a party who relies upon a right or an exemption by foreign law is bound to bring such law properly before the Court, and to establish it in proof ; otherwise the Court, not being entitled to notice such law ' without judicial proof, must proceed according to the law of England (see Brown v. Grracey, note to Lacon v. Higgins {k) )." 206. Lloyd i'. Gruibert establishes, that where the shipowner's Also the effect total liability is limited by the law of his own country, in which generally, he is domiciled, and under whose flag he sails his ship, that limita- tion is to be implied in contracts to carry goods in her. Whether the contract be made by the master, under a limited authority, or by the owner himself, the law of the flag determines his liability in point of total amount. The same reasoning establishes that the degree of responsibility, and the character of the obligations impliedly undertaken by the shipowner (with reference to which the contract is made so far as it does not expressly vary or exclude them), are also to be deter- mined by the law of the flag. Hence it follows that the effect of the expressed terms in limiting or altering those obligations must be determined by the same law. Also, that the same law must govern the rights of the shipowner against the charterer or shipper, and the obligations of the latter under the contract. For the contract is a whole, and must be read in the light of one and the same consistent set of rules. The exceptions must be read with the obligations, and the obligations on one side with those on the other, for which they are the considerations, and of which they are frequently conditions. {k) D. &B. N. P. 41,n. 238 THE CONTRACT. Sect. 206. The effect of the docTimeiit containing the contract, as a piece of evidence, follows a different rule, and will he determined hy the law of the forum. In Denholm v. Halmoe (J), the question was whether the statement of quantity of the cargo in the hill of lading was conclusive evidence of the quantity shipped, against the ship- owner. It was so by the law of the flag (Denmark), and also hy the law of Eussia, where the cargo was shipped. But it was held that the law of Scotland (the forum, and the place of delivery) must he applied. So that the statement in the bill of lading was not conclusive. Meanings of terms used. Rules as to performance. 207. The meanings of the terms used do not depend upon the application of a particular law, but upon the understanding of the parties ; and that is to be ascertained by reference to the trade and the circumstances in which they were used. So that the usages and laws of the place where the contract was made, or of the place of performance, may be important in this regard. Also, it is not inconsistent with the above propositions that a matter which is collateral to the contract, though it may affect the undertaking, should be determined by a different law. That is the case with regard to adjustments of general average losses, which are made according to the law of the place of adjustment, i.e., generally the place where the voyage terminates, although that may differ from the law of the flag {m). And though the law of the flag may determine the rights and liabihties of the parties under a charter party or bUl of lading, still, in considering how the provisions of the contract are to be carried out, it may be necessary to take other rules of law into account. Eules which must be conformed to at the places of performance— e.gr., customs regulations at the ports of loading and discharge — form part of the circumstances with regard to which the loading or delivery is to be done. The contract must be supposed to have had reference to them, unless it is expressly inconsistent ; and it will not be properly performed unless they have been regarded. " It seems impossible to exclude the law of England (the place of discharge), or even that of Hayti (the place of loading), from relevancy in respect of the manner of performing that portion of the service contracted for which was to be rendered in their respective territories; because the ship must needs. {I) 25 So. L. R. 112. (m) Siraonds v. White, 2 B. & 0. 805. EFFECT OF FOREIGN LAWS. 239 for the time teing, conform to the usages of the port where she Sect. S07. is"(w). 208. But the law of the place of performance is thus inoqrpo- Law of place rated only so far as it is consistent with the express language of anoe does not the contract, as interpreted by the law of the flag ; and only so far pgrfotaance as may be necessary for determining the manner of the perform- ance. It will not alter the character of the obligations which are imposed by the contract, or by the law which gOTcrns its effect. Thus, a charterer is not excused from loading a cargo because the law of the loading port prohibits his doing so, even though that law would also excuse him (o) ; nor is a shipowner discharged from liability for damage because no claim has been made at the time or in the manner required for doing so by the law at the port of discharge {p). 209. Sometimes, indeed, the place at which delivery is to be Law of place given has been held to indicate the law to be applied. In the Wilhelm Schmidt (q), the vessel was German, and was chartered at Constantinople by German subjects to carry a cargo to a port in the United Kingdom or the Continent, " calling at Cork, Falmouth, or Plymouth, for orders, which were to be given by return of post in reply to the master's letter to the charterer's agents in London." The charter party was in English. On arrival at Falmouth, orders were given to discharge at Ipswich. Sir E. Phillimore held that the intention was that the contract should be governed by English law. " When those orders are received and the destination is fixed, it does not seem to me irrational or unfair that the determination should be considered as if expressed in the original contract; and where the place of performance was fixed to be in England, the seat of the contract, to use the expression of foreign jurists, would be in that country, and the law of the country would be the law of the contract" (r). 210. The " law of the flag " rule is not, however, to be regarded Intention not as a fixed rule. It was based on " the probable intention of the la-s^oTthe ^ parties," and on convenience, and there can be no doubt that if ^^• («) Per ■Willes, J., Lloyd v. Guibert, {p) Moore v. Harris, 1 A. 0. 318. L. E., 1 Q. B. 115, at p. 126. Of. per (?) 25 L. T. 34. Of. Tlie Express, Bowen, L. J., Jacobs v. Credit Lyon- L. E., 3 A. & E. 697 ; The San Eoman, nais, 12 Q. B. D. 589, at p. 604. L. E., 3 A. & E. 683 ; The Patria, L. E., (o) Blight V. Page, 3 B. & P. 295, n. ; 3 A. & E. 436 ; Denholm v. Halmoe, 25 Kiikv. Gibbs, 26 L. J., Ex. 209 ; Jacobs So. L. E. 112. V. Credit Lyonnais, 12 Q. B. D. 689. {r) 25 L. T, at p. 38. 240 THE CONTRACT. Sect. 210. the parties expressly or inferentially show, in the contract, that they mean some other law to govern, that will be the law to apply. Thus in Ee Missouri S.S. Co. (s) the fact that the ship was British, and owned by a British company domiciled in England, was not regarded as conclusive that English law was intended; but as the form of the contract was English, and as it contained a clause which was valid by English law, but not valid by the law of the place where it was made, the conclusion that the parties meant to be governed by English law was considered irresistible (t). Again, in Chartered Mercantile Bank of India v. Netherlands India Steam Navigation Co. (u), a contract by bill of lading was held to be English, and to be construed with reference to English law, though the vessel carried the Dutch flag. The shipment was made by an Englishman, at Singapore, a British port, where English law prevails ; and the persons for whose benefit the ship was worked were English. They were, however, registered in Holland as a Dutch company, and the ship was registered in Holland and carried the Dutch flag, in order to obtain certain privileges of trading to Dutch ports, to one of which she was bound on the voyage in question. It was considered both in the Queen's Bench Division and in the Court of Appeal to be clear that the intention was that the contract should be English, even though the ship were to be regarded as Dutch. And Brett, L. J., further held, that as her owners were English, that was also her nationality, notwithstanding the fact that she was registered in Holland and not registered in England. So, again,'^in The Industrie («), a charter of a Grerman vessel was held to be an English contract. It had been negotiated and made in London, between English merchants and English brokers for the Grerman owner ; and it was upon an ordinary English printed form, containing such peculiarly English phrases as " act of Grod" and " Queen's enemies." The Court of Appeal, reversing Barnes, J., held that aU the circumstances together showed an intention to make an English contract. 211. It is well settled that the law of the flag determines the extent of the master's authority to deal with the cargo during the Master's authority to deal witii cargo deter- mined by the flag-la-w. (s) 42 Oh. D. 321. {t) The opposite conclusion ■was, how- ever, come to by the Supreme Court of the United States in the similar case of The Montana, 129 U. S. Eep. 397. («) 9 Q. B. D. 118 ; 10 Q. B. D. 521. (v) (1894) P. 68. EFFECT OP FOEEIGN I1A.WS. 241 voyage, and the manner in which he should exercise it. The Sect. 211. master generally has authority to hypothecate, and even to sell portions of the cargo in cases of necessity {w). This arises as a consequence of putting the goods into the ship under his control. But the extent of this authority and the conditions under which it may be exercised, differ somewhat under the laws of different countries. Where a conflict arises on the point, the law of the flag prevails. This was decided hy the Court of Appeal in The Gaetano and Bottomry. Maria {x), reversing the judgment of Sir E,. Phillimore. The master had there put into a port of refuge, Fayal (Portuguese), and had hottomried ship and cargo. The ship was Italian ; the cargo had been shipped under a charter party, made in London, to be carried to England ; and the ship and cargo had been arrested in England, after arrival, in an action on the bond. According to English law the bond was not valid, for it had been made without communication with the cargo owners. But by Italian law, it was stated, the master was entitled to make the bond without previous communication, upon complying with certain formalities and con- ditions, which had been done. The Court held that the bond was valid, if it was made in conformity with Italian law. Brett, L. J., said {y) : " Therefore, acting upon the principle of Lloyd V. Guibert (z), and upon the principle which arises from the mercantile transaction itself, it seems to me that, whoever puts his goods on board a foreign ship, puts them on board subject to be dealt with by the master according to the law of the country to which the ship, belongs, unless that authority is limited by express stipulation between the parties at the time of shipment." In The August (a), a claim was made against the owners of a Sale of cargo. German ship in respect of a sale of cargo by the master at a port of refuge. The goods had been shipped at Singapore for London. They were damaged on the voyage, and were sold by the master at Capetown, on the advice of surveyors there ; but they might, in fact, have been prudently reshipped and brought on to London. It was shown that the law of Germany justified such a sale, where {u>) See infra, Chap. X; [a) (1891) P. 328. As to the effect of (x) 7 P. D. 1, 137 ; and see The a sale, effectual according to the law of Eaomak, L. E. , 2 P. C. 505. tlie place of sale, in passing the property to the purchaser, see CammeU v. Sewell, [y] 7 P. D. at p. 148. 29 L. J., Ex. 360 ; Aloock v. Smith, ~ («) L. E., 1 Q. B. 115. (1892) C. 238. C. — C. 11 242 THE eONTEACT. Sect. Sll. the master, after taking tlie best advice he could get, honestly came to the conclusion that a sale was hest in the interest of the cargo owner. And Sir J. Hannen held that the liability of the ship- owners must be determined by that law. The same rule applies, in such a case, although the contract of carriage may have been made with reference to some other law than that of the flag. The master's authority to seU the cargo must stiU be determined by reference to the flag-law (c). On the other hand, the manner in which a bottomry bond is enforceable, and its effect and rank among other maritime liens on the ship and cargo, are determined by the law of the tribunal by which it is enforced (d). Through 212. There seems to be great uncertainty as to the law which contracts. ° , should govern a contract for through carriage, partly by land, and partly by water, from one country to another. In Cohen v. South Eastern Eail. Co. (e), a claim was made for damage to personal luggage of a passenger, carried from Boulogne to London. The passenger had taken her ticket at Boulogne ; and the question was raised, whether certaia conditions on the ticket were void, having regard to the Railway and Canal Traffic Act, 1854. It became unnecessary to decide whether English or French law must be applied ; but Mellish and Brett, L. JJ., considered the contract an English one ; while Baggallay, L. J., on the other hand, was incliued to regard it as French. Brett, L. J., seems to have thought that one part of the journey might be governed by French law, and another part by English. He put the case of a passenger booking through from Paris to London, and said: "Unless you could say that the three were entirely separate contracts, we should be called upon to say what law was to govern the first part of the journey, and whether that first part of the journey was to be ruled by the French law, and the other two by the English law. I, therefore, should find con- siderable difficulty in saying whether the contract as to the first part of the journey was to be considered as a French contract or an English one." Where the contract is to do several things which are separable from one another, there is no inconsistency in supposing that the (c) The Industrie, (1894) P. 68. (^ The Constancia, 2 W. Eoh. 487 ; The Union, Lush. 128. (c) 2 Ex. D. 253. EFFECT OF FOREIGN LAWS. 243 parties intended it to be governed by one law as to part, and by Sect. 813. another law as to another part. Contracts for through carriage are of this kind ; and it would be reasonable in some cases to adopt that rule of interpretation. Where, for example, an agreement is made between Americans for the carriage of cotton under a through bill of lading, from a place inland in the United States to England, say by rail to Philadelphia, and thence by a steamer belonging to an English line, it may well be supposed that the law of the flag was meant to govern the contract as to the latter part of the transit, although as to the first part there would be little doubt that American law would determine its effect (/). 213. Next as to the effect of foreign law in determining the VaUdityof validity of a contract. With regard to the capacity of the parties Form, to contract {g), and the suflSoienoy of the contract in point of form {h), the general rule is, that these are to be determined by the law of the place where it was made. Though the manner in which the contract must be proved, and the admissibility of evidence of its existence, are determined by the law of the tribunal in which it is sought to be enforced («). Thus, a docu- ment may be admitted to prove a contract, although not stamped in accordance with the law of the country in which the contract was made, or in which the document was executed (/). But "if for want of a stamp a contract made in a foreign country is void, it cannot be enforced here " {k). But with regard to the authority to contract, we have seen that the power of the master of a ship to bind the shipowner is not determined by the law of the place where the contract was made, but by the law of the flag {I). And with regard to form it may be that a contract for the employment of a ship which has been effectually made accordiug to the law of her flag, would be con- (/) Of. Moore 41. Harris, 1 A. 0.318; Barros (2), 5 P. D. 94, p. 100; the P. & 0. Co. 1/. Shand, 12 L. T. 808; question there was of capacity to marry. Chatenay v. Brazilian, &c. Co., (1891) (A) Alves ii. Hodgson, 7 T.~B. 241; 1 Q. B. 79. Clegg V. Levy, 3 Camp. 166 ; 'Westlake, {g) Male v. Eoherts, 3 Esp. 163 ; Lee ss. 171—176 ; Foote (2nd), p. 352. V. Abdy, 17 Q. B. D. 309 ; Story, Con- (i) Leroux v. Brown, 22 L. J., C. P. 1. fliot, ss. 76, 103 ; Foote, Priv. Int. Jur. (j) Bristow v. Sequeyille, 6 Ex. 276. (2nd), pp. 47, 337. But see the dictum {Tc) Per Rolfe, B., ibid, at p. 279. of the Court of Appeal in Sottomayor v. [1) Lloyd v. Guihert, 32 L. J., Q. B. Barros, 3 P. D. 1, p. 5 ; commented on 241 ; L. E., 1 Q. B. 115 ; The Gaetano by Sir J. Hannen in Sottomayor v. and Maria, 7 P. D. 137. k2 244 THE CONTEACT. Sect. 21S. sidered valid, although not completed with aU the forms required by the law of the place of the contract. Illegality by 214. The question whether the contract, supposing it to be pro- perly made, is legal and enforceable or not, gives rise to different considerations. The law by which that must be determined clearly cannot in all cases depend upon the selection of the parties. Fundamentally it must be the law of the tribunal by whose help effect is sought to be given to the contract. But that tribunal may be guided not only by the rules which would govern eon- tracts made, and to be performed, within its own state, but also by the rules of other states in which the contract has been made, or is to be performed. The question is, how far is that the case in England ? A contract made to effect a purpose which is prohibited by, or is contrary to the policy of English law, cannot be enforced in England, wherever it may have been made. Thus an agreement made in France by an English solicitor with persons residing there, to take legal proceedings on their behalf in England, on terms which amounted to champerty, could not be enforced in England, although it might be valid in France {m) . And where a gambling debt had been incurred in England, bills given for it ia France were invalid {n). In EousiUon v. EousUlon (o). Fry, J., said : " It appears to me, however, plain on general principles, that this Court will not enforce a contract against the public policy of this country, wherever it may be made. It seems to me almost absurd to suppose that the Courts of this country should enforce a contract which they consider to be against public policy, simply because it happens to have been made somewhere else." And Turner, L. J., in Hope v. Hope {p), said: "When a Court of Justice in one country is called on to enforce a contract entered into in another country, the question is, not only whether or not the contract is valid according to the law of the country in which it is entered into, but whether or not it is consistent with the law and policy of the country in which it is to be enforced ; and it it is opposed to those laws and that policy the Court cannot be called on to enforce it " {q). (ffl) GreU V. Levy, 9 L. T. 721. [q) As to contracts valid where made, («) ■Wynne v. Callander, 1 Rubs. 293. but regarded here as immoral, see per (o) 14 Ch. D. 351, p. 369. "Wilmot, J., Robinson v. Bland, 2 Burr. Cp) 26 L. J., Ch. 417, p. 424. 1077, p. 1084 ; relating to slaves, see EFFECT OF FOEEIGN LAWS. 245 215. But if the English law does not prohibit what is intended, Sect.. 215. under a contract, from being done at the agreed place of perform- Contracts ance, and if it is not illegal there, then the contract will, it seems, piaoe of be regarded as valid by an English tribunal ; even though it may performance. have been made in England. This difference is well illustrated by a case in the State of New York, where lotteries were illegal, in which an action was allowed upon a bond executed in New York for the faithful management of a lottery in Kentucky : lotteries being legal in the latter State (r). And d fortiori, the contract will not be treated as illegal if it was also made in a place where it was valid. Thus, where money had been won at play, and lent for the purpose of play, between Englishmen, in a country where that was legal, it was held to be recoverable here (s). 216. The question of validity becomes more difEcult, and the Illegality by answer more uncertain, where the contract is one which is not illegal according to our law, but is so according to the law of the place where it was made, or according to that of the place where it was to be performed. If the result of enforcing the contract will be to enable a breach of the laws of a foreign state to be committed vdthia that state, it would seem that policy and comity require that the contract should be regarded as an illegal thing, and not enforced (^).. That view has not, however, in all cases been adopted where the foreign rules have been distasteful, more particularly where they have been rules made in restraint of trade. In Boucher v. Lawson {li), it was said that a contract for the conveyance of coin from Lisbon to London would be valid, although the exportation of coin was then prohibited by the laws of Portugal; for the importation of it into this country was allowed by our laws, and so the trade was lawful here. And contracts made with the object of defeating foreign customs laws have been held to be valid and Forbea v. Cochrane, 2 B. & C. 448 ; 147. Cf. Robinson v. Eland, 2 Burr. Madrazo v. WUleB, 3 B. & Aid. 353. 1077 ; Branley v. S. E. Bail. Co., 31 But of. Santos v. lUidge, 29 L. J., C. P. L. J., 0. P. 206. 348 ; Pollock, Contr. (4th), p. 341. ^^ jjeriz .. Eiera, 11 Sim. 318 ; De (r) Kentucky v. Bassford, 6 HiU, 526 y^^^^ ^ Hendricks, 2 Bing. 314. (N. T.) ; cited Stoiy, Conflict, s. 258a ; Westlake, s. 192. («) Eep. temp. Hardwicke, p. 86 ; («) Quarrier v. Colston, 1 Phillips, Abbott (5th) 95 ; (11th) iii. 2, 3. 246 THE CONTKACT. Sect. 216. enforceable («) ; for " one nation does not take notice of the revenue laws of another" («/). And this has been consistently- applied to the relations of a foreigner to British revenue laws. One who had sold goods to a British subject, knowing that they were bought for the purpose of smuggling them into this country, was still allowed to recover the price (z). Though it would have been otherwise had he assisted in the breach of the law, as by packing them in a peculiar way to avoid detection («). Further, the fact that the adventure contemplated in a charter party cannot be carried out owing to restrictions of foreign governments, does not put an end to the contract, or excuse the non-performance of it (b). Though it would be otherwise if the performance were prevented by the British government (c). Stipulations 217. Where, however, a stipulation in a contract' made in a void by „ . . foreig:u law. foreign state is merely mid by the law of that state, so that effect would not there be given to it, it does not follow that it will be treated as of no effect by our Courts. In E,e Missouri Steamship Co. {d),a. shipment of cattle had been made at Boston on a British ship under a contract made in Boston which excepted losses by negligence of the master or crew. This exception was void by the law of Massachusetts, and by the Federal law of the "United States, as being contrary to public policy. The ship was wrecked on the coast of Carnarvon, owing to negligence of the master and crew, and some of the cattle were drowned. The Court of Appeal, affirming Chitty, J., held that the contract showed . that the parties meant it to be governed by English law ; and that as the law of the United States did not make the exception illegal, but only void (in the sense that the Courts there would disregard it), effect could here be given to the exception ; and the shipowners were therefore exempt. The question of the validity of a stipulation in such cases depends on the law which the parties to the contract meant to be governed by; and, as we have seen, this will generally in our {«) Planolie v. Fletcher, 1 Doug. 251 ; (z) PeUecat v. Angell, 2 C. M. & E. and see Simeon v. Eazett, 2 M. & S. 94 ; 311. 5 Taun. 824. But of. per Denman, W "WaymeU v. Eeid, 5 T. R. 599. 0. J., in Spenoe v. Chadwick, 16 L. J., (*) ^^l** '»■ I'age, 3 B. & P. 295, n. ; Q B 3ig_ Barker v. Hodgson, 3 M. & S. 267. («) Infra, s. 237. (y) Per Lord Mansfield, 1 Doug. 261. (i) 42 Ch. D. 321. EFFECT OF FOREIGN LAWS. 247 Courts be taken to be the law of the flag. And, although by the Sect. 217. law of the TJnited States a clause excepting negligence is void in a contract governed by that law, probably effect would be given to such a clause by the Courts of the States in a ease where the contract clearly showed that the parties meant to contract with reference to English law (e). (e) See stipra, tt. 101. 248 Part II. THE VOYAGE. CHAPTER VIII. PEOCEEDING TO THE POET OP LOADING. THE CONTEACT. DISSOLUTION OP SECT. Ship to proceed with diligence .... 218 Time fixed for saUing — Condition. . 219 Meaning of " saiUng " 220 Time fixed for arrival — Condition — " Eeady to load" 221 Ship must go notwithstanding charterer's option of refusal .... 222 Owner must be diligent though date for arrival named 223 The charterer must name the port of loading before sailing, and without delay 224 "So near thereto as she can safely get" 225 Eelates to leaving as well as enter- ing the port 226 Does the owner undertake that the ship shall arrive ? 227 Cunningham v. Dunn 228 Principle of joint inability , 229 Loading not generally excused by delay in proceeding 230 Otherwise if the adventure is frus- trated by the delay 231 Dissolution of the Contract. Where delay frustrates the adven- ture 232 SECT. Shipowner also discharged if not responsible for the delay 233 Contract for a series of voyages . . 234 Owner discharged by a refusal to load at the agreed place 235 Express agreements to cancel charter party in certain events . , 236 Charter party dissolved on becoming contrary to law 237 Effect of war with the country of loading 238 War of the country to which" ship belongs 239 Where carriage partly performed. . 240 Effect given to charter party where legally possible 241 Temporary restraint of voyage — Capture and re-capture 242 Effect of war on trade of subjects with enemy 243 Effect of a foreign war on British neutrals 244 Contracts for trade in contraband. . 245 Contracts to run blockades 246 Illegality of performance at port of loading does not dissolve con- tract — Contracts to break foreign revenue laws 247 Ship to pro- 218. If the ship is not at the port at which she is to load under ceed with. j.r i. j. diligence, the Carter partjr, it is the duty of the shipowner, subject to PROCEEDING TO PORT OF LOADING. 249 express qualifloations, to take her there with reasonahle diligence. Sect. 218. There oiight to be no unreasonahle delay in setting sail, and no needless deviation or dilatoriness on the way. Usually the charter party stipulates that the ship shall sail and proceed " with all convenient speed," or " with all possible dispatch ; " or uses some other similar expression. These do not apparently extend the common law obligation to be diligent. Thus in Hudson v. Hill {a) it was held that to proceed " forth- with " only meant " without unreasonable delay." The vessel in that case was in dry dock, undergoing repairs, at the time the charter was made, December 28th, 1870 ; and did not leave it imtil January 6th. On the 10th a charter for an outward cargo of coals, which she was at liberty to take, was con- cluded, and she finished taking in that cargo on the 27th. She was then detained by adverse weather and tides, until February 8th, when she sailed. The jury were directed that she had proceeded ^ " forthwith " if there was nc unreasonable delay, and they found in favour of the ship. The direction was approved by the Court. 219. But sometimes the charter party definitely fixes a time Time fixed before which the ship is to sail for the port of loading, or by condition, which she is to etrrive there. Such a stipulation must be strictly conformed to. The shipowner, if he fails in it, is liable to pay damages to the charterer : and the charterer, upon such a failure, is generally at liberty to decline to load the ship. In Griaholm v. Hays (5), a ship had been chartered " to sail from England " for the port of loading " on or before the 4th of February next ; " she delayed sailing until the 22nd, and then proceeded ; the charterer refused to load, and he was held to be exonerated by the delay. And in a similar case the same view was taken, although the sailing by the fixed date was prevented by bad weather, amount- ing to an act of Grod, and although the act of Grod was expressed to be "throughout the charter party always excepted " (c) . Martin, B., delivering the judgment of the Court, said : " Then does the word 'throughout' make any difference? We think that it does not. It might, perhaps, operate to exonerate the plaintiif from an action in the event of the ship being prevented from sailing on the 15th of March by any of the matters excepted ; but we think (a) 43 L. J., C. P. 273. (c) Crookewit v. Fletolier, 26 L. J., (i) 10 L. J., C. P. 98. Ex. 153. 250 THE VOYAGE. Meaning of "sailing." Sect. S19. it does not affect the condition precedent, upon the performance of which the defendant contracted to take and load the ship " {d). On the other hand, a stipulation that the ship should " sail with the first favourahle wind," has been held not to be a condition precedent (e). 220. The condition of sailing on or before a particular date will not be satisfied unless the ship has definitely left the dock or moorings at which she was lying, ready for her voyage, and with the intention, on the part of those in charge, of proceeding upon it forthwith. It would not be enough for the ship to have left her moorings, or even the harbour, if there was no intention of proceed- ing until something more had been done (/). Thus, where a ship, laden and fit for sea, left the harbour, and it was intended that she should proceed as soon as her clearances were completed, and biUs of lading signed, it was held that, as these things had not been done, she had iiot sailed {g). Where the condition is, that the ship shall "finally sail," or shall " sail from " a port, or shall " depart," on or before a given day, it will not be satisfied unless she has not only sailed, but has got out of the port by that time (A). Whether she has done so or not is to be ascertained by reference to the popular or general sense of the name used in describing the place («) . A charter party provided that the ship should " sail and proceed from Amsterdam with aU convenient speed to Liverpool, to leave Amsterdam not later than all March." The ship left the docks at Amsterdam, with part of her ballast only on board, on the 30th of March ; she arrived at Alkmaar, outside the port of Amsterdam, on the 31st of March ; there took in the remainder of her ballast on the 1st and 2nd of April, and sailed for Liverpool on the 3rd. It was held that the charter party had been complied with (Ic). 221. If the ship is expressly to arrive, or to be ready to load at the port of loading by an appointed date, the performance of that Time fixed for arrival — condition. [d) 26 L. J., Ex. p. 159. («) Bommann v. Tooke, 1 Camp. 377. (/) Tliompson v. Gillespie, 24 L. J., Q. B. 340 ; Hudson v. BUton, 26 L. J., Q. B. 27. (^) Hudson V. Bilton, 26 L. J., Q. B. 27. And see Eidsdale v. Newnham, 3 M. &S. 456. [h) Moirjj. Eoyal Exotange Ass. Co., 3 M. & S. 461 ; Eoelandts v. Harrison, 23 L. J. Ex. 169. (i) Lang V. Anderdon, 3 B. & C. 495 ; Price V. Livingstone, 9 Q. B. D. 679. See infra, ss. 448, 567. [k) Van Baggeu v. Baines, 23 L. J., Ex. 213. Cf. Sharp v. Gibbs, 1 H. & N. 801. PROCEEDING TO PORT OP LOADING. 261 undertaking is a condition precedent to tlie charterer's obligation sect. 221 to load lier. Thus, where the ship "was to be " ready to receive cargo in all May, guaranteed by the owners to sail in all June," and she was not ready to receive cargo in May, the charterers were dis- charged Q). And so where the charterers ~ were to have the option of cancelling the charter party, if the steamer had not arrived at the ■ loading port, " free of pratique and ready to load on or before the 15th of December ; " and she had arrived there, but was not " free of pratique," because communication with the shore was impossible, owing to the state of the weather : it was held that the charterers had the right to cancel (m). And the vessel is not "ready to load" within the meaning "Eeadyto of such a clause, unless she is discharged and ready in all her holds, so as to give the charterer complete control of every portion of the ship available for cargo (n) ; except so much as is reasonably required for ballast to keep her upright (o) . Also, the ship must be legally able to communicate with the shore. So that where charterers had the option of cancelling " if the steamer does not arrive at port of loading, and be ready ^to load on or before midnight of 10th October," and she arrived at 11 p.m. on October 10th, but no one could leave the ship or come on board until after the health officer had visited her on the following morning, it was held that she was not ready in time. The health 'regulations disqualified her (p). But the condition does not require that the holds shall have been prepared for the particular cargo. A ship was held " ready to receive cargo," although her holds were not lined in the manner usual for a wheat or flour cargo, which the charterer was about to ship (q) . Nor does the condition require that the ship shall be in a loading berth (r). Where the charter party gave the charterer the option of Subject to special {1} OUver V. Pielden, 18 L. J., Ex. (o) Vaughan v. CampteU, 2 T. L. R. ^^"^P*^""" 353 ; Shadfortli v. Higgin, 3 Camp. 385. 33. Cf. DefEel v. BrocklebaBk, 3 Bligh, 561. {p) The Austin Friars, 71 L. T. 27 ; ^ „ WHte »-. S.S. Wiuoliester Co.,23 So., (m) Smith V. Dart, 14 Q. B. D. 105. -^ jj g^g Cf. BaJIey v. De Airoyaye, 7 A. & E. '(j) Vaughan .. CampheU, 2 T. L. R. 33 ; Grampian Steamship Co. v. Carver, («) Groves v. Volkart, 1 Cab. & EU. 9 T. L. R. 210. 309, W Hick V. Tweedy, 63 L. T. 765. 252 THE VOYAGE. Sect. 221. Ship must go notwith- standing charterer's option of refusal. Owner must he diligent, though date for arrival named. refusing to load if the ship did not arrive at tlie port of loading by November 28tb, unless "prevented by stress of weather or other unavoidable impediment," and owing to adverse wind and bad weather she did not arrive until January 20th, the charterer was not entitled to refuse to load her ; although the ship had been to an intermediate port, and had taken the full usual time in discharging there. Tindal, 0. J., held that the charterer's option did not arise if ordinary diligence had been used, even though the delay might have been avoided by unusual efforts (s). 222. The fact that the charter party gives the charterer the right to refuse to load the vessel if she does not arrive at the loading port by a given date, does not excuse the shipowner in neglecting to send her there, although it may have become impossible to get her there by the time named. Thus, in Shubrick v. Salmond (t), a vessel was chartered to go to Winyaw, in South Carolina, after discharging an outward cargo at Madeira ; and the charter provided that if she did not arrive at Winyaw by the 1st of March, 1763, the charterer was to have the option of loading her on the charter terms, or at the then current freight at Winyaw, or to refuse her entirely. To an action for not proceeding to Winyaw, and for not arriving there on the 1st, of March or at any time, it was pleaded that by reason of contrary winds and bad weather the ship was prevented from arriving at Madeira until February 16th, 1763 ; so that it was impossible, after discharging the outward cargo, to arrive at Winyaw by the 1st of March. A demurrer to this plea was allowed. Lord Mansfield said: "The words are positive and express, 'that he should go thither.' The parties plainly meant that the ship was to go thither." Moreover, the shipowner cannot require the charterer to declare his election, whether he will load or not, before the ship has arrived at the loading place, although the date for arrival may have already passed {u). 223. If no time is fixed for sailing to, or arriving at, the loading port, the shipowner is still bound to use all reasonable diligence in despatching her and bringing her there. If he fails in this he is hable to the charterer. And the fact that a date is named in (s) Granger v. Dent, M. & M. 476. («) 3 Burr. 1637. And see The Pro- greso, 60 Fed. Eep. 835. (m) The Samuel W. HaU, 49 Ted. Eep. 281 ; The Progreso, 60 Fed. Eep. 835. PROCEEDING TO POET OF LOADING. 253 the cTiarter party tefore wMoli the ship must arrive, if the charterer Sect. S23. is to be bound to load, does not entitle the owner to delay sending her until that date. In M'Andrew v. Adams (v) a ship had been chartered to proceed in ballast to St. Michael's and there load a cargo of fruit, the charterer to have the option of declining to load her should she not be ready for her cargo by January 31st. By sailing direct she might reasonably have been expected to bring her cargo to London by January 1st ; but she made an intermediate voyage to Oporto ; and thus, though she arrived and loaded at St. Michael's some weeks before January 31st, she did not arrive in London until February 1st. Held, that the owner was liable in damages for the delay. 224. If the loading port is not named in the charter party, but The charterer remains to be determined by the charterer, he must, subject to the port of special agreement, name it before he can require the ship to sail. gaOi^tmd"'^^ Thus, where she was to proceed to a " safe port near Capetown," it without was held not to be enough that the charterer was ready to put an agent or supercargo on board, who would give the order later («). And if the charterer delays unreasonably in naming the port, he will be liable for the shipowner's loss by the detention of the ship (y). In WooUey i\ Eeddelien (z), a ship which was outward bound with cargo to Malta was chartered for a homeward voyage. The charter party provided that the ship, " after delivering her outward cargo, should with all convenient speed sail and proceed to Marseilles, Genoa, or some other safe port on the east coast of Italy, not higher than Manfredonia, as should be ordered at Malta," and there load the homeward cargo. It was held, on demurrer, that the charterer was bound to give his orders, as to the port of loading, within a reasonable time of the ship's arrival at Malta, and that that might be before she had discharged her out- ward cargo. Where the agreement was that the ship should proceed to Orders to Honduras and load "at one of the usual and customary ports or ^"J^port**^ places of loading," and the freighter directed the master to proceed to Belize, in the Bay of Honduras, and address himself to a (v) 1 Bing. N. 0. 29; of. Gill v. {y) As to the meaning of "port" and Browne, S3 Fed. Kep. 394. '.'safe port," see s. 448 et seq. {x) Rae V. Hackett, 13 L. J., Ex. 216, (z) 12 L. J., 0. P. 152, 254 THE "VOYAGE. Sect. 224. certain person, who wonld furnisli him with a cargo " agreeable to charter party," it was held to he a question for the jury whether the ship was sent to Belize as her port of loading. The person named put a small quantity of cargo on board at Belize; then directed the ship to go to Ulna, where she received about half her cargo, and afterwards to two other ports, where she completed it. The jury were directed that, if Belize was the agreed loading port, then aU the extra expenses of going to the other places must be paid by the freighter ; and, if not, he would still be liable for the expenses of going to the places subsequent to Ulna (a). "So near 225. The ship is generally to proceed to the loading port "or ^^nfatelj ^^^ SO near thereto as she can safely get." It has been said that the get." meaning of this " must be, that she should get within the ambit of the port, though she may not be able to enter it"(&). ' But this is not the natural effect of the words; and the later authorities seem to show that the shipowner's undertaking may be satisfied although the ship, has not come within, or even near, the port, if she is prerented from doing so by an obstruction of a "permanent" character (c) . Perhaps, however, in such a case the charterer would not be bound to load her, on the ground that it was contemplated that the loading should be in the agreed port, and not elsewhere. And if the obstruction to the ship's progress, either to the port, or to the proper place of loading in the port, is only of a temporary kind, the clause does not entitle the ship- owner to refuse to wait and proceed after it has been removed. In Schilizzi v. Derry (d), a ship had been chartered to proceed to Galatz or Ibrail, " or any other safe port on the river Danube not higher than Ibrail, or so near thereto as she may safely get," and there load a cargo. She proceeded in ballast to Sulina, at the entrance to the Danube, arriving there on the 6th of November, 1853. She could not then go on to Galatz, as there was not water enough to enable her to cross the bar of the river at Sulina; Galatz is 95 miles up, and Ibrail is 20 miles above Galatz. The master gave notice to the charterers' agents that he had arrived as near to Galatz as he could safely get, and that he was ready to receive cargo. But no cargo was sent ; and after waiting off {a) Brown v. Johnson, Oar. & M. 440. („) ^^i^^^ ^ D^y^ 12 Ch. D. 568 ; (i) Per Lord Campbell in Schilizzi d. ^ .rxr-., ^ ^ t. -^ ,„^ Derry, 24 L. J., Q. B. p. 197 ; adopted ^''^^'' "■ ^^^^''«' ' «• ^- »• ''^ ' by the Q. B. D. in MetoaUe v. Britannia '^^7^°^ ^- Irwin, 5 0. P. D. 130. Ironworks Co., 1 Q. B. D. 613. W 24 L. J., Q. B. 193. PEOCEEDING TO POET OF LOADING. 255 Sulina until December 11th lie sailed for Odessa, the nearest safe Sect. 225. port to which the ship could go, and there loaded a cargo from other merchants. After the ship had left Sulina the water got deeper ; and on and after the 7th of January, 1854, she might have crossed the har, taken in a cargo at Galatz, and sailed out of the river with it. The charterers would in this case have been able to make a profit of 1,000^. by sub-chartering her. It was held that the ship had not got as near to Galatz as she safely could within the meaning of the charter party : and the charterers recovered damages for their loss (e). It is now established that a shipowner may have satisfied his undertaking to get as near as he safely can, although the obstacle which prevents his going further may not be a physical one ; nor one that is absolutely permanent (/). In each case the question is whether the impediment could " be overcome by the shipowner by any reasonable means except within such a time as, having regard to the objects of the adventure of both charterer and shipowner, was, as a matter of business, wholly unreasonable " {g). In SchiHzzi v. Derry {h), it was further contended that the shipowner was excused by the exception " dangers and accidents of the seas, rivers and navigation of what nature and kind soever during the voyage." But the Court held that as the impediment was only temporary, the contract did not come to an end, and both parties remained bound by it when performance became possible. 226. " So near thereto as she can safely get " has relation to Relates to the ship's safety, not only in going into the port of loading, but -well as enter- also in getting away from it when loaded. A ship was chartered ^^^ ^ ^""^ " to proceed to Eiga vi^ Bolderaa, or as near thereto as she could safely get, and there load a full cargo. Both parties knew that a full cargo could not be loaded inside the bar at Bolderaa, which is a bar harbour. The ship went to Bolderaa, took in as much cargo as she could carry over the bar, and then left the harbour and came to anchor outside, as near as she could safely lie, for the purpose of taking in the rest of the cargo. But the charterers (e) Of. Parker -o. Winlo, 27 L. J., {g) Per Brett, L. J., in Nelson v. Q. B. 49. • Dahl, 12 Oh. D. 568, at p. 593. The subject Is more fully discussed infra, if) Nelson v. Dahl, 12 Ch. -D. 668 ; gg. 453 et seq. 6 A. 0. 38. {V) 24 L. J., Q. B. 193. 256 THE VOYAGE. Sect. 226. refused to incur the expense of loading any more cargo outside the bar, and the ship sailed with a part cargo only. It was held that the charterers ought to have completed the loading outside, and that the vessel need not have crossed the bar at all («). When a port was to be named for loading, under a charter for a full cargo, and the amount of freight depended upon the quantity of cargo carried, it was held that the charterers could not order the vessel to a port at which she could not load a full cargo, owing to a bar which would have to be crossed {k) . Does owner 227. The question arises, does the shipowner undertake to do that the ship more than be diligent in bringing the ship to the port of loading ? the porTo/ ^ Does he absolutely promise that she shaU. arrive there and take in loading? cargo, unless prevented by the excepted perils ? And if so, does he undertake that she shall do so in any particular time ? If there is an express undertaking that the ship shall arrive, the shipowner must perform it, or must pay damages for not per- forming it, unless the exceptions excuse him {T). For the rule of English law is strict, that one " who expressly contracts absolutely to do a thing not naturally impossible is not excused for non- performance because of being prevented by vis major" (m). But when the ordinary words are used, such as that the ship shall with all convenient speed, or with all possible despatch, sail and proceed to the port of loading, and there load the cargo, the matter seems to be open to doubt. The introduction of qualifying expressions, such as " convenient," &c., rather shows that the shipowner does not mean to warrant that she will get there without delay, or at all ; but that he will do his best to bring her there. On the other hand, the insertion of express exceptions, which may relate to the voyage to the port of loading (m), goes to show that the obligation to accomplish that voyage is only limited by those exceptions. The question is one of construction, and does not appear to have been settled. But there are dicta to the effect that (subject to the exceptions) the owner does undertake to bring the vessel to the place of loading ; and to do so in a reasonable time, having regard to the adventure contemplated. Thus, in Jackson v. Union Marine (i) Shield v. WiUdna, 19 L. J., Ex. by the exception clause, although the 238. See The Alhambra, 6 P. D. 68. ship was " guaranteed for cargo aU this (A) Charpentier «?. Dunn, 16 Sc. L. E. month." 726. («») Per Bowen, L. J., Jacobs v. (?) In Barker v. M'Andrew, 34 L. J. Credit Lyonnais, 12 Q. B. D. p. 603. 0. P. 191, the-shipowner was excused («) Siipra, Chap. IV., s. 30. PROCEEDING TO PORT OF LOADING. 267 Ins. Co. (o), Bramwell, B., after holding that the ship must arrive in Sect. 227. a reasonable time for the adventure in order to bind the charterer, added : " Now what is the effect of the exception of perils of the seas, and of delay being caused thereby ? Suppose it was not there, and not implied, the shipowner would be subject to an action for not arriving in a reasonable time, and the charterers would be discharged." And again : " There is then a condition precedent that the vessel shall arrive in a reasonable time ; on failure of this the contract is at an end, and the charterers discharged, though they have no cause of action as the failure arose from an excepted peril" (p). If the implied undertaking is that the ship shall arrive within a reasonable time, having regard to the adventure, that must mean a time free of extraordinary delay ; a period which has a calculable limit ; and if it was intended that the shipowner should be bound to this, it might have been so expressed. Generally an absolute obligation to do a thing which may become impossible of perform- ance owing to causes which the contracting party cannot foresee, and cannot control, is not imposed on him by implication when he has not undertaken it expressly (q). 228. Cunningham v. Dunn (>•) is a case in which a charter was Cunmngham held to have come to an end through a failure to reach the port of *' •'^"""• loading, and is very remarkable. It was agreed by charter party that the ship Rainton, " now on her way to Genoa and Malta, shall with all convenient speed, after loading dead weight at Malta for owner's benefit, sail and proceed " to a Spanish port, to be ordered by the charterer, " or so near thereto as she may safely get," and there log,d from the charterer's factors the remaining measurement space of light cargo, for London. The perils excepted were the ordinary ones, but did not include restraints of princes. The dead weight to be taken in at Malta was a quantity of mihtary stores; and the charterer knew this. Also he became aware, before ordering the ship to Valencia, that with military stores on board she would not under Spanish law be allowed to load (o) L. R., 10 C. P. 126. Of. per (?) See per Martin, B., Ford «i. Cotes- CressweU, J., in Hurst v. Usbome, 26 -n^ortli, D. R., 5 Q. B. p. 648 ; per T T P P 9nQ t 2n Lindley, L. J.^iaHiok ». Rodooanachi, ■' ' ^' ■ (1891) 2 Q. B. p. 638 ; Taylor v. G. N. (p) L. R., 10 0. P. at pp. 144, 146. ^^^ ^o., L. R., 1 0. P. 385 ; cf. Tay- And see Cunningham v. Dunn, 3 0. P. lor v. Caldwell, 32 L. J., Q. B. 164. D. 443, cited infra, s. 228. (r) 3 C. P. D. 443. C. — C. S 258 THE VOYAGE. Sect. 228. other cargo there. Efforts were made through the British Minister at Madrid to induce the Spanish G-overnment to allow The Eainton to load at Yalencia ; but this permission could not be obtained, and she sailed away, without loading, immediately after her arrival there. The charterer sued for the breach of the charter party. But the Court of Appeal, affirming Lord Coleridge, C. J., held that the shipowners were not liable. BramweU, L. J., said that the shipowner had " committed no default at Valencia. I think that this case is governed by the principle laid down in Ford v. Cotesworth (s) ; the plaintiff, as charterer, was willing to put a cargo on board, but a power over which neither party had any control prevented the defendants as shipowners from receiving it. ...... , My judgment is for the defendants, and the grounds of it are, first, that there was at Yalencia a joint inability to perform the charter party, and not a refusal by the defendants so to do ; secondly, that there was no warranty that the dead weight should be such as to allow the Vessel to be loaded ; thirdly, that if the defendants were bound not to disable themselves from taking on board the plaintiff's cargo, they did not know at the time of entering into the charter party that they would so disable themselves ; and fourthly, that the plaintiff gave the defendants Ueence to sail to Yalencia with the military stores on board" (t). Brett, L. J., said : " The defendants had done nothing inconsis- tent with their contract, and had done only what they were entitled to do. But by reason of Spanish law, and of the refusal of the Spanish Government to mitigate it, the defendants were not ready to load, but also the plaintiff was not ready to put the cargo on board : the law of Spain prevented the parties from performing what they had respectively undertaken to do. Ford v. Cotesworth (m) is in point, and seems to me to decide this case ; it establishes that where neither party is ready to perform his undertaking, because both are prevented by some superior power, neither party can maintain an action against the other. For these reasons I think that the judgment of Lord Coleridge ought to be affirmed " {x). Cotton, L. J., said : " We may assume that the plaintiff had provided a cargo ; but both parties were prevented from perform- W L. R., 4 Q. B. 127 ; L. E., 5 Q. B. («) L. E., 4 Q. B. 127 ; L. E., 5 Q. B. 544. g44_ (t) 3 C. P. D. pp. 447, 448. {^) 3 0. P. D. pp. 448, 449. PROCEEDING TO PORT OF LOADING. 259 ing their respeotiTe undertakings by the prohibition of the Spanish Sect. 228. Government .... All that the shipowners have done has been in accordance with the terms of the contract. The charterer cannot say that the ship has not been loaded tbrough the default of her owners : the act of the Spanish Government has prevented the contract between the parties from beiag carried out "(«/). 229. The ground of joint inability of the, parties to the contract, Principle of partly relied on by aU the judges in this case, is very difficult to ability, understand. For it does not appear that the charterers were under any difficulty as to loading the cargo, except indirectly through the inability of the shipowners to keep their ship in port. They were, it seems, ready with a cargo, upon the loading of which no prohibition was placed ; and so far as appears it was no part of their duty to assist in bringing the ship to the place of loading, or in keeping her there in safety. They were as fuUy able to perform their part of the contract as a freighter can be in any case in which the shipowner fails to send his ship to the port of loading. There is a similar difficulty in understanding how the principle of joint inability was applicable in the case of Ford v. Ootesworth (z), cited in Cunniagham v. Dunn. There the charterer was sued for detention at the port of discharge. The discharging had to be done by lighters, to be sent by the charterer to the ship ; but they were not sent, for the landing of the cargo was prevented by the authorities of the port. The- shipowner's part, of unloading the cargo into the lighters, however, was not interfered with, except indirectly through the interference with the charterer. Yet, it was held that both parties had been disabled from performing the contract by the action of the authorities. Both m Ford v. Ootesworth and in Cunningham v. Dunn, it appears that there were sufficient grounds for the judgment, apart fi'om this doctrine of joiat inability. And in neither case does there appear to have been any intention to overrule earlier cases, such as Barker v. Hodgson (a), and Sjoerds v. Luscombe(J), to which that doctrine would seem to apply with equal force. No reliance seems to have been placed on the doctrine in Scotland, in the recent case of White v. Steamship Wiachester Co. (c), where {y) 3 C. P. D. pp. 449, 450. {a) 3 M. & S. 267. («) L. E., 4 Q. B. 127 ; L. R., 5 Q. B. {b) 16 East, 201. 544, discussed infra, a. 616. [c] 23 So. L. R. 342 (1886). s2 260 THE VOYAGE. Sect. 229. the charterers' failure to load within the lay days was due to quarantine regulations, and was held to he excused on the ground that the ship could pot he placed at their disposal ready for cargo. Nor was the doctrine relied on by the Court in Budgett v. Bri- mington {d), where the merchant was held liable for demurrage, though both ship and merchant were disabled from effecting the discharge by a strike. . Loading not 230. A neglect of the shipowner to proceed to the port with excused by diligence does not generally entitle the charterer to refuse to delay in 1 ,1 /■ ^ proceeding. J-Oaa \e). A charter of a new steamer, The Ephesus, provided that she should "with all convenient speed (on being ready), having liberty to take an outward cargo for owner's benefit direct, or on the way, proceed to Alexandria," and there load a cargo of cotton from the freighters. Instead of going direct to Alexandria, The Ephesus took out a cargo for Malta, Syra, Constantinople, Smyrna, and Alexandria ; and she deviated from her direct course in going that round. She thus arrived at Alexandria later than she should have done: freights for cotton had meanwhile fallen there, and the charterers refused to load. It was held they had no right to do so, and that they must compensate the owners for the loss of freight sustained through the refusal (/). otherwise if 231. But when the delay is such as in effect to frustrate the the attTenture is frustrated intended adventure, the charterer may be entitled to reject the hy the delay. ^^^.^^ In MacAndrew v. Chappie, Willes, J., said {g) : " It seems to be now settled that delay by deviation is the same as a delay in starting ; and it is also settled, at any rate in this Court, that a delay or deviation which, as it has been said, goes to the whole root of the matter, deprives the charterer of the whole benefit of the contract, or entirely frustrates the object of the charterer in chartering the ship, is an answer to an action for not loading a cargo: but that loss, delay, or deviation short of that gives an action for damages, but does not defeat the charter. From the time of Boone v. Eyre (A), Eitchie v. Atkinson (i), and Davidson M 26 Q. B. D. 320 ; (1891) 1 Q. B. 35. 0. P. 643. See also CUpsham :;. Vertue, (e) Tarrahoohia v. Hickie, 26 L. J., 13 L. J., Q. B. 2. Ex. 26 ; Dimeoh v. Oorlett, 12 Mo. P. C. (y) L. R., 1 C. P. at p. 648. 199- W 1 H. Bl. 273, n. (/) MacAndrew v. Chappie, L. K., 1 (i) 10 Eaat, 295. PROCEEDING TO PORT OF LOADING. 261 V. Grwynne (k), this rule 'has heen applied. In the present case I Sect. 231. apprehend the hreaohes resolve themselves into such a delay as can he compensated for by damages. The vessel was not engaged for any particular cargo, but the contract was merely a speculation on the rise or fall of freight ; and the object of the voyage, therefore, was in no sense frustrated." That view was in accordance with the earlier case of Freeman v. Taylor (l) . A ship had been chartered to take cargo to the Cape of Grood Hope, and thence to go with all convenient speed to Bombay, and there load a cargo of cotton from the charterers. She discharged her cargo at the Cape ; but then, instead of pro- ceeding direct to Bombay, took on board a cargo of mules and cattle and carried them to the Mauritius, on the captain's account. There was thus a delay of six or seven weeks in reaching Bombay, and the charterer refused to load. The jury was asked to say whether the delay was of such a nature as "to put an end to the ordinary objects the freighter might have had in view when he entered into the contract," and, their answer being in favour of the charterer, he was held excused from loading {m). Dissolution of the Contract. 232. The foregoing were cases in which the delay was due to a Where delay- default by the shipowner ; but the principle involved in them has adventure. a wider application. A charter party is ordinarily made with the view of carrying out a commercial object, which may be frustrated by an unusually prolonged delay ; and the parties must be con- sidered to have entered into it contemplating that a delay might have that effect. Hence it may be inferred that the intention was that the agreed voyage was to be performed, provided that no delay should occur such as to frustrate its object before it com- menced ; but that if such a delay should arise, without any default of either party, the transaction was not to be carried through. If, then, a delay of this kind has occurred before the loading, either party may treat the contract as dissolved and at an end (m). In Jackson v. Union Marine Insurance Go. (o) the question was, (i) 12 East, 381. 125, overruling on ^s point Hurst v. (I) 8 Bing. 124. IJsbome, 25 L. J., C. P. 209. Of. Touteng v. Hubbard, 3 B. & P. 291 ; M Cf . The Alert, 61 Fed. Rep. 504. ^aid v. Hine, 39 Fed. Eep. 818 (1889). («) Jackson 4). Union Marine Ins. Co., (o) L. R., 8 C. P. 572; L. E., 10 L. E., 8 C. P. 572 ; L. E., 10 C, P. C. P, 125, 262 THE VOYAGE. Sect. 233. whether charterers were entitled to thl-ow up a charter party, -under which a vessel was to proceed with all conyenient speed from Liverpool to Newport, and there take a cargo of iron rails for San Francisco ; the dangers and accidents of navigation being excepted. The ship, on her way to Newport, took the rocks in Carnarvon Bay on January 4th, 1872. After considerable delay she was got off, and taken back to Liverpool, and repaired; the repairs taking several months. The charterers had chartered her for the purpose of carrying rails that were wanted for the con- struction of a railway at San Francisco; time was important to them, and on the 16th of February, 1872, they chartered another vessel to carry the rails. The jury found that the time for getting the ship off and repairing her " was so long as to put an end, in a commercial sense, to the commercial speculation entered upon by the shipowner and the charterers ; " and on this finding it was held by the Exchequer Chamber, affirming the Common Pleas, that the charterers were entitled to throw up the charter party. Brett, J., in the Court below, said [p) : " These authorities seem to support the proposition, which appears on principle to be very reasonable, that when a contract is made with reference to certain anticipated circumstances, and where, without any default of either party, it becomes wholly inapplicable to or impossible of applica- tion to any such circumstances, it ceases to have ani/ application, it cannot be applied to other circumstances which could not have been in the contemplation of the parties when the contract was made." Keating, J., agreed with this; but Bovill, 0. J., took a different view, and considered that the charterers remained bound notwithstanding the delay. In the Exoh. Chamber, Cleasby, B., agreed with BovDl, C. J. ; but the majority of the Court (Bramwell and Amphlett, BB., Blackburn, Mellor, and Lush, JJ.) took the other view, and affirmed the judgment. Bramwell, B., delivered the judgment of the majority, and in the course of it he said (q) : " The question turns on the construction and effect of the charter. By it the vessel is to sail to Newport with all possible despatch, perils of the seas excepted. It is said that this constitutes the only agreement as to time, and, provided all possible despatch is used, it matters not when she arrives at Newport. I am of a different opinion. {p) L. R., 8 C. P. p. 581. (y) L. R., 10 0. P. pp. 142, US. DISSOLUTION OF THE CONTKACT. 263 If this charter party be read as a charter for a definite voyage or Sect. 232. adventure, then it follows that there is necessarily an implied con- dition that the ship shall arrive at Newport in time for it. Thus, if a ship was chartered to go from Newport to St. Michael's in terms in time for the fruit season, and take coals out, and hring fruit home, it would follow, notwithstanding the opinion expressed in Touteng v. Huhhard (r), on which I will remark afterwards, that if she did not get to Newport in time to get to St. Michael's for the fruit season, the charterer would not be bound to load at Newport, though she had ,used all possible despatch to get there, and though there was an exception of perils of the seas. The two stipulations, to use all possible despatch, and to arrive in time for the voyage, are not repugnant ; nor is either superfluous or useless. The shipowner, in the case put, expressly agrees to use all possible despatch : that is not a condition precedent ; the sole remedy for and right consequent on the breach of it is an action. He also impliedly agrees that the ship shall arrive in time for the voyage: that is a condition precedent as well as an agreement: and its non-performance not only gives the charterer a cause of action, but also releases him. Of course, if these stipulations, owing to excepted perils, are not performed, there is no cause of action, but there is the same release of the charterer That reasoning also applies to the present ease. If the charter be read as for a voyage or adventure, not precisely defined by time or otherwise, but still for a particular voyage, arrival at Newport in time for it is necessarily a condition precedent " (s). On the other hand, in Hudson v. Hill {t), a ship had been chartered to proceed forthwith to Barbadoes, " being allowed to take in cargo of coals to a port outwards for owner's benefit, or to the Brazils, and as ordered load afloat a full and complete cargo of sugar or other lawful merchandize." The charter party was dated December 28th, 1870. The vessel took out a cargo of coals to Eio in Brazil, and proceeded thence to Barbadoes. Owing to adverse weather and other circumstances for which the owner was not responsible, she did not reach Barbadoes until July 28th. The season there for exporting sugar lasts from April to July, and on July 28th all the crop had been exported. The charterers' agents, therefore, refused to load the vessel, but offered to give her a cargo (r) 3 B. & P. 291. Q. B. 404. (») Of. Geipel v. Smith, L. R., 7 W 43 L. J., C. P. 273. 264 THE VOYAGE. Sect. 232. of sugar at St. Vincent, ninety miles ofE. This the captain declined, unless he received an indemnity, which was not given. In an action against the charterers for not loading, the jury found that the delay did not put an end in a commercial sense to the commercial speculations entered upon by the shipowners and the charterers; hut that it was greater than either party could have contemplated when entering into the charter party. Held, that the shipowner was entitled to judgment. Brett, J., said (u) : " When the delay is so long as to frustrate the mercantile adventure as at first contemplated by both parties, the original contract is determined and cannot he enforced. In the present case the mercantile adventure on the part of the charterers was to send a cargo of sugar from Barbadoes to England during the proper season, but the adventure on the part of the owners of the ship was that she should earn freight. The mere failure of the vessel to arrive in time to carry out the charterers' intention did not frustrate her owners' purpose in entering upon the contract of affreightment. They were not bound to recognize the charterers' object. It was no part of the owners' intention that their ship should be loaded at a profit to the charterers, and, there-" fore, the contract remains in force, although no profit from putting a cargo on board can accrue to the charterers." Shipowner 233. If the delay in reaching the port of loading has frustrated charged if not the adventure, and this has occurred from causes for which the for^the ^deLv ^^ipo"'™®^' ^ ^°^ responsible, then he, as well as the charterer, may decline to perform the charter party any further. The reasons for allowing the contract to be dissolved, under the new conditions, apply to both parties (x). And where circumstances have arisen which show that, without any default of the parties, the contract cannot be carried out as contemplated within a reasonable time, the shipowner is excused from going to the port of loading at aU. In Geipel v. Smith (y), a British ship was chartered to load a cargo of coals in England to be carried to Hamburg ; restraints of princes and rulers excepted. Before anything had been done, Hamburg was blockaded by the French, at war with Germany ; England remaining neutral. The shipowner refused to take a (m) 43 L. J., 0. p. at p. 279. per BramweU, B., L. E., 10 0. P. p. (x) Jackson v. Union Marine Ins. Co., 144. per Brett, J., L. E., 8 0, P. p. 578 ; (y) L. E., 7 Q. b, 404, DISSOLUTION OF THE CONTKACT. 265 cargo on board ; and to an action by the charterer, he pleaded that Sect. 233. the charter party could not have been carried out and fulfilled within a reasonable time in that behalf, except by running the blockade. It was held that this was a sufficient defence. For the blockade, being assumed to be effective, was within the exception of restraints of princes ; and " the effect of such a state of things as an effective blockade of the port of discharge is not merely to excuse delay in the carrying out of the contract, but that, after a reasonable time, it relieves the parties, the contract being altogether executory, from the performance of it. . The object of each of them was a carrying out of a commercial speculation within a reasonable time ; and if restraint of princes intervened, and lasted so long as to make this impossible, each had a right to say, ' Our contract cannot be carried out ' ; and, there- fore, the shipowner had a right to sail away, and the charterer to sell his cargo or refrain from procuring one, and to treat the contract as at an end" (z). The contract was one entire contract; and as there was an obstacle to the complete performance of it, the shipowner was not bound to perform that part which, though possible, was by itseM useless (a). Further, a plea of the blockade was sufficient. Lush, J., said, " I think the fifth plea may also be treated as valid. It alleges the breaking out of a war between France and Germany, and a blockade of the port of Hamburg. If the impediment had been in its nature temporary I should have thought the plea bad ; but a state of war must be presumed to be likely to continue so long, and so to disturb the commerce of merchants, as to defeat and destroy the object of a commercial adventure like this " (J). The declaration there showed that " restraints of princes and rulers " was excepted in the charter party. Whether the decision of the Court would have been the same had there been no such exception does not appear. The question in such a case would be, whether the shipowner has been excused by a change of cir- cumstances, not provided against by the charter party, but which has happened before the loading, and is such as to frustrate the intended adventure. (is) PerBlaoktum, J., L. R., 7 Q. B. (S) Cf. Medeiros ». HiU, 8 Biiig. 231, pp. 412, 413. where the charter party was made after (a) Per Cockbnm, C. J., at p. 411. notice of the blockade. 266 THE VOYAGE, Sect. 234. 234. In the following case the contract, was for a series of Contract for Voyages, and it was held that an unexpected delay in the earlier Toyaff?s°* voyages did not excuse the shipowner from completing the re- mainder. A charter party provided, " That this charter shall he in force for six successive voyages, and that they shall be made not later than the last day of February, 1853." To an action for not making more than three voyages, the owner pleaded that during those voyages he sustained damage, by excepted perils, which could not be repaired by the last day of February, 1853. It was held that this did not excuse him from performing the six voyages. " There is an absolute contract to perform six voyages, and an undertaking that the party wUl use due diligence to perform them within the time specified" (c). Owner dis- 235. A refusal by the charterer to load in the agreed manner refnlatofoad "^^^^ excuse the shipowner from proceeding to the port of loading. at the agreed ^^^ when the charterer breaks his contract in this way on one of place. _ _ an agreed series of voyages, that may entitle the shipowner to treat the whole as at an end. In Bradford v. Williams {d), a vessel was chartered, in May, 1871, to carry cargoes of coal from Bullo to Highbridge or DunbaU, until the end of March, 1872. " Vessel to load with GoUop & Co., or Gould & Co., till end of September, with captain's option; after September at Gould & Co." The ship made several voyages under the charter party, until September, 1871. To an action by the charterer for not sending the ship to load after the commencement of September, the owner pleaded that the captain had elected to load from Gollop & Co., and that the plaintiffs were not ready, and had refused to load there during September or at any subsequent time. It was held on demurrer that this was a good defence. The refusal to load at Gollop & Co. not only excused the shipowner from sending the ship during September, but also entitled him to treat the charter party as at an end altogether. " The contract was for the continuous employment of the ship, and the defendant, owing to the plaintiff's refusal to perform what was in my judgment a material part of the bargain, was unable to go on as he expected earning his freight" (e). Express 236. The following are eases of express agreements for the cancel- to oanoef * lation of the contract in particular events. In Avery v. Bowden (/) , (c) Pope V. Savidge, 10 Ex. 73, per {«) Per Martin, B., at p. 261. Martin, B. (/) 25 L. J., Q. B. 49; 26 L. J., [d) L. E., 7 Ex. 259. Q. B. 3. DISSOLUTION OF THE CONTRACT. 267 a ship was oliartered. to proceed in ballast to Constantinople, and Sect. 236. thence to Odessa and load ; hut it was stipulated that " in case of charter party war having commenced previous to and continuing on the ship's ^^ certain arrival at Constantinople " the charterer should load her at that port at a lower freight. After the charter was made, and before the ship's arrival at Constantinople, war broke out between Russia and Turkey : subsequently to her arrival war broke out between Russia and England. And the question was as to the meaning of " war" in the above clause. It was held that it meant such a war as would render the voyage of an English ship from Constantinople to Odessa unlawful, and did not comprise war between Russia and Turkey. The charterer was therefore not bound to load at Constantinople. In Adamson v. The Newcastle Steamship Freight Insurance Co. {g), a ship had been chartered to proceed from Grenoa, whither she went on an intermediate voyage, to Gralatz for orders, and to load a cargo of grain either there or at Braila or IsmaHa. The charter provided that, " in the event of war, blockade, or prohibi- tion of export preventing loading," the charter party should be cancelled. Before the ship reached Genoa, the loading ports were all closed by Russia, which was then at war with Turkey. The charterer was requested to cancel the charter party, but he refused, and the ship was therefore sent on towards Gralatz in ballast ; but on reaching Constantinople, as the ports were still closed, she took a homeward cargo at a less freight. The shipowners claimed for loss of freight under a policy of insurance, and the question was whether the charter party had come to an end before the ship left Genoa. It was held by Cockburn, C. J., and Manisty, J., that the act of closing the ports by the Russian Government was a "prohibition of export preventing loading," within the meaning of the charter party ; and that upon that event the charter party came to an end, without any election by either party. On the other hand. Lush, J., did not think that the parties intended to place themselves in that position. He read the clause to mean that in the stated events it was to be cancelled " at the option of either of the parties : and thus, that it would remain in force until one of the parties elected to avoid it ; but it would be optional to either of them to put an end to it upon the happening of either of (y) 4 Q. B. D. 462. 268 THE VOYAGE. Sect. 236. the specified events, provided he did so within a reasonable time, and before the other party had altered his position upon the faith of his having waived it " ih). In Soames v. Lonergan (»), the ship St. Patrick was chartered to bring a homeward cargo from Gnayaquil, but the charter party was to be void " in the event of non-arrival " of another ship (The Grant), which was then on an outward voyage. The intention was that The St. Patrick should bring home the proceeds of the cargo of The Grant. The charter provided that The St. Patrick should lie to receive and discharge the cargo 120 running days in the whole, and twenty days on demurrage. It was held that the condition meant that the charter party was to be void unless The Grant arrived within such a time as to answer the purposes of the adventure. And that no action lay against the charterer for not loading, The Grant not having arrived until long after the expiring of the lay days of The St. Patrick, and after The St. Patrick had sailed away. Charter party 237. The contract is dissolved if performance of it becomes dissolved on . . , - becoming illegal ; it ceases to be valid, and the parties to it are discharged. ^^_ ™^ If it was niegal in the first instance, for example as infringing the revenue or navigation (/c) laws, or as a trading with an enemy, it cannot be enforced by either party; even though he may have done his part [1). Such a charter party is void, and without legal effect. But the contract may have been lawful originally, and yet its performance may have become unlawful by a subsequent act of the government : as, by an order prohibiting the trade ; or by an outbreak of war with the country to which the ship belongs, or from which the intended cargo is to be procured and shipped. Where this happens before a cargo has been put on board, the contract is dissolved. " That no contract can properly be carried into effect which was originally made contrary to the provisions of law ; or which being made consistently with the rules of law at the time, has become illegal in virtue of some subsequent law ; are propositions which admit of no doubt. Neither can it be questioned that if, from a change in the political relations and circumstances of this country, (A) Per Lush, J., 4 Q. B. D. at p. (Jc) Cunard^.Hyde, 29L. J., Q. B. 6; 468. Blanok v. Solly, IB. Moore, 631. (i) 2 B. & C. 664, (Z) Mnller v. Gemon, 3 Taun. 394. DISSOLUTION OF THE CONTEACT. 269 witli reference to any other contracts which were fairly and Sect. 237. lawfully made at the time, they have become incapable of being any longer carried into efEect without derogating from the clear public duty which a British subject owes to his Sovereign, and the State of which he is a member, the non-performance of a contract in a state so circumstanced is not only excusable, but a matter of peremptory duty and obligation on the part of the subject " (w). And in Barker v. Hodgson («), Lord EUenborough said: "If indeed, the performance of this covenant had been rendered unlawful by the government of this country, the contract would have been dissolved on both sides, and this defendant, inasmuch as he had thus been compelled to abandon his contract, would have been excused for the non-performance of it, and not liable to damages." In Esposito «. Bowden (o), a ship had been chartered to load a cargo of wheat at Odessa, but before she arrived there war was declared between England and Russia. To an action for not loading the charterer pleaded that he was a British subject, and that owing to the war it became impossible for him to perform the contract without dealing and trading with the Queen's enemies. This was held to be a good defence ; for the declaration of war rendered commercial intercourse with the inhabitants of the enemy's country illegal, unless with the licence of the Crown ; and • its effect, therefore, was to dissolve the charter party, and absolve both parties from further performance of it. Also, it was held that this efEect was not altered by the fact that, after the declaration of war had been made, an Order in Council was made, that British subjects might trade with all ports which were not blockaded. 238. The contract may be dissolved by a declaration of war. Effect of war although the vessel may have been lying at the loading port, ready ^„ntry^of for cargo, for some time before the declaration was made. Thus, a ^^^^s- charterer was excused for not loading where war was declared after the vessel had arrived, but before the lay days had expired (p). And even where the cargo has been loaded on board, if the (m) PerLordEllenboroughmAtkinBon (o) 24 L. J., Q. B. 210; 27 L. J., V. Ritchie, 10 East, p. 534. Q. b. 17. (n) 3 M. & S. 267, p. 270. And see BaUey v. De Orespigny, L. E., 4 Q. B. (^) ^^^"^ "• ^°^i^^, 25 L. J., Q. B. 180 ; Touteng v. Hubbard, 3 B. & P. 49 ; 26 L. J., Q. B. 3 ; Eeid f.Hoskins, 291. 25 L. J., Q. B. 55 ; 26 L. J., Q. B. 6. 270 THE VOYAGE. Sect. 238. carriage of it to its agreed destiaation afterwards becomes illegal, it seems that the contract is dissolved, and that the cargo should he relanded {q). The rule is thus stated in Abbott on Shipping {r) : "If, therefore, before the commencement of a voyage, war or hostilities should take place between the State to which the ship or cargo belongs, and that to which they are destined, or commerce between them be wholly prohibited, the contract for conveyance is at an end (s), the merchant must unlade his goods, and the owners find another employment for their ship. And probably the same principles would apply to the same events happening after the commencement and before the completion of the voyage, although a different rule is laid down in this case by the French Ordinance {t), as I have before observed. But if war or hostilities break out between the place to which the ship or cargo belongs, and any other nation, to which they are not destined ; although the performance of the contract is thereby rendered more hazardous, yet is not the contract itself dissolved, and each of the parties must submit to the extraordinary peril, unless they mutually agree to abandon the adventure." War of the 239. The rule that war with the country where the cargo is country to , which ship to be loaded puts an end to the contract, applies when war has eongs. hroken out between the country to which the ship belongs, and that to which she is to go under the charter party ; though the charterer may be a neutral. " This is not an unequal law, because if war had broken out between the Czar and the King of the Two Sicilies instead of her Majesty, the vessel would, according to the principle stated above, have been absolved from going to Odessa, and might forthwith have proceeded upon another voyage" (m). Performance of the contract by the ship in such a case would be illegal according to the law of her own country. And where a cargo has been shipped in a foreign ship, and war has broken out between the country to which she belongs and the country of the port of discharge, the neutral owner of the goods cannot complain of her not going there. " It appears to their Lordships, however, that when an English merchant ships [q] See The Hoop, 1 C. Eob. 196, Art. 276. p. 216. (*) Llv. 3, tit. 3, Fret, Art. 15 ; Code (r) 5th ed. p. 427 ; 13th ed. p. 754. de Comm. Art. 299. («) French Ordin. liv. 3, tit. 1, des {«) Per Willes, J., Esposito v. Bow- Oharte-parties, Art. 7 ; Code de Comm. den, 27 L. J., Q. B. 16, p. 25. DISSOLUTION OF THE CONTRACT. 271 goods on toard a foreign ship, he cannot expect that the master Sect. 839 . will act in any respect differently towards his cargo than he would towards a cargo shipped by one of his own country, and that it cannot he contended that the master is deprived of the right of taking reasonable and prudent steps for the preservation of his ship, because from the accident of the cargo not belonging to his own nation, the cargo is not exposed to the same danger as the ship" (»). 240. Where goods have been loaded and partly carried on "Where car- the agreed voyage, though the exact performance of the contract performed.'' may become legally impossible, it wiU not be regarded as com- pletely at an end, if it can by any reasonable construction be treated as still capable of being performed in substance. Thus, where a Prussian vessel, carrying goods under charter, had been ordered to discharge at Dunkirk, and it became impossible for her to do so, because war broke out between France and Grermany, it was held in the Privy Council, that the contract was not dissolved, and that the shipowner might still hold the goods at Dover, where he had taken the ship, for the freight which would have been pay- able under the charter party had she been ordered to that port {y) . MeUish, L. J., delivering the judgment, said : " There is no authority on the proper construction of the charter party in this respect, but their Lordships are of opinion, that they ought not to hold that the contract between the parties has become impossible of performance, and is, therefore, to be treated "as dissolved, if by any reasonable construction it can be treated as still capable, in substance, of being performed. Although it is true that the Court ought not to make a contract for the parties which they have not made themselves, yet a mercantile contract, which is usually expressed shortly, and leaves much to be understood, ought to be construed fairly and liberally for the purpose of carrying out the object of the parties ; and it would seem very unjust to hold, because the consignee has named a port at which, without any fault on the part of the shipowner, it is impossible for the cargo to be delivered, that, therefore, the consignee is entitled to the possession of the cargo at the nearest neighbouring port, which, in a charter party framed like this, must necessarily be one of the {x) Per MeUish, L. J. , The Teutonia, Of. per Lord Watson, in Dahl v. Nelson, L. E., 4 P. C. 171, p. 180. 6 A. C. 38, at p. 62; and per Lord (j^) The Teutonia, L. E., 4 P. C. 171. Blackburn at p. 53. 272 THE VOYAGE. EfBeot given to charter party wliere legally possible. Sect. 240. ports named in the charter party, without paying for the cargo any freight whatever. The ship, without any breach of contract on the part of the shipowner, has arrived at Dover ; the consignee has required the master to deliver him the cargo there, and he has not required the master to proceed to any other port except Dunkirk, where it was impossible for him to go. The charter party provides what freight is to be paid if the cargo is delivered at Dover, and how it is to be paid ; and, therefore, it appears to their Lordships, that they ought to hold that the contract was not dissolved by the impossibility of delivering the cargo at Dunkirk, and that the ship- owner had not lost his chartered freight, nor his lien for it, at the time when the cargo was demanded at Dover" (z). 241. And where the contract can be carried out in a legal man- ner, though not that exactly which was intended by the parties, it will be taken to be valid, as a contract to be performed in the lawful manner, unless there was a real intention to break the law. Thus, a charter party was made in France, under which the ship was to carry a cargo of pressed hay to London, to be taken there from alongside the ship ; the master was told by the charterer's agent that the consignees would require the hay to be delivered to them at a particular wharf, and the master promised to proceed thither. But before thfe charter party, though unknown to the parties, an Order in Council had been made under the Contagious Diseases (Animals) Act, 1869, forbidding the landing in Great Britain of any hay brought from France. The hay could not therefore be landed ; but, after a considerable delay, the charterer received the cargo from alongside the ship into another vessel and exported it, there being no legal objection to that being done. The shipowner was held entitled to compensation for the delay under the charter party (a). " "When it turned out that the defendant had named a place for the performance of the contract where the performance was im- possible, because illegal, that did not put an end to the contract, if the performance in any other way was legal and practicable . . We quite agree that, when a contract is to do a thing which cannot be performed without a violation of the law it is void, whether the parties know the law or not. But we think that, in order to avoid («) Cf . per Lord Kansfield in Christy V. Eo-w, 1 Taun. 300, p. 314. («) Waugh V. Morris, L. R., 8 Q. B. 202. See Cargo ex Argoe, L. R., 5 P. C. 134. DISSOLUTION OF THE CONTRACT. 273 a oontraot which can be legally performed, on the ground that Sect. S4l. there was an intention to perform it in an illegal manner, it is necessary to show that there was the wicked intention to break the law; and if this be so, the knowledge of what the law is becomes of great importance." 242. If the voyage is only temporarily restrained, the contract Temporary is not dissolved. In Hadley v. Clarke (6) goods were shipped at voyage. Liverpool to be carried to Leghorn, the dangers of the seas only excepted. The ship sailed to Falmouth to join convoy for the voyage, and arrived there on June 30th, 1796. While waiting there an embargo was laid, by order of the King in Council, on all ships bound to Leghorn, and the vessel was, therefore, prevented from proceeding. She waited at Falmouth for more than two years, until August, 1798, and then returned to Liverpool and relanded the cargo. The shippers sued the shipowner for not performing his contract. The embargo was, in fact, taken off in October, 1798. It was held that the shipowner was liable. For though the embargo was a legal interruption of the voyage, it was only a temporary restraint, and did not put an end to the contract (c). In The Isabella Jacobina (d), a cargo of pilchards had been shipped on a Swedish vessel at Eadstow, for Yenice, under a charter party.. The vessel had proceeded a few days on her voyage, but had met with bad weather and become leaky, and put back to Falmouth. There she was detained under an embargo placed upon {i) 8 T. R. 259. at Falmouth or immediately after she («) Lord Kenyon said: "It is ad- sailed for Liverpool? It ■would afford mitted that an embargo heing imposed an argament against the defendants during the war -was a legal interruption in this particular case that they kept of the voyage ; but it would be attended the goods on board during all this with the most mischievous consequences time and thought they were bound by if a temporary embargo were to put an this oontraot. However, I do not end to such a contract as this : because, decide this case on that ground, but on if it were to have that effect, it might the general ground that a temporary also have the effect of putting an end to interruption of a voyage by an embargo all contracts for freight and for wages. does not put an end to such a contract The difSoulty in this case is to draw the as this. If this contract were put an end line; the defendants contracted with the to, it might equally be said that inter- plaintiff to carry his goods to Leghorn ; ruptiona to a voyage from other causes that contract was certainly obligatory at would also have put an end to it, e.g., the time when it was made, and it must a ship being driven out of her course ; continue to be binding unless it has and yet that was never pretended." since been put an end to. Then, at See also Beale v. Thompson, in error, what time was it put an end to ? Was i East, 540. It put an end to during the ship's stay {S) 4 0. Rob. 77. C. — C. T 274 THE VOYAGE. Sect. 248. Swedisli ships. The cargo, owing to its nature, could not wait ^~~ until the embargo might he taken off, and was, therefore, un- shipped and given up to its owners. It was held in the Admiralty Court that no freight was payable ; Falmouth being " so much in the neighbourhood of Eadstow that it may be taken as the port of departure ; " but that if any expenses had been incurred by the ship on account of the cargo they must be paid. Capture and Where a vessel has been captured and afterwards recaptured, or recap ure. lijjerated, the better opinion seems to be that the contract has not necessarily been dissolved (e) ; even where the captured vessel has been condemned, and the condemnation only set aside on appeal (/). But where the cargo has been discharged from the ship under the order of the Court, that has been considered to put an end to the contract {g) . EfEeot of war 243. Contracts may be dissolved by the outbreak of war, owing subjects with to the rule that a trading by a subject with an enemy, except under enemy. licence of the government, is illegal, and subjects the property to confiscation (A). That rule is a strict one with regard to subjects domiciled in this country, or in the colonies ; though it is relaxed as to British subjects domiciled in a neutral country (i). Lord Stowell, in the great case of The Hoop {k), said : " The cases which I have produced prove that the rule has been rigidly enforced : — Where Acts of Parliament have on different occasions been made to relax the navigation law and other Revenue Acts ; where the government has authorized, under the sanction of an Act of Parliament, a homeward trade from the enemy's possessions, but has not specifically protected an outward fa-ade to the same, though intimately connected with that homeward trade, and almost neces- sary to its existence : that it has been enforced where strong claims, not merely of convenience but of necessity, excused it on behalf of the individual ; that it has been enforced where cargoes have been laden before the war, but where the parties have not {e) Moorsom v. Greaves, 2 Camp. The Hoffnung, 6 C. Bob. 231. But 627 ; per Lord Alvanley, in Beale v. see The Newport, Swab. 336, p. 340. Thompson, in C. P., 3 B. & P. 405, p. (h) The Hoop, 1 C. Rob. 196 ; Potts 430 ; The Racehorse, 3 C. Rob. 101 ; v. Bell, 8 T. R. 548. Bergstrom v. Mills, 3 Esp. 36 ; Macl. (i) Bell v. Reid, 1 M. & S. 726. As 491 ; Ang. Carr. s. 401 ; Pars. Sh. I. to who are subjects, and who enemies; 336. Of. Curling v. Long, 1 B. & P. and as to what is trading, and the ^^*- effect of licences, see the notes to The (/) The Newport, Swab. 336. Hoop in Tudor's Leading Cases, 921. is) The Martha, 3 C. Rob. 106 ; {k) 1 C. Rob. 196, p 216 DISSOLUTION OF THE CONTRACT. 275 iised all possible diligence to countermand the voyage after the Sect. 243. first notice of hostilities ; and that it has been enforced not only against the subjects of the Crown, but likewise against those of its allies in the war, upon the supposition that the rule was founded on a strong and universal principle, which allied states in war had a right to notice and apply mutually to each other's subjects." If the ship is British, and the loading is to take place at the port of an enemy, the contract is dissolved whether the charterers are British subjects or not (l) . And if the charterers are British subjects, it is dissolved, although the ship may be a neutral. Willes, J., delivering the judgment of the Exchequer Chamber in Esposito v. Bowden (m), said : " We entirely concur in the decision of Eeid v. Hoskins, and in the reasons advanced in the argument, either of which, however, would, in our opinion, have been sufficient. The fact that it was the duty of the master in that case to leave Odessa, and that he could not have received a cargo without dealing and trading with the enemy, was a sufficient ground for the decision that his owners could not recover against the charterers for not loading a cargo which he could not lawfully have received. But that was not the only reason stated in the judgment by which it could have been supported. The argument, 'which was again urged in this case, that apart from any considera- tions affecting the shipowner only, the defence was valid by reason of the law also forbidding a charterer to load a cargo, and, as a consequence of that prohibition, dissolving the charter party, and absolving both parties from further performance, remains to be considered. In order to escape the application of this latter argu- ment, founded upon the principles above stated, it is necessary for the shipowner to establish that the plea of the charterer can- not be true, in alleging an impossibility of performance without dealing and trading with the enemy ; or, in other words, that the charterer could, but for some default of his own, and not- withstanding the war, have fulfilled his contract in a lawful manner. We proceed to consider the argument advanced for that purpose. In the first place, it is said that the contract admitted of being fulfilled after the war by pui-chasing the cargo from her Majesty's subjects or those of her allies at Odessa, who may have had wheat, seed, or other grain which they were willing to dispose of, and may have been about to leave the enemy's country, and it (?) Eeid V. Hoskins, 24 L. J., Q. B. 315. {m) 27 L. J., Q. B. 17. t2 276 THE VOYAGE. Sect. 343. is assumed that the charterer might lawfully have purchased the cargo from such persons, and lawfully have shipped it when so purchased. Assuming, for argument sake, that this conclusion is correct in point of law, which, independently of express authority, we should have doubted, inasmuch as persons inhabiting an enemy's country are prim& facie enemies (The Berners (w) ) — and even the Queen's subjects become absolutely enemies if they remain and trade in the enemy's country" after they know the breaking out of war (O'Mealy v. Wilson (o))— still it should seem a harsh and inequitable position that the charterer, who, by no wrongful act or default of his own, but by the unquestionably rightful act of his Sovereign in declaring war m. the exercise of her undoubted prerogative against a public enemy, should be reduced to the necessity of seeking out at his peril, in an enemy's country, persons who had themselves acquired the goods before war, and were possessed of them under circumstances which established a right to remove them from an enemy's country without a licence. What if it had happened that there were no British or French subjects in the enemy's country having such property in their possession to sell, or if there were, that the charterer had purchased from one professing at the time of the sale that he was about to depart, but who afterwards remained, so as to acquire the character of an alien* enemy? Without, however, resorting to that supposition, it is enough to refer to Potts v. BeU, already cited, where it was expressly held, that goods purchased in the enemy's country since the war, though not from enemies, could not without a licence be lawfully shipped from an enemy's port, even iu a neutral vessel. Moreover, it is not correct to say that the charterer, even i£ he could have succeeded in lawfully acquiring the goods, could have lawfully shipped them, if doing so involved dealing or trading with the enemy. It is more than likely that the cargo could not have been put on board without passing through the enemy's custom-house and paying export duties. The passing it through the custom-house and obtaining a Eussian permit for its shipment might have been but a slight case, stiU it would have been dealing with the enemy. The payment of export duties would have supplied him directly with the means of carrying on the war. If it were proved to be necessary in point of fact, it would sustain the defence raised by the plea. . . . in) 1 Rob. 204. (o) 1 Camp. 482. DISSOLUTION OP THE CONTRACT. 277 " We are of opinion that for a British subject not domiciled in a Sect. S43. neutral country, which the defendant cannot be presumed to be, to ship a cargo from an enemy's port, even in a neutral vessel, without licence, is an act, prima facie, and under all ordinary circumstances, of dealing and trading with the enemy, and therefore forbidden by law ; that it lies on the person alleging it to be legal to establish the fact ; and that, in the absence of proof that it would be legal, neither a British subject nor alien friend can found any action upon the fact of its not haviug been performed." 244. When a foreign war is being carried on, the trade of Effect of a neutrals with the belligerents is hampered by two restrictions, on British They are not at liberty to give help to one of the belligerent States ^^^ ^ ^' by conveying to it certain classes of goods which will assist it in the war j these ai-e termed emitraband {p) ; nor are they at liberty to trade with ports of one belligerent State which have been blockaded by the other (q). These restrictions are imposed by the established usage and recognition of nations, and are enforced by the rights of visitation and search of neutral vessels, and of capture and condemnation when they transgress, which also are allowed by international usage. But though neutral States recognize these restrictions upon the actions of their subjects, and acquiesce in the condemnations which follow upon breaches of them, it does not necessarily follow that those breaches are illegal in the view of the law of the neutral State; nor that the tribunals will decline to enforce contracts which have been made with the object of breaking through those restrictions, as by carrying contraband goods, or running blockades. 245. Thus, in Ex parte Chavasse, In re Grazebrook (r), it was Contracts for held by Lord Westbury, that it was not illegal for neutrals to traband." ^' trade iu contraband of war with a belligerent, and that a contract made with that object was vaM. He said, " In the view of inter- national law, the commerce of nations is perfectly free and un- restricted. The subjects of each nation have a right to interchange {p) As to what are contraband goods ; Tudor's Leading Cases, 981. the Toyages upon which they are (?) As to blockades, and violations of seizable ; and the rights of belligerents blockade, see the notes to The Frederick to capture or pre-empt them, see the Molke in- Tudor's Leading Cases, 1011. notes to The Jonge Margaretha in (r) 34 L. J., Oh. 17. 278 THE VOYAGE. Sect. 245. the products of labour with, the inhabitants of every other country. If hostilities occur between two nations, and they become bellige- rents, neither belligerent has a right to impose, or to require a neutral government to impose, any restrictions on the commerce of its subjects. The belligerent power certainly acquires certain rights which are given to it by international law. One of these is the right to arrest and capture, when found on the sea, the high road of nations, any munitions of war which are destined and in the act of being transported in a neutral ship to its enemy. This right, which the laws of war give to a beUigerent for his protection, does not involve as a consequence that the act of the neutral subject in so transporting munitions of war to a belligerent country is either a personal offence against the belligerent captor, or an act which gives him any ground of complaint either against the neutral trader personally or against the government of which he is a subject. The title of the belligerent is limited entirely to the right o"f seizing and condemning as lawful prize the contraband articles. He has no right to inflict any punishment on the neutral trader, or to make his act a ground of representation or complaint against the neutral State of which he is a subject. In fact, the act of the neutral trader in transporting munitions of war to the belligerent country is quite lawful, and the act of the other bellige- rent in seizing and appropriating the contraband articles is equally lawful. Their conflicting rights are co-existent, and the right of the one party does not render the act of the other party wrongful " or illegal. There is, however, much incorrectness of expression in some writers on the subject, who, in consequence of this right of the belligerent to seize in transitu munitions of war, while being conveyed by a neutral to his enemy, speak of this act of transport by the neutral as unlawful and prohibited commerce. But this commerce, which was perfectly lawful for the neutral with either belligerent country before the war, is not made by the war unlaw- ful or capable of being prohibited by both or either of the bellige- rents ; and all that international law does is to subject the neutral merchant who transports the contraband of war to the risk of having his ship and cargo captured and condemned by the bellige- rent power for whose enemy the contraband is destined." Contracts to 246. With regard to blockades, also, it is clearly laid down that es. ^ contract made with the object of blockade running is not illegal DISSOLUTION OF THE CONTEACT. 279 in the view of our law ; and that it may be enforced in our Sect. 246. Courts. In The Helen (s), Dr. Lushiagton said : " What is the usage as to hlockade ? There are several conditions to he observed in order to justify the seizure of a ship for breach of blockade ; the blockade must be effectual and (save accidental interruption by weather) constantly enforced ; the neutral vessel must be taken in delicto ; the blockade must be enforced against all nations alike, including the belligerent one. When all the necessary conditions are satisfied, then, by the usage of nations, the belligerent is allowed to capture and condemn neutral vessels without remonstrance from the neutral State. It never has been a part of admitted common usage that such voyages should be deemed illegal by the neutral State, still less that the neutral State should be bound to prevent them ; the belligerent has not a shadow of right to require more than universal usage has given him, and has no pretence to say to the neutral, ' Tou shall help me to enforce my belligerent right by curtailing your own freedom of commerce, and makiag that illegal by your own law which was not so before.' This doctrine is not inconsistent with the maxim that the law of nations is part of the law of the land. The fact is, the law of nations has never declared that a neutral State is bound to impede or diminish its own trade by municipal restriction." In that case the contract in question was between the master and owners of a ship, made with the object of running blockades. In Medeiros v. Hill (t), it was held to be no defence to an action for not taking the agreed cargo, that the port of discharge was blockaded at the time of making the charter party, to the knowledge of the parties, and that the contract was therefore illegal. But there was no evidence there of any intention to break the blockade if it should be found to be in force when the ship arrived ; and stress was laid upon that fact {u). Now, however, it seems to be established that the existence of such an intention would not any the more make the charter party an illegal transaction («). («) L. R., 1 A. & E. 1, at p. 4. 6 0. Rot. 177, at p. 181. ffl 8 Binff 231 ^^' "^^ V^rte Chavasse, Ee Graze- ^' ^' ' brook, 34 L. J., B. 17; The Helen, («) See also Harratt». Wise, 9B. &C. L. E., 1 A. & E. 1 ; Geipel v. Smith, 712 ; Naylor v. Taylor, 9 B. & C. 718 ; L. R., 7 Q. B. 404. Cf. Burton v. and cf. per Sir W. Scott in The Tutela, Pinkerton, L. R., 2 Ex. 310. 280 THE VOYAGE. Sect. 246. Illegality of performance at port of loading does not dissolve contract. Contracts to break foreign revenue laws. The risk of capture involved in blockade running is not an excuse for a non-performance of the contract i£ it was made by the parties with knowledge of what they were doing. "As the blockade had been publicly notified to the government of England, the contracting parties must be taken to have entered into the charter party with an equal knowledge of its existence ; no difficulty, therefore, attending the performance of the contract can be set up as an excuse for its non-performance " (y). 247. As we have seen in the last chapter, a contract is not generally dissolved merely because performance of it will involve a breach of the law of another country. Thus the charterer is not excused from loading by laws of the port of loading which prevent communication with the ship (s), or prohibit the export of the intended cargo (a). And a contract may in some cases be enforced although it was made with the object of breaking the law of a foreign country ; as where a charter party, made with the intention of defeating the Erench revenue laws, was held to be valid, on the ground that " one nation does not take notice of the revenue laws of another" (6). (y) Per Tindal, C. J., Medeiros v. Hill, 8 Bing. 231, p. 235. (a) Barker v. Hodgson, 3 M. & S. 267. Cf. Cunningliam v. Dunn, 3 0. P. r>. 443 ; WHte v. S.S. Wiuohester Co., 23 Sc. L. R. 342. («) BUght V. Page, 3 B. & P. 295, n. ; Kirk V. Gribbs, 26 L. J., Ex. 209; Jacobs V. Credit Lyonnais, 12 Q, B. D. 589. (A) Blanche v. Eletoter, 1 Doug. 251, per Lord Mansfield. See Simeon v. Bazett, 2 M. & S. 94; 6 Taun. 824. Cf . per Lord Denman in Spenoe v. Chad- wick, 16 L. J., Q. B. 313. B. 216. CHAPTER IX. THE LOADING. 281 BEOT. Charterer to provide cargo 248 Ship must receive at usual loading place — Charterer's option where several places — Notice of readi- ness 249 The manner of loading — "Along- side" 250 Commencement of shipowner's re- sponsibility 251 Cargo to be taken from shore " at ship's risk " 251a Charterer must have cargo ready — Usual storing places 232 Kay V. Meld 253 Cargo from agreed place — Known sources of delay 254 Keadiuess of cargo in turn 234a Charterer not excused by impos- sibility 235 Quaere, when cargo is specific . . , , 256 Special exception clauses — ^Usually relate to actual loading only .... 257 Exceptions to charterer's duty to provide cargo 257a Do these relate to charterer's par- ticular cargo P 257b " Accidents " — " Strikes "— " Civil commotion" — "Politioal disturbance," &c 258 "Causes beyond charterer's con- trol" 258a Exceptions do not generally apply to time on demurrage 258b Colliery guarantees — " Colliery working days " 258c Effect of interruption to loading , , 239 SECT. Loading once completed 260 Charterer must load the ship's whole carrying space 261 Not cabins or deck — not ballast — Shipowner may load space not chartered 262 " Merchandise " and " produce " . . 263 Various articles — Charterer's op- tion 264 " Pull and complete cargo " — Custom — BaUast instead of cargo 265 Goods to be prepared as customary. 266 Cost of preparation 267 Bight of charterer to have goods relanded 268 Eight of shipper in general ship . . 269 Ship should wait the agreed time. . 270 Must take a full cargo 271 Unskilful stowage 272 Shipowner bound to stow care- . fully 273 Where charterer appoints steve- dore 274 Indorsee of bill of lading without notice not usually affected 275 Bad stowage through ignorance . , 276 Where charterer ships unsafe cargo 277 Liability of shipper shipping dan- gerous goods without notice .... 278 No warranty of safety where ship- owner has notice 279 Statutes as to dangerous goods. . . . 280 Stowage on deck 281 Statute as to deck timber cargoes. . 282 Statutes as to grain in bulk 283 248. The shipowner is to bring his ship to the agreed port of Charterer to loading, and to the proper place in that port for taking in the ^^°^ e cargo, agreed cargo. That is his undertaking. On the other hand, the charterer undertakes that when she has got to the proper place he 282 THE VOYAGE. Sect. 248. will provide her with a cargo, in accordance with the charter party. That is an absolute undertaking on his part, and it must be performed in the proper manner and without improper delay. As to the time in which the loading ought to be accomplished, and as to when the ship is considered to have arrived, so' that the time begins to run against the charterer, these are questions which will be more conveniently dealt with later («). At present we have to consider what cargo the charterer is to provide ; what excuses a failure in providing it ; and how it is to be delivered to the ship- owner, and received and stowed by him. Ship must 249. The ship must be ready to receive the cargo at the place in usual loading which cargoes of the agreed kind are usually loaded. If there are ^ "®' several usual loading places in the port, and no express agreement has been made on the point, the charterer has, it seems, the option Charterer's of requiring her to load at any one of them (S). But such an ■ sevCTalplaoes. Option ought to be exercised in time to avoid putting the ship to extra expense in moving from one place to another; otherwise, probably, such expenses might be recovered by the shipowner from the charterer (c). Notice of Also the charterer must be informed that the ship is ready for readmesB. . . j. ./ cargo. Where he has received no notice, and has not the means of knowing that the ship is ready, he is not responsible for delay in. commencing the loading (d). Where the contract is express, its terms must, of course, be obeyed. In The Curfew (e) the ship was chartered to load a full cargo, always afloat, in the North Dock, Swansea. But it was agreed that if she was unable to complete the loading at that dock, the charterers were to bear the expense of completing elsewhere. The ship could have completed, always afloat, ui the North Dock ; but had she done so she would have been neaped, and detained several days. The shipowner moved her when partly loaded to another dock. It was held that he must bear the expense of bringing round the rest of the cargo to that place. (a) Infra, Cliap. XVII. 486 ; (1897) 2 Q. B. 485. (S) Pyman v. Dreyfus, 24 Q. B. D. (d) Stanton v. Austin, h. R., 7 C. P. 152 ; The Febx, L. B., 2 A. & E. 273. 651 ; Fairbridge v. Pace, 1 0. & K. 317 ; (c) Ibid. See Brown v. Johnson, per Brett, L. J., in Nelson i). Bahl, 12 Car. & M. 440; of. Carlton Steamship Ch. D. at p. 881. Co. V. Castle, &o. Co., (1898) A. C. («) (1891) P. 131. THE LOADING. 283 250. The maimer in whici. the goods are to be shipped is Sect. 250. ascertained, so far as not expressly agreed upon, by reference to The maimer the usages of the place, and having regard to the regulations ° °* ^' and laws there prevailing (/). The ordinary practice generally determines how, and by whom, the goods are to be taken along- side and put on board. Apart from special agreement, or custom, the shipper must at his own expense bring the goods to the place where the ship is lying. The expense of putting the goods on board and stowing them is then borne by the shipowner {g) . When the contract provides that the cargo is to be brought "Alongside." " alongside " by the charterer, that means, it seems, actually to the side of the ship. It is not sufficient for him to place the goods on the wharf near the ship, and so throw the expense of moving them to the edge of the wharf upon the shipowner (A). And if the loading is done by lighters, the cost of lightering must be paid by the charterer, though the vessel may not be able to lie at the usual loading place (*). In Scrutton v. Childs {K), the printed form on which a charter party was made contained the clause, " to be brought to and taken from alongside at merchant's risk and expense." These words were not struck out; but the clause, " cargo to be loaded at Trinidad as customary," was added in writing. It was customary at Trinidad for shipowners to bear the expense of lighters used in loading; but the master had refused to do so. Held that the written words prevailed, as against the printed clause, and that under them the shipowner must pay the lighterage. But that decision has, in efEeet, been overruled by The Nifa {I). The stipulation that the loading should be " as customary " was not really in conflict with the merchant's obligation to bring the cargo alongside at his own (/) As to Customs regulations in {h) Fletcher v. Gillespie, 3 Bing. 635 ; United Kingdom, see Customs Laws of. Holman v. Dasnieres, 2 Times L. E. Consolidation Act, 1876 (39 & 40 Vict. 607 ; Petersen v. Freebody, (1895) 2 c. 36, ss. 100—126). Q. B. 294; The Nifa, (1892) P. 411. is) Eventhoughtheshipownerbebuy- ^"t ^ee Aktieselkab HeUos v. Ekman, ing the goods from the shipper on f.o.b. (1^97) 2 Q. B. 83 ; Stephens k. Wiu- terms, Glengamock, &c. Co. v. Cooper, tringham, 3 Com. Ca. 169. As to the 22 Sess. Ca. (4th) 672. For an illus- duty to have appUances ready for taking tration of a contract requiring the alongside, see ««/?•«, ss. 618, 619. As to charterer to stow the cargo (timber) on taking " from alongside," infra, o. 463. board, after it has been delivered to the (i) Trindade v. Levy, 2 F. & F. 441. ship, see Baldwins. Sullivan Timber Co., (A) 36 L. T. 212. 142 N. T. 279. (0 (1892) P. 411 ; infra, s. 463. 284 THE VOYAGE. CoTtimence- ment of ship owner's re- sponsibility. Sect. 250. expense ; for " as customary " related only to the manner and place of loading {m). 251. The responsibility of the shipowner for the goods attaches as soon as they are delivered to his servants. Usually the shipper only brings them to the quay at which the vessel is lying, and there delivers them to the mate or other officer in charge of the ship ; and that is sufficient to bind the shipowner («). " But the delivery must be to an officer or person accredited on board the ship, it cannot be delivered to the crew at random ; but the mate is such a recognized officer on board the ship that delivery to him is a good delivery, and the responsibility of the ship attaches if the jury believe that the mate received the goods " (o). And the delivery must be to a person who is acting in the matter on behalf of the shipowner. If they are delivered to the master under a private arrangement with him, the shipowner does not become responsible (p). The subsequent expenses and risks of putting the goods into the ship are generally borne by the shipowner. Subject to any express agreement (g), he must provide the men and tackle to bring them to the ship's side, and to place them on board. And any accidental loss or damage which may happen in doing this will fall upon him unless the contract relieves him of it (r). 251a. The ease of Nottebohn v. Eichter (s) illustrates the position of the shipowner where he has agreed to receive the goods at a distance from the ship. A ship was chartered to proceed to Fecolutla, and there load a cargo of mahogany ; "the cargo to be taken from the bank of the river inside the bar or river shore afloat by the ship's boats and crew at ship's risk and expense." After loading she was to proceed to a port of discharge, " the act of God, &c., always excepted," and deliver the cargo. The mahogany was delivered by the charterers at the river bank, and taken to the ship by her boats. Forty-six logs were lost by perils within the exceptions before they were got on board. The {p) Ang. Carr. s. 146. Supra, s. 68. Cargo to be taken from shore ' ' at ship's risk." {m) See infra, s. 614. («) British Columbia Sawmill Co. v. Nettleship, L. R., 3 C. P. 499 ; Cobban V. Downe, 6 Esp. 41. But see as to claims by indorsees of the bill of lading, Thorman v. Burt, 54 L. T. 349. (o) Per Lord EUenborough, Cobban V. Bowne, 5 Egp. 41. (?) See Fletcher 635. GriEeBpie, 3 Bing. {r) Goff ». Clinkard, cited 1 Wils. 282 ; Abb. (5th) p. 224 ; (llth) iv. 5, 1 ; Pragano v. Long, 4 B. & 0. 219. («) 18 Q. B. D. 63. THE LOADING. 285 question was whether the exceptions of perils applied. It was held Sect. 251a. that they did, and the shipowner was not liable. Lord Esher said : " If it were not for this exceptional clause the shipowner would have nothing to do with the goods during transit from the shore to the ship. Supposing that without such a clause the shipowner, not being under any obligation to carry from the shore to the ship, were to agree with the charterer that he would do so. That would be an independent contract, and would certainly not bring the goods within the charter party. In the present case it is put into the charter party that the shipowner will do it, but he does not undertake that he will take the goods at all risks, but at ship's risk. To my miad, it is clear that this means that he wlU take them at the same risk as the ship would be liable to when the goods were on board. The expression 'at ship's risk' cannot be strictly correct, because the ship has no risk, but I cannot doubt that the meaning is that the shipowner will take the goods, and, when once they are in his possession, treat them as to risks as if they were on board the ship." 252. In the absence of express qualifications, the undertaking of Charterer the charterer to supply a cargo is absolute (t). And further, he cargo ready. undertakes absolutely that the cargo shall be ready at the place at which the loading is agreed to be done. The charter party does not usually deal with the manner in which the charterer is to get the cargo ; it assumes that he has it in readiness at the port. Any difficulty that may arise in bringing it there is outside the contract, and cannot be a matter of excuse in estimating whether proper despatch has been used, unless it is covered by an express stipula- tion (u). But there is sometimes a difficulty in saying where in the port Usual storing the cargo is to be assumed to be ia readiness. Ordinarily the P*"®^- presumption is that it is to be on the quay from which the ship is to be loaded. But where it is necessary that the goods be brought direct from storing places at a distance from the spot at which the loading is done, that being the invariable course of business of the place, it will suffice if the cargo be in readiness at those places («). (i) Per Lord Blackburn, Postlethwaite son, 31 L. J., Ex. 1 ; Elliott v. Lord, 48 V. Freeland, 5 A. C. p. 620. L. T. 542. Cf. Fenwiok v. -Schmalz, {u) Stephens ff. Harris, 57 L. J., Q. B. L. E., 3 0. P. 313. 203; Adams 1). Royal Mail Steam Packet (k) See per Lord Selbome, Grant v. Co., 28 L. J., C. P. 33 ; Kearonv. Pear- Ooverdale, 9 A. C. ilO, p. 477. 286 THE VOYAGE. Sect. 253. In Hudson v. Ede (y), a cargo of grain was to he loaded in a fixed time in the vessel Fria, at Sulinali, at the mouth of the Danuhe. " Detention hy ioe and quarantine not to be reckoned as laying days." It appeared that there were no storehouses for grain at Sulinah itself, and that the course of trade was for the grain to be kept higher up the river, and to be brought down in steam lighters to the ships at Sulinah. The cargo for The Fria was stored at Gralatz, one of the usual storing places ; and it could not be brought down owing to ice in the river between Sulinah and G-alatz, though the port of Sulinah itself was free. Held that the course of trade was the basis of the contract, and that the charterer was not bound to have the cargo in readiness at Sulinah. " The conveyance by the river between Gralatz and the ship at Sulinah may be considered as a part of the act of loading, and as there were no storehouses for grain at Sulinah the case seems to be the same as if the ice lay between the shore, from which, of necessity, the grain must be brought, and the vessel in which it was to be loaded, and so that the parties must have contemplated that portion of the river as a part of the waters through which the cargo was to be conveyed between the shore and the ship, and in which detention by ice was to be provided against and excepted in the charter party." ..." Whenever there was no access to the ship, by reason of ice, from any one of the storing places from which merchandise was conveyed direct to the ship, the exception in the charter party would apply " (z). In AUerton Co. v. Falk (a), a similar question arose in relation to a salt cargo loaded at Birkenhead. By the charter party " neaps " and " stoppage of navigation " were mutually excepted. It appeared that all salt shipped at Liverpool or Birkenhead for exportation came by flats from Winsford or Northwich, by way of the river Weaver and the Mersey. The salt was stored at Wins- ford and Northwich, and never at Birkenhead. There were no storage places at Birkenhead with special provisions for storing salt ; and though it could be brought down by rail the rates were in a commercial sense prohibitive, and it was never so brought. On these facts, Charles, J., held that the charterer was not liable for a delay caused by the neaping of some of the flats which brought the salt from his storehouses at Winsford. (y) L. E.., 2 Q. B. 666 ; L. R., 3 judgment of the Exchequer Ohamher, Q. B. 412. L. B,., 3 Q. B. pp. 4U, 415. (2) Per Kelly, C. B., delivering the («) 6 Asp. M. C. 287. THE LOADING. 287 In Smith v. Eosario Nitrate Co. {b), the cargo was nitrate, to be Sect. 252. loaded at Iquique. It was found that the customary mode of loading there was by sending the nitrate down direct by rail from the mines to the port and the quay, and putting it on board the, vessel as acquired at the mines. A delay in loading caused by civil war in the country, away from the port, which interfered with the working of the railway, was held to be covered by an exception of " political disturbances or impediments." 253. In Kay v. Field (c), an attempt was made to carry this Kay «;. Field, doctrine a good deal further. There a cargo of rail iron was to be loaded in The Cid at Cardiff, East Bute Dock, in the " customary manner," by the agents of the freighters. " Detention by frost, floods, &c. not to be reckoned as lay days." There were two docks at Cardiff, the East Bute Dock and the West Bute Dock, connected by a canal ; and the West Bute Dock was connected by a canal with the Griamorganshire Canal. It appeared that the iron rails shipped at Cardiff were almost entirely manufactured by five or six makers, among whom were Orawshay & Co : and that all these manufacturers, except Crawshay & Co., had wharves or quays in the docks themselves ; while Crawshay & Co. had a wharf on the Griamorganshire Canal, which they had occupied for many years. The iron rails for The Cid were to be supplied by Crawshay & Co., though this had not been known to the shipowner; and the loading was delayed by the freezing of the canal between their wharf and the docks. It was found that no reasonable means could have been adopted to prevent the delay, and that no market- able railway iron could have been obtained from any other source. PoUock, B., held that the charterer was not in default. But his decision was reversed by the Court of Appeal (d). Brett, L. J., said (e) : " The first question is whether this charter party ought to be construed in this case as if the East Bute Dock was the only dock at Cardiff ; that is to say, the port there. I think, according to authority, that the only place to be considered with reference to the loading of the ship is the East Bute Dock, and that one has no right to consider anything with regard to the West Bute Dock or (*) (1894) 1 Q. B. 174; afBrming, (c) 8Q. B. D. 394; 10 Q. B. D. 241. (1893) 2 Q. B. 323. See alsoFumess v. {d) Cf. Kearon v. Pearson, 31 L. J., Forwood, 77 L. T., 95 ; 2 Com. Ca. 223. Ex. 1 ; Eenwiok v. Sohmalz, L. E., 3 But cf. Stephens v. Harris, 67 L. J., 0. P. 313. Q. B. 203 ; infra, B. 257. (e) 10 Q. B. D. 241, at p. 247. 288 THE VOYAGE. Sect. 253. any part of the town of Cardiff. Then if a loading is to be at a particular dock, when can it be considered to commence ? All stipulations as to loading apply, I think, to that place at which it is actually to take place, unless there is something in the charter party to the contrary, and, therefore, in the present case they all apply to the Bast Bute Dock. Whatever is done with the goods or happens to them duriug their conveyance before they get there is no part of the loading." Liadley, L. J., said (/) : "The first part" (of the charter party) " relates to the duty of the shipowner ; he is to send his ship to the East Bute Dock, and there load in the customary manner. This first part does not profess to define the duty of the shippers, and it has no application as to the method of getting the goods to the East Bute Dock ; the goods are supposed to be there, and being there the shippers are to load the ship. The other part of the charter party which relates to the shippers and requires the cargo to be loaded as fast as the vessel can take on board and stow, contains a clause exonerating the shippers in case of detention by frost and the other causes there mentioned. Now we are asked to apply that to a case where the detention by frost has prevented the shippers from getting the cargo to the East Bute Dock. I apprehend we cannot do so, and that according to the true construction of the charter party, the stipulation exonerating the shippers applies only to a detention from the causes there mentioned after the cargo has been brought to the place of loading." Cargo from 254. On the other hand the charterer cannot be assumed to have . agreedplaoe — . i -j. •, • Known source the cargo ready n it is expressly to be provided from a particular ^ ^^" place, and the charter has been made in view of circumstances by which, as the parties know, the procuring of a cargo from that place may be delayed. And if, in such a case, no arrangement is made as to the time in which the loading is to be done, the charterer will be allowed a reasonable time for getting the cargo, having regard to the known sources of delay. That was so held where a cargo of coals was to be loaded from a particular colliery which was known to be temporarily ofE work, owing to an accident to the engine boiler (g). And where the (/) 10 Q. B. D. at p. 249. {ff) Harris v. Bieesman, 23 L. J., Ex. 210. THE LOADING. 289 known source of delay is beyond the charterer's control, lie is Sect. 254. prohaUy not liaUe for an unexpected continuance of it {h). 254a. At some ports, with regard to certain kinds of cargo, e.g., Eeadiness of coal, vessels are not allowed to go into berth until their cargoes are ready for them in such a position as the custom or rule of the place requires. Where that is the case the charterer is in default if, by not having his cargo in readiness, he prevents the ship from getting a berth in the agreed, or usual, course. And he will be liable to . pay for the detention, although it may be agreed that the lay days are to count from the time when the vessel is in berth {i) . On the other hand, it has been held, in the House of Lords, that there is no obligation in such a ease to have the cargo constantly ready, so as to enable the ship to. get a berth, if an opportunity arises, out of her expected turn (It). A cargo of coals was to be loaded at Bo'ness in sixty hours from the time of the vessel (the Eiver Ettrick) being berthed and ready, and notice given. The practice of the port was to load coals at certain berths in turn. A number of vessels were waiting ; but owing to want of cargo for those in turn one of the berths became vacant, and the Eiver Ettrick might have been berthed there on October 21st if her cargo had been ready. It was not ready, and she was not, in consequence, berthed until October 26th. In ordinary turn she could not have been berthed before that day. It was held that no claim could be made. Lord Herschell there said : — " I do not for a moment deny that he (the charterer) is bound to do whatever is reasonable on his part with a view of getting the ship berthed at the earliest period that is reasonably possible ; and it may be that in certain circumstances, owing to the custom of the port, owing to the contingencies of this kind being very, common, owing to the provision that is made to facilitate cargo remaiaing there for a few days, and a variety of other circumstances, it would be the duty of the shipper to be prepared by having his cargo there to enable the vessel to obtain an earlier berthing than would otherwise have been obtaiued. All that, I say, may be the case ; but no such facts are found in the present case" (l). [h) Per Parke, B., ihid. at p. 213. (A) Little v. Stevenson, (1896) A. C. (i) LiUy V. Stevenson, 22 Sess. Oa. 108 ; afarming 22 Sess. Oa. (4th) 796. (4th) 278. « (0 (1896) A. C. at p. 119. c. — c. u 290 THE VOYAGE. Sect. 255. 255. The cliarterer is not, generally, excused from providing a Charterer not Cargo by the fact that it has hecome impossible for him to do so, S^Tsibmty. whether this arises from natural causes or from acts of the govern- ment of the place at which the shipment is to take place. Though, as we have seen, he is excused if the loading has been made un- lawful by the government of this country {m). To an action against a charterer for not loading a full cargo of guano at the Chincha Islands, it was no defence that the government of Peru would not allow more than a limited quantity, less than a full cargo, to be loaded on the ship : there being no allegation that she was not in a proper condition to load a full cargo («). And the same was held where the ship was to load a cargo of barley at Liebau, and the loading was prevented by an order of the Russian Grovernment prohibiting the export of barley (o). So, too, where intercourse with the ship was prohibited by the law of the port in consequence of a pestilence prevailing in the place (p) ; and where the loading was prevented by a refusal of permit at the custom-house, owing to an embargo (q) : unless the authority of these cases is doubtful, having regard to the dicta in Cunningham v. Dunn (r) as to a joint inability to perform the charter party. In HiUs V. Sughrue (s), a shipowner who had undertaken to load at the island of Ichaboe a full and complete cargo of guano, free from dirt and rubbish, by the ship's boats and tackle, and by the labour of the crew, was held liable to the charterer for not doing so, although there was not any guano free from dirt and rubbish to be found on the island. Specific cargo. 256. But where the obligation is to load specific goods, and these goods are destroyed before the time for loading has arrived, with- out fault of the charterer, it may be that his obKgation is at an end (t) ; or if the contract were to load part of a specific crop, or part of the produce of a particular mine, and that crop or mine failed, without default of the charterer, in such a case also he would probably be excused his failure to load (u) . The presumption (m) Supra, sa. 237 et. seq. (s) 15 M. & W. 253. Of. CUfford v. (k) Kirk D. aibbs, 26 L. J., Ex. 209. Watts, L. E., 5 C. P. 577. (o) Blight V. Page, 3 B. & P. 295, u. (i) Taylor v. CaldweU, 32 L. J., Q. B. {p) Barker v. Hodgson, 3 M. & S. 267. 164. (?) Sjoerds v. Lusoombe, 16 East, 201. («) Howell v. Coupland, L. R., 1 Q. B. (r) 3 C. P. D. 443; mpra, ss. 228, 462; 1 Q. B. D. 268. Cf. Ashmore v. 229. Cox, (1899) 1 Q. B. 436. THE LOADING. 29X in such oases is that the parties iiitended their contract to depend Sect. 256. upon the existence of the contemplated subject-matter. " Where, from the nature of the contract, it appears that the parties must from the beginning have known that it could not be fulfilled, unless some particular specified thing continued to exist ; so that when entering into the contract they must have contemplated such continued existence as the foundation of what was to be done ; then, in the absence of any express or implied warranty that the thing shall exist, the contract is not to be construed as a positive contract, but as subject to an implied condition that the parties shall be excused in case, before breach, performance becomes impossible from the perishing of the thing, without default of the contractor" {x). 257. Special clauses are often iaserted to protect the charterer from Special excep- liabUity iu case of delay or prevention of the loading. The ordinary clause of exceptions does not, as we have seen {y), always apply to him. The presumption being that the cargo is, or will be, ready and UsuaUy relate waiting at the proper place from which to take it on board (2), loading only, these clauses protecting the charterer are usually read to apply only to matters which prevent or delay the actual loading ; and not to difficulties ia getting the cargo, or bringing it to the place of loading. Thus, in Kay v. Field (a), the exception " detention by frost, floods, riots, and strikes of workmen, accidents to machinery or quarantine, not to be reckoned lay days," was held not to apply to a detention of the cargo by frost outside the particular dock in which the vessel was to load. In Grant v. Coverdale {b), cargo was to be supplied as fast as the steamer could receive it, and time was to commence from the vessel being ready to load, " except in case of hands striking work, or frosts or floods, or any other unavoidable accidents pre- venting the loading and unloading ; in which case owners to have the option of employing the steamer in some short voyage trade until receipt of written notice fi-om charterers that they are ready to resume employment without delay to the ship "(c). It was (a;) Per Blackburn, J., in Taylor i). (J) 9 A. C. 470 ; afBrming 11 Q. B. CaldweU, 32 L. J., Q. B. at p. 166. p. 543. ,s c ' \r^' {») The clause was a printed one. See («) Supra, 8. 252. ^ ' ^ {») 10 Q. B. D. 241, cited supra, <^e observation of Lord Selborne upon s. 263. Cf. Hudson «;. Ede, supra, s. 252. this, 9 A. C. at p. 474. u2 292 THE VOYAGE. Sect. 257. held that this did not excuse delay, caused by frost, in bringing" the cargo to the agreed loading dock. " It would appear to me to be unreasonable to suppose, unless the words make it perfectly clear, that the shipowner has contracted that his ship may be detained for an unlimited time on account of impediments, whatever their nature may be, to those things with which he has nothing whatever to do, which precede altogether the whole operation of loading, which are no part whatever of it, but which belong to that which is exclusively the charterer's busi- ness " id). In Stephens v. Harris (e), a cargo of iron ore was to be loaded at Bilbao, at the rate of 400 tons per working day, " weather permitting, no demurrage to be paid the vessel in case of any hands striking work, frosts or floods, &c., which may hinder the loadiug or discharge of the said vessel." It appeared that on the river at Bilbao there are several wharves where ships load from spouts. These wharves are connected by railways with places of deposit for the ore some miles away. There were no places of deposit at the wharves. It further appeared that ships are also loaded out in the river, from lighters which bring the ore from other places of deposit up the river. The ship was loaded at one of the wharves, and the loading had been delayed by bad weather, and other causes, which hindered the railway transit from the places of deposit. It was held by the Court of Appeal that, assuming these causes to be within the terms of the exception, still the charterer was not relieved from paying for the delay. For the transit by railway was not part of the loading within the meaning of the clause. Hudson v. Ede (/) was distinguished, on the ground that there had there been only one mode of loading the cargo {g) . So, it has been held in America that an exception of " drought,'* in a charter for a timber cargo, does not excuse a charterer who has {d) Per Lord Selborue, 9 A. C. at p. wtile it is going on." 475. Pollock, B., whose judgment on (e) 67 L. J., Q. B. 203. See the the main question in Grant v. Coverdale comment on this case in Fumess v. For- ■was reversed, held that the exception wood, 2 Com. Oa. 223, at p. 227. included causes which arose after the (/) L. E., 2 Q. B. 566 ; L. E., 3 Q. B, loading had commenced, as well as 412 ; supra, s. 252. causes which prevented its commence- (g) 67 L. J., Q. B. pp. 207, 209. Cf. ment. " 'Preventing the loading' means Allerton Co. „. Falk, 6 Asp. M. C. 287 ; preventing in the sense of stopping it, The Eookwood, 10 T. L. E. 314 ; Fur- either before it has been commenced, or ness v. Forwood, 2 Com. Ca. 223. THE LOADING. 293 ■been prevented by want of water from bringing his timber down sect. 257. to the usual place of storage Qi). ' 257a. But, though there is a presumption that these exception Eioeptions to clauses relate only to the work of loading, that, as we have seen {h), duty to may include the work of bringing the goods from their storing car^*^^ places, or from the places at which they are produced, to the spot at which the actual loading is done. And, further, the form of the clause frequently shows that its scope is not meant to be confined to the mere loading. It has become not uncommon, especially with mineral cargoes, to except causes which may prevent or delay the getting of the agreed cargo, or the bringing it to the loading place. This is done sometimes in express terms. At other times it is done inferentially, by including causes which plainly refer to the work of getting or bringing down the cargo, and not to the work of putting it on board ; e.g., " accidents to mines or railways." In Fenwick v. Schmalz (i) exceptions of " riots " and " strikes," in a coal charter, were considered to relate to bringing the coal from the pit, and therefore to have the wider meaning. In Petersen v. Dunn (k), an exception of " strikes and lock-outs of pitmen and others " excused delay of the charterers in getting a cargo, caused by a general strike of miners, though that only occurred after seven of the twelve lay days had elapsed. In Furness ®. Fprwood (^), "stoppages of trains, miners, and workmen " was held to apply not only to causes preventing the shipment of ore by railway trucks, but also to causes which pre- vented the ore from being brought to the port (»?). 257b. In such eases a question of much importance arises, as to Do exoeptiona whether the exceptions relate to the particular cargo which the charterer's charterer has in fact arranged to ship, and to the steps which he P^^rtioular must take in order to bring down that cargo to the place of ship- ment. Must the charterer show that all practicable modes of getting, and bringing down, any cargo of the kind agreed upon have been prevented by the excepted causes ? If the charter party provides that the cargo shall come from some particular place, say from a mine, colliery, or factory which is (A) Sorensen v. Keyser, 52 Fed. Rep. (?) 2 Com. Ca. 223. 163. (m) See also Riohardsons v. Samuel, (A) Supra, s. 252. (1898) 1 Q. B. 261 ; 66 L. J., Q. B. 679. (i) L. B. 3 C. P. 312, p. 316. Cf. Gardiner v. Maofarlane, 20 Seas. Ca, • (A) 1 Cora. Ca. 8. (4tli) 414.- 294 THE VOYAGE. Sect. S57b. named, or is to be named, exceptions wliicli relate to getting or bringing down tbe cargo must be read with reference to that place. But, when the place from which the cargo is to come is not specified, the general rule is that the charterer is not excused unless aU practicable modes of loading have been prevented (w). In The Eookwood (o) it was held by the Court of Appeal, afiirming Sir F. Jeune, that a mere notice to the shipowner of the place from which the cargo would come, though given before the charter party was signed, did not make the exceptions relate to that particular cargo. The ship was to load a cargo of bricks and cement at Antwerp, subject to an exception of " strikes or cessation of work on the part of pitmen or other hands engaged in the getting, carriage, or loading of the said cargo, from whatever cause, or by reason of accidents in mines or to machinery, or any events beyond the control of the charterers or shippers." The cargo which the charterers intended to ship was of a peculiar make and quality, produced at North's Portland Cement Works, near Antwerp, and not procurable elsewhere. They informed the ship- owners, before the charter party was made, that North's works would load the ship. The only practicable way of bringing the cargo to Antwerp from those works was by canal. When the ship reached Antwerp one lighter with part of the cargo was waiting for her ; but the other lighters were either frozen in the canal or prevented from getting down, by ice, and the ship was consequently delayed. It appeared, however, that a cargo of bricks and cement might have been obtained by the charterers, and loaded at Antwerp, not- withstanding the frost ; and as that was the case, and as the charter party did not specifically refer to bricks, &c., from North's works, it was held that the charterers were not protected by the exceptions {p). [n) The Eook-wood, 10 T. L. E. 314 ; he needs the protection of an exception and see Stephens v. Harris, 57 L. J. clause, he needs it with reference to that Q. B. 203 ; Hudson v. Eds, L. E. 3 cargo. The possibility of being able to Q. B. 412, p. 414. buy and ship another cargo, from else- ip) 10 T. L. E. 314. Cf. Harris v. ■where, will seldom be of service to him. Dreesman, 23 L. J., Ex. 210. Moreover, the place of origin is often {p) This decision greatly limits the not definitely arranged when the charter value to the charterer of such exception party is made, and, so cannot be stated clauses as we are considering. A mer- in the charter party. In such cases chant charters a ship for the purpose of some general words seem to be needed, carrying definite cargo, or cargo which making the exceptions apply to the wm be definitely arranged for before cargo which the charterer shall have the ship arrives at the loading place. If contracted for. See DobeE v. Green, THE LOADING. 295 On the other hand, where the ship was to load a cargo of coals Sect. 257b. "in one or more lots as ordered, at the berth or berths pointed out by charterers' agents," it was held that a strike at the colliery at which the vessel was booked by the charterers was within an exception of " strikes delayingthe obtaining, providing, loading, or discharging of cargo " ; and the charterers were excused (q). 258. These exception clauses, relating to the charterer's work of loading or discharging, take various shapes. The following are some instances which have given rise to decisions. In Fenwick v. Schmalz (r), charterers agreed to load a ship "Accidents." with coals " in regular and customary turn except in case of riots, strikes, or any other accidents beyond their control which might prevent or delay the loading." They were held liable for a delay caused by snow ; snow not being an accident within the clause. In Stephens v. Harris (s), it was held that "strikes" and "Strikes." " striking work " did not cover stoppage of work by miners through fear of cholera, but only " striking in the ordinary sense of the word against employers — standing out for more wages on the part of the workmen." And in Eiehardsons v. Samuel (t), it was said by the Court of Appeal that " strikes " and " lock-outs " refer to labour disputes, and to difficulties forced upon the person claiming to be protected ; and not to time lost by the charterer's agent dis- missing men in his own interest. An exception of " strikes " has been held to excuse the charterer from sending lighters to receive cargo where a strike has prevented the lighters of the port from being available (m). But the exception wUl not protect a charterer where he could by reasonable exertions have avoided the strike, or its consequences (x). In Letricheux v. Dunlop (p), the exception was of " detention hy "Detention raihoays of whatever nature and kind soever during the said voyage ■'' ^^^ ^^J^- always mutually excepted ; " delay occm-red at Port Glasgow, the port of discharge, through the refusal of the Caledonian Railway Company to supply trucks, into which the cargo was, by the terms of (1900) 1 Q. B. 526 ; Gardiner v. (i) (1898) 1 Q. B. 261. Maofarlane (20 Sess. (4th) 414), infra, („) T^e Alne Holme, (1893) P. 173. B. 2S8a (( 278 (?) Lilly V. Stevenson, 22 Sess. (4th) W ^^ ^"^'"^'^ "" ^«'^^i<='^. (l^^*) 1 g ^ ' Q. B. 179, p. 185 ; and per Vaughan W L K 3 C P 313 WiUianis, J., Budgett v. Binnington, («) In the Q. B. D. 57 L. T. 618, per ^^ ^- ^- ^■' P" ^^''■ Lord Coleridge, p. 619. (y) 19 Sess. (4th) 209. 296 THE VOYAGE. Sect. 258. the charter party, to be delivered. That delay was held to be covered by the exception, although the corapany's refusal was due to the charterers having kept too many trucks unloaded at their works, in breach of the company's regulations, m^m " °" -"-^ '^^^ Village Belle (s) the exceptions included " civil commo- tion, strikes, riots, stoppage of trains, &c." The port of loading was Bilbao, and that place was at the time threatened by CarUst forces, who cut the railway for some days. But Sir E. Phillimore held that, to excuse the charterer for delay in the loading, it was not sufficient to show a general civil disturbance, and a stoppage of the railway for a short period : it must be shown that there was a disturbing cause of such a character as to prevent, and that it actually did prevent, the loading. "Political dis- On the other hand, " political disturbances or impediments " was turtances." j^^^^^^ ^^ g^.^j^ ^_ Eosario Nitrate Co. (a), to cover delay by the impossibility of working railways owing to civil war, which was going on in the country inland; and also to cover delay at a coaling port (Coronel) owing to a fresh demand for export duty on the cargo, by the Grovernment at that place, after the duty had been already paid to the competing Government at the loading port, Iquique (b). Causesbeyond 258a. The exception is sometimes in more general terms, as " unavoidable hindrances," or " causes beyond charterer's control." In Gardiner v. Macfarlane (e), the exception was of " strikes, lock-outs or accidents at the colliery directed, or on railways, or any other hindrances of what nature soever beyond the charterers' or their agents' control." Delay occurred in supplying coal from the colliery directed, owing to pressure of other business there which sprung up in consequence of a strike at a neighbouring colliery. The charterers were not excused. It was considered that they might have made arrangements for a supply to be given in proper time, and had not done so. But Lord Trayner, delivering the leading judgment, also put the decision on a broader ground. " The fact that the charterer could not procure the commodity in the market (it not being there for sale) which he had bound himself to put on board the chartered vessel, when that vessel was ready to receive it, is no excuse, on (z) 30 L. T. 232. (i) Of. MoLeod v. 1,600 tons of nitrate («) (1894) 1 Q. B..174 ; (1893) 2 Q. B. of soda, 55 Fed. Eep. 628. 323, (c) 20 Sess. (4th) 414. THE LOADING. 297 the ground of ' hindrances over which he had no control,' for the Sect. 258a. non-performance of his ohligation ; any piore than would be the excuse that having become bankrupt he had no money to purchase the commodity, it being procurable in the market " (d). In Eiichardsons v. Samuel (e) the exception was (amongst other things) of " strikes, lock-outs, accidents to railway, factories or machinery, .... or other causes beyond charterer's control." The cargo of oil, in cases, was to be shipped at Batoum, at a certain rate, from a certain factory. It could not be loaded at once because, owing to an accident to the railways, there was no oil in Batoum when the ship arrived. When oil began to come in again the packing of it in cases was delayed, because the packers had been allowed to disperse, and had to be got together agaia. This delayed the loading. Also the loading was delayed because other ships which had arrived at Batoum, to the same shippers, before the plaintiffs' ship, were loaded before her. Neither excuse availed the charterers. The loading time was held to begin as soon as there was sufficient oil at the factory. In Crawford v. Wilson (/), the plaintiffs' vessel was one of several with cargoes of coal, chartered by the defendants, which lay at Eio during the revolution in 1893 and 1894. Owing to the revolution the coal could not be landed, and discharging into lighters was greatly interfered with. But portions of the cargoes were lightered from the several vessels, by turns, to ships which required bimker-coals. This was done under arrangements made by the Commander of a British squadron, with the Brazilian Government, and with the insurgent leader. The plaintiffs con- tended that the defendants could have received the cargo into lighters in the time stipulated by the charter, and would have done so but for the discharging done from the other ships, and that they were not therefore " unavoidably hindered." But the Court of Appeal, affirming Mathew, J., held the charterers excused. Lord Esher said : " If, by something happening at the port of discharge which the defendants could not possibly avoid, they could not take delivery without doing something which it was wholly unreasonable that they should be called upon to do, they would be hindered ; although by doing the unreasonable thing they might possibly have taken delivery." ( carrying carry over and above her tackle, apparel, provisions and lumiture ; the cargo to be either of lawful merchandise generally, or of some named kinds. And where the charterer is to provide a cargo, the engagement to load a full cargo will generally be implied. But in each case the whole contract must be looked at, to ascertaia whether the charterer is bound, or is entitled, to load the whole ship [u). In Miller v. Borner («), the charterers were to load " a cargo of ore, say about 2,800 tons." The ship could carry 2,880 tons; and the charterers shipped 2,840. It was held that they had performed their obHgatio'n ; 2,840 tons, though not a full cargo, was a " cargo " of the kind indicated. Where the obligation is to load as much cargo as the ship can pro- perly carry, it will not suffice to load goods of a tonnage equal to the ship's tonnage, as described in the charter party. Where, for example, she was described to be " of the burden of 261 tons or thereabouts," but could in fact carry 400 tons, the charterer was held bound to load the full 400 {y). On the other hand, where the promise was to load a " fuU and complete cargo, say about 1,100 tons," it was held that the words " say about 1,100 tons " were intended as a guide to the charterer. The ship could in fact carry 1,210 tons ; but the charterer was held to be only bound to load " about 1,100," and 3 per cent, excess was considered to represent the effect of " about." " We can give effect to all the words used by holding the meaning to be that the shipowner will be content with a cargo of about 1,100 tons if the ship will hold more ; and if she can only carry less, of course the undertaking of the charterer would be fulfilled by loading a complete cargo " (s) . Where a steamer was to load " a f uU and complete cargo of rails . . . say about 2,850 tons, and not more than 3,000 tons," Mathew, J., (<) Strugnell v. Eriederiohsen, 12 [y) Hunter v. Ery, 2 B. & Aid. 421 ; C. B., N. S. 452. Thomas v. Clarke, 2 Stark. 450. (m) See CafBn v. Aldridge, (1896) 2 («) Morris v. Levison, 1 C. P. D. 155. Q. B. 366, 648 ; Miller v. Borner, 82 Cf . MoLay v. Perry, 44 L. T. 152 ; I'- T. 258. MoConnel v. Murphy, L. E., 5 P. C. 203 ; («) 82 L. T. 258. Bourne v. Seymour, 24 L. J., 0. P. 202. THE LOADING. 303 held that she was entitled to have the full 3,000 tons if she could Sect. 261. carry them (a). In Potter v. New Zealand Shipping Co. (b), the ship was to load a part cargo of ore in New Caledonia for the plaintiffs, and then to proceed to New Zealand, where the defendants were to load " a cargo of any sort of lawful merchandise, say 1^ tons, as specified below." Freight to be 30s. per ton of forty cubic feet. And the plaintiffs guaranteed " between 5,000 and 5,600 tons space of forty cubic feet fit for dry and perishable cargo." The ship arrived in New Zealand with a space of 5,450 tons of forty cubic feet. The defendants loaded heavy cargo which put the ship down to her marks, but did not fill the space. It was held that they were nevertheless liable for freight on 5,450 tons. 262. The charterer is only bound to load the holds or other parts Not cabins or of the ship ordinarily used for containing goods, even though additional goods might safely be stowed in her, as in the cabins or on deck. And, on the other hand, he is not entitled to load goods in the cabins (c) or on the deck (d), even though that would be safe. Should he do so, in the absence of express agreement- or custom giving him the right, he will be liable to pay freight on those goods at the current rate at the time of loading, without regard to the charter party rate (e). In NeUl V. Ridley (/), the charter gave the charterers the right to load " the full reach of the vessel's hold from bulkhead to bulk- head, including the half-deck," for a lump sum freight. It was held that the shipowner was entitled to the freight on some cattle shipped on the deck by third persons under agreement between them and the charterers. Further, a charterer under a charter party by which a lump freight is payable for the use and hire of the ship, is not entitled to require the shipowner to carry passengers in the cabins (g) . And, again, the charterer is not boimd to provide ballast (A). Not ballast. That is part of the shipowner's duty ; and, on the other hand, it (a) Carlton Steamship Co. v. Castle, v. Burrell, 21 Seas. Oa. (4tli) 527. &c. Co., 2 Com. Ca. 173. («) Miteheson v. Niool, 21 L. J., Ex. (i) 1 Com. Ca. 114. Cf. S.S. Heath- 323. Custom for master to take goods, field Co. V. Eodenacher, 1 Com. Ca. Donaldson v. Forster, Abb. (5th) 208. 446 ; 2 Com. Ca. 55 ; S.S. Rotherfield (/) 9 Ex. 677. So also WiUa v. Co. V. Tweedy, 2 Com. Ca. 84. Burrell, stipra. («) Mitoheson i)..Niool, 21 L. J., Ex. (g) Shaw :;. Aitken, 1 Cab. & EU. 195. 323. (A) Moorson v. Page, 4 Camp. 103 ; (a!) NeiU v. Bidlej; 9 Ex. 677 ; WiUs Irving v. Clegg, 1 Bing. N. C. 53. 304 THE VOYAGE, Shipowner may load space not chartered. Sect. 262. is his privilege. He is entitled to take merchandise as ballast, bearing freight, provided it occupies no larger space than ordinary ballast would do, and leaves to the charterer the full space of the vessel proper to be filled with his cargo («'). Sometimes the charter party only relates to part of the ship's space, or carrying capacity. In that ease the shipowner will generally he at liberty to use the remaining space for his own pur- poses. In Caffin v. Aldridge (k), the charter party, after stating that the ship's "dead weight capacity" was 125 tons, provided that she should load " a cargo or estimated quantity of 470 quarters wheat in sacks ^ other lawful merchandise." The ordinary words " full and complete," before " cargo," in the printed form, had been struck out ; and 470 quarters of wheat would only weigh 102 tons. The charter party gave liberty to call at any port. It was held that the shipowner was at liberty to carry other cargo than the wheat, for other persons. "Merchan- dise " and "produce." 263. General expressions, such as " merchandise," or " produce," used to describe the intended cargo, denote things which have those characters in the particular trade, having regard especially to the particular port of loading. " Produce " has been said to mean " anything produced by the country in the neighbourhood of the port of loading, and being an ordinary subject of importation" (/). Government stores (ordnance, ammunition, &o.) have been held to be not covered by " lawful merchandise " (m). In Capper v. Forster (m), the charter party provided that the ship should take an outward cargo to Eio Nunez, and there load a full and complete homeward cargo of lawful merchandise ; and this was to be delivered in London on payment of " freight as follows, in fuU for the above voyage," — then followed a list of particular kinds of merchandise, with rates of freight, and the words " all or either at the option of the charterer." The vessel was to call at St. Mary's on the homeward voyage, and should she (t) Towse B.Henderson, 19 L. J., Ex. 163. Of. The Port Adelaide, 59 Eed. Rep. 174. As to the obKgation of the shipowner to provide ballast under » time charter, see Weir v. TJnion Steam- ship Co., (1900) 1 Q. B. 28. {k) (1895) 2 Q. B. 366, 648. Cf. Aitten v. Erusthausen, (1894) 1 Q. B. 773. (Z) Per Maule, J., in Warren i/. Pea- hody, 19 L. J., C. P. p. 46. (m) Per Charles, J., in Vanderspar v. Duncan, 8 T. L. E. 30; he considered that the meaning of "merchandise,"' established by usage, confined it to " goods ordinarily shipped from the port of shipment." (n) 3 Bing. N. C. 938. THE LOADING. 305 not be full at Eio Nunez, the charterer was to have the liberty of Sect. 863. filling her up at St. Mary's. About one-seventh of a full cargo ~ ~' was loaded at Eio Nunez, and the charterer filled up the ship at St. Mary-'s, partly with paddy and hides, which were among the enumerated articles, and partly with teak wood, which was not, but was the staple commodity of St. Mary's. The jury found that the charterer might have loaded a full cargo at Eio Nunez ; and that he did not fill up at St. Mary's a full and complete cargo of lawful merchandise, according to the true intent of the charter. And this was approved by the Court. For the liberty of filling up at St. Mary's meant that the charterer might there supply any deficiency of the contemplated cargo which he might be unable to procure at Eio Nunez. Where in such cases the cargo loaded is smaller than it should be, or not of the agreed goods, the rule for estimating the damages is to calculate the freight which would have been earned had average quantities of all the enumerated articles been shipped (o). 264. Where the charter authorizes the loading of several articles. Various the charterer may load a full cargo of any one or more of them, charterer's unless there is a stipulation to the contrary, although that cargo °P*^°'^' may not produce so large a freight as would have resulted from the cargo anticipated. Thus, in Southampton Steam Colliery Co. v. Clarke (jo), the ship was to load at Archangel " a full and complete cargo of oats or other lawful merchandise," to be delivered on being paid freight as foUows : " 4s. Qd. per 320 lbs. English weight delivered for oats, and if any other cargo be shipped to pay in full and fair proportion thereto according to the London-Baltic printed rates, taking as a basis for natural weight of the oats 36 lbs. (English) per bushel." The charterer loaded a cargo of flax cedilla and tow, articles included in the London-Baltic printed rates ; but the freight thus earned was much less than would have been earned had a cargo of oats been shipped. The charterer was held to be liable for the freight actually earned only. In the Court of Exchequer the opinion was expressed that the only kinds of " other merchandise " that might be shipped under (o) Capper v. Forster, 3 Bing. N. C. L. J., C. P. 43. But of. Benson v. 938 ; Thomas v. Clarke, 2 Stark. 450. Schneider, 7 Taun. 273. And see Oockbum v. Alexander, 18 (p) L. E., i Ex. 73 ; L. E., 6 Ex. L. J., C. P. 74 ; Warren v. Peabody, 19 53. 0. — C. X 306 THE VOYAGE. Sect. 264. that charter party were those " specified in the London and Baltic tables as bearing certain proportions to oats " {q). Again, where the shipment was to be of " copper, tallow and hides, or other goods," the charterer was entitled to load tallow and hides only, without any copper; though ballast was required in consequence {r). In Warren v. Peabody (s) the cargo was to be of produce, and freight was to be paid " at and after the rate of 5s. &d. per barrel of flour meal and naval stores, and lis. per quarter of 480 lbs. for Indian corn or other grain." It was held that the words " other grain " did not include oats, but only such grain as, like Indian corn, would weigh about 480 lbs. per quarter^oats being far more bulky rfor the same weight. Where a cargo was stipulated for on which the rates of freight should average 40s. a ton, and the charterer loaded goods on which the average rate was 32s. a ton, it was held no sufficient excuse that he had also shipped extra passengers, whose payments made the ship's earniags equal to 40s. a ton. For the words " cargo " and "freight " Tehiie, primA facie, to goods only (t). 265. Some kinds of cargo cannot be loaded so as to completely fill the ship's holds. Spaces are left, which are called broken stowage. If the charterer is to load a full cargo, and has the option of loading what he pleases, he cannot choose to load goods which leave broken stowage, and no others ; he is bound to fill up the spaces (m) . Custom. But this may be varied by usage. In Cuthbert v. Cummiag {x), the contract was to load " a full and complete cargo of sugar, molasses ^ other lawful produce " ; and it was proved that by the custom of the port of loading, Trinidad, a fuU and complete cargo of sugar and molasses, packed in hogsheads and puncheons, constituted a full and complete cargo of sugar and molasses. The charterer had shipped sugar and molasses in hogsheads and puncheons, which was the best mode of packing them ; but after shipping as many hogsheads and puncheons as could be stowed, broken stowage was left, which he did not fill up, as he might have done, with small packages. It was held by the Exchequer Chamber, p. 78. "Full and complete cargo." (?) L. E., 4 Ex (»•) Moorson v. Page, 4 Camp. 103. And see Irving v. Clegg, 1 Blng. N. C. 53. W 19 L. J., C. P. 43. (i!) Lewis V. Marsliall, 7 M. & (J. 729. [u) Cole ». Meek, 33 L. J., 0. P. 183. (») 24 L. J., Ex. 198, 310. THE LOADING. 307 affirming the Court of Exchequer, that the custom was a reasonable Sect. 265. one, and protected the charterer from liability. In Furness v. Tennant (t/) the ship was to be loaded with " a full and complete cargo of sugar in hogsheads ^ bags or other lawful merchandise," at San Fernando, Trinidad. The shipowner claimed dead freight on the ground that part of the hold and the alleyways were not filled, as they might have been, with bags of sugar. The charterers had tendered hogsheads of sugar which could not be stowed in those parts of the ship, and they contended that the master had improperly stowed bags of sugar in the hold which might have gone into the alleyways, and so prevented the loading of more hogsheads. The Court of Appeal, affirming "Wright, J., held that the shipowner's claim failed. " The master had no right to assume without inquiry that the cargo would come in the one form or the other. If, for his guidance in stowing it, he required iuformation as to this, he should have enquired of the charterers. If they had misled him he would have ground for complaint ; but there was no misleading." He had chosen " to leave stowage which was only suitable for bags, and not for hogs- heads, which the charterers had an equal right to send." In Steamship Isis Co. v. Bahr (s), the ship was to be loaded with " a full and complete cargo of wet wood pulp, which contains about 50 per cent, of water," and the loading was to take place in winter, on the Eiver Penobscot, Maine, U.S. Wet wood pulp is of two kinds, distinguished as chemical and mechanical. The former kind is packed in square compressed bundles, the stowage of which is not affected by frost. The mechanical kind is, in practice, made up in bundles of folded sheets tied together, of less regular shapes ; these are fl.exible and compressible when moist, and can be stowed closely ; but not so when frozen. The larger part of the cargo shipped was of this latter kind ; and, the bundles being frozen.hard when shipped, the vessel could not take so much as otherwise she could have done by 440 toUs. It was held (by Smith, and Eigby, L. JJ., Yaughan "Williams, L. J., dissenting), that the charter party contemplated the possibility of the cargo being frozen when shipped, and allowed the charterers to ship the irregular bundles in that state; and that as they had shipped as much as the ship could take there had been no breach. (t/) 66 L. T. 635. Cf. Harris v. Best, 68 L. T. 76, per Lord Esher, p. 78. (z) (1899) 2 Q. B. 364. Affirmed in H. L., May 14, 1900. x2 308 THE VOYAGE. Sect. 26d. Ballast instead of cargo. Vaugban Williams, L. J., dissented, on the ground that as the cargo shipped was not such as to fill the ship's holds it was not a full and complete cargo, unless hy custom such a cargo constituted a full and complete cargo ; and that the evidence to establish such a customary meaning of the words must show not only that mechanical wood pulp is in winter shipped in a frozen condition, " but also that when so shipped it is accepted as a full and complete cargo, without any claim being admitted for shortage by reason of the broken stowage and unfilled spaces in the ship's hold." A charter party provided for a " full and complete cargo of sugar in cases, or other lawful merchandise, with sufficient bags for stowage ;" freight to be paid for sugar at specified rates, and for " other produce a rate proportionate to sugar in casks, with sufficient bags for broken stowage, agreeably to the custom of the port of loading." The charterer shipped cotton instead of sugar, and put stone on board for ballast; and the jury found that, according to the custom of the port of loading, the cotton shipped was a fuU and complete cargo. It was contended by the ship- owner that bags of sugar should have been shipped, instead of the stone ballast. But the Court held that there was no such obliga- tion (a). Goods to he prepared as customary. 266. If there is a customary mode of preparing particular goods for shipment at the port of lading, the expression " full and com- plete cargo," in relation to those goods, must be construed with reference to that practice. The custom of the sugar trade at Trinidad, to pack sugar and molasses in hogsheads and puncheons, was approved, as we have seen, in Cuthbert «. Gumming (b). In Benson v. Schneider (c) it was shown that cotton shipped at. New Orleans was usually re-pressed before loading, at the shipper's expense, and it was held that a " fuU cargo " of cotton was not supplied unless the bales were pressed according to that custom. In Haynes v. Halliday {d), under a contract for the carriage of a boat of certain dimensions, the shipper presented a decked boat for shipment. Evidence was given that it was the practice to take the decks out of such boats on shipment, as they obstructed the naviga- tion. The shipper refused to let this be done. It was held that he {a) Duokett v. Satterfield, L. R., 3 C. P. 227. (i) 24 L. J., Ex. 198, 310. (c) Benson v. Schneider, 1 Moore, 21, 76 ; 7 Taun. 273. W 7 Bing. 587. THE LOADING. 309 could not recover against tlie shipowner for refusing to carry it Sect. 266. without the deck being taken out. 267. The preparation of the goods for loading is ordinarily the Costof pre- duty of the charterer. And when a cargo of wool was to be shipped, different rates of freight being stated for pressed and for unpressed wool, and the charter being silent as to the cost of pressing, it was held that a custom of the port to throw that expense on the shipowner could not be imported into the con- tract (e) . 268. The fact that a charterer has put goods on board the ship Kight of ..,!.» T • n charterer to under the qharter party does not disentitle him from having tnem have goods landed there again ; unless bills of lading have been given by the "^^ ^"^ ® • master for the goods, and have got into the hands of third persons (/) ; or unless the shipowner has acquired a lien on them. In Thompson v. Small (g) goods had been shipped in London under a charter party, hy which the charterer acquired the whole use of the ship for the voyage for a lump sum, which was to be paid in London two months after the ship cleared at the Custom House. It was held that the charterer had the right to remove the goods before the ship sailed. Tindal, 0. J., in delivering the judgment of the Court, said : " He had the entire use of the ship under the charter ; and there was nothing to prevent him from taking out the cargo before the ship sailed, if circumstances had rendered it expedient, and changing such cargo for another, or even from sending the ship empty to Sydney, or from loading her entirely with the goods of other persons, the freight of which had ° been paid to him in advance, there being no agreement on his part to put a full cargo or indeed any cargo on board, and the payment for the hire of the ship being made quite independent of the delivery of any cargo." 269. But the case is different when goods have been shipped Eelanding in a general ship. The contract is that these goods shall be sMp!^^"^'^^ carried to the agreed destination, and it cannot if valid be put an end to by one party only. " A merchant who has laden goods cannot insist upon having them relanded and delivered to him without paying the freight that might become due for the carriage (.) Oookbum V. Alexander, 18 L. J., (•^) See Davidsons, awynne, 12 Bast, "■' ' ' 381. ^- ^- '^*- (ff) U L. J., 0. P. 157, 310 THE VOYAGE. Sect. 269. of them, and indemnifying the master against the consequences of any bill of lading signed by him " (A). In Tindall v. Taylor («) Lord Campbell cited this passage with approval, and proceeded, " It is argued that there can be no lien on the goods for freight not yet earned or due ; but when the goods were laden, to be carried on a particular voyage, there was a contract that the master should carry them in the ship upon that voyage for freight; and the general rule is that a contract once made cannot be dissolved, except with the consent of both the contracting parties. By the usage of trade, the merchant, if he re-demands the goods in a reasonable time before the ship sails, is entitled to have them delivered back to him on paying the freight that might become due for the carriage of them, and on imdemnifying the master against the consequences of any bills of lading signed for them ;.but these are conditions to be performed before the original contract can be affected by the demand of the goods." And in Thompson ». Trail (A), Abbot|, 0. J., said: "If the captain had said when the goods were demanded, ' I cannot give them up ; they are on board, and I must take them to Leghorn,' I should have held that that was no conversion." But as the captain in that case had refused to re-deliver to the shippers, on the ground that he had signed bills of lading to deliver them to other persons, he was held liable for a conversion. And it was considered that he had dispensed with a tender of the freight and expenses {I). Ship should 270. The ship ought, if necessary, to wait for cargo at the port agreed time, of loading during all the agreed lay days ; unless the charterer has definitely refused to provide a cargo (m). Until they have expired, the charterer's breach in not loading is not complete (w). Perhaps, too, in order to make the breach complete, the ship ought to stay during the agreed days on demurrage, if any ; unless the charterer has refused to load. At any rate she ought to stay if required to do so by the charterer (o). [h) Abbott (5th), p. 426 ; (13th), 749 ; («) Avery v. Bowden, 25 L. J., Q, B. Parsons, Shipping, pp. 174—179. 49 ; 26 L. J., Q. B. 3 ; Eeid v. Hoskins, (i) 24 L. J., Q. B. 12. 25 L. J., Q. B. 55 ; 26 L. J., Q. B. 6. (/c) 2 C. & P. 334 ; 6 B. & C. 36. Of. Danube and Black Sea Rail. Co. v. (T) Of. Palk V. Matcher, 34 L. J., Xenos, 31 L. J., C. P. 284. C. P. 146 ; Jones v. Hough, 5 Ex. D. 115 ; swpra, s. 68. W ^^^ Connor v. Smythe, 5 Taun. (m) Harries :;. Edmonds, 1 C. & K. 6^4 ; Dimech v. Corlett, 12 Moo. P. C. 686. 199, at p. 231. THE LOADING. '311 But if the ■whole agreed period for loading has expired, and no Sect. S70. cargo has heen provided, or if hefore any demurrage has been incurred there has been a definite refusal by the charterer to supply a cargo, and the shipowner still chooses to keep the ship at the port, he will do so at his own risk, and will not be entitled to additional damages for the subsequent detention {p). And in all cases where the charterer has failed to perform his contract, the shipowner is bound to do what may be reasonable to mitigate the consequent loss to himself. If he can get cargo from other persons, and so earn freight in place of that agreed for by the charter party, he ought to do so. What may be reasonably required from him in this regard must depend upon the circumstances of the particular case {q). 271. The shipowner is bound to take, as well as the charterer to Must take a supply, a full cargo. If he fails to do so he is liable in damages. In Atkinson v. Ritchie (r) a cargo of hemp was to be loaded at Cronstadt ; and thirty running days were allowed for loading. The ship arrived on September 16th, 1807, and the loading went on until the 25th. On that day there was every appearance that the Hussian Government was about to lay an embargo on British ships in the port ; and in consequence the master of the ship gave directions to leave off screwing down any more hemp, the usual mode of loading, and to fill up as fast as possible by hand ; and he sailed away that evening. The cargo on board was much less than might have been loaded in the ship ; and there was at the time other hemp of the charterers lying in lighters alongside her, sufficient to have made a full cargo. No embargo was in fact laid for several weeks after. It was held that the master was liable, in damages, for not having taken a complete cargo ; although restraint of princes and rulers was excepted. If the loading takes place within a bar-harbour the vessel is not bound to take on board more cargo than she can safely cross the bar with. But where a ship was chartered at a lump freight for a full cargo, and the master sailed with only a part cargo in order to cross the bar at a low state of the tides, it was held that the shipowner was liable. The ship ought to have taken as much as would allow her to cross on the highest spring tide (s). (j>) Blight V. Page, 3 B. & P. 295, n. ; [r) 10 East, 630. Cf. Bnmner v. Dimeoli v. Corlett, supra. 'Webster, 5 Com. Ca. 167. (?) See »/?•«, s. 720. Cf. Atbbtt (5th) («) Gifford v. Dishington, 8 So. L. E. 179. 665 ; The Curfew, (1891) P. 131. 312 THE VOYAGE. •Sect. 272. 272. So the shipowner is liable in damages if he fails to take a Unskilful fuU cargo, owing to the goods heing stowed unskilfully by his sei-vants (t). He is bound to have the ship stowed with skill, so as to carry aU she reasonably can (m). And he is not excused by the fact that it was agreed that the charterer should appoint a steve- dore, if in fact he did not do so. " The master is by law required to be a competent stevedore himself" («). But where a full cargo was not taken owing to the manner of stowing, and the shipper and his broker were on board from time to time while that was being done, and made no objection, it was held to be a question for the jury whether the shipper had not induced the shipowner to suppose that he consented to the mode of stowing ; in which case he lost his right of action (y). A charter provided that the ship should take a deck cargo if she was loaded with timber. It was estimated in the charter party that she would carry 1,200 tons. Before loading, the master, on the advice of the charterer's agent, took only seventy-five tons of ballast on board ; 1,080 tons of oak were then loaded : and the ship was then so tender that the master refused to take more than six logs on deck. The charterer sued the shipowner for not carry- ing 1,200 tons. But it was held by the Common Pleas that, as the want of ballast was due to the charterer's advice and request, the action could not be maintained. The cargo would require more or less ballast according to the kind of timber shipped ; and the owner could only act as he was advised by the charterer (s). The charterer cannot require the goods to be stowed unsafely, with a view to taking a larger quantity. In Mackill v. Wright (a) the owners, by the charter, guaranteed that the vessel should " carry not less than 2,000 tons dead weight of cargo." The cargo was machinery and coal, but so much large machinery was shipped that, with that cargo, the 2,000 tons could not be carried unless the coal was stowed among the machinery. That is often done by arrangement ; but it damages the coal, if not also the machinery. The charterers contended, without effect, (<) Anglo-African Co. «/. Lamzed, 469; Major v. WMte, 7 C. & P. 41. L. R., 1 C. P. 226. But of. Ohrloff v. Brisoal, L. E., 1 P. C. (m) Not necessarily the wliole space, if 231; Hutchinson v. Guion, 28 L. J., that "would make her unsafe : "Weston ». C. P. 63. Foster, 2 Curtis, 119 (U.S.). (z) Crow v. Armstrong, Stevens on (x) Per WiUes, J., Anglo- African Co. Stowage (5th), p. 607. Of. Purness ». V. Lamzed, L. E., 1 C. P. p. 229. Tennant, 66 L. T. 635 ; supi-a, s. 265. {y) HpviU V. Stephenson, 4 0. & P, (a) 14 A. 0. 106. THE LOADING. 313 that it was tlie duty of the shipov?ners to obtain permission from Sect. 872. the owners of the coal and machinery to stow them together. 273. The duty of stowing the cargo in the ship lies on the Shipowner . , . - , 1)01111(1 to stow owner, and on the master as his representative, unless there is an carefully. agreement to the contrary. The master ought to be a competent stevedore, and he must see that the stowage is done with skill and care (h). Moreover, the ship must provide whatever dunnage may be required (c) ; such as mats, battens, loose wood, &c. These are needful to keep the goods in their places ; to prevent their being injured by contact with other goods, or with the sides of the ship ; and to maintain the spaces required for ventilation and for allow- ing any drainage, and any leakage of the ship, to pass harmlessly into the bilges. We have seen that it is not generally necessary to show negli- gence in order to make the shipowner responsible for the safety and good condition of the goods. Subject to the exceptions stipulated for in the contract, and those prescribed by the law, he is absolutely liable for their safety. For example, where flour became tainted by the fumes of some turpentine which formed part of the same cargo, the shipowner was liable, though there was no want of care in the stowing (d). The duty to stow carefully may seem, there- fore, to be included in the more general obligation. But that general obligation is subject to exceptions ; and the effect of such subsidiary duties as that of stowing properly is to qualify those exceptions. Thus, goods may have been injured by fumes or leakage from another part of the cargo, and that risk may have been expressly excepted; stUl, if they would have escaped the injury but for negligence in the stowage, the exception will not protect the shipowner. 274. Though it may be agreed that the charterer shall appoint Where ohar- a stevedore to do the stowing, still it remains the right and the gteTedore" duty of the master to control the stevedore, if he is endangering ' the ship's safety. Whether the charterer can complain, against either shipowner or master, of the manner in which the stowing has been done, if he himself appointed the stevedore who did it, (i) As to stowage under oiroumstanoes W Ahhott (5th), p. 224; (13th), 391 of difficulty, for which the shipowner ,',„.„ . _ ., , „. „.„ W GiUespie v. Thompson, 6 E. & B. was not responsible, Zipsey v. Hill, 1 ^„_^_. Stevens on Stowage (Sth), p. 456; F- & F. 570. gupra, s. 95. 314 THE VOYAGE. Sect. 274. and if the master did Bot in fact interpose, is a matter upon ■which differing decisions have been given (e). The mere fact that the charterer or shipper knew how the goods were being shipped, and assented to what was done, will not generally excuse the shipowner (/). In Blaikie «>. Stembridge (e), an action was brought by a shipper against the master, for damage done by negligence of the stevedore in taking goods on board. The ship was under charter to one who had arranged with the shipper for the shipment ; and the charter party provided that the stevedore should be appointed by the charterer, but should be paid by and should act under the captain's orders. It was held that this did not "create any liability on the part of the master for the acts of the stevedore, not done in pursuance of his orders. The stevedore was to be appointed by the charterer, and, therefore, to act for him and represent his interests. For this purpose he had the charge and custody of the goods until they were laden and stowed on board. The master on the part of the owners, with a view to the trim and safety of the ship, had control over the stevedore, but there was ' no stipulation that he should in any other way assist the latter. The payment of the stevedore was merely matter of bargain between the owner and the charterer, and did not make the stevedore the servant of the master: see Quarman v. Burnett (g). The true construction of the charter party appears to be that the cargo is to be brought alongside at the risk and expense of the charterer, and that it is to be shipped and stowed by his stevedore, consequently at his risk ; though at the expense of the shipowner, and subject to the control of the master on behalf of the shipowner, with a view to protect his interests" (/*). In The Catharine Chalmers («),the charter party provided that the vessel was " to be stowed by charterers' stevedore at risk and {«) BlaiHe v. Stembridge, 6 C. B., (ff) 6 M. & W. 499. N. S. 894 (1859) ; The Catharine Chal- (*) Per "WiUes, J., 6 C. B., N. S. 894, mere, 32 L. T. 847 (1874) ; Swainston v. P- 908. This judgment was affirmed in Garrick, 2 L. J., N. S., Ex. 256. Cf. tlie Ex. Ch., 6 0. B., N. S. 911, hut on Sandenmn v. Sourr, L. E.., 2 Q. B. 86 the ground only that the master was not (1866) ; Steinmann v. Angier, (1891) 1 liable, as there was no contract made by Q. B. 619 ; Harris v. Best, 68 L. T. 76 li™> and no act done by him or the (1892). crew which led to the damage. And it was doubted whether the stevedore (/) Cf . Hutchinson v. Guion, 28 L. should not be considered as the master's J., C. P. 63 ; Hovill v. Stephenson, i servant. 0. & P. 469. (i) 32 L. T. 847 (1874). THE LOADING. 316 expense of vessel " ; and tlie cargo was put on toard by a stevedore Sect. 274. appointed by the ebarterers, but paid by tbe shipowner; the officers of the ship not interfering. Held, by Sir E. Phillimore, that the shipowner was not responsible to the charterers for damage by bad stowage. On the other hand, in Sack v. Ford (k), the charter party provided that " the cargoes are to be taken on board and dis- charged by the charterers, the crew of the vessel rendering customary assistance so far as they may be under the orders of the master, and the charterers are to have the liberty to employ steve- dores and labourers to assist in the loading, stowage and discharge thereof ; but such stevedores and labourers being under the control and direction of the master, the charterers are not in any case to be responsible to the owners for damage or improper stowage." And " the master and the owners of the said ship shall devote the same attention to the cargo . . . and shall in every respect be and remain responsible to all whom it may concern, as if the said ship was loading and discharging her cargoes and performing her voyages for account of the said owner and independently of this charter party." Stevedores were appointed by the charterers, who superintended the stowage of a cargo, and it was injured through being improperly stowed. The master had been on board, and in some instances had given directions to the crew and labourers engaged in the stowing. It was held that the owner was liable to the charterers for the bad stowage, by the terms of the charter party ; and it was considered that the first of the above clauses, without the aid of the latter, would have sufficed to impose that Uability. In Ohrloff v. Briscal (/), Dr. Lushingtbn took a similar view of a clause by which charterers were " allowed to appoint a head stevedore, at the expense and under the inspection and responsi- bility of the master for proper stowage." In Sandeman v. Seurr (m), it was held that, as against an independent shipper, the fact that the stevedore had been appointed by the charterer was immaterial. And in Steinmann v. Angier (n), a shipper recovered from the shipowner in respect of a theft com- mitted by men employed by a stevedore who was appointed by the (k) 32 L. J., 0. P. 12 (1862). (^) l. tr., 2 Q. B. 86 (A L. E., 1 P. 0. 231 ; The Helene, 8. C. (1866). W (1891), 1 Q. B. 619 316 THE VOYAGE. Sect. 274. otarterers, but paid by the shipowner, notwithstanding an excep- tion of " thieyes." In Harris v. Best (o), the stevedore was " to be appointed by the charterers . . . , but employed and paid for by owners at current rate " ; and the question was whether the charterers were liable for improper delay of the stevedore in loading the ship. It was held by the Court of Appeal that the stevedore was the servant of the shipowner, and that the charterers were not liable. These cases seem to show that the view of WiUes, J., in Blaikie v. Stembridge (p), that the stowage by the stevedore was at charterer's risk, was mistaken ; also that the decision in The Catharine Chalmers (?) was wrong. Indorsee of 275. And even though the shipper may be estopped, by his acts ■without notice at the time of shipment, from complaining of the stowage, the affected? ^ same is not, it seems, true with regard to an indorsee of the biU. of lading to whom the goods have passed, without notice of any agreement or act creating such an estoppel (r). 276. Though the master ought to be skilful in the matter of stowing ships, this is to be construed reasonably ; and mere igno- rance of the efEect of stowing particular kinds of goods together will not be imputed to him as negligence, unless as a competent person he would reasonably be expected to know it. In Ohrloff v. Briscal (s), it was held not to be misconduct in the master to allow casks of oil to be stowed in the same hold with bales of wool and bales of rags, in ignorance that the wool and rags might become heated, and so might dry the staves of the casks, and render them leaky. " If the shipowners were ignorant of the consequences of taking such a cargo, we do not think it amounted to culpable negligence on their part to stow, in the only place they could be stowed, the goods which under the charter party the charterers had a right to insist, and did insist, should form part of the cargo. On this question it is, in our opinion, very material to consider not only that the charterers so insisted, but also that the cargo was, according to the terms of the charter party, received on board, and stowed as it was presented for shipment by them ; and that Bad stowage through ignorance. (o) 68 L. T. 76 (1892). Ip) 6 C. B., N. S. 894. (?) 32 L. T. 847. (r) See per Dr. Lushingfton, Ohrloff V. Briscal (Th&.Helene), L. E., 1 P. C. 231, at p. 250 ; supra, s. 63. (s) L. R., 1 P. 0. 231 ; The Helene, s. a THE LOADING. 317 thej were shown to be very frequently on board, as the stowage Sect. 276. progressed, and were well acquainted with the mode of stowage (which was effected in a masterly way), and never made any complaint or objection to it. Nor do we think the ignorance of the shipowners in itself amounted to negligence. It can hardly be imputed as misconduct that the shipowners should be ignorant of latent mischief of this nature, when Lloyd & Co., who are proved to have had very great experience as oil merchants, were in the same state of ignorance." 277. "Even if the appellants knew, or ought to have known, Where what the consequences of such stowage must be, we are not pre- gj^ipg unsafe pared to say that they were guHty of negligence in not putting up "argo. bulkheads. Assuming that they could have been so constructed as to protect the part of the hold where the pil was stowed from the influence of the heat generated by the wool and rags, still this could not have been done without much trouble and considerable expense, which we cannot concede that the shippers had a right to throw on the shipowners, because the shippers chose to load the ship they had chartered with a cargo of such a nature. And to this we may add that, even supposing the shipowners to have been aware of the usual consequences of stowing such a cargo in the same hold, they might have well come to the conclusion that the shippers were also aware of them, and would not have put such a cargo on board unless they had been assured that the casks were of such extraordinary strength and goodness as to be capable of resisting the usual influence of a heated temperature " (t). In Hutchinson v. Gruion (u), to an action for negligently stowing a quantity of saltcake, the shipowners pleaded that the saltcake was a corrosive substance, rotting casks, cask hoops and other sub- stances in contact with it, which the plaintiffs knew, but the defendants did not know and could not reasonably be expected to know ; that the plaintiffs did not inform the defendants, and im- properly shipped the saltcake in bulk, so that it was stowed amongst casks of salt provisions, which it corroded and so caused the damage. To this the plaintiffs replied that saltcake is an article of merchandise well known in trade and commerce, and the {t) L. E., 1 P. 0. pp. 239, 24Q. plea to a claim by a charterer that the (.«) 28 L. J., C. P. 63. Of. Alston v. iniury was from sulphuric acid shipped Herring, 25 L. J., Ex. 177, where on by the charterer's shippers, without demurrer it was held not to be a good notice to the shipowner. 318 THE VOYAGE. Sect. S77. nature and properties of which are well known in trade and commerce, and that it is commonly carried in ships, and its nature and properties are well known to persons carrying on the busiaess of carriers in ships and hy water. It was held that the plea was good, and that the replication was no answer to it. "The plaintiffs deliver an article which they know is liable to cause injury, and very capable of doing injury to other goods besides causing its own injury, and an injury is the direct consequence of so doing ; they deliver that article on board the ship, or with whomever is in charge of the ship, without com- municating the fact of its beiag liable to cause injury (its character being xmknown, or not stated to be known^ to the persons who may be there to receive it) ; and it is no answer to say that it is an article known in commerce, and the defendants might or ought to have known what sort of a thing it was " («). Liability of shipper fihipping daogerous goods with- out notice. 278. The rights and duties of shipper and shipowner where dangerous goods are shipped were much discussed in Brass v. Maitland(y). Bleaching powder containing chloride of Ume had been shipped in casks ; and fumes from it had escaped and corroded other goods which the master had, in ignorance, stowed with the casks. The shipowners, having been compelled to make good this damage to the owners of those goods, sued the shippers of the powder : iirst, for having shipped it, knowing its dangerous cha- racter, in casks that were insufficiently secure ; and secondly, for having shipped it, knowing its dangerous character, without giving notice of the danger to the master or any of the plaintiff's servants. The Court were agreed that it is the duty of a shipper to pack sufficiently for safety, and to give warning of any danger, when he is himself aware of it (s) ; but they differed as to his obligations when he is himself ignorant. Lord Campbell said («) : " It seems much more just and expe- dient that although they were ignorant of the dangerous quality of the goods, or the insufficiency of the packing, the loss occasioned by the dangerous quality of the goods and the insufficient packing should be cast upon the shippers than upon the shipowners. Lord Tenterden, in the 7th Chapter of his Treatise on Shipping, where he treats of the general duties of the merchant, lays down the {x) Per WiUes, J. {') -^^ cf- Farrant v. Barnes, 31 li. J., 0. P. 137. W26L.J.,Q.B.49. W26L.J.,Q.B.atp.54. THE LOADING. 319 general principle on which the doctrine rests : ' The hirer of any- Sect. 278. thing must use it in a lawful manner, and according to the purposes for which it is let.' He then gives us an instance : ' The mer- chant must lade no prohibited or uncustomed goods by which the ship may be subject to detention or forfeiture.' Pari ratione, the merchant must not lade goods of a dangerous nature which the master and those employed in the nayigation of the ship have no means of knowing to be of a dangerous nature, without giving notice of their nature, so that the master and those employed in the navigation of the ship may exercise an option to refuse to accept them, and if accepted may stow them where they will not endanger the rest of the cargo." And Wightman, J., appears to have agreed in this view (6). But, on the other hand, Orompton, J., delivered an instructive opinion to the contrary (c), which seems to be more in accordance with the later authorities {d). He said : " What, then, is the nature and extent of this duty or engagement on the part of shippers of goods ? On the one hand, it is clearly a tortious act, for the eon- sequences of which the shippers are responsible, to ship goods apparently safe and fit to be carried, and from which the shipowner is ignorant that any danger is likely to arise, without notice of such goods being dangerous. If the shipper is aware of such danger, such shipment, when the scienter is made out, is clearly wrongful and tortious, and perhaps an action on a contract to give notice in such a case might be supported, though it would seem rather to be the subject of an action of tort. On the other hand, I cannot agree with the doctrine contended for on the part of the plaintiffs, that there is an absolute engagement on the part of the shipper that the goods are safe and fit to be carried on the voyage. Such a warranty would include the oases where the goods may be openly seen, and are known by the shipowner to be dan- gerous. It does not seem that there is any authority decisive on the point as to whether the shipper is liable for shipping dangerous goods without a communication of their nature, when neither he nor the shipowners are aware of the danger. It seems very difficult that the shipowner [? shipper} can be liable for not communicating (J) The same view has been taken in (c) 26 L. J., Q. B. p. 57. theU.S.: Pierce. .Winsor 2 Sprague, See Aoato3..Bums, 3Ex. D. 282. 36. Astoprohibitedgoods, Pars. Sh. I. "- ' ^ ^ „ 266, citing Sparks ■.. West, 1 Wash. Cf. Heame t>. Garton, 28 L. J., M. 0. C. 0. 238. 216. 320 THE VOYAGE. Sect. 278.' what he does not know. Supposing that hay or cotton should be shipped, apparently in a fit- state, and not dangerous to the know- ledge of the shippers or shipowners, but really being then in a dan- gerous state, from a tendency to heat, are the shippers to be liable for the consequences of fire from the heating of such goods ? This is a most important question, for if this be the law the underwriters on the ship, who really ought to be the persons to suffer from such unexpected fire, might bring an action in the name of the ship- owners against the shippers of goods, who would be made respon- sible for the accidental fire, when they were innocent, and would not be insured against the injury to the ship. Again, suppose that there is a new article of commerce, which neither shippers or shipowners knew to be dangerous, is the innocent shipper to be liable ? Lord Ellenborough's dictum, in Williams v. The East India Co. (e), above referred to, would tend to show that knowledge of the party shipping is an essential ingredient. On the other hand, it is stated in the passage from Abbott on Shipping, p. 402, 8th edit., that the merchant must load no prohibited or imcustomed goods by which the ship may be subjected to detention or for- feiture ; and this is laid down without any express qualification as to the knowledge of the shipper. In case of such goods, however, the merchant generally knows, or ought to know, from what he is presumed to be acquainted with, as to the nature of his trade, whether the goods he is shipping can properly be sent to their pro- posed destination; and the passage in question is hardly a sufficient authority for the proposition, that where the shipper is perfectly innocent and without any means of knowledge, he should be liable to the shipowners for the consequences of a mistake, which neither of them could have avoided. Suppose, for instance, that a ship- ment was made of goods for a foreign port, to which, according to the information known at the shipping port, such consignments might be properly and safely made, but that by some recent law the foreign country has made such shipment illegal, would the shipper be liable in such case ? I entertain great doubt whether either the duty or the warranty extends beyond the cases where the shipper has knowledge, or means of knowledge, of the dangerous nature of the goods when shipped, or where he has been guilty of some negligence as shipper, as by shipping without com- municating danger, which he had the means of knowing, and («) 3 East, 192. THE LOADING. 321 ought to have communicated. Probatly, an engagement or duty Sect. 278. may be implied, that the shipper will use and take due and proper care and diligence not to deliver goods apparently safe, but really dangerous, without giving notice thereof, and any want of care in the course of the shipment in not communicating what he ought to communicate might be negligence for which he would be liable ; but where no iiegHgence is alleged, or where the plea negatives any alleged negKgenoe, I doubt extremely whether any right of action can exist" (/). 279. But if the master or person in control of the ship chooses No warranty . . . of safety to receive the goods on board, knowing their nature, and the -t^iiere sMp- manner in which they are packed, the shipper will not be liable (g). notice. And where goods, such as maize, known to be liable to become dangerous by heating, are shipped in such a manner as to be open to the inspection of the master, there is no warranty by the shipper that they are fit to be shipped (k). In Brass v. Maitland it was held to be a good defence that the master knew that the casks contained bleaching powder, and had the means of knowing and reasonably might and could and ought to have known that it contained chloride of lime, and that he had the means of judging of the state and sufficiency of the casks and of the packing of the contents. " A mere allegation of ' means of knowledge ' I think would not have been sufficient, as this might be satisfied by calling in skilful chemists and resorting to investi- gations inconsistent with the usual course of commercial business. But the shippers were justified in acting upon the supposition that the master to whom the goods are alleged to have been delivered did know what ' he reasonably might and could and ought to have done"'(«). When a shipowner relies on a default of the shipper in not giving notice of the dangerous character of goods shipped by him, the burden of proving that no notice was given lies upon the ship- owner (A). {/) It has not apparently been decided offered for shipment under a charter whether a shipper of dangerous goods is party if they are not in a reasonably liable to other shippers. But see per safe condition to be stowed with the WiUes, J., in Farrant v. Barnes, 31 cargo already in the ship : Boyd v. L. J., 0. P. 137. Moses, 7 "Wall. 316 (U. S.). {g) Brass v. Maitland, 26 L. J., Q. B. (i) Per Lord Campbell, 26 L. J., 49. Q. B. at p. 65. (h) Aoatos V. Bums, 3 Ex. D. 282. (k) WiUiama v. The East India Go., 3 The master may refuse to receive goods East, 192. C, — C. Y 322 THE VOYAGE. Sect. 880. 280. Statutes have from time to time been framed controlling statutes as to the shipment of certain classes of goods. gooir™^ By the Merchant Shipping Act, 1894, s. 446, every shipper of " aquafortis, vitriol, naphtha, benzine, gunpowder, lucifer-matches, nitro-glycerine, petroleum, any explosives within the meaning of the Explosives Act, 1875, and any other goods of a dangerous nature " (l), is bound to mark the nature of the goods distinctly on the outside of the package containing them, and to give notice of their nature, and of the name and address of the sender or carrier to the master or owner of the vessel, at or before sending the same to be shipped or taking the same on boa,rd. In default he becomes liable to a penalty of 100^. for each offence ; or, if he can show that he was merely an agent, and was not aware, and had no reason to suspect, that the goods were dangerous, to a penalty of 10/. By sect. 447, if the goods are shipped, knowingly, under a false description, or with a false description of the sender, a penalty of 500/. is incurred. By sect. 448, the master or owner of the vessel may require any package which he suspects to contain such goods, to be opened ; and may refuse to take it on board. Or if such goods have been actually shipped without being marked, or without notice being given as prescribed, the master or owner may have them and their packages thrown overboard without being in any way liable, civilly or criminally. And by sect. 449, any breach or attempted breach of these regulations renders the goods liable to be forfeited by a Court of Admiralty. Also, by the Explosive Substances Act, 1883 (m), s. 8, the master or owner, if he has reasonable grounds for suspecting that any such dangerous goods are concealed on board, may search the vessel for them, and for that purpose may, if necessary, break open any box, package, parcel or receptacle on board without being subject to any liability, civil or criminal. As to petroleum and other mineral oils, see 34 & 35 Yict. c. 105, and 42 & 43 Yict. c. 47. Stowage on 281. The question whether cargo may properly be stowed on deck depends on the probable circumstances of the intended {I) Dangerous apotheoaiy -n-ares— v. -Stewart, Stevens on Stowage (Stli), spirits of nitre, sulpliuiio ether : see K. 149. (m) 46 & 47 Vict. c. 3. THE LOADING. 323 voyage, and on tlie condition of tlie ship. Goods ought not to be Sect. 281. carried on deck, if they are there exposed to a greater risk than when stowed in the usual carrying part of the ship, unless the shipper has assented to their heing so carried (w), or unless a custom to carry in that way exists in the particular trade (o). Where the hiU of lading is silent as to the place of stowage the contract is for carriage of the goods under deck, or in the ordinary proper carrying space of the ship {p) ; and it has been held that evidence of the shipper's verbal assent to a stowage on deck cannot be given to vary the bill of lading (q). In some trades goods are carried on deck at lower freights, and the fact is stated in the bill of lading (r). In Grould v. Oliver (s) the charter provided that a full cargo of timber should be loaded at Quebec. When the hold was full the master applied to the charterer's agent for further timber for a deck-load. This was supplied, though whether with the charterer's knowledge or not did not appear. The ship met with bad weather, and some of the deck cargo was jettisoned. The charterer claimed the value of it from the shipowner, on the ground that it had been improperly stowed. At the trial the jury were told that- it was for them to say " whether the stowage was such as to increase the perils of the navigation. That if it increased the danger to the ship, or the danger to that part of the cargo, it was an improper stowage, because it tended to the injury of the shipper of the goods." The jury found for the plaintiff, and the direction was approved by the Court. But Tindal, 0. J., said, " If a particular mode of stowage be conformable to the established usage of trade, it may not be improper, although another mode of stowage may be more safe Primd facie, the deck is an improper place for the stowage of the cargo, or any part of it. The duty of stowing belongs to the master, and no evidence was given of a general custom to load a deck cargo at the risk of the shipper. So far as («) As to, the ■warranty of seaworthi- Neptune, 16 L. T. 36. ness wiere that is the case, see Laurence (p) Royal Exchange Shipping Co. v. V. Mintum, 17 How. 100 (U. S.) ; Dixon, 12 A. 0. 11. Daniels v. Harris, L. R., 10 C. P. 1. / \ mi, tv i ii -nr n ,»„ , , TO-, ,, ' 1 ' , , , (? Tte Delaware, U Wall. 579 (o) where the vessel Delonged to one nr a •, t j tit j nA/-> t> t^ <», . , , ,■,.., i, ,.,, . U.S.); Leducs.Ward, 20Q.B.D.475. or a class constructed with the object of carrying goods on deck, under cover of W Mellor v. Chappie, cited Stevens a hurricane deck, it was held in the U.S. on Stowage (5th), 143; Corryji. Rohin- that shippers must be deemed to have 8°''; **• PP- ^^^t ^^l. consented to their being so stowed : The (s) 2 M. & G. 208. y2 324 THE VOYAGE. Sect. 281. the evidence upon this subject went, it showed that whenever a loss had occurred it had been made good by the shipowner, and consequently that he had no right by custom to throw the loss upon the shipper" (if). In Dixon v. Eoyal Exchange Shipping Co. {ii), Brett, M. E., said, that a custom to carry goods on deck must, iu order to give rise to an impHed assent by shippers, be so general and universal in the trade, and at the port of shipment, that everybody shipping goods there must be taken to know that his goods may probably be stowed on deck. In the same case the Master of tho^ EoUs also held that goods placed in a deck-house must be regarded as loaded on deck, and not in the ordinary carrying part of the ship. But this appears to be a question of fact in each case ; and having regard to the manner in which steamers are now commonly built, it cannot perhaps be said that cargo must always be below the main deck in order to be ia the ordinary loading space of the ship (iz;). Statutes as to 282. The carriage of deck-loads of timber into ports of the United Kingdom during the winter months is prohibited by the Merchant Shipping Act, 189i. By sect. 451, — "(1) If a ship, British or foreign, arrives between the last day of October and the sixteenth day of April in any year at any port in the United Kingdom from any port out of the United Kingdom, carrying as deck cargo, that is to say, in any uncovered space upon deck, or in any covered space not included in the cubical contents forming the ship's registered tonnage, any wood goods as hereinafter defined, the master of that ship, and also the owner, if he is privy to the offence, shall be Hahle to a fine not exceeding five pounds for every hundred cubic feet of wood goods carried in contravention of this section. " (2) Provided that a master or owner shall not be Hable to any fine under this section — " fa) in respect of any wood goods which the master has considered it necessary to place or keep on deck during the voyage on account of the springing of any leak, or of any other damage to the ship received or apprehended ; or " (b) if he proves that the ship sailed from the port at which the wood goods were loaded as deck cargo at- such time before the last day of October as allowed a sufficient interval (0 2 M. & a. p. 236. [x) See Lowndes' Gen. Av. (4th)j («) Times, May 19, 1885 ; affirmed 12 p. 63; The Neptune, 16 L. T. 36; •A- C. 11. York- Antwerp Rules, 1890, I., App. 0^ THE LOADING. 325 according to the ordinary duration of the voyage for the ship Sect. 282 to arriTO before that day at the said port in the United Kingdom, hut was prevented from so arriving by stress of ■weather or circumstances beyond his control ; or "(c) if he proves that the ship sailed from the port at which the ■wood goods were loaded as deck cargo at such time before the sixteenth day of April as allowed a reasonable interval according to the ordinary duration of the voyage for the ship to arrive after that day at the said port in the United Kingdom, and by reason of an exceptionally favourable voyage arrived before that day. " (3) For the purposes of this section the expression " wood goods " means — "(a) any square, round, waney, or other timber (y), or any pitch pine, mahogany, oak, teak, or other heavy wood goods whatever ; or " (b) any more than five spare spars or store spars, whether or not made, dressed, and finally prepared for use ; or "(c) any deals, battens, or other light wood goods of any descrip- tion, to a height exceeding three feet above the deck. "(4) Nothing in this section shall affect any ship not bound to a port in the United Kingdom which comes into any port of the United Kingdom under stress of weather, or for repairs, or for any other purpose than the delivery of her cargo." Under a former statute (16 & 17 Yict. c. 107, ss. 170—172), now repealed, by which ships -were prohibited from clearing out of certain British ports ■with deck loads of timber between Septem- ber 1st and May 1st, and mast^s of ships carrying timber were required before sailing to obtain certificates to the effect that the whole cargo was below deck, it was held that a voyage commenced after September 1st, with a timber cargo, partly on deck, and ■without the prescribed certificate, was illegal ; and that a policy of insurance on the goods, where the assured knew of the illegal conduct, and assented to it, was void (s). But not so where the assured was ignorant of the illegal intention (a). The shipowner in such a case is not implicated by his master's illegal conduct, if he has been personally innocent. For, although the master has implied authority to direct the manner in which the cargo shall be stowed, that authority is limited to conduct that is la^wful. In the absence of express orders to the contrary, (y) Morriss ». Thormondsen, 60 J. P. (a) Ibid, (on demurrer), 27 L. J., Q. B. 644. 408 ; Wilson v. Rankin, 34 L. J., Q. B. («) Ounard v. Hyde, 29 L. J., Q. B. 6. 62 ; L, R., 1 Q. B. 162. 326 THE VOYAaE. Sect. S82. obedience to the law is implied in the shipowner's instructions (6). And the mere absence of the clearance certificate does not make the ship unseaworthy, so as to vitiate a policy on freight (c). Statute as to 283. The loading of grain cargoes in bulk is also controlled gram m . ^^ ^^^ Merchant Shippiag Act. Grain, for the purpose of the Act, means any corn, rice, paddy,, pulse, seeds, nuts, or nut kernels. And the Act applies to ships carrying cargoes of which grain forms a portion amounting to more than one-third of their registered tonnage — ^reckoning one hundred cubic feet, or two tons weight, as the case may be, of grain, to each ton of registered tonnage (sect. 456). By sect. 452,— " (1) Where a grain cargo is laden on board any British, ship all necessary and reasonable precautions (whether mentioned in this part of this Act or not) shall be taken ia order to prevent the grain cargo from shifting. " (2) If those precautions have not been taken in the ease of any British ship, the master of the ship and any agent of the owner who was charged with the loading of the ship, or the sending of her to sea, shall each be liable to a fine not exceeding three hundred pounds, and the owner of the ship shall also be liable to the same fine, unless he shows that he took all reasonable means to enforce the observance of this section, and was not privy to the breach thereof." By sect. 453,— " (1) Where a British ship laden with a grain cargo at any port in the Mediterranean or Black Sea is bound to ports outside the Straits of Gibraltar, or where a British ship is laden with a grain cargo, on the coast of North America, the precautions to prevent the grain cargo from shifting set out in the 18th schedule to this Act shall be adopted, unless the ship is loaded in accordance with regulations for the time being approved by the Board of Trade (<^), or is constructed and loaded in accordance with any plan approved by the Board of Trade. (J) Wilsont'. EanMn, 34 L. J., Q. B. grain cargoes laden at those ports in 62 ; L. R., 1 Q. B. 162. accordance with certain approved rules (c) Hid. of (1) the Board of Underwriters of New {d) OflScial notices have from time to York, (2) the National Board of Maiine time been issued by the Board of Trade Underwriters, New York, (3) the New sanctioning modifications of the rules ia Orleans Board of Underwriters, (4) the the Schedule. The notices now in force Wheat TariflE Association at San Fran- are dated April, 1897. They provide, as cisoo, (5) certain regulations for loading to grain cargoes from ports on the coast grain cargoes in bags at San I^ancisoo, of North America, that the precautions or (6) certain rules of the ofiSce of the required by the Act shall not apply to port warden of the harbour of Montreal, THE LOADING. 327 " (2) If tHs section is not complied with in tte case of any ship, Sect. 283. reasonable precautions to prevent the grain cargo of that ship from shifting shall be deemed not to have been taken, and the owner and master of the ship charged with loading her or sending her to sea shall be liable accordingly to a fine under this part of this Act. " (3) Nothing in this section shall exempt a person from any liability, civil or criminal, to which he would otherwise be subject for failing to adopt any reasonable precautions which, although not mentioned in this section, are reasonably required to prevent grain cargo from shifting." The 18th Schedule to the Act is as follows : — " (1) There shall not be carried between the decks, or, if the ship has more than two decks, between the main and upper decks, any grain in bulk, except such as may be necessary for feeding the cargo in the hold, and is carried in properly-constructed feeders. " (2) Where grain (except such as may be carried in properly-con- structed feeders) is carried in bulk in any hold or compartment, and proper provision for filling up the same by feeders is not made, not less than one-fourth of the grain carried in the hold or compartment (as the case may be) shall be in bags supported on suitable platforms laid upon the grain in bulk : Provided that this regulation with respect to bags shall not apply — " (a) To oats, or cotton seed ; nor " (b) To a ship which is a sailing ship of less than four hundred tons registered tonnage, and is not engaged in the Atlantic trade ; nor " (c) To a ship laden at a port in the Mediterranean or Black Sea if the ship is divided into compartments which are formed by substantial transverse partitions, and are fitted with longitudinal bulkheads or such shifting boards as herein- after mentioned, and if the ship does not carry more than one-fourth of the grain cargo, and not more than one thousand five hundred quarters in any one compartment, bin, or division, and provided that each division of the lower hold is fitted with properly-constructed feeders from the between decks; nor " (d) To a ship in which the gi-ain cargo does not exceed one- haK of the whole cargo of the ship, and the rest of the cargo consists of cotton, wool, flax, barrels or sacks of flour, or other suitable cargo so stowed as to prevent the grain in any compartment, bin, or division from shifting. "(3) "Where grain is carried in the hold or between the decks, whether in bags or bulk, the hold or the space between the decks sanctioned by the Montreal Board of Trade, by its notice of the above date, Trade. With regard to the Mediter- approved certain regulations specified ranean and Black Sea the Board of in the notice. 328 THE VOYAGE. Sect. S83. shall be divided by a longitudinal bulkhead, or by sufficient shifting boards, -which extend from deck to deck or from the deck to the keelson, and are properly secured, and if the grain is in bulk, are fitted grain-tight with proper fillings between the beams (e). " (4) In loading, the grain shall be properly stowed, trimmed and secured." Sect. 454 provides that the master shall, under penalty, give certain notices as to the ship's draught and clear side, and as to the cargo and the mode in which it is stowed, to the consular officer or officers of customs at the ports of loading and discharge. («) See The Eothbiiry, 13 P. D. 119. CHAPTER X. PEOCEEDING ON THE VOYAGE — POETS OF EEFUGE. 329 SEOT. Commenoement of voyage 284 Must he prosecuted -without delay or deviation 285 "Liberty to call" 286 Losses during improper deviation. . 287 Loss after deviation ended 288 Deviation justified to avoid danger. 289 Temporary obstacle 290 Danger peculiar to ship or to cargo 291 Deviation justified to save life , . . , 292 " Liberty to tow and assist " ...,292a Duty to prevent spread of mischief in cargo 293 Master's authority for cargo owner on emergency 29i Authority to incur expenses for cargo owner — Duty to communi- cate 295 LiabUityof cargo ownerfor expenses 296 Authority to sell perishing goods when necessary — Meaning of ne- cessary 297 Duty to save cargo — Sale in one mass 298 Owners to be communicated with if practicable 299 Shipowner responsible for improper sale-^Though voyage terminated. 300 Sale without authority does not transfer the goods 301 Ship disabled — ^Duty to repair and complete voyage 302 SECT. Opinion of Oookbum, C. J., in At- wood V. Sellar 303 Shipowner's right to tranship .... 304 Duty to act for cargo owner if voyage abandoned 305 Contract for cargo owner must be fair 306 Effect on freight of abandoning voyage 307 Abandonment at sea 308 Master may delay reasonably be- fore abandoning at port of refuge 309 JBottomrt/. Power to hypothecate or sell cargo for repairs 310 Must be done prudently in interest of cargo owner 311 Hypothecation by bottomry bond. . 312 Where part of cargo charged left behind 313 Bottomry for necessaries 314 Cargo must have been shipped .... 315 Duty to communicate 316 Enforcement of bottomry bonds — Prior charges on ship 317 Cargo not resorted to till ship and freight exhausted 318 Prior claims on cargo 319 Indemnity for goods sold or bot- tomried for repairs — Shipowner liable for proceeds of sale 320 284. It is the shipowner's duly to make the ship ready for Commenoe- sailing, and to do whatever is necessary to enable her to get TOvage. away. Thus he must pay the port charges {a), and obtain the requisite clearances and other papers (b). The ship ought to be («) Abbott (5th), p. 226 ; (13th) 396. 127—133. As to the meaning of " olear- (J) See Customs Laws Consolidation ance," see Thahnanu v. Texas Star Act, 1876 (39 & 40 Vict. c. 36), ss. Flour Mills, 4 Com. Ca. 265. 330 THE VOYAGE. Sect. 284. provided with all such papers as may he needful to enahle her to perform the intended voyage with safety and despatch (c) . And the voyage ought to he commenced without needless delay. If there has heen an improper loss of time after the goods have been delivered by the shippers for shipment, and damage or loss results, the shipowner is answerable. Thus, where there had been negligent delay in provisioning the ship, so that she was detained at the port of loading, and was, consequently, frozen up there for a long time, the shipowner was liable to the charterers for consequent damages (d) . But the master ought not to sail unless it is prudent to do so, having regard to the state of the weather. And if the port is one of difficulty, and a pilot can be procured, he ought not to sail without one (e). Must be pro- 285. The voyage must be prosecuted without unnecessary out delay or delay or deviation. The shipowner's undertaking is that he will be diligent in carrying the goods on the agreed voyage, and vdll do so directly, without any unnecessary deviation. But this under- taking is to be understood with reference to the circumstances that arise during the performance of the contract ; he is not answerable for delays or deviations which are occasioned or become necessary without default on his part (/). Subject to any customary practice, the ship ought to take the most direct, safe, course to her destination. If the voyage is to a round of ports they ought to be taken in the order in which they are named in the contract, whether that is their geographical order or not(g'). But i£ the intended places of call have not been named, but denoted by a general description, as " ports in the West India Islands," they must be taken in the order in which they occur on the agreed voyage (A). Where, however, there is a settled usage for ships upon the agreed voyage to take some particular course, or to call at {c) Levy v. Coaterton, 4 Camp. 389. 226 et seq. ; (13tli) 396 ; Maol. 420, Cf. Button v. Powlea, 30 L. J., Q. B. (yj Briddon ■.-. G. N. RaU. Co., 28 169 ; 31 L. J., Q. B. 191. l. j._ ^^ gj . Baylor v. G. N. RaU. («0 The Wmielm, 2 Asp. 0. S. 343. Co., L. R., 1 0. P. 385 ; Story's Bail. See M'Audrew v. Adams, 1 Bing. N. C. «. 545 (a) ; Aug. Carr. s 289. 29. {e) See Phillips v. Headlam, 2 B. & (^) ^eatsou v. Haworfch, 6 T. R. 531. Ad. 380 ; Law v. Hollingworth, 7 T. R. ^^« Marsden v. Eeid, 3 East, 572. • 160 ; The WiUiam, 6 C. Rob. 316. As (A) Gairdner v. Senhouse, 3 Taun. to sailing with convoy, see Abb. (5th), 16 ; Andrews v. MelUsh, 5 Taun. 496. PEOCEEDINa ON THE VOYAGE. 331 particular intermediate ports, that usage -will form part of tlie Sect. 885. contract, unless it is expressly excluded (i). It is said that the practice must he a constant one, and not merely occa- sional (k) ; but this, perhaps, depends upon the kind of voyage undertaken. On a coasting voyage, for example, the practice as to the ports to he called at may be less regular than on long voyages {I). 286. The contract sometimes gives liberty to touch and stay "Liberty to at intermediate ports, or to do other things which would other- wise be deviations from the voyage. Such clauses, however, are more frequently found in policies of insurance, and the cases upon them have arisen out of contracts of that kind. The whole subject of deviation will be found discussed in works on marine insurance. Liberty to do something outside the voyage must be construed with reference to that, and as iatended to be consistent with it. §0 that a general liberty to call will be understood to mean at ports lying in or near the usual and direct course of the agreed voyage (m) ; and it will not generally warrant putting in for purposes not connected with the voyage (m). If, however, the shipment is of a part cargo only the general liberty may justify calling at other ports, or at other parts of the named loading and discharging ports, for the purpose of taking in or discharging other cargo (o). In acting upon a liberty of this kind there must be no unnecessary delay in doing what is permitted (p). In Leduc v. Ward (q), goods were shipped at Fiume to be carried to Dunkirk. The bill of lading reserved " liberty to call at any ports in any order, and to deviate for the purpose of saving life or property." Instead of proceeding direct to Dunkirk, the ship went first to Glasgow, out of her course, and was lost, with her cargo, off the Clyde. It was held that the shipowners were not protected by the clause giving liberty to call. (j) See. Oormack -i/. Grladstone, 11 («) Hammond v. Eeid, 4 B. & Aid. East, 347. 72 ; Solly v. Whitmore, 5 B. & Aid. 45. (k) See Amould, Mar. Ins. (6th), , \ n xa au -j ,ir,n^\ ^ n i^ ^ ' ' (") CafBu V. Aldndge, (1895) 2 Q. B. P' *^^- 366, 648. (l) See as to coasting voyages, Lowry ». Eussell, 8 Pick. 366; Ang. Carr., (*) African Merchants v. British and 179. Foreign Mar. Ins. Co., L. E., 8 Ex. (m) Leduc v. Ward, 20 Q. B. D. 475 ; ^^^' "Williams v. Shee, 3 Camp. 469. Amould Ins. (6th), p. 472. (?) 20 Q. B. D. 475. 332 THE VOYAGE. Sect. 886. Lord Esher said (r), "It was argued that that clause gives liberty to call at any port in the world. Here, again, it is a question of the construction of a mercantile expression used in a mercantile document, and I think that as such the term can have hut one meaning, namely, that the ports, liberty to call at which is intended to he given, must he ports which are substantially ports which will he passed on the named voyage. ... I believe the term has always been interpreted to mean that the ship may caU at such ports as would naturally and usually be ports of call on the voyage named. If the stipulation were only that she might call at any ports, the invariable construction has been that she would only be entitled to call at such ports in their geographical order ; and therefore the words ' in any order ' are frequently added ; but in any case it appears to me that the ports must be ports substantially on the course of the voyage." In Glynn v. Margetson (s) a similar limited construction was put by the House of Lords, affirming the Court of Appeal, upon a clause giving " liberty to proceed to and stay at any port or ports in any rotation in the Mediterranean, Levant, Black Sea or Adriatic, or on the coasts of Africa, Spain, Portugal, France, Great Britain and Ireland, for the purpose of delivering coals, cargo or passengers, or for any other purpose whatsoever." Oranges were loaded at Malaga, under a bill of lading which described the ship as " now lying in the port of Malaga bound for Liverpool ; " but after loading the oranges she went for further cargo to Burriana, a port on the north-east coast of Spain, before proceeding to Liverpool. The shipowners were held responsible for the decayed condition of the oranges, consequent on the delay. In The Dunbeth {t), the charter party provided that "should frost ensue .... after the steamer had arrived at port of loading, and the vessel is compelled to leave to avoid being frozen in, the master is at Kberty to leave .... with part cargo, and to fill up for steamer's benefit at any open Black Sea, AzofE or Mediterranean port, for United Kingdom, Continent or Mediterranean." Gorell Barnes, J., held that there must be no unreasonable departure from the original voyage ; either in filling up or in discharging the additional cargo so taken. (r) 20 Q. B. D. at p. 482. 337 ; and see White v. Granada Steam- ship Co., 13 T. L. E. 1. (5) (1893) A. C. 351 ; (1892) 1 Q. B. (<) (1397) p. jgg. PROCEEDING ON THE VOYAGE. 333 287. When a vessel has deviated from her proper course, the Sect. 387. shipowner is not only liahle for the delay, hut he hecomes ahso- Loss during lutely responsible for any loss or damage to the goods which may deviation, occur during the deviation, and which can be attributed to it. He is not protected by the exception of perUs in the contract. " If a bailee elects to deal with the property entrusted to him in a way not authorized by the bailor, he takes upon himself the risks of so doing, except where the risk is independent of his acts and inherent in the property itself " (m). Goods were shipped at Hull on a vessel trading to Stockwith and G-ainsborough, under an express promise to deliver them at Stockwith on the way to Gainsborough. On arrival at Stockwith the master refused to deliver the goods then, and carried them on, intending to deliver on the return voyage. The vessel sank, however, before reaching Gainsborough, without any fault of the master or crew, and the goods were damaged. It was held that the shipper was entitled to full compensation from the owners of the vessel ; although they had given notice that they would not be liable for any damage, unless it resulted from want of ordinary care and diligence in the master and crew, and then only for ten per cent, of it {x). It was contended that the shipowners were not liable, on the ground that the non-delivery was misconduct on the part of the master ; but Lord Kenyon said, " The defendants are responsible for the acts of their servant in those things that respect his duty under them, though they are not answerable for his misconduct in those things that do not respect his duty to them ; as if he were to comimit an assault upon a third person in the course of his voyage." In Davis v. Garrett (y), a vessel carrying lime under a contract which excepted fire and all and every other dangers and accidents of the seas, &c., was taken out of her proper course, and while out of it fell in with bad weather. The lime was consequently wetted and heated, so that the vessel took fire, and had to be run ashore ; («) Per Grove, J., in LiUey v. Double- quent upon failure to stow it in aocor- day, 7 Q. B. D. 510, p. 511. Cf. Lind- dance with the contract. Bay V. Soholefield, 24 Seas. Oa. (4th) 530, , , „, . / [■ i! » ■which do not amount to deviation. It (i) 18 Sess. Ca. (4th), 153, 342 THE VOYAGE. Sect. 293. at the port of disoliarge by negligence of an engineer, for whicli, hj the terms of the contract, the shipowner was not liable. If immediate information had been given to the receivers, the damaged cake could have been removed from the hold and so treated as to make the damage slight ; but the information was kept back by the master and owners with a view to concealing the cause of damage. The owners were held liable for the consequent aggra- vation of the loss. Master's 294. The master of the ship is tjie servant of the shipowner, c^Tgo'l^eJ and has custody of the cargo primarily for the purpose of carrying on emergency, ^^j. ^-^^ shipowner's contract. Emergencies, however, sometimes occur during the course of a voyage, in which a need arises for the presence of someone who can act on behalf of the owner of the goods, with an authority beyond that ordinarily given by the contract. And in such cases the master, or other person in com- mand of the ship, has this authority and duty to act for the cargo owners. He carries with him a power, in case of necessity, to deal with their goods as though he represented them (o). Thus he is empowered, in cases of need, to sell or pledge the goods without any communication with the owners, and to give a complete title to them to the buyer or pledgee ; or he may at times incur special expenditure for the purpose of preserving particular goods, or of forwarding them to their destination, for which expenditure the owner of the goods will be liable (d). But although such acts are done by the master on behalf of the owner of the goods, and with his implied authority, so as to bind him, they are stUl done by the master as servant of, and as repre- senting the shipowner. And the shipowner is responsible if he exercises that power improperly. " The master is the general agent of the owner for the purpose of the voyage, and for the exercise of that agency is entrusted with powers, to be used at his discretion, in which the owner who selects him is satisfied to confide. If, therefore, the master exercises a power which circum- stances might justify, so that it is within the general scope of his functions, and it turns out that the facts do not warrant its exercise in the particular instance, as, for instance, if he unnecessarily throw goods overboard in a panic, or sell goods without justifying (c) The Gratitudine, 3 C. Rob. 240. against a colliding ship, in a foreign (d) As to the master's authority to port, see per Butt, J., in The Reinbeok, institute a suit in rem on behalf of cargo 60 L. T. 209. POETS OF REFUGE. 343 need, the owners are held liable for his acts, according to the rule Sect. 294. ' omnia facta magistri dehet prEestare qui eum praeposuit ' — Pothier, Louages Maritimes, 48 ; Ewhank v. Nutting (e) ; and for a like reason they must be liable for his culpable omissions " (/). 295. Where, then, it becomes in prudence necessary to incur Authority to extraordinary expenses for the preservation of the cargo, as by for cargo unloading and drying it, or by employing men to save it from the °'"''^'"- ■wreck of the ship, the master is authorized to incur such expenses on behalf of the owner of the goods {g). And if he has properly incurred and paid expenses of this kind, and the damage arose from causes for which the shipowner was not responsible, he has a lien upon the goods for the amount {h). Also, the master may, if necessary, raise money by a respondentia bond upon the goods, in order to do what is required for their safety (») . This authority of the master does not arise where the owner of Duty to oom- ,■, , ,. j.j.''j.i,-j T. -ij munioatewith the goods or his representative is at hand, or can be communicated cargo owner. with, without imprudent delay (/c) . The power is analogous to that with which the master is clothed, when necessary, of selling the goods at a port of refuge if they cannot be prudently carried to their destination. And the cases, to be referred to presently, upon that subject show how strictly the master is required to obtain and act upon instructions from the owner of the goods, if that is practicable (/). But where the owner was at the port into which the ship had put, and refused to give any instructions, he was held liable to repay expenses which the master had properly incurred in treating the cargo, in order to carry it on (m). 296. The cargo owner is only bound to repay expenses which Liability of have been incurred specially for the benefit of his goods. Ex- for^xpeMes. penditure on behalf of the adventure generally, as, for example, in («) 7 0. B. 797. 367. Cf. G. N. Rail. Co. v. Swaffield, (/) Per Willes, J., Notarat;. Hender-. L. E., 9 Ex. 132. son, L. E., 7 Q. B. p. 236. And see (i) Cargo ex Sultan, Swa. 504; The per Brett, L. J., Whiteoross Wire Co. v. Glen Manna, Lush. 115. Sa-rill, 8 Q. B. D. 653, at p. 663. (A) Cargo ex Argos, L. E., 6 P. C. (ff) Cargo ex Argos, L. E., 5 P. C. 134 ; Cargo ex Sultan, supra. 134 ; Hingston ». Wendt, 1 Q. B. D. (0 Aoatos v. Bums, 3 Ex. D. 282 ; 367 ; Notara v. Henderson, L. E., 7 Australasian Steam Nav. Co. v. Morse, Q. B. p. 235 ; G. N. Eaal. Co. v. L. R., 4 P. C. 222 ; The Hamburg, 33 SwafBeld, L. E., 9 Ex. 132. Cf. The L. J., Ad. 116 ; infra, s. 299. Norway, 13 L. T., N. S. 50. (m) Garriook d. "Walker, 1 Sess. Ca. (A) Hingston v. Wendt, 1 Q. B. D. {4th), 100. 341 THE VOYAGE. Sect. S96. putting into a port of refuge, can only be charged to him as a matter for general average contribution, of which we shall speak later. In the Cargo ex Argos (n), barrels of petroleum had been shipped at London for Havre. The authorities at Havre would not allow them to be landed there, and the shipper failed to present the bill of lading and take delivery. The master, therefore, brought them back to London. It was considered that that was the best course that could be taken in the shipper's interest ; and the shipowner was held entitled to compensation for bringing them back, and to be repaid certain expenses at Havre. But he was not allowed to charge expenses which had been incurred in endeavouring, without success, to land the goods at Honfleur and TrouviUe. The liability for the expenses appears to be upon the owner of the goods for the time being ; not necessarily upon the party to the contract of carriage (o). Authority to 297. Again, in case of necessity, the master has power, and it sell perishing .■,.-,,. , . , , ,, . goods when IS his duty, to Sell the goods, m order to save their value, or some necessary. ^^^ ^^ ^^^ rj\^^ ^j^jp ^^^^ h&Ye reached an intermediate port with the goods so damaged, or perishing from their own infirmities, that it may be impossible to take them to their intended destination without sacrificing them ; or the cost of putting them into a condition in which they might be carried on may be so great as to exceed their value when put in order. If, then, the master is the only person within reach who can decide what shall be done, he becomes empowered to sell the goods on behalf of their owner. The conditions necessary in order to make such a sale valid are — (1) that a real necessity must exist for the sale, and (2) that it must be practically impossible to get the owner's instructions in time as to what shall be done. In Oannan v. Meabum {p), a- ship on a voyage from Calcutta to London put into the Mauritius in a sinking state, the effect of bad weather. The captain, finding, as he considered, that the expense of repairing the ship would be so great as to frustrate the adventure, placed her and her cargo at the disposal of the Yice- («) L. E., 5 P. 0. 134. Cf . Christy v. reqtuire that the master shall do what Row, 1 Tauu. 299. becomes necessary. (o) See Christy v. Row, 1 Taun. 300, {p) 1 Biug. 243. Cf. Underwood ■^. p. 315. Cf . Soaife v. Tobin, 3 B. & Ad. Robertson, 4 Camp. 138. Under the law 623. But this seems inconsistent with of Germany, see The August, (1891) P. the right of the party to the contract to 328, supra, s. 211. POKTS OF REFUGE. 345 Admiralty Court, and they were sold by order of tliat Court. Sect. 297. PlaintifE was the owner of seventy-two chests of indigo, which formed part of the cargo, and he sued the shipowners for not deUTering them. The jury found that the ship might have been repaired, and also that the goods might have been transhipped and forwarded. It was held that the sale was not justified, and that the shipowners were liable. In The Australasian Steam Nav. Co. i\ Morse {q), a vessel with a cargo of wool was wrecked off the coast of Queensland, and the wool was taken out of her in a damaged state and brought to Eockhampton. It appeared that it was in such a state that it could neither be carried on nor stored ; that it would in two or three days have lost nearly all value, unless it were at once treated by various processes ; and that such treatment could not be obtained on a large scale. The wool was accordingly sold by the master to a number of purchasers in small lots. And the jury found that he had acted for the best, and as a wise and prudent man, for the interest of the owners of the wool. It was held in the Privy Council that the sale was justified. " The word ' necessity,' when applied to mercantile affairs, where Meaning of the judgment must in the nature of things be exercised, cannot, of "'^"^^^^'^y course, mean an irresistible compelling power. What is meant by it in such cases is the force of oircimistances which determine the course a man ought to take. Thus, where by the force of circum- stances, a man has the duty cast upon him of taking some action for another, and under that ■obligation adopts a course which, to the judgment of a wise and prudent man, is apparently the best for the interest of the persons for whom he acts in a given emergency, it may properly be said of the course so taken that it was in a mercantile sense necessary to take it. ... A sale of a cargo by the master may obviously be necessary in the above sense of the word, although another course might have been taken in dealing with it. For instance, if in this case the wool, which had no value but as an article of commerce, could have been dried and re-packed, and then stored or sent on, but at a cost to the owner clearly exceeding any possible value of it to him when so treated, it would plainly have been the duty of the master to sell, as a better course for the interest of the owner of the property, than to save it by incurring on his behalf a wasteful expenditure. (?) L. E., 4 P. 0. 222. 346 THE VOYAGE. Sect. 297. In other words, a commercial necessity for the sale would then arise, justifying the master in resorting to it " (r). Duty to save 298. The rule thus laid down was approved of by the Court of cargo. Appeal in Acatos v. Burns (s). But the subsequent case of The Atlantic Mutual Ins. Co. v. Huth (i) shows that it is not sufficient for the master to come prudently, and in good faith, to the con- clusion that a sale is the best course for the persons interested. A ship, with a valuable cargo, had been wrecked on April 19th, on a rock off Point Padrone, on the eastern side of Algoa Bay, a place distant fifty miles by sea and about eighty by land from Port Eliiiabeth. News of the wreck soon reached Port Elizabeth, and many persons came to the scene of it. The captain, after taking advice, decided that the best thing to be done was to sell the ship and cargo as they lay ; and accordingly they were sold by auction, after a brisk competition, on April 30th. The purchasers rescued much of the cargo, but on the 19th of June, while a large part was stiU on the wreck, the ship went to pieces. It was held that the gale was made improperly, without any implied authority from the cargo owners ; and that their underwriters, to whom they had abandoned, were entitled to claim the rescued goods, subject to an allowance to the purchasers for salvage, and for expenses incurred in saving and forwarding them. " In our opinion, purchasers of a cargo from a master cannot justify the sale unless it is established that the master used all reasonable efforts to have the goods conveyed to their destination, and that he could not by any means available to him carry the goods, or procure the goods to be carried, to their destination as merchantable articles, or could not do so without an expenditure clearly exceeding their value after their arrival at their destination. ... It is, in our opinion, under these circumstances impossible to hold that it is established that the captain could not have induced some person to undertake the salvage of the cargo. Certainly the master did not use all means within his power, or make any effort either to procure funds for enabling him to save the cargo, or to induce others to save the cargo " (««). (r) Australasian Steam Nav. Co. v. (t) 16 Ch. D. 474. Morse, L. K., 4 P. C. 222, per Sir , n »xi ^- -.r . -r ^ ^ „ T\T t a -Ii, i o9n r« Tji. 1 M Atlantic Mut. Ins. Co. i). Huth, Montague Smith, at p. 230. Cf. Phelps «. Hill, (1891)1 Q.B. 605; The Curfew, ^® ^^- ^- PP- ^^^' ^^S. See also (1891) P. 131. Tronson v. Dent, 8 Moo. P. C. 419; (s) 3 Ex. D. 282. Underwood v. Eobertson, 4 Camp. 138. POETS OF REFUGE. ^47 A further impropriety in tlie sale was that the ship and the Sect. 898. various portions of the cargo, not all exposed to equal risks, were Sale of cargo . ° . . , in one mass. all sold m one mass. " It is difficult to see how, as against the owners of the goods practically not perishable, the master could under any circumstances justify the sale, in one mass, of the chances of saving hoth the perishable and non-perishable portions of the cargo, and the vessel" («). 299. The other condition of the master's authority to sell is, Owners to be that the owners of the cargo must have been communicated oatedwith with and their instructions taken before selling, if practicable. ^"^^^ ^""^ ®' Whether that was so must be judged having regard to all the circumstances of the particular case. The master is not to delay for instructions where delay would be clearly imprudent. But if there is a fair expectation of obtaining directions, either from the owners of the goods, or from agents known by the master to have authority to deal with the goods, within such a time as would not be imprudent, the master must make every reasonable endeavour to get those directions ; and his authority to sell does not arise until he has failed to get them (y) . Should the master fail to seek for instructions when he might get them, or should he act against the instructions he receives, any sale or hypothecation of the cargo he may make under those circumstances is wrongful and void. In Acatos v. Burns (z), maize had been shipped in a general ship at Constantinople for Liverpool. On putting into Smyrna the master found that the maize had become heated, and could not be kept on board without danger to the rest of the cargo. He therefore discharged it into lighters ; and endeavours were made, without success, by the ship's agent, to get it taken to Liverpool by other steamers. The shipper of the maize, agent of the owner of it, was com- municated with, and he required the maize to be forwarded ; but after about a fortnight's delay it was sold by auction, in spite of the shipper's protest. The jury found that the sale was a prudent measure ; but that it was not of such urgent necessity as to give no time for communicating with the owner. Held that the {x) 16 Cli. D. p. 483. burg, 32 L. J., Ad. 161 ; 33 L. J., Ad. (y) Australasian. Steam- Nav. Co. v. 116; The Bonaparte, 8 Moo. P. 0. 459. Morse, L. R., 4 P. 0. 222 ; The Ham- («) 3 Ex. D. 282. 348 THE VOYAGE. Shipowiier responsible for improper sale: Though voyage teiminated. Sect. 299. shipowner was liable for what the maize would have been worth to the owner if it had not been sold. 300. Where goods have been sold improperly by the master, he is responsible for their value {a). And if the sale was made by him in good faith, meaniag to perform the duties of his employment as master, but was improper, then the shipowner also is responsible for his act to the owner of the goods (5). And should the master sell fraudulently, the shipowner will still be liable on the contract to carry, unless he is excused by some exception. Or if the master has neglected to sell the goods when he ought to have done so, having regard to the freighter's interests, the shipowner is answerable for the consequences of that neglect (c). This responsibility of the shipowner probably continues, although the acts or omissions of the master have occurred after the voyage has in fact been abandoned, and though the completion of the voyage may have been prevented by excepted perils. For there is, it seems, an implied undertaking on the part of the shipowner that, in the event of the voyage being in any way prevented, he wUl still, by his servants, do whatever may be practicable, either to tranship and forward the goods to the intended destination, or to preserve them and deliver them over to their owners {d). 301. Where a sale of cargo has been made by the master under circumstances which gave him no authority to sell, and the owner of the cargo has done nothing to ratify the master's action, the sale does not pass the property in the goods to the purchaser. The true owner remains entitled to follow and claim them, wherever they have got to (e) ; unless the goods have been sold in market overt to a purchaser who had no knowledge of the circumstances (/). The master's authority to sell is to be determined by reference to the law of the country to which the vessel belongs, wherever the Q. B. at p. 236. Sale without authority does not transfer the goods. (a) Tronson ■!!. Dent,' 8 Moo. P. 0. 419. In Atlantic Mut. Ins. Co. v. Huth, 16 Ch. D. 474, the action against the master was dismissed. (S) Cannan v. Meabum, 1 Bing. 243 ; Ewbankv. Nutting, 7 C. B. 797 ; Aoatos V. Bums, 3 Ex. D. 282. {o) Notara ». Henderson, L. R., 7 w ■a, B. 293. (e) Atlantic Mutual Ins. Co. v. Huth, IG Ch. D. 474 ; Freeman v. East India Co., 6 B. & A. 617 ; Morris ii. Robinson, 3 B. & C. 196. (/) Benj. Sale (3rd), pp. 7 ei seq. POETS OF REFUGE. 349 sale may have taken place. By the act of shipping the goods Sect. 301. authority is impliedly conferred upon the master to deal with them, suhjeot to the express contract, in accordance with the rules of law and of the flag (g). And no other authority than that can he implied. But if the master sells the goods in a country foreign to his flag, under circumstances in which by the law of that country he is empowered to do so, the purchaser acquires a good title ; although hy the law of the flag the master may not have had authority to sell under those circumstances. This was decided in Cammell v. Sewell (/«), in the Exchequer Chamber. A cargo of deals had been shipped in Eussia for an English merchant on board a Prussian vessel, and were consigned to him at Hull. The vessel was wrecked on the coast of Norway ; but the cargo was saved, and might have been sent on. The captain, however,, sold it to one who purchased in good faith ; and he re-sold it to the defendants, who sent it to England. There it was claimed by the plaintiffs in right of the original owner. It appeared that by the law of Norway the captain, though responsible to his owners and to the cargo owners, was able to and did confer a good title upon the innocent purchaser. That being so, it was held by the Exchequer Chamber (Byles, J., dissenting) that the property passed upon the sale, and did not again change when the goods were brought to England. " "We think that the law on this subject was correctly stated by the Lord Chief Baron in the course of the argument in the Court below, where he says, ' If personal property is disposed of in a manner binding according to the law of the country where it is, that disposition is binding ieverywhere ' ; and we do not think that it makes any difference that the goods were wrecked, and not intended to be sent to the country where they were sold " (i). 302. When the ship has been disabled, and has put into a port ship diaatlei. of refuge, it is clear that the master, acting on behalf of his employer, the shipowner, must do all that he prudently can to preserve the ship, and to earn the freight by completing the voyage. It is his business to get the ship repaired, and to carry the cargo to {g) The Gaetano and Maria, 7 P. D. 1, 360. 137; The Kamak, L. E., 2 P. 0. 505; (i) 29 L. J., Ex. p. 353. Of. The .Uoyd V. Guibert, L. R., 1 Q. B. 115. Eliza Cornish, 1 Sp. Eo. & Ad. 36 ; (h) 27 li. J., Ex. 447 ; 29 L. J., Ex. and Alcook v. Smith, (1892) 1 Ch. 238. 350 THE VOYAGE. Sect. 302. its destination in her (Jc) ; and if that cannot prudently he done, he ought to tranship the goods iato another vessel and forward them, if it he possible to do so on such terms as to make it profitable to his employer. Duty to ]B^f ag towards the owners of the cargo, there has been some repair and ' i i .i t_ • complete uncertainty as to the obligations of the master and the shipowner voyage. -^Iiom he represents. Is he bound to repair if he can ? And if he does repair, is he bound to carry on the goods ? And, on the other hand, if he does not repair, must he seek for another ship and send the goods on ? When repairs are done at a port of refuge, the cost of them falls entirely upon the shipowner (l), unless the damage repaired was the result of a general average sacrifice (m) ; and it seems to be certain that he is not bound to incur the cost of repairing the ship, so as to enable her to complete the voyage, if that cost will exceed the value of the ship when repaired, together with the net freight which she can earn by completing the voyage. Though if he does so he must still bear the whole expense (m) . Where the ship is in this sense not worth repairing, the shipowner is, in a business sense, prevented from carrying the goods to their destination ; and if the preventing causes are excepted, he is excused from performing his contract (o). If, however, the ship can be repaired without unreasonable sacrifice on the part of the shipowner, and funds for the purpose can be procured, then he is bound to repair her ; and, having done so, is bound to carry on the goods to their agreed destination. He has not in that case been prevented, in a business sense, from performing his contract. Abbott, dealing with the duties of the master to the owners of cargo, said (p) : " The disposal, however, of the cargo by the master is a matter that requires the utmost caution on his part. He should always bear it in mind that it is his duty to convey it to the place of destination. This is the purpose for which he has been entrusted with it, and this purpose he is bound to accomplish by every reasonable and practicable method." And Lord Denman, (Jc) See Benson o. Chapman, 2 H. L. [m) See Chap. XII. 0. 696 ; The Hamburg, 33 L. J., Ad. («) Benson v. Duncan, Hallett v. P- 117. Wigram, supra. (T) Benson v. Duncan, 17 L. J., Ex. (o) De Cuadra v. Swann, 16 C. B., 238; 18 L. J., Ex. 169; Hallett v. N.S. 772 ; Worms «. Storey, 11 Ex. 427. "Wigram, 19 L. J., C. P. 281. {p) (5th), p. 241 ; (13th), p. 412. POETS OF REFUGE, 351 0. J., in Shipton v. Thornton {q), after quoting this passage said : Sect. 302. " It is clear that by the contract the shipowner (and the master as his agent) is bound to carry the goods to their destination if not prevented by some event which he has not occasioned and over ■which he has no control." In Moss V. Smith (r), Cresswell, J., put the matter very distinctly: " What is the contract between the shipowner and a person who puts goods on board to be carried on freight? The shipowner contracts to carry them from port to port : his contract, in the first instance, would be absolute, but he introduces an exception, ' unless prevented by the perils of the sea.' Now, when is a shipowner said to be prevented by the perils of the sea from fulfilling his contract ? Why, when the ship is so much damaged, by perils of the sea as to be rendered incapable of performing the voyage. That is the case when perils of the sea are the only exception introduced into the contract. When a ship has sustained sea damage to a certain extent, she is not, therefore, incapable of performing the voyage because she wants repairs, otherwise the most casnal injury, as the loss of the rudder, without which a ship could not navigate in safety a single mile, would render her incapable. If a ship sustains so much sea damage that she cannot be repaired : if she is at a place where she cannot be repaired and rendered competent to navigate, then she is prevented from fulfilling the voyage by perils of the sea. The Courts have also engrafted this further qualifica- tion, that if the owner can show that the damage sustained by the perils of the sea is so great that he could not prudently and reason- ably be called upon to repair the damage, that he is then prevented from fulfilling his contract by perils of the sea, and he may treat such damage as a total loss ; and the language of the Courts is, that such a measure of damage is a total loss of the ship " (s). A different view of the shipowner's obligation was taken in the careful judgment of Coekburn, 0. J., concurred in by Mellor, J., in Atwood v. Sellar {t). But the doctrine of that judgment has been dissented from {u). And the rule is now established that the shipowner is bound to repair and complete the voyage, unless the (q) 9 A. & B. 314, at p. 333. 9 C. P. 595, p. 601 ; and per Lindley, [r] 19 L. J., C. P. 225, p. 230. J., in Hill v. Wilson, 4 C. P. D. 329, («) And see per Blackburn, J., in p. 333. WUson v. Bank of Victoria, L. R., 2 (t) i Q. B. D. 342. Q. B. 203, p. 211; per Brett, J., in («) See per Lord Blackburn, in Svend- Mavro v. Ocean Mar. Ins. Co., L. E,, sen v. Wallace, 10 A. 0. 404, p. 417. 352 THE VOYAGE. Sect. 302. damage by excepted perils is such that it would be unreasonable to require him to repair her («). " In order to show that she (the ship) was prevented from performing the voyage agreed upon by the perils of the sea, she must have become unnavigable for that voyage, either on the ground that it was impossible to get her afloat again, or that on account of the extraordinary expenditure necessary for that purpose it would be unreasonable to require the shipowner to incur it " {y). And where the shipowner has in fact repaired the ship at the port of refuge, and might have carried on the cargo in her, his failure to do so is a breach of the contract, whether the repairing could reasonably have been required or not (s). 303. There is, however, still some uncertainty as to the precise test to be applied in determining whether the shipowner is absolved from further carrying the goods. In estimating whether he can reasonably be required to repair the ship, for that purpose, ought the freight which will be earned by completing the voyage to be taken into account ? And ought the value of the ship if sold in her damaged state to be considered ? If the obligation to repair and proceed depends upon whether the shipowner would thereby sustain a pecuniary loss, it is obvious that both those elements should generally be brought into the calculation. But if the true test is whether the ship, as a ship, is worth repairing, that is to say, whether when repaired she will be worth the cost of repairing, those elements should be excluded. In Assicurazioni Grenerali v. S.S. Bessie Mon-is Co. {a), the Court of Appeal, affirming Collins, J., held that the shipowner was bound to repair and complete the voyage, if that was practicable in a business sense. Collins, J., had considered that a test of this would be whether the ship was a constructive total loss. But Lord • Esher thought that the rules as to constructive total loss were not applicable as between shipper and shipowner. Without suggesting a definite test. Lord Esher said, " If the cost of the repairs necessary to enable her to complete the voyage contracted for would be more than the benefit which the owner would derive from them, then it would be impossible in a business sense to repair her." (ic) Assiourazioiii Generali v. S.S. at p. 659. Bessie Morris Co., (1892) 1 Q. B. 671 ; (z) Assicurazioni General! v. S.S. 2 Q. B. 652. Bessie Morris Co., supra. (y) Per Bowen, L. J., (1892) 2 Q. B., (a) (1892) 1 Q. B. 571 ; 2 Q. B. 652. PORTS OF REFUGE. 353 The questions of diflSoulty, however, are whether it is sufficient Sect. 303. for the shipowner, in order to excuse himself, to show that he will not under all the circumstances be benefited by repairing and com- pleting the voyage ; or, on the other hand, whether he is bound to repair and proceed if he can repair the ship without losing by that. It is submitted that the value of the damaged ship, as a ship, is not an element to be considered. If it were, the shipowner's obligation to the shipper would depend upon the market for damaged ships at the port of refuge, and might disappear although the damage suffered were only slight {b) . The question whether the freight which may be earned by com- pleting the voyage should be brought into account is more difficult. It may seem reasonable to require the shipowner to repair if he can thereby earn a freight which wUl repay the cost ; even though the repaired ship alone will not be worth that cost. On the other hand, it seems anomalous to allow the measure of the shipowner's obligation to depend upon whether the freight has been paid in advance or not. Where freight has been paid in advance the ship- owner retains it, although the voyage be abandoned (c). His obligation to complete the voyage in such a case should not be lower than where the freight depends on arrival at the destination. Either, then, the freight should be brought iuto the calculation whether it is payable in advance or upon arrival, or else the obli- gation to repair and proceed should be confined to cases in which the value of the repaired ship will equal the cost of repairing. 304. The voyage ought to be completed in the same ship. But SMpowner's " if by reason of the damage done to the ship, or through want of tranship. necessary materials, she cannot be repaired at all, or not without very great loss of time, the master is at Ulerty to procure another ship to transport the cargo to the place of destination" {d). And having done so, although at a rate of freight lower than that agreed [b) On the oorr&ponding question ia Amould Insur. (6th) 1051. relation to constrnotiTe total loss, see («) De Silvale v. Kendal, 4 M. & S. Young V. Turing, 2 M. & Gr. 593 ; but 37 ; Havelook v. Geddes, 10 East, 855 ; see the view there taken questioned in Byrne v. Schiller, L. E., 6 Ex. 20, 319. MoArthur Insur. (2nd) 149 ; Lowndes {d) Abbott (5th), p. 240 ; (13th), Insur. B. 228 ; and of. the definition of a p. 411. And see Luke v. Lyde, 2 Burr, constructive total loss ia Moss v. Smith, 882; Matthews v. Gibbs, 30 L. J., Q. B. 19 L. J., 0. P. 225 ; 9 0. B. 94 ; and in 65. C. — C. A A 354 THE VOYAGE. Seot.-304. for in the original contract, he will he entitled to the fuU agreed freight should the goods arrive (e). When, as in a case of that kind, the master effects the tranship- ment for the henefit of the shipowner, he must be regarded as contracting on his behalf, and not as agent for the owner of the cargo (/) ; and the shipowner continues under the same risks and obligations to the cargo owner during the substituted transport as he would have been under if the conveyance had been continued in his own ship. In The Bemina {g) the master, after a collision, had transhipped the goods into The Avebury, under bills of lading, which excepted negligence in navigation. The transhipment was justifiable, and was done on account'of the shipowners, with a view to earning the freight, and not on account of the plaintiff, the cargo owner. The original shipment was under a charter party which did not except negligence. The goods were lost by negligent navigation of The Avebury. Sir J. Hannen held that the shipowners were liable ; they " were not entitled as between themselves and the plaintiff to substitute any other terms upon which the cargo was to be carried than those which had been agreed upon in the original charter party." But the shipowner is not bound to employ another vessel to complete the voyage to his own loss. If, therefore, the only terms upon which another ship can be got are such that the whole agreed freight and more wiU be absorbed by the expenses of forwarding, the master is entitled, and in duty to the shipowner is bound, to abandon the voyage unless he can complete it in his own ship. And, presumably, the same is true where the freight has been paid in advance. Duty to act 305. StUl the master is bound, as we have seen, to take such for cargo owner if steps as may be prudent to protect the interests of the cargo abandoned, owners ; the shipowner beiug responsible for his performance of that duty. If, then, the further prosecution of the voyage is abandoned, the master has power, and he ought, to act for the cargo owners in transhipping, or making such other arrangements as may be in prudence requisite ; and he may contract on their behalf for the forwarding of the goods. If it is practicable he should obtain («) Shiptonu. Thornton, 9 A. &E. 314. Q. B. 65. (/) See Matthews v. Gibbs, 30 L. J., {g) 12 P. D. 36. POETS OP REFUGE. 355 their Instructions before doing so ; but where, owing to the perish- Sect. 305. able nature of the cargo, or to the expense of storing it, it would be plainly imprudent to delay until they have been communicated with, he has authority to act without instructions {h). And if means of forwarding the goods to their destination upon advan- tageous terms may be obtained by reasonable exertions, then it seems that the shipowner, through his master, is bound to act for the cargo owners in that way (^). " The case now put supposes an inability to complete the con- tract on its original terms in another bottom, and, therefore, the owner's right to tranship will be at an end ; but still, all circum- stances considered, it may be greatly for the benefit of the freighter that the goods should be forwarded to their destination even at an increased rate of freight ; and if so it wUl be the duty of the master, as his agent, to do so. In such a case the freighter will be bound by the act of his agent, and of course be liable for the increased freight. The rule wiU be the same whether the transhipment be made by the shipowner or by the master; and in applying it circumstances make it necessary, on the one hand, to repose a large ■ discretion in the master or owner, while the same circumstances require that the exercise of that large discretion should be very narrowly watched" {k). 306. A contract thus made by the master must be fair in the Contract for interest of the owner of the goods, or he will not be bound by must°bTfaS. it {I). In Matthews v. Gibbs {I), The Planter had been chartered by the defendants to bring a cargo of guano from the Chincha Islands to England, for a freight of 70s. a ton. A cargo was loaded at the Islands and the vessel returned to Callao, whence she was finally to clear. Advances were then made by the defen- dants' agents against the freight. After sailing from Callao The Planter was compelled to put back owing to a leak, and it was found that the cargo must be discharged. The master thereupon chartered The Alarm and another vessel to take the cargo on ; the defendants' agents at Callao refusing to interfere. (A) SHpton V. Thornton, 9 A. & E. 3 0. Rob. 240 ; The Hamburg, 32 L. J., p. 337 ; Matthews v. Gibbs, 30 L. J., Ad. 161 ; 33 L. J., Ad. 116 ; Atwood v. Q. B. 65. Of. Gibbs v. Grey, 26 L. J., SeUar, 3 Q. B. D. 342 ; Niagara v. Ex. 286. Oordea, 21 Howard, U. S. E. 7. (j). Shipton V. Thornton, 9 A. & E. {Je) Per Lord Denman, C. J., Shipton 314 ; Oamian v. Meabum, 1 Bing. 243 ; v. Thornton, 9 A. & B. at p. 337. Abbott (5th), p. 240; (13th), p. 411; {t) Matthews v. Gibbs, SOL. J., Q. B. Ang. Carr. s. 187. Of. The Gratitudine, 55 ; Gibbs v. Grey, 26 L. J., Ex. 286. aa2 356 THE VOYAGE. Sect. 306. The freight made payable by the charter of The Alarm was 70s. a ton, though the ruling freight at the time from Callao to England was 40s. a ton ; but by private arrangement the differ- ence of 30s. a ton was to be paid by the master of The Alarm to the master of The Planter. The defendants, however, refused to pay the 70s. a ton without first deducting the advances already made by them to The Planter at Oallao, and it was held that they were not liable to do so. The Alarm must be considered to have been chartered on behalf of the owner of The Planter, and not of the defendants ; for otherwise it would have been a fraud upon them : and no greater lien for freight was given to the owners of The Alarm than was possessed by the owners of The Planter. It was also held that if the charter of The Alarm was made on behalf of the defendants it was made without authority. " It must be understood that this implied authority of the master is co-extensive with, and limited by, the necessity out of which it arises, just as it also is when he acts under extraordinary circum- stances as the agent of his owners with regard to pledging their credit, or the ship itself, for necessaries for the ship. . . . Now in this case it is clear there was no necessity for the contract into which Carlisle, the master, entered. There might be a necessity, indeed, under the particular circumstances for his procuring other vessels in order to transmit the cargo to its place of destination ; but there was none for his entering into a contract to pay freight at the rate of 70s. per ton " (m). 307. Should the master relinquish the attempt either to carry on the goods in his own ship or to send them to their destination in another ship, he will thereby wholly abandon any claim for freight in respect of them, unless it has been made payable in advance, or irrespective of delivery. Where freight is only pay- able on delivery, no part is earned until it is earned completely. So that whether the abandonment of the voyage be due to in- ability, or prevention of the ship (n), or to the necessity of selling the goods, either to raise funds for the ship's repairs (o) or EeBeot on freight of abandoning Toyage. (m) Per Oooktum, C. J., 30 L. J., Ex. p. 63. («) Cook V. Jennings, 7 T. E. 381 ; Metcalfe v. Britannia Ironworks Co., 1 Q. B. D. 613; 2 Q. B. D. 423; The Kathleen, L. B., 4 A. & E. 269 ; The Cito, 7 P. D. 5. (o) Hopper v. Burness, 1 C. P. D. 137. POETS OP REFUGE. 357 in their owner's interest (p), the shipowner loses the whole Sect. 307. freight. On the other hand, if the cargo be accepted at the port of refuge under an agreement that delivery there shall be treated as a per- formance by the shipowner of his contract (q) ; or if the owner of the goods, by any act or default, prevents the shipowner from carrying them on to their destination (r), the whole of the freight becomes at once payable. Also sometimes the shipowner becomes entitled, by agreement, on deKvery at a port of refuge, to freight in proportion to the part of the voyage which has been accomplished. This subject will be discussed more fully hereafter (s). Here it is enough to say that no agreement of this kind can arise, by implication, unless the cargo owner has consented to accept the goods under circumstances which left him an option to have them carried on to their destina- tion by the shipowner, in his own or some other vessel (t). 308. Where the vessel has been abandoned at sea by the master Abandonment and crew, without any intention of returning to her, the freighter is entitled to treat the contract as abandoned ; so that if she be brought into port by salvors, he may claim the goods without becoming liable to pay freight (w). In The Cito («), the Court of Appeal decided that the shipowner had no claim for freight after the abandonment ; but declined to say that that put an end to the contract of affreightment. By the abandonment the shipowners gave the cargo owners a right to elect to treat the contract as at an end. " We do not decide what would have been the result if, after the ship had been brought in as it was by the salvors, and before the cargo owners had come in and exercised their right to the cargo, the shipowners had given bail for the ship and cargo, and had carried the cargo on " ( CC4 ■ ^ ,,- («) Per Brett, L. J., 7 P. D. p. 9. C. P. 284 ; mfra, a. 554. ^' ' ' *^ (s) Chap. XVI. W 72 L. T. 621 (1895). 358 THE VOYAGE. Sect. 308. of The Arno, hearing of this, ohtained an undertaking from the owners of The Merrimac that they would hold The Arno for him on her arrival at a port in the United Kingdom. He also sent out a tug to meet The Arno ; and on her arrival at Liverpool, which was her destination, he got possession of her from the salvors. Still, it was held hy the Court of Appeal, affirming Bruce, J., that, as the cargo owners had given notice before the ship's arrival, that they treated the contract as ended, they were entitled to have the cargo without paying any freight. The question whether the shipowners, if they regained possession before the cargo owners elected to treat the contract as ended, could claim to resume the contract without any fresh agreement, was regarded as still open. In the United States it has been held, by a Circuit Court of Appeals, in the case of The Eliza Lines (a), that the contract of carriage still continues after an abandonment at sea. 309. The master is entitled to delay for such a period as may be reasonable under the circumstances, before deciding on the course he will adopt. He may claim a fair opportunity of carrying out the contract, and earning the freight, whether by repairing or transhipping {b). But if he has had such an opportunity, and has failed to avail himself of it, the owner of the goods may claim that they shall be given over to him. Should the repair of the ship be undertaken, it must be proceeded with diligently ; and if so done, the freighter will have, no ground of complaint, although the consequent delay be a long one. Unless, indeed, the cargo is perishable, and likely to be injured by the delay. Where that is the case, it ought to be forwarded, or sold, or given up, as the case may be, without waiting for the repairs. Master may delay reason' ably before abandoning at port of refuge. Power to hypothecate or sell cargo for repairs, &c. Bottomry. 310. The money for repairs and other expenses necessary to enable the ship to complete the voyage can frequently only be into the Admiralty Court, is only a par- ticular phase, not differing in essentials from other phases of the incidents of the perils of navigation, from which the ship is bound to relieve the cargo bo far as circumstances will permit, and ■which -will not deprive the vessel of its freight if prepared to earn it" (p. 330). (4) See The Blenheim, 10 P. D. 167. (a) 61 Fed. Rep. 308 (1894). After commenting upon the English decisions, and text books, as presenting an " in- harmonious and imsettled " result, the Court said as follows : " We feel com- pelled to hold that the circumstance of derelict, followed by the further circum- stance that the derelict comes into the hands of salvors, and from their hands BOTTOMRY. 359 procured ty giving the property which is under the master's control Sect. 310. as security. Where the master is without credit (c), and the repairs cannot prudently be postponed until he has been put in funds by the shipowner, or by others interested, he is empowered to hypo- thecate the property in order to obtain the necessary funds. The hypothecation for repairs ought, in the first iastance, to be of the ship and her freight. But if these are an insufficient secu- rity, the master or person in command of the adventure (d) may, in oases of necessity, and when the interests of the cargo owner require it, hypothecate the cargo also ; or even sell a portion of it, for the same purpose (e). He has conditional authority to do this from the owner of the goods, implied from the fact that they have been shipped in that ship for that voyage. Brett, L. J., in The Gaetano and Maria (/), said : " This authority of the master of the ship to hypothecate the ship or cargo is peculiar. It does not arise merely out of a contract of bailment, for that contract gives no such right. It does not arise even out of a contract of carriage on land. I doubt whether it arises on a contract of sea carriage, where it is all within the realm, but it is not necessary that this should be now decided. It does arise where the goods are shipped on board a ship to be carried from one country to another. That is acknowledged by the maritime law of England, and, as far as I know, is equally acknowledged in every maritime country. It arises from the necessity of things; it arises from the obligation of the ship- owner and the master to carry the goods from one country to another, and from its being inevitable from the nature of things that the ship and cargo may at some time or other be in a strange port where the captain may be without means, and where the ship- owner may have no credit because he is not known there, that for the safety of all concerned, and for the carrying out of the ultimate object of the whole adventure, there must be a power in the master not only to hypothecate the ship but the cargo " (g). (c) The Hero, 2 Dods. 139 ; The bond camiot be given : The Hebe, 2 W. Faithful, 31 L. J., Ad. 81 ; TheEmpire Rob. 146. of Peace, 39 L. J., Ad. 12; The Stafford- (d) See Parmeter v. Todhunter, 1 shire, L. E., i P. C. 194. As to the Camp. 541. master's power to pledge the ship- («) The Gratitudine, 3 0. Rob. 240 ; owner's credit, see Arthur v. Barton, 6 The Karnak, L. R., 2 A. & E. 289 ; M. & W. 138 ; Beldou v. Campbell, 20 L. E., 2 P. 0. 505. L. J., Ex. 342. Where the lender is a (/) 7 P. D. 137, at p. 145. debtor of the shipowner, a bottomry (g) This case decided that the autho- 360 THE VOYAGE. Sect. 311. 311. An hypothecation will not, however, be valid unless it is Must he done made prudently, having regard to the interests of the cargo owner, fnterest^of '"^ ^^ The Gratitudine {h) , Lord StoweU said : " In all eases it is the cargo owner., prospect of benefit to the proprietor that is the foundation of the authority of the master. It is therefore true, that if the repairs of the ship produce no benefit or prospect of benefit to the cargo, the master cannot bind the cargo for such repairs ; but it appears to me that the fallacy of the argument, that the master cannot bind the cargo for the repairs of the ship, lies in supposing that whatever is done for the repair of the ship is in no degree, and under no circumstances, done for the benefit, or with a prospect of benefit, to the cargo ; whereas the fact is, that though the prospect of benefit may be more dixect and more immediate to the ship, it may still be for the preservation and conveyance of the cargo, and is justly to be considered as done for the common benefit of both ship and cargo " (i). In The Onward [k), Sir E. PhiUimore said : " The master must endeavour to hold the balance evenly between his two principals ; he must not sacrifice the ship to the cargo, or the cargo to the ship. In this case, the outlay on the ship which the cargo is to pay is very great. The master is asked ' Whether by the repairs she was made as good a ship as she was at the outset ? ' He answers, ' Better ship than she was the day I took her.' I do not think, upon the evidence before me, that a reasonable and prudent owner, if present, would have allowed his cargo to be bottomried for such very extensive repairs. He would rather have paid the freight and re-shipped the goods." Hypotheoa- tion by bot- tomry bond. 312. The hypothecation is effected by a contract which is known as a bottomry bond where the ship as well as the cargo is included, or as a respondentia bond where the cargo alone is charged. It is a contract by which a charge is given upon the property in the event of its arrival at its destination. The grantee of the bond takes the risk of the voyage, and in consideration of that a premium or high rate of interest is usually included in the rity is determined by the law of tte iiag': supra, a. 211. (A) C. Eob. 240, p. 261. (i) The dicta in this case regarding the master's authority for the cargo owner are to be read in reference to the power of binding the cargo to the lender of money, not as determining the rights of shipper and shipowner inter se. See Benson v. Duncan, 18 L. J., Ex. 169, at p. 172. (/c) L. E.., 4 A. & E. 38, at p. 58. Cf. The Hamburg, 32 L. J., Ad. 161 ; 33 L. J., Ad. 116. BOTTOMRY. 361 amount. The bond does not pass the property in the ship or cargo Sect. 313. to the grantee, but gives him a maritime lien upon them, which may be enforced by process of the Admiralty Court {I). This contingent character of the contract is essential to its vaKdity as a bottomry transaction (m). And probably the master cannot hypothecate the cargo except subject to the contingency of arrival. Even with regard to the ship, his power of hypothe- cating only extends to giving a lien upon her, to be enforced by Admiralty process : he cannot mortgage or pledge her, so as to pass the right of property or of possession («). And in order to confer a maritime lien enforceable by process the hypothecation must be conditional upon arrival, whether maritime interest is secured or not (o). 313. In the Cargo ex Sultan (p), money had been advanced at a Wliere part of port of refuge (Key West), under agreement for a respondentia leff behind?^ bond, to discharge salvage incurred by the cargo of The Sultan, which had stranded, after the advance part of the cargo was transhipped into The Otseonthe. But she caught fire and was destroyed ; and such of those goods as were saved were sold, and their net proceeds remained in Court at Key West. The rest of the cargo was shipped in The T. J. Roger, and arrived. Before The T. J. Roger sailed, the master of The Sultan gave a respon- dentia bond to the lender for the whole advance, covering the goods shipped on The Otseonthe as well as those in The T. J. Roger, but making the whole sum payable in the event of the arrival of the latter. Upon proceedings against these goods it was held that the bond was good in part, though it covered property not exposed to maritime risk, viz., that which had been shipped in The Otseonthe, and that the owners of what had been brought home must " pay not the whole amount of the bond, but a proportion of that amount according to the value of the property delivered, and that the bondholder should seek his remedy for the remainder against the proceeds of the cotton at Key West." (Z) Stainbank v. Shepard, 22 L. J., Sess. Ca. (2iid), 548; The Haabet, Ex. 341. (1899) P. 295. {m) Ibid. ; The Atlas, 2 Hagg. 63 ; („) Stainbank v. Shepard, 22 L. J., The Emancipation, 1 W. Bob. 124 ; The jjx. 341 ; Stainbankii. Fenning, 20 L. J., Indomitable, Swab. 446. The bond q_ p. 226. may be a collateral seoiority for bills of exchange . Jbid. ; The Staffordshire, (") ^^• L. R., 4 P. C. 194 ; The Onward, L. R., {p) Swab. 504. Cf . as to freight, The 4 A. E. 38 ; Cochrane v. GHlMson, 16 Staffordshire, L. R., 4 P. C. 194, p. 210. 362 THE VOYAGE. Sect. 314. 314. The power to bottomry the cargo, or to sell part of it, is Bottomry for not confined to raising money for repairs. The object may be to obtain supplies ; or to meet other necessary disbursements at the port of refuge ; or in other ways to enable the ship to prosecute and complete her voyage. What is essential is that the money should be necessary for the furtherance of the voyage on which she is carrying that cargo {q), and that the hypothecation of the cargo should be necessary in order to obtain it. Thus, a bottomry bond given for a previous debt of the shipowner, or in respect of charges incurred on a previous voyage, will not bind the cargo (r). Nor will a bond be valid against it which has been given to secure a loan originally made on personal credit, and not in the expecta- tion of security being given (s) . But the Court is apt to presume that bottomry was intended {t). Where a bond has been given ia respect of expenditure which has only in part been necessary for the purposes of the voyage, it will be valid against the cargo to that extent and no further. And the question to be determined is, whether the work or pay- ments were really necessary ; not whether the lender thought, or had reasonable grounds for thinking, that they were (u). Cargo must 315. The master cannot charge cargo by a bottomry bond before shipped. it has been shipped, if the shippers have not assented. In The Jonathan Goodhue («) the ship had been repaired at Calcutta in November and December, 1856 ; and was there chartered on December 31st to proceed to Rangoon, and take a cargo for the United Kingdom. On. January 8th, before saiHng from Calcutta, the master gave a bottomry bond, which recited the charter, and purported to bind the ship, the cargo to be laden under the charter, and the freight to become due upon it. The charterers did not consent to this ; and they had no interest in the debt for which the money was borrowed. It was held by Dr. Lushing- ton that the bond was not valid against the cargo. " There is no authority for giving a bottomry bond on cargo before it is put [q) As to what are necessaries, see Empire of Peace, 39 L. J., Ad. 12 ; The Wm. & Br. Ad. (2nd), 181 et seq. ; The Ida, L. E.., 3 A. & E. 542. Karnak, It. R., 2 P. C. 506. ,,, „, „.,.,. , .^rr x, , / \ rr^ r> T o -nr -D 1, , no oiu W The Vibilia, 1 W. Eoh. 1 : The ()■) The Osmanh, 3 W. Rob. 198 ; The /n ,i . „ T,r i , „ ™ J T ^i, n jv, a -u o^c rri. Gauntlet, 3 W. Rob. 82 ; The Laurel, Jonathan Goodhue, Swab. 36S ; The q^t T Ail T? """o^, Edmond, 29 L. J., Ad. 76 ; The North "' Star, 29 L. J., Ad. 73. (") ^he Pontida, 9 P. D. 102, 177. («) The Augusta, 1 Dods. 283 ; The {x) Swab. 355. BOTTOMRY. 363 on board. It is the necessity of the cargo, and the required Sect. 315. completion of the voyage which has been interrupted, which warrant the bond to extend to cargo. I take it to be quite clear that where a ship is lying in her original port, and is in need of repairs in consequence of a former voyage, or in need of necessaries, no bottomry bond can be given on cargo which is not shipped : and that for the obvious reason that the master has no control over the cargo tiU it is on board the ship." 316. The necessity for hypothecation or sale of the cargo to Duty to oom- p 1 .1 J J • J -J • municate. raise lunds must be so urgent as to give no opportunity, in a practical sense, of communicating with the owners or agents of the cargo : otherwise the authority of the master to act on his own responsibility does not arise. If he can prudently wait to communicate he must do so, and a sale or hypothecation made without doing so is invalid («/) . " The master is invested by presumption of law with authority to give directions on this ground — that the owners have no means of expressing their wishes. But where such means exist, where communication can be made to the owners, and they can give their own orders, the character of agent is not imposed upon the master, because the necessity which creates it does not arise" (s). And the absence of an attempt to communicate is not excusable on the ground that probably no reply would have been obtained. " If it be rational to expect that he may obtain an answer within a time not inconvenient with reference to the circumstances of the case, then it must be taken upon authority and principle that it is the duty of the master to do so, or at least to make the attempt" (a). Also the communication with the owners must be such as to show them that it is intended to hypothecate the cargo, if that is the case {b). (y) Kleiuwort v. Casa Marittima of {«) The Hamburg, 33 L. J., Ad. 116, Genoa, 2 A. C. 156 ; The Onward, L. E., p. 118. Where owner has an agent at 4 A. & E. 38 ; The Hamburg, 32 L. J., the port : Gunn v. Roberts, L. E., 9 Ad. 161 ; 33 L. J., Ad. 116 ; The Bona- 0. P. 331. parte, 18 Moo. P. 0. 459 ; The Oriental, (a) Hid., correcting a passage in the 7 Moo. P. C. 398 ; The Stafiordshire, judgment in The Bonaparte, 18 Moo. L. R., 4 P. 0. 194. Of. The Lizzie, P. C. 469. Of. The Lizzie, L. R., 2 L. E., 2 A. & E. 254 ; Cargo exOUvier, A. & E. 254. 31 L. J., Ad. 137 ; Glaaoott v. Lang, 2 (i) Kleinwort v. Caaa Mar. of Genoa, Phillips, 310 ; Cargo ex Sultan, Swa. 2 A. 0. 156 ; The Onward, L. E., 4 504. A. & E. 38. 364 THE VOYAGE. Sect. 317. 317. A bottomry bond is enforced by proceedings in rem in the Enforcement Admiralty Court against the property charged. If necessary that bonds. ■wUl be sold, and the proceeds distributed amongst the various persons entitled to charges upon it. And where the ship and freight are insufficient, some part of the obligation may fall upon the cargo, if the bond includes that. If there are other liens on tlie ship and freight, competing with the bond, the liability of the cargo to satisfy the bond may depend upon the order in which the several Hens are paid off. For that liability only arises where ship and freight have been exhausted ; and the ship and freight may, or may not, be applied in satisfying the bond in priority to claims which cannot fall on the cargo. Prior charges Claims upon the ship and freight for salvage (c), or for damage done subsequent to the bond {d), or for wages of the master or crew (e) accrued during the voyage (/), or for pilotage, towage or dues {g), must be satisfied before the ship and freight can be applied to the discharge of bottomry claims. But not so other unsecured claims for necessaries ih). The claims for salvage, wages and pilotage, &c. are payable out of the ship and freight rate- ably («■). Where the master is a party to the bond, indeed, he cannot claim priority for his wages to the prejudice of the bondholder ; but this does not prevent him from claiming that priority where the bond- holder will not be prejudiced by his doing so, although the cargo owner may be (/c). As between different bondholders their Hens rank in the inverse order of the dates of their bonds, the earlier bond being postponed to the later IJ) ; for the later bond is, in effect, in aid of the earlier. But if loans are made by different persons as parts of one transaction, iu privity and concert with one another, they are put {e) The Gustaf, 31 L. J., Ad. 207. 250. Of. The Andalina, 12 P. D. 1. {£) The Aline, 1 W. Rob. Ill ; The (a) gee The Hope; The WUUam F. Elin, 8 P. D. 39, 129. There seems SaflBord, s«pra ; The Heinrich Bjom, 11 also to be little doubt that claims for _a.. c. 270 ; 10 P. D. 44 • The Chioggia damage done by the ship prior to the (1898) P. 1. Cf. The Gustaf, supra. bond are payable in priority to that ; except where the bond has been given (') '^^ Dowthorpe, 2 W. Eob. 73; to payfor repairs done after the damage. '""^^ Constancia, ib. 460. See The AUne, supra. W The Edward Oliver, L. E,., 1 A. («) The William F. SafiEord, Lush. 69. & E. 379 ; The Eugenie, L. E., 4 A. & (/) See The Hope, 28 L. T. 287. E- 123. ig) The Constancia, 2 W. Eob. 460. {I) The Prisoilla, Lush. 1; IL. T. 272; Dock dues : The St. Lawrence, 5 P. D. The William F. Safford, Lush. 69. BOTTOMRY. 365 on an equal footing, notwithstanding a difEerenoe of dates in the Sect. 317. bonds (to). 318. The cargo cannot be resorted to in satisfaction of a bottomry ^^^s° no* ° _ ... resorted to bond given for ship's expenses until the ship and freight have been till sUp and exhausted ; even though the bond may not in terms comprise the eihausted. ship and freight (»). And this rule is still followed, although there may be an earlier bond on ship alone, which will in consequence go unpaid (o). " If the holders of the last bond which is upon ship, freight and cargo, have the same and equal right to proceed against the cargo as against the ship and freight, I should be disposed to hold that in equity they should be compelled to proceed against both, and, in aid of the other bonds, to resort in the first instance to the cargo. But I apprehend that, upon the authority of the Prince Eegent and the reasoning of Lord Stowell's judgment in The Grratitudine (3 C. Eob. 240), the holders of the last bond have no such right against the cargo ; they cannot make the cargo answerable until the ship and freight have been exhausted. The owners of the cargo have a perfect right to avail themselves of the principle of that decision. They have a right to say that by law the cargo, though legally hypothecated, cannot be touched till the ship and freight have been exhausted. They are strangers to all previous bonds on ship and freight " (p). In The Ohioggia (q), one who had judgment for necessaries against ship and freight claimed that the holders of a bond on ship, freight, and cargo, should not take the proceeds of ship and freight, but should be paid out of cargo, as otherwise his remedy would be lost. That was not allowed. GroreU. Barnes, J., said : " Mar- shalling cannot be permitted to the prejudice of third persons. According to equitable doctrines, in order to marshal, not only should there be two creditors of the same person, but one of them should have two funds belonging to the same person to which he can resort. (See Aldrich v. Cooper (r) ; Douglas ». Cooksey (s).) In the present case the two funds belong to different persons, namely, the shipowners and cargo owners respectively, and, {m) The Exeter, 1 0. Eob. 174. {p) Per Dr. Lushingtou, Tlie Priscilla, ,(«) The Constanoia, 2 W. Eob. 404, stipra. 460. (y) (1898) P. 1. (o) Ibid. ; The PrisoiHa, Lush. 1 ; 1 L. T. 272. See Will. & Bruce, Ad. ^ * ^^^- ^®^- (2nd), 69, n. («) Ir. Eep., 2 Eq. 311. 366 THE VOYAGE. Sect. 318. in my opinion, the neoessaries men have no right of marshalling. They have no equity to have the claims adjusted so as to compel the cargo owners in effect to provide the means of discharging the claim for necessaries." Prior claims 319. Also before the cargo can be made available for the bond- on cargo. j^oiijer any prior claims upon it must be satisfied. Thus, claipis for salvage due in respect of it must be paid. And where freight became due on a subsequent transhipment of the goods, the shipowner's lien for that was first satisfied. " The subsequent carrying on of the cargo was essential to making it available either for the holder of the respondentia bond or for anybody else. It was in the nature of salvage service; and in a com- petition of liens, the shipowner who has rendered a service of this description is entitled to priority over the holder of a respondentia bond who has done nothing, and whose money has contributed nothing towards forwarding the cargo to its destination " (t). So also a claim by the master on the cargo for general average sustained during the voyage, for which he has a possessory lien, must be satisfied in priority to the earlier bondholder (m). Indemnity for 320. If the expenditure has been incurred for the safety of the botto^ried"'^ ship and cargo generally, so as to be general average, it must be for repairs. contributed to by the owners of the property which is ultimately saved. And if part of the cargo has been sold to defray the expenses, or if the cargo has been hypothecated for the same purpose, and a liability has thereby fallen upon its owners, the loss so occasioned must be contributed to as general average {x). But where the expenditure has been upon repairs of the ship, not the result of a general average act, the burden is the ship- owner's, and it must be borne by him. If, then, the cargo has been bottomried to defray the expense of such repairs, or other expenditures which ought to be borne by the shipowner, the owners of the cargo may look to him for an indemnity against Shipowner all consequent loss {y). And if part of the cargo has been sold oeeds of "sa^"" ^J ^^ master in order to repair, the shipowner becomes at once indebted to the owner for the amount of the proceeds ; and must [t) The Cargo ex Galam, 33 L. J., W See Chap. XII. Ad. 97, at p. 102. (^) ^snson v. Duncan, 18 L. J., Ex. 169 ; afBiming 17 L. J., Ex. 238 ; W ^^^- Hallett V. "Wigram, 19 L. J., C. P. 281. BOTTOMRY. 367 pay that whether the ship ever arrives at the destination to which Sect. 320. the goods were to have been brought or not (s). In Hopper v. Burness {a), part of a cargo of coals was sold at a port of refuge for repairs, at a price higher than that obtainable at the destination. It was held that the owner of the coals was entitled to claim from the shipowner the full amount realised by the sale ; without any deduction of pro raid freight to the Cape of Q-ood Hope (a). Also, the owner of the goods will not be confined to a claim for these proceeds if the ship afterwards reaches her destination. He will in that case be entitled, at his option, to an indemnity for his loss through the non-delivery ; which will exceed the proceeds of sale if he could have realised more for them at the destination, taking the freight into account (b) . The claim of the owner of cargo for the value of goods sold for repairs of the ship does not give him a lien upon thfe ship, so as to enable him to claim against her in priority to, or on an equality with holders of bottomry bonds (c). But he may set off the amount of the proceeds of the sale against the freight which may be due from him on other, goods; even though that may have been assigned by the shipowner {d). (z) Benson v. Duncan, 18 L. J., Ex. (J) Hopper v. Burness, 1 C. P. D. 169; HaUett v. Wigram, 19 L. J., 137, per Brett and Archibald, JJ. ; Abb. C. P. 281 ; per Brett, J., in Hopper v. , ^j^j . ^. j , Bnmess, 1 C. P. D. 137, p. Ul. Gi. ^ " ' ^ " Atkinson v. Stepbeus, 21 L. J., Ex. 329. («) The Constancia, 2 "W. Rob. 487. (o) 1 C. P. D. 137. See Richardson (d) Campbell v. Thompson, 1 Stark. V. Nourse, 3 B. & Aid. 237. 490. 368 THE VOYAGE. CHAPTER XI. SALVAGE AND WRECK. SECT. Introductory 321 The right to salvage — Confined to ships and cargoes 322 Object of the rule — No correspond- ing rule on land i 323 The remedies of a salvor 324 Personal remedies 324a His right limited by the amount of property saved 325 Unless services employed 326 Agreement to pay in any event not generally implied 327 Distinctions between employed and unemployed salvors 328 Merchant Shipping Act, 1894 .... 329 Liability under the Act depends on property being saved — Common responsibility for life salvage. . . . 330 Life salvage 331 The ship or goods must be saved from impending danger 332 The service must have had a valu- able efleot 333 Otherwise if service employed .... 334 Who may be salvors ? — Not crew un- less their service has terminated . . 335 Passengers not generally salvors . . 336 Pilot not generally a salvor -when on duty as pilot — Boarding a vessel ia danger 337 Pilotage may become salvage 338 Tug engaged to tow : owners and crew not salvors unless character of service altered 339 Distinction between towage and salvage 340 SECT. Effect on liability of cargo to con- tribute 341 Where salving and salved vessels belong to same owner 342 Where one is under charter to the owner of the other 343 Considerations governing the amount of salvage 344 Damage to salving ship and loss of her services 345 Misconduct of salvors 346 Agreements as to amount — Must not be unfair 347 When upheld 348 Master's authority to make 349 Contribution to salvage in propor- tion to value 350 Freight contributes — Salvage awarded on freight though not completely earned 351 Cargo separately liable to salvors — Valuation of cargo 352 Shipowner has lien for contribution 363 Unless he has been in fault 354 The right to wreck at common law. 355 Statutes relating to wreck 356 Remedy for damage by wreckers . . 357 Eoreign ship : owner represented by consul-general 358 Removal of wrecks : liability of ship and cargo for expenses .... 359 Removal of Wrecks Act, 1877 .... 360 Introduotory. 321. The liaMlity to remunerate salvors is an incident of a mari- time adventure ■which, affects both freighter and shipowner, so that the questions relating to it form part of our subject. It is not, SALVAGE AND WKECK. 369 towever, proposed to enter more than may be necessary into Sect. 381. questions of the jurisdiction and practice of the Courts in which the remedies of salvors are enforced; nor into the manner in which salvage rewards are distributed among the salvors. These matters will be found discussed in works on Admiralty Practice. Here we have to consider the nature of salvage rewards, the cases in which they can be claimed, and the liabilities of ship, freight and cargo to contribute in payment of them. 322. One who saves, or helps in saving, a vessel to which he is a Tie right to stranger, from danger at sea, is entitled to a reward for his services ; and if he has obtained possession of the vessel, he may retain possession until he has been paid the due reward. So, also, with regard to cargo or other property belonging to a vessel at sea which is rescued from danger, whether while in the vessel or after having been thrown or washed out of her ; those who rescue such property are entitled to reward, and to a lien upon the property for that reward (a). This right to reward also arises where such services have been rendered to a ship, or to the cargo of a ship, within a river or harbour (6), or even in a dock. But, whether in a river or at sea, the property saved must be a Confined to ship, or her apparel, or cargo, or the wreck of them (c). The cargoes. right does not arise on saving property of other kinds which may have been moored afloat, and have got adrift ; such as a raft of timber (d), a buoy (e), or a floating dry dock (/). The reward thus payable to salvors is called salvage. Some- times, too, that word is used to denote the property which has been salved ; or again, more broadly, property which has been saved, without regard to hoto saved. But though these rights are recognized in all our Courts, it is in Courts of Admiralty that they practically have effect. The rules which govern and define them are to be found for the most (a) Hartfort v. Jones, 1 Ld. Bay. 393 ; 345 ; suggesting that goods in tow may Nicholson v. Chapman, 2 H. Bl. 254. be cargo, and that some rafts may be [h) The Carrier Dove, 2 Moo. P. C, ships. N. S. 243 ; The Gas Float Whitton, ( T T.- i ■ mt, -CT ■ Chester, 9 P. D. 182, p. 201. (t) Per Dr. Lushmgton, in The Fusi- ' ' '^ Uer, 34 L. J., Ad. at p. 29. («) The Mariposa, (1896) P. 273, 378 THE VOYAGE, Sect. 332. difficulty and reasonable apprehension" {a). But it is the danger of the thing salved that is to be looked at. Danger to the salvor may enhance the merit of the service, but it is by no means an essential element; nor, on the other hand, will it convert into salvage a service which would otherwise not have that character. Salvage is earned in very many different ways {b) . It may be by personal services on board the salved ship ; by towing her ; by protecting or recapturing her from pirates or enemies ; by supply- ing her with men, or stores, for want of which she is in danger ; or, again, by protecting or securing the ship, or her cargo, after she has been wrecked. And in each case not only those who personally give their active assistance, but also those whose property has been used, or upon whom an increased burden and risk is thrown, in. consequence of the services being rendered (c), are entitled to claim salvage {d). The service may be indirect, as by removing another vessel which was a danger to the ship proceeded against (e), or by setting the actual salvors in motion. In The Sarah (/), a tug, in attendance on another vessel, had left her, and gone some miles out of the way, in order to give the information which led to The Sarah being saved ; the owners and crew were allowed salvage. But, in general, persons who are not actually occupied in carry- ing out the work are not entitled to share in the remuneration. Thus, a coastguard officer who merely instructed men under his command to go to the assistance of a vessel, but did not go himself, was not allowed to claim [g). Persons employed by the master of a stranded ship to take charge of her, and to rescue her cargo, may be entitled to reward as salvors ; («) Per Dr. Lushington, in tte Phan- of tlie Admiralty: M. S. Act, 1894, torn, L. E., 1 A. & E. at p. 60; The s. 557. See Cargo ex Woosung, 1 P. D. Aztecs, 21 L. T. 797 ; The Aglaia, 13 260 ; The Cybele, 2 P. D. 224 ; 3 P. D. P. D. 160. 8. As to salvage by re-oapture from (i) See "Will. & Bruce, Ad. (2nd) pp. pirates, see 13 & 14 Viot. c. 26 ; and 114 et seq. ; Kennedy, Salvage, Chap. V. from enemies, 27 & 28 Vict. c. 25, ss. 40, (c) The Charlotte Wylle, 2 W. Rob. 41. A civil salvage maybe combined 495 ; The Skibladner, 3 P. D. 24. with a military salvage : The Louisa, 1 {fl) No claim can. be made in respect Dod. 317. of loss, damage, or risk to any ship (e) The Vandyok, 7 P. D. 42 ; affirmed, belonging to Her Majesty, or for the use 47 L. T. 695. of any stores or articles belonging to (/) 3 P. D. 39. Her Majesty, in rendering a salvage ser- (jr) The Vine, 2 Hagg. 1 ; The Aquila, vice ; nor can the commander or crew of 1 C. Eob. at p. 46. Otherwise where one of Her Majesty's ships claim for such an officer has assisted personally : salvage services except with the consent The London Merchant, 3 Hagg. 394. SALVAGE AND WKECK. 379 and to the consequent maritime lien on the property saved {h) ; Sect. 332. although they may be the agents of the shipowner at the place (»). 333. Again, the service must have had an appreciable effect in The service assisting the ship. " Salvage is a reward for benefits actually con- Bad a valuable f erred, not for a service attempted to be rendered" (/c). And thus ®^^°*' imprudent and useless efforts by salvors, who have afterwards given successful help, ought not to be taken into account in remunerating them il). Even where men " go out at the risk of life, and make the most meritorious exertions, and yet do nothing successfully towards saving the vessel and cargo in the slightest degree," they are entitled to no compensation at all. " The Court cannot, I appre- hend, under those circumstances give any salvage reward whatever ; because the very principle of salvage is to give reward for exertions which have been successful" {m). But if the vessel or cargo be ultimately saved by other salvors, those who have laboured without success will be remunerated, if their efforts have contributed towards the ultimate safety («), unless they have been guilty of improper conduct in connection with their services, or in failing to continue them (o) ; or have entirely abandoned the attempt, and the intention to make them complete {p). Where it is doubtful whether help that has been rendered has contributed to the ultimate safety, the Court is inclined to give the salvors the benefit of the doubt, and to reward them [q). 334. If, however, the services have been employed, under such Otherwise if ssrvicG circumstances that a promise to pay for them can be implied, the employed, right to reward becomes independent of whether they contributed to bring about a successful result or not (r) . {h) The ravourite, 2 W. Bob. 255 ; Nellie, 29 L. T. 616 ; The Maude, 36 The Purissima Conoepcion, 3 W. Rob. L. T. 26. Cf. The Edward Hawkins, 181 ; Cargo ex Honor, L. E., 1 A. & E. 31 L. J., Ad. 46 ; 15 Moo. P. 0. 486. 87. (o) SeeTheCameUia, 9P. D. 27; The (i) The Kate B. Jones, (1892) P. 366. Yan Yean, 8 P. D. 147. (i) The Chetah, L. E., 2 P. 0. 205, (p) The India, 1 W. Eob. 406 ; The at p. 212 ; The Yan Yean, 8 P. D. 147 ; Killeena, 6 P. D. 193. Cf . The Jonge The India, 1 "W. Eob. 406 ; The Cheer- Bastiaan, 5 C. Rob. 322. ful, 11 P. D. 3 ; The Benlarig, 14 P. (?) See The E. U., 1 Spinks, 63 ; The D. 3. Santipore, 1 Spinks, 231. {T) The Chetah, L.E., 2 P. C. 205. (r) The E. U., 1 Spinks, 63, p. 64 ; (m) PerDr. Lushington,inTheE.TJ., The Benlarig, 14 P. D. 3 ; The Lepanto, 1 Spinks, 63. (1892) P. 122 ; The StrMhgarry, (1895) («) The Camema, 9 T. D. 27 ; The P. 264. 380 THE VOYAGE. Sect. 334. In The Undaunted (.s), a troopship had parted with both her anchors and cahles in a heavy gale off the North Foreland. The steamer Resolute came to her assistance, and was requested by the master of the troopship (The Undaunted) to go to the nearest port and bring off an anchor and cable. The Resolute accordingly steamed to Eamsgate, engaged two luggers, put on board them a large anchor and cable, and then cruised with them off the Foreland in search of The Undaunted ; but without success. Ultimately The Resolute fell in with her, and with another tug towed her to Gravesend ; but the luggers did not come up until she had reached Gravesend. D,r. Lushington held that the luggers, as well as The Resolute, were entitled to salvage (t). (s) 29 L. J., Ad. 176. {t) He said : "I cannot have any doubt as to tlie duty of tlie Court in this case. There is a broad distinction to ba drawn between salvors who volunteer to go out to a ship in. distress, and those who are employed by her. Salvors who volunteer go out at their own risk for the chance of earning reward, and if they labour unsuccessfully they are entitled to nothing. It is the effectual perform- ance of salvage service which gives them a title to salvage remuneration. But if men are engaged by a ship in distress, whether generally or particularly, they are to be paid according to their efforts made, even though the labour or service may not prove beneficial. Take the case of a vessel at anchor in a gale of wind, hailing a steamer to lie by and be ready to take her in tow, if required; the steamer does so ; the ship rides out the gale safely, without assistance . I should , undoubtedly, hold in such a case that the steamer was entitled to salvage reward ; the quantum to be determined by the risk encountered by both vessels, the value of the property at hazard, and the other circumstances of the case. The engagement to render assistance to a vessel in distress, and the performance of that engagement, so far as necessary, or so far as possible, establish a title to salvage reward. In the present case there was an engagement ; the steamer was engaged to go on shore and bring off an anchor and cable to thin ship, which had parted from both her anchors in a tremendous gale off the Foreland, and was, in my opinion, in very great danger. The engagement, as usual in such cases, was not more specific than was necessary. The true effect of it was, ' You are to go and get me an anchor and cable, and do all that is necessary for this purpose.' The steamer proceeds to the shore and employs two luggers to take in the anchor and chain, as being by size and construction fitted to go alongside a large vessel in a sea- way ; in fact, employs them as the best means of executing the promised service. Now, if it was necessary and proper to employ these luggers, their employment forms part of the original order, and their services must be paid for ; I am of opinion that they were most properly engaged by the master of the steamer ; I am further of opinion that they did all in their power to reach the vessel in distress ; they put out to sea imme- diately, and were for nearly three days knocking about the Foreland, and were only disappointed of effectuating their service by the act of God. The ship had driven as far as Lowestoft ; she was finally fallen in with by the steamer, and by her and another steamer towed to Gravesend. On the luggers arriving with the anchor and cable, the master of the vessel refused to accept them. Looking to all the circumstances of the case, the risk of the ship, the long labour of the salvage, the expenses incurred, and the loss of profits, I shall give to The Resolute iOOl., and to each of the luggers 100?." SALVAGE AND WEECK. 381 In The Melpomene (m), salvage was allowed to a tug wMcL. had Sect. 334. ineffectually endeavoured to take the Melpomene in tow, when she was drifting dangerously up the Mersey. She had shown hlue lights as signals for assistance ; and a hawser had been passed to her from the tug, but was not made fast on board. She was ultimately brought up by other tugs. Sir E. PhiUimore said : "I think there are no oases which would stand in the way of my adopting as a principle this proposition, which appears to me of considerable importance to the interests of commerce and navigation, especially at the present time, namely, that when a vessel makes a signal of distress, and another goes out with the bon& fide intention of assisting that distress, an.d, as far as she can, does so, and some accident occurs which prevents her services being as effectual as she intended them to be, and no blame attaches to her, she ought not to go wholly unrewarded" {x). 335. Further, services in order to entitle to salvage must have who may been rendered by persons who did not owe any public or private ® ^ ^°^^ duty to render them (y). So that public oflBeers, whose duty it is to render assistance, cannot claim salvage for services which are within the scope of those duties. Thus, officers and crew of a ship of the royal navy do not receive salvage unless the services per- formed by them are beyond that protection which it is their duty to afford (s) . On this ground the crew and officers of a ship cannot generally Not ore-w ,. 1 pii'j. ii,!.' s ^ unless service claim salvage lor helping to save tne snip, or cargo, irom wreck ; ended. or after being wrecked. These acts form part of their duties under their contracts of service {a). But if the contract of service has been terminated, either by an abandonment of the vessel by the master and crew, without any intention of returning to her (J), or {«) L. E., 4 A. & E. 129. And see made in respect of the ship. See Ken- The Maude, 36 L. T. 26 ; The Cam- nedy, Salvage, 100 et seq. brlan, 76 L. T. 504. («) The Keptune, 1 Hagg. 227, at (oc) See M. S. Act, 1894, b. 434. p. 236 ; The Warrior, 6 L. T. N. S. 133. (2/) The duty under s. 422 of the Cf. claim hy agent of ship. The Kate M. S. Act, 1894, to stand by the other B. Jones, (1892) P. 366. As to consorts, ship aiter a collision does not prevent a see The Zephyr, 2 Hagg. 43. A custom claim for salvage against her : The among vessels in the South Seas whaling Hannibal, L. K., 2 A. & E. 63. fisheries to render assistance to one («) The Francis and Eliza, 2 Dods. another gratuitously, precluded a claim 117; The Cargo ex Ulysses, 13 P. D. for salvage: The Harriot, 1 W. Eob. 205. Under s. 557 of the M. S. Act, 439 ; The Swan, ib. 70. 1894, the claim must be with consent of (5) The Elorence, 16 Jur. 572 ; The the Admiralty, and no claim can be Le Jouet, L. E., 3 A. & E. 556. 382 THE VOYAGE. Sect. 335. by the discharge of the crew by the master (c), subsequent services by members of the crew in rescuing the ship or cargo may entitle them to salvage. So, too, where the ship has been captured by an enemy, a re-capture by the crew may entitle them to salvage (d). But this is not allowed where the rescue is from mutineers among the crew, although the mutineers may have obtained complete possession of her for a time. For the crew are still bound to give every assistance in their power to preserve or recover possession of the vessel and goods (e). In The Solway Prince (/), the question arose whether persons who did work in raising a ship, under employment by insurers, could claim against the ship, as salvors, on failing to obtain pay- ment from their employers. It was held that they could not. " If the owner made such a contract with such persons himself ... I think that there can be no doubt that the contracting parties could not claim a remuneration on salvage principles. Nor do I think it makes any difference if the contract is, to the knowledge and with the assent of ^the owners, made not with themselves but with third parties" (g). 336. With regard to persons who are on board as passengers, not generally ox ^ ^ t^ salvors. though they are under no contract of service, they are bound to take part against the common danger. " So long as a ship is in danger and passengers cannot escape, I hold it to be impossible for them to claim salvage for assisting to save their own lives and property and the property of others" (h). But a passenger is not bound to remain by the ship ; he may take the first opportunity of escaping and saving his own life. If then, instead of doing so, he remains on board for the purpose of rendering assistance in saving the vessel, he may be entitled to salvage. In Newman v. Walters (»), a passenger remained on board after the captain and some of the crew had left, and took command of her at the request of the crew and rescued her; it was held that he might claim salvage. (c) The Warrior, 6 L. T., N. S. 133. (A) Per Dr. Lushington, in The Vrede, [d] The Two Riends, 1 C. Eob. 271, 30 L. J., Ad. 209. And see the Bran- at p. 277. ston, 2 Hagg. 3, n. In The Coriolauus, («) The Grovemor EafBes, 2 Dod. 14. 15 P. D. 103, passengers on the B. were {/) (1896) P. 120. not allowed to claim as salvors against a is/) Per Sir F. Jeime, (1896) P., p. derelict which the B. towed into port. 126. (j) 3 B. & P. 612. SALVAGE AND WEECK. 383 337. Again, a pilot, or one wlio lias gone on toard a vessel in Sect. 337. that capacity, is not generally entitled to salvage for liis services Pilot not in rescuing her from a danger which happens while his duty as salvor when pHot continues {k) . °^^^^^ "" But where a vessel is in a position of exceptional danger, a pilot Boarding a TGSSfil "in is not hound to go on board her for mere pilotage reward (l). danger. " The Court has always held with regard to pilots that they are entitled to say when they get on board vessels which are not seaworthy, and, therefore, in a state of danger, ' We do not come in the character of pilots only, but also in the character of salvors.' In such a case they are not entitled to abandon the vessels, but the Court has imiformly given them an additional reward, thinking they are not to be compensated for a salvage service by mere pilotage reward " (m) . The question whether assistance given by a pilot under ex- ceptional circumstances is to be regarded as a salvage service, or not, has been said to depend, in the absence of express agree- ment, upon what kind of agreement may be fairly presumed. "Would a fair owner have insisted on requiring the necessary services for ordinary pilotage fees, or even a higher rate of pilotage payment ? Would a fair pilot have refused to perform the necessary services unless upon the terms of a salvage reward ? . . . Were the acts of the pilots, by reason of the weather and the position of the ship, made so different, ia danger or re- sponsibility, fi'om the ordinary acts of service of pilots, as that no fair and reasonable owner would have insisted on requiring such service for other than salvage reward ? " (w). 338. Moreover, after a pilot has entered upon his duties, as Pilotage may- such, on board a vessel not at the time in distress, circumstances salvage. may supervene which so alter the character of the service that he may become entitled to salvage (o). This doctrine has not, however, been regarded with favour, and it will not readily be acted upon (p). (ft) The ^olus, L. E., 4 A. & E. 29 ; («) Per Brett, L. J., Aierhlonu). Price, The Jongs Andries, Swab. 226 ; The 7 Q. B. D. 129, at p. 133. Monarch, 12 P. D. 5. (o) The Saratoga, Lush. 318, p. 321. {I) The Erederiok, 1 W. Eoh. 16 ; The See The Galatea, Swab. 349 ; The ^olus, Hebe, 2 W. Kob. 246 ; The Anders L. E., 4 A. & E. 29, at p. 32. Knape, 4 P. D. 213 ; Akerblom v. Price, [p) See The Jonge Andries, Swab. 7 P. D. 129 ; The Aglaia, 13 P. D. 160. 226, at p. 229. Perhaps it depends upon {m) Per Dr. Lushington, The Jonge whether the pilot could have left the Andries, Swab. 226, at p. 229. - ship. Of. The Vrede, 30 L. J., Ad. 209. 384 THE VOYAGE. Sect. 338. Tug engaged to tow ; owners and crew not salvors, Unless character of service altered. Pilots may earn extra reward, which may have the character of salvage, by using their boat to tow the vessel which is being piloted {q). 339. Again, the owners and crew of a tug which is engaged to tow a vessel are not, in general, entitled to claim salvage for rescuing her from a position of danger into which she may get during the performance of the towage. But if circumstances supervene after the towage service was undertaken, which place the vessel towed in a position of ex- ceptional danger, not in contemplation when the contract was made, and such as to call for extraordinary aid from the tug, or to expose her to extraordinary risk, those on the tug may be entitled to abandon the towage contract, and to act and claim as salvors (r). (?) The General Palmer, 2 Hagg, 176 ; The Industry, 3 Hagg. 203. (r) " When asteamboat engages to tow a vessel for a certain remuneration from one point to another she does not warrant that she will be able to do so, and will do so under all circumstances and at all hazards ; but she does engage that she will use her best endeavours for that purpose, and will bring to the task competent sHU and such a crew, tackle, and equipments as are reasonably to be expected in a vessel of her class. She may be prevented from fulfilling her contract by vis major by accidents which were not contemplated and which may render the fulfilment of her contract impossible ; and in such a case, by the general rule of law, she is relieved from her obligations. But she does not become relieved from her obligations because unforeseen difficulties occur in the completion of her task ; because the performance of the task is interrupted, or cannot be completed in the mode in which it was originally intended, as by the breaking of the ship's hawser. But if in the discharge of this task, by sudden violence of wind or waves, or other accidents, the ship in .tow is placed in danger, and the towing vessel inoirrs risks and performs duties which were not within the scope of her original engagement, she is entitled to ad- ditional lemuueratiou for additional services if the ship be saved, and may claim as a salvor, instead of being restricted to the sum stipulated to be paid for mere towage. Whether this large remuneration is to be considered as in addition to, or in substitution for, the price of towage, is of little conse- quence practically. The measure of the sum to be allowed as salvage would, of course, be increased or diminished according as the price of towage was or was not included in it. In the cases on this subject, the towage contract is generally spoken of as superseded by the right to salvage. It is not disputed that these are the rules which are acted upon in the Court of Admiralty, and they appear to their Lordships to be founded in reason and in public policy, and to be not inconsistent with legal principles. The tug is relieved from the performance of her contract by the im- possibility of performing it, but if the performance of it be possible, but in the course of it the ship in her charge is exposed, by unavoidable accident, to dangers which require from the tug services of a different class and bearing a different rate of payment, it is held to be implied in the contract that she shall be paid at such higher rate. To hold, on the one hand, that a tug, having contracted to tow, is bound, whatever happens after the contract, though not in contemplation of the parties, and at SALVAGE AND WRECK. 385 And it is not necessary that any actual interruption of the Sect. 839. towage performance should have occurred, in order to entitle the tug to a salvage in place of the towage remuneration. It is enough if those on board her would have been justified by the altered circumstances in abandoning the contract (s). Where, however, the tug has agreed to perform an extraordinary service, as to tow a disabled vessel into a place of safety, for a special sum, she is considered bound by the bargain, and must put up with any subsequent accident or difficulty without additional reward (^). And where the new danger to the vessel towed, or to the tug, has been occasioned by misconduct, or want of skill or care, on the part of those on the tug, or by an absence of proper equipment of the tug, there will be no right to claim salvage for the services which become needful m consequence (u). 340. When a vessel has been taken in tow without any express Distinction agi'eement, the question sometimes arises whether the service is to towage and be rewarded as towage or as salvage. A towage service has been ^^ ™^®" described to be " the employment of one vessel to expedite the voyage of another, where nothing more is required than the accelerating her progress" (x). That it should be a salvage service it appears to be at least necessary that the vessel taken in tow should at the time have been in danger (y) . But the tug need not have been so (s). all hazards to herself , to take the ship 318; The Galatea, Swab. 3i9 ; The to her destination ; or, on the other, White Star, L. E., 1 A. & E. 68 ; The that the moment the performance of the J. 0. Potter, L. E., 3 A. & E. 292 ; Five contract is interrupted, or its completion Steel Barges, 15 P. D. 142 ; The Liver- in the mode originally intended becomes pool, (1893) P. 154 ; The Westbum, 74 impossible, the tug is relieved from all L. T. 200. further duty, and at liberty to abandon (s) The J. 0. Potter, L. E., 3 A. & E. the ship in her charge to her fate, would 292 ; Fire Steel Barges, 15 P. D. 142. be alike inconsistent with the public (j) The Ejngaloct, 1 Spk. 263 : of. interests. The rule, as it is established, infra, b. 348. guards against both inconveniences, and ^^^ rj^^ Minnehaha, 4 L. T. 810 ; The provides at the same time, for the safety J^^■^^^^^. j^^^^^ g p p g^ . r^he Altair, of the ship and the just remuneration of /i o97\ p i ns the tug. The rule has been long settled ; , ^ „ ^ , . , „,,-.,. ..,.., ° , (x) Per Dr. Lushmgton, The Prmoess parties enter into towage contracts on .,.„-,„ ^ , , „„ , , , „ ™ It, J! -ii, 4! -4. J I, ij T, Alice, 3 W. Bob. 138, at p. 140 ; The the faith of it ; and we should be _. ' , , „ , '^ , , ,, , J ti 1, u Kingalook, 1 Spk. 263. extremely sorry that any doubt should ° ' " be supposed to exist upon it." Per W ^'^- ' '^^ Strathnaver, 1 A. 0. Lord Kingsdown, deUvering the judg- 68- Cf. The Albion, Lush. 282 ; The ment of the Privy Council, The Minne- Reward, 1 W. Eob. 174. haha, 4 L. T. 810. And see The Anna- {«) The JubUee, 42 L. T. 594; The polls, 5 L. T. 37 ; The Saratoga, Lush. Pericles, B. & L. 80. C. — C. C C 386 THE VOYAGE. Sect. 341. Effect on liability of cargo to con- tribute. 341. The distinction between pilotage or towage services which are and are not salvage services is important, not only with regard to the amount of the reward to be paid, but also with regard to the liability of the freighters to contribute towards the payment. Pilotage and towage are expenses which must ordinarily be borne by the shipowner, as part of the cost of the voyage : though if they have been iacurred under extraordinary circumstances, for the general safety of the ship and cargo, they become general average expenses {a). But where an ordinary pilotage or towage service is converted into a case of salvage, the claim of the salvors is against the cargo as well as against the ship, and the cargo must bear its proportion {b). Where salv- 342. Where the salving and the salved vessels belong to the vessels belong Same owner no claim can be made by him for the services ren- ownm!^ dered to his own ship. But the cretv of the salving vessel are entitled to salvage if the services they have rendered are outside the contracts entered into by them, and not paid for by their ordiaary wages (c). And, in such a case, the shipowner also may claim salvage for the services rendered to the cargo in the salved ship, if he was not under the circumstances liable to the owners of that cargo for its safety {d). But not so where he would have been liable for the consequences of the danger from which the cargo was saved, for the amount of salvage allowed would be re-elaimable by the owners of the cargo (e). (a) Akerblom v. Price, 7 Q. B. D. 129 ; Anderson i/. Ocean SS. Co.', 10 A. 0, 107; 13Q. B. D. 651. (b) Infra, s. 350. (c) The Sappho, L. E,., 3 A. & E. 142 ; 3 P. C. 690 ; The Miranda, L. E., 3 A. & E. 561. Of. The Maria Jane, 14 Jur. 857. ((Z) The Miranda, supra; The Cargo ex Laertes, 12 P. D. 187. («) The Glenfruin, 10 P. D. 108. Whether the common owner of the salv- ing and salved ships can claim for salving the cargo from a danger brought about by negligence of those on the salved ship, ■where the contract of carriage exempts him from liahiUty for that neg- ligence, seems doubtful. Salvors -who have themselves produced the danger are generally disqualified by the law from recovering salvage, on the ground that "no man can J profit by his own wrong.' ' (Cargo ex Capella, L. R. , 1 A. & E. 356 ; infra, s. 346.) On the othej hand, where the aahing vessel and crew had done nothing to produce the mis- chief, Sir E,. Phillimore held that the vessel could claim salvage, although she in part belonged to the same owners as another vessel which by negligent navi- gation had brought about the danger. (The Glengaber, L. E., 3 A. & E. 534.) In each case the test would seem to be whether the salvor is seeking to take ad- vantage of his own wrong, in the sense which the law of salvage puts on wrong. Salvage is a remuneration given by the law in those cases in which it is just, in SALVAGK AND WRECK. 387 343. Where the salved vessel was at the time under charter to Sect. 843. the owner of the salving vessel, it has been held that this owner Where one is may claim salvage if the charter was not such as to transfer tcTtS owner "^ possession of the salved ship to him (/) ; but otherwise where it °^ ^^^ °*'^®''- did transfer the possession (g^). ' On the other hand, the fact that the owner of the salving vessel has at the time chartered her to the owner of that which is salved, does not disentitle him from claiming salvage (h). 344. The amount of the salvage allowed in any case is determined Considera- by the Court, having regard to the extent, nature, and effect of the i^g ^-^^ services rendered, and the merit and sacrifice of the persons render- amount of ' ^ ■ salvage. ing them (i). In the first place, the degree of the danger in which the property salved was lying, its value, and the effect of the services in rescuing it from that danger, are to be considered. In the next place, in the case of personal services, the risks run by the salvor, his enterprise, endurance, and skill, and the severity and duration of his labour, are all taken into account {k). While in awarding salvage to the owners of the ship, or other property, by means of which the services have been effected, regard is paid to its efficiency [1) and value, and to the danger to which it was exposed, and the risks, such as loss of insurance {m), which the owners may have run ; also regard is paid to the damage which that property may have suffered, and the length of time during which the owners may, in consequence, have lost the use of it (w), and to extra expenses incurred (o). the view of the law, to give it ; and this Court, (1897) P. 59. cannot, it would seem, depend on the {k) The William Beokford, 3 C. Eob. terms of a contract made between the 365; The Clifton, 3 Hagg. 117; The parties in relation to other matters. In Grlenduror, Ii. E,., 3 P. C. 589. The Cargo ex Laertes (12 P. D. 187) {!) The Kenmure Castle, 7 P. D. 47 ; salvage was allowed although the danger The Ella Constance, 33 L. J,, Ad. 191; to the cargo was due to latent unsea- The Kingalook, 1 Spk. 263. As to worthiness of the ship, which was ex- vessels kept ready for salvage purposes, oused by the contract. But there was see The G-lengyle, (1898) A. C. 519 ; there no negligence of the shipowner. (1898) P. 97. Cf., however, TheCarronPark(I5P.D. (m) The Sir Ralph Aberorombie, 203) ; and see infra, ss. 373 (a) et seq. L. R., 1 P. C. 454 ; The Famley Hall, ,(/) The Collier, L. R., 1 A. & E. 83. 46 L. T. 216. Risks of mails and pas- (^) The Maria Jane, 14 Jur. 857. sengers: The MartinLuther, Swab. 287. (A) The Waterloo, 2 Dod. 433. Cf. («) The De Bay, 8 A. C. 559. A The Scout, L. R., 3 A. & E. 512. charterer of the ship is not generally (t) See as to the amount of the salvage entitled to any salvage for services ren- award, Kennedy, Salvage, Chap. VI. deredbyher: The Alfen, Swab. 189. Where ship was derelict, The Janet (o) The Edenmore, (1893) P. 79. cc2 388 THE VOYAGE. Damage to salving ship, and loss of her services. Sect. 344. The amount of the reward is reduced where salvors have acted under an agreement which entitled them to some reward whether their services were successful or not (p). Where some of the crew of the salving vessel are placed on the vessel salved, those who remain are also entitled to salvage, which is awarded according to the extra risk, lahour, and responsibility they thereby incur (q). 345. Where the salving vessel has sustained injury, or her owner has lost earnings, through rendering services of value to the owners of the property saved, and where that property is ample, not only to defray the losses thus sustained by the owner, in addition to a proper sum for the services of the master and crew, but also to leave a substantial surplus, then the amount awarded to the owner of the salving vessel ought to be enough to cover his actual loss, and also whatever additional risk he ran (r). But regard is always paid to the value of the property saved ; and an award will not be made of such an amount as to deprive its owners of the benefit of the service, with the view of recouping to the salvors their losses. It is one of the risks they run, that they may not be indemnified for their sacrifices. It is said that the Court of Admiralty has hardly ever, and then only in the case of a derelict, awarded as salvage more than half the value of the property saved (s) . 346. Where there has been want of care or skill on the part of salvors, that is taken into account in the award; and if by mistaken or improper conduct they have exposed the salved vessel to damage, the salvage wiU be reduced accordingly (t). So the salvage is reduced where the conduct of the salvors has been obtrusive (m), or violent and overbearing («). Misconduct of salvors does not generally disentitle them alto- Misconduot of salvors. {p) The Lepanto, (1892) P. 122 ; The Eate B. Jones, (1892) P. 366; The Edenmore, (1893) P. 79. (q) The Skihladner, 3 P. D. 24. See The Baltimore, 2 Dods. 132 ; The Emma, 3 W. Kob. 151. {r) The City of Chester, 9 P. D. 182 ; The De Bay, 8. A. C. 659 ; The Smmi- side, 8 P. D. 137. As to demurrage, The Mudhopper, 40 L. T. 462. («) Per Brett, M. R., The City of Chester, 9 P. D. 182, at p. 186. But of. The Erato, 13 P. D. 163. As to derelicts, see The True Blue, L. R., 1 P. C. 260 ; The Rasche, L. R., 4 A. & E. 127 ; The Amlrique, L. R., 6 P. C. 468 ; The Craigs, 6 P. D. 186. (i!)' The Dwina, (1892) P. 68 ; Tfee Yan Yean, 8 P. D. 147 ; The Atlas, 31 L. J., Ad. 210 ; The Magdalen, 31 L. J., Ad. 22 ; The Perla, Swab. 230. («) The Glasgow Packet, 2 W. Rob. 306. {x) The Marie, 7 P. D. 203. SALVAGE AND WRECK. 389 gether from claiming, unless it has been wilful, or sucli as to show Sect. 846. a culpable disregard of duty («/). But if their negligence has resulted in a loss to the ship which does not appear to be less than that from which she has been rescued, no salvage will be awarded ^s). Where salvors seized possession of a ship, as derelict, which had not been abandoned by her master and crew, and prevented the crew from returning to her, their claim for salvage was dismissed with costs (a). And no salvage can be claimed by persons through whose fault the property was origiually placed in jeopardy. Thus, the master- and crew of a vessel which was to blame for a collision, were not allowed to claim for services in saving cargo of the other vessel, though she also had been to blame (5). By the Merchant Shipping Act, 1894, s. 519, any person who finds or takes possession of wreck in the United Kingdom must, if not the owner, give it up as soon as possible to the receiver of wreck for the district, or he will forfeit all claim to salvage, and also will incur a penalty not exceeding 100?., and become liable to pay double the value of the wreck to the person entitled to it. 347. Agreements as to the amount of salvage to be paid are Agreements sometimes made between the salvors and. those on the salved ship ; !!!mu8tnoU)e and they are acted upon by the Court when they appear to have ^^^J^- been made fairly. But such an agreement is closely scrutiuised, and, if there has been unfairness, it is set aside. There ought to be on both sides a clear understanding of the nature of the agreement; and both parties to it should be com- petent, and in a position to form a judgment on the obligations to which they are binding themselves (c). It should be made deliberately, and with a knowledge of the circumstances. If material facts, for example as to the condition of the vessel (d), the extent of the peril, the difficulty of the work, or the chances of obtaining other assistance, are unknown to one of the parties, that {y) The Atlas, 31 L. J., Ad. 210; (J) CargoexCapella, L. R., 1 A. &E. The Duke of Manchester, 2 TV. Eob. 336. Of. The Glengaber, L.E., 3 A. & 470 ; 6 Moo. P. C. 90. E. 534 ; The Ettriok, 6 P. D. 127 ; The (.) The Tan Tean, 8 P. D. 147. ^^^f'i^Z^^ ^l""- ^ ^ „ ^' [c] The True Blue, 2 W. Eob. 176. (a) The Capella, (1892) P. 70. \d) The Kingalook, 1 Spk. 263, 390 THE VOYAGE. Sect. 347. may render the agreement invalid. Especially i£ they have teen kept tack by the other party, although unintentionally \e). Further, the position of those salved may have heen so critical that they had in truth no real alternative hut to accept the services of the salvors at any price. An agreement made under such circumstances is practically made under compulsion, and if the amount demanded and agreed to was excessive, it will he set aside. The Medina (/) was a steamship hound from Sumatra to Jedda with 650 pilgrims as passengers on board ; she was wrecked on the Parkin Eock in the Eed Sea on September 30, 1875, and the passengers were landed on the rock, which was six feet above water. The Medina went to pieces. On October 1st The Timor was sighted, and she came up in answer to signals. Her captain refused to rescue the pilgrims for a less sum than 4,000^., and an agreement was, therefore, signed by the captain of The Medina for the payment of that sum for carrying the pilgrims to Jedda. . The Parkin Eock is about 30 miles from the mainland, 240 from Aden, and from two to three days sail from Jedda. Had bad weather come on the lives of the pilgrims would have been in imminent danger. It was held by Sir E. Phillimore and the Court of Appeal that the agreement could not stand, on the ground that there was practical compulsion, and the sum claimed was exorbitant for the service rendered (t services in respect of the contract for freight the salvors had then earned, rendered " (e) . Dr. Lushington said : " Judging by this test, the salvors are entitled to salvage upon a considerable part of the total freight, for it is clear that a large portion of the voyage had been performed before the salvage services, and that the entire benefit {t) The Longford, 6 P. D. 60 ; The (a) The Charlotte Wylie, 2 W. Eob. Emma, 2 W. Eob. 315 ; The Vesta, 2 495 ; The Fleece, 3 W. Rob. 278, p. 282. Hagg. 189, at p. 193. (*) Cox v. May, 4 M. & S. 152 ; The («) The Longford, supra. Racehorse, 3 C. Rob. 101, p. 106 ; The (») Jonge Bastiaan, 5 C. Rob. 324. Westminster, 1 W. Rob. 229, p. 233. (y) The Willem III., L. R., 3 A. & E. (c) Ibid. 487. (d) Cox V. May, 4 M. & S. 162. Cf. (z) Abbott {5th), 356; (11th), vi. 1, mfra, s. 440. 11. (e) The Norma, Lush. 124. 394 THE VOYAGE, Sect. 351. of SO much was preserved, to the shipowners by the salvors, not indeed ahsolutely, for expenses had to be incurred, and the perils of the voyage from Bermuda home had yet to be undergone, but preserved from immediate and total loss. I do not think it necessary to enter into detailed calculation upon this question of the value of the salvor's services to freight, how far the Bermuda expenses are to be taken into account, what items are proper items of deduction, and so on: my judgment must, after all, be a rusticum judicium " (/). It seems, therefore, that the freight should contribute to the salvage upon an estimate made in this manner. In practice, the freight is made to contribute to salvage as to general average, upon the state of facts at the end of the voyage {g). Cargo sepa- 353. Grenerally the shipowner pays the salvage, and claims to salvors. contribution from the cargo. But the ship and cargo are each separately liable to pay their own shares. In The Pyrenn^e(A), where the proceeds of the ship only were in Court, payment out of them of the salvage due in respect of the cargo was not allowed. And in The Baisby (i), it was held that a shipowner was not liable for the salvage due in respect of the cargo, which he had delivered without requiring any security for payment of that salvage. Nor was he liable for omitting to obtain such security before delivering. He was under no duty to the salvors to procure it. In some cases, however, the shipowner may be liable to pay the whole salvage in the first instance. As where the master has agreed with the salvors to pay them a specific sum, he is under- stood to bind his owners to pay the agreed amount, without deduction for the share of the cargo (k). And where the ship- owner would have been liable to the owners of cargo for the consequences of the peril from which ship and cargo have been salved, he is liable to the salvors for the whole salvage, on cargo as well as ship {l). (/) Cf. The Dorothy Foster, 6 C. (j) 10 P. D. 114. Bob. 88 ; The Progress, Edw. 210. [k) The Cumbrian, 57 L. T. 205 ; The {g) See infra, s. 418. ^™^ Hemrich, 13 P. D. 31. {I) Duncan v. Dundee, &o. Shipping (A) Br. & L. 189. Cf. per Shee, J., in Co., 15 So. L. E. 429, -where the navi- Kemp V. Halliday, 34 L. J., Q. B. at gation had been negligent. Andseeper pp. 238, 239 ; M. S. Act, 1894, s. 544 ; Sir J. Hannen, in PiTe Steel Barges, 15 Cargo ex SohiUer, 2 P. D. 145, at p. 164. P. D. 142, p. 146, supra, s. 324. SALVAGE AND WRECK. 395 In awarding salvage, tlie value of the cargo is estimated at the Sect. 358. place where the salvage services terminate (w), deducting the usual Valuation of cargo, expenses and charges on a sale of the goods (m), but not expenses of insurance (-o). But in practice the cargo contributes to the salvage as part of the general average at the end of the voyage, upon its value then {p). This seems to be contrary to sound principles, but it is convenient. If the freight is made to contribute separately, the value of the cargo should not include the freight paid oH it. In Oox v. May {q) it was held that no contribution at all was payable to salvage in respect of the cargo, its value being less than the freight which became payable on its deHvery. 353. Where the shipowner has paid salvage due in respect of Shipowner the cargo he is entitled to a Ken upon the goods in his possession oontribntion. for their proportions (r-) . "As the contribution to salvage is in the nature of general average, it is subject to the same incidents, and is in effect the same ; and we therefore think that the plaintiff, as owner of the ship, who had paid the whole of the salvage, and had a claim against the owner of the goods for contribution, was entitled to a lien on the goods " (s). In Hingston v. Wendt {t) a vessel had gone ashore, and the plaintiff, a ship agent, had been put into possession of her and her cargo by the master, and had his authority to do, as his agent, what was for the benefit of all concerned. The plaintiff did the work, and expended the money sued for in discharging the cargo, and bringing it to a place of safety, where he kept possession of it. The ship broke up. The question was, whether the master, and the plaintiff as his agent, had a right to detain the cargo until the extraordinary expenditure thus incurred on its behalf had been paid or secured. It was held that he had that right as against the cargo owner, if the whole belonged to one, or as against the owners of the several parts of it, if it belonged to several, for the contribution due in respect of each. " The case is very analogous to general average and to salvage, (m) The GeorgeDean, Swab. 290 ; The [q) 4 M. & S. 152. Norma, Lush. 124. Of. The Stella, L.E., (r) Briggs v. Merchant Traders, &o. 1 A. & E. 340. Association, 18 L. J., Q. B. 178 ; Hing- ston V. "Wendt, 1 Q. B. D. 367. (») The Peace, Swab. US. (o) The Fleece, 3 W. Rob. (i») Infra, s. 418. (t) 1 Q. B. D. 367. («) Per Lord Denman, 18 L. J., Q. B. (o) The Fleece, 3 W. Rob. 282. at p. 180. 396 THE VOYAGE, Sect. 353. in both of which there is a lien. It is just and convenient that there should he a lien, and what scanty authority we can find all points in the direction of there being a lien, and we think that we must hold that there is one" (m). Unless he tas 354, But where the salvage services became requisite in con- teen m fault. 1. 1 1 . ,1 1 • i sequence of fault on the part of the ship, the shipowner cannot claim contribution from the owner of the cargo («), notwithstanding that he may have satisfied his full liability to damages for the negligence, by taking proceedings for limiting his Habihty, and paying 8/. a ton into Court (x). And where the cargo owners have been compelled to pay salvage in consequence of improper acts of the master, e. g., a wrongful abandonment of the ship, they may claim repayment from the shipowner, and may proceed in rem against the ship for the amount {y). Wreck. The right to 355. By the common law goods which come to the shore from TvrGok Sit common law. ^ wrecked ship belong to the Crown, unless there are marks upon them, or other evidence to prove an owner {&). Formerly the rule was, that if a living thing (a man or dog or cat) escaped from the ship, the owner of the goods should have them if he claimed them within a year and a day, otherwise they remained to the king, or to his grantees of wreck {a). But this appears to have been an illustration only of how the ownership might be ascertained. In later times, at any rate, it has been well established that the owner may claim the goods on proving his title, quite independently of whether any living thing has escaped (J). The right to wreck was frequently granted to lords of manors, and in most manors on the sea coast the lords claim the right, and prove it against the Crown by usage, from which a grant may be presumed (c). («) Per Blackburn, J., 1 Q. B. D. at [a] Bao. Abr. uhi supra; Broom & p. 373. Had. Comm. I. 361 et seq. ; 3 Edw. 1, (x) The Ettriok, 6 P. D. 127 ; The 0. 4, repealed by Stat. Law Rev. Act, Capella, L. R., 1 A. & E. 356. 1863. {y) The Princess Royal, L. R., 3 A. & (i) Hamilton e. Davis, 6 Burr. 2732 ; E. 41. Constable*^8 Case, 6 Coke's Rep. 106 a. (z) Bao. Abr. " Prerogative " B. 7 ; (c) See R. v. 2 Casks of Tallow, 2 W. Constable's Case, 5 Coke's Rep. 106 a. Rob. 294, SALVAGE AND WRECK. 397 So where a ship is derelict (d), or where goods have been thrown Sect. 356. out of a vessel to lighten her (jetsam), or have been sunk but tied to some« floating mark to show the place (lagan), or have been washed out of the ship and remain afloat (flotsam), in these cases, also, the property belongs to the Crown in its office of Admiralty, unless the owner establishes his claim to it (e). 356. The manner in which wreck on the coasts of the United Statutes re- Kingdom is to be dealt with is regulated by statute. By the wreck. Merchant Shipping Act, 1894 (/), the general superintendence of all matters relating to such wrecks was placed under the control of the Board of Trade ; and it was empowered to appoint receivers of wreck throughout the kingdom. By sect. 511, " Where a British ,or foreign vessel is wrecked, stranded, or in distress {g) at any place on or near the coasts of the United Kingdom or any tidal water within the limits of the United Kingdom, the receiver of wreck for the district "shall take steps for the preservation of the ship and cargo, and the lives of those on board. By sect. 518, — Any person who finds or takes possession of any wreck within the limits of the United Kingdom must, if he is the owner, give notice to the receiver of the district ; and if not the owner, must deKver it to the receiver. By sect. 519 :— "(1.) Where a vessel is wrecked, stranded, or in. distress at any place on or near the coasts of the United Kingdom, or any tidal water within the limits of the United Kingdom, any cargo or other articles belonging to or separated from the vessel which may be washed on shore or otherwise lost or taken from the vessel shall he delivered to the receiver. " (2.) If any person, whether the owner or not, secretes or keeps possession of any such cargo or article, or refuses to deliver the same to the receiver or any person authorised by him to demand the same, that person shall for each offence be liable to a fine not exceeding 100^. " (3.) The receiver, or any person authorised as aforesaid, may take any such cargo or article by force from the person so refusing to deliver the same." (. Gary, 2 .Curt. Cir. previously been carried away by sea- C. 69 (U. S.). peril, shall not be made good as general (o) See Pirie v. Middle Dock Co. 44 average." L. T. 426 ; Whitecross Wire Co. v. {m) See Benecke, 170, 183 and 219. SaviU, 8 Q. B.D. 653. Iredale v. China, («) Lowndes (4th), 124 ; Macl. 608; &c. Co., (1899) 2 Q. B. 356. PhilKps, s. 1271 ; Parsons, M. Inst. II. (p) 1 East, 220. 414 THE VOYAGE. Sect. 372. 372. If some of the property be ultimately saved, it is not neces- The act need gary that the beneficial results should have been due to the sacrifice not be sue- .„. , . . • ■, , , j -t i^- / \ a x. oessful. itself, m order to give rise to a right to contribution {q). bucn a distinction would lead to great difiioulties. Moreover, the sacrifice was an experiment, made with a view to the general safety, and as such should be contributed to. The same is true even though the sacrifice was the result of a mistake by the master as to the nature of the danger. As where damage was needlessly done in order to get at a leak, mistakenly supposed to be below the water line (r). Hence, if after a jettison the ship be wrecked, though in the same storm, but part of the property be saved from the wreck, that must contribute to the jettisoned goods. But, as we shall see later (s), the value to be so contributed to is estimated with reference to the risks the jettisoned goods would have run if they had continued on board. And if they would in that case have been lost that value is reduced to nothing. Wliere the act 373. It may happen that what originally was intended to be a property Sacrifice becomes in fact the means of salvation of the goods which sac^oed. ^ ^^ ^^^ meant to sacrifice ; as where the ship is wrecked after they have been intentionally exposed by being placed in lighters, or discharged on to the shore, in the hope of saving her. In such a case it may be doubtful whether goods saved from the wreck should contribute to damage sustained by the exposed goods, while they were thus, in fact, being put into a position of greater safety (t). The rule just referred to seems, however, to meet this case also. The exposed goods must be deemed to have remained in the ship ; and if the damage they would probably have there sustained would have been not less than what they actually sustained, there should be no contribution {u) . Exception 373a. The exception to the rule of contribution, in cases where produoedby^'^ the danger which led to the sacrifice was brought about by the person^ckhn- ^^^* °^ ^^® person claiming, has not been very f uUy discussed in ing contribu ^he books. tion. (?) Am. (3rd), 807 ; Benecke, 172, («) Infra, s. 418. 179 ; Lowndes (4tli), 38 ; Pars. M. Ins. (0 Benecke considered that there TT 281 SOO should be no contribution to goods put ' ' into lighters, unless the ship were {r) The Wordsworth, 88 Fed. Rep. saved : p. 212. 313. (m) Infra, a. 418. Cf. Benecke, 306. GENERAL AVERAGE. 416 The earlier view appears to have been that where there had been Sect. 373a. fault, the sacrifice was not to be regarded as a general average act ; and, consequently, that no contributions were to be made, but the person in fault was to be looked to («). This view is not now taken. " The Ehodian law, which in that respect is the law of England, bases the right of contribution, not upon the causes of the danger to the ship, but upon its actual presence" {y). And Ji^^^antnot thus innocent sufferers from a general average sacrifice necessitated afPeoted. by neglect, or other improper conduct, may claim contributions from other innocent co-adventurers, as well as from those who brought about the danger (s). In Strang v. Scott {a), the ship had stranded owing to negligent navigation. It was held that this fact was no answer to a claim by shippers whose goods had been jettisoned, to lighten the ship, . against the owners of the rest of the cargo. They " were not privy to the master's fault, and were under no duty, legal or moral, to make a gratuitous sacrifice of their goods for the sake of others to avert the consequences of his fault" {y). But a LLmitation of the right to contribution, when the danger has been improperly caused by those who claim the contribution, has been frequently insisted upon. In Schloss V. Heriot (&) it was held, on demurrer, that a plea was good which alleged that the ship's unseaworthiness had necessitated the expenditure to which the plaintiff (the shipowner) claimed general average contribution. Erie, 0. J., said : " It shows that the plaintiff was himself the cause of the loss, that his actionable negligence and misconduct produced the very damage for which he seeks to recover contribution from the defendants. Further, I am of opinion that, if necessary, the plea is sustainable on the ground that the defendants would be entitled in a cross- action to recover back the whole sum claimed by the plaintiff in this action." In The Ettrick (c), the question was whether the shipowner could claim contribution from the cargo towards the expenses of raising (x) See, as to overloading', MoUoy, Mining Co., 74 Ped. Eep. 564. p. 249 [(4th ed., 1688) ; Beawes, p. 244 (2) cf. The Strathdon, 94 Fed. Rep. (ed. 1813) ; Malynes, p. 113. 206. (y) Per Ld. Watson, deliTering the U A C 601 judgment of the Privy Council in Strang ^ ' V. Soott, 14 A. C. 601, at p. 609.; (*) 14 C. B., N. S. 59. Pacific Mail SS. Co. v. New York, &o. (c) 6 P. D. 127. 416 THE VOYAGE. Sect. 373a. ship and cargo, which had been sunk owing to negligent navigation by his servants. Brett, L. J., said : " He has been in fault, and the authorities are decisive that if the general average contribution which he claims is a general average contribution which arose by reason of a default of his, he cannot claim anything " (d). And Cotton, L. J., said : " It would be against equity to say that the person who himself has done the wrongful act which caused the expenditure shall claim thereupon from anybody else " (e). In Pirie d. Middle Dock Company (/), Watkin Williams, J., after referring to a dictum of Wiljes, J., in Johnson v. Chapman (g), said : " All that that case decides is that if the owner of the interest sacrificed was himself in fault, and was the cause of the danger which necessitated the sacrifice, he must bear the loss himself, and could not throw it as a general average on the whole adventure ; or, as it has been expressed in one of the decisions, he cannot take advantage of his own wrong. This is strictly in accordance with the maritime law, and had been laid down in several previous decisions." And, in Strang v. Scott, already referred to. Lord Watson said : " When a person who would otherwise have been entitled to claim contribution has, by his own fault, occasioned the peril which mediately gave rise to the claim, it would be manifestly imjust to permit him to recover from those whose goods are saved, although they may be said, in a certain sense, to have benefited by the sacrifice of his property. In any question vnth them he is a wrong-doer, and, as such, under an obligation to use every means within his power to ward off or repair the natural consequences of his wrongful act. He cannot be permitted to claim either recom- pense for services rendered, or indemnity for losses sustained by him, in the endeavour to rescue property which was imperilled by his own tortious act, and which it was his duty to save. Schloss v. Heriot is the leading English authority upon the point " (h). Grounds of 373b. There is, however, some uncertainty as to the grounds tois limita- , „ , . , . tion. and the extent of this limitation to the right to contribution. One view has been that the fault which prevents a claim for contribu- tion must be one which renders the person claiming liable to a W 6 P. D. at p. 135. (pr) 19 0. B., N. S. 563. (e) 6 P. D. at p. 137, (A) U A. C. at p. 608. See also The (/) 44 L. T. 426, p. 429. Irrawaddy, 171 U. S. 187, p. 189 (1897). GENEEAL AVERAGE. 417 cross-action, in which the contribution would be reclaimable in full Sect. 373b. by the contrihutor, as damages. On this view the shipowner, or other person whose fault has produced the danger, is not dis- entitled to contribution, but he is not allowed to recover it, owing to the rule against circuity of action. The judgment in Schloss v. Heriot («) perhaps left it doubtful whether this was not the ground of the decision.' But the opinions of the judges in subsequent cases, cited above, show plainly that the fault takes away the right to contribution {Ji). And we should expect that, as the right to general average contribution is based upon principles of justice, it must have some limitations also based upon the view taken in the law as to what is just {f). It therefore seems certain that the loss of the right to contribution does not turn upon any mere rule of procedure, such as that against circuity of action (m). It is the fault of the claimant which, on equitable grounds, excludes the right. But another view is that, without reference to any rule of pro- la it affected cedure, the fault which takes away the right to contribution must in the con- be one which gives a right of action to the person who would *arriaffe otherwise be liable to contribute, either as being a tort or as a breach of contract. So that if unseaworthiness or negligent navigation are, by the contract of carriage, not to be counted as faults against the shipowner, it is said that his right to contribu- tion cannot be lost on the ground that unseaworthiness, or bad navigation, made the sacrifice necessary. This seems to mistake (i) 14 C. B., N. S. 59. takes place where one of several interests (A) In The Ettriok, 6 P. D. 127, in has been sacrificed for the rest ; and that particular, the rule against circuity of the apparent exception to the rule which action would not have applied. For the we are discussing arises when, and only- shipowner there had taken proceedings when, all the interests were at the time to limit his liability, so that the owners of the sacrifice merged in one ; as where of the cargo could only have got back the shipowner had, by bad navigation, a dividend upon their contributions, if become responsible for the harm which they had been liable to make them. might, but for the sacrifice, have [t) " Such exceptions as that re- happened to the other interests. The cognised in Schloss v. Heriot are in judgments above quoted show that the truth limitations on the rule which limitation has not been based on this have been introduced from equitable con- view. Moreover, it is not true that sidemtions in the case of actual wrong- there are no longer several persons doers, or of those who are legally interested when one has become liable responsible for them." Per Ld. Watson to indemnify the others. A right to in Strang v. Scott, 14 A. 0. at p. 609. indemnity, even when complete, does {m) Another way of stating what not displace the direct interest in the amounts to the same ground is, that ship or goods ; and frequently it is not general average contribution always a practical equivalent for that interest. C. C, E E 418 THE VOYAGE. Sect. S73b. the relation tetween tlie law of general average and the contract of carriage. The rules as to general average are rules of positive law ; and though it may be said (if it seems worth while) that they are adopted by the parties in their contract, impKedly, still the rules are not creatures of the contract ; they are creations of law, of old standing, universally applicable, without regard to whether any contract of carriage has or has not been made. The contract of carriage may, no doubt, modify those rules as between the parties. Whether it does so in any case is a separate question. But the rules themselves are independent of the contract, and their meaning must be sought in the law and not in the contract. That this is ^o will appear more clearly when we remember the occasion and object of the rules of contribution. They were established to secure equality among co-adventurers on occasions of extraordinary emergency, when the general safety of the lives and property at stake could only be secured by in part destroying the adventure. In these unlooked-for circumstances relationships and questions arise with which the contracts between the several co-adventurers and the shipowner do not usually, and cannot suffi- ciently deal. If a shipper's rights to contribution in general average spring from contract at all, it must be from a contract to which all the co-adventurers are in some way parties. Those rights are, in truth, given and regulated by the law of general average, the cardinal object of which is to place those who have been put to sacrifice in the same position as those from whom no sacrifice has been required ; and thus to make it indifferent whether the loss is in the first instance cast upon one or upon the other. This object would often be missed if the rule of law depended upon the vary- ing contracts between the different parties to the adventure. A jettison of A.'s goods might give a right to contribution from the shipowner, while a jettison of B.'s goods might not. X. might be liable to contribute to a sacrifice of the goods of another shipper, Y., but not to the cutting away of the ship's masts. And, indeed, there is no trace in the statements which have been given of the rule of general average contribution that it depends upon the terms of the contract of carriage. While, on the other hand, it has frequently been held that those terms, where they do not expressly modify the rule, have no effect upon it. " The office of the bill of lading is to provide for the rights and liabilities of the parties in reference to the contract to caxry, and. is GENERAL AVERAGE, 419 not concerned with liabilities for general average " (w). Thus, an Sect. 373b. exception of "perils of the sea" in the hill of lading does not relicYe the shipowner from contributing towards a jettison of cargo necessitaited by sea perils. Nor does the exception of "fire and the consequences thereof " relieve him from contributing to damage to cargo done in extinguishing a fire on board (o). So, also, a stipulation in a charter party that the deck-load should be "at merchant's risk " did not relieve the shipowner from liability to contribute to a Jettison of that load {p). The true conclusion then, it is submitted, is that the limita- tion, set hy law, to the legal right to contribution, is generally independent of the contract of carriage (g), as well as of rules of procedure. The extent of the limitation depends on the view of the law as to what justice requires, and the cases above cited show that the limitation -applies where the need for the shipowner's sacrifice has been caused by negligence on his part, or on the part of his servants, in properly fitting the ship for the voyage, or in making her seaworthy, or ia navigating her. They also seem to show that the same limitation precludes the claim to contribution of a cargo- owner, where the danger which has led to a sacrifice of his goods was caused by their unfitness for shipment, if his conduct in shipping them was wrongful or negligent (r) . Whether the limitation would apply where the condition of the ship, or of the goods, has produced the danger, but without any negligence on the part of the shipowner, or of the shipper, seems to be more doubtful. 373c. It must, however, be confessed that the theory here put The Carron forward seems to be in conflict with the judgment of Sir J. (re) Per Lush, J., in Sohimdt». Royal In the U. S. it has been held that an Mail SS. Co., 45 L. J., Q. B. 646. Ee- exception of " jettison " does not affect peated in Crooks 1!. Allan, 5 Q.B. D. 38; the ship's liability to contribute to a and adopted by the Court of Appeal in jettison, The Allianca, 64 Fed. Rep. 871, Burton i). English, 12 Q. B. D. 218. (1894) ; also that the cesser clause in a (o) Schmidt v. Royal Mail SS. Co., charter party does not relieve the ohar- and Crooks ti. Allan, supra. Even the terer from liability to make general broad exemption, under M. S. Act, 1854, average contributions, Marwiok v. B. 503, from making good any loss or Rogers, 163 Mass. 60; The Eliza Lines, damage "by reason of any fire happen- 61 Fed. Rep. 308. ing on board " had not that effect. Ibid. {q) But see The Carron Park, 15 P. D. The same view, both as to the bill of 203, cited below. Cf . the effect of the lading and the statutory exemption, is contract on the shipowner's right to taken in America, The Roanoke, 59 Fed. claim salvage, supra, s. 342. Rep. 161. [r) See, as to a shipper's responsibility (i?) Burton «>. English, 12 Q. B.D. 218.' for dangerous goods, supra, s. 278. E E 2 420 THE VOYAGE. Sect. 373c. Hannen, in the ease of The Carron Park(s). A claim was there made for contribution from the cargo in respect of general average expenditure incurred in consequence of water getting into the ship. This had happened through negligence on the part of the ship's engineers, and it was contended that the shipowners could not therefore recover the contribution claimed. But the charter party contained an exception of "any neglect or default what- soever of the pilot, master, crew, or other servants of the ship- owners," and Sir J. Hannen held that this justified the shipowner's claim. He said, " The claim for contribution as general average cannot be maintaiaed where it arises out of any negligence for which the shipowner is responsible ; but negligence for which he is not responsible is as foreign to him as to the person who has suffered by it." And after citing a passage from Strang v. Scott, he added, " Here it appears to me that the relation of the goods owner to the shipowner has been altered by the contract that the shipowner shall not be responsible for the negligence of his servants in the events which have happened." This judgment seems certainly contrary to the view that the rules of general average are independent of the contract of carriage; unless it can be regarded as a decision that the parties had there intentionally altered those rules, as between themselves, with regard to that shipment. It is of course always competent to the parties to do that. They may by their agreement modify the law, or get rid of it altogether (^). But it is difiScult to reconcile the decision that a mere general exception of negligence in the contract of carriage will effect this with the cases which have been referred to above (u). The difference between those cases and The Oarron Park is that the latter dealt, not with the affirmative rule of contribution, but with the negative limitation to that rule. But it is submitted that the same principle of construction should be applied. " Those who wish to make exceptions in their own favour by which they are to be relieved from the ordinary laws of the sea ought to do so in clear words" («). This seems as applicable to a shipowner (s) 15 P. D. 203 (1890). parties in that relation have teen varied {t) This seems to be all that -was by special contract between them and meant by Lord Watson in Strang v. the shippers." Scott (14 A. C. p. 609), when he said that no contribution oonld be recovered («) Sect. 373b. by the owners of the ship, "unless the W ^er Bowen, L. J., in Burton v. conditions ordinarily existing between English, 12 Q. B. D. p. 224. GENERAL AVERAGE. 421 claiming contributions, contrary to tlie ordinary limitation to that • ^"^°- right, as it is to one who seeks to avoid the ordinary obligation to contribute. The Carron Park decision was approved by Barnes, J., in The Mary Thomas (y), and was followed by Mathew, J., in Milburn v, Jamaica, &c. Co. (s). It has not, apparently, been yet considered in the Court of Appeal. In the Supreme Court of the United States it has, in effect, been dissented from. The Irrawaddy (a) raised the question whether sect. 3 of the Harter Act, which exempts the shipowner from responsibility " for damage or loss resulting from faults or errors in navigation," had the effect of enabling him to claim con- tributions to general average expenditure, necessitated by neg- ligent navigation. It was held, by a majority of the Court, that it had no such effect. " It is one thing to exonerate the ship and its owner from liability for the negligence of those who manage the vessel ; it is another thing to authorize the owner to do what he could not do before, namely, share in the general average occasioned by the master and crew " (b). 374. The sacrifice ought, generally speaking, to be made under Sacrifice the directions, or with the authority, of the master, or other person raUy be^by^" in command of the ship. But that does not appear to be an "'^ster. (y) (1894) P. 108. The negligence does not alter that, hut (z) i Com. Ca. 331. merely gives a claim against those in / X /,nnn, .», TT a 10.T o 1 fault (ses Jacohs, Dr. Mar. Beige, (a) (1898), 171 TJ. S. 187. See also ,,/-,» ■. . \ -^ ^ n ;, ,Ao^ ^ ' ^ ' SB. 416, 417 ; but cf. Belg. Code, 103) ; Trinidad, &o. Co. v. France, 88 Fed. ^^^ ^^^^ ^^^ j^ defeated by an excep- ' ilep. 528. tion of negligence. On the other hand, (S) Per Shiras, J., delivering the the German Merc. Code (704), and the judgment of the Court, 171 TJ. S. 194 ; Danish Mar. Comm. Code of 1892 (191), Brown and McKenna, JJ., dissented. expressly disallow claims for contribn- Deoisions similar in effect to that in The tion by one whose fault has occasioned Carron Park have been given in France : the danger. In Holland the Code (700) The Alexander Lawrence, C. de Cassa- excludes from general average damage tion (1894), 10 K. I. D. M. 147 ; and in or expense caused by neglect of master C. A. Orleans (1895), 11 E. I. D. M. 41. or crew ; and a negligence clause has Alsoin Belgium: The Alacrity, Trib. of been held not to alter that (see The Comm. Antwerp (1895), 11 E. I. D. M. Mary Thomas, (1894) P. at p. 11). In 123. But these decisions turned upon The Strathdon, 94 Fed. Rep. 206, it was the effect of the codes. In each case the held in the District Court of New York question was as to expenses in a port that if a general average adjustment is of refuge ; and all such expenses, in- made of cargo sacrificed, the shipowner, curred for the connmon good and safety, though in fault, must be allowed to are by the French Code (400), and the bring ia his general average losses ; see Belgian Code (102), general average. supra, s. 103e. 422 THE VOYAGE, Sect. 374. essential ; the real questions are, was a sacrifice necessary for the general safety ? and were the measures taken reasonahly prudent in -view of that necessity ? It is conceivable that a sacrifice might fulfil these conditions although made contrary to the will of the master (c). In Mouse's Case (rf), a jettison for the general safety was held to be lawful ; and though nothing was there said about general average contributions, there can be little doubt that if the jettison for the general safety has been lawful, the rule of con- tribution applies, however it was made. In Price v. Noble (e), the ship was in the hands of captors at the time of the jettison; her master had been taken away, but the mate was left on board, and the goods appear to have been thrown over under his directions, though with the assent of the captors. It was held to be a general average act. The early codes and the writers on the subject prescribed that before making a sacrifice consultations should be held between the master and mariners, with certain forms to be observed (/). These are no longer requisite {g) ; but still the act must be done with reasonable care and prudence, not in panic or recklessness, other- wise it cannot be regarded as a general average loss ; and, subject to the contract, the shipowner must answer for it (A). Sacrifice made by independent authority,. 374a. The matter takes another shape where the sacrifice has been made independently of those in control of the adventure. In the United States the question has several times arisen whether the scuttling of a ship on fire, in port, by the port authority, is a general average act, to be contributed to by the various interests on board. In EaUi v. Troup {i), it was decided by the Supreme Court that, as the scuttling had there been done by the port authority acting on their own judgment, though with consent of the master, it was not a case for contribution. "As the sacrifice must be for the benefit of the common adventure, and of that adventure only, so it must be made by some one specially charged with the control and safety (e) Beneoke, 172. But cf . Maol. p. 664 ; Phillips, Ins. B. 1280 ; Kent, Comm. III. 234 ; Jacohsen, Sea Laws, Bk. iv. oh. 2, p. 345. . Authority of crew, The Niraiod, Ware, 14 (Amer.). [d] 12 Co. Eep. 63 ; cited supra, s. 15. {e) 4 Taun. 123. (/) Abbott (5th), 345 ; (13th), 629. {g) Birkley v. Presgrave, 1 East, 220. (h) Supra, s. 294. (J) 157 U. S. 386 (1894); and see Wamsutta Mills v. Old Colony Steam- boat Co., 137 Mass. 471 (1884) ; cf. The Koanoke, 46 Fed. Eep. 297; 69 Fed. Eep. 161. GENERAL AVERAGE, 423 of that adventure, and not be caused by the compulsory act of Sect. 374a. others, whether privileged persons or pubKo authorities" (k). On the other hand, in Papayanni v. Grampian Steamship Co. (l), where the ship had been scuttled at a port of refuge by orders of the captain of the port, Mathew, J., held that, as that was done in the interest of the ship and cargo, and there was no evidence of any other motive, the loss was a general average sacrifice. 374b. Again, the interest sacrificed must have been part of a claims as common maritime adventure, with the interests from which con- ggp^^te tributions are claimed. It seems doubtful whether rights of *ips. contribution can ever arise as between interests which are at risk upon separate ships. In The J. P. Donaldson (m), a tug, which had been towing some sailing barges, cast them ofE in a storm, to save herself from going ashore. The barges went ashore, and were lost with their cargoes. The tug arrived safely. She had been towing on the terms of receiving part of the freight which would have- been earned by the barges. A claim for contribution in general average was made agamst the tug by the owners of the barges. It was held by the Supreme Court of the United States that no contribution was payable. The master of the tug was not in control of the barges in the sense necessary to empower him to make a sacrifice binding tug and barges as a single maritime adventure. In all respects, except that of performing the contract of towage, the barges were under the control of their own masters. " The master of the tug having no authority to decide, as between a barge and her cargo, what part shall be sacrificed for the safety of the rest, and thereby to subject what is saved to contribution in general average for what is lost, can surely have no greater authority by abandoning all the barges with their cargoes to subject the tug to a general average contribution " (w). In Dabney v. New England, &c. Co. (o), part of the cargo of a ship was thrown overboard to enable the ship to receive the passengers and crew of a vessel in distress. It was held by the Supreme Court of Massachusetts that the jettison was not a general (A) 1S7 U. S. at p. 419. Comm. 234 (n) ; -where the cutting of a {tj 1 Com. Ca. 448. cable to prerent a collision -with another (m) 167 U. S. 699 (1897). vessel was not a ground for contribution («) 167 U. S. p. 605. See also The from that vessel. Of. Phill. a. 1311. John Perkins, 3 Ware, 87; 3 Kent (o) 14 AUen, 300 (1867). 424 THE VOYAGE. Sect. 374b. average sacrifice, so as to entitle the cargo owner to recover from his insurer. The sacrifice had not been made to avoid a danger to the original adventure. mere all 374g_ jj; }^^ i^gg^ gg^j^^ ^j^^t in order to give rise to general belong to one average contributions the ownership in the property at risk at the owner. -r-r-r- time of sacrifice must not all be in the same person. Where ship, freight, and cargo all belong to one and the same owner there is no opportunity for contributions, in the ordinary sense ; for the loser and contributor are the same person. And it has been held that this is equally true although different portions of the property at risk may have been insured with different underwriters. In The Brigella {p),a ship sailed outwards in ballast under a charter to bring back a homeward cargo, for freight to the shipowner. Port of refuge expenses were incurred on the outward voyage. It was held that these could not be treated as general average expenses, so as to found a claim by the shipowner, against his insurer of the chartered homeward freight, for a contribution supposed to have been paid by that interest. It is hard to believe that such a wide difference is intended, in the effect of an ordinary poHey, merely because the interests are all held by the assured. Losses which from their voluntary character would usually be general average might well be treated, as between insurer and assured, as having that nature, although there may have been no contributories (q). In the United States they are so treated (r). But the matter is outside our subject. Jettison of 375. The most familiar instances of general average sacrifices are jettisons — the casting overboard of cargo or stores in order to lighten the vessel. The requisites of such an act were thus described by Abbott (s) : — " The goods must be thrown overboard. The mind and agency of man must be employed. If the goods are forced out of the ship by the violence of the waves, or are destroyed in the ship by lightning or tempest, the merchant alone must bear the loss. They must be thrown overboard to lighten the ship. If they are cast overboard by the wanton caprice of the crew ip) (1893) P. 189. Infra, a. 438. upon the right of contribution. {q) See Beneoke, 473. It should not (r) See PhiU. Ins. 1374; Potter v. be overlooted that a general average Ocean Ins. Co., 3 Sumner, 27 (1837) ■ sacrifice is made primarily for the safety Greeley t>. Trimont Ins. Co., 9 Cush. of the lives on board. The special (Mass.), 415 (1882). character of the loss does not depend (s) Abbott (5th), 344 ; (13th), 628, GENERAL AVERAGE. 425 or tlie passengers, they, or the master and owners for them, must Sect. 375. make good the loss. The goods must he thrown overheard for the sake of all; not heoause the ship is too heavily laden to prosecute an ordinary course through a tranquil sea, which would he the fault of those who had shipped or received the goods [t) ; but because at a moment of distress and danger their weight, or their presence, prevents the extraordinary exertions required for the general safety. When the ship is in danger of perishing from the violent agitation of the wind, or from the quantity of water that may have forced a way into it, or is labouring on a rock or a shallow, upon which it may have been driven by a tempest; or when a pirate or a-n enemy pursues, gains ground, and is ready to overtake it, — no measure that may facilitate the motion and passage of the ship can be really injurious to any one who is interested in the welfare of any part of the adventure, and every such measure may be beneficial to almost all." 376. It is not necessary that the goods should have been thrown I'l^tt^g «"* _ "^ ° _ cargo in boats away with the intention of abandoning them. They may have or on to beach, been put out in boats, or on rafts; or landed on to the beach, where the vessel is stranded ; and if they have been damaged or lost owing to this extraordinary exposure, and if that has been done for the general safety, the loss is a general average loss {u). The difficulty in such cases is to distinguish whether the goods have been taken out of the ship for the general safety; or for their peculiar benefit, in the hope of securing and saving them. If the latter has been the object, the damage sustained by the goods owing to the exposure is not a matter for contribution («) ; if the former, it is. Where both motives have been in operation, the test seems to be, was the situation such that the goods would have been taken out, in the manner adopted, whether the ship would be thereby benefited or not? If they would, then the removal of them was not a general average sacrifice. For though the ship, and the cargo remaining in her, may have incidentally derived advantage, it was no sacrifice of the goods to remove them : that has been for their own peculiar advantage. On the other hand, if the goods were taken out in order to save the ship, and themselves through her safety, then there has been a sacrifice, even though the safety WSee Strang v. Soott, 14 A. G. 601, , > „ ■nn.-j.j. -j -nt • /. -nr o ' ' „ ,, „,. . „. „ „ A i. /-.onm r> 1 T ■ «XT ■ ii- (ff) Goulds. Oliver, 4 Bing. N.C.I 34; Antwerp (1890) Eule I. is " No jettison }■" ' = l' ' ' fji 1,11V A ^ Milward v. Hibbert, 11 L. J., Q. B. of deck cargo shall be made good as , „_ _. . , , ,, ' , » ' „ „ , T, , , , 137. Wnght V. Marwood, 7 Q. B. D. general average. Every structure not „„ _, , , built in with the frame of the vessel ^^- There may, however, be a custom Shan be considered to be a part of the ^'"°'^.f ™'i«™"ters not to repay such deck of the vessel." Brett, M. E., in contributions under the ordmary pohcy : T.. -D 1 -CI 1. oi.- ■ n MiUer 'I/. Tithermgton, 30 L. J., Ex. Dixom;. Eoyal Exchange Shipping Co. „,..„, y j -p^oR, (May 18, 1885), said that goods in a ^^l > ; ^^- ■^bd. deck-house must be treated as goods (A) Johnson v. Chapman, 35 L. J., loaded on deck. Cf. The Neptune, 12 C. P. 23. 428 THE VOYAGfE. But not so in a general ship. Sect. 380. exclude the cliarterer's right to coiitrihtition from the shipowner towards a jettison of goods stowed on deck («). But in that case, the voyage was with timber from the Baltic to London, and it was admitted that there was a custom to carry deck cargoes on such voyages. 381. On the other hand, in "Wright v. Marwood {k), where the ship was a general ship, and the shippers of the deck cargo did not own that which was below deck, it was held by the Court of Appeal that no contribution to a jettison was payable by the ship- owner, or by any one else. Cattle had there been shipped under an agreement, by which "the upper deck of the steamer Gladys, except so much as is necessary for the proper working of the vessel in the master's judgment," was let for the purpose. They were jettisoned by the master during stress of weather, for the safety of the ship. It was held that the shipowner was not liable to contribute either on the basis of a general average loss, to be spread over the whole adventure, or of a loss to be borne by the owners of the ship and the deck cargo alone [1) . " We prefer to hold that the plaintiffs shipped their cattle as they did, without bargaining for compensa- tion from any one if they were jettisoned, and must bear all the loss themselves, at least without such rights to contribution as they are now claiming " (w). 382. Again, the sacrifice to be contributed to may be of things belonging to the ship itself. Ship's stores may be thrown over- board ; anchors and cables may be slipped and abandoned ; masts may be cut away ; or holes may be cut in the deck, to enable the cargo to be got out and jettisoned. Such acts, when done under the pressure of a common danger, for the common safety, entitle the shipowner to contribution from the cargo-owners, both in respect of the value of what is cast away, and of the damage done to the ship by taking it away. Any damage to the cargo directly consequent upon such an act, as when water gets in through a hole made by cutting away a mast, is also a general average loss (m). Sacrifices of ship and ship's stores. (i) Burton V. English, 12 Q. B. D. 218. {k) 7 Q. B. D. 62. {T) As to a, former practice to make "general contribution," by shipowner and owners of deck load, in some cases, see Lowndes (4th), 55. [m] 7 Q. B. D. at p. 71. See, how- ever, Strang v. Scott, 14 A. 0. 601, p. 609. (m) Maggrath v. Chiu-ch, 1 Caines, 196 ; Pars. M. Ins. II. 309. GENERAL AVEEAQE. 429 There is, however, an important difficulty in laying down the Sect. 38S. principle on which the shipowner is thus entitled to contribution. His undertaking is to bring the goods to their destination ; and though he may be excused where a loss has happened by perils of the sea, that will not be so unless he has done what he could to avert the danger. He is not excused upless he has been prevented by the excepted perils ; and that is not the case where the peril could be avoided by a sacrifice, unless it would be unreasonable to require it (o). It cannot be said that all sacrifices of part of his property are beyond what may be reasonably required of the ship- owner ; more especially as the whole act of sacrifice is generally directed to, and requisite for, the safety of the ship itself. It is, however, clear that the rule of general average does cover some sacrifices of the shipowner's property. That rule is founded on considerations of justice and of policy. It seems fair in some cases (though it is not always clear in which) that the loss should be borne by all. It is also politic, as has already been remarked, that the master, representing the shipowner, should feel his hands free to make that sacrifice which is most in the interest of all con- cerned. If a sacrifice of the shipowner's property were not con- tributed to, he would be slow to see the necessity for it ; and would perhaps be too ready to forestall the chance of such a necessity, by getting rid of the cargo. The want of some clear principle, however, makes the rules relating to sacrifices by the shipowner somewhat arbitrary, and difficult to lay down with confidence. And the authorities on the subject are not very plentiful. 383. Where, to avert a common danger, portions of the ship's Exposure of tackle or stores are exposed to extraordinary risk, by being put to extraordinaiy some dangerous use for which they were not intended, and thus are "®'^" destroyed or damaged, that is a general average loss. It is not, however, enough that the things have been used on an extraordinary occasion, or one which has exposed them to unusual danger. Thus, where an unusual press of canvas was carried to escape from a privateer, and the ship in consequence was strained and lost the head of her mainmast, it was held that that was not a general average loss {p). (o) See supra, as. 302, 303. B. & P. N. K. 378 ; Power v. WHtmore {p) Covington v. Koberts (1816), 2 (1815), 4 M. & S. 141. EmQrigon re- 430 THE VOYAGE, Sect. 388. So also, where contribution was claimed towards damage done to a ship in a fight with a privateer, and towards the value of the gunpowder and shot she had expended, and the cost of curing the wounds of the crew, Gibbs, 0. J., said : " The measure of resisting the privateer was for the general benefit, but it was part of the adventure ; no particular part of the property was volun- tarily sacrificed for the protection of the rest. The losses fell where the fortune of war cast them, and there, it seems to me, they ought to rest " (y). Abbott cites (r) from Emerigon the following illustration of a sacrifice by the shipowner which would be general average. " The master of a French vessel having been pursued for several hours by two frigates, and having also his flight intercepted by the appearance of two other vessels ahead, hoisted, as soon as it became dark, his boat into the sea, furnished with a mast and sail, and a lanthorn at the masthead, and then changed his course, and sailed during the whole night without any Hght on board his own ship : in the morning no enemy was in sight. The value of the boat thus abandoned was made good by general contribution " (s). In Birkley v. Presgrave {t), the ship Argo when entering Sunderland harbour was prevented, just after passing the North Pier, by a veering of the wind, and a squall ; and her small bower anchor was let go, to bring her up. A warp was run out to the South Pier, but this broke ; and that the anchor might hold more cable was paid out, and the ship was dtawn alongside the North Pier, and made fast there with hawser ends and towing lines, which were such as were, usually used for the purpose. Also the master out the cable of the best bower anchor, then upon the ship's bow, and used that too for mooring the ship to the pier. He did this fearing that another ship would be adrift and come down upon The Argo ; and this in fact happened while the cable was being fastened. The hawser ends and towing lines broke, ports a decision of his own, allowing In The Bona, (1896) P. 125, LordEsher sails which were split in ayoiding a lee (p. 134) said the Court would not be dis- shore as general average ; the sails had posed to extend Covington v. Eoherts. been "forced," and "to force masts or See infra, s. 386. sails is the same thing:" Emerigon, (q) Taylor v. Curtis (1816), 6 Taun. Meredith's translation, 1850, p. 479. 608, at p. 624. So also VaUn, 2 Comment. 166, 107. Cf . (»■) 5th ed. p. 348. the use of an anchor under extraordinary (») Emerigon, torn. 1, p. 622, Mere- circumstances in a dangerous place, dith's ed. p. 480. Phill. Ins. B. 1296 ; Am. Ins. (6th), 867. {t) 1 East, 220 (1806). GENERAL AVERAGE. 431 and but for the cable The Argo would have been lost. In an Sect. 383. action by the shipowner for contribution from the cargo-owner, the question was raised whether any of these were general average The plaintiff's counsel abandoned the claims to contribution towards the hawser ends and towing lines, as they were only applied to the ordinary purposes of such things ; but he pressed for the claim in respect of the cable. And that was allowed. Lord Kenyon, C. J., said : " All ordinary losses and damages sustained by the ship happening immediately from the storm or perils of the sea must be borne by the shipowner. But all those articles which were made use of by the master and crew upon the particular emergency, and out of the usual course for the benefit of the whole concern, and the other expenses incurred, must be paid proportionably by the defendant as general average " (m). In The Bona (»), the question arose whether the act of working WorMng a steamer's engines for the purpose of getting her off a strand, on gtrand.^ °'^ which she was hard and fast, was a general average act. The con- isequent damage to the engines had been allowed in general average, under York- Antwerp rules, which formed part of the contract ; and the actual question in the case was whether the coal consumed in working the engines should also be allowed. This was con- sidered to depend upon whether the use of the engines was, at law, a general average sacrifice. If that was true, the coal formed part of the sacrifice. The Court of Appeal, affirming Jeune, P.," held that it was true. Lord Esher said the question depended on " whether the engines were used not only under unusual circumstances, but in an un- usual manner." ..." The captain of the ship is there to do what he ought to do for the benefit of both shipowner and cargo-owner, and his duty is to do everything that he can do to save both ship and cargo. That is undoubted. The ship was aground, and had been so for several days. She was so far aground that she could not be got off without some extraordinary effort. It is found here that what the captain did he did with the intent to endeavour to save both ship and cargo. It really is not disputed that he was intentionally running a great risk of injury to the machinery. He was attempting intentionally to do what he knew to be a («) 1 East, at p. 227. [x) (1896) P. 125. 432 THE VOYAGE. Sect. 383. dangerous operation. But it is said that he only used the ship and her powers, and that however much he did that, if he only used the ship and her powers in the ordinary way in which a ship and her powers are to be used, then it cannot he brought within the doctrine of general average. I agree to that. That doctrine will solve some of the cases which have been brought before us, and I am not going to overrule any case ; but I am dealing with the case of a ship hard and fast on the ground. That is not the normal condition of the ship. The normal condition of the ship is to be — except in mud harbours — afloat in the water. The manoeuvre which this captain determined to follow, knowing that it was a dangerous manoeuvre to the property of his owners, was to use the engines so as to force the ship off the ground. . . . That is not using the ship and her equipment in the ordinary way. It is putting them to an abnormal use intentionally for the purpose of saving the ship and cargo from the imminent danger in which they were." The use must 384. These cases seem to show that the distinction is to be have heen one not intended, drawn between the use of things for their ordinary purposes, and the use of them in ways for which they were not intended (y) . That view is also confirmed by the following cases. In Wilson v. Bank of Victoria (s) a clipper ship with auxiliary steam-screw had been rendered incapable of sailing by collision with an iceberg. She reached a port of refuge by means of her engines ; and without stopping there to restore her sailing powers, took on board a fresh supply of coal, and steamed all the way home. This involved an expenditure in coal much greater than would generally occur on such a voyage, with such a ship. But it did not entitle the shipowner to claim general average con- tribution. In Harrison v. Bank of Australasia (a) a sailing ship was pro- vided with a donkey engine, which was adapted for pumping the ship and doing other work ; and without the engine ten more hands Burning would have been required to work her. Constant pumping haviner spare spars. i. r o o become necessary, and the supply of coals having been reduced to about IJ tons, the captain prudently directed that some spare spars and wood, which were part of the ship's stores and not intended to be used as fuel, should be cut up to use with the coal. The ship (2^) Am. (3rd), 782 ; Lowndes (4th), (z) L. R., 2 Q. B. 203. pp. 95, 116. (a) L. R., 7 Ex. 32, oite&stipra, a. 368. GENERAL AVERAGE. 433 could not have been kept afloat without working the engine. The Sect. 384. shipowner claimed contribution towards (1) the value of the spars and wood burnt for the donkey engine, (2) the cost of some extra coal afterwards obtained for pumping, and (3) the damage done to the engine. It was held that his claim was just as to (1), but not as to (2) or (3). In an American case contribution was claimed for damage caused by the breakdown of a shaft, which had been repaired temporarily at sea, and had been worked in that state. The claim was dis- allowed; no sacrifice had been intended by the working (J). » 385. The tackle and stores provided for the ship must have been The tackle, reasonably sufficient for the voyage, having regard to what might been reason- be anticipated, or the shipowner wUl not be allowed to treat as a oient.^ general average sacrifice the destruction of other things used in order to supply the want of them. In Robinson v. Price (c) the question again arose as to the effect of using spare spars for fuel. That, also, was the case of a sailing ship furnished with a donkey engine, which could be used for pumping. She sailed from Quebec for London with five tons of coal on board ; encountered bad weather ; sprung a leak ; and in order to pump it became necessary to use her spare spars and part of the cargo as fuel for the engine. It was found by an arbitrator that "the ship was sufficiently equipped and manned for the voyage, according to the ordinary practice in equipping and man- ning such vessels for such a voyage, and but for the leak she would have had sufficient pumping power on board without using the donkey engine." Lush, J., in giving the judgment of the Queen's Bench Division, afterwards affirmed by the Court of Appeal, said : " We think that a shipper of cargo is entitled, in time of peril, to the benefit not only of the best services of the crew in order to save his goods, but of the use of all the appliances for that purpose with which the ship is provided. It follows that where a ship is fitted up with auxiliary steam pumping power, it is the duty of the owner to make some provision for supplying the engine with fuel. Not that he is bound to have on board enough for every possible emergency; but he is bound to have a reasonable supply, having regard to the (i) Van den Toom v. Leeraing, 79 Fed. Rep. 107. (c) 2 Q. B. D. 91, 296. C. C. F F 434 THE VOYAGE. Sect. 385. nature of the voyage, the season of the year, the quality of the cargo, the condition of the ship, and what experience has shown to be prudent to provide against under those conditions. If he fails to do so, he cannot call upon the owners of cargo to contribute towards that reasonable supply. That would be to make them pay for that which he ought to have provided at his own expense. If under such circumstances the opportunity occurs during a time of peril of buying coals from a passing steamer, we think it clear that he could not charge their cost as an extraordinary expenditure entitling him to general average. " That statement of the case not being so explicit as it might have been upon this point, we thought it right to send it back to the learned counsel who settled it between the parties to find from the evidence he had taken one way or the other upon the question. He has returned it to us with a statement as follows : ' I find that The John Baring, when she left Quebec, had on board a reasonable supply of coal for the donkey engine for pumping purposes.' This finding concludes the defendants. The primd, facie claim to general average contribution is not displaced by any default on the part of the owner, and our judgment must be for the plaintiff." Rules ot- 386. In practice, there is considerable difficulty in applying the served in , ^ l l ^ a practice. principles thus laid down ; and some of the practical rules followed by adjusters are perhaps more liberal to shipowners than the test of abnormal use would sanction. Where spare spars and tackle and sails are used to .construct a " jury rig," or temporary means of sailing the vessel, or for other occasional contrivances to avert danger, any damage done to them in consequence is treated as a general average loss. And where a ship is stranded, damage done to her, or to her tackle, in towing her off, or to her sails or pro- peller or machinery in backing her off, is treated as a general average loss {d) ; as also is the coal used in working the engines {d) The Bona, (1895) P. 126; ship, cargo and freight, or any of them, Lo-wndes (4th), pp. 95, 117, 1 19. The by carrying a press of sail, shall be made York- Antwerp Rules on this subject good as general average, are as follows :— VII. Damage caused to machinery VI. Damage to or loss of sails and and boilers of a ship, which is ashore spars, or either of them, caused by and in a position of peril, in endeavour- forcing a ship off the ground, or by ing to refloat, shaU be alio wed in general driving her higher up the ground, for average, when shown to have arisen the common safety, shall be made good from an actual intention to float the as general average ; but where a ship is ship for the common safety at the risk afloat, no loss or damage caused to the of such damage. GENERAL AVERAGE. 435 for that purpose (e). So, where sails or hawsers are used so as to Sect. 386. expose them to greater risks than was intended ; as where a top- gallant sail is used as a topsail, or a hawser in place of a chain, for anchoring in a tide- way (/). It is difficult to regard the test of intended use as in all cases Is the test of satisfactory. The use of a hawser, sail, or other appliance in a satisfaotoryl' manner not originally intended is no doubt generally evidence of an intentional sacrifice ; whereas damage sustained while the thing is being used for the purpose for which it was intended will generally be an ordinary incident of the voyage, an instance of tools broken or spoilt in working. But there may well be a sacrifice, an intentional giving away of a thing for the common safety, under circumstances of extraordinary emergency, and yet that thing may have been used in the very place and manner for which it was designed. And, on the other hand, things may be used in an unusual way without any intention of sacrificing them. The test of use, or abuse, has been justified on the ground that the shipowner is not, by his contract, under any obligation to destroy or injure his ship or her appliances {g). But that seems to be a mistaken view. It cannot be said that performance of the contract has been prevented by an excepted peril when the danger could be averted by burning spare spars, or by using sails or hawsers, which were available, though they were not meant for the particular work. It is not true, as already pointed out (Ji), that the rule of contribution does not apply until the obligations of the contract have been exhausted. Such a view would shut out numerous cases in which the right to contribution is thoroughly established. The rule of contribution is a provision of the law which applies under special circumstances, independently of the contract ; and the liniitations of it must be sought in the principles of that law («'). Where a common danger to the whole adventure has arisen, not from ordinary incidents of the voyage but accidentally, and the IX. Cargo, ship's materials, and leaTing, shall be charged to the ship- stores, or any of them, necessarily humt owner, and credited to the general for fuel for the common safety at a time average, of peril, shall be admitted as general (e) The Bona, (1895) P. 195. average when and only when, an ample ^^^ g^^ Lowndes (4th), H2-1W. supply of fuel had been provided ; but the estimated quantity of coals that ^) See Lowndes (4th), pp. 115, 116 ; would have been consumed, calculated McArthur, Insurance (2nd), p. 181. at the price current at the ship's last W *«""«, s. 382. port of departure at the date of her (j) See sv^a, s. 373 b. F F 2 436 THE VOYAGE. Sect. 386. master has intentionally sacrificed something to avoid that danger, we have the ingredients of a general average act. There must be an extraordinary common danger, and a conscious giving away of something to meet it. If the condition, stated by Lord Kenyon (k) , that the thing given must have been used "out of the usual course " means, in addition to this, that the use must have been in an extraordinary manner, it is difficult to see on what principle it rests {I). Is voluntary stranding a general average act ? 387. Another form of sacrifice of the ship, which has given rise to much difference of opinion, occurs where she is intentionally run ashore. This may be done in order to avoid a capture ; or foundering in deep water; or,^ where it is practically inevitable that she wiR go ashore somewhere, the master, rather than wait and run the risk of doing so at a place where everything wiU be lost, may select a favourable spot and drive her ashore at once, in the hope of saving the cargo, and perhaps ultimately the ship also. Is the resulting damage or loss of the ship to be treated, in such cases, as a general average loss ? In Abbott on Shipping {m), it was laid down that " damage voluntarily done to a ship by cutting its decks or sides in order to facilitate a necessary jettison, or by running it on a rock, shallow or strand, to avoid the danger of a storm, or of an enemy, and the expense of recovering the ship from this latter situation .... are to be sustained by a general contribution." And Arnould, taking the same view (n), said that where the ship is recovered after such a voluntary stranding, " there is no rule more clearly established than this by the uniform course of maritime law and usage." Where the ship is ultimately lost, but the cargo saved, there has been more diversity of opinion ; but Arnould appears to have held to the view that the loss would stiU be a general average loss. And on principle there seems to be no distinction (o). Lowndes, in a careful discussion of this question, in the third {k) Birkley v. Presgrave, 1 East, 220. {1} Covington v. Roberts, and some of the other cases cited above in o. 383, seem, however, to require a limitation of the kind. (m) 5th ed. p. 349. This edition was published in 1827, during Lord Tenter- den's life, by his son, John Henry Abbott. {«) Am. Ins. (3rd), p. 784. But of. Maol. 675 ; Arn. (5th), p. 837. (o) Per Story, J., Columbian Ins. Co. V. Ashby, 13 Pet. S. C. B,. 331. See Lowndes' note on the history of the distinction which has been drawn : Gen. Av. (4th), p. 146. GENERAL AVERAGE. 437 edition of Ijis work on General Average, agreed with the view that Sect. 387. a voluntary stranding is a general average act where the master has thrown away a suhstantial chance of saving the ship; hut considered it to be not so if she must inevitably have been lost, irrespective of the stranding. And he gave two illustrations ; one in which the master, seeing that the vessel is helpless, and if left alone must inevitably go aground, voluntarily puts her upon sand ; and another in which a ship is leaking at a rate which cannot be kept under by the pumps, and is so distant from a port that she must necessarily sink unless run ashore. His view was that in such eases there is no sacrifice by the stranding (j?) ; agreeing in this with Benecke (g), though he denied the correctness of Benecke's doctrine, that there is no real sacrifice where there is no alternative to a loss of the thing sacrificed. But in his last (4th) edition, Lowndes seems to have partly altered his view, coming to the conclusion that a voluntary stranding to avoid an inevitable loss of some other kind — e.g., by siaking in deep water, burning or capture, would be a general average sacrifice ; but not so a stranding which only anticipated an inevitable grounding ia some place (r). If, indeed, the condition of the ship were desperate, from a danger which affected her only, and not both her and the cargo, the case would be similar to that of the wrecked mast in Shepherd V. Kottgen (s). But that is not the position. The danger is a common one, and though it may be reaUy impossible to save the ship, and yet possible to partly save the cargo, this last depends upon a voluntary giving up of any seeming chance there may be for the ship. The grounds of policy which have been above referred to as an answer to Benecke's doctrine, therefore apply to this case also. If that doctrine is applicable to cases of voluntary stranding, it should also apply to other cases, such as that put by Benecke of a mast which, though at present safe, must go if anything is to be saved {t). 388. But to be a general average act the stranding must reaUy it must te be voluntary, and it does not seem reasonable to call that voluntary t^rj.^ ^° ^^' which merely anticipates a clear necessity. If the ship is on the point of going on to the rocks, the stranding does not become {p) Lowndes (3rd), p. 64 ; and see (»•) See Lowndes (4th), pp. 138 — 141. York- Antwerp Eides, 1890, V., App. C. (s) 2 C. P. D. 583. (?) Benecke, p. 219. (<) Benecke, p. 170. S«pra, s. 371. ^^^ THE VOYAGE. Sect. 388. voluntary because the master oliooses to go stem on to them instead of broadside, or at one spot rather than at another. Where the cable of a ship, drifting with anchor down, was slipped when she was about to go ashore, it was held that there was not a voluntary stranding, though the' slipping hastened it, and gave a better chance of saving the lives on board (u). It was, however, found that the vessel substantially stranded "in the same place, under the same conditions, and with the same results to cargo" as would have happened if there had been no slipping. The subject has not apparently been before our Courts. But it seems probable that losses by a stranding would be held to be general average losses where that has been really a voluntary act, although done in a hopeless extremity ; and that the rule would be the same whether the ship were saved or not (x). uSted'*''^ 389. In the United States the question has been repeatedly States. before the Courts, and the rule that a voluntary stranding may be a general average act, whether the ship be saved or lost, is well established. The principal cases appear to be Sims v. Gurney (y), decided in 1812 in the Supreme Court of Pennsylvania ; Columbian Insurance Co. v. Ashby (z), 1839, in the Supreme Court of the United States; and Barnard v. Adams (a), 1850, in the same Court. In Sims v. Gurney the vessel had been at anchor in a bay, her cables had parted, and an attempt had been made without success to get out to sea. This proving impracticable, she was run up the bay again, and was put on to the shore at the place which seemed most favourable, those on board being of opinion at the time that she must go ashore somewhere. Tilghman, C. J., said, " It is said for the defendants that the ship must have gone ashore somewhere, and it made no diflerencB where that shore was ; that there was no advantage in taking the course that was taken, and that the ship was exposed to no greater (m) Shoe V. Low Moor Iron Co., 49 &o. Co., (1899) 2 Q. B. 356, Bigham, J., EecT. Eep. 252 ; 46 Eed. Kep. 125, said that he believed the English law to (1891). he the same as that laid down by Story, (x) In Whiteoross Wire Co. ■!». SaviU, . J., in Columbian Ins. Co. v. Ashby 8 Q. B. D. 653, at p. 663, Brett, L. J., infra. said, that if the vessel had been scuttled UA 4 Biun 513 (to extinguish a fire), the owners would have been entitled to general average (^) ^^ ■^^*- ^- 0- K- 331, cited Aru. contributions to the expenses of raising (2nd) 918, (3rd) 787. and repairing her. In Iredale v. China, (a) 10 How. 270. GENERAL AVERAGE. 439 danger than she would have been if the course had not been Sect. 389. altered. It is not necessary that the ship should be exposed to greater danger than she otherwise would have been to make a case of general average. It is sufficient if a certain loss is incurred for the common benefit." In Columbian Insurance Co. v. Ashby (b), the vessel had dragged her anchors until she struck on the shoals, and the master had then slipped "his cables and run her ashore. Storey, J., said, "The intention is not to destroy the ship, but to place her in less peril, if possible, as weL. as the cargo. The act is hazardous to the ship and cargo, but it is done to escape from a more pressing danger : such as a storm or the pursuit of an enemy or pirate." In Barnard v. Adams (c), the instruction to the jury had been as follows: — The evidence was "that when the vessel was without any means of resisting the storm, and her going ashore upon a rocky and more dangerous part of the shore was in his opinion inevitable, he did intentionally, and for the better security of the property and persons engaged in the adventure, give her a direction to what he supposed to be, and what proved to be, a part of the shore where she could Ke more safely. These facts if credited by you constitute in judgment of law a voluntary sacrifice of the vessel, and for such sacrifice the plaintiffs are entitled to recover as general average." This direction was approved by the majority of the Supreme Court. It was, however, interpreted to mean, that " if they believed there was an imminent peril of being driven ' on a rocky and dangerous part of the coast ' where the vessel would have been inevitably wrecked, with loss of ship, cargo and crew, and that this immediate peril was avoided by voluntarily stranding the vessel on a less rocky and dangerous part of the coast, whereby the cargo and crew were saved uninjured, then they should find for the plaintiffs." Daniel, J., however, delivered a dissenting judgment. He relied on the fact that the condition of the vessel had been hope- less : " She had lost all her anchors, was in the midst of a hurricane, and drifting to the shore under a force which the witness explicitly says nothing could resist. He therefore did not elect to run her (J) Supra. Thepoint chiefly disouesed .^ras lost: overruling Broadhurst v. in and decided by thia case was, that Columbian Ins. Co. , 9 Johns. N. T. E. 9. the loss by stranding -was not the less a general average loss because the ship (") 1" How. 270. 440 Sect. 389 THE VOYAGE. ashore, or to make a sacrifice for the general good ; he only sought to save her as far as possible from danger or injury. It appears to me to be no slight paradox to assert that a man is the positive and controlling agent in the accomplishment of an effect which he merely sufiers, and which is forced upon him by a power that he is wholly unable to resist or influence ; and that it is equally para- doxical to declare that we elect and seek a sacrifice or a peril from which we are most anxiously fleeing." The law on the point in the United States is stated in Phillips on Insurance as follows : — " On the whole, then, if the intentional stranding is, under the particular circumstances, the direct result of voluntary agency, rather than of the action of the elements, and the actual stranding is another than the one impending, and not merely an incidental and inconsiderable modification of it, the case is one for general average" (d). Damage in, 390. Another case of sacrifice for the general safety is where extmguisli- . . . . ittg fire. damage is done to the ship or to the cargo in putting out a fire on board. If water be poured into the ship's hold, or if the ship be scuttled, in order to put out a fire, and cargo be thereby damaged, that is general average damage (e) . In Whitecross Wire Co. v. Savill (/), the ship had arrived at her destination and had partly discharged her cargo. She lay alongside a wharf where the depth at high water was 22 feet, and she drew 11 feet. A fire broke out in her hold, which was extinguished by pouring water down, and the plaintiff's goods were thus damaged. It was held by the Court of Appeal, affirming Pollock, B., that this was a general average sacrifice of the goods. Brett, L. J., said : " In this ease there was imminent peril to the whole adventure ; and if a danger did exist such as to make the sacrifice reasonable, and if a part of the adventure was sacri- ficed for the benefit of the whole, then a claim for general average arises, and it is insufficient to show that complete destruction was (d) Phillips, Ins. 1313. Cf. Parsons, York-Antwerp Rules III., App. C. ; M. Ins. II. p. 243. under that rule no compensation is (e) Whitecross Wire Co. v. Savill, 8 made for ' ' damage to such portions of ft. B. D. 653; Piriej). Middle Dock Co., the ship and bulk cargo, or to such 44 L. T. 426; Stewart r. West India separate packages of cargo, as have been and Pacific S.S. Co., L. E., 8 Q. B. 88 ; on fire." Achard v. Ring, 31 L. T. 647. See (/) 8 Q. B. D. 653. GENERAL AVERAGE. 441 not imminent. It has been argued tliat no total loss of the ship Sect. 390. would have ooourred in the present case, because she was built of iron and could not be destroyed by fire ; but it was proved that the fire had got a strong hold upon her, and it would have burnt her woodwork, such as her deck and masts, and also her sails ; if the fire had not been extinguished, she would have been brought almost to the state of a wreck. It has been said that the defen- dant's vessel might have been scuttled ; but the expense of raising and repairing her would have entitled her owners to a general average contribution ; and because an apparently alternative mode of proceeding existed, the captain cannot be said to have acted unreasonably" {g). And where a cargo of coals was on fire, and water was poured upon it to avert a general loss, with the result that the coal which was wetted had to be discharged and sold at a port of refuge, it was held that there must be contribution to the freight thereby lost {h). It has been held, in the United States, that where the damage to the cargo partly arises from an act of sacrifice, and partly from the accidental peril apart from sacrifice, and the two are not susceptible of separation, so that the amount of the damage due to the sacrifice cannot be distinguished, no part of it should be made good in general average («'). General Average Expenditure. 391. Next as to expenditure incurred to avert a peril which is General imminent to ship and cargo. " In order to give rise to a charge expenditure, as general average it is essential that there should be a voluntary sacrifice to preserve more subjects than one exposed to a common jeopardy ; but an extraordinary expenditure incurred for that purpose is as much a sacrifice as if, instead of money being ex- pended for the purpose, money's worth were thrown away. It is immaterial whether the shipovmer sacrifices a cable or an anchor to get the ship off a shoal, or pays the worth of it to pay those extra services which get her off " (k). "Wherever, under extraordinary circumstances of danger to both ship and cargo, a voluntary sacrifice of money is made in (y) WMteoross Wire Oo. v. Savill, 8 (i) Reliance M. I. Co. v. New York, Q. B. D. at p. 662. &o. S.S. Co., 77 Ped. Rep. 317. (Jt) Pirie v. Middle Dock Co., 44 L. T. {k) Per Blackburn, J., Kemp v. HaUi, 426. day, 34 L. J., Q. B. 233, at p. 242. 442 THE VOYAGE, The circum- stances must iavolTe peril to ship and cargo. Sect. 391. order to save toth ship and cargo, by the expenditiire of which both ship and cargo are saved, the person who has made the volun- tary sacrifice is entitled to call upon the others whose property has been saved, by the voluntary sacrifice made on their behalf as well as on his own, for general average contribution" (I). A difficulty arises respecting this rule similar to that we have noticed already in regard to sacrifices of ship's material (m). The shipowner, in the performance of his contract, is bound to iacur those expenses which become necessary to enable him to complete the voyage ; yet we have to distinguish expenses which ought not wholly to fall upon him, though they may be incidents of the voyage he has contracted to make. 392. It is clear that the occurrence of unexpected circumstances, which give rise to an unusually large expenditure, is not enough. For example, extra expenses of the voyage through meeting bad weather, or at the loading port to avoid bad weather, or owing to quarantine or embargo, are not treated as general average ex- penditures (n). But if tlie ship and cargo are in peril, and the master can avoid the danger by incurring extraordinary expense, as by putting into a port of refuge, or by employing men or other vessels to render assistance (o), the money which he properly pays or becomes liable to pay in these ways are general average expenses (p). We win discuss, first, expenditures incurred in rescuing the ship and cargo when they are at sea, or after the ship has stranded or sunk ; and, secondly, expenses incurred in putting into a port of refuge for the general safety. 393, Where effectual assistance is given to the ship and cargo in time of danger by strangers to the ship, they become entitled, as we have seen, to salvage, and can enforce that right against the property which is saved. The salvage thus payable is distributed rateably over the whole Salvage. (t) Per Brett, M. E., Ocean S.S. Co. V. Anderson, 13 Q. B. D. 651, p. 662, (m) Supra, ss. 382, 386. («) Wilson V. Bank of Victoria, L. E., 2 Q. B. 203 ; per BuUer, J., in Da Costa V. Newnham, 2 T. E. 407. (o) As to the difference between ordi- nary and extraordinary pilotage, see Akerblom v. Price, 7 Q. B. D. 129. {p) Eansom paid to pirates, or to captors, is said to be a subject for con- tributions : see Abbott (5th), 346 ; Mao- lachlan (2ud), p. 620 ; Emerigon (Mere- dith's ed.), p. 485 ; Hicks v. Palingtou Moore, 297. The legality of paying ransom to an enemy is subject to orders of Her Majesty in Council under 27 & 28 Vict. c. 25, s. 45. GENERAL AVERAGE. 443 property saved in proportion to values, similarly to general average, Sect. 393. though, as we shall see later, there may be a difference as to when the liahility is to he ascertained. Owners who have heoome liable to pay salvage at a port of refuge may become exempted from it, by a subsequent loss, if it be treated as general average expendi- ture {q). In practice, however, it seems that salvage is treated as a general average loss or expenditure (r). Also, as in general average, if the whole liability to salvage be discharged by the shipowner, he is entitled to a lien upon the cargo for its proportion (s). 394. But in the strict sense, that is, as a reward allowed by Not generally law to persons who spontaneously render services in saving property ayerage^ from loss or damage at sea, not under contract but depending upon expenditure, the rights given by the law (i), salvage is not an expenditure which falls within the principle of general average. Where a vessel has been abandoned, and is taken charge of by salvors as a derelict, and brought into safety, the case seems very clear. It is impossible there to say that there has been any inten- tional sacrifice of any part of the property, or by any one of the CO- adventurers, for the benefit of the rest. Where the services have been rendered to a vessel which is under the control of her master, with his assent, it may at first seem that there is an intentional sacrifice made by him. But putting aside eases in which the master employs the salvors, in the sense of making the shipowner personally liable to remunerate them for the whole of their services to ship and cargo, there is here also no sacrifice by one for the rest. The shipowner does not become in any way liable for more than his share of the salvage. The salvor's remedy is against the property saved, or against the owner of that property, for its share of the salvage payable. His lien attaches to each part of the property, and each part has its own separate Kability, which is not shared by the rest (««). It is (?) Infra, ss. 418, 428. been recovered from underwriters aa a (r) Lowndes (4th), pp. 150, 260. Also loss by the peril insured against. I understand that underwriters pay con- (s) Briggs v. Merchant Traders, &c. tributions for salvage, although the Association, 18 L. J., Q. B. 178 ; supra, policy may be "free of particular aver- s. 353. age " and notwithstanding that salvage {t) See per Brett, L. J., in Cargo ex does not come within the sue»and labour SohUler, 2 P. D. 146, at p. 149. clause (Aitchjson v. Lohre, 4 A. C. 755). (w) The Pyrennee, Br. & L. 189 ; The In that case (4 A. 0. p. 766), Lord Eaisby, 10 P. D. 114; supra, s. 362. Blackburn said that salvage had always The Admiralty Court does not exercise 444 THE VOYAGE. Sect. 894. Payment by shipowner does not make it so. as though the salvors were entitled to retain a portion of each part of the property saved by them. . The liability for salvage falls immediately upon the different adventurers without any need of the doctrine of general average. And thus neither the conditions nor the grounds for an application of that doctrine are satisfied. It will be found that where discus- sion has taken place as to the manner in which salvage should be distributed over ship and cargo, it has been held that all must contribute in proportion to their values on the ground of the incon- venience and impolicy of any other course («). Were the expendi- ture general average, there could be no room for hesitation on the point («/). 395. Nor does payment by the shipowner of the salvage on the whole ship and cargo, in order to liberate them from custody, and so enable the voyage to proceed, make the payment a general average disbursement (s). a jurisdiction to enforce general average contributions : The Constanoia, 2 "W. B. 487 ; The North Star, 29 L. J., Ad. 73 ; Cargo ex Q-alam, 33 L. J., Ad. 97. {x) The Longford, 6 P. D. 60 ; The Emma, 2 W. Rob. 315. [y) Lord Blackburn in Aitohison v. Lohre (4 A. 0. 755, at p. 760), said: "It may be as well here to point out that the liability of the articles saved to contribute proportionally with the rest to general average and salvage, in noways depends on the policy of insur- ance. It is a consequence of the perils of the sea, first imposed, as regards general average, by the Khodian law many centuries before insurance "was known at all, and, as regards salvage, by the maritime law, not so early, but at least long before any policies of in- surance in the present form were thought of." And of. per Lord EUenborough in Cox v. May, 4 M. & S. 152, p. 159. In the American case of Peters v. Warren Ins. Co. (1 Story, 463, at p. 468 ; quoted Pars. M. Ins. II. 231), Mr. Justice Story said: "General average is commonly understood to arise from some voluntary act done, or sacrifice, or expense in- curred, for the benefit of all concerned in the voyage or adventure ; and then it is apportioned upon all the interests which partake of the benefit. But the mere fact that an apportionment is made of a loss between the different parties in interest, if the loss itself does not arise from some act done, or sacrifice or expense voluntarily incurred, for the common benefit, does not make it neces- sarily a case of general average by our law. Salvage is properly a charge ap- portionable upon all the interests and property at risk in the voyage which derive any benefit therefrom. But although it is often in the nature of a general average, it is far from being universally true that, in the sense of our law, all salvage charges are to be deemed a general average. On the con- trary, these charges are sometimes a simple average, or partial loss. We must, therefore, look to the particular circumstances of the case to ascertain whether it be the one or the other." (a) Svendsen v. Wallace, 13 Q. B. D. 69 . " The proposition, that general aver- age includes all extraordinary expenses incurred for the purpose of continuing the voyage, is not warranted by the principle which governs contribution to general average: " per Hannen, J., in Walthew v. Marrojani, L.R., 5 Ex. 116, at p. 126. And see Dobson v. Wilson, 3 Camp. 480. GENERAL, AVERAGE. 445 The payment may be beneficial to the whole adventure ; but it Sect. 395. is not made to avert a danger then threatening its destruction, and therefore it is not within the principle. " A general average sacrifice is an extraordinary sacrifice voluntarily made in the hour of peril for the common preservation of ship and cargo " («). The cargo's portion is repayable to the shipowner, not because he has made a sacrifice, but because the money was due in respect of the cargo, and has been paid on its account. A payment of ransom to captors, to induce them to give up the ship and cargo, is of a different kind, and maybe a general average loss (5). In such a case there is a danger threatening destruction or loss to the whole adventure, and p^rt is given to save the rest. 396. With regard to employed salvage services the ease is different. Employed The remuneration which a shipowner undertakes to pay for services to be rendered by the salvors, may be an extraordinary liability prudently incurred by him for the safety of the ship and cargo ; and thus his disbursement may be a general average expenditure, to which contribution must be made as such (c). Payments so made are only binding upon the owners of cargo so far as they were reasonably necessary for the safety of the whole adventure. If, for example, a ship is sunk with her cargo, and the whole is raised together, at an expense which, if made good by general average contributions, would throw a burden on the cargo greater than the cost of saving it separately, the whole expense ought not to be so treated [d). In Anderson v. Ocean SS. Co. (e), the claim was by shipowners against cargo owners for contribution to a payment made for tow- age of the ship out of a position of danger. The amount which the captain had agreed to pay for the service was very large, but the jury found that it was not unreasonable. In the House of Lords, however, a new trial was considered necessary, that it might be left to the jury to say how much of the agreed sum was properly chargeable as a general average expenditure. Lord Blackburn said : " I think, therefore, that it was quite clear that there was [a) Per Bowen, L. J., in Svendsen v. L. E., 1 Q. B. 520. Wallace, 13 Q. B. D. at p. 84. () it was held that the wages and provisions of cattlemen on board, while at a port of refuge, did not fall within this rule. The men were paid by the charterers, owners of the cattle. Nor were these wages and provisions, or the fodder for the cattle while in port, subjects for contribution at common law. , (ot) 4M:. &S. Ul. So, also, in Plum- tu^e from English law in the direction mer v. Wildman, 3 M. & S. 482. of the principles maintained abroad. In) See the Comparative Table in ^hey were passed at the Conference Lowndes (4th), p. XXX. ^^^^ "^ ^®^" ^'*^°"* ^^''^' ^* ^ meeting which well represented the [o) See Rules X. and XI., App. 0. views of English practical men. These rules mark a considerable depar- [p) (1899) 2 Q. B. 403, 456 THE VOYAGE. Where ship puts in to repair. Sect. 406. 406. Where the ship has entered the port of refuge in order to repair, the cost of wages and maintenance of the .crew during the time occupied in repairing is a loss involved in the act of repairing the ship at that place, unless the crew ought to have been discharged {q). If, then, the shipowner is entitled to con- tributions to the cost of the repairs, he ought, it seems, to receive contributions to the wages and cost of maintenance of the crew. In other words, the latter expenses, should be subjects of general average contribution, or not, according to whether the repairs are so, or not. They are not the natural consequences of the act of deviating, but of the act of repairing. The deviation has merely given the opportunity. In Abbott on Shipping, after laying down the rule estab- lished by Power v. Whitmore, the author continued: "But if a ship should necessarily go into an intermediate port for the purpose only of repairing such a damage as is in itself a proper object of general contribution, possibly the wages, &c. during a period of such a detention may also be held to be general average, on the ground that the accessory should follow the nature of its principal" (r). And Thesiger, L. J., delivering the judgment in Atwood V. Sellar (s) said: " As a matter of- fact it is extremely doubtful whether the expenses for wages of crew or provisions in a port of refuge have ever been disallowed by our Courts, as constituting a claim for general average, in a case where the ship has put into the port to repair damage itself belonging to general average." The practice of average adjusters in England, however, is to make the shipowner bear these expenses in aU. eases, unless the York- Antwerp Bules are to be applied {t). Cost of repairs 407. The cost of repairs to the ship which have become necessary accidental. by accident is, as we have seen (m), to be borne by the shipowner ; no general average contributions to it are payable by the owners of the cargo. And that is the case even where the expenditure {q) It is not, however, allowed as part of the loss as against underwriters on ship : De Vanx v, Salvador, 4 A. & E. 420. (r) (5th), 350 ; (l-3th), 645. See the note of Shee, J., to this passage (Uth), p. 533, itt which the passage as con- tained in the earlier editions prior to Power V. Whitmore is set out. («) 5 Q. B. D. at p. 291. [t] On the other hand, the whole of the port dues are in practice allowed as general average expen'ss, although partly paid for the period of repairing. («) 8'^ra, ss. 302, 320. GENERAL AVERAGE. 457^ upon the repairs, or some of it, appears to have been solely in the Sect. 407. interest of the cargo ; as where the amount has exceeded the value of the repaired ship, together with the freight which could be earned by completing the voyage (x). In Hallett i>. Wigram {y), an action was brought by shippers against the shipowners for the value of part of the cargo, sold at a port of refuge. The defendants pleaded that the goods were sold to defray the expenses of unloading and repairing the ship for the common benefit ; that these expenses were requisite for the completion of the voyage ; that they exceeded the value of the ship when repaired ; that the repairs ought not to have been done except for the purpose of conveying the cargo to the port of delivery, and would not have been done if that could have been accomplished otherwise ; and that no more than a general average contribution was payable by the defendants. On demurrer it was held that this was not a good defence. Wild, C. J., said : " It might in one sense of the term be for the common benefit and advantage of all that the ship should return to Port Adelaide, that the cargo should be unloaded, and that the requisite repairs should be effected ; but, inasmuch as the cargo belonging to the plaintiffs might have been conveyed in any other ship, it is difficult to see how it was for the benefit and advantage of the plaintiffs that the repairs, when completed, would exceed the value of the ship. This olaim is made without any allegation that the cargo of the plaintiffs could not have been conveyed in some other ship. . . . The effect of holding these pleas good would be to throw on the merchant the burden which ought to be borne by the shipowner." Exceptional eases may perhaps occur in which the repair of the ship at a sacrifice is necessary for the salvation of the cargo, as where it is perishable and there is no other means of carrying it to a market (s). "But (exceptional cases apart) it is not sufficient, according to English law, that an expenditure should have been made to benefit both cargo owner and shipowner. The idea of a common commercial adventure, as distinguished from the criterion of common safety from the sea, would lead to the inclusion in general average of, at all events, temporary repairs of the ship (x) Benson v. Duncan, 17 JJ. J., Ex. , > q j.t, ■ j x • ttt t., 238 ; 18 L. J., Ex. 169. ^'^ ^'' *^' judgments m Walthew .. W 19 L. J., C. P. 281. Mavrojani, L. R., 7 Ex. 50. 458 THE VOYAGE. Sect. 407. caused hj particular average loss, and would enatle the shipowner to complete his part of the contract of affreightment by means of a money contribution levied perforce upon the cargo owner " (a). Expenses of 408. Next as to the expenses of discharging the cargo, -where cargo. that is necessary, at the port of refuge. How are these to be borne ? This must be answered by reference to the circumstances which have rendered the discharge necessary. If the common safety of ship and cargo required that it should take place, the expense is a general average expenditure. That would be the case, for example, where the ship was leaking badly, and the leak could not be got at and stopped without first taking the cargo out (6) ; or where, if the cargo had been left in, the ship would have grounded as the tide fell, and perhaps broken up and the cargo been lost ; there, also, the discharge would be for the common safety, and the expense should be contributed to (c). On the other hand, the discharge may be solely for the benefit of the cargo, as where a cargo of grain has been wetted, and must be dried in order to save it from rotting. Here the expenses of landing and of loading again, being incidental to the process of drying, must be borne by the owners of the cargo (d) ; unless, indeed, the damage to the cargo, thus prevented from extendiug, itself arose from a general average act, in which case these expenses properly form part of the general average loss. But perhaps the most common case is that iii which the discharge of the cargo or part of it is necessary, not for the immediate safety of ship or cargo, but because the repairs to the ship which are required cannot be done unless the cargo is first landed. In such a case the discharge is an incident of doing the repairs; and it would seem to follow that the expense should be regarded as part of the cost of repairing, and should be borne by those who are to bear that cost. As we have seen, the mere fact that the discharge will be a benefit to the cargo owner, by enabling the repairs to be done and the voyage to be accomplished, is not a sufficient reason for making him share the cost. " I am unable to adopt the theoretical view («) Per Bowen, L. J., Svendsen «'. (c) But see per Brett, M. E., in Wallace, 13 Q. B. D. 69, p. 86 ; and Svendsen v. Wallace, 13 Q. B. D. at see per Brett, M. R., at p. 76. p. 76. (4) As in Svendsen v. Wallace, 10 {d) See Notara v. Henderson, L. E., A. 0. 40i. 5 Q. B. 346 ; 7 Q. B. 225. GENERAL AVERAGE. 459 that unloading becomes an act of sacrifice, simply because it releases Sect. 408. cargo and ship from the dead-lock that would otherwise ensue. Physical safety has been attained ; and it appears to me to be the duty of the shipowner, under his contract of affreightment, either to proceed with his voyage or else to land his cargo, unless it is to be transhipped direct "(e). 409. The matter becomes more difficult where more than one Mixed motive has operated in determining the discharge. discharging. If that has been done for the common safety of ship and cargo, it is, as we have seen, a general average act ; and this will not be altered by the fact that the shipowner or cargo-owner has inci- dentally been benefited in other ways. But if the discharge was not requisite for the immediate safety of the ship and cargo, but was necessary in order to dry the cargo, and also in order to repair the ship, it seems most consistent with principle that the expense of discharging should be borne by the cargo. Not being necessary for the common safety, it was not a general average act, unless the view is to be adopted that the act of deviation includes the getting ready to repair. And as the ship could have waited, and the cargo could not, it ought, perhaps, to be presumed that the immediate motive of the discharge was the preservation of the cargo (/). But in practice, it appears, the cost of the discharge to enable Practice. repairs to be done is in all cases treated as a general average expense. And this was regarded by Brett, M. R., in Svendsen v. Wallace {g), as a " not unreasonable way of treating the case as a matter of business," the discharge being jpart of the general average act of " going in to repair " {h). 410. Next as to the cost of reloading. It is now decided, by Expenses of the judgment of the House of Lords in Svendsen r. Wallace (i), chM^abie~to that this is not a general average expenditure, where the damage, !^^P f ^ *° to repair which the ship put in, was accidental ; notwithstanding («) Per Bowen, L. J., Svendsen v. from a ship, whether at a port or place Wallace, 13 Q. B. D. at p. 88. Cf. of loading, call, or refuge, shall be ad- McCalli). Houlder, 76 L. T. 469. mitted as general average when the (/) See The Brig Mary, 1 Sprague ^^^^^^S^ ^^^ necessary for the common 17 ^TT SI safety or to enable damage to the ship, caused hy sacrifice or accident during the iff) 13 Q. B. D. at p. 77. voyage, to be repaired, if the repairs were Lowndes (4th), pp. 217, 218. necessary for the safe prosecution of the (A) Under York -Antwerp Rules voyage." X. (b), "The cost of discharging cargo («) 10 A, C. 404. 460 THE VOYAGE. Sect. 410, that the landing of the cargo had there been done for the common safety of ship and cargo, and was treated as a suhject for con- tribution. The ship had put in with a bad leak, and was not safe until she had got into dry dock, for which purpose it was necessary, to discharge the cargo. From this it seems to follow, a fortiori, that the cost of reloading is not a general average expenditure where the original discharge has been merely to enable accidental repairs to be done, the ship and cargo being safe at the time. But Lord Blackburn regarded that as a distinct question, which it was not necessary to inquire into {k). In Svendsen v. Wallace the reloading expenses were held to be chargeable to the shipowner, but whether as shipowner or as owner of the freight was not actually decided. Lord Blackburn appears to have considered that they were chargeable to freight. And Bowen, L. J., said : " The charges of reloading in such a case " {i.e., where the cargo is unloaded and reloaded in order to repair an accidental loss) " ought in principle to fall upon the freight, or else upon the freight and the ship together if the two interests are severed" {I). Advanced j^ that case part of the freight had been paid in advance, but freight does '- _ ° '■ not contri- Lord Blackburn discussed the matter on the assumption that it was not affected by that fact. The question as propounded by him was whether the whole of the re-shipping expenses were to be charged to the shipowner, or to be treated as subjects for general average contribution. He appears to have decided that no portion of them could be charged to the freighter in respect of the advanced freight {m) . And it seems clear that the prepayment of freight ought not to msike the freighter liable for any such expenses, unless they are general average expenses ; in which case he contributes in respect of the goods themselves, enhanced in value by the freight pre- {k) Under York - Antwerp Rules incurred after the date of the ship's X. (c), " Whenever the cost of disoharg- condemnation or of the abandonment of ing cargo from a, ship is admissible as the voyage shall be admitted as general general average, the cost of re-loading average." and storing such cargo on board the said ship, together with all storage charges ^ 13 Q. B. B. p. 89. And see the on such cargo, shall likewise be so ad- '"''•"arks at p. 86 on HaU ,;. Janson, 24 mitted. But when the ship is con- ^- '^■' ^- ^- ^^- *^*- ^°^® ^- ^^nk of demned, or does not proceed on her Australasia, (1894) A. C. 687. original voyage, no storage expenses .(m) 10 A. 0. 404, see p. 416. GENERAL AVEEAGE. 461 paid («). Apart from general average, tlie cost of completing the Sect. 410. voyage ought to be home hy the shipowner ; and though part of that cost may be properly chargeable to the owner of the freight still at risk, if that has been assigned, or to the insurers of the freight as against the owner of the ship, the' freighter should not be affected by considerations of that kind. The subject of port expenses outwards has already been dis- cussed above (o). 411. Turning now to the case of a vessel which bears up for a Putting in port of refuge owing to a necessity which has been caused by a general aver- general average act, such as the cutting away a mast, it appears ^s^ damage, from what has been said above that somewhat different rules must be followed. Here, as before, the deviation is itself a general average act, and the consequent expenses are therefore general average expenditure. But they may also be regarded as necessary items in the cost of replacing the mast cut away, and in that way a general average loss. For the cost of the repairs is here the actual loss by the act of cutting away the mast, and must therefore be contributed to as a general average loss ; and the extra expense involved in being compelled to repair at a port of refuge comes under the same category. Thus it seems clear that in this case the cost of discharging the Expenses of cargo, in order to repair the general average damage, should be contributed to. 412. Whether the subsequent expense of reloading the cargo is, Expenses of in this ease, also to be regarded as general average expenditure, ^^ °^ '°^' appears to depend upon whether the decision in Atwood v. Sellar (p), in favour of that view, is consistent with the principles laid down in Svendsen v. Wallace (q). In the former case the view was taken that " the going into port, the xmloading, warehousing, and reloading of the cargo, and the coming out of port" were all parts of one continuous act or operation carried through for the common safety and benefit. And Lord Blackburn, in the latter case, said that if that were the state of the case then before the House, he would consider whether "it might not be fairly argued that the whole of these operations (») See infra, s. 440. (p) 5 Q. B. D. 286. (o) Sect. 404. (?) 13 Q. B. D, 69 ; 10 A. 0. 404. 462 THE VOYAGE. Sect. 413. were to be considered as parts of the expense of repairing the damage." But he thought that the ciroumstances of that case could not be so described. In the Court of Appeal, Brett, M. R., said (r) : " I do not think that the real ground of the decision in Atwood v. Sellar in the Court of Appeal was that all the acts done in a port of distress are one continuous act. What is the one act ? By what name can it be expressed ? Warehousing the cargo, reloading it, going out of port, cannot be said to be parts of the act of taking the ship into port in order to enable her to be repaired. Reloading the cargo, and taking the ship out of port when the ship is repaired, cannot be parts of the act of repairing the ship." Baggallay, L. J., who was also a member of the Court which decided Atwood r. Sellar, considered the two cases undistinguish- able with regard to the expenses of unloading, warehousing, re- loading, and coming out of port ; and consequently dissented from the decision in Svendsen v. Wallace. Bowen, L. J., said (s) : " Reloading is not an act of sacrifice, for long before it occurs both ship and cargo are safe. Is it then caused by an act of sacrifice, or is it part of the loss, in other words, which an antecedent act of sacrifice involves ? Where, for example, a ship has cut away a mast, and has put into port to repair the damage so caused, and been compelled in order to repair this special damage to unload and reload the cargo, it may follow, according to the decision in Atwood v. Sellar, that such expenses are all parts of the loss involved in the original sacrifice. But in the present instance, the only sacrifice has been the putting into port, and the reloading expenses are not part of the loss which putting into port has caused, but a loss caused by the captain's decision to repair his ship, and to unload and reload the cargo for that purpose." It is submitted that, as suggested in these judgments, the deci- sion in Atwood v. Sellar as to the expense of reloading the cargo can well be supported, without regarding that act as necessarily or continuously connected with the act of putting into port, on the ground that it was part of the cost involved in repairing before the end of the voyage; and that the necessity of so repairing was the consequence of the voluntary sacrifice in cutting away the mast. (r) 13 Q. B. D. p. 90. {«) Md. p. 89. OENEEAL AVERAGE. 463 413. With regard to the expense of warehousing the cargo during Sect. 413. repairs, however, it is difficult to reconcile the cases of Atwood v. Warehousing Sellar and Svendsen t>. Wallace, in the Court of Appeal. The House of Lords, in the latter case, declined to decide that point, as it would not have affected the result : the only issue being whether the defendants had paid enough into Court. If the expense of keeping the cargo in a warehouse while repairs are being done were chargeable to the shipowner in the case of accidental damage, it might be regarded as part of the cost of the repairs. But in Svendsen «. Wallace, the Court of Appeal held that the cargo owner must bear the whole of that expense, on the ground that the cargo alone benefited by it {t) ; although the ship- owner there had to bear the whole cost of the repairs. It seems to follow, a fortiori, that the shipowner does not pay for warehousing, and therefore that that cannot be regarded as part of his loss, where the repairs are necessitated by a general average sacrifice. Perhaps, however, it may be said that where the warehousing is the necessary, though indirect, consequence of the act of cutting away a mast, or other sacrifice of the ship, this should be treated as a general average loss of the cargo owner. And that, in the same way, if his goods have been exposed and damaged during the repairs, or in course of being warehoused, that damage should be treated as a general average loss, as being a consequence of the original sacrifice. If that be so, the expense of warehousing during repairs may be a general average loss where the repairs are needed owing to a general average act, and not so where the damage has been accidental. If the warehousing and treatment of the cargo is necessary owing to general average damage done to itself, it seems clear that the expense is a general average loss, as the consequence of the damage. Under York-Antwerp Eules X. (o) (u) all storage charges are admitted as general average when the cost of discharging is so admissible; that is to say, whenever "the discharge was neces- sary for the common safety, or to enable damage to the ship caused by sacrifice or accident during the voyage to be repaired, if the repairs were necessary for the safe prosecution of the voyage." In Anglo- Argentine, &c. v. Temperley Shipping Co. (x), it was contended that the cost of fodder and water for cattle while at a {t) 13 Q. B. D. 69, at pp. 78, 89. («) App. 0. {x) (1899) 2 Q. B. 403. 464 THE VOYAGE. Sect. 418. ^^^ q£ refuge were storage charges within this rule. This was disallowed. The cattle had not been discharged. And even if thej had been discharged, the same decision would probably hare been given. Damage to 413a. Damage suffered by cargo in the course of being dis- cargo at port ° , , , . i • j. j i of refuge. charged, or reloaded, or while stored, is a subject lor general average contribution, or not, according as the necessity for these operations has arisen from an act of sacrifice, or not. If the discharge of cargo is done in order to repair general average damage to the ship, or to prevent the increase of general average damage to the cargo itself, the injury suffered in the discharge and subsequent operations should be made good ; it is a consequence of the original sacrifice. Otherwise, when the discharge is to enable accidental repairs to be done, or to check the spread of accidental mischief in the cargo. For in these cases the discharge is neither a general average act itself, nor is it a consequence of a general average act. Under York-Antwerp Eules (XII.) " damage done to or loss of cargo necessarily caused in the act of discharging, storing, re- loading, and stowing shall be made good as general average when and only when the cost of these measures respectively is admitted as general average" (y). The question whether loss of or damage to cargo whilst in ware- house (say by fire or thieves) should, in any case, be made good, is one on which there seems to be little English authority (z). Pro- bably the right answer is that such damage or loss should be made good where the expense of warehousing is general average, and not in other cases. By being warehoused the goods are exposed to risks which are not the ordinary risks of the voyage, and which are not run by the other portions of the cargo. If this exposure is for the purpose of repairs, and not for the common safety, it is not in itself a general average act. "Where, however, it has become necessary by reason of a general average sacrifice previously made, the risk thus run and the resulting loss may be regarded as conse- quences involved in that sacrifice ; and the loss ought to be made good to the owner of the cargo exposed. (j^) See Rule X., as to -when that is avoids the question. The recent Danish t^ecase. Code (1892), „. 189, apparently dis- («) The York- Antwerp Rule XII. allows such damage as too remote. GENERAL AVEEAGE. 465 No difficulty need arise from the consideration that the cargo Sect. 413. while in warehouse is relieved from the risks which would be run if it had been left in the ship ; for, as in all other eases, the amount to be made good is arrived at after deducting any loss or deteriora- tion which would probably have occurred to the goods had they remained on board throughout (a). In the brig Mary (6) it was said that a loss of cargo by fire while stored a-t a port of refuge, during the repair of the ship, should be treated as general average. But it was held not to be so where the landing and storing of the cargo were necessary owing to its own damaged state ; even though also necessary for effecting the ship-repairs. In G-age v. Libby (c), wastage of a cargo of ice caused by opening the hold in order to renew a mast, at a port of refuge, was allowed in general average. But the ordinary wastage of the cargo during the delay at the port necessary for effecting accidental repairs was not allowed in general average {d). 414. It sometimes happens that expenses at a port of refuge, Loss or ex- which would be general average, can be avoided by adopting a stituted for course which will be more economical, on the whole, but which Ke^expeodi-" will involve a loss or expenditure that would not ordinarily be *"™- contributed to. For example, the expenses involved in discharging the cargo, keeping it while the ship is repaired,-and reloading it may be avoided by at once transhipping and forwarding it in another vessel ; with the result that the shipowner may lose all or part of his freight. Or, to avoid delay and expense during repairs at the port of refuge, the ship may be towed thence to her destina- tion, the shipowner thereby incurring the extra expense of the tug. In these cases, and in some others (e), average adjusters are in (a) See mfra, ss. 418, 419. towage shall be divided in proportion (S) 1 Sprague (U. S.), 17 (1842). *° ^"^^ saving of expense thereby oooa- {e) 14 Allen (Mass.), 261(1867). ' ^°''^ *° *^^ '^^'^^^ '^'^^^ *" ^^^ adventure." (^ And see Bond v. The Superb, 1 „ ^hat if a ship be in a port of refuge, Wallace, Junior, 355 ; Pars. M. Ins. II. at which it is practicable to repair her so as to enable her to carry on the 232. («) Lowndes (4th)i pp. 229 — 233. The whole cargo, but in order to save ex- following rules of practice have been pense the cargo, or a portion of it, be adopted by the Association of Average transhipped by another vessel, or other- Adjusters : ' ' That if a ship be in a port wise forwarded, then the cost of such of refuge, and if, in order to save ex- transhipment up to the, amount of ex- pense, she be towed thence to some pense saved shall be divided in proper- other port, then the extra cost of such tiou to the saving of expense thereby C. — 0. H H 466 THE VOYAGE. Sect. 414. the habit of apportioning the suhstituted loss or expense among the different interests in the adventure in proportion to the expenses saved to them respectively. It is, perhaps, not necessary to discuss this practice here, as such a discussion would he almost entirely speculative. But it may be observed that the Courts generally look at the facts as they are, not as they might have been. If no agreement among the persons concerned to bear a substituted loss or expense can be implied, either from their conduct or from the existence of some established and well-known usage, judges wiU not readUy hold them bound to pay merely because they have received a benefit by the substitution. In Wilson v. Bank of Victoria (/), a sailing ship with auxiliary screw, having lost her powers of sailing by an accident, took in extra coal at a port of refuge and steamed all the way to her destination, instead of stopping and repairing. The shipowners sought to charge the extra cost for coals as a general average disbursement, on the ground that expenses at the port of refuge had thereby been avoided. This was not allowed. Blackburn, J., said (g) : " We think that the expenses actually incurred must be apportioned according to the facts that actually happened, and that there is no legal principle on which they can be apportioned according to what might have been the facts if a different course had been pursued. No case or authority was cited to support the principle contended for, nor are we aware of any. If in any particular trade it has been found convenient to act on this principle, and that has been done to such an extent as to create a occasioned to the several parties to the order to save expenses, either she is adventure." towed thence to some other port or place A suhseqnent rule points out that the of repair or to her destination, or the saving of expense meant "is limited cargo or a portion of it is transhipped to a saving or reduction of the actual by another ship, or otherwise forwarded, outlay, inoludmg the crew's wages and then the extra cost of such towage, provisions, if any would have been in- transhipment, and forwarding, or any curred at the port of refuge if the vessel of them (up to the amount of the extra had been repaired there, and does not expense saved), shaU be payable by the include supposed losses or expenses, several parties to the adventure in pro- such as interest, loss of market, de- portion to the extraordinary expense murrage, or assumed damage by dis- saved." Under the Danish Code, 1892, charging." s. Igg (7)_ tj^^ ^^^^ ^^ temporary repaii's Under York- Antwerp Rules, X. (d), by which general average expenditure "If «, ship under average be in a is saved is treated in the same way. port or place at which it is practicable to repair her so as to enable her to '•' ' ' ^" ■"• 2"^- carry on the whole cargo, and if, in (y) At p. 212. GENERAL AVERAGE. 467 custom, tacitly making it part of the contract that this shall be the Sect. 414. principle applied, or if the parties to a charter party stipulate that ~ ' it shall he so, and, hy words of reference to the charter party in the bills of lading and the policies of insurance, make it part of the contract affecting everyone, the case would be different ; but as it is, the principle proposed is not, we think, tenable at law "(A). Contribution. 415. We have next to consider by whom, and in what proper- Principle of tions, the contributions to general average sacrifices and expenditures are to be made ; also how the amounts to be made good are to be estimated. The principle is, that those who have received benefit must contribute ; each in proportion to the benefit he has received. " The whole law on the subject is founded on the principle that the loss to the individual whose goods are sacrificed for the benefit of the rest is to be compensated according to the loss sustained on the one hand, and the benefit derived on the other " («'). But the question arises as to what is the point of time at which the extent of the losses and the amounts of the benefits are to be ascertained. Until that is fixed we cannot determine how much is to be contributed to, nor who are to contribute, nor upon what values they are to do so. In this respect a distinction has been sometimes drawn between a general average sacrifice and a general average expenditure. And there is this marked difference between them, that whereas in the case of a sacrifice something was given for the rest which itself had stiU to share the risks of the voyage, in the case of an expenditure that which was given was itself independent of those risks. A further case, which seems to be intermediate between these, is that of a sacrifice which has been made good by an expenditure, as where a mast has been cut away and then replaced before the end of the voyage. 416. We will consider first the case of a sacrifice of cargo, or Saorifloes ship's material, leaving expenditures to be discussed hereafter. completion of voyage. (A) See Schuster v. Fletcher, 3 Q. B. (i) Per Bovill, C. J., Fletcher v. D. 418. Of. Lee v. Southern Insurance Alexander, L. R., 3 C. P. 375, at p. Co., L. E., 5 C. P. 397. 382. H H 2 468 THE VOYAGE. Sect. 416. Owner of property sacrificed treated as contributing ■with the rest. The time for adjusting the extent of such a sacrifice, and the contributions to it, is when the ship and cargo have completed the voyage on which they were engaged when the sacrifice occurred ; or, if the voyage be not completed, then when it has been definitely brought to an end. It is. then first possible to ascertain the results of the sacrifice to the co-adventurers. All those interests which were at risk when that was made, and which have continued safe down to the arrival at the destination, or other place at which the voyage is terminated, must contribute in proportion to their values at that place; while those that have been lost, whether before or since the sacrifice, are exempt, unless their loss, also, is to be treated as a general average loss. If ship and cargo have all been lost there is no contribution {It} . If part of the cargo has been sold for the owner's benefit at an intermediate port after the sacrifice, but before the time of adjust- ing the contributions, its owners should still contribute iu respect of the benefit they have thus realized, for to that extent the object of the sacrifice in their favour has been attaiiied {I) . So, also, if goods have been landed and left behind at any point of the voyage. But in these cases the goods ought not to contribute to any general average loss which may have occurred on the voyage after they were in safety, for they have ceased to be at risk, and the sacrifice or expenditure was not for their benefit {m). Unless, indeed, their owner has a claim for contribution in respect of them, in which case he wiU contribute in respect of that, as shown below. 417. The owner of the sacrificed property is not to reap a benefit from the fact that his property instead of another's was selected for the purpose. The object is to put him on a footing of equahty with those whose property was not selected for sacrifice. Thus the whole value of what was sacrificed is not to be replaced, but only so much as will put the owner in as good a position as if, instead (Jc) See Pletoher v. Alexander, L. E., 3 C. P. 376 ; Dickenson*. Jardine, L. E., 3 C. P. 39 ; Arn. (3rd), 803, 812 ; Macl. 683. In the United States it has been laid down that the right to contribution depends only upon whether the pro- perty has been saved from the peril which gave occasion for the sacrifice ; Pars. M. Ins. II. 276 ; Soudder v. Brad- ford, 14 Pick. 13 ; Lewis v. Williams, 1 Hall, 430, there cited. (0 See HiU v. Wilson, 4 0. P. D. 329 ; Benecke, 300. ()«) A fortiori, they do not contribute to a subsequent accidental loss of the ship : Sheppard v. Wright, Show. Pari. C. 18. GENERAL AVERAGE. 469 of his property, other of equal value had been destroyed. This is Sect. 417. effected in the calculation by making the owner of the sacrificed property a party to the contribution in respect of the amount to be contributed to («). To that extent he has benefited by the act of " sacrifice. Therefore, on the principle that those must compensate ■who benefit, he must bear that proportionate share. Moreover, if there have been several general average acts during the voyage, each owner of a sacrificed interest is made to contribute to all the sacrifices, in whatever order of time they have occurred ; for each is to be presumed to have run all the risks of the voyage. Thus, if A. was sacrificed first and B. afterwards, B. contributes to A. because it was at risk when A. was sacrificed, and the con- tributions to be made to B. have since been secured to him. On the other hand, A. contributes to B. because the contributions to A. were at risk when B. was sacrificed, and have been since secured. In the same way, if general average expenses have been incurred, the owner of property sacrificed ought, in the calculation, to be made to contribute to the expenses, whether they were incurred before or after the sacrifice, if the property, but for that, would have been at risk at the time of the expenditure. 418. Again, the amount to be made good, and the contributing Values to be interests, are valued at the time and place of the termination of at the end of the voyage. The values are, therefore, subject to any loss or ™y^8'®* damage which may have occurred ; and in order to put all on an equal footing, an estimate has to be made of the accidental loss or damage which would probably have occurred to the property sacrificed if it had remained in the ship and been subject to the vicissitudes of the voyage. In Eletcher v. Alexander (o), a vessel loaded with salt, on a voyage from Liverpool to Calcutta, struck on a bank on the coast of Ireland. To float her off about 1,000 tons of the salt were jettisoned, and she was brought back to Liverpool with the re- mainder, about 960 tons. This was damaged by water which had got through the ship's bottom, except as to 100 tons which were still sound. The voyage was broken up at Liverpool ; and the question was as to the value to be put on the jettisoned salt for the purpose of receiving contribution. It was held that Liverpool was («) Ain. (5th), 854 ; Lowndes (4th), 38. (o) L. R., 3 C. P. 375, 470 THE VOYAGE. Sect. 418. the place at which the adjustment must be made, and that the value to be put on the jettisoned salt was that which it would have had there. Also, that regard must be had to the probability that if it had remained in the ship it would have been damaged. Bovill, C. J., said {p) : " It is clear that the value of the goods at the time of the jettison is not to be taken as the test, because, if the whole adventure is afterwards brought to an end by the loss of ship and cargo, there wiU be no contribution at all. The rules as to contribution and adjustment seem to me to depend upon the probable state of things at, and to have reference to, the time and place of adjustment, that is to say, when and where the adjustment ought to take place. If the goods jettisoned were ia such a con- dition that they would in all probability have arrived undamaged at the place of adjustment, I see no reason why their value at the time of the jettison should not be taken. It may be that they were packed in eases impermeable to water, so that they were not likely to receive damage from anything which might occur during the voyage. On the other hand, it may be that, if they had not been thrown overboard, they would not in all probability have arrived at their destination in a sound or saleable condition. In the latter case, what would be the loss of the person whose goods were thrown overboard ? Clearly not ,the value of the goods in a sound state. In the present case, it is almost a matter of certainty that, if the salt which was jettisoned had remained on board, it could not have reached the port of adjustment, Liverpool, in a sound state. What, then, is the loss which the owner has sustained by the jettison ? The only loss I can suggest is the value of the salt if it had arrived in an unsound state " [q). {p) At p. 383. age, the result being the same as if a [q] Lowndes (3rd ed.), 19, described smaller sum were made good for the first the practice of English adjusters as f ol- sacrifice, in consideration of the property lows : " The property sacrificed istreated then destroyed having escaped the second as if it had remained on shipboard ex- loss. If, by subsequent accident, a por- posed to the same risks as the remainder. tion of the property is destroyed, or the Hence if all is subsequently lost, there whole is damaged, the alLowanoe in is no contribution, because the article general average made in respect of the sacrificed would have been lost with the previous sacrifice is reduced proportion- remainder. If, by reason of an accident ately ; provided, that is, the facts of the subsequent to the first sacrifice, it be- case reasonably raise the inference that comes necessary to make a second sacri- the property first sacrificed, had it re- fice, the property sacrificed at first, mained in the ship, would have been though not on board, is brought in as a damaged or partially destroyed." Of. contributor to this second general aver- Benecke, 290. GENERAL AVERAGE. 471 419. Where the ■ contribution is in respect of damage done to Sect. 419. goods through some general average act, the amount to be made Estimate of good is in the same way to be estimated with reference to the goods, incidents of the voyage subsequent to the damage. The actual amount of damage is shown by the resulting depreciation in value at the place of adjustment. But from this should be deducted any portion of the damage which would probably have been sustained before arrival, had it not already been suffered by the sacrifice. Thus, as we have seen (r), if goods be injured by exposure in lighters for the general safety, but yet by being there are saved from a greater disaster, which would have befallen them had they remained on board, there should be no contribution to the injury (s). Goods which have been damaged contribute on their value as discharged at the place of adjustment ; but if they are to receive general average contributions in respect of any part of the damage, they also contribute on the amount of that part, in addition. Both for contributing, and for beiug contributed to, the values Valuation of of the goods are estimated upon the market prices, at the place of adjustment, on the date of the discharge. Freight, if any is payable there, and the usual expenses of landing and sale are deducted : but no deduction is made for merchants' commissions on selHng, nor for insurance premiums {t). Where, by entering a port of refuge in Brazil it became (by law) impossible to land cattle at their intended destination, Deptford, and they were in consequence landed at Antwerp, where their market value was much smaller, the depreciation was allowed in general average (m). 420. It is only the property at stake, and the freights which No oontribu- depend upon its safety, that contribute. Nothing is paid in respect lives. of lives that may have been saved (»). Moreover, even as to the property, there are some established Nor for pro- exceptions. Thus, provisions do not contribute, although shipped Sg°^pareT'' for consumption by passengers («). Nor do the wearing apparel, ^°- (r) Supra, s. 373. As to freight, infra, ss. 433, 439, 440. («) Beneoke, p. 306, said that tte goods («) Anglo-Argentine, &c. Agency ■!;. put out in barges should contribute to a Temperley Shipping Co., (1899) 2 Q. B. subsequent general average loss on the 403. ship : this seems doubtful, except as re- {v) Abbott (5th), 356 ; (13th), 657. gards any claim for contribution in re- (sc) Brown v. Stapyleton, 4 Bing. 119. speot of those goods. The claim there was for contribution in {t) Benecke, 301 ; Lowndes (4th), 307. respect of provisions unoousumed at the 472 THE VOYAGE. Sect. 420. jewels or other tilings belonging to the passengers or crew, and taken on hoard for their private use, and not for traffic {y). In Brown v Stapyleton (z). Park, J., said : " The rule is that aU merchandise put on hoard for the purpose of traffic is liable to be brought into contribution, and in merchandise is included all property of great value, unless attached to the persons of the pas- sengers. But property so attached does not contribute ; and all the writers go on to say that the owners are not liable to contribute for the victuals and ammunition of the ship." The obligation to contribute, and the right to receive contribu- tions, are not necessarily correlative. Cargo stowed on deck contributes with the rest; even though it would not have been entitled to contribution if itself sacrificed {a). On the other hand, contribution is commonly made to a jettison of passengers' pro- visions, although, as we have just seen, they do not themselves contribute. And so, it would seem, contribution should be made to passengers' luggage jettisoned, or damaged in putting out a fire, although such goods do not generally contribute to sacrifices of other property (6). Sacrifice of ^21. The usual measure of a sacrifice of ship, or ship's stores or ship's mate- materials, that is to say, the amount to be made good in respect of nal ; amount ' •' ' o jr to be made it, is the cost of repairing or replacing the thing sacrificed ; subject good. to certain deductions fixed by custom to meet the advantage to the shipowner of having new work and materials for old (c). And the cost to be taken is that at the place at which the work is reason- ably done. So that if it is reasonably necessary to repair at a port of refuge, the cost of doing so will be allowed, although that may be an exceptionally expensive place for fehe purpose. Where the ship is not repaired the measure of the sacrifice is more difficult. If the whole damage suffered, on account of which she is condemned, is general average damage, the measure of the loss will be the value of the ship when undamaged, less the proceeds of the wreck. time of the loss. The rule does not and personal effects, not shipped under seem properly to apply to provisions a bill of lading, shall not contribute to wHoh remain unconsumed at the end of general average." the voyage: Lowndes (4th), 326. Cf. (z) 4 Bing. 119. Phill. ss. 139i, 1399 ; Am. (6tb), 891. («) Am. (6th),' 810 ; PhiU. s. 1396 ; {y) Abbott (5th), 356 ; (13th), 657 ; Lowndes (3rd), 32 ; supra, s. 379. Lowndes (4th), 325. Under York-Ant- (i) PhiU. s. 1394 ; Benecke, 308. werp Rule XVII,, "passengers luggage (c) See ^os;, b. 422, GENERAL AVERAGE. 473 If, however, the condemnation is the result of damage which Sect. 421 has teen partly hy sacrifice, and partly not attributable to sacrifice (particular average), the general average loss is got by ascertain- ing the difference between the value of the ship when undamaged and the estimated cost of repairing the particular average damage, and then deducting from that the value of the wreck. In Henderson v. Shankland {d), a ship encountered a storm which damaged her, and put her on her beam ends. In order to right her the mainmast and foremast were cut away. She was towed into Calcutta, and there condemned and sold as a construc- tive total loss. The Court of Appeal, afi&rming Mathew, J. (e), laid down the rule for ascertaining the general average loss as above stated. The general average sacrifice there took place after the accidental damage had occurred ; but the same rule applies where the order is reversed. For in estimating the amount to be made good in respect of a sacrifice of ship, deduction must be made for any particular average damage which the ship would probably have sustained during the subsequent part of the voyage if that sacrifice had not been made (/). 422. The deductions made for new work and materials, in Deductions estimating the amount to be made good to the shipowner, have been fixed by long usage ; and the convenience of fixed rules on the subject is obvious, though they can only work rough justice. The rule has been to deduct one-third of the actual cost of repairs and renewals, including both labour and materials (g). But no deductions are made where perfectly new materials, such as ropes or sails, have been sacrificed ; nor from the value of anchors, or of provisions, or other stores which do not depreciate ; and one- sixth only is deducted from the cost of new chain cables (h). A further exception is, that no deduction is made from repairs when the ship is on her first voyage ; and this includes the whole of her first voyage outwards and homewards. For example, where a vessel had first sailed outwards under a charter party to Van Diemen's Land, and had thence gone to Madras in ballast, and {d) Hendersomi. Shankland, (1896) 1 Corporation, Ry. & M. 378. But not Q. B. 525 ; Lowndes (ith), 303. from incidental expenses, suoli as those («) 1 Oomm. Ca. 252 ; 333. of conveying materials for repair to the (/) See above, s. 418. ship : Lowndes (4th), 299 (n). (g) See Aitohison ii.Lohre, 4 A. C. 765, (A) Lowndes (4th), 298. As to metal p. 762 ; Poingdestre v. Royal Exchange sheathing, ibid. 474 THE VOYAGE. Sect. 428. there taken in cargo for England, a jury found that she was still on her first voyage ; so that underwriters could not claim the deduction of one-third new for old (i) . Presumahly the same is true in relation to general average contribution. But the rule of deduction appears to apply whether the damage done was to a part of the ship newly replaced, or to old work, if she was not on her first voyage (k). In Henderson t\ Shankland (l), where the ship had been con- demned in consequence of general and particular average damage, it was held that the general average loss was to be calculated by deducting the estimated cost of repairing the particular average from the undamaged value of the ship. And it was further held tliat in making that calculation no deduction of thirds should be made from the estimated cost of the particular average repairs (m). Having regard to the changes in the construction of ships, and especially to the prevalent use of iron and steel, the one-third rule is no longer considered a fair one for general application. In policies of insurance it is got rid of by express clauses ; and it is not followed in adjustments of general average, except in relation to wooden ships (re) . (t) Pirie v. Steele, 2 M. & Rob. 49 ; Fenwick v. Robinson, 3 C. & P. 323. (k) See Poingdestre v. Royal Ex- change Corporation, Ry. & M. 378. But the practice as to this appears not to be uniform. See Lowndes (4th), 300. {!) (1896) 1 Q. B. 525. {m) It is submitted that the decision on this latter point was mistaken. The endeavour was to ascertain what the ship was worth after the particular average damage and before the general average sacrifice. For this purpose the vmdamaged value of the ship was taken as the basis of the calculation. But the particular average repairs, if done, would have added to that original value. That is the theory of the custom to de- duct thirds. Thus the cost of the par- ticular average repairs was not a measure of the depreciation from the undamaged value, but a measure of the depreciation from the repaired value. Hence, either the repaired value should have been taken as the basis of the calculation, or the deduction of thirds should have been made from the esti- mated particular average repairs. As a reason against this view , the Court of Appeal referred to the rule that no deduction of thirds is made in estimat- ing whether a loss is a constructive total loss, and authorities on that point were cited. But in considering whether a ship is a constructive total loss the question is whether the expense of re- pairing will exceed the value ivhen re- paired. No comparison is made with the value of the ship when undamaged. The cases are therefore quite different. The other reason given was that the repairs had not been done ; so that no one got any benefit from them. But the calculation to be made was simply of the ship's value at a particular point of time, not of the gain or loss to any one by repairing. («) See the deductions made under York-Antwerp Rules xiii., App. C. The scale of deductions ; adopted by the Rules of Practice of the Association of Average Adjusters, in cases to which the York- Antwerp Rules do not apply, is closely similar. GENERAL AVERAGE. 475 423. The value of the ship for purposes of oontrihution must be Sect. 423. taken upon the basis of her condition on arrival at the place of Valuation of adjustment, before any repairs have been done there (o). For that tribution. is the highest measure of the benefit derived by the shipowner from the saving of the ship itself. And if any repairs of permanent value have been done to the ship since the sacrifice, it would seem that the value of those repairs, on arrival, ought to be deducted. On the other hand, the valuation must include the amoimt of any general average damage to the ship which is to be contributed to ; just as the owner of jettisoned goods is treated in the calcula- tion as a contributor in respect of the amount to be made good to him for them. The general average damage to the ship has been saved to the shipowner. But a question of difficulty sometimes arises as to the amount in respect of which the shipowner should contribute when damage resulting from a general average act has been repaired on the voyage. In that case the whole cost of the repairs properly incurred, less deductions, is a general average loss, being the con- sequence of the general average act ; although the amount may be far greater than the cost of doing the work at the destination would be. Ought, then, the shipowner to contribute in respect of the whole of that cost in all cases ? It seems not. The principle is that he should contribute with the others upon what has been saved to him by the sacrifice, in- cluding the right to have the damage made good to him at the destination ; or, it may be put, that he should contribute to the loss in the same proportion as he would have done had the property of someone else been sacrificed instead. If a mast was cut away, that act saved for him the right to have such a mast as was cut away restored to him at the end of the voyage, subject to intermediate risks. The value of that right is represented by the lowest cost of making good the mast under the conditions existing at the port of destination ; he ought not, therefore, to be required to contribute in respect of the extra cost of replacing the mast at the port of refuge. That has been of no permanent benefit to him. 424. As we have seen, if the voyage is not completed, but is Wherevoyage troke interi port. abandoned at a port of refuge, the time and place of abandoning intermediate (o) Lo-wndes (4th), 305. As to valuing a ship, ibid. ; Am. (3rd), 813 ; Benecke, 310. 476 THE VOYAGE. Sect. 424. Where the voyage is several destiaations. it determine the adjustment of the contributions. The values of the different interests should he calculated as at that place {p). Whether the voyage has been broken up there or not is a question of fact. In Fletcher ®. Alexander (p) the remainder of the cargo was sold at the port into which it was brought, and the ship, after repairing there, took in a new cargo for her former destination. It was considered that the original voyage had ended. In Mavro v. Ocean Marine Insurance Co. (q) part of the cargo (of wheat) was sold at a port of refuge, and the remaiader was shipped to its destiaation in another vessel. The repairs of the ship took two months. It was held that the voyage was properly broken up at the port. On the other hand, in Hill v. Wilson (r), The Virago had sailed with a general cargo of 1,893 tons from Eiga for Hull. She stranded and was towed into Copenhagen on December 9th, 1876. Thirty tons had been jettisoned ; 1,643 tons were sold as damaged at Copenhagen ; and of the remaiader (220 tons) part was forwarded to Hull in other vessels and part (127 tons) was taken on to Hull in The Virago herself. She arrived there on February 10th, 1877. Lindley, J., considered that the original voyage had not in fact terminated at Copenhagen, and that that was not the proper place of adjustment. 425. Where the voyage is to more than one destination, with cargo to be discharged at each place, the questions, where ought the adjustment to take place ? and on what basis of values ? give rise to many difficulties, and the matter appears to be without judicial authority. For example, let us suppose that a ship destined for Y., but intended to call at X. on the way, takes in a cargo at A. which is partly for X. and partly for Y., and that a general average sacrifice occurs before she gets to X. : ought that to be contributed to at X. ^ on the basis of values existing there, and irrespective of what may happen on the subsequent voyage to Y. ? or should the subsequent events of the voyage be taken into consideration to any, and what, extent ? It seems at first sight that if one final adjustment of this general average must be made, that ought to be done at X., the {p) Pletolier v. Alexander, L. E., 3 C. P. 375. (?) L. E., 9 C. P. 595 ; L. E., 10 C. P. 4H. W 4 0. P. D. 329. GENERAL AVEEAGE. 477 first port of discharge, and should be based on the state of things Sect. 425. there existing. For that is the termination of the voyage which is common to all the contributors. Moreover, if the sacrifice has been of goods destined for X., the loss of them by the sacrifice becomes, on arrival there, an accomplished and realized fact. It is then ascertained that if they had not been sacrificed they would have accomplished the voyage and come safely to the hands of the consignees. That loss, then, ought to be made good without regard to what may happen afterwards. Otherwise the owner would have been better off if cargo destined for T. had been taken; and the rule that the person whose property has been sacrificed should be put in as good a position ^as if another's had been selected would be broken through. On the other hand, if the goods destined for Y. are made to contribute at X., the principle that contribution is to be in pro- portion to the benefit received from the sacrifice may be infringed, for the owners of those goods do not realize any benefit until the goods have arrived at T. ; or have been landed and given up, or sold, at an intermediate port. Shippers to T. have no interest in the voyage to X. except as part of the journey to T. If, then, a loss of cargo occurs between X. and Y., and the owners of it have been required to contribute at X., they will have done so without having had a corresponding benefit from the sacrifice. The position of things at X., so far as concerns the goods for Y., is the same as though X. were a port of refuge, into which the ship had put after a storm in which some of the cargo had been jettisoned. We have seen that in such a case no contribution becomes payable by the remaining cargo, unless some of it gets to its destination ; and that the contributions are not upon the. values at the port of refuge, but on those at the destination (s). Further, however the case may stand as between cargo for X. and cargo for Y., it seems clear that the owners of cargo for Y. ought not, as among themselves, to have to contribute on any other basis than that of the values on arrival at Y. But the difficulty of making X. the place of adjustment is still («) It may be suggested, that the risk contributing values at X., to represent of losing the benefit for which the cargo the risk between S. and T. would f or T. would have to pay, atX., might equalize matters over a long series of be insured , but the cost of insuring voyages ; but that might be quite un- would be the same burden, only in satisfactory to the shippers on any par- another shape. A deduction from the ticular voyage. 478 THE VOYAGE. Sect. 4S5. more marked if we suppose the goods sacrificed, before reaoliing X., to have been goods destined for Y. In that case there would not at that place have been any actual realized loss to the owner by the sacrifice. The goods, had they not been sacrificed, would still have been at risk. If a loss should occur between X. and T. which would have iuvolved them, so that they would not have arrived, they would, in effect, never have been sacrificed at all. It there- fore appears that there should not be any contribution to those goods, unless they would have reached Y., or some destination at which the owners would have received them ; and at any rate the other owners of goods for Y. should not contribute unless that would have happened. It may be urged, however, that the liability of the owners of cargo for X. ought not to be increased by what may happen between X. and Y., when they have ceased to be concerned in the adventure, as it would be if the cargo for Y. only contributed on its diminished value at that place. Also that their liability to contribute to a sacrifice of goods destined for Y. ought not to be diminished by the happening of a total loss between X. and Y., seeing that they have actually realized the full benefit of the sacrifice. But neither of these objections is convincing. Shippers for X. are not entitled to regard all their co-adventurers as though they were also shippers for X. Nor, upon arrival at X., can they claim that the only difference between their position and that of shippers for Y. is that the values of the latter's interests are subject to a deduction to represent the probable risk of loss between X. and Y. The difference is far broader ; it is that between owners of goods which .have and have not accomplished the adventure (t). As between themselves, indeed, the owners of cargo arrived at X. must contribute in the same proportions, whatever happens after- wards; but they cannot claim to have their co-adventurers as co-contributors until they become liable as such according to the principles of the law. As to the other objection, it is not enough that the owners of cargo for X. have received a benefit, and therefore should con- (;;) The case might be different if the Y. That, for example, -would seem to subsequent voyage, from X. to Y., were be the case where a ship sailing from substantially a new voyage ; so that X. New York to Liverpool brings goods could not fairly be considered to be which she is afterwards to carry on to merely a port of call on the voyage to China. GENERAL AVERAGE. 479 tribute. For if the sacrifice was of goods for Y., and if those Sect. 425. goods would never have arrived at T., or at any other destination, there is no loss to contribute to. 426. There appears, then, to be a conflict between the principle SembU, the that the owner of goods sacrificed should be put into the same should be at position as if the goods of another had been taken, and the other yoy^e. " principle that contribution should be in proportion to benefit received. In choosing T. as the place of adjustment, the former might be infringed ; in choosing X. the latter might be. On the whole, it seems to be of chief importance to maintain the rule that contribution should be in proportion to benefit. And if that is so, the rule should be that the adjustment should take place at the end of the voyage, on the basis of the arrived values as then ascertained (m). Should the ship and cargo be lost between X. and Y., the ulti- mate port, contribution to cargo for X., which may have been sacrificed before getting there, should take place among the owners of cargo landed at X. alone. Any general average loss which may occur between X. and Y. should not, of course, be contributed to by the cargo for X. And, on the other hand, any cargo taken in at X. for Y. should con- tribute to that loss, but not to any which may have occurred prior to the loading of it at X. 427. The question of the place at which the adjustment is to be Law of place made is important in another way ; for apart from agreement to Adjustment, the contrary, the law of that place determines the manner of adjust- ment. That is so whether the adjustment is made at the contem- plated port of discharge or, according to the events of the voyage, at some other place {x) . But a shipowner will not be allowed to affect the rules of adjust- ment by terminating the voyage unnecessarily at a port of refuge. Such a termination must have been " by agreement or by necessity, i.e., the occurrence of circumstances beyond the control of the (m) But see Lowndes (4th), 273. This [x) Simonds v. White, 2 B. & C. 805 ; may give rise to more practical diffi- Mavro v. Ocean Marine Ins. Co., L. K., culties than the rule that the adjust- 9 C. P. 695 ; L. R., 10 0. P. 414 ; Pars, ment should be at the first port. But M. Ins. II. 360. The shipowner is not it is, I believe, at present usual to have under an obligation to have an adjust- the adjustment made at the end of the ment prepared by an average stater at voyage ; so that the practical difaculties the portof discharge : Wavertree, &c. Co. are probably not insurmountable. v. Love, (1897) A. C. 373. 480 THE VOYAGE. Sect. 427. defendants, and such as rendered the completion of the voyage on the terms originally agreed upon physically impossible, or so clearly unreasonable as to be impossible in a business point of view " («/). Contribution 428. The case of a general average expenditure differs in some turediOTildbe respects from that of a sacrifice of part of the adventure. The ^i"o1l-oyage- ™o^ey which has been expended did not form part of that, and was not subject to its risks. Eepayment of it should therefore not be contingent upon those risks. Hence it has been repeatedly laid down by writers of authority, both in England and in the United States, that the rule as to con- tribution to an expenditure is different from that as to a sacrifice." It is said that all the parties interested in the adventure become, there and then, as soon as the advance is made, liable to repay their shares, and that those shares should be in proportion to the values of the property at the time of the expenditure, without regard to subsequent losses or deterioration (s). There has not, however, been any decision on the point, and adjusters in practice do not recognize the supposed distinction. They take the state of things at the termination of the adventure as the basis for contribution, both with regard to sacrifices and expenditures (a). That course is doubtless the most convenient. Is it also consistent with principle? If, after general average disbursements have been made, a total loss of ship and cargo occurs, it seems clear that the disbursements should not be borne by the shipowner entirely ; or if the value of what is ultimately saved of the adventure is less than the expendi- ture, it is equally clear that the excess of expenditure should not fall wholly either on the shipowner, or on the owners of what has («/) Per Lindley, J., Hill ». 'Wilson, i hagen Sea Assurance Co., 1850, b. 49, C. P. D. 329. And see Mavro v. Ocean set out in Lowndes, p. 394 ; and it Marine Ins. Co., uU supra. appears that even tlie Danieh adjusters (z) Benecke, 298 ; Am. (3rd), 802 ; do not act upon the distinction, though Maol. 685; Lowndes (3rd), 177 ; Pars. they recognize the liability to contribute M. Ins. II. 295 ; PhiU. Ins. s. 1355. to expenditures in the event of a total But a further distinction again is some- loss : ibid. 397. This is also recognized times drawn where the funds are raised by English adjusters ; and ^by some by bottomry: PhUl. Ins. o. 1356. foreign codes, e.g., the Dutch, Bk. 2, {a) Lo-wndes (3rd), 167. The same tit. 2, s. 738 : ibid.ZZI; andthePortu- praotioe appears to be followed in some guese, tit. 15, b. 1852 : ibid. 341. The parts at least of the United States : ibid. Tork -Antwerp Rules, XVII. make 284 (n.). None of the foreign codes pre- the values at the termination of the scribe a different rule for expenditure, adventure the basis of contribution except the Danish charter to the Copen- without distinction. GENEEAL AVERAGE. 481 been saved. But it does not, therefore, foUo-w that in all cases the Sect. 428. contribution to general average dishui-sements should he by the different interests as they existed at the place where the expenditure was made, and in proportion to their values at that time. The view that that ought to be so seems to depend upon the assumption that an indebtedness at once arises when the disburse- ment has been made, and that the debt of each one is in proportion to the value of his interest. Such a debt must depend either upon a rule of law, or upon an implied agreement. There is not, generally, any express authority for, or agreement to repay the expenditure : the master makes it for whom it may concern. And, except /or the necessity/ of making good the disbursement in the event of a subsequent total loss or insufficiency of ship and cargo, there is no reason for-making a rule, or implying an'agreement, in the case of a disbursement, different from that which is established, or implied, in the case of a jettison. Both in the ease of a general average sacrifice and a general average expenditure, the object is the immediate safety of the ship and cargo. But the immediate safety does not terminate the risks which the ship and cargo are to encounter together. And until those have been escaped, no benefit is actually realized. It is therefore established, in the case of a sacrifice, that the contributions shall be in proportion to the benefits ultimately derived. The reasons for this equally apply (with the one reservation) in the case of an expenditure. The rule of law should therefore, if possible, be the same in both cases. Take the. extreme case of a ship which has arrived, but with all her cargo damaged, and made worthless, by perUs met with after a general average expenditure at a port of refuge. That expenditure on the hypothesis was necessary for the safety of ship as well as cargo ; and she, and she only, has reaped the benefit of it. It is fairer, then, that the shipowner should bear it alone than that the cargo owners should have to pay part. 429. But if both ship and cargo be lost after the expenditure Must be re- has been incurred, or if what is saved be insufficient to meet it, interested at then the deficiency ought in some way to be contributed to. The oase^rfsX shipowner should not bear it all. And the reasonable rule seems sequent total to be that those who were interested in the adventure at the time of the expenditure should contribute in proportion to their interests at that time. c. — c. I I 482 THE VOYAGE. Sect. 429. There seems to be no real difficulty in tlius altering the rule to he adopted according to the event. If, for example, expenses were incurred in endeavouring to save a stranded ship and cargo, it is scarcely doubtful that they must be borne in proportion to what may have been saved (b) ; not according to the values of the pro- perty as it lay. WhUe if the expenditure were fruitless, or if the property saved were insufficient to meet it, it would be necessary to apportion the deficiency according to the values sought to be saved; or at any rate in some other way than according to values saved. 430. It has been contended that general average expenses be- come due at the port of refuge by analogy to salvage (c) . Salvage undoubtedly becomes payable upon all the property saved, in pro- portion to the values at the place to which it was brought {d) ; and no subsequent losses will remove the liabilities of the owners of the several portions of it to pay their shares of the salvage. But, as above pointed out(e), salvage payments and general average con- tributions are distinct from one another, and this difference in the time for contribution is a result of the difference between them. The case different from Expense of repairing eacrifioe of ship's material. 43,1. It seems still more clear that, if the expenditure has been incurred by the shipowner at a port of refuge in repairing general average damage to the ship or ship's material, those interested in the adventure do not at once become liable to repay this in propor- tion to their interests. And it is at least doubtful whether they could be required to make it good upon a subsequent total loss of ship and cargo. For such an expenditure, although a consequence of the general average act, and so a subject for contribution ultimately, is not in itself such an act. It is incurred by the shipowner in order to perform his contract, and to satisfy his obligations under that. And although he thus runs the risk of losing that with which he has replaced what was sacrificed, he does so as an incident of his contract. If, for instance, a mast be cut away, and replaced at a port of refuge, and this new mast again be lost accidentally before the end of the voyage, the only contribution is in respect of the first mast. The second mast was at risk because the shipowner was bound to have one in his ship. And if the expenditure upon it be looked (J) See per Blackburn, J., Hingston r. Wendt, 1 Q. B. D. 367, at p. 370. (c) Benecke, 298 ; Lowndes (3rd), 172. {d) Supra, ss. 360, 351. {e) Supra, s. 394. GENERAL AVERAGE. 483 at, it may equally he said that that was at risk for the same reason. Sect. 431. As, however, the need of that expenditure was the consequence of the act of cutting away, it ought to be contributed to by the goods if they arrive. 432. The amount of the disbursements to be contributed for Expense of obtaining^ must include the necessaiy cost of obtaining the money at the money. place where it was required; such as commissions on advances, discounts on bills, or premium and charges on a bottomry bond(/). Where goods are sold at a port of refuge to pay general average Goods sold at expenses there, the sacrifice is regarded in the same way as if the foj, general ° goods had been jettisoned. They are contributed for on arrival at ^g^ggf® ^^' the destination ; and are considered to have been subject to the vicissitudes of the voyage, as though they had remained on board (g). Hence, if the ship and cargo are subsequently lost, no contribution is made to the goods sold {h) . Any loss which results from selling goods at the port of refuge, instead of at the destination, becomes, on the above method, part of the general average expenditure. It represents the cost of obtain- ing the money. But if the goods were partly sold to defray other than general average expenses, a proportionate part of the loss must be apportioned io the interests for which those were in- curred («'). If the value realized at the port of refuge was higher than what would have been realized at the destination, it has been held that the owner of the goods may claim contribution to the higher amount (k). Freight. 433. We have still to consider the rights and liabilities of those Contribution interested in the freight, to receive contributions on the one hand, payable on and to contribute on the other. And first as to freight which ^^^^''y- only becomes payable upon deKvery of the cargo, or upon arrival of the ship at her destination ; so that the shipowner is at risk with regard to it during the voyage ; depending in the one case upon the safety of the goods, in the other upon the safety of the ship. {/) Am. (Srd), 811 ; Lowndes {ith), u) Lowndes (3rd), 154. 277. (?) Am. (3rd), 805. W Richardson v. Nourse, 3 B. & Aid. (A) Of. supra, s. 418. 237. ii2 484- THE VOYAGE. Sect. 433. Where freight is payable on delivery of the goods, a sacrifice of By sacrifice of them which prevents delivery involves a sacrifice of the freight on ^°°^^- them. That must, therefore, be contributed to, if, having regard to the other incidents of the voyage, it may be supposed that the goods would otherwise have arrived. Thus a jettison, or a sale of cargo to defray general average expenses, may give rise to a right of contribution to the freight upon them. So where perishable goods damaged by a general average sacrifice are left at an inter- mediate port (l). If other goods were shipped in place of them for the remainder of the voyage, the loss would of course be reduced accordingly ; though the cost of shipping the substituted cargo must be taken into account. On the other hand, the freights on the goods which are ulti- mately saved contribute. They are deducted, as we have seen,^ from the contributing values of the goods themselves, and assessed separately, so that their share may be borne by those who are interested in the freight. If the cargo was carried for the ship- owner freight-free, the whole contribution would be on the goods themselves. By sacrifice of 434 Again, if there has been a sacrifice of the ship, as by injuries too great for repair, which prevents her from carrying the goods to their destination, this generally involves a sacrifice of the freight. Either the goods cannot prudently be sent on, and the freight is wholly lost ; or they are transhipped and the freight is earned by the shipowner at an increased cost ; or an arrangement is made with the owners that they shall be delivered at an inter- mediate place, on payment of a smaller freight. In these cases, also, the actual loss of freight, taking into account the expenses avoided, is a general average loss. The freight which is saved, and that which is thus made good, being as usual treated as contributing interests. If the sacrifice has been by a voluntary stranding, the same is true; and it would seem that the freight on goods which have been lost by the stranding, as well as that lost upon the goods which are saved, is a general average loss (m). Where bill of 435. The foregoing appKes to goods carried either under a Sf from^* charter party or under a bill of lading. But where there is a charter party. (i) Pirie v. Middle Dock Co., 44 L. T. (m) Oolumhiau Ins. Co. v. Ashby, 13 *26. Pet. 331 ; Pars. M. Ins. II. 310. GENERAL AVEEAGE. 485 charter party, and goods have been shipped under bills of lading Sect. 485. which reserve a different rate of freight, a difficulty arises as to ■which is the freight .to be treated as at risk. In practice this is solved by regarding the bill of lading freights only. These are the amounts which, as regards the merchants, must be deducted in ascertaining the values of their goods for all purposes of contribu- tion ; it is, therefore, more consistent to take the same amounts as the basis of the shipowner's claims and liabilities. He could not claim on more, although the charter rate were higher ; for if so, more than the whole value of the goods would be made up to him and the merchant together ; and there is no reason why he should claim on less ; though if the lost bill of lading freight made good to him be greater than the charter freight, he will hold the excess for the charterer. 436. In each case, in order to get at the contributory value, Deduotions . , , from freiglit deduction must be made of the expenses of obtaining the freight, for oontribu- so as to get at the net value to the shipowner of that which was at °^ ^ risk at the time of the general average act and has been saved (m) ; thus, from the freight received must be deducted the cost of dis- charging the cargo and of collection. It is also the practice to deduct the wages of the crew since the general average act, and any port charges incurred subsequently to it, until all the cargo has been discharged (o). It maybe doubted whether these last are properly deducted, seeing that some at least of them would have been incurred on account of the ship itself, even though the whole cargo and freight had gone. The value of provisions and coals, laid in before the general average act and subsequently consumed, is not deducted {p). The expense of these had been already incurred ; and if any part would have been saved by giving up the voyage and abandoning the freight, that part ought itself to have contributed. The deductions to be made from freight sacrificed, in order to Deductions to ascertain the amount to be made good, should vary according to amount made the circumstances. The question is, how much has been lost by ^°° ' (m) The contribution is on " the (o) Lowndes (4th), 324 ; Benecke, 313. amount of freight at risk, minus the In the United States it appears that fixed expenses of earning it which would have Proportions of the gross freight are generally deducted : Pars. M. Ins. II. been saved if the ship had been lost, per Gorell Barnes, J., in The Brigell (1893) P., p. 196. [p) Lowndes (4th), 324. 310, 334. Of. SpafEord v. Dodge, 14 per GoreE Barnes, J., in The Brigella, Mass. 66. 486 THE VOYAGE. Sect. 436. the sacrifice ? Where part of the cargo has been jettisoned, but the voyage completed, the shipowner's loss is of the -whole unpaid freight on those goods, less the cost of landing and delivering them. The expenses of completing the voyage have not been avoided, and no part of them should therefore be deducted. If, however, the sacrifice be of the ship, and the freight be lost because she has not completed the voyage, that freight should not be made good without first deducting the expenses which would have been incurred in earniug the freight if the voyage had been completed, and which owing to the sacrifice have been saved {q). Freight pay- 437. Where the contract of carriage makes payment of the of sMp. freight conditional upon the arrival of the ship, not of the goods, a sacrifice of the latter does not give rise to a loss of freight. Groods sacrificed in such a case are contributed to without any deduction of freight ; and, on the other hand, the whole freight contributes on arrival, notwithstanding any losses of cargo. A sacrifice of the ship which prevents her completing her voyage under such a charter party occasions a loss of freight to which contribution must be made (r). Freight con- 438. Where the voyage which the ship was making at the time subsequent of the Sacrifice was not the only one for which she then had engage- voyage. ments, the question arises, how far are freights which are condi- tional upon performance of, or to be earned under, her subsequent engagements, to be brought into the account ? First, where the freight is conditional upon the completion of a subsequent voyage, as under a charter party for a voyage out and home, at a freight to be paid upon the return home, what part of (?) The practice of EngUsh adjusters i„ Chrystal v. Flint, 82 Fed Rep. IS expressed in the following rule of the 472 (1807), Brown, J., allowed the Association of Average Adjusters: gross freight on jettisoned goods in That the loss of freight to be made ge^^eral average, as being the usage of good m general average shall be ascer- the port of New York. He considered tamed by deducting from the amount of that that accorded with the general law gross freight lost the charges which the of the United States, without, however, owner thereof would have incurred to approving it. In Columbian Ins. Co. .! r„'.nrottf '^ -fi . '" 7T- ^^^^y' 1=' P^'- 331 (voluntary strand- quence ot the sacrifice not incurred." ,-r,„N +v,„ j ■ ,\ IntheUnitedStatestheruleseemsto Zt.'J' ^™" height was apparently be to allow the gross freight lost without deductions : PhiU. s. 1368 ; Pars. M. Ins. ('') Columbian Ins. Co. v. Ashby,' 13 II. 310 ; GourUe, 487. Pet. S. C. E. 331. GENERAL AVERAGE. 487 it ought to contribute to a general average loss on the outward Sect. 438. voyage ? This question arose in "Williams v. London Assurance Co. (s) in an action on a policy on the ship ; the defence being that a deduc- tion should be made of a contribution in respect of the freight, made payable on the return voyage, to a general average loss incurred upon the outward voyage. The return voyage had in fact been accomplished. Under the charter party 3,000/. was advanced in respect of the freight on sailing outwards; but the whole freight was to be calculated at certain rates per ton of the goods brought home, and it was only to be paid upon condition that the ship arrived home. It was held that the whole freight must contribute, on the ground that it had in fact been preserved by the general average sacrifice. What should have been done had the average been adjusted at the end of the outward voyage was not decided. That would ordi- narily be the proper place for the adjustment, and, at that place, only a prospect of earning the freight had been saved, while the cargo's safety had been definitely realized. To put them on an equality, therefore, the freight should contribute only on the value of the prospect of earning it. And all the cost of completing the voyage, together, it would seem, with a fair allowance for the use of the ship on the homeward journey, ought to be deducted (t). In Moran v. Jones («<) , general average expenditure had been incurred when the ship was on an outward voyage under charter to carry a homeward cargo of guano, on which freight at 4:1. 10s. per ton was to be paid, partly at the loading port, partly on arrival at the port of discharge. She carried a small quantity of goods outwards for persons other than the charterers. In an action between the shipowner and his insurer of the chartered freight, the latter admitted that this freight should contribute to the expenditure. And the Court said that that ought to be so. 439. Next, where the ship has been chartered for other voyages where sMp after that which she is making, at independent freights. subsequmt""^ If the agreements for those voyages have a peculiar value for voyages. («) 1 M. & S. 318. And see in U. S., (^) gee Benecke's observations on the The Brig Mary, 1 Sprague, 17. Cf.The ore «. ns t ^ /,i.t,x -D • n rtonoN-D fon v XI. , • oase, p. 315, &o. Of. Lowndes (4th), BngeJla, (1893) P. 189, -where the ship \ /> was in ballast, sailing outwards to earn ^^°' ^°- ' ■^'^- "• ^^®^- a homeward freight. («).26 L. J., Q. B. 187. 488 THE VOYAGE. Sect. 439. the shipowner, then, since that value was at risk and has been saved to him by the safety of the ship, he ought to contribute for it. And on the other hand, the loss of it is a general average loss in case of a sacrifice of ship which prevents its attainment. But where they are no more than ordinary employments for the ship, there should be no contribution in respect of the freights which may be earned under them. For the benefit to be derived by the shipowner is only the ordinary one which arises from owning the ship, and is, therefore, covered by her valuation, and contributed for in respect of the ship herself. Thus, if the ship is chartered for a series of independent voyages, upon ordinary terms, and a sacrifice occurs on one of them, the freight upon that only should be taken into account for purposes of separate contribution. Or, again, where a ship is carrying a cargo outwards, and is chartered to bring a cargo homewards, at an independent freight, the homeward freight should not be treated as a contributory to general average on the outward voyage. If it were, the outward cargo should be a contributory to a loss of that freight, in case of a sacrifice of the ship on the outward voyage. But the homeward freight is really an interest in an adventure to which the outward cargo is not a party. The general average on the outward voyage should be adjusted at the end of that voyage, the ship contributing or receiving'on her full value there. That value should comprehend the whole of her ability to earn future freights, including the homeward freight. This freight should not, therefore, make or receive contributions independently (a;). FreigM paid in advance included in value of goods. 440. Freight cannot strictly be said to be at risk unless the payment of it depends upon the safety of the cargo or of the ship {y). If, by agreement, it has been paid in advance, or is unconditionally payable at a certain time, it is not at risk as freight. For the contract is not altered by a loss of the goods ; {x) See Potter v. Rankin, per "Willes, J., L. R., 3 C. P. at p. S67 ; Am. (6th ed.), 906 ; PhiJl. Ins. o. 1387 ; but ef. The Brig Mary, 1 Sprague, 17. Under the rules of practice of the Association of Average Adjusters, freight under a separate charter for an ulterior voyage does not contribute. (y) "The principle upon which freight is to contribute in the case of general average is that it was one of the things at hazard at the time when that sacrifice which produced the general average was made. ' ' Per Lord EUenborough, in Cox V. May (4 M. & S. 152, 159). In that case the only contribution, to salvage, in respect of freight, was by the shipowner ; the charterer's prepaid freight was dis- regarded. GENERAL AVERAGE. 489 and freight paid ia advance is not repayable hj the shipowner Sect. 440. upon the loss (2). But where the merchant has paid or is liable to pay freight on goods independently of arrival, the value of the goods at the destination, upon which he is to make or receive general average contribution, must be estimated without any deduction of that freight ; for their full value without deduction of freight was at risk to him. And where the voyage is broken up at some other place than the destination under circumstances which put an end to the shipowner's obligation to carry on the goods, the value of them must be estimated at that place without deduction or addition of the freight paid in advance {a). If the goods are more valuable there, owing to the transit so far accomplished, that will appear in the valuation. In Frayes v. Worms (6) the question arose whether a charterer was liable to contribute to general average expenses incurred on the voyage, in respect of freight paid in advance upon a cargo of coals, shipped by him for San Francisco and delivered to him there. The Court held that the charterer's interest at risk was increased by the amount of his advances, and that he must con- tribute in respect of them. The question whether this contribution was in respect of an interest in freight, or of an interest in cargo, was not decided ; but the latter seems to be the clearer view. If the cargo had been lost, but the ship had arrived, no contribution could have been due in respect of the advances. " Here the charterer is interested in' the safe carriage of the cargo. He is interested in the same way as a shipowner who has partly filled up the ship with his own goods is interested. That might be insured in the name of freight, and would have to contribute to general average " (c). At any rate, it appears to have -been decided in Svendsen v. Wallace {d) that the charterer is not liable to contribute in respect of freight paid in advance to expenses of reloading the cargo, which, as between owner of ship and owner of freight, may be chargeable to freight. (s) Infra, s. 562. as Trayesi". 'Worms, 34 L. J., C. P. 274. (a) Fletolier v. Alexander, L. R., 3 (e) Per Willes, J., 19 0. B., N. S. C. P. 375. p. 176. (i) 19 C. B., N. S. 159 ; iS. C, reported {d) 10 A. 0. 404 ; supra, s. 410. 490 THE VOYAGE. Sect. 441. 441. Where the charterer has advanced the freight for a round Advances voyage, SO that it is partly paid for one adventure and partly for fo^'^roun^*^'' another, the case is more complicated. The right method, perhaps, voyage. would be to regard the freight advanced as a separate interest, and subject to no deductions. But as to how it is to be apportioned between the outward and homeward voyages, and as to whether any and what part is to be contributed to upon a sacrifice of goods, there is little or no authority. Much must, no doubt, in each case depend upon the terms of the charter party. Remedies, Shipowner 443. The shipowner has a lien upon the goods for general contributions average contributions due in respect of them, whether the claim OToar-o™'^^ be on his own behalf or on behalf of other cargo owners (e). owners. But the goods are not usually detained until the amount has been ascertained ; the calculation takes time ; and detention , for an estimated claim exposes the shipowner to the risk, on the one hand, of getting less than is due, and on the other hand, to liability to damages for detaining the goods for an excessive amount (/). The goods are commonly given up on an under- taking by the receiver to pay the amount due in respect of them, and to furnish particulars of their value, so as to enable an average adjustment to be prepared. Also, frequently, a deposit with a bank, or other trustee, as security, is required. The conditions of the bond, or undertaking, which the ship- owner may properly demand before giving up the goods were considered in Huth v. Lamport {g). The shipowner had there stipulated for a bond by the consignee under which the decision of the average adjuster appointed by the shipowner would be binding, subject to an appeal to arbitrators ; and under which the consignee must have deposited money in the names of the adjuster and shipowner, out of which payments for disbursements were to be made at the adjuster's discretion. It was held that these were conditions which could not be insisted upon. The shipowner is the only person who can exercise a lien for contributions, and he can generally obtain the materials for making (e) Crooks v. AHan, 5 Q. B. D. 38 ; 33 L. J., Ad. 97. Huth V. Lamport, 16 Q. B. D. 442, 735. (/) See per Lord Esher in Huth v. The lien prevails over the claim under an Lamport, 16 Q. B. D. 735 p 736 earlier tottomry bond : Cargo ex Galam, (?) 16 Q. B. D. 442 735. GENERAL AVERAGE. 491 the average adjustment. In practice, therefore, he procures the Sect. 442. adjustment, and obtains security for payment of the contributions, whether they are due to himself or to cargo owners. Moreover, he is bound to exercise his powers for the protection of merchants entitled to receive contributions. In Crooks v. Allan {h), shipowners were held liable in damages for not having taken the necessary steps for procuring an adjust- ment of a general average loss of cargo, and securing payment of the contributions. In Hallett v. Bousfield («), the owner of goods which had been jettisoned sought to restrain the master and shipowner by injunc- tion from delivering the cargo, claiming a hen upon it for contri- butions. Lord Eldon refused to grant the injunction, saying that there was no authority that the owner of part of the cargo could compel the captain to require security from the others. But in Strang v. Scott {k), Lord Watson said : " It is settled law that, in the case of a general ship, the owner of goods sacri- ficed for the common benefit has a lien upon each parcel of goods salved belonging to a separate consignee for a due proportion of his individual claim. The cargo not being in his possession, or subject to his. control, his right of lien can only be enforced through the ship-master, whom the law of England, following the principles of the Lex lihodia, regards as his agent for that purpose. The duty being imposed by law upon the master, he is answerable for its neglect." And, after referring to Hallett v. Bousfield, Lord Watson added, that it did not follow from that case " that a master might not be restrained from making delivery of the cargo, at the instance of all or most of those entitled to contribution, without taking security for their claims." Though the adjustment of the general average is, generally, to be made at the port of discharge, according to the law and on the basis of the values at that place, it is not obligatory on the ship- owner to have a statement prepared there. He is not bound to employ a professional average adjuster at all ; and he may, if he - chooses, employ one at some other port. "If he engages the services of an average stater, it is merely as a matter of business convenience on his part. The average stater is not engaged, nor {h) 5 Q. B. D. 38, and see Nobel's ,., ^^^y^^ Explosives Co. v. Eea, 2 Com. Ca. 293. Of. The Raisby, 10 P. D. 114. (*) 14 A. C. 601, p. 606. 492 THE VOYAGE. Sect. 44S. does lie act on tehalf of any of the other parties oonoerned, nor does his statement bind them." But the shipowner must act reasonably, and " if owing to his taking an unreasonably long time in presenting his general average statement other parties are prejudiced, and suffer damage by unreasonable delay, he may incur liability" (l). Shipowaer 44.3 _ rpj^g shipowner may also sue the owner of cargo for a may sue for ^ . ,. i j 1 t. j contributions general average contribution (to) ; but if the goods have changed ~^ °™ hands during the voyage, a question may arise as to which of the persons who have owned them is liable. Practically a diihculty of this kind seldom occurs, since the person ultimately liable is usually an insurer, on a policy which is transferred with the goods, and since the goods are not generally delivered without a sufficient ' undertaking. The question was touched upon in Scaife v. Tobin (w), where Lord Tenterden said: " A consignee, who is the absolute owner of the goods, is liable to pay general average, because the law throws upon him that liability. There is no other person to pay it." But it does not appear whether this was intended to apply to a consignee who had become owner after the general average loss had been incurred. And during the argument, Parke, J., had said that the plaintiff must show that defendant " was an owner at the time when the general average accrued " (o) . On principle, it is difficult to see how a liability already incurred could be held to be transferred from the vendor to the purchaser, so as to exonerate the former and to make the latter liable. But perhaps the true view is that the liability is only inchoate, and does not definitely attach until the goods have arrived at the destination, or other place at which the voyage is terminated {p). Liability of consignee. 444. In Scaife v. Tobin the shipowner sought to make the consignee liable. He was not the owner of the goods, but received them for sale for the consignors, making advances to them, and charging a commission in the usual way. He had, however, taken {T) Wavertree, &c. Co. v. Love, (1897) A. C. 373, pp. 380, 382. [m] Birkley v. Presgrave, 1 East, 220 ; Anderson v. Ocean SS. Co., 10 A. C. 107. [n) 3 B. & Ad. 523. (0) 3 B. & Ad. at p. 627. (jo) This would not be true, probably, of the liability for general average ex- penses incurred at a port of refuge, vphere the ship and cargo have after- wards been lost, supra, s. 429. GENERAL AVERAGE. 493 delivery of the goods, knowing there would be a claim for general Sect. 444. average contribution. It was held that he was not liable. If, however, delivery were taken by a consignee under circum- stances from which an agreement to pay the contribution could be inferred, the case would be different. Thus, if the delivery were taken under a bill of lading which expressly required the payment, or if in the previous course of business between the parties the defendant had made such payments, or if the master had stipulated for payment when he delivered the goods, the consignee would be liable {q). 445. Aji owner of goods entitled to general average contri- Cargo owner ° a ° may sue, out butions may sue the shipowner or other cargo owners for them (r) . has no lien. But his direct claim is personal only. He has no lien on the ship, nor upon the cargo, except in the manner indicated above in s. 442. Neither can he proceed for his claims in rem in the Court of Admiralty is) . That Court does not in the ordinary exercise of its jurisdiction deal with such claims; though it may do so in- cidentally {t). [q) Per Lord Tenterden-, Soaife v. North Star, 29 L. J., Ad. 73. Tobiu, 3 B. & Ad. 523 ; Hing'ston v. ,.-, n /-i i oo t t a j irr „,,„„„_' ° (t) Cargo ex Galam, 32 L. J., Ad. 97. Wendt, 1 Q. B. D. 367. In The Oquendo, 38 L. T. 151, an action (r) Strang v. Scott, 14 A. 0. 601; for damage, a counter-claim by the ship- Dobsou V. Wilson, 3 Camp. 480. A ownersforannnascertainedgeneralaver- lender on bottomry of the ship is not age contribution was allowed ; and was liable to make contribution, see The referred to the registrar and merchants EKza Lines, 61 Eed. Bep. 308. to ascertain the plaintiflE's proportion. (s) The Constancia, 10 Jur. 845 ; The Of. The Daring, L. R., 2 A. & E. 260. I have kindly been furnished with the toUowing pro formd specimen of a modern Average Statement, by Mr. F. C. Danson, of Liverpool, Average Adjuster, which wiU illustrate the manner in which the con- tributions are worked out : — The Ship A., while on a voyage from New York to Liverpool with a cargo of cotton, having encountered bad weather, sprang a leak and sustained serious damage, and for the general safety a portion of the cargo was jettisoned. Further, being on her beam ends during a squall, it became 494 THE VOYAGE. necessary, in order to lighten her, to cut away tlie foretopsail, •vctioli was thus lost. Suhsequently the vessel put into Queenstown, and she was then making water rapidly. The cargo was accord- ingly discharged and warehoused, and the Teesel was placed in dry dock and repaired. Afterwards the cargo was reloaded, and the vessel completed her voyage to Liverpool. Totals. Disbursements. General Average. Cargo. Freight. Ship and OTvners. £ s. d 5 C 15 C 3 13 C 5 5 C At Queenstown. Pilotage from sea to Queenstown Towage do. do. Noting and extending the protest Surveyors' fees — For damage survey on arrival. .£2 2 For do. do. indrydook 2 2 For survey on repairs 1 1 £ s. d. 5 15 3 33 6 2 2 40 12"o 7 4 8 £ *. • rf. 60 £ ». d. 40 6 16 £ s. d. 2 2 1 1 500 £5 5 Shipwrights' account for repairs to the vessel , ' 500 80 Stevedores' account — Discharging cargo and stow- ing same in warehouse ..£40 Keloading cargo 40 £80 50 Warehouse rent on cargo 12 Harbour dues on the vessel 5 15 10 17 Pilotage from Queenstown to sea Towage do. do New foretopsail, including clews, &c. (net) £10 17 Allow as general average.. £10 17 Less, one-third. . 3 12 4 3 12 4 £7 4 8 701 15 6 35 1 9 Ship's agent- Commission on advances 5 per cent. , , {^aid by draft on Liverpool.) Jettison of cotton, viz. — ShippedA.B.500bls. weighing perinvoice Should de- liver in Li- verpool . .net lbs. 225,600 Delivered. .480 bis. weighing net 216,576 86 2 4 5 60 2 10 60 3 606 15 4 25 6 9 736 17 3 - 89 5 2 62 10 63 632 2 1 Short. . 20 Net lbs. 9,024 @6d. ..£225 12 Discount 3 7 8 £222 i i GENERAL AVERAGE. 495 Totals. £ s. d. 736 17 3 5 5 742 2 3 Disburaements. £ 3. d. Brought forward 222 4 4 freight — GroBS wt. 9,600 lbs. Less4p'ot. 384 9,216 @^f?.£19 4 Less interest, \\ p'ot. - 4 10 18 19 2 Landing charges .... 2 10 Brokerage, \ per cent. \ 1 1 -22 11 9 £199 12 7 Owners of ship — Freight on cargo jettisoned . Adjustment Apportionment of general average. Ship, value to con- tribute £5,000 pays £97 13 6 Freight, gross on cargo . delivered— £1,000 Made good 19 1,019 Leas — Wages & port charges . ■ £75 Charges per adjustment 63 — 138 Cargo — Value de- livered ..£10,000 Made good 200 881 pays 17 4 2 10,200 Less charges per adjustment . , 53 -10,147 pays 198 4 4 £16,028 £313 1 11 General Average. £ s. d. 89 5 2 199 12 7 18 19 2 5 5 313 1 11 Cargo. £ s. d. 52 10 198 4 4 Cargo .,£250 14 4 Freight. £ s. d. 63 17 4 2 Freight.. £80 4 2 Ship and Owners . . SMp and Owners. £ «. d. 532 2 1 97 13 5 £629 15 6 496 THE VOYAGE. SUMMARY. Balance. Owners of Cargo. Dr. Cr. Pay general average and cliarges on cargo, as atove. . £250 14 4 Eeceive amount made good in general average, as above 199 12 7 £51 1 9 £51 1 9 ■ Owners of Ship. Eeceive — Amount of disbursements paid by them, as above £736 17 3 Freight on cargo jettisoned 18 19 2 Pay general average on ship and charges to owners, as above 629 15 6 Pay general average and charges on freight, as above 80 4 2 709 19 8 — £45 16 9 Cost of adjustment — 5 5 £755 16 5 £51 19 £51 1 497 Paet III. THE DELIVERY. CHAPTER XIII. THE DISCHAEGE — ^WAEEHOUSIITG. SECT. Port, how determined 446 Charterer to name in reasonable time 447 ^Meaning of port 448 It must he physically safe — For the loaded ship 449 Not necessarily at once 450 It must be politioaUy safe 451 Effect of signing bills of lading for port named, though not safe . , , , 452 "So near thereto," &c. — Temporary obstacles , 463 The obstacle need not be physical, . nor permanent 454 Safety of ship the test 454a "At all times of tide" — " Always afloat" 455 May shipowner refuse to proceed when obstacle removed ? 456 Must owner lighten, if feasible ? . . 457 Effect of custom 458 The place of discharge 459 Charterer has the option 460 Mode of discharge follows practice of port 461 Generally consignee must take from ship — Shipowner generally dis- charged by delivery at ship's side — Sorting of cargo 462 Charterer to take from "alongside" — Inconsistent custom 463 Port bye-laws 464 Master not bound to notify arrival to consignee 465 LiabOity of consignee for landing expenses — Obligation to be ready — " Immediately " — Shipowner's right to discharge 466 Generally there must be personal delivery to consignee 467 C. — C. BEOT. Delivery complete according to custom of the port — Port regula- tions 468 Delivery must be to the right per- son — Delivery to holder of biU of lading 469 Delivery to another carrier to for- ward 470 Warehousing. Liability of shipowner where con- signee fails to take delivery . . . , 471 Shipowner liable as carrier for safety while he holds as such. . . . 472 Not after refusal to take delivery . , 473 Nor if consignee fails to appear for an unreasonable time 474 Merchant Shipping Act, 1894 — Warehousing — Stop for freight, &c. — ^Position of warehouseman . , 475 Shipowner may land under the Act though consignee not to blame — Must use the right fairly ,,.,., 476 Meaning of "ready to take de- livery" 477 Consignee must take the goods in a reasonable time though statutory notice not given 478 Shipowner may contract himself free of sect. 67 479 Must shipowner see that goods are rightly delivered after ware- housing f 480 He is not responsible for safety in warehouse 481 Position of warehouseman as to delivery 482 K K 498 THE DELIVERY. Sect. 446. Port, how detenmned. Charterer to name in reasonahle time. Meaning of port. 446. Wheke goods are shipped in a general ship, the port at which they are to be discharged is nearly always agreed upon beforehand, and named in the bill of lading. In charter parties the ultimate destination is very commonly left uncertain; the arrangement being either that it shall be named at the port of loading, in which case bills of lading are given for the port so named, or that the ship shall call at one of certain agreed ports of call, and there receive orders from the charterer as to the place of discharge. The charterer is thus enabled to direct the ship to the port which may turn out to be most suitable to himself, or to the purchasers of the cargo. 447. Where the charterer is to give orders for the port of dis- charge at the port of loading, he must name it without unreasonable delay. The ship ought not to be detained by an omission on his part in doing so. Having named a port he is not entitled after- wards to change the destination, if bills of lading given for that already named are outstanding {a). Where orders are to be given at a port of call, a time within which that must be done is sometimes stated in the charter party. If no time is fixed the charterer must give the order within a reasonable time after the vessel's arrival there. If improper delay occurs the charterer becomes liable in damages for .the ship's detention. It has been held that if the master receives no orders at the port of call he may, after waiting a reasonable time for them, act on his own judgment, and take the ship to any one of the ports of discharge permitted by the charter ; and that he is not bound to communicate with the charterer before doing so (J). But probably if he has reasonable opportunity he ought to notify his arrival at the port of call to the charterer, or his agent. In Stewart v. Eogerson (c) the charterer refused to name a dis- charging wharf under circumstances which raised the inference that he would not receive the cargo : it was held that the ship- owner was entitled to the freight to be earned, as damages for the breach of contract. 448. The charterer is to name a safe port for the discharge. Perhaps it is not possible to give an exact definition of what con- stitutes a "port" for loading or discharging; but that a place (fl) Davidson ». Grwynne, 12 East, 381. (J) Sieveking v. Maas, 26 L. J., Q. B. 275, 358. («) L. E., 6 0. P. 424. THE DISCHARGE. 499 may be a port, it seems that it should have somewhere for vessels Sect. 448. to lie safely, and a shore where goods may be safely landed ; also that there should be some conveniences for trade, such as wharves and warehouses ; and that it should be a place to which vessels are allowed to come by the government of the country {d). In regard to policies of insurance, it has been laid down that the words, " port or ports of loading," " must be taken to mean not merely those places which are technically called ports, but all places to which ships may be accustomed to resort for the purpose of taking in cargo" (c). In that case, the question arose as to Laguna de los Padres, a place on the coast of Buenos Ayres, where there was no artificial port, but merely a village, with a wooden jetty ; and the vessels calling there had to anchor about a quarter of a mile from the shore in the roadstead, where they were loaded by means of lighters and small craft. The roadstead is protected by natural headlands on either side, which form a kind of bay ; and the anchorage is good ; but the place is rather open to the east and north-east. There was a regular trade between it and Buenos Ayres. In the Queen's Bench it was held that it was a port of loading, to which the vessel was at liberty to go. But in the Exchequer Chamber (/) there was a difference of opinion on the point. In Cockey v. Atkinson [g] an open roadstead was held to be a port of loading within the policy. In The Alhambra(A), the question arose whether Lowestoft Roads formed part of the Port of Lowestoft. Orders had been given for the vessel to proceed to Lowestoft to discharge, but the master had refused to go, on the ground that that was not a safe port for his vessel. This was true of Lowestoft Harbour, but not of the Roads. Brett, L. J., said that the vessel should be ordered "to something which is known in seafaring language as a port," and he held that the order to go to Lowestoft meant Lowestoft Harbour. Cotton, L. J., said : " The Roads were not a part of the Port of Lowestoft, and when the charterer ordered the ship to go to Lowestoft, the charter party only authorizing the ship to be sent to a port, he must have meant to the Port of Lowestoft, and (rf) See Lord Hale's definition, cited {/) L. R., 6 Q. B. 584. Bac. Abr. ■' Prerogative," B. (3). \g) 2 B. & A. 460; and Sea Ins. Co. (e) Per Lush, J., in Harrower v. of Scotland v. Gavin, 4 BUgh, N. S. Hutchinson, L. B., 4 Q. B. 623, at 578. p. 534. [h] 6 P. D. 68. KK2 500 THE DELIVERY. It must he ptysioally For the loaded sliip Sect. 448. not to Lowestoft Eoads." But it was not decided that the ship might not have been ordered to Lowestoft Eoads (i). 449. The port must be one that is physically safe ; whether it is so is a question of fact for the jury, having regard to the particular vessel and the nature of the work to be done. In Smith v. Dart (A) the question arose whether Burriana, in Spain, was a " safe loading place " under a charter party for a cargo of oranges. It appeared that the place was much exposed but that many steamers were loaded there, lying in the roadstead ; and that they could do so in safety by using well-known precau-. tions, such as keeping their fixes alight, and, if necessary, running out to sea. The jury found that it was a safe loading place. Further, the port must be safe for the particular ship, laden as she is, during the time which will be occupied by her discharge. The charterer is not entitled to have the unloading done partly outside and partly inside the port ; therefore it must be one into which she can safely go and lie with all her cargo (/). And it seems to follow that it must also be one in which she may safely get to a usual discharging place with all her cargo and lie there. Usually the charter party requires that the vessel shall always lie afl.oat ; and where not expressed this would probably be implied, as a condition of safety, in the case of a large vessel. Where it is expressed, or implied, the port to be named must be one into which she can safely get witt her whole cargo, and discharge the whole cargo without touching the ground. In The Alhambra {m), the vessel was ordered to Lowestoft. Her draught was such that she could not lie in Lowestoft Harbour without taking the ground at low water unless the greater part of her cargo had been discharged. The charterers, however, offered to lighten her sufficiently in Lowestoft Eoads, which is a safe un- loading place outside the harbour. The master refused to go, and {k) 14 Q. B. D. 106. B The Alhambra, 6 P. D. 68. But of. HOlstrom*. Gribson, 8 Sess. Ca. (3rd), 263 ; Capper v. WaUaoe, 6 Q. B. D. 163. Where a loading port has to be named under u. charter for a fuU cargo, the charterer must name a place where a full cargo can be safely taken : Charpentler V. Dunn, 16 So. L. R. 726. («) 6 P. D. 68 ; reversing 3 P. D. 266. («) As to the extent of the port of discharge in this regard, see Caflarini v. Walker, Ir. E., 10 C. L. 260. As to the distinction between the commercial and the Custom House limits of a port, see HullDock Co. V. Browne, 2 B. & Ad. 43 ; Nicholson v. Williams, L. E., 6 Q. B. 632 ; Price v. Livingstone, 9 Q. B. D. 679 ; Garston Co. v. HicMe, 16 Q. B. D. 580 ; Hunter v. Northern Mar. Ins. Co., 13 A. C. 717. THE DISCHAEGE. 501 put into Harwich instead. It was held by the Court of Appeal, Sect. 449. reversing the judgment of Sir E. Phillimore, that Lowestoft was not a " safe port " within the meaning of the charter party ; and that evidence of a custom for vessels to unload in the Roads before going into the port could not make it such.' In Eeynolds v. Tomlinson (m) the ship was ordered to discharge at Q-loucester. She proceeded, but was found to be too deep to get beyond Shaorpness, at the entrance of the canal leading to Grloucester. The charterers required that she should lighten and proceed up the canal ; and they gave evidence of a custom for vessels bound to Gloucester to lighten at Sharpness. The master refused to go on, and discharged the whole cargo at Sharpness. It was found that Sharpness and Gloucester were in a commercial sense distinct ports. Held that Gloucester was not a safe port for the vessel ; and that the charterers had no claim for damages against the shipowners. 450. But, apart from express stipulation, the port named need Not rieoes- not be physically safe at the very time of the order being given, or of the vessel's arrival. A temporary obstacle does not make it unsafe. In Parker v. Winlo (o) the charter required the ship to proceed loaded with coals " to Plymouth not higher than Torpoint or New Passage, or so near thereunto as she may safely get and deliver," &c. On arrival off Plymouth she was ordered to Brunswick Wharf, which was lower down than the points named, and was a usual place for discharging coals. The vessel coidd not, however, reach it at neap tides, and, consequently, had to wait for some days. It was considered that the charterer was entitled to name that wharf. " If the place were not one of the regular places of dis- charge, or if it were so inconveniently situate as to prevent the vessel unloading except on a very few days in the year, then the charterer would not have had a right to point out such a place. The charter party, in effect, says to the shipowner, you shall go to Plymouth River and discharge at any place the freighter shall name not higher up than the specified limits ; then when such a place is named, the effect is the same as if the place had been named in the charter party itself. If so, then the shipowner («) (1896) 1 Q. B. 686. See also Oa. 360. TrigUa V. Smith's Timber Co., 1 Com. (o) 27 L. J,, Q. B. 49, 502 THE DELIVERY. Sect. 450. must take his oliance whether he get a good state of the water or not " (p). In Allen v. Ooltart (q), on the other hand, the ship was to pro- ceed to Liverpool, " to discharge in a dock as ordered on arriving, if sufficient ivater, or bo near thereunto as she may safely get, always afloat." Cave, J., held (that the words precluded the charterer from ordering her to a dock into which she could not enter on arrival, owing to the state of the tides at the time. The port 451. Further, the port must he politically safe at the time when poutioally it is named by the charterer. In Ogden v. Grraham (r) the ship ^* ®' was to proceed with a cargo " to a safe port in Chili (with leave to call at Valparaiso)." At Valparaiso she received orders to goto Carrisal Bajo, a port in the mining district of ChiU, which had at that time, in consequence of rebellion, been declared closed by the Chilian Grovernment. Any vessel discharging there without a permit would be liable to confiscation, and it was not known when a permit would be granted. By nature the port was safe. More- over, when the charter party was made, both the shipowner and the charterers were ignorant that the Covernment had closed any ports. The vessel lay at Valparaiso for thirty-eight days, until a permit was obtained, and her owner sued the charterers for the detention. Held that he was entitled to recover. Black- burn, J., said (s) : " In the absence of all authority bearing on the matter, I am of opinion that under the terms of a charter party like the present, the charterer is bound to name a place which, at the time he names it, is one into which the ship can get ; and that although the ship can physically get into it, as far as navigation and what may be called the natural incidents are concerned, yet if that would be at the certain risk of confiscation, then the place is not a safe port. If at the time the place had been named the port had been open, or if that particiilar port had been mentioned ia the contract itself, and the port had been found closed before the ship could enter, then the shipowner would have been saved from being obliged to go in by the clause of exception as to the restraint of princes and rulers ; but he would have had no right of action against the charterer for being prevented from earning the freight which he could not earn." {p) PerCrompton, J.,27L. J.,Q.B.63. (r) 31 L. J., Q. B. 26. (?) 11 Q. B. D. 782. (,) 31 L. J., Q. B. at p. 29. THE DISCHARGE. 503 But a mere probatility that the port named by the charterer Sect. 451. may he closed before the vessel will get there is not enough to render it unsafe. In The Teutonia (t) a German ship had called at Falmouth for orders, and was ordered to Dunkirk. There was at the time great danger that war would break out between Prance and Germany, and in that event (which in fact occurred) it would become illegal for the vessel to go to that port. • It was considered that until the war was actually declared, the consignee was entitled to require the master to proceed to Dunkirk (w) . In that case, the port of Dunkirk having become unsafe for the ship after the orders were given, she put into Dover, one of the other ports of discharge allowed by the contract. The question arose whether the consignees of the cargo could demand delivery there without paying the freight, on the ground that performance of the contract had become illegal and- impossible; and that it was therefore dissolved. It was held that they could not. 452. Where the orders for the port of discharge are given at the Effect of time of loading, and bills of lading are signed by the master of lading for making the goods deliverable at the port named, the shipowner t^^gh^ot' cannot afterwards object that it is not a safe port. ^^^s- Thus, in Capper v. Wallace (x), a safe port of discharge was to be ordered on signing bills of lading. Koogerpolder in Holland was named, a port to which the vessel could not get with her full cargo, and the bills of lading made the goods deliverable there. Lush, J., said : " The only effect which can be given to the bills of lading as between the parties is to preclude the plaiutiffs from objecting that Koogerpolder was not a safe port, and to bind the plaintiffs to the same extent and no further than if Koogerpolder had been named in the charter party as the port of discharge." But though' the shipowner cannot refuse to go to the port so named and accepted, he may still be entitled to claim damages in respect of losses which he may incur owing to the port not being a safe one. In this sense the parties are not in the same position as if the port had been named in the charter party. Moreover, if the charterer knew that the port ordered was not a safe port, and so not within the charter party, it would seem that the shipowner is not precluded, as against him, from refusing to let her go there. For the master had no authority to vary the charter (*) L. E., 3 A. & E. 394 ; L. R., 4 («) L. R., i P. C. at p. 181. P. 0. 171. {x) 5 Q. B. D. 163. 604 THE DELIVEEY, "So near thereto as can safely get." Temporary obstacles. Sect. 453. party by assenting to a port of diseliarge not witHn it (y) ; and though his assent, when acted upon, might preclude the shipowner from objecting, that would depend on his apparent authority to give that assent, and in the case supposed no such apparent authority would exist. There would be no belief on the charterer's part that the master's assent was given with authority. 453. The shipowner's obligation to bring the ship to the agreed place of discharge is generally qualified by. the words " or so near thereto as she can safely get." This is understood to relate to obstructions which permanently prevent the ship from reaching her destination, or which would delay her for an unreasonable time. Temporary obstacles, causing delays which may be regarded as contemplated incidents of the voyage, will not excuse the owner. He must wait until they are removed, and then proceed. Thus, if the ship is to go to a wharf in a tidal harbour which she can only reach at spring tides, the master cannot claim to be unloaded at a different place merely because upon arriving the tides are neap (s). In Metcalfe v. The Britannia Ironworks Co. (a), a cargo of rail- way iron had been shipped in a steam ship, under charter party, to be carried to Taganrog, on the Sea of Azof, or as near thereto as the ship might safely get and deliver the same afloat. She arrived at Kertch, at the entrance to the Sea of Azof, about 300 miles by sea from Taganrog, on the 17th December, 1873. The navigation of the Sea of Azof was then closed by ice, and would not under ordinary conditions be open until April, 1874. The cargo was discharged at Kertch, which was, under the circum- stances, as near to Taganrog as the ship could get. But the Courts held that the shipowner had not performed his contract, and was not entitled to freight. Lord Coleridge, C. J., in the Court of Appeal, said (6) : " It is not necessary to say more than that the obstruction was only tempo- rary, and is such as must be incident to every contract for a voyage to a frozen sea, and it cannot be said that in all these contracts the words ' at that time ' or ' then and there ' are to be inserted after the words ' as near thereto as the ship can safely get.' " 454. The obstacle, need not be of a physical kind. It may, for instance, arise from a refusal of those who control the access to the The ohstaole need not be physical, nor permanent. («/) Supra, s. 44. (z) Parker v. Winlo, 27 L. J., Q. B. 4g ; BaetifeU v. Lloyd, 31 h. J„ Ex. 413. {a) 1 Q. B. D. 613 ; 2 Q. B. D. 423. (i) 2 Q. B. D. at p. 426. THE DISCHARGE. 505 agreed place (c). Also, it need not be permanent. It is sufficient Sect. 464. if it cannot be overcome by the shipowner without such a delay as would be unreasonable, having regard to the objects of the adventure of both charterer and shipowner, and to the circum- stances which they may be supposed to have had in contempla- tion (d). In Nelson v. Dahl (c), the ship was to deliver her cargo at " London Surrey Commercial Docks, or as near thereto as she may safely get." Those docks were so fuE. when she arrived in the Thames that she could not be admitted into them for at least a month, and probably not for several months. It was held by the Court of Appeal and the House of Lords, overruling Jessel, M. E.., that her voyage was performed on bringing her to the dock entrance. Lord Blackburn said (e) : " The shipowner would, I think, be bound to go into the dock if he could do so by waiting a reasonable time, but not if he could only do so by waiting an unreasonable time. It is quite true that a question of ' reasonable or unreasonable ' must always be a question of more or less, and therefore of uncertainty, but that I think cannot be helped. I do not pretend to lay down any precise rules as to what is reasonable or what is not. I think the main elements to be considered are, what would be the effect on the object of the contract, and the damage to each party caused by the delay ; and if the result be to lead those who have to decide the question to think (to adopt the language of the Master of the EoUs) that it is absurd to suppose that two commercial men entering into a contract to charter a steamer to go to a dock, or as near thereto as she may safely get, should mean that she was to wait outside so long, they ought to find it unreasonable." And Lord "Watson said (/) : " Seeing that on the 4th of August, the authorities could not undertake, within a month, or any other given time, to admit The Euxine into the dock, and that even on the 23rd of August they were not in a position to give a more definite or satisfactory undertaking, it appears to me to be safe to conclude that the length 'of time for which The Euxine must have waited in (c) Nelson v. DaU, 12 Ch. D. 66S; 1 Cab. & EU. 276 ; Sohilizzi v. Derry, 6 A. 0. 38. 24 L. J., Q. B. 193 ; supra, s. 225. {d) Ibid. See per Brett, L. J., 12 Ch. («) 6 A. C. at p. 54. D. at p. 593. Cf . Castel v. Trechman, {/) 6 A. C. at p, 63, 506 THE DELIYERY. Sect. 454. the Port of London, in order to discharge in the Surrey Docks, would have been in excess of any delay which either the shipowner or the charterer, at the time of entering into the charter party, could reasonably have contemplated." Safety of 454a. This clause, "so near thereto as she can safely get," i%ip the test. .^ _^^^ ^^ ^g^^^g ^^ ^^g gg^f g^y q£ ^j^g gj^-p jierself , not to the safety of the cargo. In Nobel's Explosives Co. v. Jenkins {g),& ship carry- ing dynamite in 1894 to Yokohama in Japan, was calling at Hong Kong when war broke out between Japan and China. The master landed the dynamite at Hong Kong, and went on to Yokohama without it. Had he proceeded with the dynamite on board the ship would probably have been stopped and searched by Chinese cruisers. In that case the dynamite would have been confiscated ; and it was uncertain what course the captors would have taken with the ship and the rest of the cargo. Mathew, J., held that the shipowner was excused by the exceptions in the bill of lading from carrying on the dynamite, but that the ship was not, at Hong Kong, so near to Yokohama as she could safely get. " The contract was not to carry to the nearest place to which the goods could safely get; but to deliver the goods at Yokohama, or as near thereto as the vessel could safely get. The vessel did get to Yokohama, and the obligation to deliver the goods under the clause in question thereupon became complete. This ground of defence seems to me untenable " (/«). "At all times 455. Sometimes the clause is more stringent. In Horsley v. of tide " . . Price (j) the charter party provided that the ship should proceed to Sharpness, " or so near thereto as she may safely get, at all times of tide, and always afloat," and deliver the cargo. On arrival in the Severn she came to an anchor in King's Eoad, an open roadstead without any wharf ; that being the nearest place to Sharpness to which she could get at the then state of the tides. North, J., held that she had arrived at her destination, so that the lay days began to run. Always Words like " always afloat " may operate as a condition of the shipowner's obligation to carry the goods to the agreed desti- nation. A bill of lading required delivery to be " at the port of Sutton Bridge always afloat." On arrival in Yarmouth Eoads the (g) (1896) 2 Q. B. 326. (i) n Q. B. D, 244. And see Allen [h] (1896) 2 Q. B. p. 330. v. Coltart, 11 Q. B. D. 782. afloat."' THE DISCHARGE. ' 507 master found that it would be impossible for his vessel to discharge Sect. 455. the whole, or any suhstantial part, of her cargo at Sutton Bridge without taking the ground ; he therefore refused to go there, and discharged at King's Lynn, the nearest practicable place. Mathew, J., held that he was justified in doing so (Ic). 456. Ordinarily when the ship has failed to get to her desti- MaysHp- nation, but has arrived at the nearest safe place to it, within the to proceed meaniQg of the charter party, the merchant must take the cargo Amoved ? from alongside at that place, and must provide the necessary appliances for doing so there (l). But if the difficulty of reaching the destination were merely one of tides, which might be sur- mounted after a short delay, it may be that the shipowner would be held bound to go on to the agreed place for discharging when that became practicable ; even though, as in Horsley i). Price (m) , the particular charter might entitle him to claim that the lay days began before the ship got there. That case did not decide whether the shipowner was entitled to refuse to take his ship on to Sharpness when that became possible. The point did not arise. In fact, the shipowner offered to dis- charge some of the cargo at King's Eoad, so as to enable her to proceed to Sharpness, but the charterer refused to take it. What was decided was that the lay days began to run as soon as she had got as near as she could. 457. The question has several times been raised whether the Must owner shipowner is not bound to lighten the vessel, by discharging part fefsibS? of the cargo, when that is necessary in order to enable her to reach the agreed port. If such a discharge is feasible, and the charterer is ready to receive the cargo at the intermediate place, is the shipowner bound to lighten the vessel ? or allow her to be lightened ? or may he at once claim that he has finally arrived at his destination, relying on the clause " or so near thereto as she may safely get " ? As we have seen, iE the charterer is to name the port, he cannot require the owner to send his vessel to a port which she cannot enter without first lightening (w) : the port must be safe for the {k) Treglia v. Smitli's Timter Co., 1 Blackbiun in Dahl v. Nelson, 6 A. C. at Com. Ca. 360. p. 43. {I) Reynolds v. Tomlinson, (1896) 1 (m) U Q, B B 244 Q. B. 586 ; TregHa v. Smith's Timber Co., 1 Com. Ca. 360. See per Lord («) The Alhambra, 6 P. D. 68. 508 THE DELIVERY. Sect. 457. gjjjp ^j^jjg f^iiy loaded. But when the port of discharge has been agreed upon by the parties, or orders given for it have been accepted, the case may be different. In Hillstrom v. Gibson (o) the ship was ordered to Glasgow ; but her draught was too great to allow her to go up to Glasgow and lie there " afloat at all times of tide," as required by the charter party. The master proceeded, however, as far as the Tail of the bank, an open roadstead about twenty-two miles from Glasgow ; and having arrived there, he claimed to deliver the cargo at that place, as being the nearest to which he could safely get and lie afloat. The charterers offered to Ughten the ship, and they required the master to let that be done, and to proceed afterwards up to Glasgow, in order to deliver the rest of the cargo. Ultimately this was done; but the owners claimed demurrage, reckoning the lay days from the time of arriving at the Tail of the bank. It appears to have been con- ceded that they were not entitled to any demurrage if the master was bound to lighten and proceed. A majority of the Court of Session held that apart from any custom of the port he was bound to " consent to any moderate and reasonable lightening of the ship which would admit of going to Glasgow safely ; " and the discharge of about one-fifth of the whole cargo was considered reasonable. Delivery at the Tail of the bank " could not have been reasonably forced by the master upon the consignees ; " and the lightening was only a mode of enabling him to fulfil the contract. In Capper «. Wallace (p), Lush, J., delivering the judgment of the Court, said : "It cannot, we think, be laid down as an iu- flexible rule that when a ship has got as near to the port as she can get, and the only impediment to proceeding further is over- draught, the master is under all circumstances entitled to consider the voyage at an end. He is bound to use all reasonable means to reach the port. The words * as near thereto as she can safely get ' must receive a reasonable, and not a literal, application. The overdraught may be such, and the cargo so easily dealt with, as that the surplus may be removed, and the ship sufficiently lightened, without exposing her to extra risk, or the owner to any prejudice and without substantially breaking the continuity of the voyage ; and in such a case if the consignee is at hand to receive the surplus (o) 8 Sess. Ca. (3rd), 263 ; 22 L. T., N. S. 248. (p) 5.Q. B. D. 163, at p. 166. THE DISCHARGE. 509 cargo, and so relieve the overdraught, we are of opinion that it Sect. 457. would be the duty of the master to lighten the ship and proceed to the port. This is the principle laid down hy the Court of Session in the case of HiUstrom v. Gibson " {q). In this ease, however, one-third of the cargo would have had to be discharged to enable the vessel to get to Koogerpolder, the port named in the bill of lading. Moreover, the consignees were not at hand to receive ; the charterers refused to make any arrange- ment ; and no one appeared to take delivery. Under these circum- stances it was held that the master was entitled to consider the voyage as at an end, and to treat the place where she lay as the place of discharge. So that he was allowed to recover from the charterers the cost of lightering the cargo from that place up to Koogerpolder. 458. In Hayton v. Irwin (r), a vessel was to deliver at a safe Effect of port, " or so near thereto as she can safely get." She was ordered to Hamburg and proceeded thither; but her draught prevented her getting further up the river than Stade. The charterer refused to take delivery of any part of the cargo at Stade ; and, in answer to an action for the cost incurred in lightering up to Hamburg so much as was necessarily discharged, he alleged a custom of the port of Hamburg by which he was not bound to take delivery anywhere but at that place, and was not liable for any such ex- penses. It was held by the Court of Appeal, affirming Grrove, J., that the alleged custom was inconsistent with the contract ; for it required the ship to deliver at Hamburg whether she could get there or not. The charterer was bound to take delivery at Stade until the vessel was sufficiently lightened to enable her to proceed (s). [q] Mr. Scrntton, in Ms book oa to proceed up to that port when, after Charter-partiea {3rd), pp. 88 et seq., lightening, it had become safe for her expresses the view that this passage, and to do so. This also was the point dis- the case of Hillstrom v. Gibson, are not cussed'in Capper v. Wallace. They are reconcilablewithThe Alhambra, 6P. D. authorities on the effect of "so near 68. But in the Alhambra the question thereto as she can safely get ; ' ' not on was whether the shipowner was bound the meaning of "safe port." Cf. Key- to accept Lowestoft as a safe port, to nolds v. TomUnson, (1896) 1 Q. B. 586. which his ship might be ordered. In {r) 5 C. P. D. 130. Hillstromv. Gibson the shipowner had (s) Cf. Nielsen v. Wait, 14 Q. B. D. not taken up the same position, he had 516 ; 16 Q. B. D. 67 ; The AUiambra, 6 accepted Glasgow as the port of desti- P. D. 68, per Cotton, L. J., p. 74 ; nation, and the question was whether Reynolds v. Tomlinson, (1896) 1 Q. B, the charterer might not require the ship 586. 510 THE DELIVERY. Sect. 459. 459. The port of discliarge is generally a place of wide extent, The place of some parts of which only are suitahle for the discharge. In deter- discharge. j^^^i^g tj^e place and the mode of discharging, the shipowner must conform to the regulations and the ordinary practices of the place ; he is bound to perform his contract reasonably, and that is the reasonable manner of performing it (t). But this is subject to exception in special circumstances. The implied undertaking to go to the usual place may be impossible of performance, and if so, the shipowner is not bound by it. " It may be that if the shipowner had expressly agreed to go to the quay he must haye been held to a strict performance of what he had con- tracted to do ; but his express contract is only to deKver in the port of Havre, and what is a compliance with that obligation must depend on and vary with the existing state of things in the port " (m) . If the cargo consists of various goods, the obligation will gene- rally be satisfied by discharging at a place suitable and reasonably convenient for the consignees as a whole ; though it may not be the most usual place for dischargiQg some particular portion of the cargo (v) . Charterer has 460. Where there are several places in the port at which the the option. cargo may properly be discharged, the option, in the case of a general ship, lies with the shipowner ; unless the matter is controlled by a usage of the port (x). But where the ship is under charter, it has been held that the shipowner must obey the directions of the charterer, or of the assignees of the cargo, as to which discharging place to go to. A vessel loaded with a cargo of pit props, under charter party, was to be unloaded at Sunderland at the usual place of discharge, and according to the custom of the port for ships with similar cargoes. On her arrival at Sunderland the master, without waiting for instructions, took her into the South Dock ; but before any discharging began the assignees of the cargo ordered him to go into the Gill Dock and discharge there. They did not tender the expenses to which the master had been put. Both docks were proper places for discharging pit props. Sir E. Phillimore held that it was the duty of the master to obey the orders of the (t) As to when the lay days commence, (») The Maaootte, 51 Fed. Eep. 606 see Chap. XVII. (1892). Cf. The Port Adelaide, 38 Fed. («) Cargo ex Argos, L. E., 5 P. C. at Eep. 763 (1889). p. 160. Cf. Waugh V. Morris, L. E., 8 (») See The Brig Kttler, cited Ang. Q. B. 202. CaiT. B. 301 (n). THE DISCHARGE. 511 cargo owner; reserving to himself the right of recovering the Sect. 460. expenses which he had incurred {y). The charterer must, however, exercise the option thus implied in his favour in a reasonable manner. He is not entitled to cause needless delay by selecting a place which is occupied, when there are other places available, unless the contract expressly gives him that right (s). Where, however, an express right to select the discharging place is reserved to the charterer, the only limitation seems to be that he must select a place which is suitable, and which is free, or likely to be free within a reasonable time {a). Thus in Murphy v. Coffin (5), the charter party required the vessel to proceed to Dieppe and deliver the cargo of coals " alongside consignee's or railway wharf, of into lighters, or any vessel or wharf where she may safely deliver as ordered, cargo to be loaded and discharged in forty- eight running hours." Demurrage was to be payable at 10s. an hour. The ship arrived in the dock at Dieppe on the afternoon of July 1st, and was ordered by the charterers to discharge at the railway wharf. There were only five berths available for this purpose at that wharf, and none of them were vacant until the evening of July 2nd. It was contended on behalf of the shipowner that under those circmn- stances the ship ought to have been discharged by lighters ; but the Court considered that the charterers' option under the charter party entitled them to order her to the railway wharf, without paying for the delay (c). (y) The Felix, L. R., 2 A. & B. 273. the ship's position has to be done by the I am not aware that this mling has charterer, such as providing appliances been dissented from by judges of the for the discharge (i«/?-«, s. 618), a refusal High Court; but County Court judges of the shipowner to go to the place which have refused to follow it ; and it seems he has selected, might well be regarded to be contrary to Dr. Lushington's as unreasonable. Of. per Lord Esher opinion in The Norway, 12 L. T. 57, at in Nielsen u. Wait, 16 Q. B. D. at p. 61. It may well be doubted whether p. 69. the contract leaves the choice of the dis- (z) gee per Lord Blackburn, Dahl v. charging place with the charterer Nelson, 6 A. C. 38, p. 44 ; Pyman v. where no express option is given to Dreyfus^ 24 Q. B. D. 152. him, as is frequently done. Eor dis- ^ ^^ rj,^^^^^^ ^^_ ^^ ^_ ^ charging and dehvering are the ship- ^^ggjj ^ ^ ^ g^^ . ^^ ^^4 (b), owner s business; and, subject to express „„„ ' conditions, he performs his undertaking by deUvering at the agreed port m a ,(*' ^^ Q. B. D. 87 ; Parker v. Winlo, reasonable manner ; and that is generally ' ■ •> ^- ■ *''■ satisfied by a delivery in one of the usual (c) But see Pyman v. Dreyfus, 24 Q. places for such a discharge. Where, B. D. 152 ; DaU'orso v. Mason, 3 Sess. however, something which depends upon Ca. (4th), 419. 512 THE DELIVERY. Sect. 460. Mode of discharge follows prac- tice of port. In Thorsen v. McDowall {d), a timber cargo was to be unloaded as customary, at bucL. wharf or dock as the charterers might direct. They ordered her to the Queen's Dock (Glasgow) ; but the harbour master refused to let her enter on the ground of danger to other traffic by the discharge of the logs through the bow ports, and he directed her to Yorkhill, where the logs had to be put into the water and rafted. Held that the order to the Queen's Dock was of no avail, and that there was no breach of the charter party. Grenerally the whole discharge takes place at one spot; and probably the charterer has no right to require delivery at several places unless that has been stipulated for. But if there is a settled custom at the port for vessels to discharge partly at one place and partly at another, that will bind the shipowner (e). 461. The manner of discharging also is, in the absence of special terms, to be determined by reference to the regulations and practices of the port of discharge (/) . These will show whether the goods should be discharged in the open water, or at a wharf, or in dock ; and whether on to the wharf or quay, or into a hulk or lighters alongside the ship. If more than one of these methods is commonly adopted, and is suitable for the particular ship and cargo, it would seem that the shipowner satisfies his contract by delivering according to any one of them he may choose. But if one mode of discharge involves charges upon the consignee which another suitable and convenient mode avoids, the shipowner cannot, contrary to the consignee's demand, insist upon adopting the former. Thus, if the consignee requires, and is ready to take delivery into lighters without the goods fii'st being landed on the wharf at which the vessel is lying, the shipowner will be answer- able if he lands them on to the wharf and so makes them liable to wharfage charges {g). Nor can the master, where delivery into lighters is properly demanded, require a contribution from the con- signee to the wharfage rates incurred by the ship {h). These matters may, however, be regulated by usages of the port. Thus, in Marzetti v. Smith («'), it was proved that there was a weU- [d) 19 Seas. Ca. (4tb), 743. («) Per Cotton, L. J., The Alhamhra, 6 P. D. at p. 74. Of. M'lntosh v. Sin- clair, Ir. R., 11 01. 456 ; Nielsen v. Wait, 14 Q. B. D. 516 ; 16 Q. B. D. 67. [f) As to the customs regulations in the United Kingdom, see Customs Laws Consolidation Act, 1876 (39 & 40 Vict, c. 36), ss. 39—99. is) Syeds v. Hay, 4 T. R. 260 ; Grey V. Butler's Wharf, 3 Com. Ca. 67. (h) Bishop V. Ware, 3 Camp. 360. (i) 49 L. T. 680. THE DISCHARGE. 513 known custom for steamships -witli general cargoes coming into the geot. 461. port of London and using the docks (the Victoria Docks) to dis- charge the goods on the quay, and thence into lighters, and not to discharge them directly into lighters ; and this was held to he binding on a consignee. So that, although he had demanded delivery iuto lighters on the water side of the ship, he could hot recover from the shipowners the landing and other charges which he had to pay to the London and St. Katharine's Dock Company in consequence of the goods being landed on to the quay (k). And it was also held that this custom was not inconsistent with the bill of lading, which provided that the goods should be delivered " from the ship's tackles." 462. Grenerally speaking, the consignee of the goods or the Generally charterer is bound to remove the goods from the ship's side, and consignee to provide for that purpose a proper number of men and suitable ^^J^f^^ appliances of the kind ordinarily used at the port, having regard ship's side, to the manner in which the ship is to be discharged (l). The shipowner discharges the cargo out of the ship, and he must supply the needful men and appliances for getting the goods out of the holds, and delivering them upon the deck, or at the ship's side. This work is frequently done by the crew of the ship ; and where that is usual the number of men to be employed should be determined, it would seem, by reference to the proper working number of the crew of the ship in question (m) ; unless the time in which it is agTced that the work shall be done requires that more men be employed («). In Petersen v. Freebody (o), the cargo was of spars and poles, which were to be discharged in the Surrey Commercial Docks, London, "overside .... into lighters." It was contended on behalf of the consignees that the ship's crew were bound to put the spars and poles completely into the lighter, and must, if necessary for that purpose, put some of their own men into the lighter. That contention was held to be mistaken. Lord Esher said, " The (A) SeealBoPetroooohino«i.Bott,L. E., in Dahl v. Nelson, 6 A. C. at p. 43. Of. 9 0. P. 355, post, a. 468. In The Clan Postlethwaite v. Freeland, 5 A. C. 595. Maodonald, 8 P. D. 178, a similar cua- See infra, ss. 618, 619. torn was set np in relation to tte East {mj See per Blaoktum, J., in Ford v. and West India Docks, but was not Cotesworth, L. E., 4 Q. B. p. 534. estabHshed. («) See Hansen v. Donaldson, 1 Sesa. {I) Wright V. New Zealand Shipping Ca. (4th) 1066, infra, s. 612. Co., 4 Ex. D. 165 ; per Lord Blaokhum (o) (1896), 2 Q. B. 294. C. — C. L L 614 THE DELIVERY. Sect. 462. shipowner has performed the principal part of his obligation when he has put the goods over the rail of his ship ; hut I think he must do something more— he must put the goods in such a position that the consignee can take delivery of them. He must put them so far over the side as that the consignee can begin to act upon them ; but the moment the goods are put withia the reach of the consignee he must take part in the operation" {p). Sorting of Also the shipowner must separate the goods so as to give '""'^°' delivery to the several consignees. But where goods have been shipped in bulk, as one parcel, the consignee cannot require the shipowner to separate them. Thus, the consignee of a parcel for which a bill of lading has been given describing it as " bones," but which in part consisted of horns, hoofs, and piths, could not require the shipowner to separate these from the bones before delivering (^). Shipowner Generally speaking, the shipowner's obligation is performed by disoiiarged by a delivery at the ship's side, or, at most, on the quay {r). If the sMp'-sTide. consignee sends lighters for the goods, a delivery into the lighters, to his agents or servants, as a rule terminates the shipowner's responsibility. In Catley v. Wintringham (s), however, decided in 1792, it appeared that the custom in the Eiver Thames was for the lightermen to leave the lighters alongside the ship until they were completely loaded, and that by the custom the master was bound to guard the goods which had been placed in the lighters until the loading was complete. It was held that this custom was binding upon the master, although he had told the lightermen that he had not sufficient men on board to take care of the goods on the lighters. But in Eobinson v. Turpin {t) it was held that the custom did not bind the master to take care of the lighters after they had been fully loaded. (p) Per Lord Esher, (1895) 2 Q. B. at p. 297. Of. Aktieselkab Helios v. Ekman, (1897) 2 Q. B. 83, where it was found that a custom existed in the port of London for the ship to discharge long lengths of timber into the lighters, with- out assistance from the consignees ; though whether the custom required the ship to stow the timber in the lighters was left undetermined. See also Ste- phens V. "Wintringham, 3 Com. Ca. 169 ; Brenda S.S. Co. v. Green, (1900) 1 Q. B. 518. [q) Claoevioh v. Hutoheson, 25 So. L. E. 11. Cf. The Norway, 13 L. T. 50. (c) Per BuUer, J., Hyde v. Trent, &o. NaT. Co., 6 T. B,. p. 397. («) 1 Peake, N. P. C. 202. if) Peake, N. P. C. 203, n. Cf. Strong V. NataUy, 1 B. & P. N. E. 16 ; Hurry V. Royal Exchange Assurance Co., 2 B. & P. 430. As to responsibility for the seaworthiness of lighters used in dis- charging, see Lane v. Nixon, L. R., 1 0. P. 412. THE DISCHAEGE. '^15 It seems douttful, however, whether a shipowner would be Sect. 462. bound by a custom of the port which would impose special duties on him, not ordinarily implied into the contract, unless it could be shown that he made the contract with notice of the custom. For example, he probably could not be required to employ extra hands, in addition to his proper crew, in order to get the cargo out of the ship more quickly ; nor to deliver the goods at places beyond the quay at which he is discharging (u). 463. Charters often stipulate that the cargo shall be taken from Charterer to "alongside" by the merchant. The meaning of this generally is "alongside." that the merchant is to take the goods as they are passed out of the ship, either on to the quay, or into lighters {x) ; and in the latter ease it requires the merchant to provide the lighters, whatever the custom may be (y). If the shipowner is put to expense in consequence of a failure of the merchant to supply the men and appliances to take delivery in this manner, he is entitled to recover it from the charterer. In Holman v. Wade (s) a cargo of timber was to be delivered at Inconsistent Hull, and to be " taken from alongside the ship at the merchant's risk and expense as customary." The cargo had to be stacked on the quay ; and as the merchant refused to stack it, the master did so, and sued for the expense. A custom of the port of Hull was set up that the ship should bear the expense of stacking the timber on the quay in such a case ; but the Court of Appeal upheld Manisty, J., in excluding evidence of the custom as being incon- sistent with the contract. In The Nifa (a) the cargo was to be " taken from alongside the ship at merchant's risk and expense, where she can lie always afloat and safe," and was to be discharged as fast as steamers could deliver, " and according to the custom of the port." The ship was moored fifteen feet from the quay, owing to want of water, and was discharged by means of a stage. In an action by the shipowners for the expenses of landing and stacking the cargo, the County Court Judge admitted evidence of a custom at the port requiring the ship to deliver on to the quay. On appeal this was held to («) See supra, ss. 197—199. (1897) 2 Q. B. 83. (x) See Pletolier v. GriUesple, 3 Bing. (i/) But cf. Sorutton v. Childs, 36 635 ; Trindade v. Levy, 2 P. & F. 441. L. T. 212. Petersen v. Freebody, (1895) 2 Q. B. («) "Times," May 11th, 1877. 294 ; AMieselkab HeUos v. Ekman, (a) (1892) P. 411. L l2 516 THE DELIVEEY. Sect. 463. have been wrong. The reference in the charter to the custom of the port relates to the manner and place of discharge ; and did not alter the obligation to take from alongside (b). Where the customary manner of discharge at the port requires that the cargo be put out by those working on the ship, say into lighters or on to a quay, it has been held that the word " alongside " may mean, not actually at the ship's side, but iu a lighter lying alongside her (c), or at the nearest available spot of the quay at which she is lying [d). On the other hand, a clause that the cargo was "to be taken from alongside at the charterer's risk and expense, any custom of the port to the contrary notwithstanding," was held to exclude this extension of the meaning (e). Port by-laws. 464. In most British ports of importance the harbour and docks, &c., are under the control of some corporation or company, either managing them under a public trust, or carrying them on as a commercial undertaking. G-enerally the docks have been con- structed under private Acts of Parliament, which define the powers of those who manage them; and most of these Acts incorporate the Harbours, Docks and Piers Clauses Act, 1847 (/), or parts of it. By that Act, and sometimes by the private Act, powers are given to make by-laws for governing the docks, and for regulatiag the loading and discharge of goods. These enactments and by-laws form special conditions under which the discharge of cargoes must take place. In Dick V. Badart(9') an important question arose as to the scope of the by-law powers given by sect. 83 of the general Act. The Surrey Commercial Dock Company had prescribed by by-law that no lumpers should work on board any vessel in their docks, or on their wharves or premises, but such as were authorized by the company. Cave, J., held that this was not valid ; on the gi-ound that by sect. 33 of the Act the harbour, docks, and piers were to be open to all persons for the shipping and unshipping of goods, on payment of the rates made payable by that and by the special (J) Cf. Seager v. New York, &o. S.S. (1897), 2 Q. B. 83. Co. 86 I'ed. Eep. 324, 880, (1893) where {d) Stephens v. Wintrmgham, 3 Com. the ship by custom had to bear the ex- Ca. 169. peuse of piling on the quay, although («) Brenda S.S. Co. v. Green, (1900) 1 the delivery was to be "alongside and Q. B. 618. within reach of the ship's tackles." (/) 10 & u Vict. c. 27. («) Aktieselkab Helios v. Ekman, {g) 10 Q. B. D. 387. THE DISCHARGE. 517 Act, and subject to their other provisions. " To my mind that Sect. 464. provision must include not only shipowners and owners of goods, but also their respective servants, whether usually employed otherwise than in the docks or not." 465. The master is not bound to notify the arrival of the ship Master not to the consignees of the cargo ; they are bound to watch for it, notify arrival and to take notice of it without communication. This has been ° °°'^s^^^' repeatedly held to be the rule with regard to consignees and indorsees of goods shipped in general ships {h) ; and presumably the same is true where the shipments have been under a charter party (»■). "It is the duty of the consignee, apart from special custom or contract, to use due and reasonable diligence to discover when the ship arrives with his goods on board " {k). But the master ought to enter the ship's name at the Custom House, or make such other pubhe notification of her arrival as is usual at the port. And if he does this in such a way as to mislead the consignees, he may be precluded from complaining of any default on their part in taking deKvery, if they have not, in fact, had notice of the arrival (1). 466. If the consignee of the goods does not appear to claim and Liability of receive them, the master may land and warehouse them, or take landing such other steps as may be proper for their protection. And the ®^P®"^®^- consignee will be liable for any wharfage or other expenses properly incurred in doing so (m). Where goods were seized by the Excise in consequence of a misdescription of the goods in the entry made by the shipowner, which happened owing to the consignee's absence, and to want of proper description in the bill of lading, it was held that the ship- owner was not liable to the consignee for the loss («). Where a time is aRowed for the discharge of the goods by the Consignee's bill of lading or charter party, the master ought to wait for the be ready." consignee until that time has elapsed ; but where no time is men- (A) Harman v. Clarke, 4 Camp. 159 ; (m) Houlder ■i>. General Steam Nav. Harman ». Mant, ib. 161 ; Houlder v. Co., 3 F. & F. 170 ; Mors le Blanch v. General Steam Kav. Co., 3 F. & F. 170. Wilson, L. E., 8 C. P. 227 ; per WiUes, (i) See per Brett, L. J., Nelson t;. Dahl, ^■' M:eyerstein v. Barber, L. R., 2 C. P. 12 Ch. D. at p. 583. P- ^*- ^- Stewart v. Eogerson, L. E., 6 C. P. 424. London custom as to grain (A) Per Cookbum, C. J., 3 F. & F. cargoes, see Aste v. Stumore, 1 Cab. & P- ^^*- EU. 319. M. S. Act, 1862, mfra, s. 475. (2) See Harman v. Clarke, 4 Camp. («) Shirwell v. Shaplooh, 2 Cbitty, 159. 397, 518 THE DELIVERY. " Imme- diately." Shipowner's right to discharge. Sect. 466. tioned lie is only bound to wait a reasonable time, having regard to the usages of the port. If the bill of lading requires the con- signee to take delivery '• immediately " (o) or " directly " {p) the vessel is ready to discharge, he must be ready to do so promptly, without any further delay than is reasonably required for the act of discharge. Words of this kind are not construed with absolute strictness, but they exclude excuses of delay based on matters out- side the act of discharge itself. In Wilson v. London, &c. Steam Nav. Co. [q), sixty-five pipes of lemon juice were shipped under two bills of lading, which provided that the consignee was to be ready to receive the goods " simul- taneously with the ship being ready to unload " them, or any part thereof, and that in default the master might enter and land them at the risk and expense of the consignee after they left the deck of the ship. The consignees were not ready to receive the lemon juice when it was reached in the course of discharging the ship ; but after fifteen pipes of it had been landed, they were ready with men and lighters to take the remainder. The defendants refused to deliver them, and landed the other fifty pipes ; thus putting the plaintiffs to unnecessary expenses, for which they sued. It was held that they were entitled to recover ; for the biR of lading did not mean that a default of the consignee in being ready to receive a part of the goods should entitle the shipowner to unload the whole upon the wharf at which he was discharging. Had the position of the shipowner been prejudiced by the default the case might have been different. " If it would have caused expense or loss of time to the shipowner to change the mode of delivery, it might well have been contended that authority had been given to him to land the goods on the wharf by the default of the consignee in not being ready at first to receive his goods ; and that such authority having been once acted upon, and expense incurred thereby, it could not be revoked, and that the shipowner was therefore entitled to land the remainder of the goods " (r). Where the bill of lading contained the clause known as the London clause entitling the shipowner " to land these goods on the quays of the dock where the steamer discharges immediately on her arrival," it was held to override a custom of the port which Alexiadi 310. (?) L. R., 1 C. P. 61. (>•) Per Willes, J., at p. 68. (o) See per Cookbum, C. J., V. Robinson, 2 P. & F. 679. ij>) Duncan v. Topham, 18 L. J., C. P. THE DISCHAEGE. 519 would have entitled the consignee to have delivery overside into Sect. 466. lighters (s). A clause enabling the shipowner to discharge in the consignee's absence, and at his risk and expense, is for the shipowner's pro- tection. He is not bound to exercise the power. And his omission to do so is no answer to a claim for detention at the port ; although a lien be given by the charter party for any charges which are to be borne by the consignee {t). 467. The undertaking of the shipowner by his contract is, that Generally he will deliver the goods to certain indicated persons. We have to personal consider whether he can, under any circumstances, discharge that oon^mee obligation in any way short of finding out those persons, and delivering the' goods to them. Prima facie, no delivery can suffice except a personal delivery to the agreed consignee, or his agents (t<) ; until that has been made, the contract remains unperformed. In Gatliffe ». Bourne (x), goods were deliverable under a bill of lading at London to G-atliffe or his assigns. They were landed at Fenning's Wharf during working hours on the day after arrival, and that wharf was a usual place for discharging ; but no notice had been given to the consignees, and they were not there to receive the goods. On the same night the goods were accidentally destroyed by fire. In an action by GratlifEe, the question arose whether the delivery at the wharf was sufficient to discharge the shipowner, and all the Courts held that it was incomplete, and that the shipowner was liable for the loss. " The contract was to deliver to the consignee in the port of London ; instead of a delivery to the consignee, the goods were placed on Fenning's Wharf " (y). -408. But personal delivery may sometimes be excused by an Delivery established course of business at the port. A delivery to certain aorar^g to other particular persons may, by virtue of the custom, be equiva- ?^^*°™,°* lent to a delivery to the consignee himself. In GatHfEe v. Bourne (2), the question was left to the jury whether the delivery at Fenning's Wharf was a sufficient delivery («) Borrowman v. Wilson, 7 T. L. E.Marie, 32 L. T. 4 35 ; 2 Asp. N. S. 5U. 416. (x) 4 Bing. N. C. 314 ; in Ex. Ch., 3 {t) Hick V. Eodocanaohi, (1891) 2 M. & G. 643 ; in H. L., 7 M. & G. 850. Q. B. 626. (y) Per Lord Lyndhurst, 7 M. & G. (m) Howards. Shepherd, per Maule, J., p. 865. 19 L. J., C. P. p. 256 ; The Emilien (z) Supra. 520 THE DELIVEEY. Sect. 468. according to the usage of the port of London. They found that it was not. So, in Wardell ®. Mourillyan (a), Lord Kenyon left it to the jury to say what the custom was as to delivery. There a hoyman, who had received an anchor to he delivered to certain consignees, had delivered it to the wharfingers at the quay to which his vessel regularly plied. He was held responsihle for it. On the other hand, in Petrocoohino v. Bott (b), sixty-nine bales of hides had been shipped under a biU of lading, by which they were to be delivered "from the ship's deck, where the ship's responsibility shall cease, at the aforesaid port of London .... unto Messrs. Petroeochino Brothers, or his or their assigns, on payment of freight. The goods to be discharged from the ship as soon as she is ready to unload into hulk, lazaretto, or hired lighters if necessary, and to be landed by the master and agent at the risk and expense of the owner of the goods." On the ship's arrival at London she was taken to the Victoria Docks, and notice was given to the consignees of the hides that she was ready to discharge. The hides were at once unloaded and placed on the quay by servants of the Dock Company, the consignees not being present, and they were afterwards forwarded in lighters sent for them by the consignees. One of the bales landed, however, was in some way not sent forward in the lighters, and was lost. It was proved that the usage as to delivery at the Victoria Docks was as follows : — When a steamer arrives in the dock, notice is given to the consignees of the goods on board, and the goods are landed from the ship on to the quay by the servants of the Dock Company, the shipowner not interfering. If the consignees apply for the goods within twenty-four hours, they get them from the quay free of charge- not from the ship into the lighters, but from the quay. The goods are put into the lighters by the servants of the Dock Company, and the shipowner pays for this. If the consignees do not apply for the goods within twenty-four hours, they are warehoused by the Dock Company, and the consignees pay for the warehousing. It was held that a delivery according to this customary practice satisfied the shipowner's tmdertaking to deKver at the port, unless the contract was inconsistent with it ; and that, according to the true construction of the bill of lading, the shipowner ceased to be («) 2 Esp. 693, (}) L. R.^ 9 q p_ 355_ THE DISCHARGE. 521 responsilDle from the moment he cleared away the goods from the Sect. 468. deck (c). Goods were delivered, at Dundee, to harhour porters, whom the Port regula- consignee was ohliged by the harhour regulations to employ and pay for the purpose of receiving. This was held to he a delivery to the consignee ; so that the shipowners were not responsible for subsequent damage to the goods by rain while on the quay (d). In The Emilien Marie (e), it was held that delivery of the whole cargo to a master-porter at Liverpool, in accordance with the regulations of the port, did not discharge the shipowner from liability for short delivery to a bill of lading holder, the cargo having been insufficient to satisfy all the bills of lading. 469. Unless the shipowner is in some way excused by statute (/), Delivery must or custom, from the responsibility of making the actual delivery, rigM person, he must deliver the goods to the right person (g) : to the person who is entitled to them as owner, or as holder of the bill of lading. Moreover he must deliver the right goods. If bills of lading have been given for different portions of goods shipped under one mark, the shipowner must appropriate them properly to the several bills of lading. In Bradley v. Dunipace (/*), 1,676 bags of meal were shipped together, all marked alike ; but some of the bags weighed 12 stones each, and the others only 8. A bill of lading was given for 467 of them, described as " 467 bags of rye meal, or bran, gross 35 tons, 9 ewt., under the subjoined marks." The bags delivered to the holder of this bill of lading were too many of them of the smaller size to make up the gross weight of 35 tons, 9 cwt. The shipowner was held liable for not delivering the right bags. We shall discuss in the next chapter the effect of the bill of lading, and of dealings with it, in giving a right to the goods, or to the possession of them. Here it is enough to note that where there are conflicting claims the shipowner must not deliver to any but the person rightfully entitled to the goods, otherwise he may be answerable for the whole value of the goods («). His proper course is to interplead {k). («) As to the practice and rule in the (/) See infra, s. 480. XJ. S., see Aug. Carr. ss. 310, 311 ; and (?) See McKean v. Mclver, 18 L. T. Cope V. CordoTa, 1 Eawle, 203, there 410 ; on special case, L. E., 6 Ex. 36. cited. (h) 31 L. J., Ex. 210; 32L. J.,Ex. 22. ( i. tt n -d r\ n t ,«,. , , T, „ ,' „ T m. W ^ Bomb. H. C. Kep., 0. 0. J. 186. (c) Per Cockbum, U. J., Chapman v. G. W. EaU. Co., 5 Q. B. D. 278, p. 282. (/) «7 & 58 Viot. i;. 60. 526 THE DELIVERY. Sect. 475^ Power of sMpowner to enter and land goods on default by owner of goods. Landing for assortment ; consignee ready. Landing after entry by con- signee ; notice to be given. ship from foreign parts into the United Kingdom fails to make entry thereof, or having made entry thereof to land the same or take delivery thereof {g), and to prooeedtherewith with,' all convenient speed, by the times severally hereinafter mentioned, the shipowner may make entry of and land or unship the goods at the following times : — "(a) If a time for the delivery of the goods is expressed in the charter party, bill of lading, or agreement, then at any time after the time so expressed : "(b) If no time for the delivery of the goods is expressed in the charter party, bill of lading, or agreement, then at any time after the expiration of seventy-two hours, exclusive of a Sunday or holiday, from the time of the report of the ship. "(2) "Where a shipowner lands goods in pursuance of this section, he shall place them, or cause them to be placed, " (a) If any wharf or warehouse is named in the charter party, bill of lading, or agreement, as the wharf or warehouse where the goods are to be placed, and if they can be conveniently there received, on that wharf or in that warehouse ; and " (b) In any other case on some wharf or in some warehouse on or in which goods of a like nature are usually placed ; the wharf or warehouse being, if the goods are dutiable, a wharf or warehouse duly approved by the Commissioners of Customs for the landing of dutiable goods. " (3) If at any time before the goods are landed or unshipped, the owner of the goods is ready and offers to land or take delivery of the same, he shall be allowed to do so (A), and his entry shall in that case be preferred to any entry which may have been made by the shipowner. " (4) If any goods are, for the purpose of convenience in assorting the same, landed at the wharf where the ship is discharged, and the owner of the goods at the time of that landing has made entry, and is ready and ofiers to take delivery thereof, and to convey the same to some other wharf or warehouse, the goods shall be assorted at landing, and shall, if demanded, be delivered to the owner thereof within twenty-four hours after assortment ; and the expense of and consequent on that landing and assortment shall be borne by the shipowner. "(5) If at any time before the goods are landed or unshipped the owner thereof has made entry for the landing and warehousing thereof at any particular wharf or warehouse other than that at which the ship is discharging, and has offered and been ready to take delivery thereof («), and the shipowner has failed to make that delivery, and has also failed at the time of that offer to give the owner of the goods (g) Miebrodt v. Fitzsimon, The Energie, L. B., 6 P. C. 306. (A) Where part already landed, see Wilson V. London, &c. Nav. Co., L.B., 1 0. P. 61. This does not entitle him to delivery in a manner opposed to the custom of the port : Marzetti v. Smith, 49 L. T. 580. («) Beresford v. Montgomerie, 34 L. J., 0. P. 41 ; Wilson v. London, &n. Co., L. R., 1 C. P. 61. WAREHOUSING. 527 correct information of the time at which the goods can be delivered {k), Sect. 475. then the shipowner shall, before landing or unshipping the goods in pursuance of this section, give to the owner of the goods or of such wharf or warehouse as last aforesaid twenty-four hours' notice in writing of his readiness to deliver the goods (1), and shall, if he lands or unships the same without that notice, do so at his own risk and expense" (m). Sect. 494. " If at the time when any goods are landed from any ship Lien for and placed in the custody of any person as a wharfinger or warehouse- i J- ™° mds man, the shipowner gives to the wharfinger or warehouseman notice in writing that the goods are to remain subject to a lien for freight or other charges payable to the shipowner to an amount to be mentioned in the notice (»), the goods so landed shall, in the hands of the wharfinger or warehouseman, continue subject to the same lien, if any, for such charges as they were subject to before the landing thereof ; and the wharfinger or warehouseman receiving those goods shall retain them until the lien is discharged as hereinafter mentioned, and shall, if he fail so to do, make good to the shipowner any loss thereby occasioned to him." Sect. 495. " The said Uen for freight and other charges shall be t)isoharge of discharged — ■'^®"- " (1) Upon the production to the wharfinger or warehouseman of a receipt for the amount claimed as due, and delivery to the wharfinger or warehouseman of a copy thereof or of a release of freight from the shipowner ; and "(2) Upon the deposit by the owner of the goods with the wharfinger or warehouseman of a sum of money equal in amount to the sum claimed as aforesaid by the shipowner ; but in the latter ease the lien shall be discharged without prejudice to any other remedy which the shipowner may have for the recovery of the freight." Sect. 496. "(1) When a deposit as aforesaid is made with the Provisions as wharfinger or warehouseman, the person making the same may within *° deposits by- fifteen days after making it give to the wharfinger or warehouseman goods, notice in writing to retain it, stating in the notice the sums, if any, which he admits to be payable to the shipowner, or, as the case may be, that he does not admit any sum to be so payable, but if no such notice is given, the wharfinger or warehouseman may, at the expira- {k) Beresford v. Montgomerie, supra. oyerridden where the contract entitles {I) Not where the landing is under the shipowner to land the goods on the sub-s. i : The Clan Macdonald, 8 P. D. quays of the dock where the steamer dis- 178. charges, immediately on arrival : Bor- {mj The consignee must still take the rowman v. WUson, 7 T. L. R. 416. goods within a reasonable time after («) Effect of stating an excessive notice that he can have them : The Clan amount : Miebrodt v. Ktzsimon, The Macdonald, stipra. These provisions are Energie, L. E., 6 P. C. 306. 528 . THE DELIVERY, Sect. 475. tion of tlie fifteen days, pay the sum deposited over to the sMp- owner. " (2) If a notice is given as aforesaid, the wharfinger or -warehouse- man shall immediately apprize the shipowner of it, and shall pay or tender to him out of the sum deposited the- sum, if any, admitted by the notice to be payable, and shall retain tha balance, or, if no sum is admitted to be payable, the whole of the sum deposited, for thirty days from the date of the notice. " (3) At the expiration of those thirty days, unless legal proceed- ings have in the meantime been instituted by the shipowner against the owner (o) of the goods to recover the said balance or sum, or other- wise for the settlement of any disputes which may have arisen between them concerning the freight or other charges as aforesaid, and notice in writing of those proceedings has been served on the wharfinger or warehouseman, the wharfinger or warehouseman shall pay the balance or sum to the owner of the goods. "(4) A wharfinger or warehouseman shall by any payment under this section be discharged from ail liability in respect thereof." Warehouse- Sect. 497. "(1) If the Hen is not discharged, and no deposit is man. made as aforesaid, the wharfinger or warehouseman may, and, if required by the shipowner, shall, at the expiration of ninety days from the time when the goods were placed in his custody, or, if the goods are of a perishable nature, at such earlier period as in his discretion he thinks fit, sell by public auction, either for home use or exportation, the goods or so much thereof as may be necessary to satisfy the charges hereinafter mentioned. " (2) Before making the sale the wharfinger or warehouseman shall - give notice thereof by advertisement in two local newspapers circu- lating in the neighbourhood, or in one daily newspaper published in London, and in one local newspaper, and also, if the address of the owner of the goods has been stated on the manifest oJ the cargo, or on any of the documents which have come into the possession of the wharfinger or warehouseman, or is otherwise known to him, send notice of the sale to the owner of the goods by post. "(3) The title of a bond fide purchaser of the goods shall not be invalidated by reason of the omission to send the notice required by this section, nor shall any such purchaser be bound to inquire whether the notice has been sent." (o) Including agent, s. 492. As to the obtained declaring that the shipowner is legal proceedings to be taken when a de- entitled to the deposit, in an action posit is made by an agent of the owner of against the agent, without joining the the goods, see White v. Furness, (1895) owner of the goods. In such an action, A. C. 40 ; Montgomery v. Foy, (1895) 2 however, the defendant can generally Q. B.321; andEuterpeS.S. Co.f. Bath, obtain an order for the joinder of his 2 Com. Ca. 196. The agent making the principal as a defendant, where it is deposit cannot be made personally liable suggested that he has a counterclaim in for the freight. But a judgment can be respect of the shipment. WAREHOUSING. ^39 Sect. 498. "The proceeds of sale shall be applied by the wharfinger Sect. 475. or warehouseman as follows, and in the following order : — Application " (i) First, if the goods are sold for home use in payment of any of proceeds of customs or excise duties owing in respect thereof ; then " (ii) In payment of the expenses of the sale ; then " (iii) In payment of the charges of the wharfinger or warehouseman and the shipowner according to such priority as may be determined by the terms of the agreement, if any, in that behalf between them ; or if there is no such agreement — " (a) In payment of the rent, rates, and other charges due to the wharfinger or warehouseman in respect of the said goods ; and then " (b) In payment of the amount claimed by the shipowner as due for freight or other charges in respect of the said goods ; And the surplus, if any, shall be paid to the owner of the goods." Sect. 499. "Whenever any goods are placed in the custody of a Wareliouse- wharfinger or warehouseman under the authority of this part of this ^^^ expenses. Act, the wharfinger or warehouseman shall be entitled to rent in respect of the same, and shall also have power, at the expense of the owner of the goods, to do aU such reasonable acts as in the judgment of the wharfinger or warehouseman are necessary for the proper custody and preservation of the goods, and shall have a lien on the goods for rent and expenses." , Sect. 500. " Nothing in this part of this Act shall compel any Warehouse- wharfinger or warehouseman to take charge of any goods which he f"™. ^ P™' would not have been liable to take charge of if this Act had not been passed ; nor shall he be bound to see to the validity of any lien claimed by any shipowner under this part of this Act." Sect. 501. "Nothing in this part of this Act shall take away or Saving for abridge any powers given by any local Act to any harbour authority, fo'cafAc^s '^ body corporate, or persons, whereby they are enabled to expedite the discharge of ships or the landing or delivery of goods ; nor shall any- thing in this part of this Act take away or diminish any rights or remedies given to any shipowner or wharfinger or warehouseman by any local Act." And by sect. 492 of the same Act, the following definitions of the expressions used are given : — Sect. 492. In this part of this Act, unless the context otherwise requires — " The expression ' goods ' includes every description of wares and merchandize : " The expression ' wharf ' includes all wharves, warehouses, build- ings, quays, docks and premises in or upon which any goods when landed from ships may be lawfully placed : " The expression ' warehouse ' includes all warehouses, buildings, and premises in which goods when landed from ships may be lawfully placed ; c. — c. M M 530 THE DELIVERY. Sect. 475. " The expression ' report ' means the report required by the Customs laws to be made by the master of an importing ship : "The expression ' entry ' means the entry required by- the Customs laws to be made for the landing or discharge of goods from an importing ship : "The expression ' shipowner ' includes the master of the ship and every other person authorized to act as agent for the owner, or entitled to receive the freight, demiUTage, or other charges payable in respect of the ship : "The expression 'owner,' used in relation to goods, means every person who is for the time entitled, either as owner or agent for the owner, to the possession of the goods, subject in the case of a lien (if any) to that lien : "The expression 'wharfinger' means, the occupier of a wharf, as hereinbefore defined : " The expression ' warehouseman ' means the occupier of a ware- house, as hereinbefore defined." Shipowner 476. It is not necessary that there should have been any under^Uie Wrongful default on the part of the consignee, in order to entitle TOnsi*aee Mit ^^® shipowner to land the goods under the protection of these to blame. enactments. It is enough that the consignee has in fact failed to take delivery within the time limited. The Privy Council, in The Energie {p), considered that the word " fails," in the corresponding section of the Merchant Shipping Act, 1862, " need not be taken to imply wilful default in the cargo owner ; but that, upon the true construction of the section, the shipowner is at liberty to land the goods under it whenever the delivery of them to the owner within the proper time has been prevented by the force of circumstances, whether the latter is to blame or not." Must use the On the other hand, the shipowner must not use these powers right lairly. „ . , , . unfairly to the prejudice of the consignee. In the case above cited the owner of the goods failed to take delivery because he was unwilling to pay the whole amount of the master's claims against the cargo. The master thereupon landed and warehoused the goods, and put a stop upon them for a sum "manifestly and grossly " in excess of that for which he could claim a lien. This was held to be tantamount to a wrongful detention of the goods, and as such an actionable breach of duty. But it appears to have been considered that the master, or shipowner, would not be liable to an action for damages, merely {p) L. E., 6 P. 0. 306, at p. 316 ; Miebrodt v. Mtzsimon, S. C. WAREHOUSING. 631 tecause lie landed under a stop order for an amount in excess of Sect. 476. his lien, if lie did so in good faith (g). 477. The meaning of the condition, in sect. 493, suh-sect. 5, Meaning of . ° "ready to that the consignee shall have offered " and been ready to take take de- delivery," was discussed in Beresford v. Montgomerie {>•). The ^^^' vessel there arrived at the London Docks on March 24th, 1863, and before the goods were landed the plaintiffs, as owners of them, passed the entry at the custom-house and obtained the usual order for a delivery overside into craft, to be landed at their private wharf. The plaintiffs handed this order to their lighterman, and he sent it to the ship by an apprentice named Caney. Oaney gave the order to the second mate, then in charge, and applied for the goods at 4.0 p.m. on March 26th. The mate said they were not ready, and Caney went away. No information was asked for or given as to when they would be ready. They were, in fact, reached on March 28th, and were then landed without twenty-four hours' notice being given to the plaintiffs ; and the dock company refused to allow them to have the goods except upon payment of the usual landing and warehouse charges. When Oaney applied for the goods he had no lighter with him, but there was a barge belonging to his master in the docks about 100 yards off, and arrangements had been made for other craft to be used in case of need. Further, the ordinary working hours at the docks closed at 4.0 p.m. ; and the crew had, in fact, left the vessel when the application was made. Still it was held that plaintiffs had offered and been ready to take delivery, so as to entitle them to the twenty-four hours' notice. And it seems that a consignee is entitled to the benefit of sub- sects. (3) and (5) with regard to part of the goods, after some have been landed, if he is ready and offers to take that part ; unless, perhaps, where the shipowner -would be prejudiced by changing the mode of delivery after part had been landed (s). 478. The fact that the shipowner has failed to give the twenty- Consignee four hours' notice required by sub-sect. (5) does not relieve the goods in a consignee of the duty to take delivery of the goods within a y^g^'^^ou ^ reasonable time after he, in fact, knows he can have them. statutory In The Clan Macdonald {t), the goods were landed and sorted, given. (?) See L. E., 6 P. C. p. 316. W Wilson v. London, &o. Nav. Co., / , „. ^ ., « ^ L. R., 1 C. P. 61. M34L.J.,C.P.41. (0 8P.D.178. M M 2 532 THE DELIVERY, Sect. 478. Shipowner may contract himaeU free of sect. 493. under the provision of the Merchant Shipping Act, 1862, to ■which s. 493 (4) corresponds ; notice was given to the plaintifEs' lighterman that he could take them on March 16th, and on that day he might have had them free of charges. As they were not taken on the 16th, the dock company claimed charges upon them, and they were not taken away until the 29th. Sir James Hannen held that as the landing had been under the assortment clause, the twenty-four hours' notice was not necessary ; and further, that the Act did not mean that in default of the twenty-four hours' notice the goods were to remain at the shipowner's risk and expense for any time the goods owner might think fit to leave them at the wharf. " The duty of the goods owner remains to take away the goods within a reasonable time after he has notice, whether written or verbal, that he can receive them" (m). 479. The shipowner is not bound by the provisions of sect. 493 in all cases. A custom of the port («), or an express term of the contract may empower him to land the goods without giving the notices, and without being subject to the restrictions thete imposed ; and, if so, he may proceed independently of the Act. That was held to be the case where the bill of lading provided that the consignee was to be ready to receive simultaneously with the ship being ready to unload, and that, in default, the master was to be authorized to enter the goods at the custom-house, and land, warehouse, or place them in lighters, at the risk and expense of the consignee after they left the deck of the ship {y). Also where the bill of lading contained the clause, known as the London clause, entitling the shipowner to land the goods " on the quays of the dock where the steamer discharges immediately on her arrival" {%). Must ship- 480. It does not appear to have been decided how far a deposit owner see j>j.ij- i ii-. that goods ot the goods m a warehouse, under the Merchant Shipping Act, delirefed^Ifter al^solves the shipowner from the duty of seeing that the goods warehousing f ghall be delivered to the persons entitled to have them. The Act does not by any express terms relieve the shipowner of that duty. But it has been doubted whether the goods continue (m) 8 P. D. at p. 185. {x) Marzetti v. Smith, 49 L. T. 680. [y) Oliver v. Colven, 27 W. E. 822. (z) Borrowman v. Wilson,- 7 T. L. E. 416. WAREHOUSING. 533 to be subject to his control after he has warehoused them in accord- Sect. 480. ance with the Act ; and if, by the Act, he loses all control over them, it may well be that he ceases to be responsible for the correct delivery. On the other hand, if he remains in control, he should, generally, still continue bound to perform his contract. It has been said that the warehouseman does not hold the goods under any contract with the shipowner, or other person, but under the statute, and subject to a duty imposed by the statute (a). "There is nothing that I can see in the statute which would authorize him to give back the goods to the shipowner. There is nothing which would make the shipowner liable for any acts of the wharfinger or warehouseman. The shipovraier has no longer charge or power or liabilities with regard to the goods. He has only his right of lien for freight " (5). On the other hand, Baggallay, L. J., in the same case, said (c) : " I can find nothing in the statute which in terms, or in my opinion impliedly, declares or directs that after satisfaction of the ship- owner's lien, and of their own, the dock company shall hold any goods delivered to them under its provisions for the holder of the bill of lading. On the contrary, it appears to me that, after such satisfaction, it was incumbent upon the dock company, and especially so in the absence of any notice of right or title to the goods in any other person, to deal with them as directed by those who were the ostensible owners of them at the time of their deposit, and who, as such ostensible owners, had concurred in placing them in their custody." 481. But whether the shipowner is still responsible for a mis- He is not delivery or not, it seems that he is not answerable for the safety of for^safety iu the goods after he has warehoused them, under the Act (d). The ■^^'^^lioi^se. duty of taking care of them devolves upon the warehouseman ; and he is not in the position of agent for the shipowner in that regard. The shipowner is thus absolved from responsibility for a loss of the goods, although by neglect or wrongful acts of the warehouse- man. It may, however, still be his duty to direct the warehouse- man as to who is to receive the goods ; and he may be liable for (a) Glynji. E. & W. India Dock Co., Bramwell, L. J., at p. 497; and per per Lord Blackburn, 7 A. C. 691, p. 609 ; Lord Westbury, Barber v. Meyerstein, per Brett, L. J., 6 Q. B. D. 476, p. 486. L. K., 4 H. L. 317, at p. 337. (i) PerBrett,L. J.,6Q. B.D.p. 486. ((«) Per Willes, J., Meyerstein v. (c) 6 Q. B. D. at p. 506. Cf. per Barber, L. E., 2 0. P. 38, p. 54. 534 THE DELIVERY. Position of warehouse- man as to delivery. Sect. 481. neglecting this duty, or for performing it improperly. On this point, as we have seen, there has been a difference of opinion. 482. "With regard to the position of the warehouseman, and his responsibility for correct delivery, Lord Blackburn, in Grlyn v. East and West India Dock Co. (e), said : "And I further think that a warehouseman taking the custody of the goods under the provisions of the Merchant Shipping Act, 1862, s. 66, &c., is under an obligation cast upon him by the statute to deliver the goods to the same person to whom the shipowner was by his contract bound to deliver them, and is Justified or excused hy the same things as would justify or excuse the master (/) . And I find, as a fact, that this was the position of the respondents here. And on this ratio decidendi I think that the appeal should be dismissed with costs." The other lords all concurred in this view : with the exception of Lord Fitzgerald, who thought that "the position of the warehouseman, when the stop order had been removed, might be different, and possibly more extensive," than that of the master {g). He considered that the decision did not depend upon this point. [e) 7 A. 0. 591, p. 614. (/) The italics mark the point de- cided. Of. Wardell v. Mourillyan, Esp. at p. 695. Is) 7 A. Cat p. 617. CHAPTER XIV. TO WHOM SHOULD DELIVERY BE MADE. 535 BECT. Delivery under contract — Subject to superior claims , . . , 483 Where no bill of lading 484 Shipper may alter instructions — _^ Unless bill of lading transferred . 485 Bill of lading the symbol of the goods — "Assigns " means assign of bill of lading 486 Essentials of negotiability of bill of lading — " Order or assigns " = .. . 487 Conditional indorsement — Sale of Goods Act, =. 19 (3) 488 Mere possession of bill of lading does' not give title or enable holder to convey 489 Common law as to the effect of possession of goods 490 Shipper without title cannot nego- tiate 491 When does property pass? — Ship- ment under contract of sale— Sale of Goods Act 492 Conditional intention to pass pro- perty 493 Where property passes subject to vendor's Hen 494 SECI. Shipment by agent who has paid for goods 495 Where bill of lading obtained fraudulently by owner of goods — Title of assignee 496 Effect of transfer of bill of lading. . 497 Transfer to bankers — ^Pledge or mortgage? 498 SeweU v. Burdick— Intention the test 499 Assignment of goods without trans- fer of a bill of lading 500 Bill of lading in force as document of title until delivery ■. . . . 601 Bill of lading in a set, presentation by different persons — Presentation of one part to shipowner sufficient 502 Indorsement of one part to assignee sufficient 603 Factors Act, 1889 604 Mixture of Goods. Loss of identity, consignees tenants in common 505 483. The shipowner must generally see that the goods are Delivery delivered to the person to whom he has contracted to deliver them, tact ''°°' That is to say, as a rule, to the person named as consignee in the bill of lading, or to the assignee of the person who is empowered hy the bill of lading to make an order or assignment of it. But this is subject to claims to the goods which may exist Subject to independent of the contract, and superior to those of the persons dM^?"^ who would be entitled under that. If the goods have been originally shipped without the authority of their owner, and he claims them, the shipowner must give them up to him ; and will, 636 THE DELIVERY. Sect. 483. in that case, cease to be bound by the contract («). So, also, if the property in the goods be transferred to one person, without any reservation of rights of possession, but the order as to delivery under the contract be made improperly in favour of some one else, the owner of the goods will, it would seem, be entitled to them as against the person to whom delivery has been ordered (5). ■ Further, the claims of an unpaid vendor to stop the goods in transit may prevail over those of a purchaser to whom they are deliverable under the contract of carriage. We shall discuss this right of stopping goods in the next chapter ; here it is enough to say that the shipowner and master must recognize it, and must deliver the goods to the vendor who validly claims it, and not to the consignee or assignee of the bill of lading (e). Where no bill 454. But apart from such eases the delivery is to be to the of lading. _ _ -^ ■ '' person indicated by or under the contract. If the shipment was made without any bill of lading being taken, but with directions as to delivery, the shipowner must deliver in accordance with the engagement thus expressly or impliedly made. If no directions were given as to a qpnsignee, he must deliver to the shipper, or to persons authorized by him to receive the goods at the destination. In McKean ». Maolver {d) goods were carried by the defendants, carriers by sea from Liverpool to Glasgow, under directions to deliver them to C. Tait & Co., 71, George Street, Glasgow. The order for the goods had been sent to the plaintiS's fraudulently by one Heddell ; there was no such firm as C. Tait & Co. Heddell had, however, arranged for getting letters, &c. addressed to C. Tait & Co., at 71, George Street ; and, accordingly, he received a notice so addressed which was sent by the defendants in the ordinary course of business, as pursued by carriers between Liver- pool and Glasgow, requesting the consignees to send for the goods, and stating that the notice must be produced indorsed as a delivery order. Heddell indorsed it in the name of 0. Tait & Co., and on production of it received the goods from the defendants. It was held that the defendants had made what was equivalent to a (a) Finlay v. Liverpool and Gt. W. {0) The Tigress, 32 L. J., Ad. 97 ; SS. Co., 23 L. T. 251 ; Sheridan v. New Vertue v. JeweU, 4 Camp. 31. QuayCo., 28L. J., C. P. 58. Seeasto liens, infra, a. 652. {d) L. E., 6 Ex. 36 ; on demurrer, 18 {b) Infra, a. 500, L. T. 410. TO WHOM SHOULD DELIVERY BE MADE. 537 delivery at 71, George Street, in accordance with the sender's Sect. 484. directions, and were not liable for the loss of the goods. Where the contract of carriage has been made by the consignor on behalf of the consignee (c), the carrier may take his instructions from the latter, and will be discharged by a delivery in accordance with his directions (/). And even where the goods are at the risk of the consignor, and the contract is really with him, if he has directed that they are to be delivered to the named consignee at a particular place, and an arrangement is made between the carrier and consignee that they shall be delivered to him elsewhere, and that is done, the delivery will discharge the carrier (^). "The obvious meaning of the contract is to deliver to the consignee at the place mentioned, unless the consignee chooses, and the carrier is willing that they shall be delivered somewhere else " (A). 485. The shipper, so far as the contract of carriage is concerned, Shipper may may alter his instructions to the shipowner as to the person to tions. whom the goods are to be delivered ; unless he has taken a bill of lading for the goods and negotiated it. Even where the consignee has been named in the bill of lading, Though oon- that is not necessarily a final instruction by the shipper to the ship- in bill of owner. " As between the owner and shipper of the goods and the ^^^^s- captain, it (the bill of lading) fixes and determines the duty of the latter as to the person to whom it is (at the time) the pleasure of the former that the goods should be delivered. But there is nothing final or irrevocable in its nature. The owner of the goods may change his purpose, at any rate before the delivery of the goods themselves, or of the bill of lading to the party named in it, and may order the delivery to be to some other person ; to B. instead of to A." («). In The Stettin (k), the bill of lading made the goods deliverable to Mendelsohn or assigns, he being the agent at the port of dis- charge of the intended purchasers of the goods. The bill of lading was not, however, sent to him, but to an agent of the shippers ; («) See supra, a. 61. the carrier, see Scotthomji. South Staff. (/) Cork DistiUeries Co. v. G. S. & Kail. Co., 22 L. J., Ex. 121. W. EaU. Co., L. E., 7 H. L. 269. (i) Per Lord Denman C. J., in Mitohel {g) L. & N. W. Eail. Co. v. Bartlett, v.'Eie, 11 A. &E.888,p.903. Cf.Bryans 31 L. J., Ex. 92. V. Nix, 4 M. &W. 775 ; Gabarron „. (A) Per Bramwell, B., 31 L. J., Ex. Kreeft, L. E,., 10 Ex. 274 ; The Con- p. 94. As to the rights of the consignor stantia, 6 C. Eob. 321. where he has changed his instructions to {k) 14 P. D. 142. 538 THE DELIVERY. Sect. 485. and he retained it, as tlie intended purohasers failed to fulfil the contract. In the meantime the master had delivered the goods to Mendelsohn without production of any hiLL of lading. It was held that the shipowners were liable for the goods to the shippers. Unless bill of But where a shipper has taken a bill of lading, and has indorsed and'tfaus-'^'' and delivered it to another person, or has sent it to the named ferred. consignee, with the intention of transferring it (not merely of handing it to an agent for himself, or of delivering it condi- tionally), his control over the possession of the goods is gone; except as to the right of stopping them in transit, to be hereafter considered. Bill of lading 486. The right to have possession of the goods passes to the the g^ods° ° transferee of the bill of lading ; that is the symbol of the goods, and a transfer of it is, symbolically, a transfer of the possession of the goods themselves. Until the goods have been delivered, a delivery of the duly indorsed biU of lading operates, as between the transferor and transferee, and all who claim through them, as a physical delivery of the goods would do. And thus the posses- sion may, in effect, be passed from one buyer, pledgee, &c. to another, while the goods are still in the hands of the shipowner. " A cargo at sea, while in the hands of the carrier, is necessarily incapable of physical delivery. During this period of transit and voyage, the bill of lading by the law merchant is universally recognized as its symbol ; and the indorsement and delivery of the bill of lading operates as a symbolical delivery of the cargo. Property in the goods passes by such indorsement and delivery of the bill of lading, whenever it is the intention of the parties that the property should pass, just as under similar circumstances the property would pass by an actual delivery of the goods. And for the purpose of passing such property in the goods, and completing the title of the indorsee to full possession thereof, the bill of lading, until complete delivery of the cargo has been made on shore to someone rightfully claiming under it, remains in force as a symbol, and carries with it not only the full ownership of the goods, but also all rights created by the contract of carriage between the shipper and the shipowner. It is a key which in the hands of a rightful owner is intended to unlock the door of the warehouse, floating or fixed, in which the goods may chance to be " (/). (Z) Per Bowen, L. J., Sanders v. Maclean, 11 Q. B. D. 327, at p. 341. TO WHOM SHOULD DELIVERY BE MADE. 539 TJnder the contract the delivery is to be to the " assigns " of the Sect. 486. hill of ladinff, not to the assigns of the goods Im). So that if a "Assigns" . o \ / mean assigns shipper transfers the property in the goods to A., without the hill of bill of of lading, while he transfers the bill of lading to B., the contract requires the shipowner to deliver to B. or his assigns : and he will discharge his obligation under that by so doing. But he may be liable to A. if he had notice of his claim before delivering (n). 487. The bill of lading is thus generally a negotiable instru- Essentials of ment, carrying with it the right to demand and have possession of of bill of the goods described in it. And, as we have seen, it also carries * ™^" with it the rights and liabilities under the contract, where the property in the goods also is transferred (o) . But in order that it may have this character, it must, it seems, purport on the face of it to be negotiable, and it must have been set in circulation by a person who was at the time entitled to possession of the goods ; also, he must have negotiated it unconditionally, or, if condition- ally, then the condition must have been performed. And, further, the negotiability only continues while the goods are on the voyage, and up to the time of their being delivered to the person entitled to delivery \mder the contract {p). Eirst, then, with regard to the form of the bill of lading. It "Order or usually states that delivery is to be to the " order or assigns " of the consignee, or of the shipper ; and words of this kind seem to be essential to the negotiability. In Henderson v. The Comptoir d'Escompte de Paris, the bill of lading provided that delivery should be to named consignees, without more ; and Sir li. P. Collier, delivering the judgment of the Privy Oouncil, said (q) : " It appears that a bill of lading was made out, which is in the usual form, with this difference, that the words ' or order or assigns ' are omitted. It has been argued that, notwithstanding the omission of these words, this bill of lading was a negotiable instrument ; and there is some authority at Nisi Prius for that proposition (r) ; but undoubtedly the general view of the mercantile world has been for some time, that in order to make biUs of lading negotiable, some such words as ' or order or (»«) Per Lord Blackburn, Glyn, Mills & {p) Barber v. Meyerstein, L. E., 4 Co. V. E. & "W. India Dock Co., 7 A. 0. H. L. 317. 591, at p. 610. (?) ^- ^■' 5 P- C. 253, at p. 259. {r) See Eenteria v. Ending, Moo. & («) Supra, s. 469. M. 511 ; and Abbott (5tli), 384 ; (11th), (o) Supra, ss. 62 et seq. iv, 10, 5. 540 THE DELIVERY. Sect. 487. assigns ' ought to he in them. For the purposes of this case, in the view their Lordships take, it may he assumed that this bill of lading was not a negotiable instrument." But where delivery is to be to the " order or assigns " of any person indicated by the bill of lading, it may be negotiated. The order, or assignment, is usually made by an indorsement on the bill of lading. It may be special in favour of some particular person, or general, by a blank indorsement of the orderer's signature upon the document. In the latter case, the bill of lading may afterwards be trans- ferred by mere delivery ; but where the indorsement is special, the indorsee must again make an order, in order to transfer it. Where a special indorsement does not expressly enable the in- dorsee to make a further order or assignment, it is perhaps doubtful whether the bill of lading continues to be negotiable. But by analogy to bills of exchange (s), it would seem that the omission of the words " or order " in a special indorsement is not material, and that the indorsee takes the bill of lading with its original negotiable quality (t). In Cowdenbeath Coal Co. v. Clydesdale Bank (u), it was held (s) Edie V. East India Co., 2 Burr. been and is transferred and passed to 1216; CunlifEe v. Whitehead, 3 Bing. such other person or persons. Andthat, jT Q gng by the custom of merchants, indorse- ments of bills of lading in blank, that is (t) On the second trial of Liokbarrow to say, by the shipper or shippers with V. Mason, 5 T. R. 683, the jury found, their names only, have been, and are, in their special verdict, that " by the and may be, filled up by the person or custom of merchants, bills of lading, persons to whom they are so delivered expressing goods or merchandizes to or transmitted as aforesaid, vpith words have been shipped by any person or ordering the delivery of the goods or persons to be delivered to order or contents of such bills of lading to he assigns, have been, and are, at any time made to such person or persons ; and, after such goods have been shipped, and according to the practice of merchants, before the voyage performed, for which the same, when filled up, have the same they have been or are shipped, negoti- operation and effect as if the same had able and transferable by the shipper or been made or done by such shipper or shippers of such goods to any other shippers when he, she or they indorsed person or persons, by such shipper or the same bills of lading with theirnames shippers indorsing such bills of lading as aforesaid." See the observations, of with his, her or their name or names, Lord Selborne in SeweU v. Burdiek, 10 and delivering or transmitting the same A. C. 74, at p. S3, as to a possible differ- so indorsed, or causing the same to be so ence in effect between a special and a delivered or transmitted, to such other blank indorsement. As to shipping person or persons ; and that by such notes, see Akerman v. Humphrey, 1 C. indorsement and delivery, or trausmis- & P. 63. sion, the property in such goods hath («) 22 Sess. Ca. (4th) 682. TO WHOM SHOULD DELIVERY BE MADE. 541 that the validity of a bill of lading as a negotiable document was Sect. 487. not affected by the fact that the master had signed it before the statement of quantity of the goods had been filled in. 488. Next, the bill of lading must have been put in circulation Conditional by the person originally entitled to negotiate it. He must have indorsed and delivered it, intending to transfer the right to it ; and to do so unconditionally ; or, if conditionally, the condition must have been performed. A condition is sometimes stated in the indorsement, but it need not be so ; it may be expressed in other ways, or may be implied from the manner in which the bill of lading has been put into the possession of the intended transferee. The negotiation is only complete where the bill of lading has been indorsed and delivered free of conditions. And to ascertain whether that has been the case, the intention of the indorser must be looked for. In Shepherd v. Harrison (*), cotton had been shipped, on plaintiff's instructions, by Paton, Nash & Co., merchants, of Pernambuco, under a bill of lading making it deliverable to their order. Paton, Nash & Co. drew upon the plaintiff for the price of the cotton, and sent the draft and the bill of lading to their agents in England, George Paton & Co., while they sent an invoice to the plaintiff which described the cotton as shipped on his "account and risk." George Paton & Co. sent the bill of lading to the plaintiff indorsed in blank, and with it the draft for acceptance ; on previous occasions this had been done, and the plaintiff had accepted the drafts and retained the bills of lading — on this occasion, however, he kept the bill of lading, but returned the draft unaccepted. George Paton & Co. thereupon stopped delivery of the cotton by means of a duplicate bill of lading which they held, and an action was brought by the plaintiff against the shipowners. It was held in three Courts that, under the circumstances, neither the goods nor the right to the bill of lading had passed to the plaintiff {y). («) L. R., 4 Q. B. 196, 493 ; L. R., 6 in a letter, either 'to approbate or to H. L. 116. reprobate' entirely and completely tben {jf) In the House of Lords Lord Cairns and there. If they accept the cargo and said (L. R., 5 H. L. at p. 133) : " Ihold the bill of lading, and accept the bill of it to be perfectly clear that when a cargo exchange drawn against the cargo, the comes in this way, protected by a bill of object of those who shipped the goods is lading and a bill of exchange, it is the obtained. They have got the bill of duty of those to whom the bill of lading exchange in return for the cargo ; they and the biU of exchange are transmitted discount or use it as they think proper ; 542 THE DELIVERY. Sect. 488. In Barrow ». Coles (z) a bill of lading was indorsed with an order to deliver to one Yoss if he should accept and pay a certain draft. Voss accepted the draft, and then having got possession of the bill of lading transferred it to the defendant ; but he did not pay the bill of exchange. Lord Ellenborough held that the in- dorsement was conditional, and that the property had not passed to the defendant. Gurney v. Behrend (a) also throws light on the point. Behrend & Co. had sold wheat to Werthemann. They had shipped it at Dantzic, and the bill of lading made it deliverable to their order or to assigns. They indorsed the bill of lading in blank, and sent it, according to Werthemann's instructions, to CoUmann & Stol- terfoht, of London, enclosed in a letter, in which they requested CoUmann and Stolterfoht to follow the instructions of Werthemann respecting the bill of lading ; " by whose order and for whose account we have to-day taken the liberty, 3,418/. two months after date, of E. Warschaur & Co., which drafts we recommend to your kind protection for account of Mr. E. Werthemann." CoUmann & Stolterfoht replied, promising that the drafts should be protected on presentation ; but on their being subsequently presented by Behrend's London agents they were dishonoured, and no accept- ance was ever given. The bill of lading was then demanded ; but CoUmann & Stolterfoht had meanwhile handed it to Pries, for whom the wheat had been bought by Werthemann, and he had handed it for value to Coventry and Sheppard, who again had handed it for value to the plaintiffs. Before the wheat arrived, and they are Tirtually paid for the goods. these billa of lading and bills of ex- But if, on the other hand, the persons to change is, that before you use the bills ■whom the bill of lading is sent do not of lading you shall accept the bills of refuse bi toto the consignment of the exchange. Merchants kno-w perfectly goods, but keep the bUl of lading, but "well what they mean -when they express do not accept the bill of exchange, then themselves, not in the language of the agents of the foreign shippers have - lawyers, but in the language of courteous neither the goods nor the money to mercantile communication ; and I do not deal with ; if they had repudiated the think that any merchant in England transaction in toto the agents of the receiving a. bill of lading and a biU of shippers might have dealt with some exchange under these circumstances, other house and raised money on the when he came to reflect on the matter, goods. I therefore think that when would feel any doubt that he could not one merchant in this country sends to retain the one without accepting the another, under circumstances like the other." See also Brandt v. Bowlby, 2 present, a bill of lading and a biU of B. & Ad. 932. exchange, it is not at all necessary for , > „ r> ,. , . n TIT • , W 3 Camp. 92. nun to say m words. We require you to take notice that oxir object in enclosing {") 23 L. J., Q. B. 265. TO WHOM SHOULD DELIVERY BE MADE. 543 Pries, Werthemann and CoUmann & Stolterfoht had all stopped Sect. 488. payment, and Behrend & Co., upon the ship's arrival, claimed to stop the wheat, and in fact paid the freight and got possession of it. It was held that the plaintiffs were entitled to claim its value from them ; for the right to stop the goods was lost if Behrend & Co. had authorized the transfer of the hill of lading, and it was held that they had done so (b). Sect; 19 (3) of the Sale of Goods Act, 1893, now enacts that Sale of Goods "where the seller of goods draws on the buyer for the price, and ' ' transmits the bill of exchange and bill of lading to the buyer together to secure acceptance or payment of the hill of exchange, the buyer is bound to return the bill of lading if he does not honour the biU. of exchange, and if he wrongfully retains the bill of lading the property in the goods does not pass to him." 489. Apart from the Factors Acts, which will be stated later, Mere posses- the negotiation of the bill of lading must have been by the person lading does who had a right to dispose of it. Mere possession of it does not o°efabie*'*^^ enable the holder to give any title to the goods to a transferee ; l"Jl. 476 ; H. L., at p. 326. 7 A. C. 591 (1882). TO WHOM SHOULD DELIVEKY BE MADE. ^^^ (the assignors), a legal right to the immediate actual possession of Sect. 498. the sugar by the plaintiffs on the arrival of the ship ; but by the letter of charge there was left to Cottam, Morton & Co. an equit- able right to resume the legal and absolute ownership of the sugar on repayment of the advance, and an equitable right that the plaintiffs should not for a specified time exercise any rights of ownership over the sugar, but that Cottam, Morton & Co. might exercise any such rights, which would not be inconsistent with the validity of the plaintiff's security " (1) . Baggallay, L. J., said it was unquestionable that " the effect of the delivery by Messrs. Cottam to the plaintiffs, on the 15th of May, of the indorsed bill of lading, the other parts of the original set of three not having been previously dealt with, was to pass to the plaintiffs the property represented by it, and to confer upon them the right to the possession of such goods upon the arrival of the Mary Jones in the port of London, subject, nevertheless, to the payment of the freight due to the shipowner " (m). On the other hand, Bramwell, L. J., took the contrary view : " I do not think that the property in the sugars was passed to the plaintiffs with an equity of redemption, or some other equity, in Cottam & Co. I think that what took place was a pledge at com- mon law, with a right in the plaintiffs to sell in certain events, and with a common law right to redeem in Cottam & Co. I think if there had been instead of a symbolical an actual delivery of goods from Cottam & Co. to the plaintiffs, on the same terms, as, for in- stance, of a case of diamonds, the general property would not have been transferred, but would have remained in Cottam & Co., the plaintiffs having only a special property and right of posses- sion" (w). In the House of Lords this point was not much discussed ; Lord Blackburn thought it unnecessary to express an opinion upon it. He said : " Either way thebankers had a legal property, and at law the right to possession, subject to the shipowner's lien, and were entitled to maintain an action against any one who, without justification or legal excuse, deprived them of that right" (o). The right of possession would have suflBced for the plaintiffs, had the action not been defective on other grounds. [l] 6 Q. B. D., at p. 480. (») 6 Q. B. D., at p. 490. (m) 6 Q. B. D., at p. 498. (o) 7 A. C, p. 606. 656 THE DELIVERY. Sewell V. Burdiok. Intention the test. Sect. 499. 499. But in Sewell v. Burdiok (p), where the question was whether hankers to whom a hill of lading had been indorsed were liahle under the hUl of lading contract, it seems to have been conclusively laid down by the House of Lords that the effect of an indorsement must be ascertained, in each case, by reference to the intention with which it was made. The bill of lading there had been indorsed by the shipper in blank, and deposited by him with the bankers as security for a loan. Field, J., who tried the case, found that the intention was to pledge the goods only ; to give the bankers control over the possession of them, but to leave the general property with the shipper. He accordingly gave judgment against the claim for freight made by the shipowner against the bankers. This was reversed by the Court of Appeal on the gi'ound that the indorsement of the bill of lading, as security, necessarily passed the legal property in the goods to the indorsee, leaving only an equitable interest in them in the shipper. Bowen, L. J., however, dissented from this view, and he laid down clearly the principle which was afterwards adopted upon this point by the House of Lords. He said (q) : — " What pro- perty, if any, in a cargo afloat passes upon delivery of an indorsed bill of lading, appears to me to be a question of fact in each case that depends, so far as the rights between themselves of the immediate parties are concerned, on the express or implied agree- ment between them. The owner of merchandise may do whatever he pleases with his goods; he may sell them, or mortgage them, or pledge them. It is a pure question of bargain whether he delivers them upon terms which part with the entire beneficial interest in them, or which part with the entire legal interest reserving an equitable right to himself, or which part with a special property only in them, reserving to himself the general and absolute property at law. The freedom of disposition, which owners of property possess when their property is on shore, belongs to them equally when it is afloat. They can, if they please, sell the bill of lading, or transfer it upon terms which amount either to a mortgage or to a pledge. For a bill of lading is a symbol of the goods themselves. The cargo being at sea, no actual delivery {p) 10 Q. B. D. 363 ; 13 Q. B. D. 159 ; oussed supra, s. 66. 10 A. 0. 74 (1884). See the case dis- (?) 13 Q. B. D., p. 170, TO WHOM SHOULD DELIVERY BE MADE, 557 . of it is possible before the ship arrives. During this period of Sect. 499. flotation and transit the hill of lading hecomes and remains the token or symbol of the goods, and the delivery and indorsement of the bill of lading is equivalent, so far as the passing of property is concerned, to a symbolical delivery of the goods. Upon principle and reason, therefore, apart from authority, one would suppose that it is to the agreement between the original parties that we ought to look if we wish to discover the effect as between themselves of a delivery of the indorsed bill of lading, just as it is to the agree- ment between them that we should look to determine the legal- consequences that follow on the corporate delivery of the goods. We should expect in some cases to find that the entire property had passed ; in others, that there had been some different arrange- ment." (»•). 500. Though the ordinary manner of transferring goods repre- Assignment of sented by a bill of lading is by indorsement and delivery of the transfer of the bill of lading itself, it seems clear that the rights of property in ' ° ^ ^' the goods may be completely assigned to another without any assignment or delivery of the bill of lading at all ; and, therefore, subject to the Factors Act, that if the owner of the property in the goods assigns them to A. without a transfer of the bill of lading, and afterwards transfers the biU of lading to B., the latter will have no right to the goods as against A., except, perhaps, in respect of the lien of the original owner, if any. " If the intention of the parties to pass the property, whether absolute or special, in certain ascertained chattels, is established, and they are placed in the hands of a depositary, no matter whether such depositary be a common carrier or shipmaster em- ployed by the consignor, or a third person, and the chattels are so placed on account of the person who is to have that property, and the depositary assents, it is enough, and it matters not by what documents this is effected. Nor is it material whether the person who is to have the property be a factor or not, for such an agreement may be made with a factor as well as any other individual" (s). " I take this opportunity of saying that I think there is some inaccuracy of expression in the statute. It recites that ' by the custom of merchants a bill of lading being transferable by indorse- (r) Of. North "Western Bank v. Poyn- («) Per Parke, B., Bryans v. Niz, 4 ter, (1895) A. 0. 56. M. & W. 775, at p. 791. 5.58 THE DELIVERY. Sect. 500. ment the property in the goods may thereby pass to the indorsee.' Now the truth is, that the property does not pass by the indorse- ment, but by the contract in pursuance of which the indorsement is made. If a cargo afloat is sold, the property would pass to the Tendee, even though the bill of lading was not indorsed. I do not say that the vendor might not retain a lien, nor that the non- indorsement and non-handing over of the bill of lading would not have certain consequences. My concern is to show that the pro- perty passes by the contract. So if the contract was one of security — ^what would be a pledge if the property was handed over — a con- tract of hypothecation, the property would be bound by the con- tract, at least as to all who had notice of it, though the bill of lading was not handed over " {t). Bill of lading 501. The bill of lading continues in force as a document of title, document of by which Symbolical delivery of the goods may be made, " at least deUvCTy!^ SO long as complete delivery of the possession of the goods has not been made to some person having a right to claim them under it" (m). A quantity of cotton was consigned to one Abraham, but bills had been drawn against it, and when the cotton arrived in London those bills lay in the hands of bankers, who also held as security the whole set of three bills of lading which represented the cotton. The cotton was landed at a sufferance wharf, subject to a " stop " for the freight. On February 9th Abraham instructed Barber & Co. to sell the cotton, and they took samples of it at the wharf. On March 4th Abraham obtained an advance from Meyerstein, and therewith paid off the bank and obtained the three bills of lading, two of which he on the same day deposited with Meyer- stein as security. On the 6th and 7th of March Abraham obtained advances from Barber & Co. against the cotton, depositing with them the third bill of lading, and he paid the freight. Afterwards Barber & Co. got possession of the cotton. It was held that Meyerstein was entitled to claim it from them. The landing, subject to the stop for freight, was not a complete delivery of the goods, so as to put an end to the force of the bUl of lading as an instrument of transfer (x). [t) Per Lord Bramwell, Sewell v. 5 Taim. 74. Burdick, 10 A. C. 74, at p. 105. See (m) Per Willes, J., Meyerstein v. Dick V. Lumsden, Peake, N. P. C. 189 ; Barber,' L. E., 2 C. P., at p. 53. Davisjj.Keynolds, 4 Camp. 267; Nathan {x) Meyerstein v. Barber, L. E.., 2 V. Giles, 6 Taun. 558 ; Meyer v. Sharpe, C. P. 38, 661 ; L. E., 4 H. L. 317. TO WHOM SHOULD DELIVERY BE MADE. 559 The judgments in that case went further upon this point than Sect. SOI. was actually required for the decision, and show that even if there be no stop for freight, the bill of lading continues in force after the landing of the goods, until there has been an actual or con- structive delivery of them under the bill of lading. Martin, B., delivering the judgment of the Exchequer Chamber, said : " For many years past there have been two symbols of pro- perty in goods imported — the one, the bill of lading ; the other, the wharfinger's certificate or warrant {y) . Until the latter is issued by the wharfinger the former remains the only symbol of property in the goods." And the Lord Chancellor (Lord Hatherley), said : " In the case of goods, which are at sea, being transmitted from one country to another, you cannot deliver actual possession of them ; therefore the bill of lading is considered to be a symbol of the goods, and its delivery to be a delivery of them. When they have arrived at the dock, until they are delivered to some person who has the right to hold them, the bill of lading still remains the only symbol that can be dealt with by way of assignment or mort- gage, or otherwise. As soon as delivery is made, or a warrant for delivery has been issued, or an order for delivery accepted (which in law would be equivalent to delivery), then those symbols replace the symbol which before existed. Until that time bills of lading are effective representations of the ownership of the goods, and their force does not become extinguished until possession, or what is equivalent in law to possession, has been taken on the part of the person having a right to demand it." Where delivery had been made by the master improperly, it was held, in Scotland, that an indorsee of the bill of lading, who bought the goods and took the indorsement after the wrongful delivery, could still sue the shipowner on the bill of lading contract. " The defender cannot found upon his own wrongful act " (z). 502. Difficulty sometimes arises out of the practice of drawing Bill of lading bills of lading m sets. It is not usual for a purchaser of the goods, sentatio/by' or a banker to whom they have been pledged, to require all of the i^ifierent set to be transferred to him. Some signed parts are thus generally [y) A wharfinger's or warehouseman's Farina v. Home, 16 M. & W. 119; certificate or warrant is not a symbol of IngUs v. Robertson, (1898) A. C. 616. the goods in the same sense as a bill of (s) Pirie>. Warden, 8 So. L. R. 360 ; lading is ; it does not generally carry and see Bristol, &o. Bank *. Midland construotiTe possession with it ; see Rail. Co., (1891) 2 Q. B. 652. 560 THE DELIVERY. Sect. 602. left with the vendor or pledgor, and these may he negotiated and " used improperly. Bills of lading, drawn in sets, always provide that one of them " heing accomplished, the others to stand void ;" and it was formerly held that when different parts of the set are presented, by different holders, the captain is not concerned to examine who has the hest right, but has simply to deliver the goods upon one of them {a). But, as we have seen, that is not so (b). When the master has notice or knowledge that more than one of the set have been negotiated, he must ascertain who is the rightful owner, and deliver to him ; or else he should interplead (c). Presentation If, however, one part of the bill of lading only be presented, BhipoTraer ° although it be not that marked " First " of the set, and if the sufficient. master has no knowledge that any other part has been indorsed, he may properly and safely deliver in accordance with the indorsement and holding of the part presented, without inquiry as to the others. " It would be neither reasonable nor equitable, nor in accordance with the terms of such a contract, that an assignment, of which the shipowner has no notice, should prevent a bond fide delivery under one of the bills of lading, produced to him by the person named on the face of it as entitled to delivery (in the absence of assignment), from being a discharge to the shipowner. Assignment, being a change of title since the contract, is not to be presumed by the shipowner in the absence of notice, any more than a change of title is to be presumed in any other case when the original party to a contract comes forward and claims its performance, the other party having no notice of anything to displace his right. He has notice, indeed, that an assignment is possible, but he has no notice that it has taken place. There is no proof of any mercantile usage putting the shipowner, in such a case, under an obligation to inquire whether there has in fact been an assignment or not ; and, in the absence of such usage, I am of opinion that it is for the assignee to give notice of his title to the shipowner, if he desires to make it secure, and not for the shipowner to make any such inquiry" {d). Indorsement 603. Further, it is not necessary to the effectiveness of a con- assignee^ ° structive delivery of the goods, by means of the bill of lading, that sufficient. mQj,Q tjjajj Qj^g pa^rt of the " set " should be indorsed or delivered. Where one part has passed the indorsee's title to the goods under (a) Fearon v. Bowers, 1 H. Bl. 364, n. Dock Co., 7 A. C. 591. (i) Supra, s. 469. [d) Per Lord Selbome, 7 A. C, at (c) Glyn, Mills & Co. v. E. & W. India p. 596. TO WHOM SHOULD DELIVERY BE MADE. 561 the assignment to him is perfected, so far as constructiTe delivery Sect. 503. of possession can make it so, as against any subsequent indorsee of another part or parts of the " set " ; even though the latter should obtain actual possession of the goods (e). In Sanders v. Maclean (/) the question was raised whether a pur- chaser of goods, to be paid for against bills of lading, might refuse to accept and pay upon two parts only out of a set of three bills of lading. The Court of Appeal held that a tender of two parts to a purchaser is sufficient, where the third part has not been dealt with. Brett, M. E,., there said (g), " If only one copy of a blU of lading has been indorsed, it is plain and known law that the delivery of that copy so indorsed, with an intention to pass the property in the goods, passes the property, and will entitle the person to whom it is delivered to demand possession of the goods on their arrival ; and it is also known law that if it be so indorsed the person to whom it is so delivered can, by indorsement for value, pass the property to somebody else ; and, if that one copy of the bill of lading is the first which is indorsed, it passes the property, so that no subsequent- indorsement of any other of the copies will have any effect upon the property in the goods." 504. The common law has been much modified by the Factors Factors Act, Acts. The Act now in force is the Factors Act, 1889 (52 & 63 ^**^- Vict. c. 45), which repeals the earlier Acts having the same name, viz., 4 Geo. IV. c. 83, 6 Geo. lY. c. 94, 5 & 6 Vict. o. 39, and 40 & 41 Vict. 0. 39. The following are the important clauses of the Act : — 1. For the purposes of this Act — (1.) The expression "mercantile agent" shall mean a mercantile agent having in the customary course of his business (A) as such agent authority either to seU goods, or to consign («) goods for tlie purpose of sale, or to buy goods, or to raise money on the security of goods : (2.) A person shall be deemed to be in possession of goods, or of the (fi) Barber v. Meyerstein, L. E., 2 {g) Ibid., p. 334. C. P. 38, 661; L. E., i H. L. 317; [h) See Hastings v. Pearson, (1893) 1 Gilbert v. Guiguon, L. E., 8 Oil. 16 ; Q. B. 62. Caldwell V. BaU, 1 T. E. 205. (i) See City Bank *. Barrow, 6 A. C, (/) 11 Q. B. D, 327. 684. C. — C. O O 562 THE DELIVEEY. Sect. 504. documents of title to goods, where the goods or documents are in his actual custody, or are held by any other person subject to his control or for him or on his behalf (A) : (3.) The expression " goods" shall include wares and merchandise : (4.) The expression "document of title" shall include any bill of lading, dock warrant; warehouse-keeper's certificate, and warrant or order for the delivery of goods {I), and any other document used in the ordinary course of business (m) as proof of the possession or control of goods, or authorizing or pur- porting to authorize, either by indorsement or by delivery, the possessor of the docmnent to transfer or rec^ve goods thereby represented : (5.) The expression "pledge" shall include any contract pledging, or giving a lien or security on goods, whether in consideration of an original advance, or of any further or continuing ad- vance, or of any pecuniary liability : (6.) The expression "person" shall include any body of persons corporate or unincorporate. Dispositions by Mercantile Agents. 2. — (1.) Where a mercantile agent is, with the consent of the owner, in possession of goods (n), or of the documents of title to goods, any sale, pledge, or other disposition of the goods, made by him when acting in the ordinary course of business of a mercantile agent (n), shall, subject to the provisions of this Act, be as valid as if he were expressly authorized by the owner of the goods to make the same : provided that the person taking under the disposition acts in good faith, and has not at the time of the disposition notice that the person making the disposition has not authority to make the same (o). (2.) Where a mercantile agent has, with the consent of the owner, been in possession of goods, or of the documents of title to goods, any sale, pledge, or other disposition, which would have been valid if the consent had continued, shall be valid notwithstanding the determina- tion of the consent : provided that the person taking under the disposition has not at the time thereof notice that the consent has been determined. (k) Where document already pledged sMpmeut, Gunn v. Bolokow, L. B., 10 and transferred for part of its value: Ch. 491. PortaHs v. Tetley, L. R., 5 Eq. 140. , \ -nru ^r. • t. v /7v -NT 1 -1 -^ ■. W Wnere the possession has been . a • <,-, ii'„„+™„ 4„+ 10^0 Tij i li. J., Ex. 154; Barnes ». Swamson, 32 Factors Act, 1842. It does not cover a x j q -p. no, mere receipt for payment for goods : ■ •, . . per Lord Blackburn in Kemp o. Ealk, (o) See JSTavulshaw v. Brownrigg, 21 7 A. 0. 673, p. 585. Cf. as to certifi- L. J., Ch. 908 ; Chunder Sein v. Eyan, cates that goods are lying ready for 5 L. T. 659. TiD WHOM SHOULD DELIVERY BE MADE. 563 (3.) Where a mercantile agent has obtained possession of any docu- Se ct. 504. ments of title to goods ty reason of his being or having been, with the consent of the owner, in possession of the goods represented thereby,- or of any other documents of title to the goods, his possession of the first-mentioned documents shall, for the purposes of this Act, be deemed to be with the consent of the owner. (4.) For the purposes of this Act the consent of the owner shaU be presumed in the absence of evidence to the contrary. 3. A pledge of the documents of title to goods shall be deemed to be a pledge of the goods {p). 4. "Where a mercantile agent pledges goods as security for a debt or liability due from the pledgor to the pledgee before the time of the pledge, the pledgee shall acquire no further right to the goods than could have been enforced by the pledgor at the time of the pledge (j). 5. The consideration necessary for the validity of a sale, pledge, or other disposition of goods, in pursuance of this Act, may be either a payment in cash, or the delivery or transfer of other goods, or of a document of title to goods, or of a negotiable security, or any other valuable consideration ; but where goods are pledged by a mercantile agent in consideration of the delivery or transfer of other goods, or of a document of title to goods, or of a negotiable security, the pledgee shall acquire no right or interest in the goods so pledged in excess of the value of the goods, documents, or security when so delivered or transferred in exchange. 6. For the purposes of this Act an agreement made with a mercantile agent through a clerk or other person authorized in- the ordinary course of business to make contracts of sale or pledge on his behalf shaU be deemed to be an agreement with the agent. 7. — (1.) Where the owner of goods has given possession of the goods to another person for the purpose of consignment {r) or sale, or has shipped the goods in the name of another person, and the consignee of the goods has not had notice that such person is not the owner of the goods, the consignee shall, in respect of advances made to or for the use of such person, have the same Ken on the goods as if such person were the owner of the goods, and may transfer any such lien to another, person. (2.) Nothing in this section shall limit or affect the validity of any sale, pledge, or disposition, by a mercantile agent. [p) TMs relates only to pledges by Liabilities not ripened into debts: " mercantile agents," Inglis ». Robert- Maenee v. Uorst, L. E., 4 Eq. 315; son (1898) A. 616. Blake v. BeHaat Discount Co., 5 L. K., I ^ nc 3 it II A i -r •■ Lr. 410; Jewau r. Whitworth, L. E., 2 (?) Cf. under the old Acts, Learoyd v. j, „„„ Eobinson, 12 M. & W. 745 ; Kalten>acli (;) ^^ city Bank v. Barrow, 5 A. C. V. Le-ffis, 24 Ch. D. 54; 10 A. 0. 617. 664. oo2 564 THE DELIVERY. Sect. 504. Dispositions hy Sellers and Buyers of Goods. 8. Where a person, having sold goods, continues, or is, in possession of the goods or of the documents of title to the goods, the delivery or transfer («) by that person, or by a mercantile agent acting for him, of the goods or documents of title under any sale, pledge, or other disposition thereof, or under any agreement for sale, pledge, or other disposition thereof, to any person receiving the same in good faith and without notice of the previous sale, shall have the same effect as if the person making the delivery or transfer were expressly authorized by the owner of the goods to make the same (t). 9. Where a person, having bought or agreed to buy goods (m), obtains with the consent of the seller possession of the goods or the documents of title to the goods, the delivery or transfer, by that person or by a mercantile agent acting for him, of the goods or documents of title, under any sale, pledge, or other disposition thereof, or under any agreement for sale, pledge, or other disposition thereof, to any person receiving the same in good faith and without notice of any Hen or other right of the original seller in respect of the goods, shall have the same effect (x) as if the person making the delivery or transfer were a mercantile agent in possession of the goods or documents of title with the consent of the owner (<). 10. Where a document of title to goods has been lawfully transferred (y) to a person as a buyer or owner of the goods, and that person transfers the document to a person who takes the document in good faith and for valuable consideration, the last-mentioned transfer shall have the same effect for defeating any vendor's lien or right of stoppage in transitu as the transfer of a bill of lading has for defeating the right of stoppage in transitu {z). Loss of marks mixture of goods ; con- signees tenants in common. 505. A question of difficulty sometiines arises in delivering goods owing to their identity having been lost. This may happen where goods of the same kind belonging to several different owners are carried together, and the marks on some of them become obliterated ; or where, being carried in bulk, the separations (s) Pledge to warehouseman, already in possession for vendor, witliout fresh deliyery, not protected : Nicholson v. Harper, (1895) 2 Ch. 415. {t) Sections 8 and 9 have heen again enacted by s. 25 of the Sale of Goods Act, 1893. («) It is not necessary that there be a memorandum of the purchase, satisfy- ing the Statute of Frauds : Hugill v. Masker, 22 Q. B. D. 364. As to hire and purchase agreements see Lee v. Butler, (1893) 2 Q. B. 318 ; Shenston v. Hilton, (1894) 2 Q. B. 452 ; Helby «v Matthews, (1895) A. C. 471. {x) As to the effect in defeating the right to stop the goods in transit, see Cahn V. Pookett's, &c. Co., (1899) 1 Q. B. 643, infra, s. 536. [y] See Cahn v. Pockett's, &c. Co., (1899) 1 Q. B. 643, infra, s. 636. (z) See, prior to the Act of 1877, Jenkyns v. Usbomfl, 13 L. J., C. P. 196 ; M'Ewan v. Smith, 2 H. L. C. 309. S. 10 has in effect, been re-enacted by s. 47 of the Sale of Goods Act,- 1893, . , TO WHOM SHOULD DELIVERY BE MADE. 565 between 'them are T)roken up ; or where packages containing the Sect. 505. goods are burst, so that the different bulks, or parts of them, become mixed together. In such cases the rule adopted is that the several owners become tenants in common in the confused or mixed goods, in proportion to the quantities which should have been delivered to them respectively. And a division of the goods, or their proceeds, on that basis should be made. In Spence ®. Union Marine Insurance Co. («), the action was brought on a policy on forty-three bales of cotton shipped in the Caroline Nasmyth, on a voyage from Mobile to Liverpool, averring a total loss. The vessel had been wrecked on the Florida reef ; and the cargo, of cotton, was brought into Key West, all more or less damaged; many of the bales broken, and the marks and numbers on others obliterated. Some of the bales were lost, and some so damaged that they had to be sold at Key West ; the remainder were sent on to Liverpool in another vessel. Of 2,493 bales with which the Caroline Nasmyth sailed, 617 arrived in Liverpool in such a state that they could be identified, and were delivered to the consignees ; 1,645 were sold at Liver- pool, the marks being so obliterated by sea-water that they could not be identified as belonging to any particular consignee; and 231 bales were either lost on the reef or sold at Key West. Of the forty-three bales, in respect of which the action was brought, only two could be identified at Liverpool. These were delivered. The plaintiffs gave notice of abandonment of the forty-one to the underwriters ; and claimed to treat them as totally lost. The underwriters claimed to be liable to the plaintiffs only for a pro- portion (forty-three to 2,493) of the value of the cotton which was actually lost. The considered judgment of the Court in favour of the under- writers was delivered by Bovill, C. J., and was based on the grounds shown iu the following passage : — " We must, thus necessarily, consider what is the effect of the obliteration of marks upon various goods of the same description which are shipped in one vessel, and which without any fault of the owners become so mixed that one part is undistinguishable from another; and it seems to us not altogether immaterial to inquire in whom the property in the goods is vested under such (a) L. E., 3 0. P. 427. Of. Smurthwaite v. Hannay, (1894) A. 0. 494, per Lord Hussell, p. SOS. 566 THE DELIVERY. Sect. 505. circumstances, or wlietlier they become bona vacantia, and pass to ' the first finder or to the crown. In endeavouring to arrive at a conclusion upon that subject, we should be guided by any direct authorises, as well as by analogous cases in our own law, and by the principles of law which have been laid down and established in our Courts ; and, as the rules and principles of our mercantile and maritime law are in a large measure derived from foreign sources, we gladly avail ourselves of the codes and laws of other countries, and especially of the Roman Civil Law, to see what amongst civilized nations has usually in like cases been considered reason- ■ able and^just. " In our own law there are not many authorities to be found upon this subject ; but as far as they go, they are in favour of the view that, when goods of different owners become by accident so mixed together as to be undistinguishable, the owners of the goods so mixed become tenants in common of the whole, in the pro- portions which they have severally contributed to it. The passage cited from the judgment of Blackburn, J., in the case of the tallow which was melted and flowed into the sewers, is to that effect: Buckley v. Gross (6). And a similar view was adopted by Lord Abinger in the case of the mixture of oil by leakage on board ship, in Jones v. Moore (c). It has long been settled in our law, that, where goods are mixed so as to become un- distinguishable, by the wrongful act or default of one owner, he cannot recover, and will not be entitled to his proportion, or any part of the property, from the other owner ; but no authority has been cited to show that any such principle has ever been applied, nor indeed could it be applied, to the case of an accidental mixing of the goods of two owners ; and there is no authority nor sound reason for saying that the goods of several persons which are accidentally mixed together, thereby absolutely cease to be the property of their several owners, and become bona vacantia. The goods being before they are mixed the separate property of the several owners, unless, which is absurd, they cease to be property by reason of the accidental mixture, when they would not so cease if the mixture were designed, must continue to be the property of the original owners ; and, as there would be no means of distin- guishing the goods of each, the several owners seem necessarily to become jointly interested, as tenants in common, in the bulk. (6) 3 B. & S. 574. {e) 4 T. & 0. 361, TO WHOM SHOULD DELIVERY BE MADE. 567 This is the rule of the Eoman Law as stated in Mackeldey's Sect. 50S. Modem Civil Law, under the title commixtio et confusio, in the special part, Boot I. s. 270. In the English edition of 1845, at p. 285,. the passage is as follows: — 'The mixing together of things solid or dry {commixtio) or of things liquid {confusio) which belong to diEEerent owners, has no effect upon their rights in the things, if the latter can he separated. If, on the other hand, such separation is not practicable, then the former proprietors of the things now connected will be joint owners of the whole, whenever the mixture has been made with the consent of both parties, or by accident.' " We need not discuss the distinction sometimes made between commixtio and confusio, apparently upon the ground that it is possible to separate the individual solid particles, but not the liquid ; because, in cases like the present, it is impracticable, and for all business purposes therefore impossible, to distinguish the particles in respect of ownership. The passages in Mr. Justice Story's work on Bailments, s. 40, and ia the 9th volume of Pothier, ' De la Confusion,' as well as the French and various other codes, are to the same effect. We are thus, by authorities in our own law, by the reason of the thing, and by the concur- rence of foreign writers, justified in adopting the conclusion that, by our own law, the property in the cotton of which the marks were obliterated did not cease to belong to the respective owners ; and that, by the mixture of the bales, and their becoming undis- tinguishable by reason of the action of the sea, and without the fault of the respective owners, these parties become tenants in common of the cotton, in proportion^ to their respective interests. This result would foUow only in those cases where, after the adoption of all reasonable means and exertions to identify or separate the goods, it was found impracticable to do so. We cannot assume that the whole of the plaintiff's forty-one bales were amongst those that were destroyed, any more than we can assume that they all formed part of the 1,645 which were brought home; and we see no means of determining the extent of the interest of the several owners, except by adopting a principle of proportion, and which would, we think, be equally applicable in determining the plaintiff's portion of the 231 bales that were totally lost as of the 1,645 which arrived in this country, though without marks. 568 THE DELIVERY. Sect. 505. " The principle of proportion is that which was applied by Lord EUenborough, where one gross sum was paid to a broker in respect of two debts due to different principals without distinguishing how much was paid in respect of each: Favens v. Bennett {d). It is also the principle adopted in cases of general average, and of jettison, where it is not known whose goods are sacrificed, as stated by Oassaregis and Emerigon in the passages that were quoted in the argument ; and we think it is the proper principle to apply to this case." (rf) U East, at p. 41. CHAPTER XV. STOPPAGE IN TRANSITU. 569 SECT. Nature of the right ,.. 506 Effect of the exercise of it 507 Buyer must be insolvent 508 Meaning of transit 509 Delivery order to buyer does not end transit 510 Delivery to carrier — General ship — Chartered ship 511 Buyer's own ship , 612 Carrier may become agent for buyer — Notwithstanding his own lien . 513 Cases as to constructive possession . 514 Part delivery generally insufficient. 615 Delivery by one carrier to another to forward 516 Delivery by carrier to a wharfinger or warehouseman 517 Buyer must intend to take delivery 518 And carrier must mean to part with possession to buyer — Cannot pro- long transit by improper deten- tion 519 Delivery to buyer's agent to forward — Agent definitely instructed and destination notified to seller — Transit continues , , 520 "Where no notification of further destination to seller, transit ends. 521 Where notice of a further destina- tion given to seller, but agent re- quires further instructions 622 Bight of purchaser to intercept goods during transit, and so end it 523 Sale of Goods Act, 1893, s. 45 523a The right is exercised by vendor, or sub- vendor 624 Agents who have bought with their own money have the right 625 SECT. Lien of shipper does not give the right 526 Effect of part payment or of giving acceptances by buyer 527 Consignment to factors 528 Notice to stop must come from vendor or authorized agent , , . . 629 Must be given to those who have custody of the goods — Opinions in Kemp v. Falk 630 Sale of Goods Act, 1893, s. 46 . . . .530a Duty to deliver to vendor — May vendor follow goods in hands of buyer's assignee ? 531 Right to stop defeated by transfer of bUl of lading for value-^Lick- barrow v. Mason 532 Grounds of the rule 633 Assignment of goods without transfer of bill of lading — Assig- nor must have bill of lading — Jenkyns v. TTsborne — Opinions in Kemp V. Palk as to the rights of sub-purchasers 634 Other documents of title — Sale of Goods Act, 1893, s. 47 635 The document must have been effectually transferred 636 Transfer of bill of lading without assignment of goods insufficient.. 537 Transfer must be for value — Past debt enough — In good faith — Notice of insolvency 538 Is an assignment after notice to stop given effectual ? 639 Eight of vendor subject to pledge or mortgage 640 Eight of vendor where sub-pur- chaser has not paid 641 506. The right of an unpaid vendor to stop the goods while they Nature of the are in course of transit, in the event of the purchaser becoming "^ 570 THE DELIVERY, Sect. 506. insolvent, gives rise to so many questions in connection witli the delivery of goods, that it will he well to discuss it in some detail. A vendor who has shipped goods, and parted with the hiU of lading, has still a right, if he remains unpaid, to regain possession of the goods while they are in transit, in the event of the buyer becoming insolvent. This is called the right of stoppage in transitu, and it is exercised by giving notice of the claim to those who have custody of the goods, before the transit comes to an end. The right is defined as follows by sect. 44 of the Sale of Goods Act, 1893 : " Subject to the provisions of this Act, when the buyer of goods becomes insolvent, the unpaid seller who has parted with the possession of the goods has the right of stopping them in transitu, that is to say, he may resume possession of the goods as long as they are in course of transit, and may retain them until payment or tender of the price " («). This right may be regarded as an extension of the Tmpaid vendor's lien on the goods for the price of them. But it differs materially from a lien at law, for it is exercised after the possession and the rights of possession have been parted with ; and it only comes into existence upon the happening of a new event — the buyer's insolvency. It has been called an equitable lien, adopted by the law "for the purposes of substantial justice " (b). Not required An Unpaid vendor of goods has a lien upon them for the price ; vendor's lien he may retain them in his possession until they are paid for, though re ame . ^-^^^ j^^^^^ become the property of the purchaser. If he parts with the goods he loses this lien, unless he does so in such a way as to reserve to himself the right of possession. That he may do, it would seem, by shipping the goods under a bill of lading which mates them deliverable to his own order, and by keeping control of the bill of lading (c) ; and if this has been done, no need of the right to stop in transit arises. And, generally, no question as to the right to stop goods in transit arises unless the property in the goods has passed from the vendor. This should be borne in mind in considering the cases ; (a) See also s. 39 of the Eame Act. Gibson v. Carruthers, 8 M. & W. 320, (i) Per Lord Kenyon in Hodgson v. and per Boweu, L. J., in Kendall v. Loy, 7 T. K. p. 446. Wiseman v. m-_.j,^„ ,, O R n t, ■?«« Vandeputt, 2 Vem. 203 (1690), seems to ^'''^^^^^' " «• ^- ^- P" 368. be the earliest reported decision in W Shepherd v. Harrison, L. E., 4 favour of the right. See the Hstory of Q- B. 196, p. 206 ; L. E., 6 H. L. 116, the subject stated by Lord Abinger in p. 126; Blackburn, Sale (2nd), p. 321. STOPPAGE IN TRANSITU. 571 for the two questions of right of property and right to stop in Sect. 506. transit often get mixed up together. 507. The vendor does not, by stopping the goods, regain the EfEeotofthe property in them, nor does he thereby cancel the sale. In general, ^^^'^'^'^^ he merely recovers the right to hold possession until the price is paid ; and, in the case of perishable goods, to resell after notice to the buyer and failure by him within a reasonable time to pay or tender the price {d). An.d the right is subject to the possessory Kens of the carrier, warehouseman, or others, which have been acqiiired for charges in respect of the goods. But it is not subject to any general lien which the earner might have had, as against the consignee, in respect of freights due on other goods (e). Nor is it subject to a general lien of the consignee's factor, into whose hands the goods have come as pledgee (/). And in Smith v. Gross {g) it was held that the vendor's right was paramount to that of a creditor of the vendor who had attached the goods, while in transit, by process out of the Mayor's Court of London. But the vendor's right is confined to the goods themselves in the condition in which they are ; he has no claim to insurance monies received in respect of them (A), 508. The right to stop only comes into existence when the buyer Buyer must has become insolvent. The exact meaning of that has not been ^® "^sol'^e'it- defined; but it is not necessary that he should have been found insolvent («). The question seems to be, has he ceased to be able to pay his debts as they become due ? In Schotsmans v. Lancashire and Yorkshire Eailway Co. (/), the buyer dishonoured his acceptance in the hands of the vendor on the day the ship arrived; the vendor at once gave notice to the master of the ship to stop the goods. Three days later the buyer dishonoured another acceptance, and five days later he was declared bankrupt. The notice to stop was held to be good. " It is suffi- cient for the purpose of stoppage in transitu to show that the (fC) Sale of Goods Act, 1893, s. 48. {h) Bemdtson v. Strang, L. E., 3 Ch. [e) A custom among carriers to the 688. contrary would be invalid : Oppenheim (i) Per Dr. Lushington, The Tigress, V. KusseU, 3 B. & P. 42. 32 L. J., Ad. p. 101. ij) L. R., 1 Eq. (g) 1 Camp. 282. another point, L. R., 2 Ch. 332. (/) Spalding II. Ruding, 12 L. J., Ch. 503. iS) L. R., 1 Ec[. 349; reversed on 572 THE DELIVERY. Sect. 508. vendor was in such circumstances as not to he able to meet Ms engagements " (^). But a mere failure on the part of the vendee to remit bankers' drafts in payment of the price of the goods, as agreed, does not entitle the vendor to stop them (l). Meaniag of 509. In the transit, or transitus, of the goods, two ideas are in- transit. . . „ 1 . 1 , volved. First, the goods are in transit from the time they leave the vendor's hands until they get into the possession of the buyer. But, secondly, at the time of the sale, or before the goods have left the vendor, it may have been agreed, or the buyer may have notified, that the goods were to go to some particular destiaation before being taken possession of by the buyer ; and if so, they will be in transit while on their way to that intended destiuation. Thus the transit of the goods continues, on the one hand, while they are on their way to the intended destination, although they may on their way have come into the hands of the buyer, or his agents, for the purpose of sending them forward ; and it continues, on the other hand, after the goods have reached the intended des- tination, until they have come into the possession of the buyer or his servants, or of agents who hold them for him, with his autho- rity, and for the purpose of dealing with them in accordance with his sole instructions. If the buyer has become bankrupt, his representative stands in his place for this purpose (»*). The cases upon the subject are numerous, but few or none of them deal with the whole question. The general result seems to be what is stated above, but a number of minor points are involved. to^b^er dotT ^^°' ^^® ™^^® ^^°* *^^* *^® vendor has placed the goods at the not end buyer's disposal, while they still were in the vendor's possession, will not destroy his right to stop them during a transit which afterwards takes place, before they actually get to the buyer. In Jackson v. Nichol («), Maltby & Co., of London, had bought some lead from the plaintiff at Newcastle, through their agent there, one CrawhaU. Usually Crawhall held lead so purchased for them in his own possession until he got their shipping instructions, but on this occasion he allowed the lead to lie at the vendor's [Tc) L. R., 1 Eq., at p. 360. (m) ElKa i>. Hunt, 3 T. R. 464. (t) "Wilmshurst v. Bowker, 7 M. & a. («) 6 Bing. N. C. 608. Cf . Cooper v. 882. BUI, 34 L. J., Ex. 161. STOPPAGE IN TRANSITU. 573 works. On January 5th, 1837, the vendor gave Orawhall an order Sect. 510. addressed to one of the men at the works instructing him to deliver the lead to Crawhall's order. On January 7th, Orawhall wrote oh this order, " Deliver the above to the bearer to go on board The Esk," and then handed it to wharfingers, who were also the owners of The Esk, a trading vessel between Newcastle and London. The lead was taken on board, but before it had been delivered in London Maltby & Oo. failed, and the vendor sought to stop it. It was held that there had not been such a delivery to OrawhaE as to end the transit. " "We think the order given by the plaintiff to deliver the lead to the order of Orawhall, and the subsequent order by Orawhall to deliver it to the bearer (who was the keelman) ' to go on board The Esk,' did not amount to any taking possession by Orawhall, but merely formed a hnk in the chain of the machinery by which the lead was put in motion, and in a course of transmission from the seller's premises in Newcastle to the buyers in London." 511. Delivery of the goods by the vendor to carriers, for the Delivery to purpose of their being carried, will not end the transit, even though the carriers be named or employed by the buyer. " The contract with a carrier to carry goods does not make the carrier the agent or servant of the person who contracts with him"(o). Indeed, the need of employing a carrier imports that the goods are to go to some other destination before possession is taken of them by the buyer. " When the vendor knows that he is delivering the goods to someone as carrier, who is receiving them in that cha- racter, he delivers them with the implied right, which has been established by the law, of stopping them so long as they remain in the possession of the carrier as carrier " [p). Thus delivery of the goods on board a general ship, to be carried G-eueral ship to her destination, does not end their transit {q) ', nor does a delivery on board a chartered ship, whether chartered by vendor Chartered" ■ or vendee, even though the vendee has chartered and sent her for ^ ^' the special purpose of receiving the goods (r). (o) Per Cotton, L. J., Ex parte Eoae- [q) Ex parte Golding, Davis & Co.,"' vear China Clay Co., 11 Ch. D. 560, at Ee Knight, 13 Ch. D. 628 ; Bethell v. p. 571. Clark, 19 Q. B. D. 553 ; 20 Q. B. D. (p) Per James, L. J., in Ei parte 6.16. Eosevear China Clay Co., 11 Ch. D. 560, [r] Ex parte Eosevear China Clay Co. , at p. 668. Of. Oowasjee v. Thompson, 11 Oh. D. 560 ; Eraser v. Witt, L. E., 5 Moo. P. 0. 165. 7 Eq. 64 ; Berudtsou v. Strang, L. E., 574 THE DELIVERY. • Sect. 511. And it makes no difference wliether the destination of the ship was known to the vendor or not, for she was clearly intended to have some other destination than that of the port of loading. In Ex parte Eosevear China Clay Co. (s), the vendors agreed to sell 100 tons of china clay, to he delivered by them free on board at Par or Fowey. The buyer instructed them to deliver to a vessel at Fowey, which he had engaged verbally ; and this was done by the vendors, without any communication to them of the vessel's destination. It was held that the clay was stiU in transit. In Bethell v. Clark if), the purchasers instructed the vendors to consign the goods " to The Darling Downs, to Melbourne, loading in the East India Docks here," and they were accordingly sent to the docks via the London and North Western Railway Co. The railway company put them on board the vessel, and delivered the mate's receipt to the purchasers. It was held that the goods were stiU in transit. In Lyons v. HofEnung (u), the buyer had instructed the sellers to send the goods to Howard Smith & Co.'s wharf in Sydney, for shipment in The Gambia, on their way to Kimberley. They were sent, and receipts obtained which were handed to the buyer, who had arranged for the shipment, and he obtained a bill of lading from Howard Smith & Co. in exchange for the receipts. It was held that the goods were still in transit on the voyage. For it was intended by the purchaser at the time of the purchase that the goods should " pass direct from the possession of the vendors into the possession of a carrier to be carried " to the destination then intimated; and there was no ground for saying that Howard Smith & Co. ever received or held the goods except as carriers. The fact that the property may have passed to the buyer upon delivery to the carrier was immaterial. Buyer's Qwn 512. But if the ship be chartered by the buyer upon such terms as make over the complete control of her to him, the master and crew becoming his servants, an Tmconditional delivery on board to the master is a delivery to the buyer, and the transit is at an end. In Fowler v. Kymer " the bankrupts. Hunter & Co., were in i Eq. 481 ; 3 Ct. 588; Bohtliugk v. («) 11 Ch. D. 560. Inglis, 3 East, 381. But see Cowden- beatli Coal Co. v. Clydesdale Bank, 22 (') ^^ ^- 2- ^- 553 ; 20 Q. B. D. 615. Sess. Oa. (4tli) 682. («) \5 x. C. 391. STOPPAGE IN TEANSITU, 575 possession of a ship let to them for a term of three years, at Sect. 512. 521. 10s. per month, they finding stock and provisions for the ship, and paying the master; during which time they were to have the entire disposition of the ship, and the complete control over her. The ship had been one voyage to Alexandria, and had the goods put on hoard her to carry them on another voyage to the place ; not for the purpose of conveying them from the plaintiffs to the bankrupts, but that they might be sent Jy the bankrupts upon a mercantile adventure, for which they had bought them. There the delivery was complete " («). The same was held to be the case in Schotsmans i). Lancashire and Yorkshire Railway Co. (y), where the ship belonged to the buyer of the goods ; although she had not been sent specially for them, and was trading on the voyage as a general ship. The vendor, at Eouen, had shipped flour upon the buyer's instructions in The Londos, one of a regular line of steamers running between Eouen and Groole, and advertised as belonging to Watson, OunlifEe & Co. The Londos, in fact, belonged to the buyer, whose name was Cunliffe, though he had bought the goods under the name of James Fort & Co. The bill of lading for the flour made it deliverable to James Fort & Co., or assigns. The seller sought to stop the flour in transit, on Cunliffe's insolvency, but it was held that the delivery of the goods to the master was a complete delivery to Cunliffe. For the master was his servant; and the delivery had been without condition or restriction. It was, however, considered in that case that the seller through his agents knew that The Londos belonged to the buyer, and had that not been so, the decision might have been different. " It would seem to be scarcely just to a person who has delivered goods to be carried to a consignee under the belief that he could exercise the ordinary right of an unpaid vendor over them, to deprive him of that right because he had ignorantly placed the goods on board the consignee's own vessel, and therefore must be taken to have made an absolute delivery of them " (a). There does not seem to have been any agreement or notice, in that case, from which the seller could properly infer that posses- sion of the goods would only be taken by the buyer, as such, at IngsfrEarrp'i^r^"'''"^'^- (^) PerLordCheln.sford,L.K.,2Ch. (y) L. K., 2 Ch. 332. »* P- 335- 576 THE DELIVERY. Sect. 512. Goole. If this were not so the case would seem to conflict with others in which it has been decided that a delivery to the buyer's agent, for the purpose of his forwarding them, does not end their transit ; unless, indeed, there is a distinction in this respect between a servant and an agent (a). Carrier may gjg^ ^ Carrier may, however, alter his relation to the buyer for buyer. before actual delivery of the goods to him. He may cease to be a carrier, and become instead the buyer's agent to hold the goods for him. His possession then becomes, constructively, that of the buyer. "A case of constructive possession is where the carrier enters expressly or by implication into a new agreement, distinct from the original contract for carriage, to hold the goods for the consignee as his agent, not for the purpose of expediting them to the place of original destination, pursuant to that contract, but in a new character, for the purpose of custody on his account, and subject to some new or further order to be given to him " (b). In Foster ®. Frampton (c), the purchaser of the goods sampled them at the carrier's warehouse, and desired him to keep them there until he received further directions. It was held that from that time the carrier became a warehouseman for the buyer, and that the transit was at an end. In Jones v. Jones (d), eighty quarters of wheat were shipped under a bill of lading in The Orion, bound for Barmouth and Tremadoc, to be delivered " at the aforesaid port of Earmouth and Tremadoc " to the vendee or assigns, on paying freight. By an undated indorsement on the bill of lading, the vendee directed delivery of the wheat to be made to the plaintiff, " being one of my assignees, to be disposed of as he may think proper." The vendee by deed dated January 28th, 1840, assigned all his estate and effects to the plaintiff and another, in trust for themselves and his other creditors. On the 4th of February, 1840, The Orion arrived at Barmouth, and the plaintiff went on board ; produced the bill of lading, indorsed as above ; took samples of the wheat, with which he sold seventy quarters of it ; and had these seventy quarters, on which he paid the freight, landed and delivered to the purchaser. (a) See infra, s. 520. J). 356 ; Pooley r. Or. E. Hail. Co., 34 (J) Per Parke, B., in Whitehead v. L. T. 637 ; Ex parte Catling, Ee Chad- Anderson, 9 M. AW. 518, at p. 535. As -wick, 29 L. T. 431; Ex parte Gouda, to a railway company's notice that the 20 W. E. 981. goods are held by the company as ware- (o) 6 B. & C. 107. housemen: Kendal v. Marshall, 11 Q. B, - {d) 8 M. & W. 431. STOPPAGE IN TEANSITU. ^'l^'^ He directed tlie master to take the remaining ten quarters forward Sect. S13. to Portmadoc, tlie nearest port to Tremadoo. These acts were held to show that the plaintiff took possession and dominion of the whole of the wheat at Barmouth, and that the transit of the whole was ended. The ten quarters were held by the master for him. The carrier may hecome the buyer's agent, so as to end the transit, without any express agreement or instructions, by implica- tion from the course of business between him and the consignee ; as where the carrier has habitually stored the consignee's goods in his own warehouse on their arrival at a certain place and held them there for the consignee, and subject to his orders (e). And it seems that this may still be the case, although the carrier, Notwith- as such, has a lien upon the goods (/). " I think it is possible to carrier's Hen. make an arrangement by which, though the freight is not paid, the shipowner changes himself into a warehouseman instead of being a carrier or a shipowner ; he alters his responsibilities altogether ; and yet by arrangement or agreement retains his lien over the goods until the freight is paid. I think such a contract might be made. But when one is asked to say that such a contract was made, the non-payment of the freight is a very important element leading one to say that no such contract was made at all " {g). 514. On the other hand, in Whitehead v. Anderson (h), an agent Cases as to for the buyer had got on board the ship upon her arrival, though before she was completely anchored, and had told the captain that he had the bill of lading, and was come to take possession of the cargo. He saw and touched part of the cargo. The captain said he would deliver to him when he was satisfied about the freight ; and the agent paid a part of the freight, but not the whole. It was held that the buyer had not obtained constructive possession, so as to defeat a subsequent notice from the unpaid vendor stopping the cargo. " It appears to us to be very doubtful whether an act of marking or taking samples, or the like, without any removal from the pos- session of the carrier, so as though done with the intent to take possession, would amount to a constructive possession unless accom- («) Wentworth v. Outhwaite, 10 M. & {g) Per Lord Blaokburu in Kemp v. W. 436 ; Allan v. Gripper, 2 0. & J. 218 ; palk, 7 A. 0. 573, at p. 684. Eowe V. Piokford, 8 Taun. 83; infra, B. 617. (A) 9 M. & W. 518. See also Hoist v. (/) Allan V. Gripper, mpm. Pownall, I Esp. 240. C. — c. p p 578 THE DELIVEET. Sect. 514. panied with such, circumstances as to denote that the carrier was intended to keep, and assented to keep, the goods in the nature of an agent for custody" («). Again, in Coventry v. Grladstone (k), the plaintiffs, who held bills of lading for a quantity of linseed shipped in The Granges, had on her arrival obtained an "overside" order from the brokers of the ship, addressed to the chief officer on board, for delivery of the lin- seed to them. This order was presented to the chief officer by the plaintiffs' lighterman. The ship had not then broken bulk, but the officer promised that when the goods on top of the seed had been got out, and the seed was clear, it should be delivered to the lighterman. In the meantime, notice was given to stop the goods. Wood, V.-C, held that this was not too late. The plaintiffs had not obtained constructive possession. " At the time when the notice was served the original duty of the captain was not termi- nated, nor was it converted into a new duty to retain the goods as agent for the consignee " (/). '^enerau'^^^'' 515- It was Said by some of the judges in Crawshay v. Eades, insufficient, that a Complete delivery of part of an entire cargo puts an end to the transit of the whole (m). But this view cannot be supported now ; not, at any rate, where the cargo consists of things which are in their nature separate from one another («). The portion undelivered remains in the hands of the carrier as such ; his duties with regard to it are not at an end. " The case might possibly be different if the whole of the cargo had been one entire machine, because if a person was allowed to take possession of one piece of a machine that might amount to possession of the whole " (o). The question seems to be one of intention in each case; and ordinarily it may be presumed that, in delivering a part, the only intention was to deliver a part. But if both parties intend the delivery of part to be a delivery of the whole, so that thence- forward the carrier is to hold the remainder as a mere agent or warehouseman for the consignee, then it is in effect a delivery of the whole. " It is not such a delivery unless it is so intended, (i) Per Parke, B., 9 M. & W., at («) Ex parte Cooper, Ee McLaren, 11 WL.E.,6Eq.,atp.51. 446 ; 7 A. C. 673. (m) 1 B. & C. 181 ; and see Slubey v. (») Per Cotton, L. J., 11 Ch. D., at Heyward, 2 H. Bl. 604. p. 75. STOPPAGE IN TRANSITU. 579 and I rather think that the onus is upon those who say it was so Sect. 515. intended" (p). 516. If the original carrier delivers the goods to some other Delivery by person that they may he forwarded on their journey, the transit auotiTer^to stiU continues. Thus, in Mills t\ Ball (g), goods were sent -hy forward, water to Exeter, consigned to Gard (the purchaser), who lived twenty-five miles from Exeter, and who had ordered the goods to be sent to him. The carrier delivered them at Exeter to a whar- finger, to be forwarded to Gard. It was held that they were in transit in the wharfinger's hands (r). He had received them on Gard's account, and had paid the freight and charges on them for him ; but he was considered to be a middleman between the buyer and the seller, "not having been particularly employed by the vendee " (s). 517. If the carrier delivers the goods at their intended desti- Delivery by nation to some person other than the buyer, as to a wharfinger or -wharfinger or warehouseman, the transit stiU continues, unless he takes as agent ^arT*^""^^" for the buyer. If the wharfinger receives them for the consignor, or for the carrier, the transit continues until the buyer has obtained delivery, either actually, or constructively by getting an effective delivery order on the wharfinger, and depositing it with him (t). Thus, where wine had been landed and was kept in the hands of the Customs under the excise law, owing to the consignee having failed to pay the duties on it, it was still in transit (u). In Ex parte Barrow, In re Worsdell («), goods had been sent by vendors from London to Falmouth by one of the British and Irish Steam Packet Company's steamers, consigned to Worsdell, the buyer. On arrival they were landed and taken to the wharf of Came & Co., who were wharfingers and agents for the company at Ealmouth. Meantime Worsdell had absconded, and the vendors gave notice to Carne & Co. to stop delivery of the goods. By their contract with the company Carne & Co. took on themselves (p) Per Lord Blaotbum in Kemp v. (<) Harman i". Anderson, 2 Camp. 243 ; Pali, 7 A. C. 673, p. 586. Laokington v. Atherton, 13 L. J., C. P. /.\ 2 B & p 457 1*0. See Dixon v. Yates, 5 B. & Ad. 313 ; Imperial Bank v. London and (r) See also Hodgson v. Loy, 7 T. E. gt. Katharine's Dock Co., 5 Ch. D. 195. 440 ; Smith ». Goss, 1 Camp. 282 ; BetheU („) ^orthey v. Pield, 2 Esp. 613 ; Nix V. Clark, 19 Q. B. D. 653 ; 20 Q. B. D. „. oUve, Abbott (Sth), 393 ; (13th), 616. 7„_ (s) PerLordAIvanley, 7T.R.,p.461. {x) 6 Ch. D. 783. p p2 580 THE DELIVERY. Sect. 517. the duty of communicating witli consignees and delivering goods to them. The goods were placed in their warehouse and they lay there suhjecfc to the orders of the consignees, on payment of the freight and warehouse rent (if any). It was held that the transit was not at an end. There had been no communication with WorsdeU, and Carne & Go. could not constitute themselves his agents. While, on the other hand, they were acting as agents for the Steam Packet Company to collect the freight. The question in such cases seems to be, Are the goods held on the express or implied instructions of the buyer, and to his sole order? As we have seen above («/), the carrier may, according to the usual course of business, hold the goods, at the destination, as the buyer's agent; and thus by implication the transit may be terminated. So it may be shown from the usual course of business that the wharfinger, &c. to whom the goods are delivered takes, or holds them, as the agent of the buyer. Thus, in Dodson v. Wentworth (2), bales of flax were, by the bill of lading, to be delivered at the port of Boroughbridge, for Weatherald, Michley Mill, near Eipon, or his assigns; and the bales were addressed to Michley Mill. On arrival at Borough- bridge they were warehoused by the boat owners, in the warehouse of the Canal Navigation Company ; and it appeared that this was the usual course with Weatherald's goods when his carts were not ready to receive them. The Navigation Company held goods so received by them to the orders and at the risk of Weatherald, and without charge. It was held that the transit of the flax came to an end on delivery to the Navigation Company. So, where the delivery was to the buyer's packers, by whom the goods were held subject to his control and directions, the transit was held to have ended {a). In Ex parte Gibbes (S), cotton was shipped by vendors from Charleston to Liverpool, via New York, on a through bill of lading. The cotton had been sold to E. Whitworth & Co., Spinners, who carried on business at Boy Mill, Luddenden Foot, near Halifax ; and the vendor's invoice described it as shipped "to Liverpool, consigned to order for account and risk of E. Whitworth & Co., [y) Supra, s. 513. (a) Leeda v. Wrigtt, 3 B. & P. 320 ; Soott V. Petit, 3 B. & P. 469. But of,, {z) 12 L. J., C. P. 59. And see Ousack Hunt v. Ward, cited 3 T. E. 467. V. EoWnBon, 30 L. J., Q. B. 261. (J) 1 Ch. D. 101, STOPPAGE IN TRANSITU. 581 Luddenden Foot." The bill of lading and a draft upon WMt- Sect. 517. worth & Co. for the price were sent to the vendor's agents in Liverpool, and upon the draft being accepted by Whitworth & Co. the agents sent them the bill of lading. That was the ordinary course of trading : and Whitworth & Co. were in the habit of indorsing and sending bills of lading so received to one Windle, the Manager of the Lancashire and Yorkshire Eailway Company, at the North Docks Station, Liverpool. The railway company then paid the freight for Whitworth & Co., took possession of the cotton, and carried it on their railway to Luddenden Foot. That course was followed in the present case. But before Whitworth & Co. had obtained actual possession of the cotton they filed a liquidation petition, and the vendors sought to stop the cotton in transit. Bacon, C. J., held that this could not be done, on the ground that the destination of the goods was Liverpool, and that Windle was the agent for Whitworth & Co. to pay the sea charges, and to receive the goods there. " The transitus which took place after that was only prescribed by the purchaser ; the vendor had nothing to do with it." 518. But the delivery to persons who usually act as agents for Buyer muBt . intend to the buyer wiU. not end the transit unless the buyer iatended them take delivery, to take delivery for him. Even though he expressly instructed them to take the goods and warehouse them, if his intention was not to take to the goods himself but to assist the shipowner or protect the vendor, the transit wiU still continue (c) . " If the order was given to land at the wharf with intent to make it the place of deposit for the goods as the bankrupt's own property, at which place he meant to deal with them as his own, to sell to his customers, or to give them from thence a fresh desti- nation, doubtless the transitus was at an end. The wharf became the warehouse of the vendee, and the landing there was a taking possession. * * * * Qq ^}^q other hand, if his intention in landing the goods had been to make the wharfinger an instru- ment of further conveyance to his own warehouse, then the transitus stOl continued ; or if the goods were placed there with the intention of preventing any liability on his part to the captain for demurrage, and that they might remain in medio, or that they might remain for the benefit of the owners, the transitus had not (c) James v. Griffin, 2 M. & W. 623 ; Hutchings v. Nunes, 9 L. T., N. S. 125. Of. Heinekey v. Eaile, 28 L. J., Q. B. 79. 582 THE DELIVERY, Sect. 518. ended; they had not arrived at the end of their journey; they were not actually delivered to the vendee, or one who was an agent of his, for the purpose of keeping possession on his account" (d). So, also, where the buyer refused to take delivery heoause he ohjeoted to the quality of the goods, while, on the other hand, the vendor refused to take them back, they were still in transit in the hands of the carrier (e). ,In that case the goods were lying at a railway station, consigned to the buyer by the vendor, and the buyer's servant had, without his knowledge, taken part of the goods away from the station. But these had been at once returned by the buyer, and he had on the same day consigned the whole of the goods back to the vendor, and taken a receipt for them from the stationmaster. These acts did not end the transit. And in James v. Griffin (/), it was held that it was immaterial that the buyer's intention not to take to the goods himself had not been communicated to the wharfinger who took delivery under his directions. And carrier 519. Again, in order to end the transit, by a delivery to a part with'^ wharfinger, the carrier must intend when making the delivery to possession to g-^g ^]^g wharfinger possession for the buyer ; and even where the goods are landed on the buyer's own premises, the transit is not at an end if the carrier did not mean to part with possession of them until the freight had been paid(g'). In Edwards «;. Brewer (A), the master of the vessel which brought the goods, having pressed for instructions as to landing the goods, was told by a clerk of the consignee that he was away, but that the goods had better be landed at Griffin's wharf on his account. This was not the usual landing place for the consignee's goods. The master landed the goods at Griffin's wharf, and they were by his direction entered in the wharfinger's book without any consignee's name and with " freight and charges " set opposite to them ; which meant that these were to be paid to the wharfinger before delivery. It was held that the goods were still in transit ; on the grounds that the (d) Per Parke, B., in James v. Griffin, (g) Crawshay v. Eades, 1 B. & C. 181. 2 M. ScW. 623, at p. 634. And see LoesohmantJ. Williams, 4 Camp. (e) Bolton v. Lane. & York EaU. Co., 181. But of. Allan v. Gripper, 2 0. & L. E., 1 C. P. 431. J. 218. (/) 2 M. & W. 623. (A) 2 M. & W. 375. STOPPAGE IN TRANSITU. 583 consignee did not intend to receive them at the wharf, and that Sect. 519 . the master did not intend to deliver to him until the freight was paid. The carrier must not, however, refuse improperly to deliver the Cannot pro- • n • . . ^ long transit goods ; and he cannot, by wrongfully detammg them, prolong the by impoper transit, so as to extend the period within which they may he ^ "^ ^°°' stopped. Where the consignees had tendered the freight at the port of destiuation, and would have got possession hut for an unauthorized claim by other parties, to whom the goods were delivered, it was held that the transit was at an end, so as to defeat a subsequent stoppage authorized by the unpaid vendor (i). 520. Next, we have to consider cases iu which there has been a Delivery to buyer s agent delivery to an agent of the buyer, who receives them for the to forward. purpose of forwarding them to a further destiuation. And first, as to cases in which the agent receives under definite instructions, and the further destination has been definitely notified to the vendor. In Ooates v. Eailton (/f), goods had been bought from the Wbere agent plaintiffs by the defendants, acting as agents at Manchester for structed and certain merchants in London, who also had a house at Lisbon, notified to At the time of purchasiusr the defendants informed the plaintiffs ^®^'?? " t'^™^'* , continues. that the goods were to be sent to Lisbon, as on former occasions. The goods were dehvered to the defendants, who had them calen- dered and made up. They were to have forwarded them to Liverpool, to be shipped to the Lisbon house ; but the priucipals stopped payment, and the goods remained with the defendants. Held, that the fact that the defendants were general agents as well as warehousemen made no difference ; and the goods haviug been delivered to them by the sellers, for the purpose of being forwarded to Lisbon, the transit was not at an end. " The principle to be deduced from these cases is that the tran- situs is not at an end until the goods have reached the place named by the buyer to the seller as the place of their destination " (l). In Nicholls v. Le Eeuvre (m), Le Oouteur, who carried on business in Gruernsey, bought some bales of goods in London and (i) Bird v. Brown, 19 L. J., Ex. 54. {1} Per Bayley, J., 6 B. & C. at See, however, Jackson v. NicM, 5 Bing. P- *27. Cf . per Brett, M. E., Ex parte N. C. 608 Miles, Re Isaacs, 15 Q. B. D. 39, at p. 43. (A) 6 B. & 0. 422. (ot) 2 Bing. N. C. 81. 584 c THE DELIVERY. Sect. 520. directed the vendors to forward them to Guernsey, addressed " Le Couteiir, Guernsey, care of Le Feuvre, Southampton." Also he wrote to Le Feuvre asking him to ship the goods to Guernsey, and Le Feuvre received the goods at Southampton for that purpose. It was held that the transit continued while they were in his hands. In Eodger v. Comptoir d'Escompte de Paris (w), goods had heen purchased from three Manchester firms hy Lyall and Still, of London, for their £rm at Hong Kong, where they traded as Lyall, Still & Co. It was part of the contract of sale in two out of the three cases, but not in the third, that remittances of proceeds of sale should he made from Hong Kong, to meet acceptances of the buyers for the price of the goods. Lyall & Still employed shipping agents in London to secure tonnage in The Min, a vessel then on the berth for Hong Kong, and they contracted with these agents for the carriage from Man- chester to Hong Kong at one through freight. When the tonnage was secured Lyall & Still directed the vendors to forward the goods to the shipping agents for shipment in The Min. This was done, and after they had been shipped the buyers became insolvent. It was held in the Privy Council that the transit had not ended. " The document in evidence, as well as the oral testimony in the present case, establish beyond doubt that Hong Kong was the destination agreed upon between the vendors and vendee, and the other parties who intervened for the purpose of having the goods forwarded to their destination had them in charge for that purpose only. Their Lordships, therefore, entertained no doubt that the transitus had not ended before the arrival at Hong Kong " (o). And, d fortiori, that would be the case if there were an express stipulation as to the destination in the contract of sale {p). Where no 521. In these cases the destinations notified to the vendors were notmcatiou of further deati- definite, they knew both the persons and the places to which the seUer, transit goods were to be Sent. Moreover, the agents of the buyers received the goods for definite purposes ; there was no need of fresh instruc- tions as to whom, or to what place, they were to be sent. If the ulterior destination has not been notified to the vendor at (n) L. R., 2 P. 0. 393. , , ^ (0) L. R., 2 P. C, at p. 404. See also ^^ ^^ P^^'° yTB.imji, Re Love, 5 Ch. Gliddon v. Peek, Times, July 7th, 1885. ^- 35- ends. STOPPAGE IN TRANSITU. 585 all, the transit is at an end when the goods have got to the pur- Sect. 521. chaser's agent, even though he has only been employed to receive them for the purpose of forwarding them to a defined destination. In Kendal v. Marshall Stevens & Co. (q), the goods were pur- chased at Bolton. The purchaser afterwards arranged with the defendants, who were carriers and forwarding agents at Grarston, that the goods should he sent to them from Bolton, to be shipped as soon as possible by one of their regular line of steamers to Rouen, at a through rate from Bolton to llouen, and he instructed the vendors to "mark bags Dl and upwards and send to Marshall Stevens & Co., Garston." The goods were forwarded to Garston by railway, and on arrival the railway company gave the usual notice to Marshall Stevens & Co. of the arrival, stating that they would hold as warehousemen. The goods remained in the company's shed awaiting the sailing of the steamer to Rouen, and before they had been shipped notice was given by the vendors to stop them. It was held by the Court of Appeal, overruling Mathew, J"., that the transit had come to an end. The instructions given by the purchaser as to a further transit to Rouen were quite apart from those given to the vendors ; " he did not direct Ward & Co. (the vendors) to deliver the goods to Marshall Stevens & Co. in order that they might be sent to Rouen. If a direction of that kind had been given the transit would have been from Bolton to Rouen ; but the fact is widely different " (r). Cotton, L. J., said : " In order to ascertain whether the right still exists it is necessary to look at the persons and the place to whom and at which, as between seller and buyer, the delivery is to be made The transit from the seller to the buyer is the only one to be considered in determining whether the seller can exercise his right of stoppage. For this purpose it is immaterial that the buyer, when the transit from the seller to him is at an end, starts them on to a fresh destination. This is a fresh transit, not from the seller to the buyer, but by or from the buyer." In Merchant Banking Company of London v. Phoenix Bessemer Steel Co. (.s),the vendor's contract was to deliver f. o. b. at Liver- pool or Hull, but it was afterwards arranged between the vendors and purchasers that a quantity of the goods should be sent by rail (q) 11 Q, B. D. 356. p. 365. Of. perBowen,L. J., at p. 369. (f) Per Brett, L. J., 11 Q. B. D., at (s) 5 Cli. D. 205. 586 THE DELIVERY. Sect. 521. to the care of the purchaser's agents at Liverpool, addressed to them at the London & North "Western Eailway there. This was done, and the railway company gave notice to the agents that the goods remained for their order, and were held hy the company as warehousemen. Jessel, M. E., held that the transit was at an end, for the rail- way company held the goods as warehousemen for the purchaser's agents. To the argument that the purchasers must be treated as agents fer the vendors, to carry the goods to the shipping port, he said, "There was in fact a new arrangement that the pur- chasers were to convey the goods to the shipping port on their own account; they were to get some payment, hut it was no longer the vendors who were to convey, and the transit to the shipping port was only a possible transit. They did not know whether the goods would be ultimately shipped or not." The question whether the transit ends on a delivery to the purchaser's agent cannot, he added, be solved a priori ; it depends upon the intention of the parties {t). Where notice 522. But cases occur of greater difficulty, where the buyer has destination instructed the vendor to send the goods to an agent, but has also buTaffent^*"^' i^fo^'Hied the vendor that his intention in doing so is to have them requires forwarded to a further destination. In such a case, the question further instructions, whether the transit comes to an end when the agent has received the goods, seems to turn upon the inference to be drawn from the buyer's notice to the vendor of the intended destination ; and also upon the completeness of the buyer's instructions to his agent when the latter received the goods. If it has been agreed, expressly or impKedly, between the vendor and purchaser that the goods shall go to a further desti- nation [u) ; or, if the agent has been employed for the purpose only of forwarding the goods, and has had complete instructions with regard to that, so that he receives them only for the definite purpose of sending them on to the destination already ap- pointed (a) ; the transit will in either case not be at an end. Eut if there is no express or implied agreement as to the further destination, (Did the agent receives the goods for other purposes than that merely of forwarding them, or with instruo- [t) 5 Oh. B. 205, at p. 219. oompte de Paris, L. R., 2 P. C. 393. (m) Ex parte Watson, In re Love, 6 [x] E.g., Nioholls v. Le Eeufre, 2 Ch. D. 35 ; Rodger v. Comptoir d'Es- Bing. N. 0. 81 ; supra, s. 520. STOPPAGE IN TRANSITU. 587 tions "with regard to tliat which are incomplete, so that he must Sect. 522. take and hold them for the huyer until he shall again set them in motion, then generally the transit is at an end when the goods have got into the agent's actual or constructive possession. In Dixon v. Baldwen (y), trover was hrought for eighteen bales of cotton twist supplied by the defendants, dealers at Manchester, on the order of the Battlers, traders in London. The course of business had been tbat goods so ordered were sent by the defen- dants to Metcalfe & Sons, at Hull, for the purpose of being shipped to the correspondents of the Battlers at Hamburgh. When the goods arrived at Hull, the Metcalfes received orders from the Battlers when and to whom to ship the goods at Hamburgh. On the occasion in question, the Battlers had ordered the goods to be packed in bales, marked in a particular manner, and "to be forwarded to Messrs. Metcalfe & Sons to be shipped for Hamburgh as usual." The goods were sent to Metcalfe & Sons; but the Battlers afterwards stopped payment, and the defendants got possession agaio. on giving the Metcalfes an" indemnity; It appeared that the Metcalfes were at the time waiting for the orders of the Battlers as to the goods ; four bales had indeed been shipped in expectation of orders, but they were re-landed asno orders came. It was held by three judges (Grose, J., dissenting) that the transit ended on delivery to the Metcalfes at Hull. " The goods had so far gotten to the end of their journey, that they waited for new orders from the purchaser to put them again in motion, to communicate to them another sub- stantive destination, and that without such orders they would continue stationary" (2). So, in Valpy v. Gribson (a), Brown of Birmingham ordered goods from the defendants, telling them that they were for the Valparaiso market, and that he was buying on commission for a correspondent. On his instructions the defendants sent the goods to Leech, Harrison & Co., of Liverpool, who were shipping agents employed by him to receive and forward the goods to Valparaiso. It was held that the transit ended on their receipt of the goods. " "With regard to the right of stoppage in transitu, it appears to us that though the defendants knew the goods were to be sent to Valparaiso, and so informed Leech, Harrison & Oo. when they {y) 6 Bast,. 175. p. 186. (z) Per Lord Ellenborougli, 5 East, at (a) 16 L. J., 0. P. 241. 588 THE DELIVERY. Sect. 5SS. forwarded them to Liverpool, yet that Leech, Harrison & Co. could not simply on that information forward the goods to Valparaiso, hut that they held them suhjeet to such orders as Brown might give as to forwarding them to Valparaiso, or else- where, and the transitus was consequently at an end as soon as the. goods came to the hands of Leech, Harrison & Co." (6). In Ex parte Miles, In re Isaacs (c), the goods had been ordered hy Isaacs (trading in London as Elkin & Co.), who bought on commission for Morrice & Co., of Kingston, Jamaica. The order was sent to Turner & Co., the vendors, hy letter, as follows : — " Inclosed we beg to hand you two orders of boots and shoes for this mark, which be good enough to execute, and advise us when we may expect delivery." And in the margin of this letter was a mark consisting of the letters " E. M.," with the words " Kingston, Jamaica," added. Turner & Co. were aware from previous transac- tions that Morrice & Co. had used this mark. Subsequently, on September 11th, Elkin & Co. instructed Turner & Co. to pack the boots " as usual numbering the packages as per margin upwards, and forward them at latest on the 13th inst. to Dunlop & Co., Southampton, advising them with particulars for clearance." This letter also had in the margia the mark " E. M.," with the number "1768," and the words "Kingston, Jamaica." On the 13th Turner & Co. sent particulars to Dunlop & Co. of the goods, " sent to your care per rail, which please forward as directed." These particulars described the packages as marked " E. M., Kingston, Jamaica," numbered " 1768 — 1793," and to be shipped per "Moselle ; " but the columns for " consignee " and " destination" were left blank. On the 14th, Elkin and Co. sent particulars to Dunlop & Co. of the packages " forwarded to your care per rail for shipment per steamer of the 17th last. " ; and these particulars stated that the consignees were to be Morrice & Co., and the destination Kingston, Jamaica. The goods were apparently received by Dunlop & Co. (but whether before or after the instructions as to forwarding does not appear in the report) ; and they were shipped by them in the- name of Elkin & Co. After the ship had sailed Elkin & Co. failed ; and Turner & Co. stopped the goods in transit. It was held by the Court of Appeal that they were not entitled to do so ; for the transit came ^ an end at Southampton {d). (i) 16 L. J., C. P., at p. 249. M Brett, M. E., said: "It is said that (c) 15 Q. B. D. 39. that (Elkin & Co.'s letter of Sept. 11th) STOPPAGE IN TEANSITU. 589 523. Where goods have been despatohed by a vendor under a Sect. 523. contract of sale wMch stipulated that they should go to a particular Eight of destination, the buyer is not entitled to divert or intercept the fntercept'^*" goods on their way thither : and should he do so, it would pro- s°°^^. ^™& 11111111 transit, and bably be held that he could not in that way defeat the unpaid so end it. vendor's right to stop the goods, even though he had obtained actual possession of them (e). But where there has not been any agreement requiring the vendee to send the goods or allow them to be sent to this or that place, the mere fact that he has notified his intention that they should go to such and such a place, and has instructed the vendor to send them there, wiU not prevent him from intercepting them while on their way ; and he may at any time end the transit by taking possession of them, with the intention of keeping them or diverting them to another destination. is an order to Turner & Co. to forward the goods to their destination in Jamaica. Well, the case mainly depends upon ■whether that is a true interpretation of the letter. Whether a direction to send the goods to Jamaica is an order to send them to their destination. Now, what is meant hy sending goods ' to their destination ' ? It seems to me that it means sending them to a particular place, to a particular person who is to receive them there, and not sending them to a particular place without saying to whom." And subsequently he continued: — " As a matter of business it is impossible to say that Dunlop & Co. could properly hare shipped the goods for Jamaica withont receiving further orders as to the person to whom they were to ship them. They were to receive directions from the purchasers as to the person to whom they were to ship them, and the purchasers were to communicate to them another substantive destination. The first destination was to Dunlop & Co., at Southampton, it being part of the bargain that Turner & Co. were to pay the cost of the carriage to Southampton inside the invoice price — ^the invoice price was to include that. Elkin & Co. only told Turner & Co. that the goods were going to Jamaica, they did not direct them to give the order to Dunlop & Co. to send them to Jamaica ; they reserved that for themselves. The goods, there- fore, 'waited for new orders from the purchasers to put them again in motion, to communicate to them another sub- stantive destination, and without such orders they would continue stationary.' The goods were, therefore, at their journey's end when they reached South- ampton. " But it is said that the place of the destination of the goods was known to Turner & Co., although the name of the person to whom they were to be sent was not known. That is a new point, but I have not the least difficulty in deciding it. The 'destination' of these goods did not mean sending them to Jamaica. In business ' destination ' means that you must give not only the name of the place to which, but also the name of the person to whom, goods are to be sent. Dunlop & Co. could not send these goods forward to their ' destina- tion,' that is, to the person who was to' receive them at a particular place, with- out receiving a further order from the purchasers as to the name of the person to whom they were to go. The case, therefore, seems to me to be within the authority of Dixon v. Baldwen (5 East, 175)." (e) See Ex parte Watson, In re Love, 5 X/h. D. 35 ; per James, L. J., at p. 43. 590 THE DELIVERY. Sect. 523. Formerly it was held that this could not be done ; that, for example, a consignee had no right to go out to sea to meet the ship, and so take possession before the end of the voyage (/). But later cases have overruled that view. We have seen (g) that a consignee may end the transit by making a new agreement with the carrier, such as to put him con- structively into possession of the goods, the carrier becoming his agent (h). He may also end it by taking actual possession ; and it has been said that he may do so even against the carrier's con- sent. " If the vendee take them out of the possession of the carrier into his own before their arrival, with or without the consent of the carrier, there seems to be no doubt that the transit would be at an end : though, in the case of the absence of the carrier's consent, it may be a wrong to. him for which he would have a right of action" (i). In Yalpy v. Gibson (k) goods had been shipped by the buyer's agents for a destination which had been named to the vendor, but they were afterwards re-landed by the agents on the buyer's in- structions, and were sent to be re-packed. It was held that, in causing the goods to be re-landed, and sending them to be re- packed, the purchaser dealt with them as owner, and acquired the possession as well as the property in them ; and that that would certainly put an end to the transit if it had not already been deter- mined by the original delivery to the agents. On the other hand, it was held in Smith v. Goss (l), that an attachment of goods in transit, by process out of the Mayor's Court of London, at the suit of a creditor of the vendee, did not defeat the vendor's right to stop and claim the goods. Sale of Gooda 523a. The law on this subject of the duration of the transit is g_ 45_ ' now codified by sect. 45 of the Sale of Goods Act, 1893, which is as follows : — " (1) Goods are deemed to be in course of transit from the time when they are delivered to a carrier laj land or water, or other bailee (or custodier), for the purpose of transmission to the buyer, until the buyer, or his agent in that behalf, takes delivery of them from such carrier or other bailee (or custodier). (/) Hoist V. PownaU, 1 Esp. 240. (i) Per Parke, B., in Whiteheaa v. (p) Supra, s. 513. Anderson, 9 M. & W., at p. 634. (/i) As to tlie carrier's responsibility to the consignor, see L. & N. "W. Rail. W ^^ ^- J-> '^- ^- ^H- Co. V. Bartlett, 31 L. J., Ex. 92. {t) 1 Camp. 282. STOPPAGE IN TRANSITU. 591 " (2) If tte buyer, or his agent in tliat behalf, obtains delivery of the Sect. 523a. goods before their arrival at the appointed destination, the transit is at an end- " (3) If after the arrival of the goods at the appointed destination, the carrier or other bailee (or custodier) acknowledges to the buyer, or his agent, that he holds the goods on his behalf, and continues in possession of them as bailee (or custodier) for the buyer, or his agent, the transit is at an end, and it is immaterial that a further destination for the goods may have been indicated by the buyer. " (4) If the goods are rejected by the buyer, and the carrier or other bailee (or custodier) continues in possession of them, the transit is not deemed to be at an end, even if the seller has refused to receive them back. ' ' (5) When goods are delivered to a ship chartered by the buyer it is a question, depending on the circumstances of the particular case, ■whether they are in the possession of the master as a carrier, or as agent to the buyer. "(6) Where the carrier or other bailee (or custodier) wrongfully refuses to deliver the goods to the buyer, or his agent in that behalf, the transit is deemed to be at an end. " (7) Where part delivery of the goods has been made to the buyer, or his agent in that behalf, the remainder of the goods may be stopped in transitu, unless such part delivery has been made under such circumstances as to show an agreement to give up possession of the whole of the goods." 524. The right of stopping goods in transitu is, in the first in- The right is stance, that of the vendor who started the goods upon that transit, yendoror ^ and it is exerciseable hy him as against his purchaser, upon his sub-vendor, insolvency, without paying for the goods. But if the goods have been re-sold during the transit, each sub-vendor has, as against his purchaser, a similar right of stopping the goods before the transit comes to an end (m) ; while, as we shall see hereafter, each vendor loses that right when the buyer who has purchased from him transfers the goods, and the bill of lading for them, to a sub- purchaser. 525. The Courts have given a literal meaning to the word Agents who vendor in relation to this right. A foreign agent who has for ^^^thM commission purchased goods on his own credit, or with his own P^'^ money T . have the money, on the orders of a pnncipal in this country, to whom he right. has shipped them, is entitled to stop them in transit if the principal becomes insolvent (m). So, also, may a merchant here who has (m) Jenkyns v. Usborne, 7 M. & Q-. («) Feise d. Wray, 3 East, 93 ; Birds. 678 ; 13 L. J., C. P. 196. Brown, 19 L. J., Ex. 154 ; per Hellish, 592 THE DELIVERY. Sect. 5S5. purehased goods on commission, upon the orders of correspondents abroad, and has shipped to them (o). In The Tigress (p), a merchant at Liverpool who had, on his own credit, bought corn at New York on the order of a buyer at Bristol, to whom he charged a commission, was allowed to exercise the right. In Tucker v. Humphrey (§'), agents in England who bought goods with their own money for a principal, also in England, to whom they shipped them, were allowed the same right. In Ex parte Cooper (r) it was held to be no valid objection to a stoppage that the vendee was also a member of the firm which had sold and shipped the goods. And in Newson v. Thornton (s), a stoppage was allowed of goods which had been shipped on the joint account of the shippers and the consignee. In SifEken v. Wray (t) Lord EUenborough appears to have con- sidered that one who had become a surety for the price of the goods, by accepting the vendor's drafts against them for the buyer's accommodation, was not entitled to stop the goods in transit upon the buyer becoming insolvent. . If, however, a surety were to pay the price of the goods, he would, by the Mercantile Law Amendment Act, 1856 (ti), be entitled to stand in the place of the vendor, and to use all his remedies — so that he would apparently have the right to stop the goods in transit. Lien of 526. The fact that a shipper of goods had a lien upon them not give the before he shipped does not confer upon him the right of stopping "^ ■ them in transit. By parting with the goods he parts with his right to have possession of them. In Sweet «?. Pym («), Pym, a fuller, who had by custom a lien upon certain goods in his posses- sion belonging to one Gard, for a general balance due to him from Grard, shipped the goods to London in accordance with Gard's orders. No bill of lading was signed for them. Afterwards, hearing of Gard's bankruptcy, Pym overtook the ship before the end of the voyage, and induced the captain to sign a bill of lading to his order, and he obtained delivery of the goods from the L. J., Ex parte Banner, In re Tappen- {q) i Bing. 616. teck, 2 Ch. D. 278, at p. 289. (^j U Cji_ jy gs. (o) Per Lawrence, J., Peise v. Wray, , , „ -^ . „ 3 East, at p. 101 ; per Brett, M. R., in ^' ' Ex parte Miles, In re Isaacs, 15 Q. B. D. (') ^ ^^^'' ^'^'^■ 39, at p. 42. (m) 19 & 20 Vict. o. 97, s. 5, (p) 32 L. J., Ad. 97. {x) 1 East, 4. STOPPAGE IN TRANSITU. 593 captain on their arrival in London. It was held that he had no Sect. 526. right to have possession of them. 527. The right to stop goods in transit is not prejudiced by the Efleeot of part fact that the buyer has partly paid for them (y), or has bought of^l^g""^ them on credit, or given acceptances for them which have not yet aooeptanoes matured (s) ; even though these acceptances have been negotiated by the vendor, and are outstanding [a) . If, however, the vendor has agreed to take something else than money, such as goods or bUls, iu absolute payment of the price, he will, on receiving them, cease to be an unpaid vendor, and will lose the right of stopping the goods in transit. In Woods V. Jones [b), it was held that a consignor is entitled to stop goods in transit, although he has goods of the insolvent consignee in his hands, and although it is uncertain how the balance of the account between them will turn out. One Bright- man, in England, had consigned goods to the plaintiffs at Quebec for sale on his account. Before these goods were sold the plain- tiffs shipped three cargoes of timber to Brightman, but not specifi- cally against the consignments from him. They drew upon him against the third cargo, and he dishonoured the bill ; their agent in England therefore gave notice to stop the cargo. It was held that the plaintiffs were entitled to do so ; they were not bound to wait until their account with Brightman was liquidated. But in Yertue v. Jewell (c), where the consignor was at the time of the shipment indebted to the consignees, after taking into account a number of bills still running which had been accepted by them for him, it was held by Lord EUenborough, and the Court in banc, that the consignor had no right to stop the goods in transit on the consignee's bankruptcy ; and that the non- payment of the bills by them could not be considered. The goods had in that case been consigned on account of the balance due to the consignees ; and Lord EUenborough subsequently, in Patten v. Thompson {d)., said that in the case of Vertue v. Jewell the in- dorsement of the bill of lading was in the nature of a pledge to cover the acceptances (e). in) Hodgson V. Loy, 7 T. E. 440. (i) 7 D. & K. 126. («) FeiBe v. Wray, 3 East, 93 ; Edwards {e) 4 Camp. 31. V. Brewer, 2 M. & W. 376. (d) 5 M. & S. 360, (a) Ibid. But of. Bmmey v. Poyntz, («) But see the remarks on tie case in 4 B. & Ad. 668. Benjamin on Sales (3rd), p. 823. C. C. Q Q 594 . THE DELIVERY. Sect. 528. 528. Kinlocli ». Craig (/) was a case of a consignment by Consignment merchants to factors, who had accepted outstanding drafts to a to factors. ^^j,^^ amount, against consignments, including the one in question. Both merchants and factors became bankrupt, and the represen- tatives of the merchants got possession of the goods before they had ever come into the possession of the factors. It was held in all the Courts that they were entitled to keep them. Eyre, C. B., in delivering the opinions of the judges to the House of Lords, said that the transaction being between principal and factor, and not between vendor and vendee, the consignees could have no property in the cargo, and the right of stoppage in transitu was not in question. The consignees had no lien, because they had not had possession. Notice to stop 529. In order to be valid the notice stopping the goods in from vendor transit must come from the vendor, or from some agent authorized agenf"'^"^ to act for him in that behalf. In Bird v. Brown (g), the notice was given to the master at Liverpool, on the arrival of the goods, by the defendants, who were the holders of bills drawn against the goods ; and the master in consequence delivered to them. But they were not agents of the consignor, who was abroad, and they had received no authority from him to make the stoppage. After the goods had been delivered, however, a power of attorney which had been executed by the consignor before the stoppage arrived at Liverpool, by which one Joseph Hubback was authorized to stop the goods in transit, and he adopted and confirmed the acts of the defendants. It was held that the ratification by the consignor and his attorney did not make the defendants' act valid. For, to be effectual, such a ratification must be made within the time allowed for a stoppage, and here it had not been made until the transit had come to an end. On the other hand, in Hutehings v. Nunes (h), the Privy Council held that a stoppage made on behalf of the consignors by one to whom "they had written before the stoppage, giving him general authority, was vaM, although he did not receive the letter until after he had stopped the goods («'). In Morrison v. Gray {k), it was held that an indorsement of the bill of lading to an agent, to enable him to stop the goods in (/) 3 T. R. 119, 783. (i) Cf. Whitehead v. Anderson, 9 M. (?) 19 L. J., Ex. 154. & W. S18. {h) 9 L. T., N. S. 125. (J) 2 Bing. 260. STOPPAGE IN TRANSITU. 595 transit, entitled him. to sue in his own name for the value of the Sect. 529. goods, which the defendants had wrongly refused to deliver to him. 530. Again, the notice to stop the goods must he given to " the I* m"st be ± D D ^ given to those person " who has the immediate " custody " of them (l). That is, who have usually, to the master of the ship. Notice given to the shipowner, and l^l goods, transmitted hy him to the master, is sufficient (»*). But not unless, or until, it reaches the master («). There appears to be some un- certainty whether the shipowner is bound to forward such a notice. In Kemp v. Falk (w), goods had been shipped at Liverpool for Opinions in Calcutta, and notice to stop them was given by the vendor, who ^"'P*'- was also the shipper, to the shipowners at Liverpool, on July 27th, two days before the vessel arrived at Calcutta. On the 31st the owners telegraphed to their agents at Calcutta telling them to stop delivery unless the bill of lading was held for value. In fact it was held for value. On the 5th of August the vendor, through his agents at Calcutta, gave notice to the master. In the Court of Appeal, Bramwell, L. J., said : — " I think that there was no effec- tual stoppage in transitu until the master of the ship was told by the vendor's agents to stop the goods. I think that what took place at Liverpool amounted only to telling someone to stop the goods, not a stoppage «t transitu, and I cannot think that any duty was imposed on the shipowners at Liverpool to stop the goods. It seems to me that it would be monstrous to hold that the telling somebody else to stop the goods in transitu amounted to a stoppage in transitu" (o). This question was not of importance in that case, and was not discussed by the other Lords Justices ; nor in the House of Lords, except by Lord Blackburn. He, however, considered the stoppage was complete on July 31st, and laid down a different view of the law from that of Bramwell, L. J. He said (p) : " I had always understood that the law was that when you became aware that a man, to whom you had sold goods which had been shipped, had become insolvent, your best way, or at least a very good way, of stopping them in transitu was to give notice to the shipowner in order that he might send it on. He knew where his master was (I) Per Parke, B., in Whitehead v. Bethell v. Clark, 19 Q. B. D. 553 ; 20 Anderson, 9 M. & W. 518. Astonptice Q- 2- ^- "^IS- to consignees, see Phelps v. Comber, 29 W Kemp v. Falk, 10 Ch. D. 446 ; 7 ^•^•®^^- '(o)'uCh.D.atp.45S. (m) Litt V. Cowley, 7 Taunt. 168 ; (p) "7 A. C. at p. 585. Q Q 2 596 THE DELIVERY. Sect. 530. likely to he, and he miglit send if on ; and I have always been under the helief that although such a notice, if sent, cast upon the - shipowner who received it an ohligation to send it on with reason- able diligence, yet if, though he used reasonable diligence, some- how or other the goods were delivered before it reached, he would not be responsible. I have always thought that a stoppage, if effected thus, was a sufficient stoppage in transitu ; I have always thought that when the shipowner, having received such a notice, used reasonable diligence and sent the notice on, and it arrived before the goods were delivered, that was a perfect stoppage in transitu — consequently I think that when notice was given to the shipowners (and although they had signed the biU of lading instead of the master signing it, I do not think that that makes any diEEerence ; I only mention it to say that it -makes none) they were under an obligation to forward it with reasonable diligence, if they could, to the master." Sale of aoods 530a. The law on this subiect is now stated in sect. 46 of the Act, 1893, ."• . B. 46. Sale of Groods Act, 1893, which is as follows : — "(1.) The unpaid seller may exercise iis right of stoppage in transitu either by taking actual possession of the goods, or by giving notice of his claim to the carrier or other bailee (or custodier) in whose possession the goods are. Such notice may be given either to the person in actual possession of the goods or to his principal. In the latter case the notice, to be effectual, must be given at such time and under such circumstances that the principal, by the exercise of reason- able diligence, may communicate it to his servant or agent in time to prevent a deUvery to the buyer. " (2.) When notice of stoppage in transitu is given by the seller to the carrier, or other bailee (or custodier) in possession of the goods, he must re-deUver the goods to, or according to the directions of, the seller. The expense of such re-delivery must be borne by the seller." Duty to 531. We have seen that the shipowner is bound to deliver the vendor. goods to the persons rightfully entitled to them, provided they duly put forward their claims ; and that this is true with regard to a vendor who properly claims to stop goods in transit. Should the goods be delivered by the master to the vendee, after a valid notice to stop them from the vendor, the latter may claim damages from the master and the shipowner {q). Moreover, the master has no right to retain the goods upon the plea of holding them for the true owner when he shaU have been (q) The Tigress, 32 L. J., Ad. 97: on tort: see Pontifex ». Mid. KaU. Co. supra, SB. 469, 482. The claimis founded 3 Q. B. D. 23. STOPPAGE IN TEANSITU. 597 ascertained : " the right to stop means the right not only to Sect. 531. countermand delivery to the vendee, hut to order delivery to the vendor " (r). If, however, delivery be improperly made to the vendee, or to persons in whom his estate has become vested, the vendor may follow the goods, and claim them, or their value (s). But it does not seem equally certain that the vendor may follow May vendor . . I. 1 1 follow goods the goods after they have been delivered to assignees of the vendee, in hands of who have in good faith given value for them and obtained an assignee. assignment, though not La such a way as to defeat the vendor's right of stoppage. We shall see hereafter that that may be the position where there has been an assignment without a transfer of the bill of lading ; and it is open to question whether the vendor may not lose his right to claim the goods as against such assignees, when they have actually obtained possession of them, without notice of his claim. 532. The right of the vendor to stop the goods is liable to be Riglit to stop , . - o ^ in transit defeated by intervening rights of other persons. If, while the defeated by transit still continues, the purchaser assigns the goods and transfers ^^ ^j lading the bill of lading for them to one who gives value for them in ^°^ value, good faith, without notice that they have not been paid for, the vendor's right of stoppage is lost as agaiast that person. The rights of property and possession which the latter has bought become paramount to the dormant right of the unpaid vendor. This has been the recognised rule of law since the case of Lick- barrow V. Mason was last before the Court of King's Bench ; and it seems to have become so, not so much as the result of legal principles, as by the adoption of a mercantile practice which was found to be of general convenience and calculated to prevent fraud. The rule has now been extended to assignments of the goods coupled with transfers of documents of title other than biUs of lading ; and the operation of the rule has been defined by sect. 47 of the Sale of Groods Act, 1893 (t). It may still, however, be useful to trace its history, Lickbarrow v. Mason first came before the Court of King's Bench Lioktarrc-w v. in November, 1787 (u). It was an action of trover for a cargo of ^ °^' (»•) Per Dr. Lushington, 32 L. J., Ad. 349 ; reversed on another point, L. E., at p. 102. 2 Ch. 332. (i) Litt V. Cowley, 7 Taunt. 169 ; (<) See infm, s. 635. Bohtlingk v. Inglis, 3 East, 381 ; Schots- («) 2 T. R. 36 ; 1 Smith's L. C. (7ih), mans v. L. & T. Rail. Co., L. R., 1 Dq. 756. 598 THE DELIVERY. Sect. 532. corn, shipped at Middleburg by Turing & Son, on board a ship bound for Liverpool, by the order and directions and on account of Freeman, of Eotterdam. The master signed four bills of lading in the usual form, unto order or assigns. Two of these were indorsed by Turing & Son and sent by them to Freeman, with an invoice for the corn. Another was kept by Turing & Son, and the remaining one by the master. Turing & Son drew bills upon , Freeman for 477/., the price of the goods, which he accepted. He again drew bills for 520/. upon the plaintiffs and sent them the two bills of lading, together with the invoice, in the same state in which he had received them, the object being that the goods might be taken possession of and sold by the plaintiffs on Freeman's account. The plaintiffs accepted and paid the drafts for 620^. Before Freeman's acceptances became due he became bankrupt, and Turing & Son therefore indorsed the bill of lading which they had retained, and sent it with an invoice of the goods to the defendants, authorizing them to obtain possession for the benefit of Turing & Son. On the arrival of the vessel the defendants obtained the corn under this bill of lading and sold it. The plaintiffs demanded the corn from the defendants, and tendered them the freight and charges ; but did not offer to pay for it. Turing & Son had to take up their own drafts on Freeman, and had not been paid any part of the price of the corn. On these facts the Court («) decided that the transfer of the bill of lading to the plaintiEfs put an end to the right of Turing & Son to stop the goods. And the main ground of the decision seems to have been that otherwise the consignee would be enabled to commit frauds on third persons. " A bill of lading carries credit with it : the consignor, by his indorsement, gives credit to the biLL of lading, and on the faith of that money is advanced" {y). This decision was reversed in 1790 by the Exchequer Cham- ber (z). Lord Loughborough delivered the unanimous judgment of the Court, basing their decision on the ground that a transfer of a bill of lading conveys only the rights of the transferor ; so that the transferee takes subject to any right of the original vendor to stop the goods. In 1793 the case was brought before the House of Lords {a), {x) Ashhurst, BuUer & Grose, JJ. Nissen, 2 T. E. pp. 680, 681. (i/) Per Grose, J., at p. 715 ; of. the (z) 1 H. Bl. 357. observations on the case in Salomons v. {a) 6 East, 21. STOPPAGE IN TRANSITU. 599 and the opinions of the judges were taken. Ashhurst, BuUer and Sect. 533. Grose, JJ., repeated their opinions in favour of the plaintiffs, while Eyre, 0. J., G-ould and Heath, JJ., and Hotham, Perryn and Thomson, BB., advised in favour of the defendants. The House, "thinking the facts of the case were not laid before them in such a manner as to warrant a decision of the point of law, directed the cause to be tried again by a jury in order to remedy that defect" (S). It was accordingly tried again, and the jury found a special verdict (e), upon which the Court of Queen's Bench, understanding that the case was to be carried up to the House of Lords, again gave judgment for the plaintiffs without discussion. Another writ of error was brought, but it was abandoned, and it has since been the admitted doctrine that the consignee may, under such circumstances, confer an absolute right and property upon a third person, indefeasible by any claim on the part of the consignor (a). 533. It is difficult to arrive definitely at the grounds on which Grounds of that doctrine was admitted. The opinion of the large majority of the judges was against it; and probably the considerations with regard to it which have had the most weight and effect were those of policy and convenience. BuUer, J., in his opinion to the House of Lords, said, " In all mercantile transactions one great point to be kept uniformly in view is to make the circulation and negotia- tion of property as quick, as easy and as certain as possible. If this judgment stands no man will be safe either in buying or in lending money upon goods at sea." Lord Kenyon, in Salomons v. Nissen (e), a.d. 1788, said, in approval of the first decision of the Queen's Bench in Lickbarrow 1}. Mason, "that case was decided on principles of policy and common honesty ; it was there said that if the goods come into the hands of a third person for a valuable consideration, bond fide, and without notice, he shall not be prejudiced, because the consignor was so incautious as to trust the goods out of his possession without payment." (b) Abtott (Stt), p. 388 ; (13th), (<;) Abtott (5th), p. 389. It has not 703. See as to the effect of that judg- teen affected by the Bills of Lading Act, ment, per Lord Blaokbum in Sewell v. i855 : Kemp v. Caravan, Ir. E., 16 0. L. Burdiok, 10 A. C. 74, pp. 98 et seq. 216. . (c) 5 T. R. 683. Bsiov.Uupra, s. 487. («) 2 T. R. 674, at p. 679. 600 THE DELIVEKY. Sect. 533. And in the same cas^, Ashhurst, J., said (/) that the right to stop " does not hold in the case of an assignment of the bill of lading to a third person for a valuable consideration without notice, because the possession of the hill of lading hy the consignee makes him the visible owner of the goods, and would enable him to commit a fraud on a third person : such was the case of Lickbarrow and Mason." And. BuUer, J., there put it on the same ground (g). That was also the one point on which the judges who decided Lickbarrow v. Mason, in the Exchequer Chamber, felt a difficulty. Lord Loughborough, in delivering the judgment, said {h), " This argument has, I confess, a very specious appearance. The whole difficulty of the case rests upon it ; and I am not surprised at the impression it has made, having long felt the force of it myself. A fair trader, it is said, is deceived by the misplaced confidence of the consignor. The purchaser sees a title to the delivery of the goods placed in the hands of a man who offers them to sale. Goods not arrived are every day sold without any suspicion of distress, on speculations of the fairest nature. The purchaser places no credit in the consignee, but in the indorsement produced to him, which is the act of the consignor." In more recent times we find the same ground put forward. "In such a case, if the vendor is unpaid, one of two innocent parties must suffer by the act of a third ; and it is reasonable that he who, by misplaced confidence, has enabled such third person to occasion the loss, should sustain- it " («). The rule is an (/) 2 T. B.. p. 680. middleman to carry the goods from tie {^) See also per Lord Alvanley in unpaid vendor, Turing, to Freeman, his Oppenheim v. Russell, 3 B. & P. 42, vendee, but holding them as agent for p. 49 ; decided in 1802. Lickbarro-w. It was held, first, in Ee (A) 1 H. Bl. at p. 363. Westzinthus (5 B. & Ad. 817), and then (j) From the judgment of the Privy in Spalding v. Ending (6 Beav. 381), Council in Eodger v. Comptoir d'Es- that where the transitus was thus put compte de Paris, L. E., 2 P. C. p. 406, an end to by what was in reality only a citing Lickbarrow v. Mason. Lord pledge, the stoppage might be made Blackburn, in Sewell v. Bui'dick (10 available in equity so far as the rights A. 0. 74, pp. 100, 101), expressed a of the pledgee did not extend. Ithought, different view of the point decided in and still think, that the reason why the Lickbarrow v. Mason, and of the grounds stoppage could not be made available at of the decision. He said :— " The point law was because the shipowner no longer which I understand to have been decided held the goods as a middleman ; as the in Lickbarrow v. Mason (5 T. R. 683) transferee of the bill of lading for valu- was, that on the transfer of the bill of able consideration, and lon&fde so as to lading to Lickbarrow the goods ceased give him a security, whether by way of to be in transitu, the shipowner from mortgage or by way of pledge, had a that time no longer holding them as a legal property in the goods which he STOPPAGE IN TRANSITU. 601 instance of estoppel. The vendor hj putting the vendee in posses- Sect. 533. sion of the bill of lading, knowing that that is a document loj which the right to possession can ordinarily be transferred, is pre- cluded from setting up his right to possession as against a transferee of that right (y). 534. If the right of the sub-purchaser to have the goods, free Assignment from any claim to stop them in transit, depends upon the fact that without he gave credit to the consignee as holder of the bill of lading, it ^^1^^°^^^ might seem that he ought not to lose that right merely because no formal transfer of the bill of lading has been made to himself. If, for example, a bill of lading comprises a large quantity of goods, which are re-sold by the consignee in smaller lots, and paid for by the several sub-purchasers, it might seem that they ought all to be protected against a stoppage in transit, though the bill of lading may not have been transferred to any of them. This point appears, however, to be settled against such a view, by sect. 47 of the Sale of Goods Act, 1893 (k) ; and before the passing of that Act the authorities were in the same direction. In Davis v. Eeynolds (/), indeed, it was held to be unnecessary to prove the transfer of the bill of lading. The bill of lading was unstamped and could not be received in evidence, and Lord Bllenborough considered it enough to show that the consignees were purchasers of the goods in whom the property had vested, and that they had entered into a binding contract with the sub- purchasers (w). But in Akerman v. Humphrey («), a transfer of a shipping note Assignor for value, there being no bill of lading, was held noi to defeat the till of lading-. right of stoppage. One Dent had consigned hams and butter to Hutchinson, and sent him an invoice for them. The goods were shipped, on Dent's orders, by forwarding agents ; and they sent Hutchinson a letter signed by them, called in the report of the case a shipping note, which expressed that the goods were shipped by them for Hutchinson by order of Dent. Some evidence was conld enforce as against tlie shipowner." the transit is not ended by the transfer. This yiew does not seem reconcilable (/) Cf . per Lord Cairns in Goodwin v. with the cases. It may be asked why Eobarts, 1 A. C. at p. 490. a mere transfer of the biU of lading by {k) Infra, a. 535. the vendee (without attornment by the (l) 4 Camp. 267. shipowner) puts an end to the transit (m) See also Dick v. Lumsden, Peake, more than a transfer by the vendor does N. P. C. 189. 80. X'uither, the pledge cases show that (») IC. &P. 53. 602 THE DELIVERY. Jenkyns v, Usbome. Sect. 534. given that in the provision trade these shipping notes were used instead of bills of lading, and that loans were made upon them. Hutchinson obtained a loan from the plaintifE upon giving him the shipping note, and a delivery order on the wharfinger. Dent stopped the goods in transit upon Hutchinson's insolvency, and the plaintiff claimed them. Burrough, J., who tried the case, directed the jury that the shipping note did not amount to a bill of lading. " I do not think the shipping note from the nature of it is indorsable, and here, in point of fact, it is not indorsed; therefore, in my judgment, there was no change of property." And this ruling was upheld by the Court (o). In Jenkyns v. TJsbome (jo), John and Thomas Lloyd, of Leg- horn, shipped a cargo of beans to Hunter and Coventry, of London, in consequence of an order given by them. The Lloyds sent a letter of advice, an invoice, two bills of exchange, drawn on Hunter and Coventry for the price, and a single bill of lading for the whole cargo, to Hunter and Coventry, through the plaintiff, who was agent for the Lloyds in London. The bill of lading was to the shippers' order, and was indorsed by them in blank. One of the bills of exchange represented the beans actually ordered by Hunter and Coventry, the other represented an excess quantity which had been shipped. Hunter and Coventry declined to take this excess quantity, and refused to accept the bill for it. An arrangement was therefore made respecting it, between them and the plaintiff, shown by the following letter : — " Mr. Jenkyns. " London, 24th May, 184L " Sir, " The invoice per Agnes, Turcan master, from Leghorn, states 3,932 sacks beans, equal to supposed 983 quarters; the amount sterling for which bills have been drawn is 857^. 3«. 7d. As you have withdrawn from this amount 317/. 14s. Qd., we hereby acknowledge such a proportion of the said cargo of beans per Agnes, according to the said sum of 317/. 14s. Qd., the which you have accepted, to be yours, and herewith hand you order to receive the same, and should there be a difference in the calculating the sacks as per invoice, then you must bear such proportion. " (Signed) Hunter & Coventey." (o) Cf. supra, B. 600, infra, s. 535. {p) 13 L. J., C. P. 196. 603 STOPPAGE IN TRANSITU. The order referred to was as follows : — Sect. 584. " Captain Turcan, of The Agnes. « Sir, " Please deliver to the bearer one thousand four hundred forty-two and three quarters (1442f ) sacks of heans, ex Agnes. " Hunter. & Coventry. "London, 1841." The plaintiff accordingly accepted, and in due course paid the smaller bill ; and he sold his portion of the beans to one Thomas, undertaking to deliver them free of damage; and sent him Hunter and Coventry's letter of May 24th, and the delivery order. Thomas gave his acceptance for the price. Subsequently Thomas applied to the defendant for a loan, offer- ing the beans as security. The loan was made, and the defendant received the letter and delivery order ; Thomas explaining that the bill of lading for the whole cargo was held by Hunter and Coventry. Thomas afterwards stopped payment without haying met his accept- ance, and the plaintiff gave notice to the captain of The Agnes not to deliver ; but he did in fact deliver to the defendant, on an in- demnity. In an action against the defendant it was held that the plaintiff was entitled to stop the beans in transit, notwithstanding the transfer to the defendant for value (q). The question we are considering was touched upon, but not (j) Tindal, C. J. , in delivering the con- possession of the bill of lading, so as to he in sidered judgment of the Court, said : — a situation to transfer the instrument itself " The actual holder of an indorsed bill as the symbol of the property. In the of lading might, undoubtedly, by in- present case Thomas was not in posses- dorsement, transfer a greater right than sion of the bill of lading, but only had he himself has. It is at variance with the order on the captain to deliver the the general principles of law that a man goods on arrival. And when, under the should be allowed to transfer to another circumstances stated in the case, the a right which he himself has not. But order was handed over to the defendant, the exception is founded on the nature it appears to us that though an interest of the instrument in question, which in the contract passed to the defendant, being, like a bill of exchange, a negoti- the interest in the goods did not pass as able instrument for the general con- it would have done if the transfer had venience of commerce, has been allowed been by assignment of the bill of lading, to have an effect at variance with the but that the interest in the goods was ordinary principles of law. This opera- still liable to be defeated by the in- tion of a bill of lading, however, being solvency of Thomas, and the proper derived from its negotiable quality, exercise of the right of stoppage in appears to be oonflned to the case where the transitu.^' And see Craven v. 'Ilyder,'6 person who transfers'the right is himself in Taun. 433 ; Nix w. Oli've, infra, s. 536. 604 THE DELIVEKY. Sect. 534. decided, in Kemp v. Falk, when before the House of Lords (r). Opinions in A cargo of Salt, the hill of lading for which had been deposited S^to^the^^^'^' '^'^^^ bankers as security, had been sold " to arrive " to various rights of sub- gub-purchasers. The salt was delivered to the sub-purchasers and purchasers. , -"^ was paid for by them ; and no question arose as to their rights. But there was a dispute between the unpaid vendor and the trustee in bankruptcy of the vendee, as to who was entitled to the balance of the purchase-monies, after paying off the claim of the bank. And though the question of the rights of sub-purchasers to defeat the unpaid vendor's right to stop them was not material in that case, very important dicta on the matter were uttered. Lord Selborne said that, after indorsing the bill of lading to the bank, the original purchaser " can transfer no greater or better right than he has ; and the right which he has is a right subject to a stoppage in transitu in all cases in which the right of stoppage in transitu remains in favour of the original seller of the goods" (s). And again, the right of stoppage " could be in no way whatever affected or prejudiced by any dealings between the original insol- vent purchaser and persons purchasing under him without any title founded upon an indorsement of the bill of lading for value received" {t). And Lord Blackburn still more distinctly said: — "No sale, even if the sale had actually been made with payment, would put an end to the right of stoppage in transitu, unless there were an indorsement of the bill of lading. Why an agreement to sell, unless it was made in such a way as to pass the right of property in the goods sold, should be supposed to put an end to the equitable right to stop them in transitu, I cannot understand. I am quite clear that it does not " (m). On the other hand, Lord Fitzgerald said : — " Confining myseK to the facts of the case, I refrain from expressing any opinion how far a bond, fide absolute sub-sale for cash made whilst the goods were at sea, and without notice of the claim of the unpaid vendor, may or may not affect the right of stoppage in transitu, though the sub-sale be unaccompanied by an indorsement and delivery of the bill of lading to the sub- vendee" («). It is to be observed, with reference to the above dicta of Lord Selborne and Lord Blackburn, that the sub-sales in that case were (r) 7 A. 0. 573. («) 7 A. C. at p. 677. (d) At p. 578. (m) At p. 582. (x) 7 A. C. at p. 590. STOPPAGE IN TEANSITU. 605 of undivided portions of a tulk of salt, so that no property in the Sect. 534. salt passed by the sales, even if the property had not already vested by mortgage in the bank. Also, that the sub-sales were apparently made by persons who either did not hold the bill of lading, or did not do so on behalf of him for whom they sold. 535. The effect of a transfer of a bill of lading in defeating a other vendor's right of stoppage was extended to other documents of title of ytie. by sect. 10 of the Factors Act, 1889 (52 & 53 Yict. c. 45), which has been set out above {y). That section appears to contemplate that, without the transfer of a bill of lading or other document of title, an assignment of the goods would not defeat the right. And Sale of Goods now the necessity of a transfer of the document seems to be s. 47. ' definitely settled by sect. 47 of the Sale of Goods Act, 1893, which is as follows : — " Subject to the provisions of this Act the unpaid seller's right of lien or retention or stoppage in transitu is not affected by any sale, or other disposition of the goods which the buyer may have made, unless the seller has assented thereto. " Provided that where' a document of title to goods has been lawfully transferred to any person as buyer or owner of the goods, and that person transfers the document to a person who takes the document in good faith and for valuable consideration, "then, if such last-mentioned transfer was by way of sale, the unpaid seller's right of lien or retention or stoppage in transitu is defeated, and if such last-mentioned transfer was by way of pledge or other dis- position for value, the unpaid seller's right of lien or retention or stoppage in transitu can only be exercised subject to the rights of the transferee." The documents of title referred to are defined (sect. 62) by reference to the Factors Act, 1889, of which s. 1 (4) is as follows : " The expression * document of title ' shall include any bill of lading, dock warrant, warehousekeeper's certificate, and warrant or order for the delivery of goods, and any other document used in the ordinary course of business as proof of the possession or control of goods, or authorizing or purporting to authorize, either by indorsement or delivery, the possessor of the document to transfer or receive goods-thereby represented/' It thus appears that in order to defeat the right to stop in transit there must not only have been a sale or disposition of the goods by (y) S. 504. 606 THE DELITEEY. Sect. 535. the buyer, valid to transfer the property, or some property, in them, but also a transfer by the buyer of some document of title to the goods which has been " lawfully transferred " to him " as buyer or owner of the goods." The document 536. In order to defeat the vendor's right of stoppage by an been effe™tu- assignment of the goods, and a transfer of a document of title, feixed'^"'^" *^^* ™^®* ^^^® ^^^^ ^°- effective document (z). In Nix V. Olive («) one Fox had ordered a quantity of wine from vendors at Oporto, and they had shipped it under bill of lading for delivery to order or assigns. One of these, unindorsed, they sent to Fox in a letter, in which they said they had shipped the wine on his account, had sent a bill of lading, and had drawn upon him for the price. Fox accepted the draft, and allowed the wine on its arrival to go into the king's warehouse. Subsequently he sold it to the plaintiff, partly for cash and partly for an old debt. Shortly afterwards he became bankrupt, and the agents of the con- signors, having paid the duties, got possession of the wine. The plaintiff claimed it ; but Lord EUenborough held that the right of the consignors to stop it had not been lost. But where purchasers of goods to whom the property had passed got possession of the bill of lading, which was by arrangement held by the vendors, by means of a fraudulent representation that they had resold the goods, and then indorsed and delivered it to other persons as security for a debt, it was held that this put an end to the vendor's right to stop the goods in transit (6). "Here the possession was not only united to the previous ownership with the consent (however obtained) of the person temporarily entitled to it, but transferred for the express purpose of giving to the owner absolute dominion over his own property " (c). In Cahn r. Pockett's, &c. Oo. (d) it was' held by the Court of Appeal that a bill of lading had been " lawfully transferred " by the intending vendor to an intended buyer, within the meaning of sect. 47 of the Sale of Goods Act, 1893, although the delivery of it to him had been made subject to a condition which he failed to perform. The bill of lading, indorsed in blank:, had been sent by the vendor to the intended buyer with a draft for the price of the goods, for his acceptance. He did not accept the draft, as he was {zj Supra, B. 487. 219. (a) Abbott (Sth), 393 ; (13tli), 707. (c) L. R., 1 P. 0. p. 230. (4) Pease v. Gloaheo, L. K., 1 P. 0. [sj (1899) 1 Q. B. 643. STOPPAGE IN TRANSITU. 607 required and bound to do if lie kept the bill of lading (Sale of Sect. 538. Goods Act, 1893, s. 19 (3) ), but he transferred the bill of lading to persons who had agreed to buy from him. It was held that the right to stop the goods in transit was thereby defeated (e). («) The point that the delivery was conditional is not much discussed in the judgments. Collins, L. J. (p. 665), said : ' ' Mr. Cohen contended that in this case the bill of lading had not been 'lawfully transferred' to Pintsoher as buyer, inasmuch as it was not intended that the property should pass. But by sect. 11 of the Factors Act, 1889, 'The transfer of a document may be by in- dorsement, or where the document is by custom, or by its express terms, trans- ferable by delivery, or makes the goods deliverable to the bearer, then by delivery.' 'Delivery,' by the Sale of Groods Act, sect. 62, means ' voluntary transfer of possession from one person to another.' I think there can bono doubt whatever that the bill of lading which was indorsed in blank, was in. this case lawfully transferred to Pintsoher as buyer." But can delivery of a docu- ment upon the condition that it is to be returned, if the receiver fails to do a certain thing, be said to be a " voluntary transfer of possession ' ' of that document, where the condition is not satisfied ? It gives "actual custody," and therefore ' ' possession ' ' within the meaning of the Factors Act (s. 1). But has there been a "voluntary transfer" of the posses- sion? "Transfer" must surely here relate to the right as well as the fact of possession. Pintsoher acquired no riffht by the conditional delivery of the bill of lading to him. Cf. supra, b. 488. Collins, L. J., (p. 664) seems further to have considered that the right of the unpaid vendor to stop the goods in transit was also defeated by the opera- tion of sect. 26 (2) of the Sale of Goods Act. By that section (which reproduces sect. 9 of the Factors Act, 1889), where one who has bought or agreed to buy goods " obtains, with the consent of the seller, possession of the goods, or the do- cuments of title to the goods, the delivery or transfer by that person, or by a mer- cantile agent acting for him, of the goods or documents of title under any sale, pledge or other disposition thereof . . . shall have the same effect as if the person making the delivery or trans- fer were a mercantile agent in posses- sion of the goods or documents of title with the consent of the owner." That effect is shown by sect. 2 (1) of the Factors Act, 18S9, which makes " any sale, pledge or other disposition of the goods," by a mercantile agent so in pos- session, ' ' as valid as if he were expressly authorised by the owner of the goods to make the same." It is submitted that neither s. 9 of the Factors Act, nor s. 25 (2) of the Sale of Goods Act, can properly be con- strued as affecting the right to stop in transit. If they are so construed, s. 10 of the Factors Act, and the proviso to s. 47 of the Sale of Goods Act, seem, unnecessary ; or they were only necessary in order to give to other docu- ments of title the same effect that biUs of lading had. But for that purpose they were misdrawn, and misleading, if the earlier sections affected stoppage in transitu. For they are narrower in operation ; they require that the buyer shall have been a transferee of the document of title ; whereas the earlier section in each case (in the same Act) only requires that he shall have obtained possession of it with the consent of the seller. Sect. 9 of the Factors Act, and sect. 25 (2) of the Sale of Goods Act, are only operative by force of sect. 2 of the Factors Act. That merely validates dispositions of the goods made by a mer- cantile agent " in the ordinary course of business of a mercantile agent." It is concerned with the title to the goods. The defeating of the right to stop in transit is outside its scope. For it operates by validating, against the owner, the sale, &c. of the goods by his agent; whereas the sale, &c. of the goods which defeats a vendor's right to 608 THE DELIVERY. Sect. 537. Transfer of bill of lading ■without assignment of goods insufficient. Transfer must he for value — past debt enough. 537. Also to defeat the vendor's right, the transfer of the bill of lading must have been made with an intention of passing, and so as to pass, the property in the goods, or some interest in them. A transfer to agents to enable them to obtain and sell the goods is not enough; even though those agents would have had a lien on the goods, and on the proceeds of sale, for a balance due to them, if the goods had in fact come to their hands. In Patten v. Thompson (/) the buyers of a shipment of corn indorsed and sent the bill of lading to their factors at the port of discharge. They had been in the habit of consigning goods to the factors for sale, and had also remitted bills to them and drawn upon them, the account being a running account. No bills had been drawn specifically against this corn nor had it been specifically appropriated to any of the current bills. Before the corn arrived both buyers and factors had failed, and the vendors claimed to stop the goods. It appeared that, at the time of the transmission of the bill of lading, and of the failure, the factors were under acceptances for the buyers to an amount greater than the value of the bills and goods remitted to them ; but that in consequence of their failure to meet part of their acceptances, the balance turned the other way. It was held that the vendor's right to stop the goods had not been defeated. Abbott, J., doubted, however, whether the factors would not have been entitled to possession of the goods had they not become bankrupt (g). 538. Again, the transfer must have been for value. But if made to secure an already existing debt that wiU. suffice ; it is not necessary that there should be a fresh advance (h). stop in transit is made by the owner, and needs no validation. Sect. 9of theFaotors Act, and sect. 26 (2) of the Sale of Goods Act, should then be read as merely vali- dating a transferee's title to the goods ; not as opening a new way of defeating the unpaid vendor's right, wider than that which is expressly preserved, in each Act, by a 8ubsec[uent section on the lines of the old law upon the subject. To defeat the right to stop in transit two things are necessary : a disposition of the goods by the buyer, and a trans- fer by him of a document of title. Sects. 9 & 10 of the Factors Act, 1889 (following sects. 4 and 5 of the Factors Act, 1877, and followed by sects. 25 (2) and 47 of the Sale of Goods Act), seem to have dealt with those two matters separately : sect. 9 enabled the buyer to make a disposition of the goods ; sect. 10 prescribed the conditions needful for defeating a stoppage in transit by snch a, disposition — it requires that a docu- ment of title shall have been lawfully transferred to him, and that he shall have transferred that to his assigneee. (/) 5 M. & S. 350. ( -j. i i j ject to pledge been absolute, but has been made by way ot security, to a pledgee or mortgage. ^^ mortgagee, the vendor's right of stopping the goods in transit continues, subject to the charge so created in favour of the pledgee or mortgagee. When that has been paid off the unpaid vendor stands in the same position as if there had been no transfer of the bill of lading at all (m) ; and it is not necessary that he should himself pay off that charge and obtain the right to possession of the goods. If he has during the transit given due notice to stop them, he will be entitled to claim upon the balance of their proceeds in the hands of the pledgee or mortgagee, to whom they have been properly delivered, and by whom they have been sold (o). The vendor, by his notice, regains his right to possession of the goods, but subject to the pledge or mortgage. And in Ee Westzinthus (p), it was held that he was entitled to require the mortgagee to resort first to other goods of the vendee which had been deposited with him and were available for the debt. Right of 541. The doctrine thus established has been extended to the case vendor where sub-purchaser of a transfer of the bill of ladmg to a sub-purchaser of the goods pai . ^j^^ j^^^ ^^|. ^^^^ £^^ them. It was held, that if the original vendor duly gave notice to stop the goods, he was entitled to require that the purchase-money due from the sub-purchaser should be paid over to himself, so far as necessary to satisfy his claim {q). " I cannot distinguish the case from that of a mortgagee. If surplus moneys remain in the hands of a mortgagee, all he gets is satisfaction of the mortgage. If he sells the goods and pays himself, and there is a balance in his hands, he must account for it. In the one case the balance will be held subject to the right of the vendor to stop in transitu ; in the other case, the whole purchase- money will be equally subject to that right, to the extent of the purchase-money due to the vendor " (r) . («) Sale of Goods Act, 1893, s. 47. {p) 6 B. & Ad. 817. In re Westzinthus, 5 B. & Ad. 817 ; (?) Ex parte Golding, Davis & Co., Spalding :;. Ending, 12 L. J., Ch. 603 ; In re Knight, 13 Ch. D. 628. Kemp V. Falk, 7 A. 0. 573. (,•) Per James, L. J., 13 Ch. D. at. («) lii^- p. 635. STOPPAGE IN TRANSITU. 611 " Can the vendor make effectual his right of stoppage in transitu Sect. 541. without defeating in any way the interest of the sub-purohaser ? In my opinion he can. He can say, I claim a right to retain my vendor's lien. I will not defeat the right of the sub-purchaser, but what I claim is to defeat the right of the purchaser from me, that is, to intercept the purchase-money which he will get, so far as is necessary to pay me. That, in my opinion, he is entitled to do, not in any way thereby interfering with the rights of the sub-purchaser, but only, as against his own vendee, asserting his right to resume his vendor's lien and to obtain payment by means of an exercise of that right; interfering only with what would have been a benefit to the vendee, who would otherwise have got his purchase-money without paying for the goods, but in no way interfering with any right acquired by the sub-purchaser of the goods" (s). This extension of the principle was approved by the Court of Appeal in Ex parte Falk, In re Kiell {t). That case was taken to the Hoiise of Lords on appeal (m) ; but, owing to a correction which was made in the statement of facts, the point did not there arise. Lord Selborne, however, appears to have dissented from the principle of Ex parte Gelding, Davis & Co., In re Knight (»). He said («/) , "And against what is that right of stoppage in transitu ? Not against some imaginary interest of the purchaser, but against the goods themselves. It is a right to stop the goods ; and I have no notion of any right of stoppage in transitu which is not a right to stop the goods when they are still in transitu in contemplation of law. * * " I put, therefore, aside the whole argument founded upon the existence of sub-purchasers. I assent entirely to the proposition that where the sub-purchasers get a go.od title as against the right of stoppage in transitu, there can be no stoppage in transitu as against the purchase-money payable by them to their vendor ; at all events, until I hear authority for that proposition, I am bound to say that it is not consistent with my idea of the right of stoppage in transitu, that it should apply to anything except to the goods which are in transitu. But when the right exists as against the («) Per Cotton, L. J., 13 Ch. D. at («) Kemp v. Falk, 7 A. C. 573. p. 638. Ix) 13 Ch. D. 628. (<) 14 Ch. D. 446. {i/) 7 A. C. p. 577. K E 2 612 THE DELIVERY. Sect. 541. goods wMch are in transitu, it is manifest that all other persons who have, subject to that right, any equitable interest in those goods by way of contract with the original purchaser or otherwise, may come in, and if they satisfy the claim of the seller who has stopped the goods in transitu, they can of course have effect given to their rights ; and I apprehend that a court of justice, in admi- nistering the rights which arise in actions of this description, would very often find that the rights of all parties were properly given effect to, if so much of the purchase-money payable by the sub- purchasers were paid to the original vendor as might be sufficient to discharge his claim ; and, subject, of course, to that, the other contracts would take effect in their order, and in their priorities." Sale of Goods And now, by sect. 47 of the Sale of Goods Act, 1893, the unpaid ^ct s 47. ' ■ ■ seller's right appears to be definitely defeated where the re-transfer has been by way of sale. OHAPTEE XYI. FREIGHT. 613 SECT. Meanings of " freight " 642 Payment on delivery implied — Voyage must be la-wf ul '. . 543 Actual delivery not necessary .... 644 How long must owner be ready ?. . 545 Payment to be concurrently with delivery 546 Prevention of voyage by causes beyond owner's control 547 Inherent infirmity 648 Freight payable though goods damaged — Test as to whether they have lost their identity .... 549 Lump freights payable on delivery of cargo — What cargo must be delivered ? 550 Effect of delivering part cargo by another ship 551 Lump sum payable on default of a return cargo — No deduction of freight earned from other shippers 552 Lump freight, when due 553 When conipletion of voyage pre- vented by freighter, full freight payable , 554 If ship abandoned, freighter may treat contract as at an end 555 Whole freight payable on captured goods — Goods unloaded after a recapture 656 Though voyage not completed, the whole freight, or pro raid freight, may be payable by implied agree- ment i i 557 Christy v. Eow 558 Cases of ^TO rat& freight 559 The shipowner must have been in a position to carry the goods on . . 560 Illustrations 661 Freight payable in advance must be paid, though ship and goods lost — Freight to be advanced " if required "-^Advanced freight not reclaimable , 562 SEOT. Construction of contracts 563 Distinction between freight and advances — Test of insurance .... 564 Deficiency of bill of lading freights, payable in cash, due though vessel lost 665 Effect of clause "subject to in- surance " 666 Freight pay?.ble on "sailing" or " final saiUng " 667 Ship must be seaworthy on sailing or freight not payable if she be lost 568 Freight partly in advance — Cargo partly lost — Mode of ascertaining balance to be paid 569 Time freights — When dependent on arrival — " Monthly in advance " 570 Outward and homeward voyages — Payment on " final discharge ". . 571 Meaning of ' ' month ' ' and ' ' calendar month" 571a Time occupied in repairs 572 Government charters — ' ' Inability to execute or proceed " , 573 Hoio calailated and paid. Where no rate stated 674 Freight free — Power of shipowner to contract at nominal rates not- withstanding mortgage 576 Measurement of goods for freight — Lowest to be taken 676 Special agreements , 577 " Intake measure of quantity de- livered" 678 Usages as to measurement 579 Ambiguity as to the mode of measurement 680 Bill of lading quantity not conclu- sive unless so agreed 581 Expense of measuring — Grain trade 582 Freights , payable according to agreed scales 583 Lump sum freights S83a 614 THE DELIVERY. SECT. Mode of payment — Custom of the port of discharge — Payment by bills 68i Effect of taking a bill 585 Claims for damage may not be de- ducted — Unless expressly agreed. 586 " Primage and average accus- tomed" 587 To wlwm payable. Generally to o-wner at time of con- tract — Consignee may interplead. 688 Payment to master 589 Where there are several owners — Eights of part owners inter se — Mortgagee of shares 690 Upon sale of ship freight passes to purchaser 591 S'reight belongs to mortgagee of ship on his taking possession, but not before 592 Charterer's right to deduct advances as against mortgagee 693 Position of mortgagee subsequent to the first 694 What is sufficient possession ? — Mortgage of shares 595 SECT. Assignment of freight — Several assignees .... • 596 Priorities of assignees of freight and assignees of ship 697 Set-off of consignee — ^Will not defeat lien — Advances of char- terer ; bottomry 598 Is owner or charterer entitled to bill of lading freights 699 Eight of underwriters to freight after abandonment 600 Proceedings in rem against freight — Cargo may be arrested 601 Sy whom payable. Primarily by shipper, where no charter party — Shipowner may lose his right of recourse 602 Liability of one who receives under bill of lading 60v3 Liability by course of business , , , , 604 Effect of notice that receiver is an agent only 606 Effect of Bills of Lading Act— Is consignee liable for freight pay- able in advance ? 606 Liability for charter party freight — Cesser clause 607 Meanings " freight.' Wlien payable. of 542. The remtmeratioii payable for the carriage of goods in a ship is called fneight. Also, the same word is often used to denote a payment made for the use of a ship. It is applied in hoth senses, though objection has frequently been made to its use in the latter sense. When a ship has been chartered to go on a specific voyage for a lump sum, or to be at the disposal of the charterer at so much a month, it might perhaps be more accurate to call the payment the hire of the ship; but in practice the word "freight" is used. And as the hire of a chartered ship is very commonly paid by a freight in proportion to the goods carried under the charter party, it would be difficult to say distinctly when the one word should be used, and when the other. But it is important to bear in mind that the word freight does not always relate to the same sort of payment. For propositions of law relating to freight in one sense, do not always apply to it in the other. FREIGHT. 615 The remuneration for carrying the goods may be made payable Sect. 548. either in advance, or upon delivery of the goods; and another objection has frequently been raised, that the word "freight" ought only to be applied to the remuneration when it is payable for the safe carriage of the goods, upon their delivery («). We shall hereafter discuss the differences in the law with regard- to pay- ments upon delivery, and payments made, or agreed to be made, in advance ; but, whether objectionable or not, the same word is, in fact, used to describe them both. It will be convenient to deal first with contracts under which the freight is payable on delivery of the goods, leaving agreements for payment in advance for subsequent discussion. Also, we will begin with the more general case of freight payable in proportion to the goods carried ; leaving out of consideration, for the present, cases of lump freights, and time freights. 543. Where goods have been shipped without any bill of lading, Payment on or special agreement, or where the bill of lading is silent as to the implied, time for payment of the freight, the law implies that it is to be paid upon delivery of the goods at the port of discharge. And, most commonly, where a bill of lading is given, the express agreement is that the payment is to be upon delivery. In such cases the readiness to deKver at the port of discharge is a condition precedent to the shipowner's right to have the freight. Unless the goods have been carried to that port, and are there ready to be delivered, the freight has not been earned. And, whether the contract be express or implied, the voyage Voyage must must have been a lawful one. If it was illegal no freight can be recovered, although delivery may have been given. In MuUer v. Gernon (5) an action was brought to recover freight on certain brandies brought from France to this country, without a licence, in 1810. The cargo was, therefore, contraband. But the defendant obtained permission from the Privy Council to have it landed upon condition of his immediately exporting it again. It was held that this permission did not make the voyage a legal one, so as to entitle the plaintifE to claim freight (c) . 544. Actual delivery is not necessary; it is enough that the Actual shipowner is ready to deliver, at the proper place ; the freight is neoessMy!" (s) Kirohner v. Venus, 12 Moo. P. C. (c) So, also, Blanok v. Solly, 1 Moore, 361 ; Blakey v. Dixon, 2 B. & P. 321. 631. Cf. Waugh i,. Morris, L. E., 8 (J) 3 Taunt. 394. Q. B. 202 ; Aug. Carr. s. 400. 616 THE DKLIVERY. Sect. 544. then due. He may even be unwilling to deliver the goods upon payment of the freight; for he may he entitled to other liens upon them, as for demurrage, or general average. But he must he •willing and able to deliver the goods on payment of his just charges upon them before he can claim the freight {d) . " The true test of the right to freight is the question whether the service in respect of which the freight was contracted to be paid has been subsfantially performed ; and according to the law of England, as a rule, freight is earned by the carriage and arrival of the goods ready to be delivered to the merchant " (e). The arrival must be at the destined port, and generally it must be at the usual discharging place for such a cargo at the port ; but, as we have seen (/), delivery may sometimes, under special circum- stances, he given at other than the usual discharging places, and when that is so readiness to deliver there entitles the shipowner to the freight (g). In Stewart v. Eogerson (h) the charterers refused to name a dis- charging wharf for the cargo, when the ship was ready and able to deliver it. The Court inferred from this a refusal to accept and pay freight on the cargo ; and held the charterer liable in damages to the amount of the freight, although, owing to a subsequent arrest of the cargo in a collision suit, the shipowner was not in a position to deliver it. In the Cargo ex Argos («) some barrels of petroleum were shipped at London to be delivered at the port of Havre. In the ordinary course they would have been delivered on the quay at Havre, but for special reasons this was not allowed by the autho- rities of the port; nor would they allow the petroleum to be landed at Havre at all. The ship, however, was allowed to lie in the outer harbour with the petroleum on board, and it was there discharged into a lighter ; but no person presented the bill of lading or asked (d) See Johnson v. Grreaves, 2 Taunt. but otherwise -vrhere a, reasonable time 344. had not elapsed : MoKee v. Hicksher, («) Per "WHIes, J., in Dakin v. Oxley, 10 Daly, 393 ; Western Transp. Co. v. 33 L. J., 0. P. p. 119. Of. Gibbons t). Hoyt, 69 N. T. 230. So in Massa- Buisson, 1 Bing. N. C. 283. In New ehusetts, Pay v. Alliance Ins. Co., 16 York it has been held that the freight is Gray, 455. due when the ship has been ready to (yj ^„^„_ ghap. XIII. deliver, and has tendered the cargo, although ship and cargo have since been (^) ^^® TregUa v. Smith's Timber Co., lost by a peril of the sea, if a reasonable ^ ^°™- ^^- ^^''■ time for taking delivery had elapsed: W L. R., 6 C. P. 424. Clendaniel v, Tucl^ennan, 17 Barb. 184 ; (j) L. K., 6 P. C. 134. FREIGHT. ^l'^ for delivery, and it was, therefore, after four days, re-shipped and Sect. 544. carried hack to London. It was held that the freight from London to Havre was due from the shipper. The Court considered that the means of performing the contract were not exhausted, nor the contract dissolved, when it was found the ship could not be dis- charged at the quay, and the cargo landed ; and that they ought to hold that, the master being ready and able to deliver in the harbour, and having kept the goods a reasonable time there for the purpose, the freight had been earned (J). 545. As the shipowner must be ready and able to deliver in How long • 11 • 1 f I'-iin ™ist owner accordance with the contract m order to perfect his right to the remaia ready? freight, it would seem that that right is only complete if he has been ready to deliver the goods during the whole period allowed by the contract to the consignee for taking delivery ; unless the consignee has waived that obligation. If no period is fixed by the contract, the consignee is entitled to a time which is reasonably sufficient, having regard to the circumstances, and until that has been given the freight has not in the ordinary case been earned. In Duthie v. Hilton (k), casks of cement were shipped under a bill of lading, which provided as follows : — " Freight to be paid within three days after arrival of the ship, and before the delivery of any portion of the goods specified in this bill of lading." On the night after the ship's arrival a fire occurred on board, and she Was scuttled to extinguish it. The cement was thus destroyed. Held, that the freight upon it was not payable. Brett, J., said: "Under an ordinary bill of lading, the shipowner is not entitled to claim freight unless the goods have arrived, and he is ready and willing to deliver them. Here there is an altera- tion in that part of the contract ; and the question is, how far it departs from the accustomed form. It seems to me that the ordi- nary contract was intended to exist during the three days after the arrival of the vessel with the goods on board. If the freighters within the three days demanded the goods and tendered the freight,, the shipowners would be bound to deliver them. But, after the expiration of the three days, I incline to think that the ordinary state of things would be altered, and that the shipowner might sue for the freight without averring readiness and willing- ness to deliver." (j) L. E., 5 P. C. at p. 163. Cf. The Diana, 5 C. Eob. 67. Teutonia, L. E., 4 P. C. 171 ; Tlie (A) L. E., 4 C. P. 138. 618 THE DELIVERY. Sect. 546. Payment to be concur- rently witli delivery. Prevention of voyage by causes beyond owner's con- trol. 546. Where the freight is payable on delivery the consignee should he ready to pay it without delay, concurrently with a deli- very of the goods. He must, if required, pay upon them as they are delivered. He cannot require the whole parcel included in the bill of lading to be discharged before making any payment (^). " Where the cargo is of such a nature that there must be a series of deliveries, the law will not, I think, consider it as one transac- tion, having regard to the state of circumstances. After part of this cargo had been delivered, the master said, ' Pay me for it, and I will deliver the rest.' He did not stand upon his right to refuse to deliver before payment of the freight, but did the first act. The contract of the charter party is to receive the goods simultaneously with payment of the freight, and the defendants have agreed to perform that duty. By not doing so they have broken their con- tract, and must compensate the plaintiff for the damage which they have occasioned to him " (»?). In Paynter r. James (m), it was contended that "on right delivery" was equivalent to "after right delivery," but that con- struction was rejected. Payment and delivery are to be concurrent acts to be performed as simultaneously as the nature of the acts will admit of. " Where two acts are to be concurrent, there must be a concurrent readiness on both sides — on the one to deliver, and on the other to pay. Each party is entitled to see that the other is ready to do his part, and it is for the jury to say which is in default" (o). Ordinarily the consignee must tender the freight before he is entitled to the goods. But the need of a tender will be waived if the master claims to hold the goods, in such a manner as to show that it would be of no avail to tender what is actually due. And that may be so, although the consignee also was wrong, as by being willing only to pay a smaller sum than really was due (p). 547. If the shipowner has been prevented from carrying the goods to their destination, although by causes which he could not control, he cannot claim any part of the freight ; for he has not earned it. That is so whether the preventing causes are phy- W L. E., 2 0. P. 348. {!) MoUer v. Toung, 24 L. J., Q. B. 217 ; reversed on another point, 26 L. J., Q. B. 94 ; Black ». Eose, 2 Moo. P. C, N. S. 277; 11 L. T., N. S. 31. (in) Per Erie, J., Mbller v. Toung, 24 L. J., Q. B. p. 221. (o) Per Montague Smith, J., L. E., 2 C. P. p. 357. Cf. Vogeman v. Bisley, 2 Com. Ca. 81. ip) The Norway, 13 L. T., N. S. 60. PEEIGHT. 619 sical (q), or arise from an interference of enemies {r), or of Govern- Sect. 547 ment, whether British or foreign (s). Nor does it afEeot the matter that the causes were perils excepted by the contract. " The shipowners undertake that they will carry the goods to the place of destination, unless prevented by the dangers of the seas, or other unavoidable casualties ; and the freighter undertakes that if the goods be delivered at the place of their destination he win pay the stipulated freight : but it was only in that event, viz., of their deKvery at the place of destination, that he, the freighter, engages to pay anything. If the ship be disabled from completing her voyage, the shipowner may still entitle himself to the whole freight, by forwarding the goods by some other means to the place of destination ; but he has no right to any freight if they be not so forwarded, unless the forwarding them be dispensed with, or unless there be some new bargain upon this subject. If the ship- owner-will not forward them, the freighter is entitled to them without paying anything. One party, therefore, if he forward them, or be prevented or discharged from so doing, is entitled to his whole freight ; and the other, if there be a refusal to forward them, is entitled to have them without paying any freight at aU. The general property in the goods is in the freighter ; the ship- owner has no right to withhold the possession from him unless he has either earned his freight, or is going on to earn it. If no freight be earned, and he decline proceeding to earn any, the freighter has a right to the possession " (t). The same is true where the goods have been sold or left at a port of refuge, whether in consequence of their damaged condition, with a view to save their value («), or to enable the master to raise necessary funds for repairs in order to complete the voyage («). But the fact that some portion of a parcel of goods has been lost or not delivered does not generally affect the shipowner's right to freight on the remainder. 548. In the same way it seems clear that if goods cannot be Inherent carried to the end of the voyage on account of their own infirmi- (q) Cook V. Jennings, 7 T. E. 381 ; (*) Per Lord Ellenlborougli in Hunter Metcalfe v. Britannia Ironworks Co., 1 v. Prinsep, 10 East, 378, at p. 394. Cf. Q. B. D. 613 ; 2 Q..B. D. 423. The Teutonia, L. E., 4 P. C. 171. , (r) Liddard v. Lopes, 10 East, 526 ; («) Vlierboom- v. Chapman, 13 M. & CurUng V. Long, 1 B. & P. 634. W. 230 ; Hillj;. Wilson, 4 C. P. D. 329 ; (s) Osgood V. Groning, 2 Camp. 466 ; The Industrie, (1894) P. 58. Birley v. Gladstone, 3 M. & S. 205. {vy Hopper v. Burness, 1 C. P. D. 137. 620 THE DELIVERY. Sect. 548. ties, but have to be destrojed, sold or abandoned on tbe way, the freight on them does not become payable under the ordinary con- tract, or under the contract which is implied by law in the absence of express agreement {x). So that, for example, freight would not be payable upon animals which died during a voyage and were thrown overboard. Nor, ■probably, would it be payable although the carcasses were carried to the destination ; for the thing for the carriage of which freight was to be paid was the living animal. It has, indeed, been said that if there is no express agreement showing whether the reward is to be paid for lading, or for trans- porting the animals, freight must be paid for the dead as well as the living ; though if the agreement were to pay for transporting, the freight would not be payable on those that have died during the voyage (y) . But this seems to contradict the ordinary impli-i cation, by which, when goods are shipped without any express agreement, the contract is regarded as one for the transportation of the goods, and freight on them is only to be paid if that is accomplished. Freight pay- 549. On the other hand, if the thing agreed to be carried has goods in fS'Ct been brought- to its destination, and is there ready to damaged. |jg delivered, it is no answer to a claim for freight that it is damaged or deteriorated, and not in the condition in which it was when shipped. Even though the damage is so great that the thing is not worth the freight payable upon it (2) ; and though that damage has arisen owing to the fault of the master and crew (s). The consignee may be in a position to make a claim for the damage done, but the freight is due in full to the ship- owner (a) . The question whether the thing, or how much of it, is to be considered to have arrived for this purpose, is sometimes difficult to answer; no definite rules about it have been laid down {b). "In the case of an actual loss or destruction by sea-damage of so much of the cargo that no substantial part of it remaius, as if (ic) ButseeMaclachlaii(3rd), 468, 470. Shields v. Davis, 6 Tauu. 65; Hotham ■ (y) Abbott(oth), 274; Macl. (3rd), 468, »• East Tndia Co., 1 Doug. 272. citing Dig. 14, 2, 10 ; Eoccus, not. 76, ^"^ ^^- ^^^^"^ "■ ^^^^^^r, 33 L. J.y 77, 78 ; MoUoy, bk. 2, ch. 4, s. 8. See ' ^^^^ g^^^^^ ^^^j^ authorities coHected Aug. Carr. s. 394. in Abbott (5th), 292 et aeq. ; (13th), 676 ; («) Dakin v. Oxley, 33 L. J., C. P. 116 ; Macl. (3rd), 471 et aeq. FEEIGHT. 621 sugar in mats, shipped as sugar and paying so much per ton, is Sect. 549. washed away, so that only a few ounces remain, and the mats are worthless, the question would arise whether, practically speaking, any part of the cargo contracted to be carried has arrived. Such a case seems to be within the principle of the French Ordinance, and the second clause of Article 310 of the Code de Commerce, though they are both in terms confined to the case of liquids where all or nearly all has leaked out, so as to iuolude molasses but not sugar. Pothier, Sur la Chartepartie, sect. 60 (4th vol. of Pothier's works by Bugnet, p. 404), deals with these as cases in which the thing contracted to be carried has perished before arrival. The Spanish Code de Commerce, Article 790, after enacting that the shipowner cannot be compelled to receive the cargo, whether damaged or not, in payment of the freight, arbi- trarily lays down, as to liquids of which more than half has been lost, that the merchant may abandon the rest for the freight. A reference to these provisions is enough to show that the task of finding a uniform rule in modem commercial law is at present impossible. " Where the quantity remains unchanged, but by sea-damage the goods have been deteriorated in quality, the question of identity arises in a different form, as, for instance, where a valu- able picture has arrived as a piece of spoilt canvas, cloth in rags, or crockery in broken sherds, iron all or almost all rust, rice fermented, or hides rotten. " In both classes of cases, whether of loss of quantity or change Test aa to T , , 1 J. 1 ii • i whether they in quality, the proper course .seems to be the same, viz., to ascer- have lost their tain from the terms of the contract, construed by mercantile usage, ^^®'^*^*y- if any, what was the thing for the carriage of which freight was to be paid, and, by the aid of a jury, to determine whether that thing, or any and how much of it, has substantially arrived" (c). In Duthie v. Hilton {d), it was held that freight was not pay- able upon casks of cement which had been submerged ; the cement no longer existed as cement, being hardened into solid masses by the action of the water, and this also involved the destruction of the casks in which it was packed. On the other hand, in Grarrett V. Melhuish (e), it was held that freight was payable upon a cargo (c) Per Willes, J., in Dakinii. Oxley, /„\ ^ t _ -kt a n<-> oi. 33 L. J., C. P. 119, 120. ^'^ * ^""•' ^- ^- '*^' ^*^^""« °° (/} 13 So. L. E. 401. 123. {h) 4 Camp. 103, FREIGHT, . 623 550. Next as to charter parties which provide that payment Sect. 550. shall be made for the use of the ship by a lump freight for the Lump freights voyage, to be paid on delivery of the cargo. deUvery of If the ship fails to complete the voyage, and the cargo is not °^^s°- delivered at the agreed destination, the freight does not become payable (i). But where the ship arrives without bringing in the whole agreed cargo, a question arises as to how far delivery of that forms a condition precedent to the right to the lump freight, and as to whether that freight can be under any circumstances appor- tioned. In the first place, the " cargo " delivered need not necessarily be What cargo that agreed to be loaded under the charter party.. A short cargo, delivered, or a different cargo, may in fact have been loaded ; and whether that was due to a default of the charterer, or to acts or defaults of the shipowner, or to perils excepted by the charter, the fact is no valid answer to a claim for the freight. The whole lump freight is still payable, though the charterer may be entitled to counter- claim for damages (k). Nor does the " cargo " necessarily mean that which has been shipped. Por if part has been lost on the voyage {I), or jettisoned, or sold (to), the lump freight is still payable, without deduction, on delivery of the remainder. " It does not mean the cargo she has shipped, but which she is not bound to deliver, which the shipowner is excused from delivering. It means the right delivery of the cargo which is to be delivered, not the right delivery of the cargo which was originally shipped on board of her " (n). Further, the above proposition seems to be true, although the loss of part of the cargo has been due to causes for which the shipowner is answerable. In The Norway (o) Dr. Lushington held that part of the cargo had been improperly jettisoned, and another part of it sold at a port of refuge under circumstances which made the shipowner responsible, and he therefore ordered that a deduction should be made from the agreed lump freight in pro- portion to the goods so jettisoned and sold. (i) Crozier v. Smith, 1 M. & G. 407. (»«) The Norway, 1.3 L. T., N. S. SO. (A) See Eitohie i;. Atkinson, 10 East, ^^^ p^^ Bramwell, B., in Merchant 295 ; Blanchet v. Powell's LlantiTit „, . . „ . . ■.■•,, Colliery Co., L.E., 9 Ex. 74. Shipping Co. v. Armitage, L. E., 9 (I) Merchant Shipping Co. v. Armi- Q- B- »* P- HO. tage, li. K., 9 Q. B. 99 ; Robinson v. (o) Br. & Lush. 226 ; 13 L. T., N. S.. Knights, L. K., 8 C. P. 465. 50. 624 THE DELIVERY. Sect. 550. Effect of de- livering part cargo by another ship. The Privy Council reversed this order, holding that the ship- owner was not responsible for the jettison or for the sale. But they further said, " It is right to add that we db not mean to express an opinion that even if the jettison and sale had been attributable to the negligence of the master there ought to have been a deduction. Perhaps, in this case, the proper remedy of the shipper would have been by cross action " (p). In Merchant Shipping Company v. Armitage (q), Bramwell, B., put as an illustration the case of a loss of part of the cargo by a theft of one of the crew, and was plainly of opinion that that would not work a forfeiture of the freight ; but that the freight must be paid and the shipper left to his remedy by cross action. It seems, then, that the right to payment of the whole lump freight is not conditional upon a delivery of a full cargo, even though the shipowner received and was bound to deliver a full one. Whether it is a necessary condition that so?ne part of the cargo shall have been delivered does not appear to have been decided. But as the freight in these cases is really " in the nature of a rent to be paid for the use and hire of the ship on the agreed voyages" (r), it might well be contended that it is payable if she completes the voyage, whether with or without the cargo. The words which make the freight payable on deKvery of the cargo might be read as fixing the point of time for payment, in the event that is expected to happen, and not as establishing a condi- tion precedent (s). 551. In Mitchell r. Darthez {t), the vessel failed to complete the voyage, and it was held that the lump freight, payable on delivery, could not be recovered, although part of the cargo was sent on, and arrived at the intended destination. But it appeared in that case that this part cargo had been for- warded on behalf of the cargo owners, and at their expense ; and Tindal, C. J., who gave the judgment of the Court, seems to have considered that the charter freight would have been payable, had the master forwarded the goods, on behalf of the shipowner. The (p) 13 L. T. at p. 52. (q) L. E., 9 Q. B. 99, at p. 111. (r) The Norway, 13 L. T., N. S. at p. 52. (s) But see per Bramwell, B., in Merchant Shipping Co. v. Armitage, L. B,., 9 Q. B. at p. 111. Cf. The Queensmore, 63 Fed. Eep. 1022. ■ {t) 2 Bing. N. C. 656 ; cited post, B. 569. FREIGHT. 625 question, however, whetlier the whole lump freight can be earned Sect. 551. by delivering part of the cargo by another ship is, perhaps, open to doubt. 652. Bell V. PuUer (u) illustrates another kind of charter at a Lump sum payable on lump freight. The ship was let and hired to freight, for a voyage default of a to Petersburg and back to London. She was to take out 150 tons ^® "^ <^B.Tgo. of lead, and bring back a return cargo for the charterers ; and the freight was to be paid at a fixed rate on delivery of the return cargo. But it was provided that if political or other circumstances should prevent the shipment of a return cargo, or the discharge of the outward cargo, the ship should remain at Petersburg, or in the Baltic, forty days ; and the charterers covenanted that after she had so remained "without such outward cargo being unloaded, and consequently without the return cargo being loaded," she should be at liberty to return to England, and that they would then pay a lump sum of 2,700^. with primage and gratuity. The vessel was not allowed by the Eussian Q-overnment to disr charge the lead ; and after waiting the forty days, and failing to get a return cargo from the charterers, the master sailed to Stock- holm, and took ia goods on freight from other persons, and some on his own account. On arrival in England he delivered the lead to the charterers. It was held that they must pay the full agreed No deduction lump freight, &c., without deducting anything in respect of the eamed^from freight earned on the goods brought from Stockholm. othershippers. 553. The time at which a lump freight, payable on delivery, Lumpfreight, becomes due from the charterer, appears to be when the cargo which ^ ^ "^ ' has arrived has been completely delivered (a;). That at least was held to be the case where by the charter party the master was to sign bills of lading at any rate of freight if required, and those freights were to be collected by the charterers (y). " On principle we conceive that the freight cannot be due from the charterers on a charter party, such as the present, until they have had the full user of the ship for the purposes for which they chartered it. It is, in fact, analogous to the demise of property until a given purpose is answered : the purpose in this case being, first the outward voyage ; second, the taking in of a complete cargo at such profit freight as (m) 2Taun. 285. Of. PuUer ». Stani- the cargo for the lump freight, see forth, 11 East, 232; and Stanif orth ». Ch. XVIII. LyaU, 7 Bing. 169, infra, s. 721. (j^) Brownr. Tanner, L. R., 3 Ch. 597. {x) As to the shipowner's lien on Cf. Fen-wick v. Boyd, 15 M. & W. 632. c. — c. s s 626 THE DELIVERY. Sect. 553. When com- pletion of voyage pre- vented by freighter, full freight payable. the charterers may be ahle to obtain above the freights they have agreed to pay the owner ; and third, the delivering of the cargo to the consignees by the charterers " (s). 554. If the shipowner has been prevented from completing the voyage by an act or default of the charterer or cargo owner, he will be entitled to the fuU freight, although by the contract completion of the voyage, and delivery at the destination, were conditions precedent (a). In The Cargo ex Galam (6), goods upon which a respondentia bond had been granted, payable after arrival at Falmouth, were shipped under a charter party. On the voyage the ship was driven ashore at SeiUy, and it became necessary to land and store the cargo. As the cargo owner proposed to alter the voyage by making the ship proceed direct to Hamburgh, an action was brought by the holders of the bond, and the cargo was arrested in SciUy. It was found by the Court that the intention to carry on the cargo and earn the freight was not abandoned; but the cargo owner refused to appear in the proceedings, and persisted in ordering the ship to carry the goods to Hamburgh direct. The action went on, and an order was made by the Admiralty Court for the removal of the cargo to London for sale ; and accordingly it was brought there, and sold. London was not one of the ports to which the cargo might have been taken under the charter. Under these circumstances, it was held by the Privy Council, reversing the decision of Dr. Lushington, that the orders of the Admiralty Court, occasioned by the default of the cargo owner, made it impossible to carry the cargo anywhere but to London ; and that as those representing the ship had thus been prevented from com- pleting the voyage, they were entitled to claim their freight (c). In The Soblomsten [d), the vessel and cargo were arrested at Great Grimsby in a salvage suit. The ship was surveyed, and found not worth repairing, and was therefore abandoned by the master and crew. The owners of the cargo did not procure the release of the cargo, though they had notice that, if not released, it would be sold by order of the Court ; and it was consequently (z) L. E.,3C!h. atp. 603. [a) But see Smith v. WUson, 8 East, 437. (J) 33 L. J., Ad. 97. («) Cf. Lutwidge v. Grey, cited post, s. 659 ; Osgood v. Groning, 2 Camp. 466; The EHza lines, 61 Eed. Eep. 308, infra, s. 561. W L. R., 1 A. & E. 293. FEEIGHT. 627 sold. Dr. Lushington said : " It might possibly be argued that ^° " the conduct of the owners of the cargo in not bailing the cargo, but allowing it to be sold, prevented the master from fulfilling his contract to carry the goods to their destination, and so .earning his full freight. But freight pro raid is all which is asked by this motion, and I think that the conduct of the owners of the cargo amounts to a waiver by them to have their cargo from Great Grimsby to Bordeaux, and does raise an implied promise that they would pay a pi-o raid freight." In Blasco v. Fletcher (e), a claim arose against freighters for preventing the completion of the voyage under peculiar circum- stances. The vessel sailed from Liverpool, and got ashore on the Irish coast ; the vessel and cargo were both saved, but in a damaged state ; and the master telegraphed for one of the charterers named Sparks. He came over to act for the cargo owners ; and was requested by the master to act also on behalf of the owners of the vessel to the best of his judgment and ability. Under this authority, Sparks paid the salvage, incurred expenses in taking the vessel to Dublin, with a view to her repair, and also engaged a vessel to take part of the cargo back to Liverpool, to have it dried. This cargo was found to be much damaged, and in such a state that it would get worse if kept ; it was accordingly sold, and the jury found that that was a reasonable course to take, having regard to the interests of all the parties concerned. In the meantime, however, the shipowners had claimed that these goods should be detained, in order that the vessel might carry them on the agreed voyage ; and after the sale, an action was brought for preventing the completion of the voyage, and for the freight. It was held, that what had been done was within the authority given to Sparks to act on behalf of the shipowners; and that that authority could not be countermanded after it had been acted upon, and expenses incurred under itt 555. Where a ship has been definitely abandoned at sea, by the H ship .,,,, abandoned, master and crew, without any mtention of commg back to her, freighter may the freighter is entitled to treat the contract of carriage as aban- -^^^^ aiTend! doned. So that if the ship, or the cargo, be afterwards brought into port by salvors, the cargo owners may claim to have their goods without paying any freight; even though the shipowner (e) 32 li. J., 0. p. 284. ssS 628 THE DEIilVEEY. Sect. 555. is ready, and demands to be allowed to take them on to their destination (/). Whole freight 556. Another illustration of the rule that the freight is payahle capkired'" if the freighter prevents the completion of the voyage is to he goods. found in cases where, in time of war, enemy's goods have heen captured in neutral ships and condemned. The captors were made to pay full freight on the goods. " If a neutral vessel, having enemy's goods, is taken, the captor pays the whole freight, because he represents the enemy by possessing himself of the enemy's goods jure belli; and although the whole freight has not been earned by the completion of the voyage, yet, as the captor by his act of seizwQ has prevented its completion, lim seizure shall operate to the same effect as an actual delivery of the goods to the consignee, and shall subject him to the payment of the full freight " {g). Goods un- Cases of recapture, in which full freight has been allowed on recapture. cargo unloaded after the recapture by order of the Court, seem to have been decided on similar grounds. The default or misfortune of the cargo owner has prevented the master from completing the voyage (A). In The Fortuna (i). Sir W. Scott said the owner "could have no right but upon an entire execution of the contract, or such an execution as he could effect consistently with the incapacities under which the cargo might labour. Where such an incapacity on the part of the cargo occurs, he has done his utmost to carry the contract on to its consummation ; it is a final execution as to the owner of the ship, inasmuch as it does not lie with him that the contract is not performed. On the other hand, where the vessel itself is incapacitated, no right accrues to her owner ; he can have no right to demand that for which he stipulated only on the per- formance of his engagement. The general principle has been stated very correctly, that where a neutral vessel is brought in, on account of the cargo, the ship is discharged with full freight, (/) The Amo, 72 L. T. 621 ; The Eising Sun, 2 C. Rob. 104 ; The Sarah Cito, 7 P. D. 5 ; The Kathleen, L. R., Christian, 1 C. Eob. 237 ; The Mer- 4 A. & E. 269. See supra, a. 308. curius, ibid. 288 ; The Atlas, 3 0. Eoh. (g) Per Sir W. Scott in The Copeu- 299, 304 n. hagen, 1 C. Eob. 289. The freight was W The Eaoehorse, 3 0. Eob. 101 ; The not, ho-wever, allowed by the Prize Court Martha, ibid. 106 (n.) ; The Hoffnung, 6 where there had been unfair conduct on C. Eob. 231. Cf. Luke v. Lyde, 2 Burr, the part of the vessel : as by using false 882 ; The Weddsborgaren, 4 C. Eob. 17. papers, or carrying contraband. The (i) Ed'*'. Ad. 66. FEEIGHT. 6^9 because no blame attaches to her ; she is ready and able to proceed Sect. 556. to the completion of the voyage, and is only stopped by the incapacity of the cargo." 657. Again, although the ship may fail to complete her voyage, Thougli and though the goods may not be brought to their destination, the completed, whole, or some part of the freight, may be payable by express or i,.^iXt°oi m-o implied agreement. ^"''^ freigM, . , ™ay be pay- The cargo owner may take delivery of the goods at a different able by place from that originally agreed, under circumstances which show agreement, that that was intended to be treated as a substituted performance of the contract. In that case the full freight becomes payable. Or delivery may be taken at a port of refuge, in order that the owner of the goods may himself carry them on, or may deal with them in some way other than that contemplated by the contract ; the shipowner giving up his right to take them on, and earn the full freight. In such cases a promise may sometimes be presumed on the part of the cargo owner to pay a part of the freight propor- tionate to the portion of the voyage which had been accomplished — a freight ^ro raid itineris peraeti. 558. In Christy v. Ilow(/i;), a cargo of coals was shipped at Christy f. Shields to be delivered at Hamburgh, the defendant to pay in full for the freight of the ship for the voyage after the rate of 201. per keel, on the delivery of the cargo. On the way, at Cuxhaven, the ship was stopped by the British naval commander, as the French forces were then approaching Hamburgh. The master sent word to the consignees of the cargo at Hamburgh, and they wrote reijuesting him " to sail as far as Grluckstadt where they would send him lighters." He did so, and delivered part of his cargo there into the lighters sent ; but before all had been delivered, the ship was ordered to leave the place, and she returned to Cuxhaven, and afterwards to Shields, without delivering any more of the cargo. In an action for the freight the plaintiff was allowed to recover freight, at the full rate of 20/. a keel, upon what had been delivered at Grluckstadt, but no more. 559. The following are cases in which a proportion of the whole Cases ol pro freight has been allowed : — '^'^ ^^^^ In Lutwidge v. Grey (1), decided by the House of Lords in 1733, a ship had been chartered for a voyage from Glasgow to {k) 1 Taun. 300. (?) Cited in Abbptt (Sth), 307 ; (13th), 691 ; Ma«l. (3rd), 479, 630 THE DELIVERY. Sect. 559. Virginia and back ; freight to he paid for the homeward cargo at a certain rate per ton of tobacco ; half to be paid immediately after the ship's discharge at Grlasgow, and the other half within six months after. The ship was wrecked on her return voyage at Youghall on the coast of Ireland ; but part of the cargo was saved. Lutwidge, the shipowner, informed the charterers, Gbey & Co., that he should provide another vessel to bring this on. But Grey & Co. abandoned so much of the saved cargo as belonged to them to their insurers, indorsing the bills of ladiag to them ; and they took those goods to Bristol. Lutwidge provided a vessel to bring on the remainder, but the owners of it refused to deliver it on board her, because the master would not give bills of lading to deliver it at Glasgow, nor would he bind himself to deliver it there ; he only offered receipts which would oblige him to deliver in Great Britain. The owners of these goods, therefore, themselves forwarded them to Glasgow. The House of Lords, on appeal from the Court of Session in Scotland, declared " that the respondents, Grey and others, were liable for the full freight of such of the goods as were given up to the insurers, and for the freight pro raid itineris of such of the goods as were brought to Glasgow, notwithstanding some of the tobacco was found damnified, and burned there." In The Copenhagen {m), the ship and cargo had been seized as prize in a port into which she had been driven by stress of weather. Inquiry was held as to the neutrality both of the ship and of the cargo, and both were restored. But the cargo was restored first, and was forwarded in other vessels, the ship being still detained. The shipowners were allowed freight pro raid itineris («). But it was not there questioned that some freight was payable, and the circumstances under which the cargo was forwarded do not appear in the report. In Mitchell v. Darthez (o), a ship called The Jane was chartered to carry a cargo of coals or other goods to the Eiver Plata and there deliver them, and then reload and proceed to a port between Gibraltar and Antwerp and deliver. "Freight for the said voyage out and home 1,300^. in full if delivered at Gibraltar"; 200/. of it to be paid in London, cash for necessary expenses to be advanced (m) 1 C. Rob. 289. The Soblomsten, L. R., 1 A. & E. 293 ; («) See also Baillie v. Moudigliani, cited supra, s. 654. Abbott (5tb), 313 ; (13th), 596 ; and (o) 2 Bing. N. C. 565. FREIGfHT. 631 at the Biver Plata, "and the remainder to be paid on final delivery Sect. 559. of the homeward cargo." The master to sign bills of lading with- out prejudice to the charter party. The Jane carried out coals in lieu of ballast under a bill of lading which stated that freight was to be paid as per charter party. Part of these coals were delivered at Buenos Ayres, but part remained on board as ballast for the return voyage. A cargo of hides was put on board at Buenos Ayres to be carried to Gibraltar under a bill of lading, which made 340^. freight payable upon them. On her voyage to Gibraltar The Jane put into Payal, distressed and damaged to such an extent that she was condemned. Part of the hides were sold as damaged, a few were sold as sound ; and the coal also was sold. The proceeds of all these were applied in paying the expenses at Fayal, including the cost of reloading those hides which were afterwards sent on. The master of The Jane returned to England, and down to the time of his starting no vessel had arrived able to carry on the cargo, but he left instructions with the British Vice-Consul at Fayal to forward the remainder of the hides (about two-thirds of the whole cargo) to Gibraltar at the earliest opportunity. The Vice-Oonsul afterwards chartered the schooner Flora, on the part and behalf of the owners of the. cargo of hides landed from the brig Jane, to proceed therewith to Gibraltar and there deliver them on payment of 360/. freight, with primage five per cent. The hides were received by the consignees in Gibraltar, and they paid The Flora's freight upon them. An action was then brought by the owner of The Jane against the charterers for freight under the original charter party. Held, that the plaintiff was not entitled to the chartered freight, as the homeward voyage had not been performed, and the hides had not been carried to their destination in fulfilment of the charter party. Nor was the plaintiff entitled to any freight, pro raid itineris, for the voyage from England to Buenos Ayres. But it was held that he was entitled to claim a reasonable freight for the conveyance from Buenos Ayres to Fayal of that portion of the goods which came to the hands of the freighters and was accepted by them. " The goods were forwarded by the Vice-Oonsul, acting as the agent of the freighters : but the Vice-Oonsul was desired by the master of The Jane to forward them, though not desired to forward 632 THE DELIVERY. Sect. 559. them on behalf of the shipowner. The agents of the freighters at Gibraltar have accepted the goods, paid the frieight, and thereby recognised the act of the Vice-Gonsul as their agent. The case, therefore, must stand in the same position as if the freighters had accepted the goods of the master of The Jane at Fayal and con- veyed them on their own account to Gibraltar, in which case we think that they would be liable to pay freight for that portion of the voyage performed in respect of the goods accepted. " At what rate the freight is to be calculated is the remaining question to be considered, and we are of opinion that the shipowner under the circumstances of this case, cannot claim any remunera- tion beyond a reasonable freight from Buenos Ayres to Fayal, the amount of which the arbitrator will determine. The freight agreed upon by the charter was not of an ordinary kind, but a gross sum to be paid in case of the performance of an extraordinary voyage. That voyage has not been accomplished. The voyage was not in its nature divisible, so as to give to the shipowner a claim to any aliquot part upon the performance of a certain portion of the voyage. "The claim of the shipowner must therefore rest upon an implied contract to remunerate him for service performed, not according to the agreement, but a service from which the freighters have received a benefit ; and whether upon the whole the shipowner has been overpaid or not wiU appear when the account is taken by the arbitrator on this principle between the parties" {p). The sMp- owner must have heen in a position to carry the goods on. 560. The claim, then, for freight, when the goods have been given up by the shipowner short of their destination, must rest upon a new contract, either expressly made, or to be inferred from the conduct of the parties. No such inference can be drawn unless the goods, or their pro- ceeds, have been accepted voluntarily, and iu such a way as to show that the further carriage by the shipowner was intentionally dispensed with. If the merchant must either have accepted the goods where they lay, or abandoned them, no promise to pay freight can be presumed from the fact of their being given up to him. The presumption cannot arise unless the shipowner was ip) Per Tindal, 0. J., 2 Bing. N. C. at pp. 670, 571. FREIGHT. ess- able and willing to carry on the goods to their destination, or Sect. 560. might have become so within a reasonable time (q). In Luke v. Lyde (r), however, Lord Mansfield allowed freight pro raid, though the shipowner was not willing to carry the goods on. The ship Sarah was on a voyage frord Newfoundland to Lisbon; she was captured by the French when seventeen days out, and within four days' sail of Lisbon, but was re-taken by an English privateer, and brought into Biddeford in Devonshire. The owners of the cargo received it from the recaptors, on paying half its value as salvors, and afterwards re-shipped it to Spain. It appeared that the freight from Biddeford to Lisbon was higher than from Newfoundland to Lisbon. Luke and others, the owners of The Sarah, abandoned her to their insurers, and did not offer to carry the goods to Lisbon, nor did Lyde, the merchant, require them to do so. It was held that the owners were entitled to pro rata freight upon the cargo after deducting the salvage, that is to say, one-half of the cargo. Lord Mansfield said : " If a freighted ship becomes accidentally disabled on its voyage, without the fault of the master, the master has his option of two things — either to refit it (if that can be done v?ithin convenient time), or to hire another ship to carry the goods to the port of delivery. If the merchant disagree to this, and will not let him do so, the master will be entitled to the whole freight of the full voyage ; and so it was determined in the House of Lords, in the case of Lutwidge and Howe v. Grey, et al. . . . . " Now, here is a capture without any fault of the master, and then a re-capture ; the merchant does not abandon, but takes the goods and does not require the master to carry them to Lisbon, the port of delivery. Indeed, the master could not carry them in the same ship, for it was disabled, and was itself abandoned to the insurers of it ; and he could not desire to find another, because the freight was higher from Biddeford to Lisbon than from New- foundland to Lisbon. There can be no doubt but that some freight is due, for the goods were not abandoned by the freighter, but received by him of the re-captor. The question wiU be, what freight ? The answer is, a rateable freight — i.e., pro rata itineris " — and "as the master had come seventeen days of his voyage, (q) See per Dr. Lushington, The 195 ; but of. O'NeU v. Armstrong, (1895) Soblomsten, L. E., 1 A. & E. p. 297 ; 2 O B 70 d 77 Castel V. Treohman, 1 Cab. & Ell. 276 ; ••>?•• Atlantic Mutual Ins. Co. v. Bird, 2 Bos. ('') 2 Burr. 882. 634 THE DELIVERY. Sect. 560. and was within four days of the destined port when the accident happened, therefore he ought to he paid his full freight for ■i-f parts of the full voyage for that half of the cargo which was saved." It may be douhted whether the grounds given for this decision can now be regarded as satisfactory (s). Illustrations. 561. In Hunter v. Prinsep {t), an acceptance of the proceeds of the cargo, sold by the order of a Yioe- Admiralty Court, the vessel having been wrecked but the cargo saved, did not entitle the shipowner to any freight out of those proceeds. The order for sale had been made by the Court, presumably in an action by the salvors, on the application of the master of the vessel, who acted to the best of his judgment for all concerned, but without the knowledge of the cargo owners. Lord Ellenborough dis- tinguished the case from one in which, if the ship and goods had been restored in specie, the shipowner might have earned his full freight by carrying the goods on to their destination ; and wliere the possibility of doing so had only been prevented by the act of the Court in making a sale pending the suit, without any fault of the shipowner. " However just it may be that a substitution of Acceptance of money for goods, made by the authority of a competent tribunal, salTof cargo. ^^^^^ ^^ equivalent to the actual restitution of the goods them- selves, as far as respects all interests in and liens upon that fimd, and however reasonable it may be that an owner thus taking the substitute, which requires no further conveyance, should be con- sidered as virtually dispensing with the further duty of the ship- owners, which would have remained to be performed if the goods had ■stUl continued in specie, yet no such dispensation with the duty of further conveyance on the part of the owner of the goods can be implied in a ease like the present, in which the further con- veyance of them is rendered impossible hy an act of the immediate agent of the shipowners themselves, to which he, the owner of the goods, is neither actually or virtually consenting by himself, or any agent empowered to consent on hi& behalf ; and to which he is not com- pelled to submit by any regular exercise of legal authority in any quarter whatsoever ; and from which he can, according to what is contended for on the part of the defendants, derive no benefit (s) Cf . other cases of re-capture, cited lupra, s. 556. (0 10 East, 378. FREIGHT. 635 whatever, inasmuch as the pro rat& freight claimed by them exceeds Sect. 561. the whole amount of the proceeds of the goods sold" (m). In "Vlierhoom v. Chapman {x), the goods had heen properly sold Sale at a port by the master, at a port of refuge, in order to save their value, cargo's own The cargo was rice, and had been damaged in a hurricane, so that '^™'^ • if not sold it would have become worthless, by putrefaction. The sale was, therefore, made in the interest of the cargo owner, though without his knowledge, in the exercise of the agency which the law confers on the master in cases of necessity ; and it was contended that the master in his double agency, for shipper and shipowner, might be presumed to have made a reasonable contract between his principals, under which reasonable freight would be payable for the part of the voyage performed. Parke, B., however, said : — " It is difficult to conceive any con- jurtction in which such a presumption could be made ; for the agency of the master from necessity arises from his total inability to carry the goods to the place of destination, which dispensed with the performance of that primary duty altogether, and the right to freight pro rata from the presumed waiver on the part of the shipper of the performance of a duty which the master was ready to execute The truth is, that the goods were in the same situation as to the claim for freight as if they had been abandoned by the shipowner and left behind at the Mauritius, and there sold by the owner" (y). In Hopper v. Burness (s) the same doctrine was extended to the Sale to raise case of a sale of part of the cargo by the master at a port of refuge, repairs, in order to raise funds for repairs necessary to enable the ship to complete the voyage. The cargo owner was entitled to treat the proceeds of the sale as a loan to the shipowner, and he did so treat them, instead of claiming an indemnity, for the goods in fact had sold for more at the port of refuge than they were worth at their destination. Still it was held that no freight was payable, for the master had put it out of his power to carry on the goods by selling them, and the shipper had no option with regard to the sale. But where a claim had been made by the shipowner for ^ro ratA freight, and he had stopped certain proceeds of the cargo for it, («) Per Lord EUenborough, 10 East', («) 13 M. & W. 230. at p. 393. And see Western Transp. g^J^' ^o also, HiU .. Wilson, 4 0. P. D. Co. V. Hoyt, 69 N. T. 230. ^J^ ^ q p j, 137 636 Sect. 561. Sale at instance of cargo owner. Freight pay- able in advance ; must be paid though ship and goods lost. THE DELIVERY. and a promise was made to pay the pro rata freight in considera- tion of the proceeds being liberated, it was held that the promise was founded on a good consideration and might be enforced (a). In The Eliza Lines (b), cargo which was not perishable had been sold at a port of refuge under an order made by the Court in a salvage action, upon the application of the cargo owner ; though the ship was being made ready to carry it on. It was held, in the United States, that the cargo owner must pay the amount of the freight, less the estimated expenses of earning it saved by the non-completion of the voyage ; and less also any net freight earned by the ship during the time which would have been occupied if the voyage had been completed. This was treated as the proper measure of damages for breaking up the voyage. 562. We will now consider cases in which the contract does not make the payment of freight depend on delivery of the goods. When that is so, as where the payment is to be on shipment, or at a definite period after the ship has sailed, the payment becomes due at the defined time, and it continues to be due if not paid, although, owing to the loss of the ship or of the goods, it may have become impossible to carry the goods to their destination (e). In Oriental Steam Ship Co. v. Tylor (d) one-third of the freight was to be paid " on signing bills of lading." The ship sailed and was lost, with her cargo, before bills of lading had been signed. The charterers sought to avoid payment of any freight by not pre- senting bills of lading for signature. But it was held that they were still bound to present them, and were liable in the amount of the freight payable in advance, as damages for not doing so. In Weir v. Grirvin (e) the freight was to be at a certain rate per ton of the quantity delivered to the consignees ; but it was to be " due and paid as follows : two-thirds in cash three days after sailing from Tyne, ship lost or not lost, and the balance on im- loading and right delivery of the cargo." During the loading part of the cargo already shipped was destroyed by fire. The charterers loaded the balance of the cargo, and the ship sailed. (a) Thornton v. Fairlie, 8 Tatin. 354. (J) The Eliza Lines, 61 Fed. Rep. 308 (1894). (c) Andrew v. Moorhouse, 6 Taun. 435 ; Byrne v. SchiUer, L. R., 6 Ex. 20, 319 ; Smith v. Pyman, (1891) 1 Q. B. 42. {d) (1893) 2 Q. B. 618. (e) (1900) 1 Q. B. 45, affirming (1899) 1 Q. B. 193. PEEIGHT. 637 Held that the two-thirds advance freight did not become payable Sect. 562. upon the cargo destroyed. In Smith v. Pyman (/), one-third of the freight, less an allowr Freight to be I. . ,. n , , .„ . ,„ advanced "if ance for interest and msurance, was to be advanced " if required, required." The ship was lost almost immediately after, sailing. No demand for freight in advance had then been made ; but it was demanded afterwards, when the bUls of lading were presented for signature. The Court of Appeal, reversing Charles, J., held that the ship- owner could not require payment of the one-third freight after the loss. The allowance to be made for insurance showed that the requirement must be made while insurance was possible. It has been said that freight is the reward for carriage and delivery, and that a payment made due in advance in this way cannot properly be called freight (gf). But that is the name by which it is expressed by those who make these contracts, and perhaps the doubt as to its propriety would not now have much effect (A). Where freight due in advance has been paid it cannot be Advanced recovered again from the shipowner upon the frustration of the reclalmable. voyage, although the goods be lost («). Where the agreement was for a transit consisting of several parts, to Colon (AspinwaU) by the packet of one company, thence to Panama by rail, and thence to San Francisco by the packet of another company, and the freight for the whole was payable in advance, and was to be " considered as earned, ship lost or not lost," it was held that no part of the freight could be reclaimed by the shipper upon a loss of the vessel, with all her cargo, on the voyage to Colon {h). 563. The question whether the freight is intended to be paid Construction independently of delivery is one of construction of the contract. ° contracts. In Mashiter v. Buller (/) the goods were shipped under bills of lading, by which they were to be delivered at Lisbon. Some of the bnis of lading said, " freight for the said goods being paid in London ; " others, " the shippers paying freight for the said goods {/) (1891) 1 Q. B. 42, 742. parte Nyholm, Ee Child, 43 L. J., Bank. [}) Blakey v. Dixon, 2 B. & P. 321 ; 21. Kirohner v. Venus, 12 Moo. P. C. 361. (») De Silvale v. Kendal, 4 M. & S. 37 ; (h) See Andrew v. Moorhouse, 5 Taun. Saunders v. Drew, 3 B. & Ad. 445. 435 ; Allison v. Bristol Mar. Ins. Co., 1 (*) Greeves v. "West India, &o. Co., 22 A. C. 209 ; Great Indian Pen. Eailv Co. L. T. 615 ; reversing 20 L. T. 914. V. Turnbull, 53.L. T. 325. But of. JEx ■ [1) \ Camp. 84. 638 THE DELIVERY. Sect. 563. in London." Lord Ellenborougb. held that these words only meant that the freight should he paid in London instead of at Lisbon, and did not dispense with performance of the voyage ; and he said that i£ the freight had been paid on shipment it might have been recoveyed back, the ship having been lost on the voyage (m). In Andrew v. Moorhouse («) the words in the bill of lading were " freight for the said goods being paid," and evidence was given that the broker who freighted the ship told the shipper that the freight on the voyage, from London to the Cape, was 5/. per ton, paid in London, or 71. paid at the Cape, and that the shipper pre- ferred the contract at 61. The vessel was lost on the voyage, and an action was brought for the freight. Gribbs, 0. J., left it to the jury to say whether the contract was to pay it in any event, or only if the ship arrived at the Cape, and delivered the goods. The jury found for the plainti£Es, and this was upheld by the Court (o). Where the freight upon cattle was made payable upon arrival, but was to be paid " ship lost or not lost," it was held in the United States that the freight became payable although the ship and cattle did not arrive, because they were lost {p). * In Ex parte Nyholm, Ee Child {q), a ship had been chartered for a voyage with cargo from Liverpool to Lagos, to return with a cargo of African produce. The charterers agreed to " pay or cause to be paid as freight for the use and hire of the vessel in respect of the said voyage out and home at and after the rate of 77s. &d. sterling per ton of 20 cwt. for palm kernels, if ordered to a port in the United Kingdom If other goods, freight to be paid thereon in due proportion to above rates. The payment of which to become due and made as follows : — 250^. to be advanced in cash on signing bills of lading, and clearing at the Custom House, Liverpool, less five per cent, for all charges, insurance thereon in- cluded ; such money as the master may require for the ordinary disbursements of the vessel at Lagos, "West Coast of Africa, to be advanced free of interest and commission and other charges ; and the remainder on a true and faithful delivery of the cargo at the (m) So decided in Krall v. Burnett, 25 N. S. 362 ; 2 F. & F. 763. W. E. 305. {p) The Queensmore, 53 Fed. Rep. («) 6 Taun. 435. , 1022. (o) So also, Lidgett v. Perrin, 11 C. B., (j) 43 L. J., Bank. 21. FREIGHT. 639 said port of discharge, in oash, &o." (r). The master and owners Sect. 663. were to have a lien and charge on the cargo and goods laden on board, for " the security and payment of all freight, dead freight, demurrage and other charges." The loading of the ship was completed at Liverpool on Decem- ber 4th, 1877, and niate's receipts were given for the goods. She was cleared at the Custom House, and the master was ready to sign bills of lading in exchange for the .250/. But this was not paid ; the bills of lading were never signed ; and the ship never sailed on her voyage. The charterers filed a petition for liquida- tion on December 13th, and on January. 31st the_ trustee in the liquidation gave notice to the shipowner disclaiming all interest in the charter party. Also, he demanded the goods which had been shipped ; but the shipowner claimed to retain them imder a lien for freight and demurrage. The Court of Appeal held that he was entitled to no lien. And, to the contention that the 250/. became payable as soon as the captain was ready and willing to sign the bills of lading, it was answered, " If it were necessary to decide the point, there would be very great difficulty in applying the principle of the cases referred to to the case of the payment in advance, or at a particular stage, of an instalment of one entire consideration for one complete voyage or other service, where the complete voyage or other service had never been performed, and was on the non- payment entirely given up." And it was further held that, if the instalment were payable, it did not become freight for which there was a lien. The ship had never earned freight, or begun to earn freight, in the sense in which that word was used in the lien clause. 564. A difficulty has sometimes arisen in distinguishing in Distinction charter parties between advances of cash to meet ship's expenses, freight'aud and pre-payment of freight. adyanoes. It is often stipulated that the charterer shall provide cash for the ship's disbursements at the port of loading. Cash so provided is in the nature of a loan to the shipowner, and is repayable by him in any event. If the cargo arrives at its destination, these advances may be conveniently- set against the freight, but the repayment does not depend upon the freight being earned. On (r) The whole clause does not appear in the report ; it has been taken from the papers in the case. 640 THE DELIVERY. Sect. 564. the other hand, as we have seen, if freight is to be paid in advance, it can in no case he recovered. Where that is stipulated for, the intention of the parties is understood to he that that part of the hire of the ship is to be paid beforehand, and •irrevocably (s). Whether the advances are to be made on account of freight, or not, is a question of construction ; the intention of the parties must be gathered from the whole charter party. Or, if the advance is made without previous stipulation in the charter, the intention must be gathered from the agreement, or the conduct of the parties, at the time of making it (t). Where the charter simply provided that the captain should be supplied with cash for the ship's use, and there was nothing to show that this was to be deducted from the freight made payable on delivery, it was held that the advances were not on account of freight (m). On the other hand, where cash was to be advanced at the port of loading, and the " residue of such freight to be paid on the delivery of the cargo in Liverpool," it was held that the advances were on account of freight {x). Teat of The difierence between an advance, and a payment of freight in advance, affects the manner of insuring. The charterer is the proper person to insure advances of freight, since he is at risk in respect of them. Not so advances of cash, irrespective of the freight ; for these must be repaid ia any event, and are, therefore, not at risk (2/). If then the charter party shows that it is the intention of the parties that the merchant making the advances shall insure them, that is strong to show that the advances are to be on account of freight {£). In Hicks v. Shield (s), the clause was, " cash for ship's disburse- ments to be advanced to the extent of 300/. free of interest, but subject to insurance, and 21. 10s. per cent, commission." Lord (s) De SUvale v. Kendal, 4 M. & S. 606 ; The John, 3 W. Eob. 170. 37 ; Saunders v. Dre-w, 3 B. & Ad. 445 ; , , -^n „ ,, -.r ■,^ j , t. » . „ ' .^ „, T T ^ -r. „», W Manfield -o. Maitland, 4 B. & A. Trayes v. Worms, 34 L. J., C. P. 274. ggg A provision that cash shall be provided, "not exceeding 160?. in all, to be ad- W ^« ^ilvale v. Kendal, 4 M. & S. vanced at exchange of 6f)d. to the dollar on account of freight," does not require (^5 ManHeld v. Maitland, supra. the shipowner to take 150? , or pay the (z) Hicks v. Shield, 26 L. J., Q. B. charterer's profit on exchange on 160?. : 205 ; The Karnak, L. R., 2 P. 0. 506 ; The Primula, (1894) P. 128. The Ked Sea, (1896) P. 293 ; (1896) P. [t] See The Karnak, L. R., 2 P. C. 20. insurance. FREIGHT. 6il Campbell said : " This mention of insurance seems to me to stamp Sect. 564. the transaction indelibly as a payment on account of freight, and not a mere loan ; for if the advance was to be insured, it must be an advance of freight ■which is insurable, whereas a loan is not "(a). The question was raised, but not decided, in Tamvaco ». Simpson (6), upon the clause, "The freight to be paid on un- loading and right delivery of the cargo, less advances in cash at current rate of exchange ; one-half of the freight to be advanced by freighter's acceptance at three months on signing bills of lading; owner to insure the amount, and deposit with charterer the club policy, and to guarantee same." Pollock, C. B., held that the acceptance for the half freight was to be a pre-payment, and not a mere loan. Willes, J., inclined to the same view. But the other judges appear to have doubted. 565. In Byrne v. Schiller (c) a charter was made for a voyage Deficiency of from Calcutta to England ; but it gave liberty to the freighters to freights^ paf - send the ship on an intermediate voyage, to Port Louis, with a ^^'^^J^ °*^t^' cargo of rice, for which freight was to be paid at a certain rate, as vessel lost. foUows : — " 1,200^. in rupees to be advanced the master by the freighter's agents at Calcutta against his receipt, and to be deducted, together with 1 J per cent, commission on the amount advanced and cost of insurance, from freight on settlement thereof, and the remainder on right delivery of the cargo at port of discharge in cash as customary." The charter also contained the clause, " The master to sign bills of lading at any current rate of freight required without prejudice to the charter party ; but not imder chartered rates, except the difference is paid in cash." The freighters elected to send the ship to St. Louis ; and they required the master to sign bills of lading at rates below the char- tered rate. They induced him to do this without receiving the difference in cash, saying that all would be made right when the vessel had finished loading, and afterwards they refused to pay this difference, claiming to set it off against advances they had made, amounting to 1,200/. or thereabouts. The vessel was lost on the way to St. Louis ; and the question was, whether the shipowner was (a) Cf. per Bla^kbnm, J., in Allison (*) 3* L. J., 0. P. 268 ; L. E., 1 C. P. .. Bristol Mar. Ins. Co., 1 A. 0. 209, at '^Jj^ ^ ^^ g ^^ 2^^ 3^^ ^,^_ g^^^^ P- 22'- V. Brioe, 30 L. J., Ex. 108. C. C. T r|T 642 THE DELIVERY. Sect. 565. entitled to be paid tlie above difference, in addition to the 1,200^. advances. It was held by the Exchequer Chamber, affirming the Court of Exchequer, that he was. The payment of the difference in cash was to be an absolute payment, as to which the shipowner was to be subject to no contingency. In Carr v. Wallachian Petroleum Co. (d), a vessel had been chartered to carry a cargo of petroleum from Ibraila to London at 84s. a ton. The charterers were prevented from loading by an accidental fire which burnt their stock of oil at Ibraila. An arrangement was therefore made by which the charter was can- celled, and the charterers guaranteed the vessel a sum of 900/. gross freight home, on the understanding that she should be placed on the most profitable charter or trade procurable, and that she would carry 300 tons of cargo. The vessel was loaded with barley at Kilia, and the estimated freight fell short of the 900i'. guaranteed by 343/. 6s. She was lost on the voyage. Held, that the charterers were liable to pay the 343/. 6s., notwithstanding the loss, their guarantee having been broken when the cargo was shipped with a deficient freight. 566. Where a charter party provides that freight shall be pay- able in advance " subject to insurance," this merely means subject to deduction of the cost of insurance. It throws no duty on the shipowner to insure the freight advanced for the benefit of the merchant (e). The arrangement amounts to this, that the shipowner, in con- sideration of the convenience of having the freight advanced, is willing to bear the cost of insuring that advance. That cost is therefore allowed, or returned, to the merchant out of the advance when he makes it. And the shipowner thus, in effect, bears the risk (represented by the cost of insurance) of the freight not being earned (/). In Eodocanachi ». Milburn (g) it was contended that as the ship- owner, under this clause, bears the cost of insuring the advances, it has the effect of relieving him from responsibility for any kind Effect of clause ' ' sub- ject to insurance." {d) L. K.,1 C. P. 636; L. E.,2C.P. 468. (e) Jackson v. Isaacson, 27 L. J., Ex. 392 ; 3 H. & N. 405 ; Watson v. Shank- land, L. R., 2 H. L., So. 304. (/) Of. per Charles, J., Smith v. Pyman, (1891) 1 Q. B. 42. (ff) 17 Q. B, D. 316 ; 18 Q. B. D. 67. Of. HiU V. Scott, (189S) 2 Q. B. 371, 713. FREIGHT. 643 of loss of the advances, or of the increased value in the goods Sect. 566. which represents them. Charterers were there to make advances " on account of freight at current exchange subject to insurance only." They did so, and the cost of insurance was allowed to them. On the voyage the cargo was lost by the negligence of the master, and the question arose whether, in calculating the damages payable by the shipowner, deduction should be made from the arrived value of the cargo of the whole of the charter freight, or only of the freight which remained unpaid. Manisty, J., held that the whole freight must be deducted, on the ground that the char- terers had agreed, as to the sum advanced, " not 'to look to the shipowners, but to their rights under their contract of insurance." But his ruling, was reversed by the Court of Appeal. And in Dufourcet v. Bishop (h), under similar circumstances, the cargo owner was allowed to recover the advanced freight, which he had insured, for the benefit of his underwriters. 567. Where freight in advance is to be paid at the time of Freight pay- sailing of the ship, the condition of sailing is satisfied if she fairly " sailing," starts from her place of loading ready for sea, and intending there gaiJing'" and then to commence the voyage. " According to several cases on the insurance law the sailing is determined to be that period of time when the vessel breaks ground, being at that time fully fit for sea, having the cargo on board which she intends to carry, with a competent crew, and having "permission to leave by having the custom-house clearances on board " («). In Sea Insurance Company v. Blogg (/c), the ship fully equipped and loaded for the voyage, with her crew on board, moved from her loading berth and moored a short distance off in the river (at Newport News) on the evening of February 29th. The object was to prevent the crew from going ashore, so that the ship could proceed to sea early next morning. It was held that she had not sailed on February 29th. It is not sufficient that the vessel has left the harbour, if she was not in a condition to proceed ; as where she had not got her full crew on board, or her necessary papers had not been ob- tained [1). {h) 18 Q. B. D. 373. So also, Great {k) (1898) 2 Q. B. 398. Indian Pen. Kail. Co. v. TurnbuU, S3 (?) Thompson v. Gillespie, 24 L. J., L. T. 325. Q. B. 340 ; Hudson v. Bilton, 26 L. J., (i) Per Parke, B., Eoelandts v. Harri- Q. B. 27; Sharp v. Gibhs, 1 H. & N. son, 23 L, J., Ex. 169, at p. 173. 801. T T 2 644 THE DELIVEEY. Sect. 567. And if the freight is to be paid on the " final sailing" of the vessel from the port of loading, it is necessary that she shall have done more than break ground. She must have got fairly clear of the port. In Eoelandts v. Harrison {m) the ship had loaded at Cardiff, in the Bute Docks ; she had left the docks ready in all respects for the voyage, in tow of a tug, but in passing along the Bute Ship Canal, an artificial channel which led from the docks to the sea, she got aground and ultimately became a wreck. But for the accident she would have gone out on her voyage without further communication with the shore, except for the purpose of putting her pilot ashore. Under these circumstances it was held that the ship had not finally sailed within the meaning of the charter party. The words were considered to mean " her final departure froin that port, and being out of the limits of that artificial port, and being at sea ready to proceed upon her voyage " (m). But in Price v. Livingstone (o), where the vessel had been towed out to sea clear of the loading port (Cardiff) in its commercial sense, though not beyond the custom-house limits of it, and had been anchored, and afterwards driven ashore, it was held by the Court of Appeal that she had finally sailed ; so that advances of freight, which were to be made by acceptances at three and six months' date " from final sailing of the vessel from her last port in the United Kingdom," were due. " ' Final saililig,' I apprehend, means getting clear of the port for the purpose of proceeding on the voyage" {p). The word " port " in the charter party must be construed by reference to the meaning commonly given to it by merchants and shipowners. The extent of the particular port, as understood by them, is not necessarily, or ordinarily, determined by its legal definition for fiscal or like purposes; or even by geographical considerations. Its extent in a commercial sense is rather shown by such considerations as the safety afforded for shipping, the convenience for loading and unloading, the usages of the place with regard to anchoring, loading and discharging, and the area over which those matters are regulated by the authorities having jurisdiction in the port (j). ('») 23 L. J., Ex. 169. {p) Per Lindley, L. J., 9 Q. B. D. at (k) Per Parke, B., 23 L. J., Ex. p. p. 682. 173. Cf. Lang 1). Anderdon, 3 B. & 0. (?) See Garston Co. :;. HicMe, 15 i9^ ; Moir v. Eoyal Exchange Abs. Co., Q. B. D. 680 ; Hunter*. Northern Mar. 6 Taun. 241 ; and M. & S. 461. Ins. Co., 13 A. C. 717. aoodbody*. (o) 9 Q. B. D. 679. Balfour, 4 Com. Ca. 119 FEEIGHT. 645 668. In Thompson v. Gillespie (r), it was held, in an action after Sect. 568. the ship had been lost, that the shipowner could not recover freight Ship must be payable in advance unless she had sailed in a seaworthy condition. ^^^°l J^ °^ The stipulation in the charter party was that one-fourth of the ^'^^^^^J ".^* , freight should be advanced, less 5 per cent, for insurance, interest, is lost. and commission. Lord Campbell, delivering the judgment of the Court, said : " By a policy of insurance the merchant was to be indemnified to the extent of the sum he was to advance. But he could not have the benefit of this iudemnity unless at the com- mencement of the voyage the ship was seaworthy. He must be considered to have promised to pay one-fourth of the freight in advance, if, when the ship sailed, she was in such a condition as that a policy of insurance on the freight would attach, and enable him to recover the money back in case of a subsequent loss." 569. Where part of the freight has been paid in advance, and FreigMpartly . .1,.,, 1 ni ''" advance — the ship arrives at her destination, but with part only of the cargo. Cargo partly a question arises as to how far credit ought to be taken for the sum which has been paid. Ought the payment to be apportioned over Mode of the whole cargo, including that which has not arrived, in which baiaiioet™fe case some of it must be considered as lost to the merchant ; or, is P^"^- the merchant to have credit for the whole, when paying upon the goods that have arrived ? This question arose in Allison v. Bristol Marine Ins. Co. (s), on a charter for a voyage with a cargo of coals, which provided as follows : — " The freight to be paid on unloading and right delivery of the cargo at and after the rate of 42s. sterhng per ton of 20 cwts. on the quantity delivered in full of all port charges, pilotages, Bute Dock wharfage, harbour dues on cargo, and Dover and Eamsgate dues, as customary, and such freight is to be paid, say, one-half in cash, on signing bills of lading, less four months' interest at Bank rate, but not less than 5 per cent, per annum, 5 per cent, for insurance, and 2g per cent, on the gross amount of freight in lieu of consignment at Bombay, and the remainder on right delivery of the cargo, agreeably to bills of lading, less cost of coal short delivered." One-half of the freight was paid on shipment, calculated on 2,178 tons, the quantity stated in the bill of lading; the vessel was wrecked about eight miles from Bombay, her destination, and only about 1,050 tons of the coal were saved and taken to Bombay. (»•) 24 L. J., Q. B. 340. (s) 1 A. 0. 209. 646 THE DELIVKKY. Sect. 569. The shipowner had insured the " freight payahle abroad ;/' and the question was whether any further freight had hecome payahle by the charterer, upon the coal which was saved and delivered ; or whether the whole freight " payable abroad " had been lost. The action against the insurers was tried before Brett, J., and a verdict entered for the shipowner as for a total loss. This verdict was upheld by three judges of the Common Pleas (including Brett, J.) ; but, on appeal to the Exchequer Chamber, their judg- ment was reversed by three judges to two. On further appeal to the House of Lords, the judges were summoned, and four of them, against two, were for reversing the decision of the Exchequer Chamber ; and that was the unanimous conclusion of the House. Blackburn, J., who took the view of the minority, considered that the advance of one-half of the freight was distributive, and must be regarded as a payment of 21s., less deduction, for every ton put on board, without reference to whether it was all delivered or not, and that the remaining 21s. left unpaid on each ton was to be paid upon those tons which were delivered. But the Lords took the opposite view, viz., that the sum paid represented half of the freight of the cargo which should, in fact, be delivered at the destination. Much stress was laid upon the points that the whole agreed freight was to be caloidated " on the quantity deliveredi" and that, if the charterer were compelled to pay anything further, he would be paying at a rate higher than that agreed for upon the coals delivered to him. It seems difficult, however, to read the clause, " such freight to be paid, say one-half in cash on signing bills of ladiag," as referring to the freight ultimately to become payable, and not to the freight expected to be payable. If the former were its meaning there would seem to be a clear right in the charterer to a repay- ment, if ultimately no freight at aU became payable, for the payment would have been a mistake ; but it was expressly recog- nised that no right to repayment could arise. The result of the decision may, perhaps, be said to be, that the words " the amount paid on signing the biU of lading to be deducted from freight in settlement thereof " ought to be implied in charters of this kind, if they have not been expressed {t). {t) Per Lord Selbome, 1 A. C. p. 254. FREIGHT. 647 It is an d fortiori corollary to this case that a lump sum, paid for Sect S69. freight in advance, must he deducted in full on settlement of the freight at the port of discharge, although some of the cargo may have heen lost on the voyage. 570. Next, as to charters in which the freight is payable in Time freights, proportion to the time during which the ship is occupied. Here the freight is in the nature of a rent paid for the use and hire of the ship, and the question when is it earned and payable to the shipowner depends entirely upon the. intention of the parties, as shown by the contract. Difficulties of construction on this point have arisen, because the clause in the charter party which defines the time for payment frequently assumes the existence of conditions which may, or may not, be regarded as conditions precedent to the right to payment. The following cases illustrate these difficulties : — In Havelock v. Geddes (to) the charterers covenanted to pay for the hire and service of the ship at the rate of 24s. per calendar month per ton, to be paid as follows : — Two months on the execu- tion of the charter party, two months more at the end of six months from the commencement date of the charter party, two months more at the end of ten months, two months more at the end of fourteen months, and afterwards two months' freight at the end of each succeeding two months, until the ship should be dis- charged, the balance to be paid immediately upon such discharge. The ship was accidentally -destroyed by fire during the eleventh month. Held, that as the charterers were to pay a given freight per month, each month's freight was earned and became completely due at the end of each month, and the times fixed for actual payment merely postponed that, without creating a condition upon which payment was to depend. On the other hand, in Gibbon v. Mendez («) the freight was to When de- be at a certain rate per ton per calendar month, and in proportion arrival* °^ for any time less than a whole calendar month, until her final dis- charge, or up to the day of her being lost, &c. But it was made payable to the master " in manner following : that is to say, so much as might be earned at the time of the arrival of -the ship at her first destined port abroad, to be paid within ten days next after her arrival at such port and previous to the delivery of her cargo ; («) 10 East, 555. Cf. Crozierv. Smith,! M. & G. 407. (a:) 2 B. & Aid. 17. 648 THE DELIVERY. Sect. 570. and at the expiration of every calendar month after that period, the freight then due was to be paid up from time to time during the continuance of the ship in the service of the freighter " : the balance to be paid on final discharge. The ship was lost by perils of the seas before arriving at any port abroad. Held, that no part of the freight was payable unless, and until, the vessel arrived at her first destined port abroad. " Where the freighter derives no beneficial use from the ship there ought to be a clear express stipu- lation in order to charge him with the payment of freight, and this charter party contains no such stipulation " (y). In Brown v. Hunt(s), the vessel was chartered for a round voyage, from Boston to Savannah, thence to a port in the "West Indies, and thence to Boston ; with liberty to return from the West Indies to any port in the TJ. S., and from thence to Boston. The freight or hire was to be at a certain rate per ton per month, and so in proportion for a less time as she should be continued in the service ; and was to be paid " in thirty days after her return to Boston." She proceeded to Savannah, carried a cargo from there to the West Indies, and another cargo back to Savannah. The latter cargo was discharged by June 23rd, 1812. On July 4th she sailed in ballast for Boston ; and on July 14th she was captured by a British frigate and destroyed. It was held by the Supreme Court of Massachusetts that hire down to June 23rd was payable, notwith- standing the non-arrival at Boston. For that purpose the voyages were distinct, and payment must be made for those which were accomplished. "Monthly j^ modern time-charters it is frequently provided that the in advance. , . . . monthly freight, or hire, shall be paid " in advance." A common form of clause is that an agreed sum shall be paid " per calendar month, and at and after the same rate for any part of a month, hire to continue until her re-delivery to the owner, payment for the said hire to be made in cash monthly in advance." Under this clause it has been held by the Court of Appeal (Lord Esher, M. R., and Rigby, L. J., diss. Smith, L. J.) that the full monthly payment must be made at the beginning of each month, including the last, although the reasonable expectation may be that the employment will only continue for a part of the month {a). {y) Per Bayler, J,, 2 P, * Aid. at ("' " ^*^^- ^^ (l^l*). 2' -' ■" " W Tonnelier ». Smith, 77 L. T. 277 ; P' -' 2 Com. Ca. 121, 258. FREIGHT. 649 571. In Maokrell v. Simond (&) a vessel was chartered ty the Sect. 571. month for an outward and homeward voyage, the hire to be at a Outward and certain rate per month payahle on and after the completion of her l^o^^ward ':':•' r voyages. homeward voyage. She delivered her cargo outwards, but was lost with cargo on the homeward voyage. It was held by the King's Bench that freight was payable for the period of the outward voyage, but not for the period occupied on the voyage homeward before she was lost (c). And where the freight, except certain advances, was " to become Where pay- due and be paid on the final discharge of the vessel " on the home- discharge." ward voyage, it was held that it could not be claimed after the vessel had been lost while performing her outward voyage {d). So also in Smith v. Wilson {e), where the charterer covenanted to pay 670^. " per month for every calendar month the ship should be employed by him " during her intended voyage to Monte Yideo and back to her port of discharge ; such freight " to be paid on the arrival and discharge of the said ship at her destined port in Ghreat Britain." The ship was forcibly seized on her outward voyage, and brought back to England by her captors. There she was liberated, and after repairs was again placed at the disposal of the charterer ; but he refused to give any directions for the voyage, and renounced the charter party. The shipowner brought an action («) Abbott (5th), 333 ; (13th), 617 ; voyage out and in, and the ship be oast Maol. (3rd), 483. away on the homeward voyage, no («) Lord Mansfield said : — ' ' This ques- freight is due, no wages are due, because tion depends upon the construction of the whole profit is lost ; and by express the charter party. If. the parties have agreement the parties may make the expressed their meaning defectively, the outward and homeward voyage one. Court must be guided by the nature of Nothing is more common than two the thing. " The charter party puts no voyages ; wherever there are two . case but that of a prosperous voyage out voyages, and one is performed, and the and home ; it provides for freight on the ship is lost in the homeward voyage, supposition that the ship wiU arrive safe freight is due for the first. Here the and report her cargo. No provision is outward and homeward voyage are so made for any other case. If the ship callecIMn the charter party. The cargo be cast away on the coast of England is loaded outwards, and the owner and never arrive at the port of London, covenants to pay port charges on the yet, if the goods are saved, freight outward voyage. The whole of that shall be paid, because the merchant voyage was completed : port duties are receives advantages from the voyage. incurred and paid. Nothing, however This is not expressed by the charter is due on the homeward voyage, though party, but arises out of the equity of the the ship might be out a month." case. Freight is the mother of wages, (d) Byrne v. Pattinson, Abbott (5th), the safety of the ship the mother of 335; (13th), 619; Macl. (3rd), 485. freight : that is the general rule of (e) 8 East, 437. Cf. Liddard v. Lopez, maritime law. If there be one entire 10 East, 526. 650 THE DELIVERY. Meaning of "month," "calendar mouth." Sect. 571. for the full freight whioh would have been earned had the voyage been completed. But it was held that his readiness to perform the voyage did not entitle him to the fi'eight ; for the right to pay- ment of that depended on his arrival at the destined port ia Great Britain, and the most the shipowner could do was to endeavour to complete the voyage ; he could not ensure its accomplishment. 571a. The word "month" in a charter party, as in other com- mercial contracts, is understood to mean " calendar month," unless the context indicates the contrary (/). A " calendar month " is computed by proceeding from the given day in one month to the day with the corresponding number in the next month. For example, noon of April 30th to noon of May 30th is a calendar month (ff) . As, however, a part of a day is in law reckoned as a whole day, where no intention to the con- trary is expressed (h), a charter for a month which began at any time on April 30th would expire at the close of May 29th. If the succeeding month, being shorter, has no day with a number corresponding to that of. the day of commencement, the calendar month expires at the close of the last day of that month (i). Thus, a charter for one calendar month which began to run on January 30th would expire at the close of February 28th in an ordinary year, and at the close of February 29th in leap year. Where a contract is made for a period "from" a particular date, the rule is to exclude the day of the date named. So that a policy "for twelve calendar months from November 24th, 1887," was held to extend to and include November 24th, 1888 (A-). And where something is to be done "within" a specified period, after some event, the day of the event happening is excluded (/). Time ocou- 572. If the charterer is to pay at a given rate, in proportion to pied in •. ....... , 'i.x- repairs not the time the ship IS m his employment, he will not be allowed to (/) See Jolly v. Young, 1 Esp. 186 ; Hart V. Middleton, 2. 0. & K. 9. Cf. Turner i. Barlow, 3 F. & F. 949. In Acts of Parliament, also, ' ' mouth ' ' means calendar month: 13 & 14 Vict, c. 21, 8. 4. (g) Freeman v. Head, 4 B. & S. 174. (A) Glaasington f. Rawlins, 3 East, 407; Eeg. V. St. Mary, Warwick, 22 L. J., M. C. 109 ; Angier v. Stewart, 1 C. & E. 359 ; and see infra, s. 631. (i) Migotti V. ColviU, 4 C. P. D. 233. (k) South Staffordshire Tramways Co. V. The Sickness, &c. Association, (1891) 1 Q. B. 402 ; and see Sickness, &o. Assoc. V. General Accident Ass. Corp., 19 Sess. Ca. (4th) 977. • (l) Havdy v. Eyle, 9 B. & C. 603 ; EadoUffe v. Bartholomew, (1892) 1 Q. B. 161. FREIGHT. 651 make any deduction for time during whicli she may have been laid Sect. 572. up for repairs, unless this has been stipulated for. And that is so deducted even where the charter expressly makes it the duty of the ship- gtip^ated. owner to keep the ship in repair (m). The same is true of other detentions which may occur. If they arise owing to defaults of the shipowner, there may be a counter- claim against him ; but in the absence of agreement to the con- trary, the time for which the freight is to be paid runs without a break, from the beginning to the end of the agreed voyage or service («). In Hough V. Head(o), a time-charter provided that, "in the event of loss of time by deficiency of men, collision, breakdown of engines, and the vessel becomes incapable of steaming or proceeding for more than forty-eight working hours, payment of hire to cease until such time as she is again in an efficient state to resume her voyage." Also, damages of the seas and other perils were mutually excepted. In the course of a voyage under the charter, the vessel struck something with her bottom ; but she made no water, and continued working for some months after ; until, on being put into dry dock for inspection, it was found that her keel had been broken, and considerable damage had been done to her bottom. The charter was still running, and the charterer claimed exemption from payment of the hire until the vessel should be fit to resume employment. In an action against underwriters for the freight thus lost, it was held that the charterers were not entitled to refuse to pay the freight; the cause of the loss of time not being a " collision." In Hogarth v. Miller (p), a time-charter provided that " In the event of loss of time from . . . breakdown of machinery, want of repairs, or damage whereby the working of the vessel is stopped for more than 48 consecutive hours, the payment of the hire shall cease until she be again in an efficient state to resume her service." The vessel put back to a port of refuge owing to a breakdown of her high-pressure engine. A tug was sent out by (»«) Havelookii. Geddes, 10 East, 553 ; -(o) 54 L. J., Q,. B. 294 ; affirmed, tut Ripley v. Soaife, 6 B. & C. 167 ; i°* "'^ t^^ point mentioned in the text, United States.^. Shea, 152 IT. S. 178, ^^ ^- ^■•^- ^„*^-.^,, . ,^, , ^ ^^ [p) 16 Seas. Oa. (4th) 699. As to the (^°° )■ expenses at a port of refuge under a (m) SeelnmanS.S. Co. d. Bisohoff, 6 charter of this kind, see The Durham Q. B. D. 648 ; 7 A. 0. 670. City, 14 P. D. 85. 652 THE DELIVERY. Sect. 572. the shipowners, under arrangement with the charterers, and the vessel proceeded with the aid of the tug, partly using her own engines, to her destination, and there discharged her cargo. Lord Trayner held that the hire continued ; the vessel having in fact carried the cargo, though she was less efEeient than but for the breakdown she would have been. This was, however, reversed by the Court of Session, mainly on the ground that the arrange- ment under which the tug was sent out had determined the matter. On appeal to the House of Lords {q), it was held that the hire ceased to run from the date of the breakdown until the arrival at the destination ; but that the shipowners were entitled to payment during the period of the discharge, as the vessel was then efficient for that purpose. In Moorsom v. Greaves (r), the ship was chartered for a voyage to any port or ports in St. Domingo, and back to London, and the charterers were to pay 6,300/. for the first eight months, " and if she should take up longer in completing the said voyage, then at the rate of 47s. &d. per ton per month for such further time as she should be so employed or engaged." The ship discharged part of her outward cargo at Port au Prince, and was then ordered by the charterer's supercargo to go to Cape Nichola Mole. That place at the time was blockaded, and the ship was seized in attempting to run the blockade, and was detained between five and six weeks. After being liberated, she returned to Port au Prince and took in a homeward cargo, which she brought to London. The whole adventure lasted thirteen nionths. Lord Ellenborough held that the charterers were liable for the whole period. "As the ship was taken in proceeding to Cape Nichola Mole by order of the supercargo, the voyage was never discontinued; and the freighters were answerable for the subsequent detention in the same manner as if it had arisen from contrary winds or from an embargo." Government 573. In Government charters it has long been the practice to charters. • n insert a clause empowenng Commissioners of Transport, or of the Admiralty, to make an abateraent from the time-freight payable for the chartered ship if delay has occurred owing to breach of orders, or neglect of duty by the master, or owing to the ship becoming incapable of performing the service. In Beatson v. (j) (1891) A. C. 48 ; dies. Ld. Bramwell, who agreed with Ld. Trayner. (r) 2 Camp. 626. FREIGHT. 653 Schenck (s), the charter provided for this ahatement, in case of loss Sect. 573. of time " from the ship's inability to execute or proceed on the " inability to service on which she might he employed; " and it was held that pjoggg^?)"^ an inability to proceed which arose from loss of the crew, through small-pox, and an impossibility of getting others, was within the clause. How calculated and paid. 574. The rate at which the freight is to be paid is generally Where no stated in the bill of lading or charter party. If it is not stated, but the contract shows that freight is to be paid, it must be calculated at the ordinary rate ruling at the time when the ship- ment was made. In Grumm v. Tyrie {t), a cargo had been shipped which was to become the property of the owners of the ship on certain contingencies, and the bill of lading made it deliverable " to order , who on faithful delivery thereof being shown shall pay me. for freight and conveyance." No rate of freight was stated, and the space which would usually contain the statement was filled up by a black line drawn along it. It was held that the bill of lading holders must pay freight for the cargo. 575. But where the bill of lading expresses that the goods are Freight free. to be carried freight free, or at a nominal rate, the holder of the bill of lading is entitled to have them upon paying what is reserved, and cannot be called upon to pay more. That course is frequently adopted when goods are shipped on account of the ship- owners. And questions sometimes arise between holders of the ♦ bills of lading, who have advanced on the goods, and assignees or representatives of the shipowner. It is clearly decided that a mortgagee of the ship, who takes Power of possession of her after the goods have been shipped under the contr°aot"at ° contract, cannot claim more freight than the contract stipulates ''°™i'^'- for (m). The shipowner in possession has power to employ the withstanding ship in carrying goods freight free, or at nominal freights, although she has been previously mortgaged. So where the ship has been sold the purchaser only takes her subject to the existing contracts. (s) 3 East, 233. («) Keith v. Burrows, 2 C. P. D. 163 ; («) 33 L. J., Q. B. 97 ; 34 L. J., Q. B. 2 A. C. 636 ; Brown v. North, 22 L. J., 124. Ex. 49 ; infra, s. 692, 654 THE DELIVERY. Sect. 575. In Mercantile Bank v. Gladstone (x), cotton had been shipped at Calcutta, under bills of lading which made it deliverable to the defendants' order, freight "for the said goods free on owner's account." This was done- under an arrangement between the defendants and Fernie & Co., who were the owners of the ship. But before the shipment had been effected, Fernie & Co. had transferred the ship to the plaintiffs ; and it was contended that the master had no authority to sign bills of lading in that form, and that the plaintiffs were entitled to freight. It was held that the master retained the authority he had received from Fernie & Co. until he received notice of the change of ownership. Bramwell, B., said (y): "I am very clearly of opinion that they (the plaintiffs) cannot recognize the act of the captain in receiving goods on board, and at the same time say that they will not be bound by the terms upon which he received them. It seems to me, therefore, that the fact that the plaintiffs are the buyers of the ship makes no difference in the liability of the defendants; it does not make them parties to a contract into which they never entered." The goods were there claimed by the defendants as unpaid vendors, on the failure of Fernie & Co. ; and it was contended that freight became payable as the goods ceased to be on Fernie & Co.'s account. But that contention also did not avail. The goods were freight free, whatever might happen. In Miller v. "Woodfall (s), the question arose whether any freight was payable upon goods which were being carried by the ship- owners on their own account, in a ship which was wrecked on the voyage, and abandoned to the underwriters ; the cargo being brought on in her after the abandonment. The voyage was from St. John, New Brunswick, to Liverpool ; the ship went ashore at Southport, where notice of abandonment was given; and after some of the cargo had been lightered to Liverpool, she was towed in with the remainder. It was held that the underwriters were entitled to compensation for the use of the ship, after the casualty, in respect of so much of the cargo as was carried in her from Southport to Liverpool ; but not to freight for the voyage from St. John to Liverpool. On the other hand, there is no reason why goods shipped on {x) L. E., 3 Ex, 233. (y) L. K., 3 Ex. at p. 240. («) 27 L. J., Q. B. 120. FREIGHT. 655 behalf of the owner of the vessel should not he liable to freight. Sect. 575. If a bill of lading be made out for the goods, reserving a freight, a consignee, or indorsee from the owner, is only entitled to claim them subject to payment of that (a). 576. The amount of freight is generally to be determined by Measurement reference to some standard of weight or measurement specified in fre^ht.^ the contract. The goods are to be weighed or measured in order to calculate the payment. The question when this is to be done is frequently left undetermined ; and as the weight or the measure- ment of the same goods differs at different times, it may be a matter of importance (6). In the absence of agreement, or of a uniform custom of trade, to Lowest to be the contrary, the rule is that, if the weights or measurements at the loading port and the port of delivery differ, the lowest weight or measurement is to be taken in calculating the freight. So that if the cargo has swelled on the voyage, the freight is payable on the quantity as shipped ; while if it has wasted, as by drainage or evaporation, the quantity to be taken is that on delivery (c). This agrees with the other rules as to freight. For, on the one hand, the contract is made with reference to the goods delivered to be carried, and not with regard to any water or foreign substance which may get into them during the voyage, and so increase their bulk and weight ; and, on the other hand, freight is not payable upon any part of the goods which may have been lost on the voyage, whether by wasting or otherwise. The matter seems to have been first definitely decided, in England, in Gibson ». Sturge ((f). There a cargo of wheat was shipped under a bill of lading, which described it as 3,700 chetworts (2,664 quarters), but which contained the words " Quantity or quality unknown." On delivery it was found that the wheat had increased in measure to 2,785 quarters. The cause of this was unknown, but the majority of the Court assumed that it was due to an absorption of water. Pollock, C. E., and Alderson and Piatt, BB., held that the freight was payable on the number of quarters shipped. Martin, B., dissented. The rule laid down was, (a) Wegueliav. Cellier,L.E., 6H.L. tli^t is expressly agreed: supra, sa. 69 nog et seq. ; Q-eraldes v. Donison, Holt, 346. («) But of. per WiUes, J., in Dakin v. (i) The statement of quantity m the Oxlev 33IiJ CPullQ till of lading is not conclusive, unless ((?) 24 L. J., Ex. 121. 656 THE DELIVERY. Sect. 576. that tlie freight is to he paid " on that amount alone which is put on hoard, carried throughout the whole voyage, and delivered at the end to the merchant" (e). Martin, B., dissented, mainly on the ground that a rule which required the measurement to he taken at the port of loading would he highly inconvenient, and might enable the consignees of cargo to raise questions for the purpose of delaying payment of the freight. He said : " In my opinion, therefore, in the ahsence of contract upon the subject, and considering what is most just and reasonable, what is most analogous to cases of a similar kind, and what is the most convenient practical rule upon the subject, and the most beneficial to all parties interested, the measurement at the port of delivery affords a test for the ascertainment of freight preferable to that of measurement at the port of loading." Pollock, 0. B., replied to this view that if the experience of commerce had discovered that measurement at the port of dis- charge was most convenient, a usage in the matter would have been established. As there was no evidence of any such usage, he inferred there was no such convenience as ought to influence them in establishing a rule. On the other hand, the rule laid down by Martin, B., would tend to encourage fraud and negligence on the part of masters, for they would be able to increase the freight by injuring the cargo. The judgment of the majority of the judges in that case was approved, and followed, by the Courts of Exchequer and Ex- chequer Chamber, in Buckle ». Knoop (/). There the cargo was of cotton, shipped under a charter party, by which freight was to be paid at the rate of " 75s. per ton of 50 cubic feet delivered." The cotton had been highly pressed shortly before shipment, at Bombay, and when unloaded at Liverpool, being released from the confined space of the hold, it expanded very considerably — beyond, indeed, what the ship could have contained. It was held that the freight was payable on the measurement of the cotton at Bombay. Special 577. This rule will not be followed if the parties express them- selves clearly to a contrary effect. In Buckle v. Knoop (/), the word " delivered" in the clause, " and deliver the same ... on being paid freight as follows, (e) Per Alderson, B., 24 L. J., Ex. at p. 126. (/) L. E., 2 Ex. 125, 333. FEEIGHT. 657 viz., 75s. per ton of 50 cubio feet delivered for cotton and/or wool," Sect. 577. was held to have reference to what cargo was to he paid upon, not to the time at which the measurement was to he taken. It there- fore did not prevent the application of the ordinary rule. But in Coulthurst v. Sweet [h), where the words were " paying freight for the said goods at the rate of 3/. sterling per ton of 20 cwt., nett weight delivered" the intention to pay on the delivery weight was considered clear ; and it was held that excess freight, paid under protest upon the shipping weight stated in the bill of lading, in order to obtain possession of the goods, might be recovered back («). In that case, however, the bill of lading adopted the ordinary rule, for the goods (green bark) would naturally be lighter on delivery than on shipment. It is not unusual, in carrying grain, for the shipowner to stipulate that, "in the event of the cargo or any part thereof being delivered in a damaged or heated condition, the freight shall be payable upon the invoiced quantity taken on board, as per the bill of lading, or half freight upon the damaged or heated portion, at the captain's option, provided no part of the cargo be thrown overboard or otherwise disposed of on the voyage." Where a charter party containing this clause also provided that the freight should be at the rate of " 7s. per imperial quarter delivered," and a small part of the cargo was damaged by heating, it was held that the captain was entitled to elect to be paid on the quantity taken on board, as shown in the bill of lading ; and that it was no bar to his right to do so, that the bill of lading contained the memorandum " quantity and quality unknown" {k). 578. In Spaight ®. Farnworth {I), the charter party provided "Intake that the freight on the cargo of deals, battens, &c. should be paid ^^^ntity" at the rate of 3/. 5s. per St. Petersburg standard hundred of 1,980 delivered." superficial feet, and on deal-ends at the rate of 21. Is. Bd. per the Hke hundred, eight feet and under. " Freight payable on deals and sawn lumber on the intake measure of quantity delivered." A cargo was shipped at St. George's, New Brunswick, and a bill of lading was signed for a specified number of pieces of deals, battens, and scantling, and for a specified number of pieces of deal-ends, freight to be paid as per chaxter party. According to {h) L. R., 1 C. P. 649. {k) TuUy v. Terry, L. E., 8 0. P. 679. (i) Of. Shand v. Grant, 9 L. T. 390. [I) 5 Q. B. D. 115. C. — C. ' U U 658 THE DELIVERY. Sect. 578. the usual course at St. George's, tlie timber was measured by the shipper on the method known as the overall measurement, and the shipper made up a specification showing the number of pieces shipped of various dimensions. The dimensions of each piece were chalked upon it before shipment. On the voyage some of the deal and deal-ends were lost. And on some of the pieces deKvered the chalk-marks had become oblite- rated. The question was, how was the freight on these to be ascertained? The defendants claimed to remeasure them at Liverpool, the place of discharge, on the overall method, and pay on that. But this mode would have brought out the pieces lost as abnormally large, if the specification was accurate. The ship- owners, on the other hand, claimed to treat the sizes of those pieces as being of the fair average of the cargo ; to deduct the proportion which they bore, on that assumption, to the rest of the cargo ; and to receive freight for the remainder on the St. George's specification. Bowen, J., adopted the shipowners' contention as being better directed to the true problem to be solved, viz., to discover the intake figures and dimensions actually attributed at the port of loading to the cargo which was delivered. " The plain meaning of the words in the charter party is that freight is to be paid on the intake, that is to say, the shipment measure or dimensions of the actual quantity delivered ; the measure, that is to say, which the surveyors put upon the timber when it is measured for the purposes of the specification before shipment alongside the ship. I see no reason for attributing to the words ' intake measure ' the less obvious meaniag, ' intake method of measurement ' " (m). Usages as to 579. Again, the rule as to measurement may be controlled measurement. , . by an established uniform usage in the particular trade. In Bottomley v. Forbes (w) the freight on cotton shipped at Bombay was to be paid on a calculation of fifty cubic feet to the ton. It was held that evidence was admissible, to explain the meaning of the contract, of a usage at Bombay to pay on the measurement taken at Bombay before loading. It is said that in the West India trade the freight on sugar and («i) At p. 118. Cf. Fullagseue;. Wal- qn&niiiy dLeliYeied., as ascertained at the ford, 1 Cab. & Ell. 198. These timber pm-t of discharge." ohartersnow sometimes make the freight («) 5 Bing. N. C. 121. So, also, payable "on the intake measvirements of Buckle v. Knoop, L. R., 2 Ex. 126, 333. FEEIGHT. 659 molasses is regulated by the weight of the casks at the port of Sect. 579. delivery ia this country (o). That weight is always less than the weight on shipment, so that here also the customary rule accords with that estahlished by law in the absence of custom or agreement. In Young V. Canning Jarrah Timber Co. {p), the cargo was to consist of " 9 in. X 3 in. planks of reasonable lengths ; " planks were shipped whose cross-measurements exceeded those dimensions. By the custom, in London, of the hardwood timber trade fractions of a quarter of an inch are disregarded in measuring cross-dimen- sions. Held, that the freight must be ascertained by measuring the planks in accordance with the custom. 580. Where there is an ambiguity in the meaning of the words AmHgrdtyas used to describe the standard, or the mode of measurement of the measurement. cargo, the true meaning must be ascertained by considering the circumstances under which the contract was made, and the ordinary practice of the particular trade (q). The matter to be determined is, what meaning did the parties attach to the words when they made the contract ? But if the contract itself indicates the meaning to be given, that will of course be adopted. In The Skandinav (r), the charter party provided that freight on a cargo of props should be "at and after the rate of 35s. British sterling, in full per 180 English cubic feet taken on board as per Gothenburg custom." The cargo was shipped at Werkeback for Hull, and was not measured before loading. On arrival at Hull it was measured on the English method, which is more favourable to the cargo owners than the Gothenburg method of measuring. The Court of Appeal, reversing the judgment of Sir E. Phillimore, held that freight was payable on the quantity ascertained on the Gothenburg method. "The Court must adopt a construction which has a meaning with refer- ence to the facts of the case. ... It has been proved that there is a particular custom or method of measuring props in use at Gothenburg. There is no other custom to which the words in the charter party can apply but that. It was suggested on the part of the respondents that the custom mentioned had reference to the (o) Abbott (3th), 296 ; (13th), 579 ; (?) See Nielsen v. Neame, 1 Cab. & Gibson V. Sturge, 24 L. J., Ex. 121. Ell. 288. Xp) 4 Com. Ca. 96. (r) 50 L. J., P. 46 ; 51 L. J., P. 93. TJU2 660 THE DELIVEEY. Sect. 580. Qianner of loading the vessel ; but there is no evidence at all of any such custom " (s). Bill of lading 581. Unless the freight is expressly to he paid upon the quan- coBclusive titles stated in the hill of lading, those quantities are not conclusive. nn I psa so agreed. They have generally been put in by the shipper, and if so may be used against him as admissions. If they were accepted as correct by the master, they are also evidence against him and against the shipowner. But either party is generally at liberty to show that there has been a inistake in the statement {t) . If, however, the freight is expressly to be paid upon the quantity as stated in the bin of lading, it is not open to either party, in the absence of fraud, to vary the amount by showing that the statement was not correct (m). In Blanchet v. Powell's Llantivit Collieries Co. (x) the master, by the bill of lading, acknowledged receipt of 256,782 kilos, of timber, to be delivered to the " bearer or his order on his paying me 3,441 shillings and 41. gratuity." The cargo, on delivery, turned out less than the stated quantity ; but it was held that the whole lump sum of 3,441 shillings must be paid to the master. In MoUer v. Living (y) the shipment was of wheat, described in the bill of lading as " 100 lasts in 2,092 bags," and the freight pay- able was 14/. sterling per last of wheat taken in. The shipment was at Dantzic, for London ; the bills of lading were in German ; and the plaintiff (the master apparently) was a Prussian. He claimed freight for as many lasts as the cargo was believed to amount to according to English measurement, and this appears to have accorded with the number stated in the bill of lading. But it was shown that the Dantzic " last " was greater than the English (by a difference varying from one-tenth to one-twentieth) ; and the defendant contended that the freight was payable on so many lasts as the cargo would amount to by Dantzic measurement. The jury took that view. But their verdict was overruled by the Court. Lord Mansfield, giving judgment, said : " We are of opinion that we cannot distiuguish this contract from the usual case of written contracts, where there is no ambiguity, and that on this contract («) Per Jessel, M. K., 61 L. J., P. 10 C. P. 662 ; McLean v. Meming, 2 p. 94. Cf. MoUer v. LiTing, 4 Taun. H- I--. So. 128. 102. M Tully I). Terry, L. R., 8 C. P. 679. (x) L. E., 9 Ex. 74. *) Bro-wn v. Powell Coal Co., L. E., (j,) 4 Xavin 102 PEEiaHT. 661 the captain has agreed to carry, and the freighter has agreed to Sect. 681. pay for, the quantity mentioned in the contract, and that is 100 lasts ; that they are bound hy the words of this hill of lading as they would be by any other written instrument; and that it is irrelevant for them to inquire whether it is Dantzic measure or English measure; the instrument describes not merely 100 lasts, but 100 lasts very specifically mentioned as contained in so many bags ; and I am of opinion that if evidence had been offered, as in truth it was not, for showing what was the real quantity, it ought not to have been received." 582. Where it is necessary to weigh or measure the cargo in Expense ol order to ascertain the freight to be paid, the expense of weighing or measuring is payable by the shipowner, unless the matter is regulated by agreement or usage. " In the absence of any custom to govern the matter, the person who wants to ascertain the quan- tity must incur the trouble and expense of weighing. It is by no means an uncommon thing to have goods weighed on board ; but I never heard of the merchant being called upon to pay for it " (z). In Watts V. Grant {a), however, tried in Scotland in 1889, it Grain trade, was found that in the grain trade it is the custom for the merchant to bear the expense of weighing and measuring the cargo ; though that is necessary for the purpose of ascertaining the freight pay- able. The question arose with reference to a cargo of wheat from the Black Sea, discharged at Aberdeen, but evidence was received as to the practice in other British ports, and with respect to grain cargoes from other places ; with the result that the judge found " an almost universal consensus to the effect that the consignee must pay for the weighing and bushelling of the cargo." It appeared that the chief part of the necessary expense (weighing) was expense which the consignee would ordinarily incur for his own purposes, apart from the calculation of the freight. Sometimes an option is given to the consignee to pay freight on the bUl of lading quantity, or to have the cargo weighed. In The Hollinside (5), freight was to be paid at the rate of 9s. per ton delivered, or on the bill of lading quantity less 2 per cent., at receiver's option. Weighing, if done, was to be at his expense. A further clause required the receiver to effect the discharge of (?) PerWiUes, J., Ooulthurst ». Sweet, L. E., 1 0. P., p. 654. (a) 26 So. L. E. 660. (6) (1898) P. 131, 662 THE DELIVERY. scales. Sect. 588. the cargo, steamer paying 1 franc per ton. It was held that the two clauses must he read together, and that if the receiver elected not to weigh, he could only claim payment for discharging upon the hiU of lading weight less 2 per cent. Freights pay- 583. Freights in some trades are fixed hy reference to certain to agreed agreed scales of freight for different goods. In these scales a numher of different kinds of merchandise are specified, and the propoi-tions are fixed in which the freight upon them respectively is to he paid. So that if the contract states the rate of freight for one kind, the corresponding rates for other kinds are at once known. In Eussian Steam Navigation Co. v. Silva (Jb) the freight on some hales of wool was made payahle, hy the hill of lading, " at the rate of 80s. sterling per ton of 20 cwt., gross weight, tallow, other goods, grain, or seed, in proportion, as per London Baltic printed rates." Evidence of merchants was received showing that the meaning of this clause was, not that 80s. per ton should he paid on the wool, hut that tallow was to he the standard, and the rates on other goods were to he in proportion to 80s. per ton for tallow. And that was held to be the true meaning of the clause. 583a. Charter parties for fixed or lump sum freights are made in various ways. Often the sum payahle is defined by a specified rate upon some measure of the ship's capacity, as her " registered tonnage," or " dead weight capacity," and doubt as to the meaning sometimes arises. In S.S. Heathfield Co. v. Eodenacher (c), the ship was to load a full and complete cargo of sugar in bags, &c., and she was "guaranteed by owners to carry 2,600 tons dead weight, ex- cluding bunkers." The freight was to be at a certain rate " all per ton dead weight capacity as above." It turned out that the ship could carry 2,950 tons of cargo. The charterers loaded 2,673 tons, and they contended that freight was only payable at the agreed rate on 2,600 tons. But the Court of Appeal, affirming Mathew, J., held that the charterers were bound to ship a " full and complete cargo " of 2,950 tons, and that the freight was to be payable at the agreed rate upon that quantity. In S.S. Eotherfield Co. v. Tweedy {d), the ship was to load under a berth-note a full cargo of wheat, at a certain rate "per ton on the (b) 13 0. B., N. S. 610. [e] 2 Com. Ca. 55. (<;) 2 Com. Ca. 84. Lump SI freights, FREIGHT. 663 guaranteed d.w. capacity of 4,250 tons " ; and the note contained Sect. 583a. a guarantee by the owners that the steamer could carry 4,250 tons dead weight. The 4,250 tons included her hunker coals, and she only took on hoard 3,947 tons of cargo. It was held by Collins, J., that on the true construction of the note the freight was only payable upon 3,947 tons, not upon 4,250 tons. 584. The freight is payable in cash, and without deduction, Modeofpay- unlesB the contract provides otherwise ; and, presumably, it should be paid in the currency of the place of payment. In Brown v. Byrne (e), however, the payment was held to be Custom of the governed by a custom at the port of discharge, by which a deduc- charge, tion was allowed from the fuU agreed rate. Cotton had been shipped at New Orleans for Liverpool under a bill of lading, reserving freight for the goods " five-eighths of a penny sterling^ per pound." It was admitted that, according to the usual custom among merchants and shipowners at Liverpool, three months' interest or discount is deducted from freight payable under bills of lading, on goods coming from New Orleans, and certain other American ports. And the indorsee of this bill of lading claimed to be entitled to make that deduction. It was held that the custom was not inconsistent with the contract, and that he was entitled to do so. If by the agreement payment is to be by acceptances, it is for Payment by the master, or representative of the ship, to prepare the bills. The ^' consignee is not bound to tender them in order to entitle himself to the cargo ; it is enough for him to offer to accept if the master will draw them (/). But where the payment is to be by good and approved bills, the consignee must procure and tender them {g). If the consignee is to pay in bills or cash at his option, and he elects to pay in cash, the shipowner's lien on the goods continues ■until cash has been given {h). 585. The effect of taking a bill of exchange for the freight is to EfEeot of suspend the right to claim payment in any other mode while the ***""^ ^ °'"^- bill is running ; but it does not usually operate as a discharge of the freight, and the claim revives upon a dishonour of the biU, if it is in the shipowner's hands (»). The question, however, is one (e) 23 L. J., Q. B. 313. 348. (/) Luaid V. Butcher, 2 0. & K. 29. (») Tapley v. Martens, 8 T. K. 461 ; {g) Tate v. Meek, 2 Moore, 278. Marsh v. Pedder, 4 Camp. 257 ; Taylor (A) Paynter v. James, L. K., 2 C. P. v. Briggs, M. & M. 28. 664 THE DELIVERY. Sect. 585. of intention, and if it was intended that the Mil should be a full satisfaction of the claim for freight, both against the person giving the bill, and against others who would have been liable, they will be discharged. The master has authority to take a bill instead of cash, so as to bind the owners (/«) . As against the shippers, who are liable for the freight if it be not paid by the consignees, the claim may, it seems, be discharged by taking a bill, although in doing so it was not intended to dis- charge the consignees themselves. This is the case if the master takes the bill for his own convenience, when he might have got cash. In Strong v. Hart {I), the receivers of a cargo, under bills of lading which made the freight payable by them, gave the master a bin of exchange for it ; but they failed before the bill became due. In an action for the freight brought against the shippers of the cargo, the jury were directed by Abbott, C. J., to find for the defendants if they thought that the master took the bill voluntarily, and for his own convenience, without insisting upon payment in cash ; but to find for the plaintiffs if they thought that the master took the bill because he could not obtain payment in cash. The jury found for the defendants, and the direction was upheld by the Court. Bayley, J., said, " The onus of proving that he could not obtain payment in any other mode lay on the plaintiffs." 586. The consignee, or person liable for the freight, is not entitled to deduct claims for damages to which he may be entitled against the shipowner, though they may have accrued in respect of breaches of the contract under which the- freight is payable {m) . In Meyer v. Dresser (m), an attempt was made to prove that it was the universal custom of merchants to make such deductions in paying the freight ; but the Court held that such a custom could not have any effect to contradict the settled rule of law. It is, however, sometimes expressly agreed that claims shall be deducted. In " Grarston " Co. v. Hickie («), the charter party pro- vided that the freight should be paid at a certain rate on the quantity delivered ; it then expressed that certain perils were Claims for damage may not be de- ducted. Unleaa expressly agreed. (k) Anderson v. HiUies, 21 L. J., 0. P. 150. (I) 6 B. & C. 160. (ot) Meyer v. Dresser, 33 L. J., C. P. 289 ; Seeger v. Duthie, 29 L. J., C. P. 253 ; 30 L. J., C. P. 65. Cf. Campljell V. Thompson, 1 Stark, 490. But the consignee may counter-claim for the damages: see Judicature Act, 1873, s. 25 (6) ; Young v. Kitchiu, 3 Ex. D. 127. Cf. Pellas v. Neptune Mar. Ins. Co., 5 C. P. D. 34 ; Ee MUan Tram- ways Co., Ex parte Theys, 22 Ch. D. 122 ; 25 Ch. D. 687. (») 18 Q. B, D. 17, FREIGHT. 665 always mutually excepted ; and then provided as follows : " The Sect. 586. freight to be paid, say, two-thirds in cash, less 5J per cent, for interest and insurance, ten days after the final sailing of the vessel from her last port in Great Britain, and the remainder in cash at the exchange of 2.s. per rupee on the right and true delivery of the cargo agreeably to bills of lading, less cost of coals or coke delivered short of hill of lading quantity." Part of the cargo, of coals, was lost during the voyage, by excepted perils. The charterers claimed to deduct the cost of that part from the freight. It was held that they were entitled to do so. The clause as to deductions was not qualified by that as to exceptions. But where the freight was to be payable " less value of cargo short delivered or damaged (if any), not covered by the" excep- tions clause, it was held that only damage through breach of the shipowner's contract could be deducted^ and hence that damage by inherent weakness could not (o). 587. Certain small payments are usually associated with freight "Primage under the terms " primage and average accustomed," the amounts accustomed^' of which depend upon the usage of the particular trade and voyage. The right to payment of them seems to depend upon the same conditions as the right to freight does, apart from express stipula- tions. "Primage" was originally a payment to the master for his care of the cargo ; but it is now commonly arranged between the master and the shipowner that it shall belong to the latter. If there is no such agreement the master may recover the primage from the consignees of the cargo {p), or from the shipowner, if he has received it {q). But, "if by the contract between the owner and the master, the master is not to receive primage, he can main- tain no action for it, whatever the owner may ; and I think that cases may also arise where a contract between the owner and shipper, which excludes primage, may be brought to the know- ledge of the master, and prevent him from having any right to claim it" {r). In Oaughey v. Gordon (s), a ship had been chartered at a certain rate of freight to be paid, on delivery, "in fuU," the (o) The Baroore, (1896) P. 294. (,) Per Lord Tenterden, M. & M. [p) Best V. Saunders, M. & M. 208. 212 {q) Charleton v. Cotesworth, E. & M. 176. (s) 3 C. P. D. 419, 666 THE DELIVERY. Sect. 587. captain to sign bills of lading at any rate of freight as required by the charterers without prejudice to the charter party. Bills of lading were presented by the charterers, and signed by the captain, embodying the conditions of the charter party, but pro- viding for payment of " five per cent, primage in cash on delivery as customary." The defendants received the cargo, under the bills of lading, on behalf of the charterers, and refused to pay the primage. The master sued for it, but admitted that by his agreement with the shipowner he received a fixed salary, which included all charges and allowances, and that if he recovered the primage he would have to account for it to the owner. Held, that neither owner nor master was entitled to primage. "Average" in the bill of lading denotes a share of certain expenses which are by usage borne partly by the ship and partly by the cargo, such as the expenses of towage, beaconage, &o. (i). To whom Payable. Generally to 588. The freight is payable, primarily, to the person with whom of contract.™ ^^ Contract was made: that is, generally, to the person who owned the ship at the time of contracting. But the owner who made the contract may have sold or assigned the ship, or the freight, after the contract was made ; or he may have been owner subject to a mortgage upon her. Hence questions sometimes arise as to who is entitled to the freight. And as between owner and charterer also, where goods have been shipped by third persons, questions may arise as to whether the freight payable on those goods is due to the owner or to the charterer. Consignee ^^ claims for the freight are made upon the shipper, or con- "lead"'**'" signee, by more than one person, and actions are brought or threatened against him for it, he may interplead and so avoid the difficulty of deciding between the claimants. But these questions sometimes arise upon a detention of the goods under a claim of lien for the freight ; or after payment has been made to one person. It is therefore necessary to discuss shortly the positions of the persons who may raise conflicting claims. The points involved are, however, rather questions in the law of partnership and the law of assignments. (0 Abb. (6tli), 272; (13th), 631 ; Macl. (Srd), 460, 633. FREIGHT. 667 589. Usually tlie master represents the owner ; and payment of Sect. 589. freight to him when due is effectual as against a claim by the Payment to owner ; unless made after notice from the owner not to pay to him (u). Perhaps, howoTer, this would not he so at the port at which the owner or ship's husband manages the business of the ship : or where there is a known course of business for the freight to be paid to the agents of the ship. And if the owner appoints an agent to collect the freight the master's authority to do so is superseded («). The master is not entitled to claim the freight as against the owner ; although money may be due to him from the owner for wages, or for disbursements on the ship's account (y). He has no charge upon the freight . for those claims, such as to entitle him to possession of it (s) : though he has a maritime lien for them which is enforceable against ship and freight, by legal process (a). The master may sue for the freight when the contract was made with him (J). In Brouncker v. Scott (c) Lord Mansfield said: "How long ago it is since an action brought by a captain of a ship for freight was first entertained, I do not know ; but it is observ- able with reference to that species of actions, that the bill of lading usually specifies ' that the captain is to deliver the goods on pay- ment of the freight,' and if he delivers them without such payment, he becomes liable to his owner for so doing ; it has been held, therefore, that he may maintain an action against the consignee upon an implied promise to pay the freight, in consideration of his letting the goods out of his hands before payment" (d). Ajid where the master sued for freight under a charter party made with himself, it was held to be no defence that the shipowner was indebted to the defendant, and that the defendant claimed to set that debt off against the freight, the master being only an agent and trustee for the owner (e). For there was no such right of set-off at common law ; and the case did not fall within the («) Per Abbott, C. J., in Atkinson v. (a) M. S. Act, 1894, s. 167. Of. The Cotesworth, 3 B. & C. 647 ; Gruion v. Castlegate, (1893) A. C. 38 ; The Eipon Trask, 29 L. J., Ch. 337. City, (1897) P. 226. (a;) The Edmond, Lush. 58. (i) Of. Cawthron v. Trickett, 33 L. J., ly) Smith v. Plummer, 1 B. & A. 575 ; C. P. 182 ; Priestley v. Femie, 34 L. J., Atkinson v. Cotesworth, 3 B. & C. 647 ; Ex. 172. Gibson v. Ingo, 6 Hare, 112. (c) 4 Tauu. 1. {«) Ibid. But see Bristow v. Whit- {d) Cf . Shields v. DaTies, 6 Taun. 65. more, 31 L. J., Ch. 467 ; White v. (e) Isberg v. Bowden, 22 L. J., Ex. Baring, 4 Esp. 22. 322. 668 THE DELIVERY. Where there are several owners. Bights of part-owners inter se. Sect. 589. statute which enables " mutual dehts hetween the plaintifE and the defendant" to be set one against the other (/). 590. Where there are several part-owners in the ship they are entitled to the freight jointly, and usually they appoint a managing owner or ' ship's husband who represents them all, and can give valid discharges for the freight {g). With regard to the rights of the part-owners among themselves, the rule of law is, that the earnings of the ship are to be dealt with according to the rules relating to partnerships {h). The co-owners are tenants in common, not partners in the ship, but the earnings are treated on the footing of a partnership. So that the expenses of fitting out the ship for the adventure, including repairs done to her with a view to that adventure, must be deducted before a divi- sion of the earnings is made («'). As the expenses of the voyage have usually been incurred by the managing owner or ship's husband, it may generally be said that he is the person to whom the freight ought to be paid. He has not, however, any charge upon it {k) ; but only a right to retain his advances on the ship's account out of it, when it comes to his hands. So that he cannot (apart from special powers) make a valid assignment of the freight, although the ship is indebted to him at the time (1). In Guion v. Trask {m) the ship's husband, and major owners, of an American ship had assigned the whole of the freight which would be coming to the ship on her then next voyage, as security for an advance. The vessel took a cargo of cotton from Mobile to Liverpool, and freight became payable there to a larger amount than the sums advanced, after deducting the vessel's necessary expenses. The master (who was also a part-owner) proceeded to discharge the cargo and to collect the freight ; but the assignees of the freight, fearing he would apply the proceeds to a further ad- venture, obtained an injunction restraining him from receiving it. On appeal this injunction was discharged. It appeared that, according to the ordinary practice of the owners, the ship would return to America in ballast, unless she (i) Ibid. {Ic) Of. Gibson v. Ingo, 6 Hare, 112. [t] Beynon v. Godden, 3 Ex. D. 263 ; Guion V. Trask, 29 L. J., Oh. 337. Of. Bum V. Herlofson, 6 Asp. 126. (w) 29 L. J., Oh. 337. (/) 2 Geo. II. c. 22, s. 13 ; 8 Geo. II. u. 24. See now Judicature Act, 1873, B. 24 ; K. S. 0. 1883, Ord. XTX. r. 3. (^) See supra. Chap. II. (A) Greenv.Briggs, 17 L. J., Oh. 323 ; Holdemess v. Shaokels, 8 B. & 0. 612. FREIGHT. 669 could be advantageously chartered. The master alleged it to be Sect. 590. his intention to procure a return cargo of salt, which would serve as ballast. The Court of Appeal said that the legal right to coUeot the freight was in the master; that the ship's husband had no right, as against the other owners, to assign the whole freight, and that the voyage was not terminated, and the profit earned might, be lost in the further prosecution of the joint adventure. But the injunction was only dissolved upon the master giving an under- taking not to employ the moneys received by him otherwise than in the employment of the ship in its due and ordinary course. A mortgagee of the shares of a part-owner stands in the position Mortgagee of of the mortgagor towards the other part-owners, in regard to the division of the freight, and can only claim his share subject to the deduction of expenses (w). And the same is true of one who holds an assignment of the freight which may accrue on the shares of a part-owner (o). 591. Where the ship has been sold after the contract of carriage Upon sale of has been made, the right to the freight passes to the purchaser {p). passes to pur- The " freight follows as an incident to the property in the ship " ; ° ^^^' and the owner of the goods must generally pay it to him who is owner of the ship at the time when the payment becomes due {q). In Lindsay v. Gribbs {p), the owner of a ship chartered her, and afterwards, in June, 1854, sold her, and executed bills of sale for the shares. The assignees of twenty-four sixty-fourths registered their transfer shortly after; but the transfer of the remainder remained unregistered until January, 1855. Meanwhile, in Decem- ber, 1854, the original owner assigned the charter party freight to the plaintiffs, and they gave notice of this to the charterers. It was held, that an assignment of shares in a vessel includes the earnings which may be attributable to those shares, although the word " freight " may not be mentioned. The assignees of the freight were, therefore, not entitled to the freight belonging to the («) Cato ». Irying, 21 Xi. J., Ct. 675 ; v. DaTidson. But see per Brett, M. R., Alexander v. Simms, 23 L. J., Ch. 721. in Sea Insur. Co. v. Hadden, 13 Q. B. Of. Japp ». Campbell, 57L. J., Q.B. 79. D. 706, at pp. 713, 716. In Stephenson (o) Green v. Briggs, 17 L. J., Ch. 323 ; v. Dawson, 3 Beav. 342, it was held that Lindsay ». Gibbs, 22 Beav. 522. the right to the freight under a charter [p) Lindsay v. Gibbs, 22 Beav. 622 ; party did not pass to the legatee of the Morrison v. Parsons, 2 Taun. 407 ; Case ship. The charter party had been made V. Davidson, 5 M. & S. 79 ; 2 B. & B. after the will, and the voyage was not 379. completed until after the testator's (?) See per Lord Ellenborough in Case death. 670 THE DELIVEEY. Sect. 591. twenty-four sixty-fourths. But they were entitled to that belong- ing to the forty sixty-fourths ; for the purchasers of those shares could only be regarded as owners from the time of registering. This distinction between transfers which have, and have not, been registered would not now arise, under the Merchant Shipping Act, 1894. For though a purchaser is required, by s. 26 of that Act, to register his transfer, its vaKdity is not made to depend upon the registration. Nor, generally, would the neglect to register give a subsequent assignee of the freight any equity to it, as against the transferee of the ship. And that is so, although the transfer of the ship be to a mortgagee only, if he has taken possession of her (r). The contract to pay freight, however, is not transferred to the new owner by the sale of the ship ; so that he could not formerly sue for it in his own name (s). But payment to the person beneficially entitled is a sufficient discharge to the consignee {t). Freight 592. Where the ship is mortgaged only, the mortgagee does not mortJa^geeof thereby acquire the right to accruing freight, unless he also takes ship on his possession of the ship. A sale carries the right to all accruing taMng posses- '- ^ _ -^ , ° ° Bion, but not freight from the time of assignment ; a mortgage only from the time of taking possession {u). And that is so, whether the mort- gage was made before or after the voyage commenced (m). When, however, a mortgagee has taken possession of the ship he takes the right to all the freight which is then accruing (x). " And if he finds any cargo on board in respect of which the freight has accrued, and on which the mortgagor has a lien for the freight, the mortgagee succeeds to that lien, and can enforce it in a court of law " (y) . But freights which have become payable, and have been received by the mortgagor before possession taken, (r) See the judgment of 0. P. Div. in Burrows, 2 0. P. D. 163 ; and per Lord Keith V. Burrows, 1 C. P. D. 722. Of. Oaims, S. 0., 2 A. C. 636. But of. the s. 66 of M. S. Act, 1894. judgments in Eusden v. Pope, L. E., (a) Splidt V. Bowles, 10 East, 279; 3 Ex. 269; and Wilson v. Wilson, L.E., Morrison v. Parsons, 2 Taun. 407. Of. 14 Eq. 32. Eusden v. Pope, L. E., 3 Ex. 269. See (x) Kerswill v. Bishop, 2 0. & J. 629 ; now Judicature Act, 1873, s. 24 (1) ; Grumm v. Tyrie, 33 L. J., Q. B. 97 ; 34 Gandy v. Gandy, 30 Ch. D. 57. L. J., Q. B. 124 ; Japp v. Campbell, 67 {t) Morrison v. Parsons, supra. L. J., Q. B. 79. («) Chinnery v. Blaokbume, 1 H. Bl. {y) Per Mellish, L. J., Keith v. Bur- 117, n. ; Gardner v. Cazenove, 26 L. J., rows, 2 0. P. D. at p. 165. Of. Brown Ex. 17 ; per Mellish, L. J., in Keith v. v. Tanner, L. R., 3 Oh. 597. before. FREIGHT. 671 although for the voyage then current, cannot be recovered from Sect. 598. him hy the mortgagee (z). "While the mortgagor continues in possession of the ship, he has full control over her employment. He may let her lie idle, or employ her in carrying goods on his own account; or may contract to carry at such rates of freight as he may choose. And the mortgagee on taking possession is not entitled to anything more than has been reserved by the contracts so made (a). " When a mortgagee takes possession he becomes the master or owner of the ship, and his position is simply this : from that time everything which represents the earniugs of the ship, which had not been paid before, must be paid to the person who then is • the owner, who is in possession. The owner then in possession happens to be the mortgagee, and it is in consequence of his fiUing that position, and not by virtue of any contract or any antecedent right, that he becomes the person entitled to receive the freight. But that right again is itself checked by another consideration. AH that he can receive is, that which the ship was in the course of earning, either by way of express contract, or, which is the same thiag, by carrying goods upon a quantum meruit" (b). 593. In Tanner v. Phillips (c), it was held that a mortgagee of a Charterer's chartered ship, on taking possession, was entitled to the charter "fot adTauoes freight, without deducting sums which the charterers had advanced ^^ ap«»st , . mortgagee. to the eaptaia abroad for disbursements ; though they had at the time no notice of the mortgage. The charter party had stipulated that the charterers should make advances, not exceeding 150^., on account of freight, and that the balance of the freight should be paid on delivery. But the charterers had actually made advances to the captain beyond the 150/., both at the loading port, and at the port of discharge, for the ship's purposes, before they received notice of the mortgage. Bacon, Y.-0.,held that the whole freight was payable to the mortgagee on his taking possession, without deduction of anything but the 150/. (d). (a) WiUis V. Palmer, 29 L. J., C. P. freight as against the mortgagee, see 194. infra, a. 597. (a) Keith v. BurroTTS, 2 A. C. 636 ; (j) Per Lord Cairns, 2 A. C. p. 646. Mercantile Bank v. Grladstone, L. E., 3 ' ^ ^ Ex. 233 ; Brown v. North, 22 L. J., Ex. ^ *^ ^- '' ■' ^- ^^^■ 49 ; Alexander v. Simms, 23 L. J., Ch. ( T. ^ Bruce, pp. 193, 194. As to release, W MJler .. WoodfaU, 27 L. J., Q. B. ^^^ B^.^^e Ad., ;. 157. («) The Andalina, 12 P. D. 1. See {t) Hiokie v. Eodooanachi, 28 L. J., The Riby Grove, 2^. Eob. 52, at p. 59 ; Ex. 273. The Eliza, 3 Hagg. 87. arrested. 680 THE DELIVERY. Sect. 601. But the maritime lien on freight, and the remedy in rem against it, depend upon the like remedy being available against the ship {a). And if the freight on the goods is not yet due, as where they have been seized at a port short of their destination:, they cannot properly be detained, and will be released. The right to carry them on to the destination and earn the freight is not transferred to the person damnified (J). Also, the claimants cannot require payment of more than is due from the cargo owner. Any deductions to which he is entitled under his agreement are allowed. And so are any expenses to which he is put, by having to pay the freight into Court instead of to the shipowner (c). And where the cargo had not been brought to its destination, a deduction was allowed for the expenses of transhipment [d). If the freight is due, it is immaterial to the right of the claimants that it may be due, not to the shipowner, but to a charterer, who has made a sub-contract with the shipper, and is not himself indebted to the same amount (e) . Where part of the cargo which was on board at the time of a collision has been taken out of her before the arrest, the portion seized will not be released until payment of the freight on the whole has been made (/). Further, the cargo arrested need not actually have been on board at the time of the collision, provided the freight in respect of which it is arrested was then in course of being earned. Thus, in The Orpheus {fj), the vessel was on an outward voyage to Viborg when the collision occurred ; but she was then under charter to proceed there (with liberty to take an outward cargo for owner's benefit), and load a cargo of deals to be delivered at Grimsby ; and this return cargo was arrested on arrival at Grimsby, in order to secure the freight payable upon it. Sii- E. Phillimore held that this freight must contribute to the damages. By whom payable. Primarily by 602. Next, we have to inquire by whom the freight is payable. no^ohartlr ^^^ Primarily, the liability for it is on the person who makes the con- party. (a) The Castlegate, (1893) A. 0. 38. (e) The Andalina, 12 P. D. 1. lb) The Flora, L. K., 1 A. & E. 45. , rs rr,, -d v^ t t, „ . .^-r. „„„ ;/rri T Qi T T Aj ^o (/) The Roeoliff, L. E. 2 A. & E. 363. (c) The Leo, 31 L. J., Ad. 78. \d) Ibid, (?) L. B., 3 A. & E. 308. FEEIGHT. 681 tract. That is, where there is no charter party, the shipper of the Sect. 602. goods, or the person on whose behalf they were shipped {h) . The actual shipper is liable, although in fact acting only as agent for another, unless he made it clear that he shipped for his principal, and not as himself a contracting party. In Drew v. Bird («), Lord Tenterden ruled that under a bill of lading which made the goods deliverable to a named consignee or his assigns, " he or they paying freight for the same," the ship- owner could not resort to the shipper for the freight, after deliver- ing to the consignee without getting it (/«) . But this ruling has not been followed. In Domett v. Beckf ord (l) , it was held, following Shepard v. De Bernales {m), that the clause " he or they paying freight," in the bill of lading, is not for the benefit of the shipper, but for that of the master or shipowner, to enable him, if he thinks fit, to insist on payment before delivery ; and that it does not cast a duty on the master to obtain the freight from the consignees on delivery («). In Domett v. Beckford the defendant was not only the shipper of the goods but also the owner, and he continued to be owner until after they were delivered, the consignees being his agents. But the decision was based upon his liability as shipper, and would therefore have been the same, presumably, if he had sold the goods on the voyage. That view seems to have been taken by the framers of the Bills of Lading Act, 1855 (o), which recited that " by the custom of merchants a biU of lading of goods being transferable by indorse- ment the property in the goods may thereby pass to the indorsee, but nevertheless all rights in respect of the contract contained in the bni of lading continue in the original shipper or owner " ; and enacted (sect. 2) that nothing in that Act should prejudice any right to claim freight against the original shipper or owner. The shipowner may, however, lose his right of recourse to the Shipowner shippe^r by giving credit to the consignee. For example, if the ™g^t °f® ^ master, instead of requiring payment of the freight in cash, takes recourse, a bill of exchange from the consignee, for his own convenience,' (A) Fox V. Nott, 30 L. J., Ex. 259 ; (1) 5 B. & Ad. 521. Cawthron v. Trickett, 33 L. J., 0. P. (m) 13 East, 565. 182 ; Dickenson v. Lano, 2 E. & P. 188. (n) Of. Strong v. Hart, 6 B. & 0. 160 ; (i) M. & M. 156. G. W. Bail. Co. v. Bagge, 15 Q. B. D. (A) And see per Bayley, J., in Moor- 625 ; Angell, Carr. s. 397. som V. Kymer, 2 M. & S. 303, at p. 318. (o) 18 & 19 Viot. o. 111. 683 THE DELIVERY, Sect. 602. when he might have got cash, that will discharge the shipper from further liahility {p). ^^^°l 603. The Bills of Lading Act, -while preserving the liahility of oeives under the shipper, enahles the shipowner to sue the holder of the bill of ' lading, where he has also taken the property in the goods. But before that Act, and now independently of it, and apart from all questions as to property in the goods, one who presents a hill of lading, and takes delivery of the goods under it, may become liable to pay the freight. Conduct of that kind is evidence of an implied promise on his part to pay the freight in consideration of the master giving delivery of the goods {q). But the question is one of fact in each case ; a promise will generally be inferred, where nothing has been done to qualify the effect of the receipt, but it is not implied as a matter of law (r). In Moller v. Young, Parke, B., said : " The case of Saunders v, Vanzeller settles the law on this point, that no obligation to[^pay the freight arises in point of laiv from the receipt of the goods under the bill of lading ; but that such receipt by the indorsee of the bill of lading is reasonable evidence from which a jury may infer a contract by him to pay it, the consideration for the contract being that the captain has given up his lien on the cargo " (s). In Furness v. White (^),. the fact that an agent-consignee had made a deposit to meet a claim against goods warehoused under the Merchant Shipping Act, 1862, s. 68, &c., and had thus obtained possession of the goods, was held not to show an undertaking by him to pay the freight. Liability by 604. Further, an implied undertaking by one who receives the business. goods to pay the freight may be inferred from the mere receipt, although he has not presented any bill of lading, or asked for delivery, if the course of business between the parties on previous occasions has been for him to receive goods consigned to him, and pay the freight on them (m). In Wilson v. Kymer {x) goods (p) Strong V. Hart, 6 B. & C. 160 ; A. C. 40. Tobin V. Crawford, 9 M. & "W. 716. See («) 25 L. J., Q. B. at p. 96. Of. per supra, a. 585. Cave, J., in AUen v. Coltart, 11 Q. B. D. {q) Cook V. Taylor, 13 East, 399 ; at p. 785. Dougal V. Kemble, 3 Bing. 383 ; Bell v. {t) (1895) A. 0. 40, reversing, (1894) Kymer, 3 Camp. 545. 1 Q. B. 483. (»•) Sanders v. Vanzeller, 11 L. J., (u) Coleman v. Lambert, 5 M. & W. Q. B. 241 ; MoUer v. Toung, 25 L. J., 502. Q. B. 94 ; Eurness v. WMte, (1895) (x) 1 M. & S. 157. FREIGHT. 683 shipped under tilla of lading were consigned to a firm of Williams Sect. 604. & Wilson ; they received the bills of lading and indorsed them to the defendants, brokers m London, to whom they were indebted, and from whom they obtained further advances upon the bills of lading. The defendants entered the goods at the Custom House in their own names, and paid the duties ; but, under their direc- tion, the goods were landed at the West India Docks in the names of Williams & Wilson, who appeared in the manifest as the con- signees. Williams & Wilson then gave defendants an order for delivery addressed to the Dock Company, and under this order the goods were transferred to the defendants, and were afterwards sold by them, and the amount credited to Williams & Wilson. Wil- liams & Wilson failed without paying the freight, and an action was brought for it by the shipowners against the defendants. Lord EUenborough held that the shipowner's lien for the freight continued while the goods remained in the hands of the Dock Company : and he left it to the jury to say whether the defendants had promised to pay the freight, in consideration of the plaintiffs having allowed delivery to be made to them. The jury found for the plaintiffs. On motion, however, a new trial was ordered ; on the ground that it appeared that defendants had taken the goods, not as in- dorsees of the bills of lading, but as agents for the consignees. On the second trial evidence was given that the defendants had on former occasions obtained delivery of goods under similar orders from Williams & Wilson, and had on those occasions always paid the freight. The jury again found for the plaintiffs; and the verdict was upheld by the Court (y). It does not appear from the report whether the previous transactions, upon the strength of which the second verdict was allowed to stand, had 'been between plaintiffs and defendants ; or were only such as to show the course of business as between defendants and Williams & Wilson. But it seems to have been assumed that the former was the case. 605. If the shipowner, or master, has notice that delivery is Effect of being taken on behalf of some one else than the actual receiver, receiver is an the mere receipt of the goods is not sufficient to found an inference ^^^^^ °^^' that the receiver promises to pay the freight personally (s). In Amos v. Temperley (z), the biU. of lading made the goods (y) Cf. Moorsomj). Kymer, 2M:. &S. (a) Ward ». Felton, 1 East, 507; 303. Amos v. Temperley, 8 M. & W. 798. 684 THE DELIVERY. Sect. 605. deliverable "unto Mr. Nicholas Temperley for the London Gas Company, or to his assigns, he or they paying freight." It was held that " the promise to be inferred from the receipt of the goods under such a bill of lading is prima facie a promise by the defen- dant as agent for the company to pay the freight on their account, and not a promise to be personally responsible for it." Conversely, where the goods were delivered to indorsees of the bill of lading who were acting as agents, and credit was given to them for the freight, the shipowner was not allowed to claim pay- ment of it from the principals, on ascertaining their existence after the agent's failure (a) . That decision was before the Bills of Lading Act. Efeeot of BiUs of Lading Act. Is consignee liable for freight pay- able in advance ? 606. The liability under the bill of lading contract to pay freight is now, by the Bills of Lading Act, 1865, imposed upon the con- signee or indorsee of the bill of lading, if the property in the goods has passed to him. The provisions of that Act have already been set out and discussed {h). The liability does not depend upon precise words being used in the bill of lading. If it appears that freight is to be paid, it will generally be understood that that is to be by the person who takes delivery. The ordinary form is, that the goods are to be delivered to the consignees, or to assigns, " he or they paying freight, &c. ; " but if the expression be merely " freight for the said goods (so much)," that will have the same effect (c). The' Act makes the consignee or indorsee liable in respect of the goods, as if the contract in the bill of lading had been with him- self. "Whether this makes him liable for freight which by the contract was to be, but in fact has not been, paid in advance, seems to be doubtful. The words are wide enough to do so, unless the contract can be read to mean not only that the freight is to be paid in advance, but that it is to be paid by the shipper, and that no one else will be looked to {d). The statute does not say that the consignee is to be liable as though the contract had been made with himself as shipper. It may therefore mean that he is to be liable as though it had been made with himself as well as with the Cf. S.S. County of Lancaster v. Sharp, («) See "WegueHn v. Cellier, L. E.; 6 24 Q. B. D. 158. h. L. 286. {a) Tobin v. Crawford, 9 M. & W. njg ((^ See Neish v. Graham, 27 L. J., (*) Supra, S8. 62—66. Q. B. 15. FREIGHT. shipper. If then by the contract the shipper only is to be looked Sect. 606. to for the freight, the consignee may be exempt (c). If the bill of lading represents that the freight, or some part of it, has been paid, the shipowner cannot, as against an assignee of the goods, who has given value for them on the faith of that representation, say afterwards that it has not been paid. He can neither sue the assignee for that freight nor set up a lien for it as against him (/). 607. The freight agreed for by a charter party is payable by LiabiKty for the charterer, unless the contrary is clearly expressed. And the freight, fact that bills of lading reserving the same freight have been given to shippers, or are outstanding in the hands of third parties, so as to make them liable, does not ordinarily put an end to the char- terer's liability. He must still see that the freight is paid {g), and the shipowner is not obliged to try to enforce payment by the bill of lading holders before having recourse to the charterer. He is not precluded from his claim by having given delivery of the goods to them without payment {h). If the benefit of the charter has been assigned to another, the liability or otherwise of the original charterer will depend upon whether the shipowner has, or has not, accepted the assignee as the contracting party in bis place («'). But it is not uncommonly the intention that the charterer shall Cesser clause, only be bound to procure a cargo for the agreed voyage ; and that for the payment of freight, and other subsequent performance of the charter party, the shipowner shall look to the shippers or owners of the cargo, enforcing it by means of a lien expressly given to the shipowner, both for freight and for other claims under the charter party. This intention is effected by inserting a clause known as a cesser clause, to the effect that the charterer's liability is to cease when the cargo has been shipped. We shall have occasion to discuss the operation of such clauses [e] As to tie shipowner's right to a (A) Shepard v. De Bemales, 13 East, lien for freight payable in advance, see 565 ; Penrose v. Wilkes, there cited by infra, ss. 663 — 665. Lord EUenborough. As to lien for charter freight against bill of lading (/) Howard v. Tucker, 1 B. & Ad. j^^j^^^^ ^ .^^,.^_ ^^_ g^g^ gg9_ 712;Tamvaoot-.Simpson,34L.J.,C.P. ^.j ^^ ^^ transfers of charters, see 268 ; L. R., 1 C. P. 363. Dimech v. Corlett, 12 Moo. P. C. 199, (^) Christy v. Row, 1 Taun. 300. p. 223. THE DELIVEKY. Se^t. 607. hereafter in relation to demurrage (/c). Here it may be stated that such a cesser clause will not generally exonerate the charterer, unless another remedy for the freight is given by the charter party, as hy lien upon the goods. And even where the clause relieves him from liability as charterer he may still be liable as bill of lading holder (/). {k) Infra, ss. 645—650. (0 GliUisolien v. Stewart, 11 Q. B. D. 186 ; 13 Q. B. D. 317. Inpa, s. 651. CHAPTER XVII. DEMUKKAGE. 687 SECT. Undertaking as to time of loading or discharge is by freighter . , . . > 608 Demurrage days — Detention 609 Modes of fixing time 610 Effect of a fixed time 611 Default of shipowner — Quarantine. 612 Strike of shipowner's labourers — ■ Shipowner bound to take reason- able steps 612a Meaning of "days," " runniag days," &o.— " Holidays " 613 " Usual despatch," &c 614 "As fast as ship can deliver" . . ..614a No time fixed — Reasonable time . . 615 Ford V. Cotesworth — Is joint inabi- lity essential to excuse charterer? 616 Where work done by independent authority 616a The cargo must be ready ........ 617 Must the appliances for loading or discharging be ready P. 618 Postlethwaite ii. Freeland 619 "Where appliances controlled by port authority , 619a " In regular turn " 620 Notice of arrival at port of loading required — ^Not so at port of dis- charge 621 When do the lay days commence P . . 622 Where must the ship be lying ? . . , , 623 Where dock named 624 If port named lay days run from ship's readiness within the port 624a Where ship to load or discharge at a berth or dock " as ordered ' ' by charterer , . . , i 624b Is charterer responsible for delay in reaching agreed place ? — He does ilot generally undertake to pro- cure access , 625 Charterer responsible where delay caused by the state of his business 626 SECT. Summary as to commencement of lay days 627 Loading " as per colliery guar- antee " 627a Where lay days are not fixed — Is freighter liable for delay caused by his selection of dock P 628 Effect of "so near thereto, &o." — Do lay days run continuously where ship is lightened ? 629 Charterer not liable for delay after loading completed 630 Part days counted as whole days — Usually calendar days — Broken "weather working days" — • "Working day of twenty-four hours" 631 Loading and discharging considered separately — Liberty to average. . 632 Despatch money — Per hour 633 ConstruoUon of demurrage clauses . 634 Waiting for convoy 635 By whom payable. Liability for demurrage or deten- tion under bill of lading 636 Incorporating conditions of charter party — Lien for demurrage at port of loading — Personal liability 637 Liability of shipper 638 Liability of consignees — Bills of Xading Act, 1855 — ImpEed pro- mise 639 Liabilities of several holders of bills of lading, each containing a de- murrage clause 640 Distinction between shipments in a general ship and imder a charter 641 Is each holder liable although de- murrage paid by others ? ,,,,,, 642 As to the uiaster's right to sue , , , , 643 688 THE DELIVERY. SECT. Cliarterer's liatility for demurrage. 644 Cesser clauses — Ambiguity 645 Where the words are clear 646 Where explained by clause giving lien — Charterer not liable for demurrage at port of loading .... 647 Does ' ' demurrage ' ' include "de- tention " in the lien clause ? . , . , 648 SECT. Where no lien given charterer still liable for demurrage and deten- tion at port of loading 649 But not for breaches after cargo loaded 650 Charterer may be liable as bUl of lading holder, notwithstanding cesser clause 651 Undertaking as to time of loading or discharge is by freighter. 608. The work of putting the goods into the ship, and of taking them out again, whether under a charter party, or in a general ship, is in nearly all cases done hy the servants of the shipowner. But the duty of bringing the goods to be shipped, and of receiving them at the port of discharge, lies upon the freighter. And in these matters, defaults are apt to occur which lead to detention of the ship, and consequent loss to the shipowner. It is, therefore, usual in charter parties, and sometimes in bills of lading, to fix times within which the ship is to be loaded, and discharged ; and where that is done, the provision is understood as an undertaking by the freighter that the ship shall be loaded or discharged within the time so fixed. The shipowner must not be in default ; he must by his servants do his part of the work of receiving and stowing, or unloading, with diligence and with the proper number of men ; but the undertaking as to the time which the loading or discharge shall occupy is given by the freighter, not by the shipowner. This is commonly marked in the charter party by saying that £o many days " are to be allowed the said merchant for loading, &c." But the effect is the same whether the clause is in that form, or states, generally, that the cargo " shall be loaded "in so many days. The promise is made by the freighter, for the benefit of the shipowner. Exceptional cases, however, occur. A charter party provided that the cargo should be " received from alongside ship at port of discharge as customary as fast as steamer can deliver in ordinary working hours Not less than 100 standards a day loading or discharging, and ten days on demurrage over and above the said laying days at "Ql. per day." The Court of Appeal, affirming Wills, J., held that the stipulation as to 100 standards a day was for the protection of the charterers ; and did not amount to an DEMURRAGE. 689 undertaking by them that the ship should he discharged at that Sect. 608. rate (a). 609. The charter, in addition to allowing certain times for Demurrage loading and unloading, very frequently also allows the charterer to occupy additional days, up to a certain number ; and provides that he shall pay for them at a specified rate. The payment for these additional days is called demurrage. And strictly, that only is the meaning of demurrage ; but the Detention, word is also commonly used to denote damages which become due to the shipowner for the detention of the ship, in breach of the charter party, or bill of lading (5). Such damages may become due in addition to demurrage proper, as when the ship is detained during all the agreed days on demurrage, and longer. Or they may be payable without any demurrage proper being due, if the charter party does not provide for days on demurrage. Charter parties frequently stipulate for a rate of demurrage, to be paid in case the ship is detained beyond the agreed or proper time, Avithout stipulating for any particular number of extra days to be allowed by the shipowner. In such cases the true view seems to be that the charterers are entitled to keep the ship on demurrage for a reasonable time (c). Damages for detention are generally calculated at the rate which has been agreed upon for the demurrage days, if any are provided for. But either party may show that that is not the true measure of the loss to the shipowner by the detention, and in that case that rate ought not to be adopted (d). The shipowner should have a just compensation for his loss, and not more, or less (e). Moreover, in estimating damages for detention, it must be con- sidered whether the detention was reasonable. The master ought not to keep the goods on board, and so detain the ship, if he might land and warehouse them with safety to the shipowner's interests (/) . 610. The time to be allowed, or the number of " lay days," Modes of as they are usually called, is stated in various ways. Sometimes ^^ ^"^' separately for the loading and for the discharging ; sometimes a (a) DobeU v. Watts, 7 T. L. R. 426, («?) Moorsom v. BeU, 2 Camp. 616. 622. " (e) Of. The GazeUe, 2 W. Rob. 279. (4) See infra, s. 648. (/) See perCrompton, J., in Erichsen (c) Lilly V. Stevenson, 22 Sess. Ca. v. Barkwortt, 28 L. J., Ex. p. 96, and (4th) 278 ; Western Transp. Co. v. Barber Mors-le-Blanch v. Wilson, L. R., 8 0. P. (1874), 56 N. T. 444. 227, infra, s. 683. C. — C. Y Y 690 THE DELIVERY, Sect. 610. given period is allowed for both; and occasionally the time consumed in waiting for orders is also included. The period is usually calculated hy days ; and these may be runniag days, or working days, or days with specified' exceptions. Frequently the time allowed is not definitely calculated, but is to be that required by the " usual despatch of the port," or " the usual and customary time ; " leaving that to be estimated if need be. Or it may be that the cargo is to be discharged at the rate of so many tons per day. And, again, the time is often left wholly undefined, the charter being silent about it. In such cases the charterer undertakes no definite obligations in the matter ; but, as in other cases where the contract is silent, the law requires him to perform his part in the work with diligence. Efeect of a Qn rpj^g difference between charters in which a specific time is fixed time. _ _ '- ^ _ allowed, whether for loading or unloading, and those in which the lay days are wholly undefined, is thus of great impoi-tance. In the one case the time is limited without regard to the circumstances under which, when the time arrives, the contract has in fact to be performed. In the other case, the question whether the charterer has been duly diligent must be determined by. reference to the conditions under which he has actually worked. When the time is definitely fixed, or is described so as to be cal- culable beforehand, there is an absolute obligation on the charterer to have the work completed within that period, whatever circum- stances occur. He is answerable, although the completion may have become impossible owing to causes which have arisen without any fault or omission on his part. Thus, he bears the risk of delay arising from the crowded state of the place at which the ship is to load, or discharge (g) ; or from frost (h), or bad weather («'), pre- venting access to the vessel; or from acts of enemies {Ic), or of the Government of the place prohibiting export, or preventing com- munication with the ship (/) . And it is immaterial that the shipowner also is prevented from doing his part of the work within the agreed time ; unless he is in (j) Eandall v. Lynch, 2 Camp. 352 ; (Z) Barker v. Hodgson, 3 M. & S. Potter V. Burrell, (1897) 1 Q. B. 97. 267; Blight v. Page, 3 B. & P. 295, n. ; (A) Barret ». Button, 4 Camp. 333. supra, s. 255. The disahility in these (i) Thiis V. Byers, 1 Q. B. D. 244. cases affected the charterer, not the ship : \k) Burrill v. Orossman, 69 Fed. Kep. c{. White v. S.S. Winchester Co., 23 So. 747. L. R. 342. DEMURRAGE, 691 fault. The charterer takes the risk. His contract is " that, if the Sect. 611. ship is not able to discharge the whole of her cargo within the given number of days after she is at the usual place of discharge," he will pay for the delay, " however the delay may be caused, unless. it is by default of the shipowner" (m). In Thiis v. Byers (w) the place of discharge was in the Eiver Tees ; the cargo was timber, and by the practice of the port it was the master's duty to put it over the ship's side and form it into rafts, when the consignees would send steam tugs to take it away. Owing to bad weather the timber could not be put over and formed into rafts ; and thus, though the tugs could have worked, the charterers were unable to take away the cargo within the prescribed days for discharging. Still they were liable. In Budgett v. Binnington (o) the cargo was to be discharged at Bristol in a fixed number of days". The discharge was begun, but owing to a strike of the dock labourers, both those employed on behalf of the ship and those engaged by the consignees, it was delayed beyond the stipulated time. The labourers who were doing the ship's part of the work were not engaged by the ship- owners, but by a firm of stevedores who were employed by the shipowners. It was held by the Court of Appeal, affirming the judgment of the Divisional Court, that the consignees were Kable for demurrage. For the ability of the shipowners to discharge was not a condition precedent to the obligation of the merchant to have the discharge completed in the fixed time. Performance of that obligation would only be excused by showing that the shipowner improperly prevented it, 612. But the freighter is not liable for the delay, if it has been Default of due to a default on the. part of the shipowner (^) ; for example, in shipowner. refusing to deliver in the proper manner (g) ; or in not addressing the ship to the charterer's agents, as agreed, so that notices have not been given to consignees of cargo (r) ; or, ia failing to bring the ship to the loading place at the time notified to the charterer (»j) Per Brett, L. J., Porteus v. Wat- v. EeUows (1690), Slio-wer 334. ney, 3 Q. B. D. at p. 543. (j) Benson v. Blunt, 1 Q. B. 870 ; (») 1 Q. B. D. 244. But of. Harper Thorsen f . McDowall, 19 Sess. Ca. (4th) V. McCarthy, 2 B. & P., N. R. 258. 743 ; Aktieselkab HeUos v. Ekman, (o) 25 Q. B. D. 320 ; (1891) 1 Q. B. (1897) 2 Q. B. 83. 35. (»•) Bradley v. Goddard, 3 F. & F. (i») See an early illustration in Wynne .638. yy2 692 THE DELIVERY. Sect. 612. under the contract (s) ; or, in failing to have the ship's mnehes in proper working order (t). Nor is the freighter liable for a failure to complete the work of loading or discharging in the agreed time if that has resulted from a refusal of the shipowner to employ enough men to do his part of the work in that time. Though the stipulation that the ship shall be loaded or dis- charged in a particular time constitutes a promise by the charterer, still the correlative duty on the shipowner must be proportioned to that on the charterer. When the opportunity for loading or dis- charging is given, the shipowner ought to do all he reasonably can to get his part of the work done at the agreed rate, whether by employing extra hands, or by working overtime (u). In Hansen v. Donaldson («) eight days were allowed for discharg- ing; and "should the vessel be detained above that time" 51. a day was to be paid. The master did not employ any extra hands in dis- charging ; and it appeared that with his crew only he could not put the cargo out in eight days. The crew was a sufficient one for the ship. It was held that the owner could not claim for the detention beyond eight days, caused by this failure to put the cargo out. Quarantine. And where the^ ship has been herself directly disqualified from loading, or unloading, as by quarantine regulations of the port, it has been held that the shipowner cannot claim for the consequent delay. In White v. S.S. Winchester Co. (y), the cargo was " to be supplied at the rate of not less than 140 tons per running day, Sundays excepted." The vessel was lying at Port Said when the charter was made, and on arrival at the loading port it was found that vessels from Egypt were required to go into quarantine. The Court of Session held that the charterer was not liable for the detention in quarantine ; for the lay days did not begin until the vessel was not only at the place of loading but could also be placed there at the charterer's disposal as ready to receive cargo. So, too, the freighter is not generally liable for a delay caused by neglect, or difficulty, in getting the necessary custom-house papers for discharging ; imless the delay has been incurred at his (s) Harris v. Haywood, 14 So. L. E. (x) 1 Sess. Ca. (4th) 1066. ^°f.N All T 1, 4. ,n a n W 23 So. L. R. 342; The Austin (t) Allan V. Johnstone, 19 Sess. Ca. ' (4th) 364. Friars, 71 L. T. 27. Of. Cunningham (m) See per Lord Blackburn, Maokay "■ Dunn, 3 C. P. D. 443, discussed swpro, V. Dick, 6 A. C. at p. 263. s. 228. DEMUEEAGE. 693 request (s), or in consequence of a special order being required for Sect. 612. discharging the goods which he has shipped (a). 612a. In Budgett v. Binnington (b) the facts showed that the strike of shipowner did not prevent the consignee from completing the dis- labou^s!^^ charge ; for, owing to the strike, the consignee was himself unable to work. But the Court of Appeal further held that, if the merchant had been prevented by acts of the labourers who were doing the ship's part of the work, that could not be imputed to the shipowners. Lord Bsher said (c) : " Now, has the shipowner failed in his duty thi'ough any default of his own, or of persons for whom he is responsible ? The persons for whom he is responsible are the persons who represent him in his absence. If, for instance, the master refused to discharge the cargo, the owner would be respon- sible. How much further this rule of liability extends I am not prepared to say. Whether, for instance, it extends to the ease of the crew refusing to work : but of this I am certain, that if the shipowner is prevented from carrying out his share of the discharge by the acts of persons over whom he has no control, the case comes within the same category as the case of non-delivery caused by some physical misfortune over which he has no control." This passage must be read with some caution. Acts of persons who are doing the shipowner's work cannot be treated as in all respects analogous to misfortunes, such as bad weather, with which the shipowner has nothing to do. It is implied in the shipowner's contract that he will, at least, be reasonably diligent in doing his part of the discharge : and he is liable to the consignee for any damages sustained through a failure in that respect. It is a question of fact in each case whether he has taken all reasonable steps to get the work done. In the Divisional Court, in Budgett v. Binnington, it seems to sUpowner have been considered that a want of diligence on the part of the ^°y^^ *° *^^ shipowner, which prevented the merchant from performing his con- steps to get tract, might not only give rise to a claim for damages, but also done, might afford -an excuse for the merchant's failure. Vaughan Williams, J., delivering the considered judgment, said (d) : " If the strike of the stevedores had resulted from unreasonable con- duct of the master in refusing reasonable wages asked by the steve- («) Famell v. Thomas, 5 Bing. 188. 36 ; supra, a. 611. («) Hill V. Idle, 4 Camp. 327. (c) (1891) 1 Q. B. p. 38. (i) 25 Q. B. D. 320 ; (1891) 1 Q. B. (i) 25 Q, B. D. p, 337, 694 THE DELIVERY. Sect. 612a. dores, the case migM have been different ; for then, perhaps, it might have heen said that the shipowner prevented the charterer performing the contract, and that the act of the shipowner was the causa causans preventing the charterer ; but even in such a case the charterer, would, in our opinion, have to show that he was actually prevented by the default of the shipowner, i.e., that there were no available means of performing the contract, notwithstanding the default of the shipowner (see Alston ». Herring (e) ). If such means were available the charterer must avail himself of them to discharge the ship, and take his remedy by suing the shipowner for breach of contract, or he will be liable to demurrage " (/). Meaning of 613. When " days," or " running days," are spoken of without qualification, in a bill of lading or in a charter party, they are understood to mean consecutive days ; and Sundays and holidays are counted (g). And when demurrage or despatch money is to be paid at so much " per hour," it is to be calculated on the number of consecutive hours during which the ship has been detained, or which have been saved, as the case may be (/«). In Cochran v. Eetberg (i), however, a special jury of the City of London found that the word " days," in a bill of lading which required the cargo " to be discharged in fourteen days," meant, by usage, working days, and excluded Sundays and holidays at the custom house. " Working days " are those upon which work would ordinarily be done in the port ; that is, excluding holidays usually observed there (k) ; but not excluding days on which the usual working is merely prevented, as by bad weather (l). («) 11 Exch. 822. 437. Cf. The aiendevon, (1893) P. 269. (/) See Hansen v. Donaldson, 1 Sess. (i) 3 Esp. 121. Oa. (4th) 1066 ; supra, e. 612. Also, (A) Holman v. Peruvian Nitrate Co., Empire Transp. Co. v. Philadelphia, &o. 5 Sess. Ca. (4th Ser.) 657. And see per Co., 77 Fed. Rep. 919 ; and Wood i/. Lord Esher, Nielsen v. Wait, 16 Q. B. Keyser, 84 Fed. Eep. 688 ; 87 Fed. Eep. D. 67, p. 71. A hoHday taken, acoord- 1007, where it was held (U. S.) that, ing to custom, for the funeral of one of where delay by "strikes" is excepted, the men loading was not allowed : Wood the charterer is not bound to find men v. Keyser, 84 Fed. Eep. 688 ; 87 Fed, by paying extra wages ; he is only bound Eep. 1007. If a local holiday is not in to employ men on reasonable terms. fact observed as a holiday by those who (ff) Brown v. Johnson, 10 M. & W. are loading or discharging the ship, 331 ; Niemann v. Moss, 29 L. J., Q. B. it will count as a working day. Holman 206. But see infra, s. 628, as to cases v. Peruvian Nitrate Co., supra. in which the loading or discharge is (2) Thiis v. Byers, 1 Q,. B. D. 244 ; done at more than one place. Holman v. Peruvian Nitrate Co., 5 Sess. (A) See Laing v. HoUway, 3 Q. B. D. Ca. (4th Ser.) 657. DEMUREAGE. 695 " Weather working days " are working days on whicli the Sect. 613. weather does not prevent working. When substantial work is done, but the weather prevents working through the whole day, it is counted as a half-day, or fuU day, according to the circum- stances (m). Where " holidays" are expressly excepted, and the ship is foreign "Holidays." to the place at which the work is being done, there may be a doubt as to whether the holidays referred to are those at the port, or thos& usually observed by the ship, or both. As the exception is for the protection of the charterer, it presumably relates to holidays at the port. On the other hand, as days upon which the crew fail to do their part in the work, ought not to be counted against the charterer, it is not necessary to make the word include ship's holidays. Probably, therefore, ship's holidays should be counted as working days, if the crew are in fact ready to work, and if there is no holiday on shore. Where the words in the charter party were " loading and dis- charging the ship as fast as the steamer can work, but a minimum of seven days to be allowed merchants," it was held that the seven days must mean working days, exclusive of Sundays («). And, no doubt, when the work is to be done at a certain rate " per day," that must mean per working day (o). 614. If the contract requires that the loading, or discharging, be "Usual done " with the usual despatch of the port," or " in the usual and &o." ' customary time," this is in effect a contract giving a fixed time for the work : namely, such a time as would under ordinary conditions be usually occupied at that port. The charterer is responsible for all delay beyond the period so calculated. In Kearon v. Pearson (p) the contract provided that the charterers should load a cargo of coals at Liverpool " with usual despatch." They intended to bring the coals from a colliery at Wigan, by canal ; but after the loading had begun a severe frost prevented this, and a long delay occurred in consequence. The judge, at the trial, ruled that " usual des- patch " meant the usual despatch of persons who have a cargo in readiness at Liverpool for the purpose of loading ; and this ruling was upheld (5'). {m) Branokelow S.S. Co. 0. Lamport, (0) See Hooper v. McCarthy, 2 B. & (1897) 1 Q. B. 670 ; infra, s. 631. P., N. R. 258. (m) The Commercial S.S. Co. v. Boul- (p) 31 L. J., Ex. 1. ton, L. R., 10 Q. B. 346. (j) A contract to give " prompt 696 THE DELIVERY. Sect. 614. In Asheroft v. The Crow Orchard Colliery Co. (r) a cargo of coals was to be loaded " with the usual despatch of the port " in the Bramley Moore or Wellington Docks, at Liverpool, from the High Level Railway. By the dock regulations the charterers were not allowed to have more than three vessels in these docks, loading and to load, at one time ; and, unknown to the master of the ship, they already had three ships loading, and ten others on their books having priority to the plaintiff's ship. In consequence of these engagements the ship was not allowed to go into dock to load until thirty days after she was ready. This delay was admitted to be unusual, and it was held that the charterers were liable to pay for it. In Rodgers i). Forrester (s), where the freighter of a cargo of wine was to be allowed "the usual and customary time to unload," Lord EUenborough ruled that he was not liable for delay arising from the crowded state of the London Docks. " What is the usual and customary time for a ship to unload a cargo of wines in the port of London ? According to the evidence, when the ship gets a berth by rotation, and the wines can be discharged into the bonded warehouses." But the accuracy of this seems doubtful. "Asoua- Where the loading or discharging is to be done "in the usual ™^^' and customary manner," this relates to the mode of doing the work, and not to the time within which it is to be completed (t). So, where the work is to be done " as customary " (m), or " with all despatch as customary " (x), or " as fast as steamer can deliver as customary" («/), the words " as]customary " are equivalent to in the customary manner. In such cases there is no warranty by the charterer that the work wiU be done within the usual or any par- ticular time ; nor that it shall be commenced or completed without delay. In Gardiner v. Macfarlane (2) it was held that the words despatch" has been held, in U. S., to BoTill, C. J., in Tapsoott v. Balfour, require the charterer to have a berth L. E., 8 0. P. p. 62. ready at once ; Ten thousand and („) Dunlop v. BaUour, (1892) 1 Q. B. eighty-two oak ties, 87 Ped. Kep. 936. g^y . ^he Nifa, (1892) P. 411 ; Gardiner (»•) L. E., 9 Q. B. 640. ^ Macfarlane, 20 Sess. Ca. (4th) 414 ; (») 2 Oamp. 483. Cf. Burmester v. Aberdeen, &o. Co. v. Macken, (1899) 2 Hodgson, 2 Camp. 488 ; Postlethwaite I E, 1 V. Freeland, 5 A. 0. 599, p. 620 ; Hick ' , [ ^ ,, . a a r, t> .. Eodocanachi, (1891) 2 Q. B. 626; , {^) Oastlegate S.S. Co. .. Dempsey, (1893) A. C. 22. (18^2) 1 Q. B. 854. (<) Per Brett, L. J., in Nelson v. W Q-ood «>. Isaacs, (1892) 2 Q. B. 665. VA-A, 12 Ch. p. p. 688, citing per (z) 20 Sess. Ca. (4th) 414, DEMURRAGE. 697 " loaded as customary " related to the mode of loading, e.g., by Sect. 614. lighters, crane, &o. ; and did not relate to a suggested practice to giTS steamers a preference over sailing ships. 614a. Sometimes the expression is that the discharge shall be "As fast as ^ _ _ ° smp can done " as fast as ship can deliver." The effect of this appears to deliver." be that delivery shall be taken by the consignee as fast as the ship working reasonably can give delivery, under the conditions and with the means available (or which ought to be available) at the place of delivery (a). The charterer does not warrant that she shall be able to discharge at any particular rate ; nor is he bound to take delivery until she is at a proper place for it. In the American case of Hine v. Perkins {b), the ship was to be discharged at one safe berth in New York Harbour, as ordered by charterers. She was to " discharge as fast as she can deliver in ordinary working hours " ; and the charter party stipulated that she should " provide sufficient steam to run all cargo winches at one and the same time." The vessel had four hatches, and corre- sponding winches, and was ready to discharge at all hatches at the same time. But the berth to which she was ordered did not admit of that being done. It was held that the charterers were liable for the consequent delay. 615. Next as to cases ia which the time for loading, or dis- where no charging, is not fixed beforehand ; either definitely, or by reference *^™® to any ordinary practice or despatch. The contract implied by law in those circumstances is that the merchant, and shipowner, shall " each use reasonable despatch in performing his part " (c). The expressions " reasonable despatch " and " reasonable time," EeaaonaWo commonly used, are ambiguous unless we know the state of ™^' circumstances to which they refer. If the reasonable despatch is to be estimated by reference to the circumstances which ordinarily exist, the time to be occupied is a definite one, and may be calcu- lated beforehand. But in the case we are considering, the true view is, that the despatch required from the parties is that which can reasonably be expected from them under the actual circum- (a) See Wyllie v. Harrison, 13 Sess. holme). Oa. (4th) 92 ; Good •. Hinde (jo), a sailing vessel was chartered to proceed to Whitehaven for a cargo of coals, and the charter party con- tained the clause, " Eegular turn to be allowed the said merchant for loading," &c. At Whitehaven there was hut one colliery owner, the Earl of Lonsdale ; and the usage of his colliery was to supply vessels in their order of arrival, hut to give a preference to steamers over sailing vessels. The plaintiff's vessel was there- fore postponed to several steamers which arrived after her, but was loaded in turn according to the usage of the colliery. It was held that this was in " regular turn " within the meaning of the charter party; and that the shipowner's ignorance of the usage did not alter the matter. But in Hudson v. Clementson (g'), where a "cargo of coke" was to be loaded at Sunderland- " in regular turn," it was held that evidence could not be given that by the custom of Sunderland under such a charter party, the shipowner was bound to wait until a manufacturer of coke, not named in the charter, had supplied all ships entered in his turn book, provided the manufacturer's name were given at the time of contracting, and provided he used reasonable despatch. In Lawson v. Bumess (r) the ship was to proceed to Tyne Dock, and there load in thq customary manner a cargo of Marley Hill coke, to be loaded in regular turn. It appeared that at the Marley HiU. Colliery a " turn book " was kept, and that vessels were entered before they were ready, and were loaded according to the order of entry. In consequence of this practice many vessels were loaded before the plaintiff's, although they had not been ready until after she was. The jury were asked to say what " in regular turn " meant ; and whether the ship had been loaded in regular turn. They found that she was loaded according to the practice of the Marley Hill Colliery ; but that it was not an esta- blished or known custom ; and that " regular turn " was the order of readiness, not the order of entry on the book. This finding was approved by the Court, and the charterer was held liable for the delay. In Stephens v. Macleod (s), The Cassia was chartered to load at " Portugalete or any other usual ore-loading place on the Eiver Nervion .... as ordered " ; she was to be loaded with iron ore at a {p) L. K. It., 12 C. L. U3. {r) 1 H. & C. 396. (?) 25 L. J., 0. P. 234. («) 19 Sess. Ca. (4th) 38. DEMUEKAGE. 709 certain rate, "after being berthed in turn." On arriving at Por- Sect. 620. tugalete she was entered on a turn list, according to the rule of the port, in the order of arrival on that day. But there were several loading wharves in the port, connected by rail with various deposits of iron ore ; and as the wharf to which she was ordered by the charterers was occupied by other vessels, The Cassia did not get her berth till after other vessels which had arrived at Portugalete after her had been berthed at other wharves. » The Court of Session (Lord Toung dissenting) held that the ship was not " berthed in turn " ; for that meant in turn with vessels as they arrived at Portugalete for iron ore. It was not a stipulation that she should be berthed in turn at any particular berth, or for ore from any particular deposit. But if the ship loses her turn because she is not ready when it comes, the charterer is not liable ; whether the cause of her not being ready is one for which the owner is to blame or not (t) ; unless it is a matter in respect of which the charterer is in default. Where by the charterer's default the ship missed her turn, and afterwards, when her turn came again, was not allowed by the harbour master to load owing to the state of the weather, so that she was further detained, it was held that the charterer was liable to pay for the whole detention (u). 621. Before the lay days at the port of loading can begin to run Notice of against the charterer, he must have had notice of the ship's arrival, of loading and of her readiness to receive cargo. If a delay occurs owing to '^^l™^® ■ no notice having got to him, and if he had not "fair means of knowing that the ship had arrived and was ready," he is not responsible (x). "Where notice of a specific kind is stipulated for, it is a. condition of the charterer's obligation (^y). The same rule does not apply at the port of discharge. The Not so at port master is not there bound to notify his arrival to the consignees of goods. They are bound themselves to watch for it, and to take notice of it without any communication. This has repeatedly been held with regard to consignees of goods shipped under bills of («) Taylor v. Clay, 16 L. J., Q. B. 44. (y) Gordon *. Powis, 8 T. L. R. 397. (u) Jones ». Adamson, 1 Ex. D. 60. ^ *" whether the ship must be actuaUy Of. Jamieson v. Laurie, 6 Bro. Pari. C. ^^^^^ *° ^°^\ '^* *^« *f"^ °^ f 7^ *^« notice to load on a subsequent day, see 474 ; Abbott (5th), 186 : infra, s. 630. Dalbeattie SS. Co. .;. Card, 67 Fed. (x) Stanton v. Austin, L. E., 7 0. P. Rep. 304 ; Wenoke v. Vaughan, 60 Fed. 651 ; Fairbridge v. Pace, 1 C. &E. 317. Rep. 448. 710 THE DELIVERY. Sect. 621. lading (z). "It is the duty of the consignee, apart from special custom or contract, to use due and reasonable diligence to discover when the ship arrives with his goods on board " («) . And the same rule appears to apply in the case .of chartered ships (b). But the master must not mislead the consignee in any way. Delay by the latter may be excused, for example, if the ship has been entered by the master at the custom house under a different name from that given in the bill of lading (c). Wien do the 622. It is often a matter of great difficulty to determine when meuoe f^ *'°"^' the lay days are to be considered to have commenced ; or, if no lay days are fixed, to determine when the charterer's responsibility for the detention of the ship attaches. Speaking generally, the ship must have arrived at the place agreed upon for the loading, or dis- charging, and must be ready to take in the cargo, or to deliver it, as the case may be (d). But the place named is usually one of wide extent, comprising areas where the work of loading or unloading would, in a practical sense, be impossible. And thus the question arises, whether the ship must be lying in any particular part of the named place of loading or discharging. Also, the further question as to who is to bear the burden of the delay if the shipowner is prevented, by causes for which he is not responsible, from at once bringing the ship to the spot where she ought to be. Where must 623. Eirst, as to where the ship ought to be lying. The place lying ?^ ^ named for the loading or the discharge is generally some wharf, or dock, or river ; or is described by an indefinite geographical name, as Alexandria, or the port of Alexandria. If it be a particular wharf, the ship must get alongside that wharf, before the charterer can be required to load or take delivery. And he will not be responsible for a delay in getting alongside, due to the state of the tides (p), or to the occupation of the wharf by other ships (/). The (z) Harman *. Clarke, 4 Camp. 159 ; 23 So. L. R. 342, cited supra, s. 612. Harman v. Mant, ibid. 161 ; Houlderi). (e) Bastifell k. Lloyd, 31 L. J., Ex. General Steam Nav. Co., 3 F. & F. 170. 413 ; Parker v. Winlo, 27 L. J., Q. B. («) Per Cookbum, C. J., 3 F. & P. ^^■ p. 174. (/) Tharsis Co. v. Morel, (1891) 2 (J) Per Brett, L. J., in Nelson J.. Dahl, ^- ^- ^*^ ' Sanders v. Jenkins, (1897) 12 Ch D p. 683. ^ ■^' ^'^ ' WS'tson v. Eorner, 4 Com. ,,„' " ' , .„ ,^„ Ca. 335 ; Murphy ». Coffin, 12 Q. B. D. (c) Harman v. Clarke, 4 Camp. 169. 07. oj. i, A , ■ ■, .,,..,,, ^ ' . ' ^ 87 ; Strahan v. Gabriel, cited by Brett, {d) Where she is disabled by quarau- L. J., ia Nelson v. Dahl, 12 Ch. D. tine, see White v. Winchester SS. Co., p. 690. DEMURRAGE. 711 wharf is the place at which, only; the charterer has undertaken to Sect.. 683. do his part ; therefore, generally, the lay days do not begin until the ship is ready for him there. Moreover, the ship must have got to the agreed wharf with the assent of the dock or harbout authorities, where that is necessary. It is not enough for her to get there, if she is not allowed to remain [g). The same is true where the place named is of wider extent, as a dock, river, or port. The charterer is not under any obligation to load, or receive the cargo, until she has got within the place described. And here the usage of the place, or the obligation to perform the contract reasonably, would seem to require something more than a mere arrival within the wide limits so indicated. For it will generally be the case that the work of loading or unloading is usually done in some parts only of the area named ; and, if so, it is implied in the contract that it is to be done at that part of the place named which is usual for that work. So that here again, it might be supposed, the lay days would not run, until the ship is not only within the port or river, but is also ready at that part of it which is usual for the work which the charterer has undertaken to perform. That was the view formerly held {h). In Brereton v. Chapman («), the port of diseharge. was Wells, a port formed by an inlet of the sea ; the entrance to it being a considerable distance from the quay where vessels unloaded. By the custom of the port, lay days for unloading did not commence until ships arrived at the quay. It was held that the true construc- tion of the charter party was that they did not commence until the vessel had got to the place where it was usual to unload. In Brown v. Johnson {k) the ship, after loading, was to proceed to some port in the United Kingdom ; she was ordered to Hull, and arrived there, and was reported on the 1st of February : she got into the dock, which was the usual place of discharge, on the 2nd, and to a berth there on the 4th. It was held that the lay (y) Good V. Isaacs, (1892) 2 Q. B. 665. Ca. (4th) 934. And see the rule stated {h) Brereton V. Chapman, 7Bing. 659; in Thiis v. Byers, 1 Q. B. D. at p. 249. Brown v. Johnson, 10 M. & W. 331 ; But see per Bramwell, L. J., in Davies 11 L. J., Ex. 373; Kell v. Anderson, v. MoVeagh, 4 Ex D. p. 268; and per 10 M. & W. 498 ; 12 L. J., Ex. 101 ; Brett, L. J., in Nelson v. Dahl, 12 Oh. Tapscott V. Balfour, L. E., 8 C. P. 46 ; D. 581. NordenSS. Co. v. Dempsey, l.C. P. D. j^j ►, -q^^ ggg 654 ; La Cour v. Donaldson, 1 Sess. Ca. (4th) 912 ; Bremner v. BurreU, 4 Sess. W 1° ^- & '^- 331- .712 THE DELIVERY. Sect. 623. days " commenced from the time the vessel entered the dock ; it had then arrived at the usual place of discharge. They certainly did not commence at the period of its entering the port, as. that might be very extensive " {I). In Kell V. Anderson (/») the place of discharge was London ; the ship was detained at Gravesend, waiting her turn to he admitted, according to the rules of the port, into the usual place at London for discharging. It was held that the lay days did not commence tiU she reached that place. It has indeed heen said that the ship had not (in that case) completed her voyage when she was at Gravesend («). But Gravesend is within the port of London, and the judgments of the Court show that the ground of the decision was that she had not arrived at the usual place of discharge. But in more recent cases a different rule has been laid down. In Davies ». McYeagh (o), Bramwell, L. J., said: "Definitions are always dangerous, and I am not anxious to state one which hereafter may be questioned ; but I think it may be laid down that a vessel has reached the place of loading as distinguished from the spot of loading when she has entered that port from which her voyage is to commence. I am not afraid of the consequences, even if this definition is pushed to a great extent. Suppose that the defendants' vessel had been lying in the River Mersey, and that her captain had given notice to the plaintiff that he was ready to enter the dock, and ready to take on board the cargo ; I do not think it would have been open to the plaintiff as charterer to contend that the vessel was not at the place of loading, that she was not in a proper position, and that the nineteen days did not begin to run." And, again, in Nelson v. Dahl (p), Brett, L. J., gave an elabo- rate exposition of the law on this subject, and laid down that the, " liability of the charterer, either as to loading or discharging the ship, does not commence until the ship is in the place named as that whence the carrying voyage is to begin, or where the carrying voyage is to end " (q) ; and that if the place named for the carrying voyage to begin is a wide space, " as a port or dock, the (Z) Per Lord Abinger, 10 St. & "W. (o) (1879), 4 Ex. D. at p. 268. See P- 334. this case explained in Tharsis Co. v. {m) 10 M. & "W. 498. Morel, (1891) 2 Q. B. 647. (w) Per Bramwell, L. J., in Davies v. . (p) (1879), 12 Ch. D. 568. 5IoVeagh, 4 Ex. D. 265. (g) 12 Ch. D. »t pp, 390, 591. DEMUBEAGE. 713 shipowner may place his ship at the disposition of the charterer, Sect. 623. when the ship arrives at that named place, and so far as she is concerned is ready to load, though she is not then in the particular part of the port or dock in which the particular cargo is to be loaded" (r). 624. And even in the older cases the rule that the ship must be Where dock at a usual loading or discharging place was not followed out strictly. If a ship is to be loaded or discharged in a particular dock, or if, a port being named, some particular dock there is the usual place for loading or discharging such a cargo, it will also generally be the case that the work is habitually done at the quays of the dock, or even at some one part of the quays — as where coal is loaded at " spouts" or " tips." Yet it has been repeatedly decided that the lay days in such cases commence as soon as the ship gets into the dock, ready for her cargo. " The rule is that where a port is named in the charter party as the port to which the vessel is to proceed, the lay days do not com- mence upon the arrival of the vessel in the port, but upon her arrival at the usual place of loading in the port: not the actual berth at tvhich she loads, hut the dock or roadstead where loading usually takes place" (s). And this view is in accord with the earlier case of Brown v. Johnson {f). But it is difficult to resist the conclusion that it is not logical. One would think that the charterer's liability should begin either as soon as the ship has been brought within the named port, and there placed in readiness at the charterer's service, or not until she has arrived at some spot in the port at which the charterer can perform his undertaking in the usual way. Either he undertakes the risks of delay between those periods, or he does not. It seems illogical to say that he undertakes part of them. 624a. The construction pointed out by Bramwell, L. J., and UportnamaX Brett, L. J., in the dicta quoted above (s. 623), was adopted in fcomthipT Pyman v. Dreyfus (m). The plaintifE's steamer was in that case '"'^■^f^-"^?? chartered to proceed "to Odessa," and there load. Twelve running port, days (Sundays excepted) were allowed for loading and unloading, with days on demurrage beyond those lay days. She reached the (r) 12 Ch. D. at p. 582. W 10 M. & W. 331 ; 11 L. J., Ex. 373. Cf. Davies v. McVeagh, 4 Ex. D. {») Per Bovill, C. J., in Tapsoott v. ges ; Leer v. Yates, 3 Taun. 387. Balfour, L. K., 8 C. P. p. 52. („) (1889), 24 Q. B. D. 162. 714 THE DELIVERY. Sect. e34a. outer harbour at Odessa on December 22nd, 1888, and the captain gave notice of his readiness to load. But there were then no practicable means of loading her at Odessa, except at or alongside a quay berth, in the outer or in the inner harbour; and the harbour master refused to allow the steamer to go to a loading quay berth in the outer or the inner harbour until her regular turn came, after other ships which had arrived before her. The charterers were ready to load her as soon as she got a quay berth in the inner harbour, where the cargo was stored, but not before. She got orders for a quay berth on January 8th, in her turn, and the charterers began to load her, in the inner harbour, on January 10th. It was held, following the rule laid down by Brett, L. J., in Nelson v. Dahl, that the lay days began to run on December 22nd. The rule, then, appears to be, that when a fixed period is allowed for loading or discharging, and the place named in the contract for the loading or discharging is of wide extent, and not a definite spot, the lay days begin when the ship is ready and at the charterer's disposal within the named place, although she may not be in the berth or dock where the particular cargo is to be loaded or dis- charged, or even in a place where the loading or discharge could be done. The period fixed by the charter party in such cases for "loading," or " discharging," is a period within which the charterer undertakes that the ship, after she is ready within the named port or place, shall get to her place of loading and load, or shall get to her place of discharging and discharge. Where ship to 624b. Sometimes the charter party expressly gives the charterer ^°'ha ™ ^' ^^® right to name the pai-ticular berth, or dock, in the port named berth or dock for the loading, or discharge, at which the work shall be done. "as ordered" ° . . , Toy charterer. There has been some uncertamty as to the construction m such cases. But the Court of Appeal has definitely laid down that, where the charterer has exercised an option so given, the effect is the same as though the dock or berth ordered by him had been named in the charter party, so that the lay days do not run until the ship has got there {x). It had been doubted whether a charterer is entitled under such {x) TharsisCo. v. Morel, (1891) 2 Q. B. Dall'Orso v. Mason (1876), 8 Sess. Ca. 647 ; approving Murphy t. Cofan, (4th) 419. Cf. Stephens v. Maoleod, 12 Q. B. D. 87 ; overruling The Caris- (1891) 19 Sess. Ca. (4th) 38. brook, 15 P. D. 98 ; and dissenting from DEMUEEAGE. ^15 an option to name a dock or tertli which is not at once available. Sect. 624b. That douht is now disposed of hy the decision in Tharsis Co. v. Morel («). The ship was to proceed to the Mersey, and deliver the cargo "at any safe berth as ordered on arrival in the dock at- Garston." On arrival a berth was ordered by the harbour-master. But, owing to the crowded state of the dock, the ship, though in the dock, could not at once get to her berth. The charterers were not liable for the delay. " The option is given for the benefit of the person who has to exercise it. He is bound to exercise it in a reasonable time, but is not bound in exercising it to consider the benefit or otherwise of ' the other party. The option is to choose a port or berth or dock, that is, one that is reasonably fit for the purpose of delivery. . It will not do, for instance, to choose a dock the entrance to which is blocked — that would be practically no exercise at all of the option ; and I think this is what Blackburn, J., meant in Nelson v. Dahl (y), and follows from the cases he there cited, of Ogden v. Graham (z) and Samuel v. Royal Exchange Assurance Co. («). To Umit the option of the charterer by saying that in the choice of a berth he is to consider the convenience of the shipowner is to deprive him of the benefit of his option. The most that can be said is that the charterer does not exercise his option at all unless he choose a berth that is free, or is likely to be so in a reasonable time " (b). In Carlton Steamship Co. v. Castle, &c. Co. (c), a ship was to proceed to Senhouse Dock, Maryport, and there -load, always afloat, as and where ordered by the charterers. On her arrival in Senhouse Dock orders were given for a berth in which she could only partly load, without grounding, unless she waited about a fortnight for the next spring tides. The judges in the Court of Appeal were agreed that the order given ought to be for a berth to which the ship could go mthin a reasonable time, and there load, always afloat. In the House of Lords it was considered that this point did not arise, as the difficulty existed in regard to the entire dock and all the berths in it. The question was whether, having regard to the tidal conditions of the port, there had been any unreasonable delay in the loading. {x) See preceding note. (*) ^^r Bowen, L. J., (1891) 2 Q. B («) 6 A. C. 38, at p. H. P' ,®f ^; , . „ S?) iB.&a. 116. 485^ reversing Mathew, J., 2 Com. Ca. (a) 8 B. & C. 119. 173. 716 THE DELIVERY. Sect. 624b. In Bulman v. Dickson (d) the ship was to load in the Tyne, and to proceed to London, to " the Pool, Eegent's Canal, Victoria Docks, the Derricks, Beckton, or other safe herth as ordered." ■ Before leaving the Tyne orders were given to discharge at Eegent's Canal. Suhsequently a strike occurred among the labourers at that place ; but the charterers for some time refused to alter their orders and send her to another berth not affected by the strike. It was held by the Court of Appeal, affirming Pollock, B., that the charterers were within their right. In Sanders i\ Jenkins (e) the ship was to " proceed to Port ' Yendres and, as usual and customary, deliver .... alongside any store, craft, steamer, depot, ship, wharf, or arsenal The steamer to be discharged at the rate of 200 tons per weather working day (Sundays and holidays excepted). Time for delivery to count when steamer is ready to discharge." The customary place to discharge at Port Yendres was a certain quay, which was not available until some days after the ship arrived. Held, by Collins, J., that the ship was not ready to discharge, and the time did not run, until she was ready at the usual quay (/). On the other hand, in Pyman v. Dreyfus {g), where the right to name the place of discharge was an implied right only, it was held that the lay days ran while the ship was waiting for the berth. Is charterer 625. But where the ship is to go, and is ready to go, to the particular ' for delay in wharf or dock at which it has been agreed that she shall be loaded agreed" place P °^ discharged, and is prevented from reaching that place by causes over which the shipowner has no control, such as the crowded state of the port, the regulations of the dock or other authorities, or the state of the weather or tides, the further question arises whether the charterer may not in some of these cases be responsible for that delay. If the contract requires the ship to reach a particular berth, or dock, and if the charterer is in no way in default, the answer seems to be clear. He has undertaken to load, or unload, the ship at that place ; the lay days are the days allowed him for that ' {d) (1894) 1 Q. B. 179. Except on this view, the decision would (c) (1897) l.Q. B. 93. seem contrary to the more modem rule (/) The learned judge apparently . . ^ , . „„„ „„. , , ■■ , ^•'' , ,, J. ^, , ,J^ pomted out m ss. 623, 624 (a), and to considered tiat the clause gave the ^ ' charterers the right to designate the *^« decision in Pyman v. Dreyfus, 24 particular wharf, and so hronght the Q- B. D. 152. case within Tharsis Co. v. Morel, supra. {g) 24 Q. B. D. 152. DEMURRAGE. 717 ■work ; they cannot therefore hegin until the opportunity of doing Sect. 625. that work at that place is given to him. But the matter is sometimes complicated hy the question whether the charterer does not guarantee that the ship shall find the ,place of loading or discharge aocessihle, and ready for her. As we have seen, the risk. of had weather or low tides, preventing the ship from reaching the agreed place of loading, does not fall upon the charterer {h). Nor, generally, does the risk of the place being crowded («). The charterer does not undertake that the com- mencement of the lay days shall not he prevented* by causes of this kind, unless by the agreement, or by usage of the trade, he is bound to procure that a loading or discharging berth shall be ready for the ship. In Dahl «7. Nelson (^), the ship was to "proceed to London, Surrey Commercial Docks, or so near thereunto as she might safely get," and there deliver her cargo of timber. Those docks belonged to a private company, and when the ship arrived were so full that there was no prospect of her getting in in less than a month, if then. It was held by the Court of Appeal, overruling Jessel, M. E., that she had got as near to her destina- tion as she could safely get within the meaning of the charter party. But, further. Cotton, L. J., finding that it was in fact the prac- tice of the charterer or consignee to make arrangements for an unloading berth, held that " it was solely in consequence of the inability of the consignee to obtaia an unloading berth in the Surrey Commercial Docks that the ship was refused admittance " ; and that " as from the time when the ship was ready to enter the dock, the case, as between the shipowner and consignee, must be dealt with as if the ship had been in dock, and the delay, if any, must be considered as that of the charterer" (/). And James, L. J., appears to have agreed in this view. Brett, L. J., did not, however, agree on this point with the other judges. And in the House of Lords (w), while the decision of the Court of Appeal as to the effect of the words " so near thereto as (A) Brereton». Chapman, TBing. 559 ; 11 L. J., Ex. 373 ; Kell v. Anderson, 10 BastlfeU v. Lloyd, 31 L. J., Ex. 413 ; M. & W. 498 ; 11 L. J., Ex. 101. Parker v. Winlo, 28 L. J., Q. B. 49. „,„»/>„„ .„ /^, ^ /•^ r„u ■ n -M- 1 /10O1X o n Tj W ^ A. 0. 38 ; 12 Ch. D. 568. (») TharsiB Co. v. Morel, (1891) 2 Q. B. ^ ' ' 647 ; Murphy v. Coffin, 12 Q. B. D, 87 ; (0 12 Ch. D. at p. 699. Brown v. Johnson, 10 M. & W. 331 ; W 6 A. 0. 38. 718 THE DELIVEEY. Sect. 625. she may safely get" was affirmed, the dicta above given of James Charterer and Cotton, L.JJ., Seem to have been disapproved of. Lord generally Blackburn said, that it was clearly untenable that, under such a undertake to charter party, the merchant undertook to procure the ship admis- prouure access r j j i i i pj •. n a xi to the agreed sion into the docks. " If the charter party had leit it tree to the ^ ^'^' merchant to select a dock, it may be well that he was bound to select one into which admittance could be procured. Ogden v. Graham («) is an authority in favour of that position. But when, as in this case, the dock is named from the beginning by both parties, I think the refusal of the dock authorities to let the ship inside the dock gates is the fault of neither party" (o). Where delay 626. It may, however, happen that the ship is prevented from charterer%^° getting to a loading berth, owing to obstacles which have been business. caused by the charterer himself ; for example, by the state of his business with other ships in the port or dock. In such cases the delay is attributable to the charterer ; and the lay days begin to run when the shipowner has done all that is needful to bring his ship to the loading place, except that which has been prevented by the charterer's default, or by obstacles which he has introduced. In Ashcroft v. The Crow Orchard Colliery Co. (/>), a ship was chartered to carry a cargo of coals, which were to be loaded at Liverpool " in the Bramley Moore or Wellington Docks, High Level Railway, with the usual despatch of the port." By the published dock regulations of Liverpool, no vessel was allowed to enter these docks, to load coal from the high level railway, without a certificate from a coal agent to that effect ; and no coal agent was allowed to have more than three vessels in the docks, loading and to load, at the same time. The charterers acted as their own coal agents, and at the time of the charter party they already had three ships loading in the docks and ten others on their books having priority to the plain- tiff's ship. In consequence of these engagements, the vessel was (m) 1 B. & S. 773 ; 31 L. J., Q. B. 26. bound to name a quay berth that was (o) 6 A. C. at p. 44. Cf. Lilly v. ready ; and that on his default in doing Stevenson, 22 Sess. (4th) 278 ; Little v. so, the shipowner became entitled to Stevenson, (1896) A. C. 108 ; aiipra, damages, although the charter party B. 254a. "Where a ship was to " proceed provided that the lay days should not to London or Tyne dock to such ready begin until the day following that on quay berth as ordered by charterer," and which the ship was in berth : Harris v. deliver her cargo, it was held, in the Jacobs, 16 Q. B. D. 247. Court of Appeal, that the charterer was (^) L. B., 9 Q. B. 540. DEMURE A.GE. 719 not allowed to go into dock until tMrty days after she was ready Sect. 626. to do so. The loading was then completed in two days. This period of thirty days was an unusual detention ; and was caused not hy pressure of business in the dock, but " solely by the inca- pacity which the defendants had placed themselves under, by their previous engagements, of getting a berth for her at an earKer period." It was held that the charterers were liable for the delay. " The engagement to load with the usual despatch is absolute ; and the obligation covers the whole period from the time when the vessel at the port is placed at the disposal of the charterer there in a condition to receive her cargo. The object is to provide against unusual delay on the part of the charterer in putting the cargo on board ; and whether the delay occurs in the course of loading or before the loading commences, whether it consists in keeping the vessel outside or inside the dock, is obviously immaterial. The question is, whether the vessel is at his disposal, and whether the detention is his act {q) . If so, the contract is broken as much in the one case as in the other " (r). On the other hand, in Watson v. Bomer is), the ship was to go to a named private wharf and there deliver, and the time for dis- charging was to count from 6 a.m. after she was " ready in berth." The charterers sold the cargo to the owners of the wharf, who took delivery under the bill of lading. For their own convenience they did not give the ship a berth at the wharf so soon as they might have done. Still, as between the charterers and the ship- owner, the time did not begin to run until she got there. 627. It seems impossible to reconcile all these authorities, but Summary as the following propositions are submitted to be correct : — ment'ofw'^' (1) When a particular wharf is named as the place of loading, ^*y^- or discharging, the lay days will not begin to run until the ship is ready alongside that wharf. (2) When a particular dock is named the lay days will begin as soon as the ship is ready, and at the freighter's disposal, inside [g) This seems to be an essential (r) L. E., 9 Q. B. p. 543. SeeTillett ground of the decision; see per Lord "■ Cwm Avon Works, 6 Times, L. E. Blaokhum in Postlethwaite v. E^eeland, ^''f; ^""^ of. Tapseott v. BaUour, L. E., ,„_„., 80. P. 46; Crawford 4>. Wilson, 1 Com. 5 A. C. 622. And of. Kell v. Anderson, q 1 54 077 10 M. & W. 498. if) 4 Com. Ca. 336. 72Q THE DELIVERY, Seot. 627. tHe dock, though not. alongside the quay ; even though the work can only take place at the quay. (3) When the place named is a port, or other wide district, the lay dayl hegin when the ship is ready, and at the .freighter's disposal, within the named place (t) ; though she may not he in a position to take in or discharge cargo, and though she may not he at the wharf, dock, or other part of the place to which the charterer may have properly required her to go. (4) If, however, in case (3) the contract expressly entitles the charterer to order the ship to a particular wharf or dock, the wharf or dock so ordered becomes the place of loading or discharge, as though it had been originally named in the contract. (5) If in any case the ship is prevented from going to the wharf, dock, or other agreed place for loading or dischargiag, by obstacles caused by the freighter, or in consequence of other engagements which he may have entered into, then the lay days will begin as soon as the ship is ready, and could, but for such obstacles, go to that place to load or discharge; (6) But in each case, so far as relates to loading, the lay days do not begin until the charterer has had notice of the ship's readiness to load. Loading " as 627a. The commencement and duration of the lay days is some- ^^mra^e^" ^1™^^ determined by a document collateral to the charter party. In the coal trade it is a commpn practice for shippers to obtain a guarantee from the colliery which is to supply the coal, as to the time and conditions on which they will load a cargo, and then to charter a ship with reference to that. In Monsen v. Macfarlane (m) the ship was chartered to proceed " to a customary loading place in the Eoyal Dock, Grimsby," and there take in a cargo of Kiveton Park coals, "to be loaded as per colliery guarantee in fifteen colliery working days." The charterers obtained a guarantee (in ordinary form) from the Kiveton Park Colliery Company, dated after the charter party. By this the colliery company undertook to load the vessel in fifteen colliery working days " after the said ship is wholly unballasted and ready in dock at Grimsby to receive her entire cargo. . . • Time to count from the day f ollowiag that on which notice of {t) The name of the place must be graphical meaning: see supra, s. 567. : taken in its commercial sense, ■which may differ from its strict legal or geo- (") (1895) 2 Q. B. 662. DEMURRAGE. 'J'21 readiness Is received." The customary loading place in the Boyal Sect. 627a. Dock was at the Coal Staith, and the vessel could not get. there untU Septemher 17, owing to the crowded state of the dock. She was however in the dock, ready for her cargo, on Septemher 3, and notice of her readiness was then given. The Court of Appeal, affirming Mathew, J., held that the terms of the colliery guarantee were incorporated in the charter party ; and that the lay days accordingly began on Septemher 4, and not upon the ship's arrival at the customary loading place. 628. Where tho numher of lay days, or the rate at which the Where lay loading or discharge is to be done, is not fixed by the contract, fi^ed. there is, as we have seen, no absolute undertaking by the charterer as to when the ship shall be loaded or discharged. He is only bound to be reasonably diligent in doing his part of the work. Hence his obligation does not begin until the ship has been brought to the agreed loading or discharging berth ; or, where no particular berth has been agreed upon, until she has been brought to one which is usual and proper for the particular cargo. He is under no engagement that she shall not be delayed in getting there. If, however, the ship's arrival at the agreed berth, or at a usual berth, has been delayed by the freighter's act, whether by obstacles which he has caused, or by his having entered into other engage- ments which have the effect of shutting the ship out, the freighter wiU be liable to pay for that delay. He is still bound to load or receive delivery with reasonable diligence, and if his business arrangements stand in the way of the work, he fails to perform that obligation. In Tillett ». Cwm Avon Works (y), a claim was made against the consignees of the cargo for delay in unloading. No time for unloading was fixed by the biU. of lading. But when the vessel arrived at the port of discharge. Port Talbot, all the berths were occupied by ships laden with cargoes belonging to the defendants ; and no berth was available for a week after the ship was ready to discharge. The Divisional Court held that the defendants were liable. They were bound " to unload within a reasonable time, and they could not relieve themselves of their liability for delay in) 2 Timea Rep. 675 (1886) ; and see Ashcroft v. Crow Orchard Co., supra, s. 626. C. — C, 3 A 722 THE DELIVERY. Sect. 688. because they had rendered themselves unable through previous engagements" (x). Delay caused On the other hand, if the charterer expressly has the right to by selection , . - , j. t t i of berth or name the dock or berth, for loading or unloading, he is not uable for delay in getting there, although he may have caused that by selecting a berth which was occupied by vessels of other persons. The express option overrides the implied obligation to use des- patch ; and the only limitation seems to be that the charterer must not select a berth which cannot be reached within a reasonable time, if one that can be reached is available (z). Effect of "so 629. We have already discussed the effect of the clause " or so near thereto, &c." near thereto as she can safely get in qualifying the obligation of the shipowner to bring his ship to the agreed place of loading or discharge (a). It also operates in determining when the lay days are to begin to count, by helping to fix what that agreed place is. Do lay days Further, we have seen that when the ship cannot eet to her run con- . . jr o tinuously destination fully laden, she may in some cases be required to dis- Ughtened? '* charge part of her cargo, and afterwards proceed to the agreed place (6). Questions therefore arise whether the lay days in such a case, having begun to run at the point where the lightening takes place, afterwards run on without intermission ; and whether any allowance ought to be made for the time during which the ship is moving on further to her destination. Where, by the usage of the agreed port of discharge, vessels drawing more than a certaiu depth of water discharge and deliver some of their cargo at one part of that port, and then proceed to another part at which the discharge is completed, the lay days begin to run from the time when the ship is ready to discharge at that first point (c). And if the discharge is to take place in a fixed period, the time, having begun to run at that point, runs on con- tinuously, without excluding the time occupied in moving from one part of the port to the other [d). If there is an established custom at the port not to count the (x) Per Hawkins, J. ; of. per Cotton, 458. L. J., in Wright v. New Zealand Ship- (*) Supra, s. 457. ping Co., 4 Ex. D. 165. (,) M'Intosh v. Sinclair, Ir. R., 11 C. {z) See Tharsis Co. v. Morel, (1891) L. 456. 2 Q. B. 647 ; Bulmanj). Dickson, (1894) {d) Ibid. ■ and see per Lord Esher, 1 Q. B. 179 ; Carlton SS. Co. v. Castle Nielson v. "Wait, 16 Q B D 67 p 75; &o. Co., (1898) A. C. 486; (1897) 2 and per PoUook, B., ibid., 14 Q. B. D. Q. B. 485 ; ante, «. 624b. 516, p. 523. Cf. CafBarini ;. Walker, {a) Supra, ss. 225, 226 ; and ss. 453— Ir. E., 10 C. L. 250. BEMUHEAGE. 723 time so ocoTipied, that may alter the matter. In Nielsen v. Sect. 629. Wait (e), a steamer, with a cargo of wheat in bulk, was ordered to " GrloTicester, Bristol Channel, for discharge." Eight running days, Sundays excepted, were allowed the merchants " for loading and discharging the steamer." Sharpness Dock, in the Bristol Channel, a place within the port of Grioucester, hut ahout seventeen miles from the hasin where grain cargoes were usually discharged, was the nearest place to which the steamer could get fully loaded. On arriving there she was cleared at the custom house and was ready to deliver the cargo. The defendants (consignees) took delivery of rather more than one-third of it ; and then required the master to take the steamer up the Berkeley Ship Canal, and complete the discharge in the hasin. This was done under protest. And the question was, whether the time occupied in going up the canal, and afterwards in coming down again to Sharpness Dock, ought to be included in calculating the period of the discharge. It was proved that a custom existed at the port of Gloucester, that when vessels with grain cargoes destined for Grioucester were of too heavy a burden to go up the canal, they were lightened at Sharpness ; that time so occupied was counted in the lay days ; but that the time occupied in going up the canal to Grioucester Basin and in returning to Sharpness was not counted. The Court of Appeal, affirming Pollock, B., held that this was a reasonable custom, and gave judgment in favour of the consignees. The question chiefly discussed was, whether the custom was consistent with the provisions of the charter, that the lay days were to be " running days." PoUock, B., considered that it was, on the ground that the lightening of the ship at Sharpness was not part of the discharge. But in the Court of Appeal this distinction was not relied upon. Lord Esher expressly treated the discharge as a " double discharge," partly at one place and partly at another within the port. The expression "running days" did not neces- sarily mean that every day was to be counted, from the beginning to the end of the discharge. The period of discharge was cut by the custom into two periods, and each of these was, under that charter, to be calculated by " running days." If the lightening be done outside the port of discharge, there seems to be doubt both as to whether the lay days begin to run, and also whether the actual time occupied in lightening is to be (e) U Q. B. D. 516 ; 16 Q, B. D. 67. 3a2 724 THE DELIVERY, Sect. 629. counted in the lay days (/). But where the contract is to get to a port of discharge, " or so near thereto as she can safely get," and a partial discharge is made when the ship has got as far as she can, in order to enahle her to go up further, it would seem immaterial whether the place of that discharge be within the port or not (g) . Charterer not 630. The charterer is not liable for a detention which occurs delay after without any fault on his part after the loading has once been oom'°fted completed. Thus, where a ship was frozen into the port during the loading, and could not sail, owing to the ice, for some time after the loading was finished, the charterer was not liable to pay for that delay (h). So, too, where the ship's clearances could not be got, owing to the custom house having been burnt down, so that she could not get away («). And where a ship was detained, after discharging, at the port of discharge, because a small sum for certain dues on landing had not been paid by the consignee of the goods, it was held that the shipowner could not claim demurrage, or damages for that delay. For he might' at once have got away by paying the dues himself; and could have claimed repayment from the con- signee (/«) . In Jamieson v. Laurie (l), a ship had been sent to Cronstadt to receive a quantity o£ tallow and other goods, under an arrange- ment with merchants of a somewhat indefinite character. It appeared, however, that the goods ought to have been shipped before the 1st of September, but that, owing to delay in their arrival at the port, they were not in fact shipped until October, and the ship was consequently not ready, to sail until October 28th. She then waited a few days for a wind, and sailed ; but soon meeting with adverse winds and frost, was forced to return to Cronstadt, and was there frozen up, and remained until the 11th of May. The winter began earlier than usual. The sliipowner claimed demurrage from the 1st of September to the 11th of May. (/) See per Lord Esher, Nielsen v. Waiting for convoy : Connor «;. Smythe, Wait, 16 Q. B. D. at p. 74 ; and per 6 Taunt. 634. PaUes, C. B., M'Intosh ^. Sinclair, Ir. (A) Holler v. Jenks, 19 C. B., N. S. E., 2 C. L. at p. 465. 332. Cf. Sully ,/. Duranty, 33 L. J., iff) See Dickinson v. Martini, 1 Sess. Ex. 319. Hick v. Rodooauaolii, (1891) Ca. (4th) 1185. 2 Q. B. 626 at p. 632. (A) Pringle v. MoUett, 6 M. & W. 80. (l) 6 Bro. Pari. C. 474 ; Abtott (Stli), (i) Barret v. Button, 4 Camp. 333. 186. DEMURRAGE. 725 The case came before the House of Lords on appeal from the Sect. 630. Scotch Ooiirts. It was admitted that the master might by law have returned empty, or might have taken another cargo after the 1st of September, but the owner contended that as the master had waited at the request of Jamieson & Co. (the merchants), they were answerable for all the damage arising from the delay. It was de- cided in the House of Lords that they were liable to pay compen- sation, in the nature of demurrage, for the period between the 1st of September and the 29th of October ; but not in respect of the detention after the ship was ready to sail. 631. In calculating the number of demurrage days to be paid Part days for, a part of a day is counted as a whole one. whole days. A ship under charter arrived in dock at the port of discharge at 5 p.m. on a Tuesday. The lay days had all been exhausted at the port of loading. Owing to timber of the charterers being in the way, the discharging did not commence until 8 a.m. on the Wed- nesday. It was completed at 8 a.m. on the Thursday. By the charter party ten days were allowed " on demurrage over and above the said lying days at 251. per day." It was held that the charterers must pay for two full days, Wednesday and Thurs- day (m). "There is no ground for saying that in the case of demurrage there can be any division of a day, without express stipulation to that effect " (■«)• So in Hough v. Athya (o), where ■ nine lay days were left for calling and discharging ; four and a- half days were spent at the port of call, and five and a-haK at the ' port of discharge ; the Court treated these as eleven days in all, allowing two days' demurrage. And for this purpose days are generally to be counted according Usually to the calendar, and not as periods of twenty-four hours. So that j^^y^ *' if the ship begins to discharge in the middle of the day, that is counted as a whole lay day, or demurrage day, as the case may be, if the inference from the cirouinstances is "that the parties intended the time to be counted at all (p). But a charterer, or consignee, is not bound to take a part day as one of the lay days ; he is entitled to have a full day, and may therefore refuse to begin to take delivery on a broken day (q). And usually, it seems, the day upon im) The Commercial SS. Co. v. Boul- (o) 16 So. L. E. 553. ton,L. E., lOQ. B. 346; 3 Asp. M. C. (p) The Katy, (1895) P. 56 ; The 111. Commercial SS. Co. v. Boulton, 3 Asp. («) Per Lush, J., L. R., 10 Q. B. at M. C. 111. Cf. Allan v, Johnstone, 19 p. 349. Cf. Angier v. Stewart, 1 Cab. Bess. Ca. (4th) 364. 6 Ell. 367. ({) IMd. 726 THE DELIVERY. Sect. 631. Broken " weather "working days." "Working day of twenty- four hours." Loading and discharging considered separately. wMch the vessel gets to her dock or berth is occupied in making preparations, so that the lay days do not begin until the following morning {>■). The question here considered is different from that as to broken days which occur during the loading or discharge, owing to inter- ruptions, say, by bad weather. As we have seen, if a certain number of " days " or " running days " are allowed for the work, they run contiuuously, although the work may be prevented. But the agreement frequently is for "weather working days," and a question arises as to how the time is to be counted when, owing to bad weather, work can only be done on portions of days. In Branckelow Steamship Co. r. Lamport («), Lord EusseU, C. J., held that haK-days must be counted as half-days. " The most equitable view is to charge half a day against the charterers where substantial work is done, though not amounting to half a day ; and to charge a full day against them where substantially a full day's work, though not amounting to twelve hours, is done. No smaller fraction than half a day should, however, be taken into considera- tion, and if the time worked is quite insignificant it should not be charged at all." In Ehymney Steamship Co. v. Iberian Iron Ore Co. (t), the charterers were "to be allowed 350 tons per working day of twenty-four hours, weather permitting (Sundays and holidays excepted) for loading and discharging .... to count from 6 a.m. of the day following the day when steamer is reported. . . . Steamer to work at night if required, and also on Sundays and holidays, such time not to count as lay days unless used." It was held by the Court of Appeal (diss. Eigby, L. J.), affirming Bigham, J., that this meant that the charterers were to have twenty-four working hours for loading, or discharging, each 350 tons. Where the claim is not in respect of days on demurrage, but for damages for improper detention, those damages should be calcu- lated with reference to the actual detention that has taken place. 632. Grenerally the operations of loading and discharging are treated as separate. In Marshall v. Bolckow (u), the charter pro- vided " 400 to 600 tons per working day (Sundays and holidays excepted) to be allowed the charterer for loading, and 300 dis- (r) Cf. Brown v. Johnson, 10 M. & W. 331. (s) (1897) 1 Q. B. 670. (0 79 L. T. 240. («) 6Q. B. T>. 231. DEMURRAGE. 727 oliargmg, all demurrage over and atove the said days at the rate of Sect. 632. 2s. per hour for every 100 tons cargo .... If the vessel is loaded at other than Portugalete or Luoana shipping staithes, the loading and discharging to be at the rate of 300 tons per working day." The vessel did load at a place other than the Portugalete and Luoana shipping staithes, but the loading was not done at the rate of 300 tons a-day ; on the other hand, the discharging was done at a greater rate than 800 tons a-day ; and the question was, whether the two periods were to be lumped together in estimating how much demurrage was payable. It was held that this could not be done ; that the periods for loading and unloading were distinct from one another ; and thus, that the amount of demurrage incurred on the loading was not to be reduced by the gain on the allowed time for unloading. So, in Avon Steamship Co. v. Leask (x), where the cargo was " to be loaded and discharged as fast as steamer can receive and deliver during usual working hours," delay in loading could not be made up by working extra hours at the port of discharge. The charterer was still liable for demurrage. But charterers sometimes stipulate for " liberty to average the Liberty to days for loading and discharging." This was held, in Moliere Steamship Co. v. Naylor (y), to entitle them to add together the time allowed for loading and the time allowed for discharging, and to exhaust the whole before demurrage could begin to run. 633. In Laing v. HoUway (z), the charter stipulated that de- Despatch murrage, if any, should be paid at the rate of 20s. per hour ; and per hour. " despatch money 10s. per hour on any time saved in loading and/or discharging." The charterers, in fact, saved four days at the port of loading, and five at the port of discharge, upon the times allowed them, which were calculated at the rate of 200 tons per working day. The question was, whether the despatch money was payable on nine days at the rate of twenty-four hours each, or of twelve hours each. ' The Court of Appeal, reversing the Queen's Bench Division, held that it must be calculated on nine days of twenty-four hours each. In The Glendevon (a) the steamer was "to be discharged at the rate of 200 tons per day, weather permitting (Sundays and fete days excepted)," and " if sooner discharged, to pay at the rate of {x) 18 Sess. Ca. (4th) 280. (z) 3 Q. B. D. 437. (y) 2 Com. Ca. 92. («) (1893) P. 269. 728 THE DELIVERY. Sect. 633. 8s. id. per hour for every hour saved." It was held that " every hour saved " meant every hour saved from the allowed working time ; not every hour by which the discharge was completed earlier than the contract required. As the cargo was 2,103 tons, ten and a half days, or 252 working-day hours were allowed for discharging. Had all that time been used the ship would also have been detained during certain holidays. But the charterers were only allowed payment upon the difference between 252 hours and 106 hours, the number of working-day hours actually occupied. o/de^mge 634. The foUowing cases further iUustrate how demurrage clauses clauses. have been construed (J.) . A charter, dated December 2nd, provided that a ship then lying at Pembroke should sail with all convenient speed to Cardiff, there to be loaded with a cargo of coals and iron for Alexandria. Forty running days to be allowed the merchant for loading at Cardiff and unloading at Alexandria, to commence on the 16th of December. After the charter had been made, it was agreed, at the shipowner's request, that part of the loading should be done at Pembroke; and accordingly the ship stayed there, loading, until December 26th. Thence she went to Cardiff to complete, and was detained there forty days : thence to Alexandria, and the unloading occu- pied a further ten days. It was held that the charterer was liable to pay for twenty days' demurrage ; for the substitution of Pem- broke for Cardiff did not affect the rest of the charter party, and under that the lay days were to be reckoned from the 16th of December, wherever the ship might be stationed (c). An agreement for the carriage of certain engines, provided that the ship should not be required to lie in her berth more than ten days, and that such of the engines as weighed above 20 cwt. should be put in the steamer, stowed, taken out, and landed at the shipper's risk and expense. At the time of the agreement it was expected that alterations in the hatchways would be necessary, in order that the engines might be stowed. Owtng to such altera- tions, which were needful in shipping some of the engines which weighed over 20 cwt., the ship was delayed beyond the ten days. The shipper was held liable for the delay (d) . A ship was to load at Pemambuco and to proceed " to Val- (A) As to exceptions in demurrage C. 71. clauses, see supra, ss. 267—258. {d) Bleck v. Balleras, 29 L. J., Q. B. (c) Jackson v. Galloway, 5 Bing. N. 261. DEMURRAGE. 739 paraiso, a legal port bet-ween Valparaiso and Q-uayaquil, and Sect. 634. Guayaquil, all or any, and there discharge the cargo laden on hoard at Pernambuco, and at the port between Valparaiso and Guayaquil inclusive, also discharging any goods taken on board at Valparaiso for that purpose, and at any and all the aforesaid ports," should receive a homeward cargo ; and seventy running days were allowed the charterer for " loading, discharging, and reloading the ship at the several ports." It was held that these words did not include the final discharge at the home port, so that an additional time must be allowed for that (e). 635. The following are cases of detention by waiting for Waiting for convov. convoy : — In Lannoy v. Worry (/), two ships were chartered for a voyage with cargo from the Mediterranean to London, and they were to remain at Gibraltar for convoy to Lisbon or England ; if taken by convoy to Lisbon they were to wait there for further convoy to England ; and if the convoy should not go into the Downs they were to wait at the first port they should make in England, for convoy thence to the Downs. The merchants agreed to pay certain sums for each day the vessel should u-ait for convoy at Gibraltar, Lisbon, or elsewhere during the voyage, above the space of twenty days in the whole. The vessels were convoyed the whole way by Captain Moody. But he put in to Lisbon and to Falmouth, and stayed some time at each place. The masters claimed in respect of these detentions, but the merchants contended that nothing was due for the time the vessels waited after Captain Moody had first joined them. It was held by the Lord Chancellor Cowper, and afterwards by the House of Lords, that demurrage was payable during the periods in which the convoy was not ready to sail ; for if it was not ready to sail, it was the same as if no convoy were at hand, The merchants were therefore liable for all the time the ships had waited at Gibraltar", Lisbon, and Falmouth, except for some days of detention at Falmouth, which were owing to bad weather. In Marshall ». De la Torre [g), a charter party provided that the ship should " join convoy, and that forty-one days should be allowed for waiting at Portsmouth to join convoy and discharging {.) SweetiBg .. Dartliez, 23 L. J., ^^[f) ^ ^'°- ^"l" «• «" ' ^^^°*' (^th), ^- ^- 1^1- is) 1 Esp. 367. 730 THE DELIVEEY. Sect. 635. at Barcelona," demurrage to be paid for all the time beyond. The ship arrived at Portsmouth too late for the convoy to Barcelona, and consequently had to join other convoys from Portsmouth to Palmouth, thence to Gibraltar, and thence to Barcelona. It was held by Lord Kenyon that demurrage was only payable under the contract for delays at Portsmouth and at Barcelona, and not for the detentions which occurred at Falmouth and Gibraltar. Liability for 636. We have thus far chiefly considered cases of demurrage demurrage or , "^ _ ° detention and detention of chartered ships ; but there may be liabilities to lading. pay for the detention of a general ship, arising out of the bill of lading contracts. And where the ship has been chartered, but the goods have been shipped under bills of lading given to, or indorsed to strangers to the charter party, important questions arise as to the liability of the holders of the bills of lading for demurrage. Bills of lading do not generally contain any provision as to the time in which the goods are to be discharged, unless the ship is under charter. Where that is the case, however, the terms of the charter party on the point are frequently incorporated by a refer- ence to them. And, subject to what may be expressed in the bill of lading, it is in all cases implied in it that the shipper, or his consignee or assign, wiU. be reasonably diligent in receiving the goods (A). If the biU of lading fixes a period within which the goods are to be discharged, then, as we have seen in the case of charter parties, the person who is responsible for the performance of that contract takes the risk of any delays which may prevent the ship's dis- charge ; and must have his goods out of the ship within the time stated — always, however, excepting delays which are due to the acts or defaults of the shipowner, or his agents. If no time is fixed by the contract, but the implied duty of the merchant is relied upon, the question is, has he been reasonably diligent in taking his goods, having regard to the circumstances under which the discharge has in fact taken place ? («). Bills of lading 637. If it is intended to make shippers, or consignees, who are ooudUi'onB'of strangers to the charter under which the ship is sailing liable for charter party. ^ failure to discharge, and for demurrage, in accordance with its terms, there must be a clear and unambiguous reference to those terms in the bill of lading. Frequently the bill of lading makes {h) Fowler v. Enoop, 4 Q. B. D. 299. (i) See supra, s. 615. DEMUERAGE. 731 the goods deliverable " against payment of freight and other con- Sect. 637. ditiona as per charter party " ; and this, it has been held, incorpo- rates the demurrage clauses of the charter party, so as to make the holder of the bill of lading liable for demurrage, or detention, at the port of discharge {k) . Though probably it would not make him liable for demurrage incurred before sailing from the loading port. Where a bUl of lading made the goods deliverable " on being paid for freight the sum of 1, (according to charter party) " the assignees of the bill of lading were not liable for a detention beyond the time allowed by the charter party for discharging; although the bill of lading had in the margin the note " There are eight working days for unloading in London" {I). And in Smith V. Sieveking (ot) the words "paying for the goods as per charter party" were held not to cover demurrage incurred under the charter party at the port of loading. In Gray v. Carr («) , great differences of opinion were expressed Lieu for as to the effect of a bUl of lading which made the goods deliverable port of load- " unto order or to his or their assigns, he or they paying freight ^^' and all other conditions (o) or demurrage (if any should be incurred) for the said goods as per the aforesaid charter party." The ques- tion there was whether this entitled the shipowner, as against the bUl of lading holders, to the benefit of a clause in the charter party which gave him " an absolute lien on the cargo for all freight, dead freight, demurrage, and average," in respect of demurrage incurred at the port of loading before the bill of lading had been granted {p). The charter contained no provision for demurrage on discharge. The Queen's Bench, and a majority of the Exch. Chamber, held that the clause entitled the shipowner to a lien for the demurrage at the port of loading ; and that by the terms of the biU of lading this right was preserved against the consignees. Also, that if there had been any "dead freight" incurred the [Tc] "Wegener v. Smitt, 241,. J., C. P. («) L. E., 6 Q. B. 523. 25 ; Porteus v. Watney, 3 Q. B. D. 534 ; (o) The -words in italics were in GuUisohen ». Stewart, 11 Q. B. D. 186 ; writing, the bill of lading being on a 13 Q. B. D. 317. printed form. {p ) The case also raised the question [T) Chappell V. Comfort, 31 L. J., ^^^^-^^^^ damages for detention at the C.V. 58 ; Young v. MoUer, 5 E. & B. 7, ^^^ of loading were included in the lien for " demurrage," and decided that (m) 24 L. J., Q. B. 257 ; in Ex. Oh. they were not: see this discussed, mfra, 6 E. & B. 689. B. 648. 732 THE DELIVERY, Personal liability of indorsee. Sect. 637. same would have been true of that. Bramwell, B., considered '" that the words " if any should be incurred " must be read " if any shall have been incurred " ; and that the words " all other condi- tions " must mean " performing or satisfying all other conditions"; and that they would have no application unless they secured the liens of the shipowner under the charter party. On the other hand, Brett and Willes, J.J., in a minority, held that the words would be satisfied by making them apply to damages, in the nature of demurrage, for delay at the port of discharge. " At all events the bill of lading does not clearly and plainly apply to claims made in respect of transactions which occurred before the particular goods were on board, and not in respect of those goods, and which claims, therefore, when made against persons in the position of the defendants, are, to say the least, not reasonable " ($■). The question in that case was whether the lien was preserved as against the bill of lading holder ; this subject wIU be more fully discussed in the next chapter. But the case also throws some light upon the question whether the contract in the bill of lading, which the holder is personally bound to perform, incorporates the terms of the charter party as to the loading, as well as those which relate to matters subsequent to the shipment. If the biU of lading expressly provides that the consignee is to pay the amount due under the charter party for demurrage, it may well be that that will make the 'bill of lading holder personally liable for all demurrage, wherever incurred. But where the stipu- lation is not that a payment shall be made, but that the conditions of the charter party shall be performed, the proper construction seems to be that it only creates personal liability in regard to matters which have to be performed after the bill of lading was given (r). So that the holder of the bill of lading woidd be personally bound to take delivery of the cargo in the time allowed by the charter party, or pay for the default ; but woidd not be personally liable for any default which may have taken place at the port of loading. 638. The liability to pay demurrage or damages for detention, under a biU of lading, is primarily upon the person who made the contract ; that is, generally, upon the shipper (s). (}) L. E., 6 Q. B. at p. 540. supra, a. 160. (>•) Serraino v. Campbell, 25 Q. B. D. («) Cawthron v. Triokett, 33 L. J., C. 601 ; (1891) 1 Q. B. 283, and eases cited P.182 ; Diokensomi. Lauo, 2 1". &I'.188. Liability of shipper. DEMUEEAGE. 733 The question whether the shipper is liable, after he has assigned Sect. 638. away the bill of lading, and the goods, for subsequent breaches of the contract, does not appear to have been decided. At Common Law the assignment would not have the effect of relieving him from the responsibility for the subsequent performance of the con- tract ; but under the Bills of Lading Act, 1855, the effect appears to be that all those liabilities (except as to payment of freight) are transferred from the shipper to the persons to whom the bill of lading and the goods have been assigned {t) . 639. By that Act, consignees or indorsees of the bill of lading, Liability of to whom the property in the goods passes, are made liable as Bills of though the contract had been made with them(M). But before 18^55.°^ °' that Act, it was held, as we have seen in the matter of freight, that an implied promise might arise, on the part of one who received the goods under the bill of lading, to perform its terms, and amongst others those relating to demurrage (*). The question in each case, whether such a promise was given, Implied appears to be one of fact (y) ; but where there has been an unqualified demand, and acceptance of the goods under the bill of lading, it will generally be inferred that the person who received them agreed to be bound by its terms. " It seems to me that if the holder of a bill of lading, under which he is entitled to the delivery of the goods on certain terms, presents that bill of lading, and demands delivery of the goods, he thereby prima facie offers to perform those terms of the bill of lading on which alone the goods are deliverable to him" (2). In Steamship County of Lancaster i>. Sharp (a), the defendants took delivery under a bill of lading which made the cargo deliver- able " on payment of freight and other conditions as per charter party." Demurrage was claimed under the charter for detention at the port of loading. But the defendants were acting as forward- ing agents only, and before taking delivery of any part of the cargo they had refused to pay the demurrage. The master had retained some of the goods under a lien for demurrage given by the charter party. Held, that the defendants were not liable. («) See supra, s. 65. (y) Moller v. Youn^, 25 L. J., Q. B. («) Supra, as. 62 et seq. 94 ; Shadforth v. Cory, 32 L. J., Q. B. {x) Dobbin ■,!. Thornton, 6 Esp. 16 ; 78, 379. Leer v. Tates, 3 Taun. 386 ; Jesson v. , , t. « t .„ « ,, a 11 .1 rn en a..- J4. -D I, _t 17 i") ^^^ Cave, J., Allen v. Coltart, 11 Solly, 4 Taun. 52 ; Stmdt .. Roberts, 7 ^^ ^ ^^ L. J., Q. B. 166 ; Wegener v. Smith, 24 ^ ' ^ L. J,, C, P. 25. • («) 24 Q. B. D. 158. 734 THE DELIVERY. Sect. 639. Delivery of the cargo is a sufficient consideration to bind a promise to pay demurrage, even though the receiver he only acting as an agent {b). If there are no express terms ia the hill of lading as to the period allowed for discharging, there may (apart from the Bills of Lading Act) be considerable difficulty in fixing liability for detention upon one Who merely receives the goods. In Moller v. Young (c), the Exchequer Chamber, reversing the Queen's Bench, held that the demand of delivery, and receipt of part of the cargo, by assignees of a bill of lading for the whole cargo, was no evidence of a promise by them to take the cargo in a reasonable time {d). Under the Bills of Lading Act, however, the consignee or indorsee, to whom the property has passed, comes under the obligations of the contract in the bill of lading ; and these include an implied promise to be reasonably diligent in taking delivery of the goods (e). of several^ 640. Where there are several bills of ladiug which relate to holders of various parts of the cargo, and are in the hands of various holders, bills of lading ^ ..,.,. /. , ,. n i t i each contain- the effect of a provision which gives a fixed time for the discharge rage^olaSe!^" is sometimes difficult to determine. In Leer v. Yates (/), some casks of brandy were shipped in a general ship under a bill of lading, which provided that they should " be taken out in twenty days after arrival or to pay 41. per day demurrage." It was held to be no defence to a claim for demurrage that the defendant was ready to take delivery; but that the shipowner could not give it, he being prevented by goods of other consignees, which lay above the defendant's and had not been removed. For it was considered not to be the fault of the plaintiff that the goods could not be taken out ; and the contract could not be restricted so as to apply only to those goods which were upper- most in the ship. This decision was disapproved of by Lord Tenterden, and he ruled contrary to it upon similar bills of ladiug in Eogers v. Hunter {g) and Dobson v. Droop {h). He said, "The true principle seems to be this : If the goods of the particular consignee are not (J) Benson v. Hippius, 4 Bing. 455 ; («) Fowler v. Kuoop, 4 Q. B. D. 299. Sooteonv. Pegg, 30 L. J., Ex. 225. / ^\ o m on» , tt /\ ^^ T T r. -do/ • nA ■^^ ^^^- 387 ; also Harman v. (c) 25 L. J., Q. B. 94 reversing 24 „ , , , „ L. J., Q. B. 217. Gandolph, Holt, N. P. O. 35. (d) But see Palmer «. Zarifi, 37 L. T. iff) M. & M. 63. 790 ; and of. Hill v. Idle, 4 Oamp. 327. (A) M. & M. 441. DEMUERAGE. 735 ready for disoliarge at the time of the ship's arrival he must have a Sect. 640. reasonable time for removing them after they are so. If in such a case, using reasonable despatch, he cannot clear them within the stipulated period from the ship's being ready to discharge her cargo, generally, he will not be liable for demurrage till the expiration of such a reasonable time ; but when it is expired he will be liable, though the stipulated period, if computed from the time when the discharge of his own goods could have commenced, is not at an end" («). And again, " I am certainly of opinion that if a consignee cannot get his goods because some other person's goods prevent him, he is not liable for the delay of the vessel " (k). But in the recent cases of Straker v. Kidd {I) and Porteus v. Watney (m), Leer v. Tates was regarded as a sound authority. In Straker v. Kidd bills of lading were given for various portions of a cargo of wheat, all shipped by one firm, and one of them had been indorsed to the defendants. Each bill of lading contained the clause, " Three working days to discharge the whole cargo or 30/. sterling per day demurrage." The discharge of the defendant's portion was delayed beyond the three days, owing to delay in unloading portions lying above it. Lush, J., held that the defendants were liable. " The defendants are, therefore, liable unless they can show that some act or default of the owner, or of someone for whom he is responsible, prevented them from performing their contract. Now it is clear that the master was not in default; he was ready and anxious to deliver. The leaving those goods in the ship which overlaid the defendants' goods was not his act, but was the act of third persons, not with his consent, but against his will" (n). In Porteus v. "Watney the facts were very similar, except that the cargo had been shipped by several persons, and that the clause in the bill of lading was, " paying freight for the same goods and all other conditions as per charter party." The Court of Appeal afiBrmed the decision of Lush, J., in favour of the shipowner. Brett, L. J., said (o), "There is no fault on the part of the shipowner; the delay might be caused by accidents over which none of the holders of the bills of lading had any control ; or it may have been caused by delay of the holders of cargo above that of the defendant. But even supposing it is by their neglect, in (i) M. & M. p. 65. (ot) 3 Q. B. D. 227, 534. (A) M. & M. p. 443. («) 3 Q. B. D. at p. 226. (T) 3 Q. B. D. 223. (o) 3 Q. B. D. at p. 643. 736 THE DELIVERY. Sect. 640. the contract between the shipowner and the defendant there is no stipulation about the negligence of other people. The defendant is to pay unless it is the fault of the shipowner. The negligence of the owners of the cargo above is not the fault of the ship- owner. Distinction between ship- ments in a general ship, and under a charter. Is each holder liable although de- murrage paid by others ? 641. There is, however, a distinction which is perhaps important between these later cases and the earlier. In Leer». Tates and Eogers r. Hunter the bill of lading did not in terms make the defendant responsible for the discharge of any but his own portion of the cargo. In the later cases the defendants were expressly to be answerable for detention arising from non-discharge of any part of the cargo. Also in the early cases the shippers were persons independent of one another ; while in Straker v. Kidd there was only one shipper, and in Porteus v. Watney all shipped under the authority of the charterer, and assumed his responsibility. Where goods independently shipped have been placed by the shipowner above those of the defendant, it may well be doubted whether the shipowner is not responsible for a default in removing those other goods — at any rate, to the extent of preventing him from saying that the defendant is in default. 642. Great difficulty has been felt as to the effect of the doctrine of Leer v. Yates (p), where the shipowner claims payment of the demurrage^ from several shippers. As Lord Mansfield there said, he may thus make a gain out of the detention " which may possibly much exceed what in justice and conscience he ought to have." In Dobson v. Droop (q), Lord Tenterden expressly ruled that the payment by one consignee did not affect the shipowner's claim against another. And in Porteus ». Watney (r), Brett, L. J., said, " I think that if the consignee of a portion of the cargo had a bill of lading in the same words, and had been called upon to pay, and had paid the whole demurrage to the shipowner, the holder of another bill of lading, if sued, could not set that up as a defence. That defence would arise in respect of a wholly independent contract between the shipowner and the holder of another bill of lading. He could not set it up as a defence, because he would have no right to prove that other and wholly independent contract. I accept the proposi- tion that it would be no defence for the owner of the bill of lading [p) 3 Taun. 387. (?) M. & M. 441. (r) 3 Q. B. D. at p. 643. DEMURRAGE. 737 to say that the shipowner had heen paid the same sum by all other Sect. 648. holders of hUls of lading for cargo in the ship." In that case the demurrage to he paid was a certain sum of 35^. a day, prescribed, not by the bills of lading, but by a charter party, the conditions of which were incorporated in the bills of lading. And Thesiger, L. J., having regard to this, doubted whether the view of Brett, L. J., on the point was sound. " I do not think it altogether clear that where a bill of lading stipulates that a con- signee under it is to have his goods on payment of freight and on the performance of all other conditions of the charter party, and in point of fact all demurrage due under the. charter party has been paid to the shipowner by some other consignee under a similar bill of ladiug, so that the condition in the charter party as to demurrage has heen performed, although not by the particular consignee, that fact would not constitute in equity, if not at law, a defence to an action for demurrage brought against the first consignee." Cotton, L. J., declined to express an opinion on the point. It would seem that the view of Thesiger, L. J., ought to be adopted, if logically it can be, as being the one which would most nearly carry out the intentions of the persons concerned in the transaction. The shipowner in making the charter party intended to stipulate for 35/. a day, and no more, in case his ship was detained ; and the object of incorporating this condition into each bill of lading was to preserve his lien and other remedies, for that demurrage, against each portion of the cargo. Further, the words of the bill of lading, which make the goods deliverable to the consignee on paying freight for the said goods and all other conditions as per charter party, seem primarily to mean that the consignee is not to have delivery until those condi- tions have been performed; and though no doubt they must be read to mean that the consignee undertakes himself to perform the conditions, if necessary, they express even that very loosely ; and it seems unnecessary to mate them further mean, that he under- takes to perform them whether they remain unperformed or not. This view does not, however, remove the difficulty in Leer v. Tates ; but that case can scarcely be regarded as a settled authority. Nor, perhaps, does it remove the similar difficulty in Straker v. Kidd (s) ; where the bills of lading each stipulated " three working days to discharge the whole cargo, or 30/. sterling per day demur- (») 3 Q. B. D. 223. V. — c- 3 B 738 THE DELIVERY. Sect. 642. rage " ; unless tliat can be read to mean that one sum of 30^. a day was to be paid by some person (if necessary, by tbe holder of that bill of lading). That was doubtless the intention of the parties ; for it is to be remembered that the whole cargo was shipped by one firm. And it is not clear that they said anything but that. As to the 643. The right to sue for demurrage, or detention of the ship, tTsue!'^ "^''* is in the owner with whom the contract was made. But where the contract has been made with the master, he may sue for the breach of it. Thus, where the bill of lading signed by the master con- tained a memorandum that the ship was to be delivered in sixteen lay days, 8/. per day demurrage to be paid after that time, the master was allowed to sue the consignee for demurrage {t). So, where the bill of lading provided that the vessel should take her regular turn in unloading, the master, who was also a part-owner, was held able to sue the consignor for a breach of that stipula- tion {u). Erie, C. J., said : " I take it that a master may sue the consignor upon any contract in the bill of lading." But a different rule has been adopted where the bill of lading has not contained an express term as to the time or mode of un- loading. Thus, in Brouncker v. Scott {x), it was held that the master, not being owner, could not bring an action on the implied promise in the bill of lading not to detain the ship improperly. And this was followed in Evans v. Foster {y). There does not seem to have been any recent discussion of the point ; and it is difficult to see why the master's power of enforcing the implied terms of a bill of lading should be less than his power of enforcing those which are express. On the other hand, modern decisions have perhaps been rather in favour of diminishing the independent action of the master. Charterer's 644. The person responsible for demurrage due under a charter demurs™ party is ordinarily the charterer. And he continues liable although other persons also may have become responsible ; whether as ship- pers, or as holders of the bills of lading. The charterer must still carry out the terms of the contract, or see that they are carried out. Thus, he continues liable to give proper orders as to the port of discharge ; to pay the freight ; to see that delivery of the cargo is (if) Jesson V. Solly, 4 Taun. 62 ; Dob- 0. P. 182. bra V. Thornton, 6 Esp. 16. {cc) 4 Taun. 1. (m) Oa-wthron v. Triokett, 33 L. J. (y) 1 B. & Ad. 118, A.r. 1830. DEMUEEA6E. 739 taken in proper time, or demurrage paid ; and so forth. Unless, Sect. 644. indeed, the shipowner has dealt with the hill of lading holders in a manner inconsistent with the charter party. In that case his relations with, and rights against, the charterer may hecome changed. In Eriohsen v. Barkworth (s) a ship had heen chartered by the defendants, and by the charter a fixed number of lay days were allowed for discharging. The cargo was shipped by persons named by the defendants, and it was intended that the defendants should become the purchasers of it. The bills of lading were given to the shippers. A dispute afterwards arose between the defendants and the shippers as to the quality of the cargo ; and in the I'esult the defendants refused to pay for it, and the bills of lading passed to other persons. But those persons did not present the bills of lading, or take delivery, until some days after the lay days had elapsed. Meanwhile the defendants, as charterers, had offered themselves to receive the cargo from the ship, and pay the freight, for account of whom it might concern, so as to save detention. But the holders of the bUls of lading had also given notice to the master not to part with the cargo to the defendants without pro- duction of the bills of lading ; and he did not act on the defen- dants' offer. It was held by the Exchequer Chamber, reversing the decision of the majority of the Exchequer, that the master was entitled to refuse delivery to the charterers without production of the bills of lading; and that the charterers were liable for the demurrage, and for detention beyond the demurrage days. Where by the charter party a ship was to be addressed to the charterer's agents at the port of discharge, and the shipowner con- signed her to other persons, he was not allowed to claim for a delay caused by the want of notices to the consignees of -tsargo, which would have been given had she been addressed to the charterer's agents {a). 645. Sometimes, however, it is intended that the charterer shall Cesserolauses. not continue responsible for the performance of the charter party after he has provided the agreed cargo; but that the shipowner shall have his remedies against the goods, and under the bills of lading, only. The charterer may be in fact acting for other persons ; or he may mean to sublet to others in need of tonnage ; [z] 27 L. J., Ex. 472 ; 28 L. J., Ex. 95. {a) Bradley v. Goddard, 3 P. & F. 638. 3b2 740' THE DELIVERY. Sect. 645. or may intend to ship a cargo which he has sold, or will sell when it has heen shipped. Hence clauses are frequently introduced into charter parties, known as cesser clauses, which run somewhat as follows : — " Charterer's liability to cease when the ship is loaded,- the oaptaiQ haying a lien upon the cargo for freight, dead freight, and demurrage." Ambiguity. Clauses of this kind have given rise to numerous decisions, in which the difficulty has usually been to determine whether the clause exempted the charterer from a liability already incurred at the time when the cargo was loaded, e.g., demurrage at the port of loading. Does the clause mean that all the charterer's liabilities and possibilities of liability under the charter party are to dis- appear ? or merely that no more are to accrue ? And, again, does the cesser of liability depend upon whether the captain, or ship- owner, has a lien upon the cargo for his claims ? Where the contract contains no words expressly and clearly extinguishing the liabilities which the charterer may have incurred before completion of the loading, the presumption would seem to be that these liabilities are not to be extinguished ; and therefore that " charterer's liability to cease " only refers to the subsequent performance of the contract. But that view has not been taken {b). The cases have proceeded on the contrary interpretation, that the words may be treated as covering accrued as well as subsequent liabilities ; and are to be so construed where it appears from the rest of the contract that another remedy is given for the accrued claims. The result has been a group of perplexing cases which have established that the same form of cesser clause may have opposite effects in charters which differ in their loading clauses, and that ia the same charter party the clause is retrospective as to some claims, and not so as to others. In each case the effect depends upon the interpretation of other parts of the contract. 646. In Milvain v. Perez (c) the clause was, " This charter being concluded by Messrs. Perez, "Williams, and Bilton on behalf of another party resident abroad, it is agreed that all liability of the former in every respect, and as to all matters and things, as well before and during as after the shipping of the said cargo, shall cease (b) See, however, per Brett, J., and Lord Coleridge, Brett, J., and Grove, BramweU, B., in Gray v. Can', L. E., 6 J., m Kasli v. Cory, L. E., 10 Q. B. 553. Q. B. 522, at pp. 537, 648; and per (c) 30 L. J., Q. B. 90. Where the words are clear. DEMUEEAGE. 741 as soon as they have shipped the cargo." It was held that this Sect. 646. protected the defendants from liahility for not loading the vessel in regidar turn, as stipulated by the charter. They had agreed for absolute exemption, and there was nothing against public policy in their doing so. That decision followed Oglesby v. Tglesias {d), in which a similar clause had been held to exempt the charterer from liability for demurrage at the port of discharge. On the other hand, where the clause was, " This charter being concluded by the charterers on behalf of another party, it is agreed that all liability of the former shall cease as soon as the cargo is shipped, loading excepted, the owners and master of the vessel agree- ing to rest solely on their lien on the cargo for freight, demurrage, and all other claims, and which lien it is hereby agreed that they shall have ; " it was held that the charterers were liable for delay in loading the cargo. The words "loading excepted" did not j'elate merely to loading a full cargo, but to all liabilities connected with the loading (e). 647. In these cases the words were considered to speak for them- Wtere ex- selves. We come next to others in which the clause was ambiguous, clause giving but was explained by other words giving other remedies to the ®°' shipowner. In Francesco v. Massey (/), the clause was, " Charterer's liability to cease when the ship is loaded, the captain having a lien upon the .cargo for freight and demurrage." The charter provided that the loading and discharging should be done each in a certain number of days, and allowing " ten days on demurrage over and above her said laying days at 8/. per day." It was held that the lien for Charterer not demurrage extended to demurrage at the port of loading as well as demurrage at at the port of discharge ; and that, the cargo having been loaded, Pj"^' ° °'^ the charterer was not liable for demurrage during the loading. .BramweU., B., said: "It is impossible to say that this would not give a Hen for demurrage incurred as well at the port of loading as at the port of discharge, and so for the demurrage sued for ; and it seems impossible to hold that the matters as to which the liability was to cease were not the same as to which the lien was given." This was followed by the Exchequer Chamber in Eish v. Cory {g), where the charter party was in practically the same terms. In each (<^27L.J.,Q.B.356. (/) L. E., 8 Ex. 101. («) Lister V. Van Haansbergen, 1 Q. B. D. 269. {g) L. K., 10 Q. B. 553. 742 THE DELIVERY. Sect. 647. case the claim was for true demtirrage, the clauses as to demurrage days being read to apply both to the port of loading and that of discharge. Bannister v. Breslauer (7t), however, had previously gone a step further. There the claim was for detention at the port of loading. There was no provision with regard to demurrage in the charter party. It was held that the clause which gave a lien for demurrage included damages for detention ; and that the cesser clause applied. In all these cases, it was the fact that a Uen was given for the claim, accrued before the ship was loaded, which led the ' Court to give the cesser clause a retrospective effect. Does "demur- 648. Whether the lien for demurrage can be properly construed "detention" to include damages for detention at the port of loading has been cW?'^° i^uch debated. In Gray v. Carr («) it was held that the lien for " demurrage " given by the charter party, and preserved in the bill of lading, only related to the agreed payment for the " ten days on demur- rage " {k) allowed by the charter at the port of loading ; and not to damages payable for detention at that port beyond those de- murrage days. In Kish ®. Cory [l) the question arose upon the cesser clause, and did not call for actual decision ; but opinions were expressed in favour of extending the Hen, and diminishing the charterer's liability, by making the word demurrage include detention. In Sanguinetti v. Pacific Steam Navigation Co. (m), the charter provided that a cargo of coals should be loaded at Cardiff at the average rate of seventy-five tons a day, commencing when the vessel was in berth "wholly unballasted and ready to receive cargo ; " stiffening coal, if required, to be supplied at the ship's expense at the rate of forty tons a day after notice given of its being required, " but all days on which stifiening coal is taken on {h) L. R., 2 C. P. 497. The decision Channell, and OleaslDy, BB., afBrming is of doubtful authority : see Clink v. the judgment of the Queen's Bench. Kadford, (1891) 1 Q B. 625. It was, ^ j„ ^ ^^3 ho-wever, followed m Francesco ». Mas- \ '"!■ sey, and was approved of by Lord (»«) 2 Q. B. D. 238. See also Eesti- Coleridge in Eish • 1 breaches after that view was formerly taken. But the recent case of Hansen v. cargo loaded. Harrold (e) shows that it is probably not correct. In French v. Grerber (/), the claim was for not giving orders at the port of call as to the port of discharge. The charter party provided that the ship, after being loaded, should proceed to Queenstown or Falmouth for orders, which were to be sent within forty-eight hours after notice to the charterer's agents, " or lay days to count." Twelve working laying days were " allowed the freighters for loading the said ship at the port of loading and waiting for orders at port of caU. in Europe .... and fifteen days on demurrage are allowed over and above the said laying days at ^d. per registered ton per day." Further, the liability of the charterers was to cease as soon as the cargo was on board, provided it was worth the freight at the port of discharge, " but the owners of the ship to have an absolute lien on the cargo for all freight, dead freight, and demurrage, which they shall be bound to exercise." The breaches assigned were, first, that the defendants (the charterers) refused to give any orders as to the port of dis- charge, whereby the freight could not be earned and expenses were incurred; secondly, that they gave orders for a port which was not* a safe port, so that delivery could not be given according to the charter party. To this the defendants pleaded that their HabDity under the charter party had ceased when the cargo was on board ; and this was demurred to. The judgment of the Queen's Bench Division was in favour of the charterers. The Court considered that part of the damages sued for were obviously unascertained damages, for which there was no lien given ; but it was held that that did not prevent the cesser clause from applying. " The words of the clause must necessarily absolve from aU future liability, or mean nothing " (^). And this (e) (1894) 1 Q. B. 612. lien: but where the words of the ab- {/) 1 C. P. D. 737 ; 2 C. P. D. 247. solving part are open to either interpre- (g) " The rule, therefore, seems to be tation, then, without regard to lien, that where the words of the absolving liability as to future transactions is not part of the clause plainly show that all to accrue, but liability as to antecedent liability is to cease on loading, it is so to breaches is to cease only so far as an cease both as to antecedent and future equivalent lien is given," Per Brett, J., liabilities, and without" regard to any 1 C. P. D. at p. 744. 748 THE DELIVERY. Sect. 650. decision was upheld in tte Court of Appeal ; but the judgments given were not all to the same effect. Bramwell, L. J., agreed with the Court below in refusing to limit the exemption of the charterers to those matters for which a lien was created. Baggallay, L. J., doubted about this, and also as to whether the damages incurred were, or were not, within the lien. And Mellish, L. J., thought that as the lay days and demurrage days were to begin to run at the port of call, a sufficient remedy was given by the lien clause (h). In Hansen v. Harrold («), the shipowner claimed from the char- terers the balance of a lump sum freight of 4,000/., payable, by the terms of the charter party, on the delivery of the cargo. The charter provided that the charterers might re-charter the vessel ; that the captain should sign bills of lading at any rate of freight required ; and that " should the freight list according to bills of lading show a less sum in the aggregate than chartered freight, the difference to be paid in cash prior to the ship's clearance at the custom-house." It also contained the following cesser clause : " The liabilities of charterers to cease on the vessel being loaded, the master and owners having a lien on the cargo for all freight and demurrage under this charter party." A cargo of oats was loaded by sub- charterers, and bills of lading were signed showing an aggregate freight less than the lump sum freight by 5S21. 12s. 9d. That difference was duly paid at the port of loading. The cargo, however, lost weight during the voyage ; with the result that the full bill of lading freights, which were payable on the weights delivered, could not be collected. It appeared that a loss of weight during the voyage was usual with cargoes of oats from New Zealand ; but the loss in this case had been unusually great. The bills of lading did not refer to the charter party, and so did not preserve a lien for the charter freight. The shipowner sued for the portion of that freight which he had thus failed to receive. The charterers relied on the cesser clause. (A) "If there was some clause in the tain any clause as to damages which is so charter upon which it was perfectly plainly not ooTered by the lien that one plain that no remedy was given by the may fairly say that the parties cannot lien as against the purchaser of the have intended what they have appar- cargo, then I certainly should have ently said, namely, that the charterers struggled to hold that this clause could should be entirely exonerated." Per not exonerate the charterers from pay- Mellish, L. J., 2 C. P. D. at p. 251. ing damages." But, " I cannot find ,•■, nagA) i o B 612 that this charter dqes, in substance, con- DEMURRAGE. 749 The Court of Appeal, affirming Day, J., allowed the claim, on Sect. 650. the ground that as the shipowner had, in fact, no lien on the oargo for the charter-party freight, the cesser clause did not exonerate the charterers. Lord Esher laid down the rule of construction in wide terms ; repeating what had been said by himself and the L. JJ. in Clink ». Radford (/), and applying it to breaches after as well as before the loading of the ship. " Where the provision for cesser of liability is accompanied by the stipulation as to lien, then the cesser of liabiKty is not to apply in so far as the lien, which by the charter party the charterers are enabled to create, is not equivalent to the liability of the charterers." Lopes, L. J., concurred. Davey, L. J., treated the matter somewhat differently. He considered that the two branches of the cesser and lien clause formed correlative stipulations. Also, that the form of the clause showed "that the creation of a lien was a condition pre- cedent to the cesser of liability, the effect being that the liability of the charterers would only be discharged in so far as it was replaced by the Hen. I do not desire, however, to rest my judgment on that ground, because it is not the view adopted m the earlier cases, and it is not necessary to adopt it for the purpose of this case. It is sufficient to say that the two branches of the clause thus linked together form correlative stipulations." Further, he held that it must be taken to have been the charterers' fault that no sufficient Hen had been created or procured ; and that " whether the case is put on the ground of condition precedent or on the ground of breach of contract, for which the damages are the difference between the two freights, the result is the same " (l). The judgments in this case throw a new and important Ught on this vexed subject. They seem to lead to the conclusion that the charterer remains Kable, notwithstanding the ordinary cesser clause, for all claims of the shipowner under the charter party, whether accrued before or after the loading, unless the shipowner has an effectual lien upon the cargo for those claims (m). 651. A charterer may, however, be Hable for matters subse- Charterer quent to the loading of the ship, notwithstanding the cesser ^Ym rf'* clause, if he is himself the holder of the bills of lading given for Jfo^^th^tindl the cargo. Though as charterer he may be absolved from lia- ing cesser clause. (J) (1891) 1 Q. B. 625. (*") Brankelow SS. Co. v. Canton Ins. ,. ,,„„„ , „' ' Office, (1899) 2 Q. B. 178; Burrill v. « (1894) 1 Q. B., pp. 621, 622. ^rossJn, 69.1'ed. Rep. 747. 750 THE DELIVERY. Sect. 651. Mlity hj the terms of the chaxter party, he may still be respon- sible under the new contract made by the bills of lading. In Ghallischen v. Stewart (w) this point was expressly decided with regard to demurrage at the port of discharge. By the charter party it was agreed that the charterer's responsibility should cease as soon as the cargo was on board, and that the vessel should have a lien for freight and demurrage. A cargo was shipped by the charterers, and biUs of lading were given to them, making it de- liverable to them or their assigns, " they paying freight and all other conditions as per charter party." The charterers sold part of the cargo, but they held some of the bills of lading, and received part of the cargo under them. It was held that they were liable, as consignees, for detention beyond the lay days specified in the charter. The contention that the cesser clause of the charter party was incorporated ia the biU of lading, and operated to discharge the consignees, was discussed and rejected ; that clause being considered to have no application to the bill of lading contract. In the same way the charterer may be liable, as holder of the bills of lading, for detention at the port of call (o). (») 11 Q. B. D. 186 ; 13 Q. B. D. 317. Eliza Lines, 61 Fed. Eep. 308. Cf. Barwiok v. Buinyeat, 36 L. T. 250. (o) Bryden v. Niebnhr, 1 Cab. & Ell. As to freight at a port of refuge : The 241. CHAPTER XVIII. THE shipowner's LIENS FOE FREIGHT, DEAD FREIGHT, AND DEMURRAGE. 751 SECT. Nature of the lien — Not enforceable on goods wrongfully shipped , , , , 652 Lien for freight at common law . , 653 Not lost by maMng express contract — Confined to the particular ship- ment 654 Rule extends to freights under charter party 655 Quiere, where charterer may use the ship as a general ship — ^Difference between charter and bill of lading freights, made payable in advance 656 On what goods may the lien be enforced f 657 No Uen at common law for other claims, except general average, and expenses for cargo 658 Express lien clause — Early form . . 659 Modem form — ^Attaches to outward cargo 660 Terms inconsistent with lien — ^Pay- ment after delivery— Payment by bills 661 Charter giving possession to charterer 662 Is there a Uen for freight payable in advance ? 663 Where the voyage is abandoned . . 664 No Uen if acceptance in advance running 665 Express lien for dead freight 666 Express lien for demurrage 667 Charter-party liens not preserved against shipper or assignee of EOT. bills of lading unless incorporated in them 668 When is lien for charter freights incorporated ? 669 Notice of existence of charter party not sufficient 670 Liens for dead freight and de- murrage 671 Liens valid against factor of charterer 672 Liens valid against shipper, if bill of lading not authorized and shipper ought to have inquired. , 673 Or if shipper has coUuded with charterer 674 Summary 675 Are the charter-party liens valid against goods shipped under agreement vrith the charterer ? . . 676 Shipowner must keep possession of goods 677 Lien may in some cases revive on regaining possession 678 Lien may be lost by inconsistent conduct 679 Tender may be waived 680 Lien for charter freight not lost by delivering and ooUeoting freight under bills of lading 681 EfEect of lien where performance of the contract becomes impos- sible 682 Expenses of preserving Uen not re- coverable — ^Except as damages . . 683 652. Apart from any lien, tlie shipowner has the right to keep Nature of the possession of the goods until they have been properly claimed from him. The hiU of lading or other document which represents them 752 THE DELIVERY. Sect. 652. ought to be produced, and the goods taken under it. The consignee cannot take them by force, so as to avoid producing-, the bill of lading and acceding to its conditions. If he does so, the ship- owner may sue him in trespass (a). But, beyond this, the shipowner generally has a right to retain the goods in his possession until the freight upon them, and some- times other charges also, have been paid. This right is called a jien. It does not give the shipowner any property in the goods ; nor does it enable him to sell them ; even though the retention of them may be attended with expense (6). It is simply a right to keep possession, and to resist all claims to take them away. And it avails against the true owner of the goods, although he may not be the person liable for the freight, or other charges. aHe oDf°oodB ^^^ indeed, the goods have been shipped without the authority of ■wrongfully the owner, and he has not in any way ratified the contract, it seems shipped. that the shipowner cannot as against him enforce the lien which the law, or the agreement, would otherwise have given ; at any rate, he cannot do so if he had notice of the want of authority (c). And if the goods were shipped in fraud of their owner, it seems that the shipowner, although innocent of the fraud, cannot refuse to give them up to him [d). Lien for 653. Apart from any express contract, the shipowner has a lien cot^oiTla-w. ^^^ ^^ freight ; that is, for the remuneration payable to him for carrying the goods. This rule has been laid down generally ; whether the goods are carried under a charter party, or in a general ship, the shipowner may retain them until the freight upon them is paid (e). And it is said to have been adopted by the common law from the general maritime law ; that is to say, from the rules which were recognised in early times among peoples engaged in maritime commerce (/). The lien for freight is, however, analogous to others which are given by the common law, and it may perhaps be regarded as {a) Lucas v. Nookells, 4 Bing. 729. Grenaugh, 2 Ld. Eaym. 866 ; Johnson (i) MuUiner v. Florence, 3 Q. B. D. v. Hill, 3 Stark. 172. 484 ; Thames Ironworks Co. e. Patent (e) Anonymous, 12 Mod. 447 ; Cross Derrick Co., 29 L. J., Ch. 714. on Lien, p. 289 ; infra, s. 655. (c) Waugh V. Denham, 16 Ir. C. L. (/) See Parsons, Shipping, note to 405. Vol. I., pp. 174—177; and Drinkwater ((?) Story, BaU., s. 588, citing Rohia- v. The Brig Spartan there cited; and son V. Baker, 5 Cush. 137 ; Parsons, see the statements of the maritime law Sh. I., p. 180. But cf. the case of given there, and in Abhott (6th), 247; The Exeter Carrier, cited in Torke v. (13th), 446. LIENS FOE FREIGHT, ETC. 753 having a sufi&oient foundation in principles wHch are native to that Sect. 653. system. A- similar lien is given to common carriers by land (g'). And though this has been said to arise from the fact that they are bound to carry for any persons who may req.uire them to do so {h), it seems also to be justified as an instance of the general rule, that where goods have been delivered to a man to do work on them, in altering and improving their condition, he is entitled to a lien on them for his reward {i). And probably that rule also suflBciently justifies the lien for freight on goods carried by sea, which we are discussing {k). 654. The Hen for freight, then, is not dependent on any express isTot lost by agreement. Nor is it lost when a contract is made which provides ™e^ontraot for the manner in which the freight is to be paid, unless the con- tract is ia some way inconsistent with the Ken {I). But, as we shall see shortly, the terms of the contract are generally such as themselves to confer it. The right is confined to the freight payable on the particular Confined to shipment of goods. A shipowner cannot retain the goods for other sMprnTnt! freights due from their owner upon other transactions, unless an agreement to that effect has been made expressly, or unless such an agreement must be inferred from the course of business between the parties, or from a general usage in the trade (m). And no usage could entitle the carrier to retain the goods as against con- signees to whom they belong, for debts due to him from the shipper (»). Nor can usage give the carrier a general Hen on the goods for debts due from the consignee in such a way as to defeat the right of the vendor-shipper to stop the goods in transit (o). ' 655. The Hen for freight under a charter party is often a less Eule extends obvious deduction from common law principles than is that for under charter freight under a bill of lading. The charter freight may be regarded '^^'^^• (?) Skinner v. Upshaw, 2 Ld. Eaym. citing per Johnson, J., in Cracie v. I^i. Palmer, 8 Wheat. 605. (A) Per Holt, C. J.,Torke'!).Grenaugh, (0 Cliase v. "Westmore, 5 M. & S. 180 ; 2 Ld. Eaym. 866 ; per Lord EUen- Crawshay v. Homfray, 4 B. & A. 60. borough, Eushf orth v. Hadfield, 6 East, W See Eushforth v. Hadfleld, 6 East, 519. 519 ; 7 East, 224. ,. „ .„ „ , (n) Cf. Wright v. SneU, 5 B. & A. W Smith, Mere. Law (9th), p. 560 ; gg^ 3^^^^ ^ ^„„l„„t, 2 N. E. 64 ; Scarfe .. Morgan, 4 M. & W. 270. Leuckhart v. Cooper, 3 Bing. N. 0. 99. (*) See Parsons, Shipping, I., 177 n., (0) Oppenheim?;. Ewssell, 3 B. &P. 42. C— a 3 C 754 THE DELIVERY. Sect. 655. as in part a payment for the sTiIp's voyage to the port where the cargo is to be loaded. Moreover it is often a fixed sum, having no direct relation to the quantity of goods carried. StUl it appears to he well settled that, whether the freight he payable in proportion to what is carried, or hy a fixed sum, the lien arises independently of the express terms of the charter party, unless they are incon- sistent with it. "Whether the same is true with regard to freights payable for the use of the ship in proportion to the time occupied, does not appear to have been decided. But where the contract is one by which the shipowner undertakes to carry the goods, and does not merely lease his ship, the same rule seems applicable. In Tate v. Meek (p) a ship was chartered to proceed to Bahia and load, and thence to a port of discharge, and " make a right and true delivery of the whole of the cargo agreeably to bills of lading that should be signed for the same." The freighters cove- nanted to pay for the freight or hire of the vessel at a certain rate upon the goods delivered, which was to be paid as follows : 300/. in cash on the day the vessel was reported inward, and the re- mainder by good and approved bills at two months after date from the day on which the delivery should be completed. A cargo was shipped at Bahia, of which part belonged to the charterers, and part to other merchants. A bill of lading given for that which belonged to the charterers made the goods deliverable to them, or their assigns, he or they paying freight as per charter party. On arrival, the goods shipped hy the other merchants were delivered on payment of the bill of lading freights, which were collected by the shipowner. The charterers had become insolvent, and no tender of the rest of the charter freight was made. The ship- owner refused to deliver the goods shipped hy the charterers to the assignees for the benefit of their creditors until payment of that freight was made. It was held that he was entitled to do so ; for the delivery and the payment of the remaining freight were to be concomitant acts, one of which could not be required without per- formance of the other. The same Court, in Tates v. Meynell (q), also considered that this lien was not affected by the form of the charter party, under which the shipowner " granted and let " the ship, and the charterers took the same on freight. {p) 8 Taun. 280. But of. Hntton v. (?) 2 Moore, 297. And see Chiistie v. Bragg, 7 Taun. 14. Lewis, 2 B. & B. 410. LIENS FOE FREIGHT, ETC. 755 These cases were followed in Saville v. Campion (r), where the Sect. 655. freight was payahle under a charter for an outward and homeward voyage, at a certain rate per registered ton. 500/. was to he paid in cash at the expiration of six months from the date of the charter party ; a moiety of the remainder hy bills at two months after date from the day on which the ship should arrive in the Thames, on her return from her homeward voyage ; and the residue by bills at four months' date from the same period. The charterers became bankrupt, and neither they nor their assignees tendered the bills for the freight. In an action by the assignees for the goods, it was held that the shipowner was entitled to retain them until payment. Abbott, 0. J., in delivering the considered judgment of the Court, said : " Upon this instrument, therefore, and between the parties to this suit, we think the defendant had the possession of the ship and goods for the voyage, and a lien on the goods for the stipulated hire of the ship, there being nothing to show that the delivery of the goods was to precede the payment of that hire in cash and bOls, as provided for by the deed " (s). In Black v. Eose {t) the freight under a charter party was to be paid at a certain rate on the quantity of cargo safely delivered ; but there was no stipulation as to when it was to be paid. The shipowner demanded payment as the cargo was delivered, and refused to deliver except on those terms. The Privy Council, afiBrming the judgment of the Supreme Court of Ceylon, held that he was entitled to do so ; and they appear to have approved the rule laid down by the Chief Justice of the Supreme Court (Creasy), that "when there is no express stipulation as to the time and manner of payment of- freight the master is not bound to part with the goods until his freight is paid " (m). 656. But where the charter party provides that the master shall ^^^^^^^^^^ sign bills of lading as required, and entitles the charterer to collect nee the ship nci.i . • iijij.j!i^^^ general the freights under those bills of lading, it seems to be doubttul ghip. whether a Uen for the charter freight will arise, even as against the charterer (»), if he has in fact used the ship as a general ship. (r)2B. &Ald. 603. N. S. 31. W See also Faith v. Bast India Co., («) See also MoUers. Foung, 24 L. J., 4 B. & A. 630 ; and Campion v. Colvin, Q. B. 217 ; 25 L. J., Q. B. 94. 3 Bing. N. C. 17. {x) As to the shipowner's rights (0 2 Moo. P. C, N. S. 277 ; 11 L. T., against the sHppers, see infra, s. 668. 3c2 756 THE DELIVERY. Sect. 656. The question as to when the chartered freight hecomes due under such circumstances was carefully considered in Brown v. Tanner (y) ; and it was held not to be due until the cargo had been completely delivered. The ship had there been chartered to go to Algoa Bay for a cargo of merchandise, with which she was to proceed to London, where it was to be deliTered on payment of freight after certain specified rates for the various articles of merchandise enumerated. The freight was to be paid " on unloading and right delivering of the cargo as customary." The master was to sign bills of lading at any rate of freight, if required, without prejudice to the charter party ; and these bills of lading freights were to be collected by the charterers. The Court held that the charter party freight was not due until the objects of the voyage had been completely carried out. " On principle, we conceive that the freight cannot be due from the charterers on a charter party such as the present until they have had the full user of the ship for the purposes for which they char- tered it. It is, in fact, analogous to the demise of property until a given purpose is answered : the purpose in this case being, first, the outward voyage ; second, the taking in of a complete cargo at such profit freight as the charterers may be able to obtain above the freights they have agreed to pay to the owner ; and, third, the delivering of the cargo to the consignees by the charterers" (s). The question in that case was as to the right to the freight of a mortgagee of the ship, who had taken possession of her while the cargo was being discharged ; the other claimant being an assignee of the freight from the shipowner. The right of the shipowner to a lien for the chartered freight was not discussed ; and inasmuch as the charter there gave the shipowner a lien expressly, the Court probably did not intend to decide the question before them in a manner which was inconsistent with that lien. The ground, how- ever, put forward, as above quoted, does appear to cut away the lien for freight under charters of this kind, where it has not been expressly reserved. Difference In Gardner v. Trechmann (a), the charter party expressly gave charter and ^ lie^- ^0^ freight, but it also contained the clause, " It is further frdffht^made ^S^^®^ *^^ captain to sign bills of lading as presented, and at any payable in rate of freight, but should the total amount of freight as per bills adrance. . . . of lading be under the amount estimated to be earned by this it/) L. K., 3 Ch. 597. («) L. K., 3 Oh. p. 603. (a) 15 Q. B. D. 154. LIENS FOE FREIGHT, ETC. 757 charter, the- captain to demand payment of any difference in ad- Sect. 656. vance; on the other hand, any difference in excess of chartered freight to be deducted by charterers' agents at port of discharge." Upon this, Brett, M. E., expressed the opinion that the charter party gave no right of lien for the difference between the charter party freight and that which was payable under the bills of lading. The excess of the former " was to be paid immediately before the ship sailed ; it was to be demanded by the captain ; the shipowner had no rignt of lien for that excess even against the charterer; the stipulation was a mere reservation of a right which the ship- owner could not enforce by lien." 657. The shipowner, in enforcing his lien for freight, may retain 0°^ J^^^ all the goods in respect of which that is payable, until the whole the lien be has been paid (6) ; or he may give delivery by instalments, and require the freight on each instalment to be paid concurrently with delivery of that (e). If he has delivered some of the goods without receiving the freight on them, he may still retain the remainder for the whole of the freight due (d). And if goods comprised in several bills of lading are deliverable to the same person, it seems that they may be treated as all one lot of goods for the purpose of this lien, provided that they were shipped under one contract (d) ; but not otherwise (e). On the other hand, where several bills of lading have been given for different parts of one shipment, and have been assigned by the shipper to different persons, the shipowner cannot exercise the Hen for freight under one bill of lading upon goods comprised in another which is in other hands (d). In Thorsen v. McDowall (/) the freight was payable " after unload- ing " ; it was held that the shipowner could not properly stop the discharge until the freight on the goods still in the ship was paid. 658. In addition to this lien for freight, the shipowner, as we ^° lien at T , . . common law have seen, has liens at common law for general average contri- for other butions due from the cargo, and for particular expenses incurred general ^^ ^^ by him for its safety (g). Otherwise he is not entitled, apart from eren^es™^ cargo. (5) Perez u. Alsop, 3 F. & F. 188. ment in Hanson v. Meyer, 6 East, {e) Black V. Rose, 2 Moo. P. C, N. S. P" ®^^- ' ,, , „ „,» ,, -r _, „ „ (e) Bemal ». Pim, 1 Gale, 17. 277 ; 11 L. T., N. S. 31 ; supra, s. 546. Jj^ ,, g^^^, q,, [..^^^ ^.^ (d) Sodergrenr. Flight, cited in argu- (V) Supra, ss. 295, 442. 768 THE DELIVEKY. Sect. 658. express contract, to retain tlie goods to secure payment of claims wMcli he may have against the shippers or owners. He has no lien, for example, for demurrage, or for damages for detaining the ship {h) ; nor for dead freight, or compensation for not loading the full agreed cargo {h) ; nor for charges, such as pilotage and port charges, which the charterer may have agreed to pay (■«■). Express lieu 659. But clauses are frequently inserted in charters which ex- form. ' pressly give a lien on the cargo for the freight, and also for dead freight, and for demurrage. It was at one time not uncommon for a charter party to contain a clause that "for the true performance of every article, matter and thing herein contained the parties hereby mutually bind and oblige themselves, especially the shipowners, the said ship, her tackle, and appurtenances, and the charterers, the goods and merchandises to be laden and put on board the said vessel, each unto the other and others of them, in the penal sum of 3,000/. sterling, to be forfeited and paid by the party delinquent to the party observant, to the true and punctual performance thereof " (/c). It seems to have been intended to incorporate by this clause an early rule of maritime law by which the ship and freight were bound to the performance of the covenants of the shipowner, and the goods to the performance of the covenants of the merchant {}) . But it was held in Birley v. Gladstone {m), that the clause did not give the shipowner any lien; and Lord Ellenborough said it seemed that if any benefit could be derived imder it, it must be in a court of equity. In that case a biU was afterwards filed in Chancery, asking a declaration of a lien, but was dismissed («). Sir W. Gb'ant, M. E., said, " A com-t of equity is not bound to find an equitable efEect for a clause, merely because the construction which a oom't of law has put upon it would leave it inoperative ; in truth, it has been copied from foreign charter parties, with very little consideration of the effect that might be allowed to it in the law of this country. I think it very probable, that in other countries it would have the (A) Phillips V. Rodie, 15 East, 547 ; (A) See Birley v. Gladstone, 3 M. & S. Birley v. Gladstone, 3 M. & S. 205. 205. [l) See Abtott (llth) ; (iv), 2, 1. (i) Faith v. East India Co., 4 B. & A. \m) 3 M. & S. 205. 630. («) Gladstone v. Birley, 2 Mer. 401. LIENS FOE FREIGHT, ETC. 759 effect of entitling the shipowner to retain the cargo for every sort Sect. 659. of demand that could accrue to him under the charter party." 660. In modern charters the lien is very frequently given by. a Modem form, general clause that the shipowner is to have, "an ahsolute lien on the cargo for the recovery of all freight, dead freight, and demurrage." Such a clause covers all freight payable during the voyage, so that the lien may attach to outward cargo for the charter freight, or part of it, although it may be agreed that that shall be calculated upon the homeward cargo. Thus, in Gilkison v. Middleton (o), the agreed voyage was to AttaoBesto China and back, and the freight was to be calculated on the home- oarJoT ward cargo. But it was partly payable by an acceptance of the charterers, to be given on sailing outwards. The vessel sailed with cargo for Singapore ; and before she arrived there the charterers failed, and their acceptance was dishonoured. It was held that the express lien given by the charter party would have attached to the outward cargo, so that the shipowners might have retained it for the amount of the acceptance, had not bills of lading been given which stated that a smaller sum only was payable on those goods (i?). 661. If the bm of lading or charter party is inconsistent with Terms ineon- the lien for freight which the shipowner would have at common Ylso.. law, the right to that lien does not, of course, arise. The parties must be considered to have excluded it by their contract. Thus, Payment after if the freight is not to be payable until after the goods have been ^ ^^^' delivered, the shipowner has no lien on them for it (g'). And the fact that the freighter or consignee has become insolvent does not alter the obligation to deKver the goods without payment (»■). But a stipulation that the freight is to be paid by bills, which Payment by will themselves not be due until after the cargo has been dehvered, does not affect the right to hold the goods imtil the bOls are given. And in Tate v. Meek (s), it was held not to be inconsistent with this lien that the bills were to be payable at two months after date from the day on which the delivery should be (o) 26 L. J., C. P. 209. Bing. 729. (p) See infra, s. 663. {f) Alsager v. St. Katherine's Dock (?) Foster v. Colby, 28 L. J., Ex. 81 ; Co., mpra. Cf. Thompson v. Small, 1 Alsager v. St. Katherine's Dock Co., 15 C. B. 328 ; 14 L. J., C. P. 157. L. J., Ex. 34 ; Lucas v. Nookells, 4 (s) 8 Taun. 280. 760 THE DELIVERY, Sect. 661. completed. It was considered that the difficulty could be met by the captain landing the whole cargo in his own name, and deliver- ing it all at once. If the contract gives a lien expressly, and yet contains terms that are inconsistent with it, the conflict must be settled so as best to give effect to the apparent intentions of the parties, having regard to the ordinary rules of construction. In Foster v. Colby {t) a charter party gave the shipowners an " absolute lien on the cargo for aU freight." The freight was to be a lump sum, and was to be paid partly on sailing, partly on delivery of an outward cargo, and " the remainder in cash two months from the vessel's report inwards at London or Liverpool, and after right delivery of the cargo, or under discount at 51. per cent, per annum, at freighter's option." The point was not necessary to the decision, but all the judges were of opinion that the lien did not attach for that part of the freight which was payable after delivery of the homeward cargo («). Charter giving posses- sion to charterer. Is there a lien for freight payable in advance ? 662. A charter party by which the owner gives up the possession and control of the ship to the charterer is not consistent with a lien for the freight on the goods carried in the ship. For the owner has not possession of the goods. He cannot, therefore, detain them for unpaid freight due under the charter («). But in SmaU v. Moates (y) it was considered that if the charter party expressly gives a lien for the freight, this diffictilty may be overcome. For if the owner is not in possession of the ship, still, under the terms of the contract, it must be taken that the charterer has possession of her on his behalf, so far as the lien on the cargo is concerned. 663. The cases which present the greatest difficulty are those in which it has been agreed that the freight shall be paid in advance, or independently of delivery ; for example, on sailing, or at a fixed time afterwards. Lord Kingsdown, delivering the judgment in Kirchner v. Yenus (s), laid down that freight payable in that way is not in truth freight, and is not protected by a lien as a legal {t) 28 L. J., Ex. 81. (m) So also, Lucas v. Nockells, 4 Bing. 729. (x) Belcher v. Capper, 4 M. & G-. 502. Cf. Christie v. Lewis, 2 B. & B. 410; Hutton V. Bragg, 7 Taun. 14. {!/) 9 Bing. 574. Cf . The Stomoway, 46 L. T. 773. [z] 12 Moo. P. C. 361. LIENS FOR FREIGHT, ETC. 761 incident ; so that no lien for suoh freight arises unless it has been Sect. 663. agreed for in the contract. He said, " a sum of money payable before the arrival of the ship at her port of discharge, and payable by the shippers of the goods at the port of shipment, does not acquire tha legal character of freight because it is described under that name in a bill of lading, nor does it acquire the legal incidents of freight. It is in effect money to be paid for taking the goods on board and under- taking to carry, and not for carrying them." And " when parties, instead of trusting to the general rule of law with respect to freight, have made a special contract for themselves for a payment which is not freight, it must depend upon the terms of that contract whether a lien does or does not exist ; and when the contract made gives no lien, the law will not supply one by implication." These dicta have not altogether been approved of in later cases (a) ; and it may, perhaps, be doubted whether there is any such essential difference between freight payable in advance, and freight payable on delivery (b). Freight payable in advance is stiO. the remune- ration for the carriage of the goods, although the payment is not conditional upon a complete performance of that service. The question as to the Uen for that freight generally arises when the service has in fact been performed ; the goods being, at their destination. And that being the case, it is difficult to see why the ordinary rule of the common law does not apply ; unless it can be said that the contract is inconsistent tcith the lien. This, it would seem, should be the test (c). But Lord Kingsdown's judgment laid it down that there was no lien unkss the contract gave it. Kirchner v. Yenus followed How v. Kirchner {d), also in the Privy Council, where the facts were very similar. In both cases the freight was to be paid " one month after sailing, ship lost or not lost ; " but in How v. Kirchner it was payable by the shippers ; while in Kirchner v. Venus it was to be paid in Liverpool (the port of loading), to a certain person there. In each case the freight had not been paid, and the shipowner claimed to hold the goods at the [a) Cf. Allison v. Bristol Mar. Ins. Gardnerv. Treoliniann, 15 Q. B.D. 154; Co., 1 A. C. 209. cited mpra, s. 656. (S) But see per Brett, J., in Nelson v. ., , „^ , Association for Protection of Commercial ^ ^^^ P^"^ ^""^^ Wensleydale in How Interests, 43 L. J., C. P. 218 ; Exparte *• Kirchner, 11 Moo. P. C. 21. Nyholm, Re Child, 43 L. J., Bank. 21 ; {d) II Moo. P. C. 21. 763 THE DELIVERY. Sect. 663. destination until payment, as against the assignee of tbe bill of lading. They were cases to which the Bills of Lading Act, 1855, did not apply. In Kirchner v. Venus (e) the cases of Gilkison v. Middletoli (/) and Neish v. Graham (g), which had been decided shortly before, by the Courts of Common Pleas and Queen's Bench, were discussed and dissented from. Grilkison v. Middleton (/) was the ease of a ship chartered for a round voyage, at a freight partly payable in advance by a bill for 900^. The charter provided that the master should sign bills of lading as required by the charterers, without prejudice to the charter party, and that the owners should have a lien upon the cargo for all freight. She was loaded at Liverpool as a general ship, the charterers themselves shipping certain goods which they consigned to the defendants at Singapore. Bills of lading were signed by the master for these goods, which made them deliverable to the defendants, or their assigns, " paying freight for the said goods here as per margin ; " and the clause, " Freight payable in Liverpool one month after sailing, vessel lost or not lost," was added. The defendants had a house in Liverpool; and they took the bills of lading, and advanced against them, before the ship sailed. The bill of lading freight was not paid, and the charterer's bill for 900/. was dishonoured before the ship arrived. It was held that the owners were entitled as against the bill of lading holders to a lien for the hill of lading freight, though not for the 900/. In Neish v. Graham [g) the goods shipped at Glasgow were consigned to defendants abroad, under a bill of lading which made the freight payable by the shipper one month after sailing. This bill of lading was handed to the defendants, who had a house in Liverpool, in exchange for advances. The Court considered that the case was governed by Gilkison v. Middleton {h), and upheld the lien for the impaid freight. Erie, J., said : " The general rule is that the shipowner has a lien, unless there be anything in any document, by which he is bound, to show an intention to waive it ; and the Court of Common Pleas has said that a document Uke the present does not express {e) 12 Moo. P. C. 361. ^^^ B^^ ^f ^.^ j ^ Tamyaco (/) 26L. J.,0. P. 209. „; ^^ ^ ' ' 1;) 27 L. J., Q. B. 15. "■ ^""1'=°'^' 34 L. J., C. P. p. 268. LIENS FOE FREIGHT, ETC. 7^63 sucli an intention ; and I see no harm in holding that it does Sect. 663. not." It is on this last point that the decisions of the Privy Council are in conflict with those of the other Courts, and the issue does not seem to have been finally decided. If the true test is whether such a contract is inconsistent with a lien, it may he said that it is inconsistent where the bill of lading provides that the payment of the freight is to be made by the shipper, and that the delivery is to be to some other person in a different place. That was the effect of the bill of lading in each of the Privy Council cases. And as they were not affected by the Bills of Lading Act, the consignees there were not liable for the freight. Where, however, the bill of lading merely provides that the freight is to be paid in , advance, or independently of the arrival of the goods, that provision does not seem to be inconsistent with a lien ; especially if the consignee is himself liable for the freight, under the Act («) . If, indeed, the biU of lading represents that the freight has been paid, the shipowner is estopped from denying that, as against one who has given value for the bUl of lading in ignorance that it was not true. He cannot, therefore, claim the lien {k) . 664. The ease of Ex parte Nyholm, In re Child (l), shows that Not where a lien given by a charter party, for the charter freight, does not abandoned, attach for a part of the freight made payable on signing bills of lading, where the voyage is entirely given up, and the bills of lading are not signed. It was not enough that the goods had been shipped, and that the shipowner was ready to give bills of lading. The charterer had failed, and the trustee in the liquidation had disclaimed all interest in the charter party {m). In Nelson v. Association for the Protection of Commercial Interests («) a lien was claimed, though the goods had been abandoned by the shipowner on the voyage. They had been shipped under a bill of lading by which the freight was payable at the port of discharge (Liverpool), " ship lost or not lost." The (i) See supra, a. 606. As to tlie effect B. D. 154. of a custom at Liverpool preserving the {1} 43 L. J., Bank. 21. Cf. Thompson lien, which was set up in Kirchner v. v. Small, 1 C. B. 328 ; 14 L. J., 0. P. Venus, see supra, s. 200. 157. (J) Howard t). Tucker, 1 B. & Ad. 712. (m) See the case stated supra, s. 563. And see Gardner v. Treohmann, 15 Q. {«) 43 L. J., 0. P. 218. 764 THE DELIVERY. Sect. 664. gtip -vpas wrecked on the voyage ; and was abandoned by the owners, who took no steps to save either ship or cargo. But they claimed to have a lien on the cargo ; and they arranged with the defendants that an agent who had been sent out by the defendants, on behalf of the underwriters, to assist in saving it, should be allowed to save and forward as much as he could, without prejudice, and for the benefit of whom it might concern. On the arrival of the goods at Liverpool the shipowners claimed a lien on them for the full freight, without deduction of the salvage and forwarding expenses, which in fact exceeded the freight. It was held that they were not entitled to any Uen. Brett, J., said : " Upon the arrival of the goods at the port of destination no lien existed, for the goods were forwarded by other persons than the plaintiffs." And he added : " If the shippers were bound to pay the freight whether the ship was lost or not lost, there was no lien at all, for the right to lien does not arise unless the payment of the freight is to be on the delivery of the cargo; if the freight is payable without delivery of the cargo, the lien does not accrue." No lien if 665. In Tamvaco v. Simpson (o), a ship was chartered for a acceptance vovage with a carffo of coals to Alexandria : " The freight to be running. paid on Unloading and right delivery of the cargo, less advances in cash at current rate of exchange ; one-half . of the freight to be advanced by freighter's acceptance at three months on signing biUs of lading; owner to insure the amount and deposit with charterers the club policy, and to guarantee same." A bill of lading was given for the cargo making freight payable as per charter party, and a receipt for half the freight was indorsed upon it when the charterers had given the agreed acceptance. The ship arrived at Alexandria while the charterer's acceptance was still running ; but he had ia the meantime stopped payment, and the master claimed a lien on the coal for the full chartered freight. It was held, in the Exchequer Chamber, affirming the Common Pleas, that there was no lien for the half covered by the outstanding acceptance, and that the holder of the bill of lading was entitled to the cargo on payment of the other half. The question was there discussed whether there would have been a lien for the whole freight, if the vessel had not arrived until after (o) 34 L. J., 0. P. 268 ; in Ex. Ch., L, E., 1 C. P. 363. LIENS FOR PEEIGHt, ETC. 765 the aoceptance had become due and teen dishonoured (p) ; but it Sect. 665. was not decided. 666. The expression "dead freight" is used to denote the com- Express lien pensation payable to the shipowner when the charterer has failed freight, to ship a full cargo. It may be payable at an agreed rate, but more generally its amount has to be assessed, by ascertaining the loss actually sustained by the shipowner, after taking into account the further expenses he would have been put to if the whole cargo had been shipped. As we have seen, the shipowner has no lien for this compensation apart from express contract. And it was at one time said that the express Hen for " dead freight" could not apply to an unliquidated claim to compensation (q). But it has been decided that the agreed lien does cover such damages, although they may have to be calculated, and though the calculation may be difficult (r). 667. With regard to the lien expressly given for demurrage. Express lien for de rage. questions have frequently arisen, as we have already seen (s), as to what that includes ; and particularly as to whether it extends to damages for detention; and if so, whether to detention at any part of the voyage, or only at some particular points of it. In Francesco v. Massey (t) and Kish v. Cory (u) , where payment for time on demurrage was expressly provided for, both at the port of loading and at the port of discharge, the lien clause was read to relate to demurrage at both ports. And in Bannister v, Breslauer (x), it was held to relate to detention at the port of loading, as weU. as at the port of discharge ; there being no pro- vision at all for time on demurrage in the charter party. In Harris v. Jacobs (y), the provision in the charter party was, simply, " Demurrage to be at the rate of 30/. per running day ; " and a lien was given on the cargo for " all freight, dead freight and demurrage in respect thereof." The ship was detained at the port of discharge owing to no "ready quay berth" having been provided by the charterer, as stipulated for in the charter party. {p) See "per Blackburn, J., L. R., 1 128. C. P. at p. 372. (s) Supra, s. 648. (j) Pearson v. aosohen, 33 L. J., C. P. (*) L. B., 8 Ex. 101. 265. And see Gray v. Carr, L. K., 6 (m) L. R., 10 Q. B. 553. Q. B. 522. Cf. Clink ». Kadford, (1891) («) L. R., 2 C. P. 497. 1 Q. B. 625. (V) 15 Q. B. D. 247. And see the (r) McLean ». Meming, 2 H, L. So. other cases cited stipra, s. 648. 766 THE DELIVERY. Sect. 667. It was held that the shipowners had a lien on the cargo for their damages hy this detention. Brett, M. E., said (s) : " It is true that the damage in this case is not strictly demurrage, but it is in the nature of demurrage, and the clause as to demurrage in a charter party is elastic enough, in the ordinary construction of a charter party, to comprise such a damage as this." But in Lockhart v. Falk (a), where there was a demurrage clause, relating only to the port of discharge, it was held that the lien for demurrage did not include damages for detention at the port of loading. And this has been recently followed by the Court of Appeal in Clink v. Eadford (6), and in Dunlop v. Balfour (c). Charter-party 668. The shipowner's liens under a charter party may be served against modified by the biUs of lading which have been given for the assF. Colby, (c) (1892) 1 Q. B. 507. See also 28 L. J., Ex. 81 ; GilMsoni). Middleton, Gardiner v. Macfarlane, 26 So. L. E. 26 L. J., C. P. 209 ; Mitchell v. Soaife, 492 ; and see the matter further dis- 4 Camp. 298 ; Paul v. Birch, 2 Atk. 621. cussed, supra, b. 648. In this last case the merchants shipped LIENS FOE FREIGHT, ETC. 767 "A hona fide indorsee of a Mil of lading having no notice Sect. 668. whatever of any charter party, or any other freight to be paid except that which is expressed in the bill of lading, and not - colluding with any person to get an advantage that he is not entitled to," is " entitled to the goods on payment of the freight stipulated in the bill of lading " (e). 669. If, however, the bill of lading incorporates the terms of the When is lien , , , 1 . 1 1 . 1 cc • for charter charter party, as by using such comprehensive words as " paying freight incor- freight for the same goods and all other conditions as per charter po'^**^'^ ^ party," the owner's lien on the goods for the charter freight is preserved (/). On the other hand, where the words used' are " paying for the said goods as per charter party," they are read to mean, paying for the particular goods at the rate mentioned in the charter party. And the further liens given by the charter are not preserved against those goods, if they have passed to third persons (^r). In Fry v. Chartered Mercantile Banls {h), a charter had been made by which the cargo was to be delivered " on being paid freight as follows : the ship to have a lien on cargo for freight, 3/. 10s. sterling per ton of 50 cubic feet measured in Shanghai, to be paid to the captain or his agents on right and true delivery at the port of discharge (the act of God, &o. &c. always excepted) , the freight to be paid on unloading and right delivery of the cargo." The charterers themselves shipped a quantity of ^ea as part of the cargo, under a bill of lading which stated " Freight for the said , payable in Liverpool as per charter party, with primage and average accustomed." They then obtained an ad- vance from the defendants upon this bill of lading and a letter of hypothecation. No copy of the charter party was shown to the defendants, nor did they know its contents ; but they were given to understand that the freight was 70.s. a ton. On amval, all the goods shipped by merchants other than the charterers were under contract with the charterer ; and (/) Lamb v. Kaselaok, 19 Sc. L. R. it was held that he could not bind the 336 ; Porteus v. Watney, 3 Q. B. D. goods for the charter freight ; it does 223, 534 ; Gray v. Carr, L. K., 6 Q. B. not appear whether any bill of lading 523. Cf. Serraiao v. Campbell, 25 Q. B. was given to the shippers. D. 601 ; (1891) 1 Q. B. 283. As to holder of a respondentia bond (jr) Smith v. Sieveking, 24 L. J., Q. anteoedeutto shipment, Cargo ex Galam, B. 257; afBrmed, 5 E. & B. B89 ; Fry 33 L. J., Ad. 97. v. Chartered Merc. Bank, L. E., 1 C. P. (e) Per PoUook, C. B., ia Foster v. 689. Colby, 28 L. J., Ex. p. 86. (A) L. K., 1 C. P. 689. 768 THE DELIVEEY. Sect. 669. delivered on payment of freight according to their bills of lading. This left an unpaid deficiency of the chartered freight greater in amount than the freight payable on the tea, if calculated at the 70s. rate. The shipowners claimed a lien on the tea for the balance of freight due under the charter party. Held, that they were not entitled to it as against the defendants ; for the words in the bill of lading referred to the charter party for the purpose of determining the rate of freight to be paid, and only stipulated for payment at that rate upon those goods. In Grardner v. Trechmann («) the biU of lading m*ie " freight for the said goods payable on delivery, at the rate of 22s. Qd. per ton, &c. ; " and it contained the clause " all extra expenses in discharging to be borne by receivers, and other conditions as per charter party, dated the 23rd of July, 1883." The charter party reserved a higher rate of freight, and gave a Uen for it expressly; though, as it also provided for payment of the difference between the chartered and bill of lading freights in advance, it was considered, by Brett, M. R., and Lindley, L. J., that the lien so given did not apply to that excess. It was held that the lien, if any, for the charter-party freight was not preserved as against a consignee under the biU of lading. Brett, M. R., said : " If the right of lien ever existed it was ousted by the terms of the bill of lading. There are many cases as to what is brought into the bill of lading by this general reference to the charter party. It brings in only those clauses of the charter party which are applicable to the contract contained in the bill of lading ; and those clauses of the charter party cannot be brought in which would alter the express stipulations in the bill of lading. Here there is an express stipulation that the goods shipped are to be delivered on payment of a specific amount of freight ; and this sum is fixed upon without allusion to any other amount of freight. The general reference to the charter party would bring in a lien for demurrage ; but it does not allow a lien to be brought in as to the freight payable under the charter party." Notioe of 670. These eases further show that an assignee for value of the charter party bill of lading, to whom the contract in the biU of lading has not sufficient, pagged, does not lose his right to have the goods free of liens of the shipowner, not expressly reserved in the bill of lading, merely (i) 15 Q. B. D. 154. LIENS FOE FREIGHT, ETC. 769 because he has notice of the existence of the charter party. Nor Sect. 670. heoause he obtains his title from the charterer himself (/). Where the assignee for value takes only as pledgee his inde- pendence of the charter-party liens would seem to depend upon estoppel, and therefore to depend upon absence of notice of the Hens. But mere notice of the existence of a charter party is not sufficient to put him on inquiry. In ChappeU v. Comfort (m), Willes, J., said, that " If there is a bill of lading given by the master, which gets into the hands of an assignee for value, he is entitled to have the goods delivered to him upon his fulfilling the terms mentioned in such bill of lading, and he is not ordinarily in practice bound to refer to the charter party." The qualification which has sometimes been made, that the indorsee shall have taken without notice of the charter party, seems therefore to be too stringent. It may perhaps be said, generally, that when a shipper or an assignee of the bill of lading is not a party to the charter party, it is immaterial that he knows of its existence ; or even that he knows its very terms, unless they show that the bill of lading has been improperly issued. If the shipper or assignee has no notice that the bill of lading was not authorized, and if it apparently falls within the ordinary authority of the master, or person signing it, he may regard it as containing the whole contract between himself and the shipowner, notwith- standing any charter party which may exist {n). 671. In the same way the liens given by the charter party for f'i^^s for dead •' ° . . freight and dead freight, and demurrage, cannot generally be maintained as demurrage; against shippers, or assignees for value, unless the bills of lading expressly incorporate those terms of the charter party. When the bill of lading expresses that the consignee is to pay " freight and 'all other conditions as per charter party," the condi- tions of paying the dead freight, and demurrage due under the charter before getting delivery are brought in, and the Kens are preserved (o). But if the bUl of lading merely provides that {1} But cf . Small ■». Moates, 9 Bing. to sign bills of lading giving up charter- 679 ; Kern v. Deslandes, 30 L. J., C. P. party liens, see supra, s. 161. 297 ; post, B. 673. (o) Porteus v. Watney, 3 Q. B. D. H 31 L. J., C. P. 58. And see per 534 ; Gray v. Carr, L. E., 6 Q. B. 622 ; Lindley, L. J., in Manchester Trust v. Wegener v. Smith, 24 L. J., C. P. 25. Fumess, (1895) 2 Q. B. at p. 546. Of. Serraino v. CampheU, 25 Q. B. D. («) As to the authority of the master 501 ; (1891) 1 Q. B. 283. As to personal C— C. 3 T> 770 THE DELIVERY. Sect. 671. freight shall be paid, or that the goods shall be paid for, " as per charter party," the lien given by the charter party does not attach either for dead frieght [p), or demurrage {q), as against bill of lading holders who are strangers to the charter party. Liens vaM 673. Where, however, the charter party itself was made on against factor ,,,„., , ,..., „.^. , . ., of charterer, behalf of the person to whom the bill of lading has been indorsed, though not in his name, he is bound by its terms, and the liens given by it (r). And so, too, if the indorsement of the bUl of lading has been to one who is acting as agent for the charterer. In Gledstanes t\ Allen (s), part of the cargo was consigned to the plaintiffs by the .charterers, for sale on their account ; and the proceeds were to be set off against bills whieh had been drawn by the charterers upon the plaintiffs, and accepted by them, but not specifically against these goods. It was held that the plaintiffs were in the same position as the charterers at the time of ship- ment ; and that so long as the goods remaiaed the property of the charterers, they were subject to the charter freight. In Kern v. Deslandes {t), the goods were consigned to an agent of the chai'terer to whom he was indebted. It was held that they were subject to the lien for the charter freight. Liens valid 673. Further, the shipowner is not bound by the terms of a bill shipper if bill °^ lading in the hands of a shipper, or his agent, to the prejudice of lading not Qf |-]jq charter-party liens, if that bill of lading was given without authorized . o o and shipper authority, and under circumstances which should have put the inquired. shipper upon inquiry. And the same is probably true as against an assignee who has taken the goods and bill of lading from one who has shipped under such circumstances. In Small r. Moates (m), a ship was chartered to one Wilkinson, who was appointed master of her, for a round voyage, upon which he was to take such cargoes as he chose. He was to pay freight for the " use or hire " of the ship at a certain rate per registered ton per month, by agreed instalments. The owner was to have a liability of the consignee for demurrage P. 58 ; Smith v. Sievekiug, 24 L. J., Q. at the port of loading, see supra, ss. 160, B. 267 ; 6 E. & B. 589. 637. (r) McLean v. Fleming, L. R., 2 H. L. [p) Kerford v. Mondel, 28 L. J., Ex. Sc. 128. 303 ; McLean «>. Fleming, 2 H. L. Sc. (s) 12 0. B. 202. 128, per Lord Chelmsford, p. 133. \i) 30 L. J., C. P. 297. (?) Ohappoll V. Comfort, 31 L. J., C. («) 9 Bing. 674. LIENS FOR FREIGHT, ETC. 771 lien upon the loading of the ship for all arrears of freight to heoome Sect. 673. due under the charter, and for certain other payments. Wilkinson received cargo from shippers for the return voyage ; but not being able to fill up, he bought and shipped some rice and saltpetre on his own account ; and to enable him to pay for them he obtained an advance from Boyd, Beeby & Co., of Calcutta, upon the security of the goods. By agreement with them he signed bills of lading, which made the goods deliverable to his own order or assigns on payment of a nominal freight ; and he delivered these to Boyd, Beeby & Co. The question was whether holders of these bills of lading, who acted as their agents, could demand possession of the rice and saltpetre, free of the charter- party lien, on payment of a reasonable freight upon those goods. And it was held that the shipowner was entitled, as against them, to the hen given by the charter party for the freight, and other payments (ce). {xj Tindal, C. J., giving the judgment of tlie Court, said: — "That a shipper putting his goods on board the ship, as a general ship, upon, the faith of a bill of lading signed by a person whom the owner has allowed to bear the character of master, would be entitled to receive his goods at the end of the voyage upon payment of the freight reserved by the bill of lading, may be readily admitted, as wen upon the reasonableness of the proposition itself, as upon the authority of the decided cases referred to by the plaintiffs in the course of the argument. No question, however, arises in this case, as to goods the property of third persons, originally loaded by them on board the ship ; all such goods having been duly delivered, so far as appears, to the consignees, or the indorsees of the bills of lading. But the present case is reduced to the single inquiry, whether, under the circumstances stated in the special case, the rights of the plaintiffs with respect to these goods are the same (as contended for them) as the rights of an indorsee for a valuable consideration of a bill of lading given to a shipper, who has loaded his goods on hoard the ship, as a general ship, and without notice of any agreements between the charterer and the owner of the ship : 3d and we are of opinion that the rights of the plaintiffs are not the same with the rights of shippers under the circum- stances above supposed. ' ' In the present case the rice and salt- petre were purchased by WilMnson, the master of the ship, and shipped by him as dead freight on his own account in January, 1828. From the moment these articles were loaded on board, the lien of the defendant attached upon them for the freight and other payments, due to him, under the express contract con- tained in the charter party. If the master had sold this cargo of rice and saltpetre to a third person, but still retained it in his possession on board the ship, to be carried to London, it is difl&cult to state the principle upon which this lien, once vested in the ship- owner, should have become divested from him by such sale. Where goods are put on board a general ship under a bill of lading, and the owner of the ship has by the charter party reserved to himself a lien upon the goods laden on board the ship, for his freight due under the charter party, he has such lien to the extent of the freight due for these particular goods under the bill of lading, whether the goods remain the property of the same person during the 2 772 THE DELIVERY. Sect. 674. Liens yalid if Blipper has colluded with charterer. 674. In Faitli v. East India Co. (y), a ship had been chartered to one Groooh, on hehalf of himself and one Sivrao, who was appointed master of her for the voyage. The freight was at a certain rate per ton for the voyage, payable partly on sailing out- wards, and the remainder on delivery of the homeward cargo. The outward cargo shipped by the charterers was consigned to Colvins & Co., at Calcutta, as agents for Bazett & Co., merchants in London, who had made advances to the charterers. The ship also was consigned to Colvins & Co., and they had notice of the charter party. At Calcutta, Sivrac gave up the command of the ship, and Colvins & Co. concurred with him in appointing another master. They put her up as a general ship, and a homeward cargo was shipped by various merchants, from whom bills of exchange were taken for the freight, made payable to Bazett & Co. after delivery of the goods. And biUs of ladiag for these shipments were signed by the master, making them deliverable on payment of freight " agreeable to freight bUl." This was contrary to the instructions which had been given by the shipowner io Sivrac. Colvins & Co. also shipped some goods which they bought on account of the charterers, and, by arrangement, consigned them under bills of lading to Bazett & Co., to whom the charterers were still indebted. voyage, or are sold, before delivery, to a stranger ; or, in other words, the extent of the shipowner's lien remains un- altered, whether the bill of lading is indorsed to a third person for a valu- able consideration, or the ^goods are deliverable to the original consignee. And upon the same principle it would seem to follow that if the lading of the ship belongs to the charterer, and such lading is subject to the shipowner's lien for the freight, reserved by the charter party, such lading, if it be sold by the charterer after it is put on board, would pass to the purchaser, subject to the Ken which theshipowner had before the sale." (This passage does not seem to be in accord with the later decisions.) " It has been urged in argument, that this con- struction throws a considerable hardship on Boyd, Beeby & Co., who acted in ignorance of the existence of any charter party, or of the reservations thereof. But it seems a sufficient answer, that a very little inquiry on their part would have been sufficient to enable them to discover the rights of the shipowner reserved by the charter party. It wa« surely no more than what common attention to their own interest required, to make some inquiry as to the terms on which the master's goods were to be carried, before they advanced money on the security of the goods : more particularly when the very form of the bill of lading, signed by Wilkinson as master, by which he appears to be also the shipper of the goods, and to make them deliverable to his own order on payment of certain freight, was calculated to provoke some inquiry as to the exact relation in which Wilkinson stood with respect to the ship." {y) 4 B. & A. 630. Cf. Campion v. Colvin, 3 Bing. N. 0. 17. LIENS FOR FREIGHT, ETC. 773 On the ship's arrival, the shipowner claimed liens on the goods Sect. 674. shipped hy the other merchants for the freights payable in respect of these goods ; and upon what had heen shipped by Colvins & Co. for the whole charter party freight remaining unpaid. He was held entitled to these liens (s). In Eeynolds v. Jex (a), the ship was chartered for a voyage out to Shanghai and home, at a lump freight of 3,000^. : payable 1,500/. on discharge of the outward cargo, and 1,500/. on discharge of the return cargo. Bills of lading were to be signed at any rate of freight without prejudice to the charter. At Shanghai the master, requiring funds, obtained an advance on account of the charter party from the charterer's agents there, upon the condi- tion that the ship should take home certain cargo shipped by them under bills of lading making the freight payable to their agents at the port of discharge. Accordingly bills of lading were given by the master in that manner, making the freight payable to the plaintiffs at Liverpool. These bills of lading were sent to the plaintiffs, together with the charter party ; and on arrival they claimed to have the goods free of freight, on the ground that that was payable to themselves. The amount of freight due on the bills of lading was 981/. 9s. The balance of the charter party freight, after deducting the advance, was 1,040/. lis. 9d. It was held that the shipowner still had a lien on the cargo for the balance of the charter freight. The master had no autliority to (z) Abbott, 0. J., said: "Bytbevery witb tbe terms of tbe original cbarter terms of this cbarter party, tbe freigbt party) can be allowed to bave effect, so was to be paid on tbe deUyery of tbe as to deprive tbe owner of bis lien. If goods. Then the question is, whether it could succeed, a gross fraud, as it Gooch can, by a collusive bargain with seems to me, would be practised. Colvins & Co. and other tliird persons, ***** permit them so to ship goods as to I think, therefore, that the owner of the deprive the owner of his lien. It is ship was entitled to » lien upon the not necessary to decide what effect the goods put on board by the different payment of the freigbt, if made before shippers abroad^ to the extent of the tbe goods were laden on board in the freight due upon each of those consign- East Indies, would have had. If such ments. The goods purchased by Col- an event had happened, which, however, vins & Co., for Gooch and Sivrac, are in is not very probable, perhaps the a different situation. I am of opinion owners' lien for freigbt might have that, as between these parties, those are ' been thereby defeated. But in this case to be considered as the goods of Gooch the freight has not so been paid, and the and Sivrac, and in that case they are only question is, whether this bargain liable to the lien of the owner of the to receive the freight by freight biUs ship to the full extent of the freight due made between Gooch and Sivrac and on the charter party." Colvins & Co. (the latter being acquainted (a) 34 L. J., Q. B. 251 ; 7B.&S-.8&. 774 THE DELIVERY. Sect. 674. give bills of lading which made the freight payable to third per- sons, and thus give up the owner's lien. In The Canada (&) the master had, without authority, signed a bill of lading for goods, making the freight on them payable at the port of loading, where it was received by the charterer. Sir F. Jeune held that the shipowners were entitled to a Ken for the amount of freight named ia the biU of lading ; the charter freight being unpaid. Summary. 675. The general result seems to be, that where the master or agent of the shipowner gives a bill of lading which does not so incorporate the terms of the charter party as to make the liens given by the charter party — whether for freight, dead freight, or demurrage — part of the bill of lading contract, then those liens cannot be maintained, (1) As against strangers to the charter party who have shipped under the bill of lading ; or (2) As against assignees for value of the bill of lading, whether from the charterers, or from strangers to the charter party ; even though they had notice of the existence of the charter party ; unless the master had not authority to give the bill of lading, and they had notice of that ; or unless they were put upon inquiry, and that would have shown the absence of authority. Are the 676. But where the shipper of goods in a chartered vessel ships ikns'vaUd'^'^ Under a contract with the charterer only, and obtains no bill of against goods lading or undertaking at all from the shipowner or his aarents, the shipped under ° ... . r> > agreement right of the latter to majntam the liens given by the charter party terer? " against those goods would appear to be unqualified. In Paul v. Birch (c), however, Lord Hardwicke held that,' though- the char- terers could bind the goods for the freight agreed to be paid upon them, they could not bind them to answer the charter freight. The facts of that case are not very distinctly reported ; but the shipping- agreement appears to have been made with the charterers; and no bill of lading is mentioned. It would seem that if the shipper knew he was dealing with the charterer of the ship, and not with the owner, he would impliedly authorize the charterer to subject the goods to the terms of the charter party. And, even when the shipper has no such notice, it may be that by omitting to (J) 13 T. L. R. 238 ; sup>-a, s. 161. (c) 2 At£ 621. LIENS FOR FREIGHT, ETC. 775 require a bill of lading from the master, or other agent of the ship, Sect. 676. he would he precluded from saying that he had not authorized the charterer to ship under the charter party (d) . Charterers sometimes fill up the ship with goods of other persons, to whom they give bills of lading or other acknowledgments ; they themselves taking bills of lading from the master for the whole cargo. If goods so shipped do not become bound by the charter party Hens, a great opportunity for fraud on the shipowner seems to be open. The shipper in such a case might have protected him- self by requiring a bill of lading from the master, and might have refused to take one which incorporated the terms of the charter party, if he had not previously agreed to come under those terms [e) . But the master may well have been unable to distinguish the goods of. such a shipper from those of the charterer ; and so have been unable to protect the shipowner. In The Stornoway (/), a vessel which worked as a regular trader between Lowestoft and London had been chartered by her owners to Thompson & Co. at a certain rate per month ; and the charter provided that the owners should have a lien on the cargo and fi-eight for arrears of the hire. The owners paid the master and crew, and apparently worked the ship; but Thompson & Co. advertised her in their own names. The plaintifE shipped goods in her at Lowestoft, for London, in ignorance of the charter party, under an arrangement he had before made with the master that his goods should be earned at a certain rate of freight. He did not receive any bill of lading; but the agent of the steamer at Lowestoft (Thompson & Co.'s clerk) gave him a receipt for the goods. On arrival at London the goods were detained by the owners for arrears of the hire under the charter party, Thompson & Co. having failed. Sir E. Phillimore held that their claim to a Hen could not be sustained. In Tharsis Sulphur and Copper Mining Co. v. Culliford(£r), a ship had been chartered to Malcolm & Co. for twelve months at a certain sum per month, the owner to have a lien on the cargo and freight for arrears of hire. Malcolm & Co. sub-chartered the vessel to the plaintiffs for a voyage to Spain, and she proceeded there and took on board a cargo from them. After it had been put IA\ r* -™ 13 _ V T /-ii, • !• («! Peek v. Larsen, L. E., 12 Eq. 378. («) Ct. per Burrough, J., Chnstie «;. M, ,,t t a ^ «» T . -.^ _ \J) 41 1j. J., Ad. 27. Lewis,2B.&B.p.441. (^ 22 W. R. 46. 776 THE DELIVEEY. Sect. 676. on board the captain required that the hills of lading should contain a stipulation for payment of freight as per the original charter, and that was inserted under protest. It was held that the owner was not entitled to a lien on the cargo for the arrears of hire under that charter. The goods had been taken on board under the sub-charter, and after that it was too late to insist on the terms of the other. ^at'keT'' ® ''"''■ ^^ order to maintain his lien the shipowner must keep pos- possession of session of the goods, either ia his own hands or in the hands of his goods. __^ ^ _ , agents. Even if he parts with them to another who acts on his instructions, but in such a way as to give the right of possession to that other, as against himself, the lien will be terminated. Thus it is competent to the master to land the goods, and still preserve the lien, by placiag them in a warehouse over which he, or the agent of the ship, has exclusive control. But if he puts them into the warehouse of an independent person, who thereby acquires an independent Hen for warehousing charges, it seems that the ship- owner's lien is lost; even though the warehouseman undertakes not to deliver to the consignee without being paid the freight (h) . It has been held by the Court of Appeal in New York, that where the shipowner warehouses the goods in the warehouse of a stranger, contrary to the contract, he thereby puts an end to his lien for freight. But that where the consignee is in default, in not receiving the goods, the shipowner may store them, either in his own warehouse or in his own name in the warehouse of a stranger, without losing his lien. The creation of a further lien for ware- house charges, made necessary in such a case by the default of the owner of the goods, was held not to affect the shipowner's lien (i). Where the shipowner is required by law to land and warehouse the goods in a particular place, the lien will continue while they are so deposited. As they are taken out of his hands by operation of law, the law preserves the charge for him (k). Also, as we have seen {I), a shipowner is able, under the Mer- chant Shipping Act, 1894, in ports of the United Kingdom, to land goods and warehouse them subject to a stop for freight, which takes the place of his lien, {h) See Mors le Blanch v. Wilson, (m -Wilson v. Kymer, 1 M. & S. 157, L. B., 8 0. P. 227. at p. 163. (i) Western Transp. Co. v. Barber, 66 N. y. Hi (1874). W S. 475. LIENS FOR FREIGHT, ETC. 777 678. If the goods have been merely placed in warehouse pending Sect. 678. a delivery to the consignee, even though the lien may be for the Lien may in time lost, it seems that it will revive and re-attach upon the ship- revive°on^ owner's retaking possession of the goods (m). regaining possession* But that is not so when the goods have been parted with, with the intention of making delivery to their owner ; or of finally parting with the control over them (»). Unless, indeed, they were obtained from the shipowner by fraud (o) . 679. The shipowner may lose his lien by conduct which is in- Lien may be consistent with its continuance {p). For example, by taking a bill sistent oon- of exchange for the freight, payable at a future date {q) . "Where "^^ ' the freight was payable by good and approved bills, and objection was taken by the shipowners to one of the bills given, still the lien was lost upon their negotiating the bill objected to (»•). Abbott, 0. J., said he considered the negotiation amounted to approbation of the bill. If, however, the bill be dishonoured at maturity, before the goods have been delivered, the lien will, it seems, revive (s). In the same way the lien is lost if the shipowner causes the goods to be taken in execution and sold at his own suit it). He thereby gives up possession to the sheriff. Or, again, it may be waived, and lost, by the shipowner claiming to retain the goods upon some different ground, and not under the Ken («<). 680. When the shipowner claims to detain the goods on the Tender may ground that he has a lien on thena for more than the freight, e. g., for dead freight also,' the consignee is not relieved from the neces- sity of paying the freight before being entitled to the goods, although that further lien maybe claimed improperly («). He ought, therefore, to tender the freight. But the need for this tender may be waived. If the shipowner's conduct is such as to show that a tender of the freight alone would {m) See Levy v. Barnard, 8 Taun. 149 ; 497 ; Bunney v. Poyntz, 4 B. & Ad. 568. Guuu V. Bolokow, L. R., 10 Ch. 491. (s) Gunn v. Bolokow, L. R., 10 Ch. («) Sweet V. Pym, 1 East, 4 ; Hartley 491 ; Byles on Bills (ISth), p. 392 ; V. Hitohooofc, 1 Stark. 408. Benj. on Sale (3rd), p. 813. (o) Wallace v. Woodgate, R. & M. [t] Jacobs v. Latour, 5 Bing. 130. 193. (m) Boardman ». Sill, 1 Camp. 409, n ; {p) See Fisher on Mortgages (4th), Dirks v. Richards, Car. & M. 626. But S3. 1314—1316. see White v. Gainer, 2 Bing. 23. (q) Hewison v. Guthrie, 2 Bing. N. C. [x] Soarfe v. Morgan, 4 M. & W. 270 ; 755 ; Byles on Bills (13th), p. 391. Allen v. Smith, 31 L. J., C. P. 306. Cf. (r) Homcastle v. Farran, 3 B. & A. Ashmole v. Wainwright, 2 Q. B. 837. 778 THE DELIVERY. Sect. 680. Lien for charter freight not lost by de- Kvering and oalleoting freight under bOls of lading. Effect of lien where per- formance of the contract becomes impossible. be insufficient, tlie rigM of tte cargo owner to sue him for conversion and detention is complete thougli no tender has been made {y). And that may bo so, although it may appear that the consignee was not willing to pay all the sums for which the owner was law- fully entitled to a lien on the goods. Thus in The Norway (z) the master had claimed too much freight, while the owners of the cargo sought, without justification, to deduct certain claims from the freight ; yet it was held that they might recover damages against the shipowner for not delivering, without having tendered what was due, on the ground that the demand of the master was so made, as to amount to an announcement that it would be useless to tender any smaller sum. Dr. Lushington further laid it down in that case (a) that the master ought to produce all papers necessary to enable the con- signee to calculate the amount to be tendered; and that if this be not done the consignee is not to be prejudiced by a failure to tender. 681. In Christie v. Lewis (b), it was held that the owner's lien for the charter party freight, as against the charterer, was not lost upon his delivering the cargo to the consignees under the bills of lading which had been given for it. The owner had collected the freights reserved by the bills of lading from the consignees, and it was held that he was entitled to retain those monies towards pay- ment of the charter freight. 682. The question whether the shipowner's lien for the freight is terminated upon the contract becoming impossible of perform- ance has been very little considered in our Courts. It seems clear that under some circumstances that must be so ; for instance, where the ship has been wrecked, and the shipowner has no means, or no intention, of carrying the cargo on to its destination (c). On the other hand, the mere fact that the exact performance of the contract has for the time become impossible wHl not put an end to the lien, if another mode of substantially performing the contract is open to the parties. And if the shipowner tranships the goods, (b) The Norway, 12 L. T. at p. 61. (b) 2 B. & B. 410. [y) The Norway, 12 L. T. 57 ; 13 L. T. 50 ; Kerford v. Mondel, 28 L. J., Ex. 303 ; Jones v. Tarleton, 9 M. & W. 675. (s) 12L.T.57; 13L. T. 50. Cf.The Euergie, L. E., 6 P. 0. 306. [c) Nelson v. Association for the Pro- tection of Commercial Interests, 43 L. J., C. P. ■218. LIENS FOE PEEIGHT, ETC. 779 he may perhaps exercise the lien through, or transfer it to, the Sect. 683. owner of the other ship (d). In The Teutonia (c), a Prussian vessel under charter had been ordered by the charterer to discharge at Dunkirk; but war had broken out between France and Germany after the order was given, ' and it thus became illegal, and practically impossible, for her to go there. She was therefore taken to Dover. Eut the master refused to deliver the cargo to the charterers at that place unless they paid the freight. The charter party provided that the discharge might be at any safe port in Great Britain, or on the Continent between Havre and Hamburg. It was held that the contract was not dissolved by the impossibility of delivering the cargo at Dunkirk, and that the shipowner had not lost his chartered freight, nor his lien for it. 683. The general rule of law is, that one who has a lien on Expenses of goods, and incurs expenses in keeping them in order to preserve Hen not°^ that lien, is not entitled to claim those expenses from the owner of recoverable, the goods (/). So that a shipowner is not necessarily entitled to charge the consignee of goods with the warehousing charges, or other expenses he may have incurred in preserving his lien. But where goods are in a bailee's hands, under a contract which requires the bailor to pay for the place in which they are lodged according to the time they remain there, it seems that the bailee may charge for the whole time during which the goods remain, although that may be prolonged by his claims to a lien for charges under the contract (g') . And thus it would seem that where a shipowner reasonably keeps cargo on board to preserve his lien for freight, &c., he may claim demurrage during the detention ; or time-freight, where the ship is under a time-charter (A). (<^ See per Cookbum, 0. J., in Mat- These bad been done under a contract thews V. Gibbs, 30 L. J., Q. B,, 65, for a lump sum. No grounds for in- p. 63. ferring' a contract to pay dock rent (e) L. E., 4 P. C. 171 ; affirming, could be found. L. E., 3 A. & E. 39i; cited supra, (A) In MbUer v. Young, (24 L. J., s. 240. Q. B. 217 ; reversed on another point, (/) Somes «. Britith Empire Shipping 25 L. J., Q. B. 94), the Q. B. allowed Co., 27 L. J., Q. B. 397; 28 L. J., damages for detention during the exer- Q. B. 220 ; 8 H. L. 0. 338. cise of a lien for freight. In Thorsen?;. (?) See Eex v. Humphrey, M'Clee. & McDowaU (19 Sess. Ca. (4th), 743), the T. 173. In Somes' case, supra, the discharge was stopped for the purpose of claim was by a shipwright for dock rent enforcing payment of freight under a during a detention by him of the ship, lien given by the charter party, but the under a lien for the price of the repairs. freight was payable " after unloading." 780 THE DELIVEEY. Sect. 683. Further, the consignee is bound by the contract to take delivery Except as in the agreed time, or with reasonable diligence, as the ease may be; and if the expenses of taking care of the cargo have been incurred owing to a failure on his part to do this, he is liable to repay them as damages for his breach («). Those damages must, however, be only such as the shipowner was reasonably compelled to incur : he is not justified in detaining the ship in order to use her as a warehouse for the goods, when he might have landed and warehoused them {]{). Bills of lading often contain express clauses empowering the master to land the goods at the consignee's risk and expense, in case of his default in taking delivery. It has been held that such a power is only in aid of the shipowner, and that the master is not bound to exercise it {I). But if the shipowner is claiming damages, the fact that he was empowered to act in such a way as would mitigate the loss may be material. Demurrage was disallowed because the 227. The discussion in tiie last case lien was claimed improperly. In the showed, negatively, that the right to U. S. it has been held that demurrage claim for detention is not necessarily at cannot be claimed during enforcement an end when the cargo is kept on board of the lien unless timely notice has been to preserve a lien. The jury had been given, so as to enable the charterer to apparently influenced by a direction of findsecurity; TenThousand and Eighty- the judge, that the shipowner would two Oak Ties, 87 Fed. Eep. 935. have lost his lien if he had landed the (j) Houlder v. General Steam Nav. cargo. The Court discussed the accuracy Co., 3 F. & F. 170 ; G-. N. EaU. Co. v. of this direction ; but appear to have Swaffleld, L.E., 9Ex. 132. Cf. Stewart assumed that the retention of the lieu V. Eogerson, L. E., 6 C. P. 424. was a matter which might be taken into [k) Per Crompton, J., Eriohsen f. account. Barkworth, 28 L. J., Ex. 95, p. 96; (?) Per Lindley, L. J., in Hick v. Mors le Blanch v. Wilson, L. R., 8 C. P. Eodooanaohi, (1891) 2 Q. B. at p. 632. CHAPTER XIX. REMEDIES OF FREIGHTERS — IN REM AGAINST THE SHIP — AGAINST COLLIDING SHIPS. 781 Remedies in rem. BEOT. Meaning of action in rem 684 Admiralty Court Act, 1861, s. 6 . . 685 Applies where goods have or should hare been brought into an English port by the vessel pro- ceeded against 686 The port may be a port of call only — Or a port of refuge 687 The breach must relate to goods which were or should have been carried into the port 688 Damage to the goods not necessary — Breach of contract of Carriage not necessary 689 Who may sue ? — Claims under con- tract 690 Claims for breach of duty, apart from contract 691 County Courts Adm. Jur. Acts, 1868 and 1869 692 Jurisdiction under, how far limited to that of High Court of Admi- ralty 693 Jurisdiction under Act of 1869 not BO limited — Shipowner may pro- ceed against cargo 694 Effect of sect. 2 of Act of 1869 695 Can the ship be proceeded against where owner not personally liable ? 696 Jurisdiction in rem exercised over foreign ships — ^Foreign judg- ments in rem enforced 697 SECT. Proceeding in rem originally based on maritime lien — Nature of maritime lien 698 Maritime lieu not generally con- ferred by statutes giving remedy in rem 699 The charge given by the proceed- ing in rem takes effect from the arrest 700 Remedy only available so far as property continues that of person liable 701 Collisions. Actions for wrongs — Underwriters entitled to benefit 702 Collisions 703 Where both ships to blame — ^Eule of half-damages 704 Claim against carrier not affected — Exceptions protect carrier against claims in tort — Where both ships belong to same owner. 705 Proceedings may generally be in rem 706 Not unless owner or person in control liable 707 Jurisdiction exercised over foreign ships 708 . Liability of foreign ships, by what law determined 709 Where collision has occurred within a foreign jurisdiction 710 Remedies in rem. 684. In addition to the. ordinary rights of personal action for Meaning, of breaches of the contract of carriage, or for wrongful acts done *°*'°'' '" ''""• 782 THE DELIVERY. Sect. 684. against the goods, freighters and shipowners may also, in certain cases, enforce their claims by proceeding in rem against the property of the other party. Ey means of this remedy the person suing can at once obtain the property proceeded against as security for the claim, before that has actually been established and'judgment obtained. The juris- diction to enforce claims in this manner lies in the Probate, Divorce and Admiralty Division of the High Court of Justice («), and in certain county courts, and other inferior courts, which have Admiralty jurisdiction. The procedure will be found discussed in works on Admiralty Practice (6). Briefly, the claimant is enabled to arrest the ship or other property, and to have it detained in the custody of officers of the law, until his claim has been adjudicated upon, or until security by bail has been given for the amount, or for the value of the property proceeded against, where that is less than the amount of the claim. " The aiTest enables the Court to keep the property as security to answer the judgment, and unailected by chance events which may happen between the arrest and the judgment" (c). It concerns us here more especially to point out in what cases this remedy is open to freighters, and in what cases they are left to the ordinary remedies, by jtidgment in personam and execution. Where there is a remedy in rem as well as in personam the claimant may resort to either in the first instance, and, if not thereby fully satisfied, may afterwards resort to the other (d). And where pro- ceedings have been taken in rem the Court can enforce judgment, against a defendant who appears, for an amount exceeding the value of the res, or the bail which represents it, if that defendant is personally liable for the excess (e) . Admiralty 685. This jurisdiction of Courts of Admiralty in rem, in matters 1861^B e!' arising out of contracts for the carriage of goods, depends upon recent statutes (/). (ffl) Jud. Act, 1873, ss. 16, 34. The JoLn and Mary, Swa. 471. And (i) "Will. & Bruce, Adm. Pr., Part II. per Sir J. Hannen in The CeUa, 13 Chap. I. ; Eosooe, Adm., Part II. P. D. 82, p. 85. (c) Per Fry, L. J., in The Cella, 13 («) The Dictator, (1892) P. 304 ; The P. D. 82, p. 88. The property is held Gemma, (1899) P. 285. for all creditors of the same clasa who (/) See the history of the jurisdiction assert their claims in time; TheAfricano, of the Admiralty Court given in Will. (1894) P. 141. & Bruce, Adm. Pr., Introd. ; and per {d) The Orient, L. R., 3 P. C. 696, Dr. Lushington in The Ironflides, 31 p. 702 ; The Zephyr, 11 L. T. 351 ; L. J., Ad. 129, p. 131. REMEDIES IN REM. 783 By the Admiralty Coui-t Act, 1861, sect. 6, it was enacted Sect. 685. that : — "The High Court of Admiralty shall have jurisdiction over any claim by the owner or consignee or assignee of any hill of lading of any goods carried into any port in England or Wales, in any ship (g), for damage done to the goods, or any part thereof, by the negKgence or misconduct of, or for any breach of duty or breach of contract on the part of, the owner, master or crew of the ship, unless it is shown to the satisfaction of the Court that at the time of the institution of the cause any owner or part owner is domiciled (h) in England or Wales : provided always, that if in any such cause the plaintiff do not recover 20f. he shall not be entitled to any costs, charges or expenses incurred by him therein, unless the judge shall certify that the cause was a fit one to be tried in the said Court." And by sect. 35, " The jurisdiction conferred by this Act on the High Court of Admiralty may be exercised either by proceed- ings in rem, or by proceedings in personam." The object of the enactment was thus described by Dr. Lushing- ton: "The statute is remedial. The short delivery of goods brought to this country in foreign ships, or their delivery in a damaged state, the goods being the property of British merchants, was frequently a grievance — an injury without any practical remedy ; for the owners of such vessels being resident abroad, no action could successfully be brought in a British tribunal, and to send the British merchant, who had sustained a loss, to commence a suit before a foreign tribunal, and probably in a distant country, could not be deemed a practical and effectual remedy. And this enactment, therefore, was intended to operate by enabling the party aggrieved to have recourse to the arrest of the ship bringing goods delivered short, or damaged, in cases where, from the absence of the defendant in foreign parts, the common lawtribunals could not afford effectual redress " («). 686. That the Court may have jurisdiction under the Act it is Applies where essential that the goods in respect of which the claim is made, or fhould have°'^ some of them, shall have been brought into a port of England or JXan'""^^* Wales in the ship which is proceeded against, or that there shall English port have been a breach of contract or duty in not bringing them in proceeded a,gaiast. (?) By sect. 2, " ship " includes "any (A) The Pacific, 10 L. T. 641. description of vessel used in nayigation (i) The St. Cloud, 8 L. T. 54, at not propelled by oars." p. 55, 784 THE DELIVERY. Sect. e86. her. So that if the goods have been properly transhipped after being damaged, and brought to their destination in another ship, the original ship cannot be arrested on coming within the jurisdic- tion, although the owner may be liable for the damage {j). " I am of opinion that the jurisdiction conferred upon this Court is confined to the arrest of the ship which brings any goods into any port in England or "Wales, and that to found such jurisdiction the ship itself proceeded against must have brought some part of the cargo into a port of England or Wales. I think to authorize the Court to make any vessel responsible for damage of this kind, the plaintiff must be the owner, consignee, or assignee of a bill of lading of some goods carried into a port of England or Wales in some particular ship when the damage has been done by the owner, master, or crew of the same ship. The ship means the particular ship " {k). But it is enough that some of the goods comprised in the bill of lading have been brought into the port. Thus, the Court can entertain a claim for the non-delivery of goods which ought to have been, but were not, brought in (/). And Dr. Lushington appears to have held that whenever the ship in which the goods were agreed to be carried, and on which they were shipped, reaches an English port, the jurisdiction attaches ; unless the goods have been transhipped (m). The port may 687. The " port of England or Wales " into which' the goods are call only. carried need not be the intended port of discharge. It is, at any rate, sufficient if it was an intended port of call ; although the dis- charge may afterwards take place abroad. " Cases must frequently arise at ports of call and intermediate ports, giving occasion for the remedy it was intended to afford to English merchants against foreign shipowners, by proceedings in the English Court of Admiralty. Besides the instances where causes of action have arisen before the arrival of the ship at such ports, take the cases of damage done to goods, or of unjustifiable delay, in the port of call itself ; or the case of a ship bound, without calling for orders, to go direct to London to discharge her cargo, and the master improperly putting into some other English port, and refusing to take the cargo on. Instances of this kind would [f] The Ironsides, 31 L. J., Ad. 129. [T) The Danzig, 32 L. J., Ad. 16i ; (k) Per Dr. Lushington, The Iron- The Emilien Marie, 32 L. T. 435. 31 L. J., Ad. 129, p. 132. («?) The Danzig, supra. REMEDIES m REM. 78^ certainly be within the scope of the mischief intended to he dealt Sect. 687. with ; and their Lordships are reluctant in construing the Act so to interpret words, large enough in their ordinary meaning to embrace such cases, as to exclude them from its operation, and thus leave foreign masters who may have broken their contracts free to take away their ships from this country in the sight of English consignees, who would be powerless, as they were before the Act, to stop them In this case the parties contemplated that the goods would, or at least might, be carried into and delivered in an English port, and the biU of lading signed by the master at Eangoon, iu pursuance of a charter party made in London, so pro- vided. The master ia fact put into the port" of Falmouth for orders, in part fulfilment of the contract of carriage, and might, in further fulfilment of it, have been ordered to discharge there, or at some other English port. Their Lordships think that under these cir- cumstances the jurisdiction, at least in respect of then existing causes of suit, arose when the goods were so carried in the port of Fahnouth, and was not taken away when the ship was subsequently ordered to a foreign port to be discharged " (w). If the jurisdiction has once attached it continues, and may be exercised, after the ship has left the port, if she again comes within reach of the process of the Court (o). Further, the Court may have jurisdiction although it was not Or a port of contemplated that the vessel would put into any English port. In ^^ "^^' The Bahia (p), the voyage was from New Tork to Dunkirk, in France; and the ship was French. Owing to damage sustained on the voyage she put into Eamsgate ; and as it was found that the cost of repair would exceed the value of the ship, the master sought to abandon to the underwriters ; the cargo was discharged and warehoused, and a dispute arose as to the freight to be paid. Dr. Lushington said : " Here, then, is a cargo originally destined to be imported into the port of Dunkirk ; in consequence of acci- dent the ship puts into the port of Ramsgate, and the master refuses to carry on the cargo to Dunkirk or to give delivery at Eamsgate. That this is a great grievance cannot be denied, and the Court ought to give, if necessary, great latitude to the con- struction of the Act of Parliament, in order to extend the remedy to this case. However, it appears to me that this section was care- (») The Pieve Superiore, L. E., 6 (o) The Pieve Superiore, supra. P. C. 482, at pp. 490, 491. {pj Br. &; L. 38 ; 12 L. T. 146. C. — C. 3 E 786 THE DELIVEKY. Sect. 687. fully ■worded to give the utmost jurisdiction in the matter. It uses the words ' carried into any port in England,' and does not use the word ' import.' I apprehend the phrase ' carried into ' was advisedly used instead of the word ' import.' Then it goes on, ' or for any breach of duty or breach of contract.' Here there is a clear breach of contract and breach of duty. I am of opinion that without any violence of construction the statute applies to this case" {q). And the same has been held where the ship has put into an English port for safety, and has failed to proceed to her foreign port of discharge (/-). The breach 688. The Act does not give jurisdiction to the Admiralty Court goods which in regard to breaches of contract or duty which do not relate to the should'have goo^s which were, or which ought to have been, carried into the been carried Eufflish port. So that where a vessel had been chartered to take a mto the port. o j. cargo of coals outward from OardiS to Havilan, and thence to pro- ceed to Moulmein, and bring home a cargo of timber on account of the charterers. Dr. Lushiagton held that the Court had no juris- diction in respect of a claim for the non- delivery of some of the coals at Havilan (s) . In The Dannebrog {t) the claim was by the charterer for damages for the failure of the ship to proceed to the agreed loading place, abroad, where she was to have taken in a cargo for England ; in consequence of which default extra expense and delay were incurred by the charterer in loading her. Sir El. PhiUimore said : " It cannot be denied that some limita- tion, some reasonable limitation, must be placed on the meaning of the words ' breach of contract.' It cannot be that the legislature intended the Court to exercise jurisdiction over every breach of contract on the part of the owners, master, or crew of a ship. The Court has now to decide whether the provisions of the section in- clude a case in which the breach of contract was committed before the goods were put on board. I have already said, I feel great difficulty in arriving at a satisfactory decision upon the construction of the statute, but I do not think that the statute can relate to such a case as that now before the Court " (m). ((/) Br.&L.atp.62. Cf. The Princess Ad. 97. Eoyal, L. E., 3 A. & E. 41. (i!) L. R., 4 A. & E. 386. ()•) The Patria, L. E., 3 A. & E. 436 ; {«) L. E., 4 A. & E. 389. Cf. The The Teutonia, L. E., 4 P. C. 171. Felix, L. E., 2 A. & E. 273 ; The Santa (s) The Kasan, Br. & L. 1 ; 32 L. J., Anna, 32 L. J., Ad. 198. REMEDIES IN REM. 787 689. It is not, however, necessary that there should have been Sect. 689. actual damage to the goods, in order to found the jurisdiction. Damage to In The Princess Eoyal («), the cargo, of timher, was shipped at neoeasary.'^" Elsinore for West Hartlepool. The claim of the assignees of the bill of lading was for damages, on the ground that the crew had wrongfully injured and abandoned the ship on the voyage ; that she had been picked up as derelict by salvors, who brought her into Middlesborough, in consequence of which salvage had become payable ; and that the cargo was never delivered in accordance with the bill of lading. Sir E. PhUlimore held that he had jurisdiction to deal with the claim, although there was no allegation of damage to the cargo itself. Nor, it would seem, need the breach of duty be a breach of the Breach of contract of carriage. It was held in The Tigress {y) that an unpaid carriage not vendor (on whose order the shipment was made), who had right- '^^"^^s*"'?'' fully attempted to stop the goods in transit, might proceed against the ship, under the Act, for damages for a refusal by the master to deUver the cargo to him. Dr. Lushington said : " This action, therefore, is sustainable if it charge a breach of duty or of contract; and if it shall appear eventually that the master was bound to deliver the goods, as claimed by Messrs. Lucy, I should hold the refusing so to do was a breach of duty, and a good cause of action against the ship under this statute " (s). 690. It would seem that the Act does not enable the Court of Who may Admiralty to entertain a claim "for a breach of the contract of carriage, unless the party suing has himself a right to complain of the breach. Sect. 6 enables any " consignee or assignee of any bill of lading " to sue, but only in respect of claims which he would have apart from that Act. It does not purport to give new rights of action, but only a new form of remedy. If, then, the claim made is under the contract in the biU of lading. Claims under , . T . 1 1 , j_i • 1 J. i! -J. contract. the consignee or assignee must be entitled to the rights oi suit under that contract ; either as an original contracting party, or by virtue of the Bills of Lading Act, 1855. There has, however, been some difference of opinion on this point. • Dr. Lushington discussed the matter in The St. Cloud (a), and decided that a bare assignee of the biU of lading, to whom the pro- {«) L. R., 3 A. & E. 41. (2) 32 L. J., Ad. p. 100. {«) 8 L. T. S4. 3e2 788 • THE DELIVERY, Sect. 690. perty in the goods has not passed, is not enabled to sue on the contract. He said : " The 6th section declares that the Court shall have jurisdiction over any claim by the owner, consignee, or assignee of the goods ; but it does not enact that there shall be a right of action in all cases by the assignee. I think that in aU probability the true construction of the words ' any claim' must be held to be any claim lawfully existing at the time of the passing of the Act"(&). The same view appears to have been taken by the Privy Council in The Freedom (e). Sir J. Napier, in delivering the judgment, said : " By this section a new remedy has been given to those who have a right of suit ia any of the cases specified." On the other hand. Sir E. Phillimore took a different view. In The Nepoter {d), the claim was for damage to goods by leakage from other parts of the cargo, and it was found that certain needful precautions to prevent the accumulation of this leakage had not been taken by the master. The point was taken for the defence that the consignees named in the bill of lading, who were suing, were not persons to whom the property ia the goods had passed. But Sir E. Phillimore held that that was not a valid objection. He considered that, for the protection of absent owners, it was " intended to give every consignee or assignee of a bOl of lading a capacity to sue in this Court for damage done to the goods men- tioned in the bill." And in Sewell v. Burdick (e), in the House of Lords, conflicting opinions were expressed. Lord Selborne (/) agreed with the view that the Admiralty Court Act only gave jurisdiction where " there was, independently of that statute, a right of action or suit." But Lord Blackburn [g) considered it to be " contrary to all rules 6f construction to interpolate any reference to the BiU of Lading Act into the Admiralty Act" ; and thought that the latter Act might be satisfied if the consignee or assignee had a property in the goods. Claims for 691. Where, however, the claim made is for a breach of duty in dut''°'a°Lt relation to the goods, independent of the contract, the right to sue from contract, under the Admiralty Court Act, 1861, does not depend upon pos- (J) 8 L. T. p. 56. («) 10 A. 0. 74. {c) L. E., 3 P. C. 694, at p. 598. ^ n in A r ,t „ R« (A) L. E., 2 A. & E. 375. Cf. The ^^^ ^^ ^^ ^- "* P" *^- I-elix, L. K., 2 A. & E. 273. (?) 10 A. C. at p. 94. REMEDIES IN REM. 789 session of the bill of lading, or upon having the rights of suit Sect. 691. under the hill of lading. So that if a wrongful act for whioh the shipowner is answerahle has hfeen done in carrying or delivering the goods, hy which they have been damaged, or lost, any person who was beneficially interested in them may, it seems, sue in rem under the statute, whether he is the holder of the bill of lading or not (h) ; or, being the consignee or assignee of the bill of lading, whether his interest in. it, or in the goods, is absolute, or is a limited interest only («). Where such an act has been committed, any person who is damnifi,ed may sue for compensation, although his interest in the goods may be only limited (k), and although he may not be in any way privy to the contract of carriage (l). And, according to the construction which has been put upon the Act, the word "owner" in sect. 6 appears to include the owner of a special property, or of a partial interest in the goods, so as to entitle him to sue in rem. 692. This remedy by proceedings in rem against the ship has County ■L J 1 1 • J! m i T. J.1 Courts Admi- been made much more general m cases of small amount, by the ralty Juris- Oounty Courts Admiralty Jurisdiction Acts, 1868 and 1869. ^sesZd"*'' By sect. 3 of the Act of 1868 (m), isss- " Any county court having admiralty jurisdiction shall have juris- diction, and all powers and authorities relating thereto, to try and determine, subject and according to the provisions of this Act, the following causes (in this Act referred to as admiralty causes) : — " (1) As to any claim for salvage — any cause in which the value of the property saved does not exceed one thousand pounds, or in which the amount claimed does not exceed three hundred pounds ; " (2) As to any claim for towage, necessaries, or wages — any cause in. which the amount claimed does not exceed one hundred and fifty pounds ; " (3) As to any claim for damage to cargo, or damage by colli- sion (n) — any cause in which the amount claimed does not exceed three hundred pounds ; (A) The Tigress, 32 L. J., Ad. 97. (0 See per Bramwell, L. J., in Hayn V. CuUiford, 4 C. P. D. 182, at p. 185. (0 The Figlia Maggiore, L. E., 2 A. ^^j g^ ^ 32 yj^t ^ 71, & E. 106; The Nepoter, L. E., 2 A. & ^^j ^ ^-^^^ for damage done by «, ■ ' P' *''• ship striking an object on the shore is (A) TheThyatirarSP. D. 155; Infra, not included: Eobson v. The Kate, 21 «s. 702, 727. Q. B. D. 13. 790 THE DELIVERY, Sect. 692. " (4) Any cause in respect of any such claim or claims as aforesaid, but in which the value of the property saved or the amount claimed is beyond the amount limited as above mentioned, when the parties agree by a memorandum signed by them, or by their attorneys or agents, that any county court having admiralty jurisdiction, and specified in the memorandum, shaU have jurisdiction." These powers were extended by the Act of 1869 (o). By sect. 2 of that Act, " Any county court appointed, or to be appointed, to have admiralty jurisdiction shall have jurisdiction, and all powers and authorities relating thereto, to try and determine the following causes : — " (1) As to any claim arising out of any agreement made in relation to the use or hire of any ship, or in relation to the carriage of goods in any ship, and also as to any claim in tort in respect of goods carried in any ship, provided the amount claimed does not exceed three hundred pounds ; " (2) As to any cause in respect of any such claim or claims as afore- said, but in which the amount claimed is beyond the amount limited as above mentioned, when the parties agree, by a memorandum signed by them, or by their attorneys or agents, that any county court having admiralty jurisdiction, and specified in the memorandum, shall have jurisdiction." By sect. 3, " The jurisdiction conferred by this Act, and by the County Courts Admiralty Jurisdiction Act, 1868, may be exercised either by proceed- ings in rem, or by proceedings in personam." By sect. 4, "The third section of the County Courts Admiralty Jurisdiction Act, 1868, shall extend and apply to all claims for damage to ships, whether by collision or otherwise, when the amount claimed does not exceed three himdred pounds." The JTirisdiotion under these Acts is also possessed by the Liver- pool Court of Passage (p), and by the City of London Court {q). The Acts do not affect the ordinary jurisdiction, over matters which may be within the Acts, of those county courts on which admiralty jurisdiction has not been conferred (r). (o) 32 & 33 Vict. 0. 61. (r) E. v. Southend Comity Court, 13 {p) See sect. 25 of the Act of 1S68. q. b. D. 142 ; SooveU v. Sevan, 19 (j) By Order in Council issued under n B D 42S sect. 38 of the Jud. Act, 1873. H. . . REMEDIES IN REM. 791 693. The jurisdiction in rem of county courts, and other inferior Sect. 693. Courts, under the Act of 1868, has been decided to extend only to Jurisdiction cases in which the Court of Admiralty might exercise such a juris- "^r n^ted^to diction. The jurisdiction conferred was only a portion of that of !J"'* °* ^&^ ■^ . Court of the Court of Admiralty, and did not extend beyond that. Admiralty. So that, for example, it does not extend to an action against a ship for necessaries where the owner is domiciled in England, though the County Court Act imposes no such limitation ex- pressly is). On the other hand, it is now established, though after considerable controversy, that the admiralty jurisdiction of the county courts under the Act of 1869 is to some extent {£) independent of that of the Court of Admiralty, and extends to claims in which the latter Court would have no original jurisdiction. In Simpson v. Blues (m), the Court of Common Pleas prohibited a county court from proceeding in an action in rem against a ship, whose owner was domiciled in England, for short delivery of cargo under a charter party, on the ground that the Act of 1869 was not intended to give a jurisdiction in admiralty which the Court of Admiralty never possessed. And this was followed in Grunnestad V. Price (»), with regard to an action by the shipowner for freight and demurrage. But the view thus taken was dissented from by the Privy Council in the cases of The Cargo ex Argos, and The Hewsons {x). In the former of these the action was by the shipowner, in rem, for freight, demurrage, and expenses, against certain barrels of petroleum which had been shipped in his ship under a bill of lading. In the latter the action was in rem against the ship for breach of a charter party, in not completing an agreed series of voyages. The Judicial Committee decided, in both oases, that the Act of 1869 gave jurisdiction to the inferior courts; notvnthstanding the anomaly that the High Court of Admiralty could not have enter- tained those proceedings. Aad in The Alina («/) the Court of Appeal decided the matter in the same manner. A prohibition to a county court judge had («) AUen V. Garbutt, 6 Q. B. D. 165 ; {x) L. E., 5 P. 0. 134 (1873). The Dowse, L. R., 3 A. & E. 135; ,. g j,^_ jy 227 (1880). See also Everard v. Kendall, L. R., 5 C. P. 428. „ ' , „ , . „ ..„, „ ^ ^j , „ . (0 Cf. The Zeta, (1893) A. C. 468. ^"^sley v. Eopkms, (1892) 2 Q. B. 184 ; («) L. R., 7 C. P. 290 (1872). o*- ^^S- "• City <>* London Court, (1892) (») L. R., 10 Ex. 65 (1875). 1 Q. B. 273. im- THE DKLIVERY. Sect. 693. Jurisdiction under Act of 1869 not limited to that of the High Court. Shipowner may proceed against cargo. Effect of sect. 2 of Act of 1869. there been granted by a divisional court, against proceeding in an action for breach of a charter party, brought against a Russian ship. On appeal the Court of Appeal dissolved the prohibition. They considered that the supposed anomalies did not alter the fact that the Act in terms gave the jurisdiction. " It is said that because they say in these cases the Court shall have jurisdiction in rem, that is, to cut down the cases in vyhich jurisdiction is given. If it had been intended to have said merely that the county court shall have the jurisdiction of the Court of Admiralty, in those particular cases, it appears to me it would have said so in so many words ; that is to say, the Act being an Act to amend a former Act, and to give jurisdiction in certain maritime cases, the first section would have said that the Court should have such jurisdiction as the Court of Admiralty possesses in the follow- ing matters, and then the whole thing would have been made quite clear. It seems to me that the legislature intentionally did not do so, but gave jurisdiction in certain matters, and then went on to give the particular remedy of the Court of Admiralty in all the cases in which it had so given jurisdiction " (2). And in The Eona («) it was held, that holders of bills of lading could sue under the Act of 1869 for damages for delivering the cargo in a damaged- condition, although one of the owners was domiciled in England. 694. Thus, it seems that the county court jurisdiction in rem under the Act of 1869 over claims arising out of an agreement " in relation to the use or hire of any ship, or in relation to the carriage of goods in any ship," and over claims " in tort in respect of goods carried in any ship," is not limited by any condition that the goods shall have been carried into a port in England or Wales ; nor that the owner shall be domiciled abroad. Eurther, the remedy in rem under that Act is available to the shipowner, as well as to the freighter or owner of the goods. The shipowner may arrest the goods in respect of claims he may have in relation to the carriage of them (J). 695. A claim for breach of a charter party by refusing to perform the agreed voyage is within the meaning of sect. 2 of the Act of 1869 (c) ; so are claims for not delivering in accordance with {%) Per James, L. J., 5 Ex. D. at p. 238. {a) 7 P. D. 247. (A) The Cargo ex Argos, L. R., 5 P. C. 134. (c) The AHna, 5 Ex. D. 227; HewBous, L. R , 6 P. C. 134. The EEMEDIES IN REM. 793 the contract (d) ; and so, also, are claims for freight, or Sect. 695. demurrage, or for charges payable to the shipowner in relation to the carriage of the goods (e). So, again, a claim for a hreaoh of a towage contract is within the words (/). But some limitation must, it seems, be put upon the literal effect of the section {g). In E. v. City of London Court {h) it was held, that a claim for loss of a passenger's luggage was not within them. And Day, J., there said : " It seems to me that the first part of sub-s. 1, which gives jurisdiction over claims arising out of agreements made in relation to the use or hire of a ship, refers to claims under charter parties, and the next clause, in relation to the carriage ' of goods in any ship,' to claims under bills of lading. We are asked to-extend the latter to claims in respect of passengers' luggage, but the agreement in this ease is not made with reference to the carriage of goods, but was one for the carriage of a pas- senger, and it is only as incidental to this agreement that the luggage was carried. This seems to me to show that such luggage was not ' goods ' in the sense in which that term is used in the section." In The Nuova Eaffaelina («), the question was raised whether brokers who had effected a charter party could proceed in rem against the ship under this Act, for their commission stipiilated for in the charter party, to which, however, they were not parties. Sir E. PhiUimore held that they could not ; on the ground that they were not parties to the contract. But he appears to have considered that if the charterers had been suing, on behalf of the brokers, it would have been a claim " arising out of an agreement made in relation to the use or hire " of a ship. 696. It does not appear to have been decided whether the Can ship be remedy in rem against the ship for damage to goods, or for breach against,^ of contract of carriage, is given in cases where there would be no „^t^pers^aUy right of action against the shipowner himself. liable? The Admiralty Court Act, 1861, gives jurisdiction over any claim for damage to the goods " by the negligence or misconduct of or for any breach of duty or breach of contract on the part of (rf) The Eona, 7 P. D. 247. guarantee to load the ship in a certain («) The Cargo ex Argos, L. E., 6 time was held not within the Act. P. C. 134. (ff) See per Cleasby, B., in Grtmnestad (/) The Isca, 12 P. D. 34. Cf. The v. Price, L. E., 10 Ex. 65. Zeus, 13 P. D. 188, where a claim (A) 51 L. T. 197. against a colliery company under a (i) L. E., 3 A, & E. 483. 794 THE DELIVERY. Sect. 696. the owner, master, or crew of the ship," and it enacts (sect. 35) that this jurisdiction may be exercised by proceedings in rem. Also, the County Court Admiralty Act of 1869 gives jurisdic- tion in rem, still more generally, in respect of claims " in tort in respect of any goods carried in any ship." But it is at least open to doubt whether it was intended that the res of the shipowner should be liable to compensate wrongs for which he would not be personally answerable {k). And the proviso in the Act of 1861, which limits the jurisdiction to cases in which there is no owner domiciled in England or Wales, appears to show that that result was not intended. For, otherwise, a difference of liability would be imposed on owners living abroad, and owners living in England. Where the ship has been chartered, or let, to persons who are allowed to have the control of her for the time being, and who are personally liable for the claim which is made, the remedy against the ship is perhaps available, though her owners may not be liable. The point does not seem to have been decided. If in such a ease the claim were based upon a maritime lien, the authorities show that the ship could be proceeded against (^). But as the claims we are considering do not give rise to maritime liens, the proceed- iug in rem must be justified, if at all, by the words of the Act ; and it seems unlikely that those words were intended to give a remedy against the owners, in effect, which would not otherwise exist {m). In The Emilien Marie (w), Sir E. Phillimore held that the Court had jurisdiction in rem against the whole ship, in regard to a claim for short delivery under a bill of lading, although the captain (who was a part owner) might be the only owner who was personally liable. Jurisdiction 697. The jurisdiction in rem is exercised over foreign as well as exercised over Over British ships, when they come within the territorial jurisdic- in rem exerois foreign ships, (h) Cf. The Castlegate, (1893) A. 0. performance of contracts made by the 38 ; The Utopia, (1893) A. 0. 492. See master, within the scope of his apparent infra, o. 707. authority, whether he is acting as agent (?) The Ticonderoga, Swab. 215 ; The for the owner of the ship, or on behalf Lemington, 2 Asp. N. S. 475 ; The Tas- of the charterer, or other person who is mania, 13 P. D. 110 ; The Eipon City, allowed to have control of the ship for (1897) P. 226. the time being. Hickox ». Buckingham, {m) In the United States it appears to 18 Howard, 182 (Supreme Court), be the law that the ship is liable for the («) 32 L. T. 435. EEMEDIES IN REM. 795 tion of the Courts of Admiralty, without regard to whether the Sect. 697. same remedy might be had under the law of the country to which the ship belongs. The remedy (o), and the procedure (ja), are determined by the law of the Court itself. Also, the judgment of a foreign tribunal against a ship is recog- Eoreign nized by our Courts, and may be enforced against her by pro- J-m^enforoed" ceedings in rem in the Admiralty Court, if she is within the jurisdiction. " A consideration of these authorities, and the principle upon which they rest, leads me to the conclusion that it is the duty of one Admiralty Court, a duty arising from the international comity, to enforce the decree of another upon a subject over which the latter had jurisdiction. I do not think it necessary to enter into a consideration of all the cases decided by the common law courts as to the effect of foreign judgments in this country. The general principle of recognizing and giving effect to such judgments is now admitted by these Courts. I did not, indeed, understand it to be denied by Mr. Butt that the Admiralty Court has power to execute the sentence of a foreign Admiralty Court. His objection is as to the mode by which it is sought to enforce it. He contends that a proceeding in rem can only be instituted where there is a maritime lien, and that the foreign judgment does not confer such a lien. I am of opinion that it is the duty of this Court to act as auxiliary to the Portuguese Court, and to complete the execution of justice, which, owing to the departure of the ship, was necessarily left unfinished by that Court. In other words, it is my duty to place the English Court in the position of the Portuguese Court after its sentence has been given against the defendants " {q). (o) Dela Vega«. Vianna, 1 B. &Ad. the groiind that the judgment of the 284 ; The Vernon, 1 W. Kob. 316 ; The Portuguese Court had not been in rem. Mildford, Swab. 362. As to limitation Lush, J., said, "It is part of the law of liability, see The Amalia, 32 L. J., of nations that Courts of Admiralty in Ad. 191 ; General Iron Screw Collier different countries have the power to Co. 1). Sohurmanns, 29 L. J., Ch. 877 ; condemn vessels and order them to be Cope V. Doherty, 27 L. J., Ch. 600. sold for the satisfaction of a maritime (p) As to limitation of time, Don v. Ken. Maritime liens are recognized by Lippman, 5 CI. & F. 1 ; British Linen Co. all civilized nations, and damage by ». Drummond, 10 B. &0. 903 ; Trimbey collision is classed among those things ». Vignier, 1 Bing. N. 0. 151. As to which create a maritime lien; and had evidence, Leroux v. Brown, 22 L. J., this been a judgment in rem, that is to C. P. 1, supra, B. 213. say, a judgment condemning the ship (?) Per Sir R. PhUlimore, The City of and ordering the ship to be sold in order Mecca, 5 P. D. 28, p. 32. The decision to satisfy the maritime Hen, that judg- was reversed on appeal (6 P. D. 106) on ment would have been recognized in 796 THE DELIVERY. Sect. 698. Proceeding in rem originally , , . , / \ baaed on ceeded agamst (r) maritime lieu. Nature of a maritime lien. 698. The remedy in rem given by the Admiralty Court was, it has heen said, founded on a maritime lien upon the thing pro- The right to a maritime lien in respect of certain claims was recognised by adoption from the civil law and the early maritime law, and was enforced by the Court of Admiralty. These were claims for salvage and damage by collision, on the high seas (to which the jurisdiction was confined) («), and for wages of seamen, and under bottomry bonds. And the same right of maritime lien has been conferred by modern statutes in regard to some other similar claims (t). A maritime lien attaches to the property from the time the claim first arises, and clings to it without regard to the person who may have possession, and notwithstanding any transfers of the general rights in the property ; so that, if enforced without improper delay, it overrides all other titles to the ship which are not based on superior or equal liens. Thus it is paramount to the title of a purchaser or mortgagee, whether the purchase or mortgage was this country and every other civilized country." 6 P. D. at p. 116. As to the validity of a sale of a ship under a judgment in rem of a foreign Court, see Castrique ». Tmrie, L. E., 4 H. L. 414. Blackburn, J., there said: "We think the inquiry is, first, whether the subject- matter was 80 situated as to be within the lawful control of the state under the authority of which the Court sits : and, secondly, whether the sovereign autho- rity of that state has conferred on the Court jurisdiction to decide as to the disposition of the thing, and the Court has acted within its jurisdiction. If these conditions are fulfilled, the ad- judication is conclusive against aU the world." L. R., 4 H. L. p. 429. See also Messina v. Petroooohino, L. R., 4 P. C. 144 ; and Minna Craig S.S. Co. ii. Chartered Merc. Bank of India, London and China, (1897) 1 Q. B. 65, 460. A mistake of the foreign tribunal on a point of law, although of English law, is not a defence to an action upon it (Godard v. Gray, L. R., 6 Q. B. 139) ; unless the mistake is admitted (Meyer v. Ralli, 1 C. P. D. 358). As to the effect of a foreign judgment obtained on de- fault of appearance, see Schibsby v. Westenhok, L. E., 6 Q. B. 155 ; The Delta, 1 P. D. 393 ; Eouaillonu. Eousil- lon, 14 Ch. D. 351 ; cf. Copin v. Adam- son, L. R., 9 Ex. 345 ; 1 Ex. D. 17 : or by fraud, Abouloffi v. Oppenheimer, 10 Q. B. D. 295. ()■) The BoldBuccleugh, 7 Moo. P. C. 267 ; and see per Ld. Watson, in the Henrioh Bjorn, 11 A. C. 270. But see per Jeune, J., in The Dictator, (1892) P. 304. Also see Clarke's Praxis, cited in Will. & Br. Adm. Practice (2nd), 77, which seems to show that the original procedure in the Admiralty Court was by arrest of the person, to enforce the giving of security. Cf. Kennedy, Sal- vage, pp. 9 et seq. («) The judges of the Court were re- strained from "meddling of anything done within the realm," by 15 Rich. II. i>. 5. (<) As to salvage and collision within the body of a county, see A. C. Act, 1840, B. 6; A. C. Act, 1861, s. 7; per MeUish, L. J., in The Two Ellens, L. R., 4 P. C. 161, p. 167. And see per Lord Halshury in The Sara, 14 A. C. 209, p. 216. As to wages and disburse- ments of the master : M. S. Act, 1894, B. 167. REMEDIES IN REM. 797 mstde before or after the claim accrued (u) ; and also to possessory Sect. 698. liens, even to that of a shipwright who has since repaired, and added value, to the ship (x). But the lien is only enforceable by means of the process of the Court. " Having its origin in this rule of the civO. law, a maritime lien is well defined by Lord Tenterden to mean a claim or privilege upon a thing to be carried into effect by legal process ; and Mr. Justice Story (p) explains that process to be a proceeding in rem, and adds, that whenever a lien or claim is given upon the thing, then the Admiralty enforces it by a proceeding in rem, and, indeed, is the only Court competent to enforce it. A maritime lien is the foundation of a proceeding in rem, a process to make perfect a right inchoate from the moment the lien attaches ; and, whilst it must be admitted that where such a lien exists a proceeding in rem may be added, it wiU be found to be equally true that in all cases where a proceeding in rem is the proper course, there a maritime lien exists which gives a privilege or claim upon the thing, to be carried into effect by legal process. This claim or privilege travels with the thing into whatsoever possession it may come. It is inchoate from the moment the claim or privilege attaches, and, when carried into effect by legal process by a proceeding in rem, relates back to the period when it first attached " (z). 699. Since the judgment in The Bold Buccleugh (z) was Maritime lien delivered the remedy in rem has been extended, by the Admiralty confined by^ Courts Acts above mentioned, to a number of new cases ; and, as is stafites now well established, it is not a necessary inference from the fact remedy in that these statutes have given the remedy in rem for a particular class of claims, that it was intended to confer a maritime lien for those claims (a). Thus it was decided, by the Privy Council, in The Pieve Superiore (a) that the Admiralty Courts Act, 1861, did not give a maritime lien for claims for damage to the cargo, or breach of duty, or breach of contract, within sect. 6 of that Act. (m) The Bold Buooleugh, 7 Moo. P. C. (2) The Bold Buccleugh, 7 Moo. P. C. 267 ; The Nymph, Swab. 86 ; The 267, p. 284, a.d. 1851. Charles Amelia, L. R., 2 A. & E. 330. («) The Pacific, 33 L. J., Ad. 120 The law as to maritime lien is the same The Troubadour, L. R., 1 A. & E. 302 in Scotland, Currie v. McKnight, 1897, The Two Ellens, L. R., 4 P. C. 161 A. C. 97. The Pieve Superiore, L. R., 5 P. C. 482 [x] The austaf, 31 L. J., A. D. 207. The Henrioh Bjorn, 11 A. O. 270 ; 10 Of. The Oaigo ex Galam, 33 L. J., Ad. P. D. 44 ; The Sara, 14 A. C. 209 ; 12 97- P. D. 158. And see The Rio Tinto, 9 (y) The Brig Nestor, 1 Sumner, 78. A. C. 356. rem. 798 THE DELIVERY. Sect. 699. The ground taken being that the jurisdiction given to the Court by that section is made to depend not on the state of things at the time when the claim arises, but upon the state of things when the suit is instituted, namely, whether there is at that time an owner of the ship domiciled in England; whereas, a maritime lien must attach and be enforceable from the time the claim arises (&). This reasoning does not apply to the County Courts Admiralty Acts, which confer an unconditional jurisdiction. But in later cases the more comprehensiTe view has been taken, that words con- ferring the remedy in rem do not suffice to create a maritime Hen. And it seems certain that the County Courts Acts do not create any new maritime liens. In The Henrioh Bjorn (c) the question was whether a maritime lien is given by the Admiralty Court Act, 1840, for necessaries supplied to a foreign ship. The jurisdiction under that Act is not conditional. But the House of Lords, affirming the Court of Appeal, held that, though that jurisdiction was exercisable by proceedings in rem, no maritime lien for the claim was conferred. " Words simply giving jurisdiction do not seem appropriate or adequate to the creation of so important a right as that conferred by a maritime Hen, a right towards which, too, the law of England was less friendly than the law of Eome and of the countries which have adopted the civil law" {d). And in The Sara (e) the House of Lords took the same view with regard to the claim to a mari- time Hen for a master's disbursements, under the Admiralty Court Act, 1861, sect. 10. The charge 700. The remedy in rem, then, given by the Admiralty Court proceedmg In -^cts for claims arising under contracts of carriage, is not founded effeot^foom ^P°^ ^ maritime Hen. But it enables the claimant to arrest and the arrest. detain the property ; and gives him a charge upon it, subject to other prior claims, from the time of the arrest. "The object of the statute is only to found a jurisdiction against the owner who is liable for the damage, and to give the security of the ship, the res, from the time of the arrest" (/). (i) Cf. TheT-woEUens,L. K., 4P. C. p. 12: and per Brett, J., Simpson v. 161, at p. 169. Blues, L. E., 7 C. i>. 290, p. 295. (e) 11 A. C. 270 ; 10 P. D. 44. (e) 14 A. C. 209 ; reversing 12 P. D. (d) Per IVy, L. J., delivering the 158. See noiv M. S. Act, 1894,8.167; Judgment of the C. A., 10 P. D. at of. Xhe Oastlegate, (1893) A. 0. 38. p. 63. See also per Dr. Lushington, (/) The Pieve Superiore, L. E., 6 The Mary Ann, L. B., 1 A. & E. 8, P. 0. 482, p. 491. REMEDIES IN EEM. 799 In The Henrich Bpm, the Court of Appeal, speaking in rela- Sect. 700. tion to a claim for necessaries under the Admiralty Court Act, 1840, said (g) : " But if the material man may thus arrest the property to enforce his claim, how does his claim differ from a maritime lien ? The answer is, that a maritime lien arises the moment the event occurs which creates it ; the proceeding in rem which perfects the inchoate right relates back to the period when it first attached ; ' the maritime lien travels with the thing into whatsoever possession it may come ' (The Bold Buccleugh {h) ) ; and the arrest can extend only to the ship subject to the lien. But, on the contrary, the arrest of a vessel under the statute is only one of several possible alternative proceedings ad fundandam jurisdicHonem ; no right in the ship or against the ship is created at any time before the arrest ; it has no relation back to any earher period : it is available only against the property of the person who owes the debt for necessaries ; and the arrest need not be of the ship in question, but may be of any property of the defendant within the realm. The two proceedings, therefore, though approaching one another in form, are different in sub- stance : in the one case the arrest is to give effect to a pre-existent lien, in the other, the arrest is only one of several alternative modes of procedure, because, to use the language of Dr. Lushing- ton in The Volant («'), ' it offers the greatest security for obtaining substantial justice in furnishing a security for prompt and imme- diate payment.' " In The CeUa {k), the limited company which owned the ship went into liquidation after an action in rem for necessaries had been commenced. The liquidator claimed to be entitled in priority to the plaintiff, but without success. " If the money be in Court, or the Court has possession of the res, it can give effect to its judgment as if it had been delivered the moment after it took possession of the res " {I). 701. It appears, then, that the remedies in rem., which we are Eemedyonly ~ discussing, can only be availed of against the ship and freight on f'^is pra-° the one hand, and as-ainst the cargo on the other, so long or so far P^'^^y "on- ' ° . ° ° tmues that of only as they continue at the time of arrest to be the property of person liable. the person who is personally liable for the damage, or breach of is) 10 p. D. 44, p. 54 ; affirmed 11 (i) 1 W. Hob. 383. A. C. 270. [k) In 0. A. 13 P. D. 82. (A) 7 Moo. P. C. 267. W Per Lord Bsher, 13 P. D. p. 87, 800 THE DELIVERY. Sect. 701. ^uty complained of. " According to the true construction of this section (sect. 5 of the Admiralty Court Act, 1861) the res, the ship, does not become chargeable with the debt for necessaries until the suit is actually instituted, and all valid charges, on the ship, to which any person other than the owner of the ship who is liable for the necessaries is entitled, must take precedence " (m). In The Pacific (w), also a suit for necessaries, the claim was post- poned to that of a mortgagee whose mortgage had been granted after the necessaries were supplied, but prior to the suit. In The Aneroid (o), it was held that a sale of the ship, before action, defeated the right to payment out of the res for materials supplied for the equipment of the ship, although the purchaser had notice of the claim when he purchased. Sir E. Phillimore said : " It would be difficult to see what principle of equity could render the purchaser, who it must be presumed had paid the full value of the repaired ship, liable for the debt of the vendor to the repairing tradesman, with whom the vendee had no contract at all. I do not think that the fact of notice being given can create a lien which is neither a maritime lien nor a possessory lien." It appeared in that case that the shares in the ship which had been sold, were mortgaged back to the vendors by the purchaser, on the day of the sale. So that apparently the whole price of the shares had not in fact been paid. Whether that should make a difference in any ease does not appear to have been decided. Losses of Goods by Collision. Actions for 702. We have further to refer to the remedies which the cargo owner may have against persons who are strangers to the contract with the shipowner. Cargo may have been lost or damaged while in the shipowner's custody under circumstances which entitle the owner to compensa- tion from persons other than the shipowner. Where damage has been done to the goods wrongfully, as by the wilful, negligent, or reckless act of any person who is not empowered by law to do that act, the owner of the goods may sue the wrongdoer for compensa- tion for the consequences ; whether he also has a remedy against the shipowner or not. (m) Per MelBsh, L. J., The Two («) 33 L. J., Ad. 120. EUenB, L. E., 4 P. C. 161, p. 170. \o) 2 P. D. 189. ■wrongs. COLLISIONS. 801 Ajid a right to sue in respect of such damage is also vested in Sect. 702. any person who had any interest in the goods which has heen destroyed, or prejudiced, by the wrongful act. In The Thyatira (p), the cargo belonged to the owners of the carrying ship. The Atmosphere, but the plaintiffs had advanced 1,650/. to the owners upon it, and this was secured to them by an assignment of bills of lading for the cargo, by which the cargo was to be delivered on payment of freight at a certain rate. These bills of lading were indorsed with a receipt for 1,000/. on account of freight. Also two policies, one for 1,000/. advanced freight, and another on cargo, were effected, and were handed with the bills of lading to the plaintiffs. The cargo was lost owing to a collision with The Thyatira, for which she was to blame. In an action by the plaintiffs against The Thyatira it was con- tended that the plaintiffs could not recover the 1,000/. advanced freight against The Thyatira, on the ground that no freight in advance had in fact been paid ; the freight reserved only repre- senting the possible increase of value of the cargo at its destination ; and that the owners of The Atmosphere had already in another action claimed compensation for loss of the disbursements made to earn this so-called freight. But it was held that the plaintiffs were entitled to recover the amount as compensation for their loss of the benefit of the enhanced value of the cargo. In The Glamorganshire (q), the cargo was shipped on the order of the plaintiffs, but it was deliverable to Barings, and the bill of lading had been indorsed to the Hong Kong Bank to secure advances. Still it was held, in the Privy Council, that the plain- tiffs had " an interest to maintain the suit to recover the money for the benefit of those persons who on the inquiry are proved to be entitled to it, and under circumstances in which the money will not be paid out till the owners of The Grlamorganshire are com- pletely freed from claims." And if the person who has been damnified was insured against Underwriters such a loss, and has been indemnified by his underwriters, he may ^g^efit. stiU sue for compensation on their behalf. They are entitled to the benefit of his right of action, either against the wrongdoer, or against the shipowner on the contract, where the loss is one for which he has undertaken responsibility; and they may claim to {p) 8 P. D. 156. (?) 13 A. C. 454. C— C. 3 F 803 THE DELIVERY. Collisions. Sect. 702, sue in the name of the assured upon properly indemnifying him (r). 703. The most frequent cause of claims by cargo owners, against third persons, is collision between the carrying ship and another. Where a collision has been purely accidental, having happened without any fault on the part of those managing either ship, the loss lies where it has fallen ; unless the cargo owner can claim from the shipowner under the contract. And where the fault has been wholly on the side of the ship which is carrying the goods, there is, of course, no claim against the owners of the other. But if the collision has been due to negligent, or improper, management of the stranger ship, compensation becomes payable by those respon- sible for that management ; and, as we shall see, it may generally be enforced by proceedings in rem against her (s). 704. Where both vessels have been in fault, in bringing about the collision, the rule is that the liability of the stranger ship, or those responsible for her management, is for one-half only of the damage occasioned to the goods. On the view of the common law taken in Thorogood v. Bryan (t), and Armstrong v. L. & T. Ey. Co. (m), the owner of goods on board a ship would have been regarded as identified with those in charge of the ship, so as to be affected by negligence on their part which contributed to the collision ; and consequently would have been unable to make any claim upon the other delinquent vessel. But this view of the law has been overruled by the judgments of the Court of Appeal and of the House of Lords in the case of the Bemina («). And it is now clear that the fact that the collision was iu part due to negligence of those in charge of the carrying ship does not stand in the way of a claim by the cargo owners against the other ship in fault. And at common law, the right of the cargo owner would be to a fiail compensation. But by the rules of law administered in the Court of Admiralty, where both vessels are to blame, even though not in equal degrees, the whole loss sustained by their owners is apportioned equally between the two (y). Each party becomes Where both ships to blame. Kule of half' damages. (r) Castellain v. Preston, 11 Q. B. D. 380 ; Darrell v. Tibbits, 6 Q. B. D. 560. ■Cf. Simpson v. Thomson, 3 A. C. 279. («) Infra, s. 706. (t) 8 C. B. 115. («) L. B., 10 Ex. 47. (») 13 A. C. 1 ; 12 P. D. 58. {y) The Woodrop Sims, 2 Dods. 83 ; Hay r. Le Neve, 2 Shaw, Sc. App. 395. COLLISIONS. 803 liaUe to pay to the other one-half of the damage which he has Sect. 704 . sustained (s). And this rule has been extended to the claim of an owner of cargo in one of the vessels. He is allowed to claim for half his loss, and no more, against the other vessel (a). " It is true, as I thiak, that the owner of the cargo is to be con- sidered a perfectly innocent person, and that, as a plaintiff, he does not stand in the same position as the owner of one of two delin- quent ships; and if that were the sole ground upon which the owner of the ship would only recover one-half, it might well be that the owner of the cargo would recover the whole ; but this is not exactly the view taken by the Admiralty law ; it endeavours, whether wisely or not I do not say, to administer more equitable justice, and, where both parties are delinquent, to give a moiety of the loss, or to divide the whole loss, it being impossible to ascertain the proportionate culpability. I apprehend that, carrying out this principle according to its practice, the Court of Admiralty would say : ' Tou, the innocent owner of a cargo, proceeding against one only of two delinquent ships, shall recover only a moiety of the damage, because we can affix to the vessel proceeded against only a moiety of the blame, and you shall be left, v/ith respect to the other half of your loss, to your remedy against the other vessel, which we hold to be equally delinquent.' It may be true that this principle is not altogether reconcileable with the rules and practice of common law, and much might be said as to the equity of its operation and effect ; but still I think that this resolution of the question is most conformable to the case of Hay v. Le Neve and other cases ; and therefore my decree must be that the plaintiffs do recover a moiety of the damage only " (5). (z) The half-damages are set against are proved for pari passu -with the claims one another, and the balance is payable of the shipowner, and of the master and to him who has sustained the greater crew. See Chapman v. Royal Nether- loss. This course is followed although lands Steam Nav. Co., 4 P. D. 167. one of the shipowners may have taken (a) The Milan, 31 L. J., Ad. 105 ; proceedings for Umiting his liability. Chartered Merc. Bank of India v. See Stoomvaait Maatschappy Nederland Netherlands India Steam Nav. Co. , V. P. &0. Steam. NaT. Co., 7 A. C. 795. 10 Q. B. D. 621. Where one ship is exempted on the (J) Per Dr. Lushington, The Milan, gronnd of compulsory pilotage, see The 31 L. J., Ad. 106, at p. 112. In the Hector, 8 P. D. 218. The rule of de- U. S. the owner of cargo, or the ship- dnoting the half-damage to the other owner on his behalf, may recover in full sliip, in ascertaining the amoimt to be against the other ship : The Beaoons- paid, or proved for, does not apply to field, 158 U. S. 303 ; The Atlas, 93 U. S. the claims of the cargo owners. Those 302 ; and her owner may claim one-half 3f2 804 THE DELIVERY. Sect. 704. Claim against carrier not aSeoted. Exceptions protect carrier against claims in tort. Where totK ships belong to same owner. Proceedings may gene- rally be in rem. By sect. 25, sub-sect. 9, of the Judicature Act, 1873, it is pro- vided that, " In any cause or proceeding for damages arising out of a collision between two ships (c), if both ships shall be found to have been in fault, the rules hitherto in force in the Court of Admiralty, so far as they have been at variance with the rules in force in the courts of common law, shall prevail." 705. The right to proceed against the other colliding vessel, whether for the whole of the loss, or for half only, does not, where it is unsatisfied, prejudice the right of the freighter to claim for the whole loss against the carrying shipowner, under the con- tract {d). The claim against the carrier is generally under the contract, though in some cases it might be framed in tort. For the carrier is answerable for such losses, unless the contract excuses him ; and if the contract exempts him from responsibility for the causes which have produced the loss, it will relieve him from liability, even though he would have been answerable for the loss had no contract at all existed (e). The exemptions in the contract are not confined in their operation to limiting the obligations which are created by the contract. The rule of half-damages was applied in Chartered Mercantile Bank of India v. Netherlands India Steam Navigation Co. .(/), where the carrying ship and the colliding ship, which had been both to blame, belonged to the same owners. The shipowners there were not liable under the contract of carriage ; but were held to be liable as wrongdoers, in respect of the colliding ship, for one- half of the loss. They were not excused from liability for the acts of their servants in navigating that vessel, by the biU of lading exception of " accidents, loss or damage from any act, neglect or default whatsoever, of the pilots, master or mariners, or other servants of the company in navigating the ship." 706. The owner of cargo which has been damaged by a collision with another ship, for which those in charge of her are to blame, of the amount so paid against the carry- ing ship, notwithstanding the Harter Act, The Chattahoochee, 173 U. S. 540 (1899). (c) By sect. 742 of the M. S. Act, 1894, a " ship " is defined to include " any de- scription of vessel usedinnarigationnot propelled by oars." Bee The Mac, 7 P. D. 126. (d) The Bushire, 62 L. T. 740. («) See Delaurier v. Wyllie, 27 So. L. R. 148 ; stipra, a. 67. (/) 10 Q. B. D. 521. COLLISIONS. 805 may proceed against her in rem ; whether the collision has occtored Sect. 706. on the high seas or not {g). And he has a maritime lien for his claim ; by virtue of which he can follow the ship, and proceed against her, although she may have been sold or mortgaged by those who owned her at the time of the collision {h). This appears to be true although the collision may have been within the body of a county, and so only within the statutory jurisdiction of the Admiralty Court (^'). 707. It has been much debated whether this maritime lien, and Not unless the consequent right to proceed against the ship, depend upon the person in existence of personal responsibility for the collision on the part of ""'^^^ liablo. the owners. "The damage may have been caused by the wilful act of the master outside the scope of his employment, so that his employers are not personally answerable for it {k) ; or it may have resulted from negligence of a pilot whom the owners have been compelled by law to employ. In such cases the lien and proceeding against the ship are not available {I). In The Druid, where the suit was for damage caused by a wilful unauthorized act of the master. Dr. Lushington said {m) : " In all causes which may arise from circumstances occurring during the ownership of the persons whose ship is proceeded against, I appre- hend that no suit could ever be maintained against a ship where the owners were not themselves personally liable, or where their personal liability had not been given up, as iu bottomry bonds, by taking a lien on the vessel. The liability of the ship and the responsibility of the owners in such cases are convertible terms ; the ship is not liable if the owners are not responsible ; and, vice (y) By the Admiralty Court Act, 1861, 12 P. D. 158. 8. 7, "The High Court of Admiralty ijc) See Limpus v. London General shall have jurisdiction over any claim Omnibus Co., 32 L. J., Ex. 34 ; Bayley for damage done by any ship." This v. M. S. & L. EaU. Co., L. R., 8 0. P. section does not enable the cargo owner 148 ; Venables v. Smith, 2 Q. B. D. 279 ; to proceed »« »-e»i against the ship vrhich Eayner v. Mitchell,' 2 C. P. D. 357; carried the cargo, for damage done by Steel v. Lester, 3 C. P. D. 121. anegUgent collision: The Victoria, 12 [T) The Druid, 1 W. Kob. 391; The P. D. 105. See also County Courts Protector, 1 W. Kob. 45 ; The Anapolis, Admiralty Jurisdiction Act, 1868, s. 3, 30 L. J., Ad. 201 ; Lush. 295 ; The Bub-s. 3 ; and the Amendment Act, 1869, Utopia, (1893) A. C. 492. Cf . Currie v. s. 2, sub-s. 1. McKnight, (1897) A. C. 97. (h) Supra, s. 698. (m) 1 W. Rob. 391, at p. 399. And (t) See per Mellish, L. J., The Two see per Brett, L. J., in The Parlement Ellens, L. R., 4 P. C. 161, at p. 167. Beige, 5 P. D. 197, at p. 218. And per Cf. The Henrich Bjom, 11 A. C. 270 ; Sir R. Phillimore, in The Leon, 6 P. D. 10 P. D. 44 ; The Sara, 14 A. C. 209 ; 148, at p. 160, 806 THE DELIVEEY. ■ Sect. ?07. ijersd, no responsibility can attach upon tbe owners if tlie ship is exempt and not liable to be proceeded against." Where, however, the ship has been chartered, and the charterers put in control of her, then, if they are responsible for the acts which have caused the collision, the ship maybe proceeded against, although the owner may not be personally responsible (n). And the same has been held where the vessel has been temporarily placed in charge of persons acting, not as servants of the ship- owner, but as independent contractors with him (o). " The result of the authorities cited appears to me to be this, that the maritime lien resulting from collision is not absolute. It is a primd facie liability of the ship, which may be rebutted by showing that the injury was done by the act of some one navigating the ship not deriving his authority from the owners ; and that, by the maritime law, charterers, in whom the control of the ship has been vested by the owners, are deemed to have derived their authority from the owners, so as to make the ship liable for the negligence of the charterers, who are, pro hac vice, the owners " (p). In the valuable judgment of Gorell Barnes, J., in The Eipon City (§'), the cases are all reviewed, and the conclusion is drawn that this right of maritime lien on a ship must " in some way have been derived from the owner,, either directly or through the acts of persons deriving their authority from the owner." And further, " as maritime liens are recognized by law, persons who are allowed by those interested in a vessel to have possession of her for the purpose of using or employing her in the ordinary manner, must be deemed to have received authority from those interested in her to subject the vessel to claims in. respect of which maritime Hens may attach to her, arising out of matters occurring in the ordinary course of her use or employment, unless the parties have so acted towards each other that the party asserting the Hen is not entitled to rely on such presumed authority " (r). Jurisdiction 708. The Court of Admiralty exercises its jurisdiction in rem, lore^rdiipr although one or both of the vessels which have been in coUision are foreigners (s). («) The Tioonderoga, Swab. 215 ; The (p) Per Hanaen, J., in The Tasmania, Lemington, 2 Asp. N. S. 475; supra, 13 P. D. 110, p. 118. Cf. per Lord g_ 696. Watson in The Castiegate, (1893) A. 0. ■ (0) ^eRnhyQueen Lu8h.266 But '\f (fsg^) p. ^^e. Tv rZ^' T ' ^' T?." W (1«97) P. at pp. 242 and 244. 3 P. C. 696 ; The American and The , ( nru t\. -^ • j ■ •■ ,-,„•.,,, Syria, L. R., 6 P. 0. 127. 35^ T^e Johann Fnedenoh, 1 W. Koh. COLLISIONS, 807 And by seot. 688 of tlie Merohant Shipping Act, 1894 (t), the Sect. 708. courts are enabled to detain any foreign ship hy which any injury has, in any part of the world, been caused to any property belong- ing to British subjects, if she be found in any port or river of the United Kingdom, or within three miles of the coast, upon its being shown that such injury was probably caused by the miscon- duct, or want of skill, of the master or mariners of such ship. 709. The question whether a foreign colliding vessel is liable for Liability of a coUision which has occurred on the high seas, is determined by by what law the Court of Admiralty according to the general maritime law, as ^^termmed ? there understood and adopted ; though that may differ from the law as administered in the country to which the ship belongs. And if, in such a case, proceedings are taken in personam against the owner of the foreign ship, he may, if within the jurisdiction, be made liable for the acts of the master and crew, though he would not be so by the law of his flag (m). But regulations of navigation established by our legislature do not generally bind foreign ships on the high seas. " As regards the foreign ship, for her owner cannot be supposed to know or to be bound by the municipal law of this country, the case must be decided by the law maritime, by those rules of navigation which usually prevail among nations navigating the seas where the collision takes place. If the foreigner comes before the tribunal of this country the remedy and form of proceeding must be according to the lex fori "(ai). On the other hand, as regards the Collision Eegulations, and the provisions of Part V. of the M. S. Act, 1894, " in any case arising in a British court concerning matters arising vrithin British jurisdiction, foreign ships shall ... be treated as if they were British ships " (y). 710. Where a collision has taken place within a foreign juris- Where colU- 1* . 1 . n sion has diction the rule is different. " As a general rule, m order to found occurred (0 57 & 58 Vict. c. 60, s. 688. As to verein, Swab. 96, at p. 99. And see the effect of this section in extending the The Dumfries, Swab. 63; The Leon, jurisdictionof the Court, see The Bilbao, 6 P. D. 148; M. S. Act, 1862, s. 58 ; 3 L. T. 338. Marsden on Collisions (2nd), 215. The /.,\ mT,T n T, -n -.jn r^-L L J liability of foreign shipowners was not (m) The Leon, 6 P. D. 148 ; Chartered ,. ., / , ^^ ,. , % , , -. _ Meroantne Bank of India .. Netherlands ^^'^ under Enghsh law before M S. India S. Nay. Co., 10 Q. B. D. S21, at ^'=*' ^^^^' '■ ^*- ^^ "^"^ ^- ^- ^''*' pp. 537,545. 1894, s. 503. ' (y) M. S. Act, 1894, s. 418 (2) ; and {x) Per Dr. Lushington, The Zoll- see s. 424. 808 THE DELIVERY. Sect. 710. a suit in England for a wrong alleged to have been committed within a abroad, two conditions must be fulfilled. First, the wrong must be diction. of such a character that it would have been actionable if committed in England: therefore in The Halley (2), the Judicial Committee pronounced against a suit in Admiralty, foimded upon a liability by the law of Belgium, for collision, caused by the act of a pilot whom the shipowner was compelled by that law to employ, and for whom, therefore, as not being his agent, he was not responsible by English law. Secondly, the act must not have been justifiable by the law of the place where it was done " (a). The wrong complained of must not only be such as to give rise to a cause of action in this country against the person proceeded against ; but also must be a matter for which he would be liable according to the law of the place where it occurred. And this rule was held to apply where damage was done, within a foreign jurisdiction, by a British vessel (b). Mellish, L. J., said: " The law respecting personal injuries, and respecting wrongs to personal property appears to me to be perfectly settled, that no action can be maintained in the courts of this country on account of a wrongful act either to a person or to personal property, com- mitted within the jurisdiction of a foreign country, unless the act is wrongful by the law of the country where it is committed, and also wrongful by the law of this country." (") I'- K., 2 P. C. 193. in PhilKps V. Eyre, L. R. , 6 Q. B. 1, at (a) Per WUles, J., delivering the p. 28. judgment of the Exchequer Chamber, (J) The M. Moxham, 1 P. D. 107. CHAPTER XX. THE MEASUEE OF DAMAGES. 809 SECT. The subjects for discussion — Failure to ship cargo 711 General principles 712 The rule in Hadley v. Baxeu- dale 713 Ulnstrations of the general rule . . 714 Ulustrations of exceptional cases ; communioated special circum- etances ..,,,,., 715 Mere knoTvledge of special circum- stances not always sufSoieut — Home V. Midland Eail. Co 716 Sembk, the rule in Hadley v. Baxendale expresses the whole limitation as to remoteness 717 The plaintiff must not aggravate the loss 718 The plaintiff must seek to mitigate the loss 719 The shipowner should seek another cargo when the freighter fails to load 720 Substituted freights are taken into account — ^Not so collateral bene- fits to shipowner 721 SECT. Damages may be fixed by contract — Penalty clauses in charters . . 722 Pailnre to supply ship, or take in goods — Engaging larger ship — Where no means of carriage available 723 Delay in carrying and delivering goods — Loss of the use of the goods — Special use 12i Deterioration and wasting of the goods 725 Loss of market value by delay .... 726 Goods lost or damaged, value to be estimated as at the time and place fordelivery — Sale at portof refuge 727 Wrongful deprivation of goods — Losses by collision 728 Effect of misdescription of goods in bill of lading 729 Effect of rights against third persons — Insurances not taken into ac- count — Liability for the goods entitles plaintiff to claim 730 Costs incurred in actions by third persons owing to breach 731 711. The subiect of damages has been very fully treated in The subjects ° , for discussion, well-known treatises {a), to which the reader may be referred ; but it wiU be conTenient to discuss, shortly, the principles which govern the amount of damages recoverable in cases which specially belong to our subject. This has already been done incidentally upon many questions during the foregoing chapters ; more especially with regard to (a) Mayne on Damages (4th), 1884, by J. D. Mayne and Lumley Smith; Sedgwick on the Measure of Damages {7th), 1880. 810 THE DELIVERY, Sect. 711. Failure to ship cargo. Greneral prin- ciples. claims on the part of the shipowner. Thus, it will be unnecessary to repeat what has been said, in Chapter XVII., with respect to detentions of the ship. Nor need much be said as to the damages recoverable by the shipowner for a failure to ship goods as agreed, or to load the kind of cargo which was agreed. In such cases the loss which the ship- owner sustains is the difPerence between the freights which he would have received, had the goods been properly shipped, and the freights which become payable on what has in fact been shipped by the freighter, or by others in his stead ; deducting, on the one hand, the expenses which the shipowner avoids by not having to take on board, carry, and discharge the cargo not shipped ; and, on the other hand, adding any extra expenses which the shipowner has prudently incurred in obtaining and carrying the substituted cargo. The questions which arise in practice are, as to what cargo ought to have been shipped under the contract, and how ought the freights to be calculated ; and these are discussed in previous chapters (b). Thus, we shall here for the most part consider what the damages are which the freighter may recover, for breaches of the contract by the shipowner. 713. But before dealing with the different classes of claims which arise, it will be well to point out certain general principles which determine the extent to which damages are allowed for breaches of contracts. The fundamental principle is that compensation ought to be made to the party who has been wronged by the breach, for the losses which he has sustained in consequence of it ; that he ought to be placed in the same position, pecuniarily, as if the contract had been performed and not broken. But to that principle there are important limitations ; and com- pensation is not in fact recoverable for every loss or detriment which may be traceable as a consequence, however remote, of the breach of contract. Even where the loss follows immediately upon the breach, it is in every case the consequence of a group of causes, of which the breach of contract is only one, and of which some may have no connection with the contract, or with the manner of performing it. And where the loss does not follow immediately (J) Chaps. IX. and XVI. THE MEASURE OF DAMAGES. 811 upon the breach, its proximate causes may, or may not be conse- Sect. 712. quenoes of that ; other new and entirely independent causes may have iutervened ; and the breach may often be regarded rather as having given the opportunity for the loss, than as having caused it. We have then to consider to what extent the party who breaks the contract is liable for losses due to other causes, which co-operate with, or ensue upon, the breach. The matter may be put in another way. The effect of the breach of a contract can in some respects be seen definitely before- hand. If money is to be paid, or goods are to be delivered, the loss of the money or goods is the plain consequence of a failure to pay, or to deliver. If payment, or delivery, is improperly delayed, the temporary deprivation of the money or goods is the definitely foreseen result of that breach. So, if a ship be improperly detained by the freighter, the clear result is a loss of her services to the shipowner. And if the shipowner faUs to carry goods as agreed, or the freighter fails to provide a cargo as agreed, the necessary consequences are a loss of the conveyance by that means in the one case, and of the opportunity of earning freight by carrying the agreed cargo in the other. But the pecuniary loss involved in these definite consequences may be aggravated by other circumstances, which accompany the breach, or foUow upon it. Also the breach may, under the circum- stances, have further and different consequences which also involve loss. This aggravated or additional loss may, or may not, have been calculable beforehand. It depends upon the conditions which actually obtain at or after the time when the performance should ' have taien place ; and those may, or may not,[have been known or expected when the contract was made. The question is, how far are aggravations of the ordinary, definite, effects of a breach, which are due to the circumstances which attend it, to be taken into account ? The general answer is, that they are not to be taken into account, except so far as the circumstances to which they are due were the ordinaryj,probable circumstances, which might beforehand be expected to attend or follow upon the breach. But that rule is subject to the exception, that if the party who has broken the contract entered into it in contemplation of special circumstances, which would affect the consequences of a breach, and accepted those circumstances as conditions under which the 812 THE DELIVERY. Sect. 713. contract was to be performed, then he is h'able for any special ' losses which have arisen, and were likely to arise, from the breach under those circumstances. The rule in 713. The rule and the exception were laid down by Baron Baxendale. Alderson, in the considered judgment of the Court in the leading case of Hadley v. Baxendale (c), as follows : — " Where two parties have made a contract which one of them has broken, the damages which the other party ought to receive in respect of such breach of contract should be, either such as may fairly and reasonably be considered arising naturally (d), i. e., according to the usual course of things, from such breach of contract itself, or such as may reasonably be supposed to have been in the contemplation of both parties at the time they made the contract, as the probable result of the breach of it. " Now, if the special circumstances under which the contract was actually made were communicated by the plaintiff to the defen-, dant, and thus known to both parties, the damages resulting from the breach of such a contract which they would reasonably contem- plate would be the amount of injury which would ordinarily follow from a breach of contract under those special circumstances, so known and communicated. But, on the other hand, if those special circumstances were wholly unknown to the party breaking the contract, he at the most could only be supposed to have had in his contemplation the amount of injury which would arise gene- rally, and in the great multitude of cases not affected by any special circumstances, from such a breach of contract. For had the special circumstances been known, the parties might have especially provided for the breach of contract by special terms as to the damages in that case, and of this advantage it would be very unjust to deprive them." In that case carriers had been unreasonably slow in delivering a broken mill-shaft, which had been sent to an engineer as a model («) 23 L. J., Ex. 179, p. 183. been used in many cases ; and it may {i) Cf. per Martin, B., in "Wilson v. not be easy to substitute a better word Newport Dock Co., L. R., 1 Ex. 177, to express what is meant. Normal, or p. 184. In Smith «. Green (1 0. P. D. likely or probable of occurrence in the 92),Grove, J.,Baid " Great difEoulty no ordinary course of things, would per- doubt arises from the use of the word haps be the more correct expression." ' natural ' in those cases. It is used by See also Wilson v. Dun-riUe, 6 L. R., Ir. Lord Campbell and Erie, J., in Randall 210. V. Roper (27 L. J., Q. B. 266), and has THE MEASURE OP DAMAGES. 813 for a new one. In consequence of this delay the making of the Sect. 713. new one was delayed, and the mill was stopped for want of it. It was held that the carriers were not liable for the loss of profits due to the lengthened stoppage at the mill. " For such loss would neither have flowed naturally from the breach of this contract in the great multitude of such cases occurring under ordinary circimi- stances ; nor were the special circumstances, which perhaps would have made it a reasonable and natural consequence of such breach of contract, communicated to or known by the defendant." 714. This general rule, that the loss to be paid for is that which lUustrations would naturally arise " in the usual course of things," thus laid ^e!'^ genera down ia Hadley v. Baxendale, has been approved and adopted in numerous cases. But the application of the rule has been fre- quently a matter of difficulty. The following cases will illustrate this. In Wilson v. General Iron Screw Collier Co. (e), the plaintiffs were allowed to recover damages for the detention of their ship while defective machinery supplied by the defendants was being replaced. In The City of Lincoln (/), a ship lost her compasses and charts in a collision, and the ship herself was lost while being navigated to a port of refuge owing to the want of compass and chart. It was held that compensation for that loss could be recovered, as being a consequence of the collision. In Mowbray v. Merry weather (g), the plaintiffs (stevedores) agreed to discharge a ship of the defendant, who undertook to provide proper tackle for the purpose. Owing to a defect one of defendant's chains broke, and plaintiffs became liable to one of their men who was thereby injured. It was held that they could recover the amount of this liability from the defendant ; although, relying on defendant's undertaking, they had themselves been negligent in not testing the chain. In these cases the losses were regarded as consequences which would be contemplated beforehand as likely to arise from the breach. On the other hand, in Gee v. The Lancashire and York- shire Eail. Co. (h), there had been delay in delivering some cotton to a cotton mill-owner, owing to which his mill stood idle for a 'fl'.^lh,^^ ^" ^' ^^^' (?) (1895) 1 Q. B. 857; 2 Q. B. 641. (/)15P. D. 15. Cf . The Marpessa, , ^ ' Z, (1891) P. 403 W 30 L.J. Ex. p. 11. 814 THE DELIVERY. Sect. 714. time. It was held to be a misdirection to tell the jury that he was entitled to claim the wages he had paid, and the profits he would have made during that time. PoUock, 0. B., said («) : " It was not the consequence of the non-arrival of the cotton alone, but it was the consequence of the non-arrival of the cotton and of the plaintiffs having no cotton to resort to. No doubt, if it could be made out that the practice in the neighbourhood of Liverpool and Manchester was such that every carrier must know that when cotton was sent there was a mill standing still until it should arrive, all this would have been a right direction. If they had notice of that, either actual notice, or if from the course of business they could have anticipated it, the damages would have been perfectly right" {k). In Portman v. Middleton (1), the defendant had failed to supply part of a certain machine in the agreed time, so that the plaiatiS became liable for damages under a contract he had made to supply the whole machine, to which the defendant's contract was subsi- diary. The defendant had had no notice of the plaintiff's contract until after the delay had occurred. It was therefore held that those damages could not be recovered over against him. So where goods have been sold for future delivery, and the vendor fails to make a delivery, he is liable for a difference between the contract price and the market price, but not generally liable for a further loss of profits which would have been made by the pur- chaser upon a re-sale, even though it may be shown that the object of the purchaser was to sell again, and that the vendor knew it (m). If, indeed, there be no market in which the goods can be replaced, the case is somewhat different; the value of the goods to the buyer may then be determined by the price he could have got for them under his re-sale (»), or by the cost of other goods reasonably bought to replace them (o). Nor, again, is a vendor, who has sold without notice of a sub-sale, generally liable for damages which the buyer may have to pay to (i) 30 L. J., Ex. p. 15. D. 457. (/c) See also Hales t). L. & N. W. Rail. («) Grr^bert-Borgnis v. Nugent, 15 Co., 32 L. J., Q. B. 292 ; Woodger v. G. Q. B. D. 85, per Lord Esher, p. 89 ; W. Rail. Co., L. R., 2 C. P. 318. Borries v. Hutolunson, 34 L. J., C. P. (I) 27 L. J., C. B. 231. Cf. Elbin- 169 ; and see Eranoe v. Gaudet, L. R., ger AotiengeseUschaft v. Armstrong, 6 Q. B. 199 ; Duff v. Iron, &o. Co., 19 L. R., 9 Q. B. 473. Sess. Ca. (4tli) 199. (m) WilUams v. Reynolds, 34 L. J., (o) Hinde v. liddell, L. R., 10 Q. B. Q. B. 221 ; Thol v. Henderson, 8 Q. B. 266. THE MEASURE OF DAMAGES. 815 his vendee, owing to the vendor's breach. But the case is altered Sect. 714. ■where the vendor has had notice of a suh-sale made, or ahout to he made, at the time of the contract (p) . Again, where a vessel of special construction had heen sold, and there was delay in delivery, the buyers were not allowed compensa- tion for the loss of special profits which they would have made by using it for a special purpose, of which the sellers had not had notice (q). " If the two parties are not ad idem quoad the use to which the article is to be applied, then you can only take as the measure of damages the profit which would result from the ordinary use of the article for the purpose for which the seller supposed it was bought" {r). And the plaintiEEs were allowed to recover on that basis, although they had not meant to use the vessel in the ordinary way, their loss having in fact been larger. In British Columbia Saw Mill Co. v. Nettleship (s), the plaintiffs had delivered several cases of machinery to the defendant's servants on a quay at Grlasgow, for shipment to Vancouver Island on board the defendant's vessel which lay alongside. The master knew at the time that these cases eontaiued different portions of machinery, which were intended for a sawing mill to be erected and used by the plaiutiffs in British Columbia. On the vessel's arrival, one of the cases was missing, and consequently the mill could not be erected. The plaintiffs were obliged to send to England to replace the lost parts, and thus great delay and loss of profitable business ensued. Compensation for the whole loss sustained was claimed, but it was held that the plaintiffs could only recover the cost of replacing the lost parts, including freight to Vancouver Island, with interest at five per cent, upon the amount, by way of compensation for the delay. It was considered that the master could not be supposed to know that the whole machinery would be useless without the parts that were lost, or that those parts could only be replaced in England (t). {p) Hammond v. Busaey, 20 Q. B. D. the profits derivable from the use of a 79 ; Urebert-Borgnis v. Nugent, 15 ship, or other chattel, see per Jervis, Q. B. D. 85 ; Elbinger Aotiengeaell- C. J., and WiUes, J., in Fletcher v. sohaft V. Armstrong, L. R., 9 Q. B. Tayleur, 25 L. J., 0. P. 65. 473. («) L. R., 3 0. P. 499. (?) Cory V. Thames Ironworks Co., (t) Cf. Baldwin 'v. L. 0. & D. Rail. L. R., 3 Q. B. 181. Co., 9 Q. B. T>. 582, infra, s. 725, where {r) Per Cookbum, 0. J., L. R., 3 Q. B. damage arose from a concealed condition p. 188. As to the manner of estimating of the goods : Sanders v. Stuart, 1 0. P. 816 THE DELIVERY. Sect. 715. 715. There has also been much difficulty and difference of lUustrations Opinion with regard to the exceptional cases admitted hy the rule cLTesTcom-^ in Hadley v. Baxendale. The following are illustrations :— municated In Smeed V. Foord (u), the defendant had agreed to supply a special cir- . . . . . „ cumstances. threshing machine to the plaintiff, a farmer, in three weeks from Jidy 24th ; but had failed to send it tiU September 11th. The plaintiff, as the defendant knew, wanted the machine for the pur- pose of threshing his wheat in the field ; his practice being to thresh it there, and send it to market at once. As the machine did not come, it became necessary to stack the wheat ; and when that had been done a thunderstorm occurred, which did great damage, as the plaintiff had no straw to thatch the stacks with. Hence it became necessary to kiln-dry a quantity of the wheat, and the quahty was thus much deteriorated. Further, the markets were lower when the threshing was completed than they had been when it should have been done. It was held that the defendant was liable for the expenses of stacking and kiln-drying, and for the deterioration of the wheat, these being losses which might reasonably be supposed to have been in the contemplation of the parties, at the time of the contract, as the probable result of a breach of it. But a further claim for the loss of value, owing to the fall in the market price, was disallowed, on the ground that it could not have been foreseen. In Hydraulic Engineering Co. v. McHaffie («), the defendants had contracted to manufacture for the plaintiffs a certain part of a machine which they were about to supply to one Justice ; and the defendants were informed that the machine was wanted by Justice at the end of August. Owing to improper delay of the defendants the plaintiffs could not deliver to Justice until the end of Septem- ber ; and he then refused to accept the machine. The plaintiffs recovered damages for the loss of profits which they would have made, on their contract with Justice, and for their useless expendi- ture on the other parts of the machine. In Gxebert-Borgnis v. Nugent («/), a contract had been made for D. 326, wliere a telegram in cipher was (a) 4 Q. B. D. 670. not transmitted. Improper refusal to /\n;/-ix>-i->oc a ■< tt . . , J. ;, f oi • (y) 16 Q. B. D. 85. See also Ham- register a transier of snares : SMnner v. City of London Mar. Ins. Corp., 14 "''"^^ ^- '^'^^^' ^0 Q. B. D. 79, po,t, Q. B. D. 882. s. 731. Of. Elbinger-AotiengeseUschaft («) 28 L. J., Q. B. 178. V. Armstrong, L. R., 9 Q. B. 473. THE MEASURE OF DAMAGES. 817 future deliveries of sheep skins of particular shapes and descrip- Sect. 715. tions ; and the vendor knew, at the time, that the purchaser was huying them to enable him to fulfil a contract he Had made, or was ahout to make, with a customer at Paris. The vendor failed to deliver, and the purchaser in consequence lost his profit on the suh- contract, and had to pay damages for failing to perform it. The skins could not have been procured elsewhere, unless they had been ordered some time in advance. It was held by the Court of Appeal, affirming Denman, J., that the purchaser was entitled to recover the profits he had lost ; and also compensation for his liability to his sub-purchaser, estimated by reference to what his liability might have been expected probably to be. " In a case of this sort, where there was no market into which the parties could go and buy against the broken contract, the natural result which must have been contemplated, at the time the original contract was made, must have been that there would be a HabiUty by the purchaser to his sub-purchaser. It was for the judge to do the best he could with regard to the amount which he might assess in respect of this. The limit of the liability must clearly be what the purchaser had to pay. But it does not follow that was necessarily what he would be entitled to charge against his vendors " (s). 716. But mere knowledge, or mere communication to a con- Merekaow- tractor, that the contractee may lose special advantages, or suSer gpeoial cir- special consequences, if the contract be not punctually performed, °o™aJ^°yg wOl not in all cases make the contractor answerable for those sufficient. special matters. In contracts of sale, where the purchaser has disclosed his position with regard to sub-purchasers, the inference is made that the vendor undertook liability for consequences of those special circumstances. "The proper inference, and one which the jury might infer, would be that he had contracted with the plaintiff upon the terms, that if he broke his contract he should be liable for all the consequences of a failure by the plaintiff to perform his sub- contract" (o). But it seems to be doubtful whether the same inference could properly be made from mere notice given to a carrier of special («) Per Bowen, L. J., 15 Q. B. D. p. 93. (a) Per Brett, M. R., in Gr61)ert-Borgnis v. Nugent, 16 Q. B. D. 85, p. 90. C. — c. 3 O 818 THE DELIVEKY. Sect-. 716. circumstances affecting the shipper's, or the consignee's, position in regard to' the goods. In British Columhia Saw Mill Co. v. Nettleship, WiUes, J., said {h) : " The knowledge must he hrought home to the party sought to he charged under such circumstances that he must know that the person he contracts with reasonahly believes that he accepts the contract with the special condition attached to it." And " knowledge on the part of the carrier is only important if it forms part of the contract. It may be that the knowledge is acquired casually from a stranger, the person to whom the goods belong not knowing, or caring, whether he had such knowledge or not. Knowledge in effect can only be evidence of fraud, or of an understanding by both parties that the contract is based upon the circumstances which are communicated." S?™^^- ., In Home v. Midland Eail. Co. (c), the plaintiffs were shoe Midland Eail. . ^ " ^ Co. manufacturers at Kettering, and had undertaken to supply 20,000 pairs of shoes at 4s. a pair, intended for the French army, to certain contractors in London. The last day for delivery was February 3rd, 1871. The last instalment of the shoes, 4,595 pairs, was delivered to the defendants to be carried to the contractors in London in time to be delivered there on February 3rd. And notice was at the time given by the plaintiffs to the defendants' station master at Kettering, that the plaintiffs were under a contract to deliver by the evening" of the 3rd of February, and that the goods would be thrown on the plaintiffs' hands if they were not so delivered. The defendants improperly failed to tender the shoes to the contractors until the 4th of February, when they were rejected and thrown on the plaintiffs' hands, and were sold at 2s. 9d. a pair ; that being the best price then obtainable. The plaintiffs claimed for the difference of Is. 3d. a pair which they had lost. It was held by the Court of Exchequer, and afterwards by a majority of the Exchequer Chamber, that they were not entitled to compen- sation on that footing, on the ground that the defendants had not had notice of the exceptional nature of the contract, and of the unusual loss that would result from a breach of it. But, both in the Court below and. in the Exchequer Chamber, opinions were expressed that mere notice of the exceptional cir- cumstances would not be enough. Blackburn, J., said (d) : " If it (i) L. E., 3 C. P, at p. 609. (d) L. E., 8 C. P. p. 141. Cf. Elbiu- (c) L. E., 7 0. P. 683 ; 8 C. P. 131. ger Actiengesellsohaft *. Aimetrong, THE MEASURE OF DAMAGES. 819 were necessary to decide the point, I should be mucli disposed to Sect. 716. agree with what my brother Martin has suggested, viz., that in order that the notice may have any efEect it must be given under such circumstances as that an actual contract arises on the part of the defendant to bear the exceptional loss." And Lush, J., who thought that the shoes had in fact been accepted by the defendants on the terms that they must be liable for the plaintiffs' loss if the shoes were not delivered in time, still agreed that the notice " can have no effect except so far as it leads to the inference that a term has been imported into the contract making the defendant liable for the extraordinary damages " (e). In any case, the notice of the special circumstances must be given, it would seem, at the time of entering into the contract, not afterwards (/). 717. Some of the judgments delivered in cases on this subject Semble, the seem to point to some further limitations, on grounds of remote- Hadiey v. ness, to the damages recoverable, which are not included in the Baxendale ' o ' expresses tno rule established by Hadiey v. Baxendale. It has been suggested, whole limita- rather than laid down, that damages are too remote which are not moteness. proximately, or not directly, the result of a breach of the contract^ (g'). L. E., 9 Q. B. 473, at p. 478 ; Simpson serve on a ship for an ordinary voyage, V. L. & N. W. EaU. Co., 1 Q. .B. D. discovered after sailing that she woiild 274 ; Soaramanga v. English, 1 Com. he employed in the service of the Peru- Ca. 99. vian government, at war with Spain. («) Jj. E., 8 C. P. p. 145. He ohjected to serve on those conditions, (/) Per Brett, L. J., Hydraulic, &o. and left the ship at Eio. It was held Co. V. McHaffie, 4 Q. B. D. 670, p. 676. that he was entitled to treat the oon- Cf. per Bramwell, B., in Gee v. L. & T. tract as having been broken ; and the Rail. Co., 30 L. J., Ex. 11, p. 16. question of damages arose. Whilst the (y) In Hoey v. Felton (31 L. J., C. P. plaintifi was on shore at Eio he was im- 105), an action for false imprisonment, prisoned as a Peruvian deserter for ten in which the plaintiff claimed damages days ; and during that time the ship for being prevented from obtaining a sailed away, taking some of his clothes situation, Erie, C. J., in delivering a whichwere on board. The jury assessed oonBidered judgment of the Court, said : the damages at 111. 10s. for loss of wages, — "The damage does not immediately 20?. for loss of clothes, and 30Z. for and according to the common course general damage for imprisonment and of events foUow from the defendant's otherwise. It was held (Kelly, C. B., wrong ; they are not known by common di^s.) that the damages for loss of experience to be usually in sequence. clothes and imprisonment could not be The wrong would not have been fol- recovered. lowed by the damage if some facts had Bramwell, B., said, " It is true that not intervened for which the defendant in one sense the defendant's conduct is not responsible." caused the imprisonment; but for that In Burton «. Pinkerton (L. R., 2 Ex. no doubt the plaintifl would not have 340), the plaintiff, who had engaged to been imprisoned. That, however, is not 3g2 820 THE DELIVERY. Sect. 717. ^jj^ ^jjQ limitation has teen indicated, that a loss is not a ground for damages where it has heen occasioned by causes which were enoiigli. Suppose, for instance, the plaintiff had met robbers whilst ashore, and been injured by them, he certainly could have recovered nothing from the defendant for such injury, yet the de- fendant might, in that case also, be said to have caused the damage. According to the ordinary rule, damage to be re- coverable by a plaintiff must inevitably flow from the tortious act of the de- fendant. It must be caused by him as the causa causans, and this imprisonment was not so caused." (Cf. per Lord Ellenborough in Boyce v. Bayliffie, 1 Camp. 58.) And Martin, B., said : "In respect of his imprisonment and loss of clothes he is, in my judgment, entitled to nothing. The defendant was not immediately concerned in causing either the one or the other." Kelly, C. B., thought the jury might take the imprisonment into account as a result of the state of things at Rio, where the defendant had compelled the plaintiff to land. In Hobbs v. L. & S. "W. Bail. Co. (L. E,., 10 Q. B. Ill), a man and his wife and two children were taken by the defendants, in breach of their con- tract, to Esher Station instead of to Hampton Court. They had in conse- quence to walk some miles to get home, being unable to get either lodging or conveyance to Esher. The night was wet, and the wife caught cold and was laid up. The jury awarded 81. damages for the inconvenience the plaintiffs had been put to, and 201. for the wife's illness and its consequences. But it was held by the Court that the 20?. could not be recovered ; and the verdict was re- duced accordingly. Cockbum, C. J., said: "I see very great difficulty indeed in coming to any other conclusion than that the 201. is not recoverable ; and when we are asked to lay down some principle as a guiding rule in all such cases, I quite agree with my brother Blackburn in the infinite dif&culty there would be in attempting to lay down any principle or rule which shall cover all such cases ; but I think that the nearest approach to anything hke a fixed rule is this : That to entitle a per- son to damages by reason of a breach of contract, the injury for which compen- sation is asked should be one that may be fairly taken to have been contem- plated by ihe parties as the possible result of the breach of contract. There- fore you must have something imme- diately flowing out of the breach of contract complained of, something im- mediately connected with it, andnot merely connected with it through a series of causes intervening between the immediate con- sequence of the breach of contract and the damage or injury complained of." *•»«»»*<< In tijia case the wife's cold and its consequences cannot stand upon the same footing as the personal inconvenience arisingfrom the additional distance which the plaintiffs had to go. It is an effect of the breach of contract in a certain sense, but removed one stage ; it is not the primary, but the secondary, consequence cf it." Blackburn, J., also considered the damage to be too remote. " On the principle of what is too remote it is clear enough that a person is to recover in the case of a breach of contract the damages directly proceeding from that breach of contract, and not too remotely. Although Lord Bacon had, long ago, referred to this question of remoteness, it has been left in very great vagueness as to what constitutes the limitation ; and therefore I agree with what my lord has said to-day, that you make it a little more definite by saying that such damages are recoverable as a man, when making the contract, would contemplate could fl.ow from a breach of it." " It were infinite for the lawto judge the cause of causes and their impulsions one of another ; therefore it contenteth itself with the immediate cause, and judgeth of acts by that, without look- ing to any further degree." Bac. Max. Eeg. 1, cited by Blackburn, J., in Sneesby v. L. & T. Hail. Co., L. K., 9 Q. B. 263, p. 267. THE MEASURE OP DAMAGES. 821 independent of the breach, if they came into operation subsequently Sect. 717. to that ; although but for the breach the loss would never have " occurred. But such a rule would be in conflict with many decisions. Where the proximate cause of a loss has itself been a direct consequence of the breach, it is clear that damages for that can be recovered (h). And the same is true where the proximate cause has been one which might probably, under ordinary circumstances, come into operation ; although it may have been subsequent to, and quite iadependent of, the breach itself («). It seems to follow, on the principles adopted in Hadley v. Baxendale, and subsequent cases, that although the subsequent cause may have been extra- ordiuary, the loss occasioned by it is a matter for damages, if the parties, when they entered into the contract, knew that that cause might probably operate. If this is so, the rule in Hadley v. Baxendale seems to be a com- plete general expression of the limitations which are set, on the score of remoteness, to the right to recover for losses actually sus- tained, which but for the breach would not have been sustained. The various dicta as to the directness and proximity of the con- nection of losses with the breach perhaps indicate tests which throw light on the application of the general rule, rather than add further limitations to those contained in it {k). 718. But a further limitation of importance to the right to TheplaintifE claim compensation for losses actually sustained is, that if there aggravate the has been an aggravation of the loss through unreasonable conduct °^; on the plaintiff's part, he cannot claim to charge that to the (A) Burrows «. March Gas Co. , L. K. , Mowbray v. Merryweather, (1895) 1 5 Ex. 67 ; L. E., 7 Ex. 96 ; Sneesby v. Q. B. 857 ; 2 Q. B. 641. L. &T. Rail. Co., L. E., 9 Q. B. 263 ; (A) Mr. Mayne, in a passage which 1 Q. B. D. 42 ; Bradshaw v. L. & Y. has frequently been quoted with ap- Eail. Co., L. E., 10 C. P. 189. proval, said: " The first, and in fact the (j) Smeed v. Foord, 28 L. J., Q. B. only, inquiry in all these cases is whether 178; Wilson v. DunvUle, 6 L; E., Ir. the damage complained of is the natural 210 ; Smith »; Green, 1 C. P. D. 92 ; and reasonable result of the defendant's MoMahon t>. Eield, 7 Q. B. D. 591, act. It will assume this character if it where the decision in Hobbs v. h. & S. can be shown to be such a consequence W. EaU. Co. was commented upon. as in the ordinary course of things would Also see Jones v. Adamson, 1 Ex. D. 60 ; flow from the act, or, in cases of contract, and The City of Lincoln, 16 P. D. 15. if it appears to have been contemplated Cf . Jamiesou v. Laurie, 6 Bro. Pari. by both parties. Where neither of these Ca. 474 ; Abb. (6th), 186, supra, s. 630 ; elements exists, the damage is said to be Sharp V. Powell, L. E., 7 0. P. 263 ; too remote." Mayne, Damages (4th), Clark V. Chambers, 3 Q. B. D. 327 ; p. 45. 822 THE DELIVEEY. Sect. 718. defendant (l). And if the plaintiff has, after the breach, aggra- vated his loss hy an independent course of action, reasonable or not, which has not been forced upon him by the breach, but has been voluntarily adopted by him, that cannot be charged to the defendant (»?). " In applying this general intention of placing the complainant in the same position as he would have been in if the contract had been performed to a case like the present, we must remember that the altered position to be redressed must be one directly resulting from the breach, and not from any act or omission of the com- plainant subsequent to the breach, and not directly attributable to it. It is not sufficient that it be an act or omission which would not in fact have taken place but for the breach." * * * * " The law never contemplates its being reasonable for him to create a loss for himself because the contract has been broken " (m). Thus, with regard to the shipowner, he cannot claim, as damages for the charterer's failure to load, a loss incurred by keeping the ship waiting for a cargo beyond the agreed lay days, and days on demurrage (o). Nor can he claim for a detention of the ship which the master might have avoided by a small sacrifice ; although the detention may have been owing to a default of the freighter. As where a ship was detained at the port of discharge, because the consignee of the goods had failed to pay a small sum for dues, which the master might have paid himself, and claimed from the consignee (p) ; or where the ship has been kept in order to preserve the shipowner's lien on the goods, when they might have been landed and warehoused (q). So with regard to the freighter. If the shipowner fails to pro- vide a ship as agreed, he must act reasonably. He may generally IJ) See Wilson v. The Newport Dock Q. B. D. 506 : Hammond v. Bussey, 20 Co., L. E., 1 Ex. 177; Eonneberg v. Q. B. D. 79. Ealkland Islands Co., 34 L. J., C. P. („) per Mtzgerald, B., Irvine v. Mid. 34; Glover v. L. & S. W. Eail. Co., q. w. e^^. Co., 6 L. E., Ir. 65, at L. E., 3 Q. B. 25. Welch «;. Anderson, pp. 63, 65. Infra, s. 723. 7 Asp. 177; Wilson v. Carmiohael, 21 / v t>v ui -n » t. e, t, „„, o n ,,L\',oc^ kit IV- mu (o) Bhght t). Page, 3 B. & P. 295, n. ; SesB. Oa. (4th) 732. After collision, The -r.. , ,-, , ^^ ,' „ .., 1 ' ' •c vj o TT oa-, rri, -Dii ■ ^. , Dimech v. Corlett, 12 Moo. P. C. 199 ; Eolides, 3 Hagg. 367 ; The Flymg Fish, „. , _ , • ' ■, r., _ . ^- '■"•' ' o.T T Aj iiQ ^\, rn. ■ ■ ,, Hick J). Tweedy, 63 L. T. 765. 34 L. J., Ad. 113; The Thuiingia, 41 ^ L. J., Ad. 44. (p) Mbller ». Jenks, 19 C. B., N. S. [m) Waddell v. Blockey, 4 Q. B. D, 332. And see Davis v. L. & N. W. EaH. 678 ; Baxendale v. L. C. & D. EaU. Co., Co., 32 L. T., O. S. 148. L. E., 10 Ex. 85. Cf . Loder ». Kekule, [q) See Mors le Blanch v. Wilson, 27 L. J., C. P. 27 ; Kiddle j>. Lovett, 16 L. E., 8 O.P. 227. THE MEASURE OF DAMAGES. 823 procure another ship, or other means of conveying his goods, and Sect. 718. may claim the consequent increase of cost as damages. But that will not he so if the suhstitution has heen made in an imprudent or extravagant manner (r). 719. And, again, compensation wiU not be allowed for losses The plaintiff which might reasonably have been avoided by the plaintiff; mUigate'the although they may have directly resulted from the breach. He ^™^" ought to take such steps as may be prudent, and reasonably within his power, to mitigate the loss(s). And expenses or losses pru- dently incurred in mitigating the ultimate loss will be allowed as part of the damage (t). Thus if a freighter, whose goods are left behind, can get another ship or means of conveyance for them, that must be taken into account in estimating his damages ; he cannot, by neglecting to take advantage of the other means, recover damages on the footing of a failure of his adventure (it) . 720. And so, too, with the shipowner. If the freighter fails to The ship- send goods for shipment as agreed, the shipowner, on having notice geek another that they will not be sent, must take such reasonable steps as are ^^^^ "^^^ within his power to obtain other goods in their place (*).■ And if fails to load. a charterer refuses to load the agreed cargo, the master should do what he prudently can to get another cargo, at as good a freight as may be had, and so avoid sailing empty («/). In Wilson v. Hicks (s) the action was for not loading under a charter, by which the ship was to proceed to Eangoon for orders (r) Le- Blanche ». L. & N. W. Eail. Johnson, L. E., 8 0. P. 167. Eoth Co., 1 C. P. D. 286 ; WaUer v. Mid. G. „. Taysen, 1 Com. Ca. 306. W. Bail. Co., 4 L. E., Ir. 376; infra, (ti) Irvine v. Mid. G. W. Eail. Co., 5 s. 723. L. E., Ir. 66 ; O'Connor v. Poster, 10 ,.__., ^. ., „„T T -ci o^n Watts, 418 (U. S.), cited Sedgwick, («) Wilsonf.Hicks, 26L. J.,Ex. 242 ' .. ,„„ ^ t j ri TT . -E,, J ,\-i e TT-Bor rrx. Damages, 11., 102. Cf . per Lord Camp- Hames (J.Edmonds, 10. &K. 686; The , ,, . „ ■, tj, j„oTTr>^ _,, , . , ^ ' . ^ , „ heU m Smeed v. Toord, 28 L. J., Q. B. Blenheim, 10 P. D. 167. But cf. per ,_„ ,oo a ii. tit v, ii oir t HT i- i . «.,,.■ ^ . „.. 178, p. 182; Ansetti). Marshall, 27L. J., Martm, B., in Smith v. McGuire, ^^ q ^ us L. J., Ex. 465, p. 472. •^^^- g^^ '^j^^ Argentino, 13 P. D. 61, («) See Tindall v. Bell, U M. & "W. 191 ; 14 A. C. 819 ; Aitken v. Ernst- 228; The Columbus, 3 W. Eob. 168; hausen, (1894) 1 Q. B. 773. Cf. Abbott The Empress Eugenie, Lush. 138. Cf. (5th), 179. The Marpessa, (1891) P. 403. As to (2^) The master has power to make new the obligation to obtain a new contract arrangements for the employment of the where a contract to be performed in the ship, where the charter party is broken future has been repudiated, see Brown at a foreign port. Pearson v. Goschen, V. Muller, L. E., 7 Ex. 319 ; Erost v. 33 L. J., 0. P. 266 ; supra, a. 44. Knight, L. E., 7 Ex. HI; Eoper v. (2) 26 L. J., Ex. 242. 824 THE DELIVEEY. Sect. 720. and load a full cargo of rice at Eangoon or Bassein. On March 15tli the ship received orders at Eangoon to proceed to Bassein (a place distant two or three days' sail) to receive orders from the charterer's agents. On April 2nd she was at Basseia ready for cargo. There was, however, no rice to be had there ; and on the 26th of April the agents proposed to the master that he should either go hack to Eangoon, at an extra freight, and load a cargo of rice there ; qr go to Moulmein and take a cargo of timher at an extra freight ; or to Madras and load there ; the agents guaran- teeing a good cargo and all extra charges. The master refused to' take any of these courses, and remained at Bassein until the lay days had expired ; after which he sailed to Penang. The result was a delay of five months, and a great loss of freight ; and plaintiff claimed full freight (less freight received), and expenses at Penang, and extra wages and provisions during the five months. Pollock, C. B., told the jury that in his opinion the captain was bound, upon the evidence, to go again to Eangoon ; that it was the duty of a master in such cases to do what was reasonable, and that unless there was some clear objection to what was proposed by the charterer's agent, his proposition should be acceded to as to some change of the vessel's course or cargo ; that the rule in all cases where a plaintiff sought to recover damages for breach of contract, where the amount of damages depended on the conduct of the party, was, that prima facie he was entitled to the full measure of damages, but the jury were to take into consideration all the cir- cumstances, and if the plaiatiS had acted unreasonably they might diminish the damages on that account. The jury found for much less than the plaintiff's claim. This direction was approved by the Court ; but a new trial was ordered on the ground that the damages were too small. In Hudson v. HiH («), the ship was to have been loaded with sugar at Barbadoes; but she arrived there after the sugar crop had been shipped, and the charterer's agents refused to load, and repudiated all liability under the charter party. They offered, however, to load a cargo of sugar at St. Vincent, about ninety miles off, if the master would go there ; and said that he might take their offer " under protest." But he refused to depart from the terms of the charter party without an indemnity, and, not obtaining this, remained at Barbadoes, insisting upon having a («) 43 L. J., C. P. 273. THE MEASURE OF DAMAGES. 825 cargo loaded there. After waiting more than the lay days he took Sect. 720. a cargo under a charter made with other persons. At the trial, Coleridge, 0. J., directed the jury, that the master might reasonably think that if he shipped a cargo, under protest, elsewhere than at Barhadoes, he might discharge the charterers from liability under the charter party. And, on motion for a new trial, this direction was held to have been right. Brett, J., said {b) : " The defendants' agents were insisting that there was no breach by them of the charter party, and the Lord 'Chief Justice pointed out that the captain may well have thought that if he took any one of the cargoes proposed by the defendants' agents, he might be deemed to have accepted it in substitution of the cargo which the defendants were originally bound to load at Barhadoes. His Lordship left this as an element to be considered by the jury in determining the rights of the parties ; that is the real effect of the summing up. I think the Lord Chief Justice right in the view taken by him. The defendants' counsel have urged that if the captain had availed himself, under protest, of the offer made by the defendants' agents, he would not have altered the liability of the defendants under the charter party now sued upon ; but, in my opinion, if the captain had shipped any cargo suggested by Messrs. Louis, he must have been deemed to accept it upon the terms proposed by them." In Dimech v. Corlett (c), it was held that the master was not bound to accept another charter party, which was offered by other persons, before the agreed days on demurrage had expired. For he was still bound to be ready for cargo under the original charter party, which had not been repudiated. In Harries v. Edmonds (d), the charterer failed to load under a charter for a cargo from Limerick to " London or some port in the channel." Parke, B., said that the master was not bound to reduce the damages by taking a cargo, which was offeted by others, to be carried to Oowes to wait for orders. 721. The freight earned upon substituted cargo must be taken Substituted into account in estimating the damages ; and if it has amounted ^^-^^^ ^^^^ to as much as should have been earned under the charter party, *<=°oi™t' after bringing in aU expenses, the damages for the breach will be only nominal. (*) 43 L. J., 0. P. p. 279. (e) 12 Moo. P. 0. 189, p. 231. {Oj I C. & K. 686. 826 THE DELIVEEY. Sect. 721. In Stanif orth v. Lyall (e), the sHp, after discharging her outward cargo at Port Jackson, was to proceed to such port or ports in New Zealand as the charterers or their agent at Port Jackson or in New Zealand should direct, or, in the absence of such direction, to the place in New Zealand where their principal agent might he settled, and should wait fourteen days for the decision of the agent whether to load a cargo or not. If the agent gave notice within the four- teen days of his determination not to load, the voyage in the service of the charterers was to be at an end after the fourteen days ; and in that case the charterers agreed to pay 500/. to the shipowner for the freight or hire of the ship for the voyage which should be so ended. The ship arrived in New Zealand, but there was no agent of the charterers there to load, or to give the notice to terminate the voyage ; and after waiting a reasonable time she sailed home by Batavia, where she obtained a cargo. On the whole this voyage was a more profitable one to the owner than the voyage with the agreed cargo would have been. It was held that the event on which the 500/. was to be paid had not happened, that the parties were therefore " in the same situation as if the charter party con- tained no stipulation on the subject ; " and that as no loss had been sustained the damages should be only nominal (/). Not so col- -^^t the fact that the shipowner has been incidentally benefited iTenefiL t ^^ ^^ breach of contract, in transactions with which the contract shipowner. has nothing to do, cannot be taken into account in estimating his damages. For example, an increase of freights earned by other vessels of the shipowner, in consequence of an improper detention of the chartered ship, does not diminish the liability of the charterer for the detention {g). In Aitken i\ Ernsthausen {K) a fire occurred when the ship was partly loaded, and destroyed part of the goods shipped. The charterers refused to ship any more cargo, on the ground that they were excused by an exception of fire. The shipowner completed the cargo with goods from other shippers, and also filled the space which had been occupied by the burnt goods. In an action against the charterers for not loading the remainder of a full cargo, they (e) 7 Bing. 169. Dock Co., L. R., 10 0. P. 300. Cf. The (/) And see Puller V. Staniforth, 11 City of Peking, 16 A. C. 438; The East, 232. Cf. Bell v. Puller, 2 Taun-. Mediana, (1900) A. C. 113. 285 ; supra, s. 652. (A) (1894) 1 Q. B. 773. Cf. "Weir v. {ff) Jebsen v. East and West India Girvin, (1900) 1 Q. B. 45. THE MEASURE OF DAMAGES. 827 claimed, in estimating the damages, to have credit for the whole of Sect. 721. the freight earned on the goods so shipped. It was held, by the Court of Appeal, that they were not entitled to credit for the freight on the goods taken in place of the burnt goods. The effect of the fire was to reduce the contract to one for so much of the ship as was not occupied by those goods. As to that space, the shipowner could do with it what he liked, provided he did not delay the voyage. 722. The amount of damages to* be paid upon a breach of a bill Damages may of lading or charter party may be fixed by the contract itself, the contract. Thus there may be an agreed sum payable for each day's deten- tion of the ship ; or for each day's delay in delivering the goods ; and a fixed dead freight may be payable for each ton short-shipped. But in most cases the amount must be settled according to general principles. Such a clause as " penalty for non-performance estimated amount Penalty of freight" (or some fixed sum), is frequently found in charters, charters, but practically it appears to have little effect. On the one hand, it does not limit the amount of damages which may be claimed («) ; on the other hand, it does not entitle either party to claim the amount of the penalty for a partial breach of the contract (Jc). In Dimech r. Corlett (l), however, the Privy Council allowed the plaintiff to recover the full estimated freight, claimed under a penalty clause in respect of a total failure of the charterer to load the ship. The only deduction made was of some freight earned by taking a substituted cargo ; and it seems to have been considered doubtful whether that deduction (which was made voluntarily) could have been insisted on. " The true sense," the Court said, "seems to be that, for any minor breach, the damages to be recovered within the amount of freight are the damages actually sustained, though it is not inconsistent with this that in case of an entire non-performance, such as a neglect or refusal to put any cargo on board, so that no freight could be earned, the parties had agreed that the damages should be the full amount of freight stipulated for in the instrument " {m). (i) Harrison v. Wright, 13 East, 343. 139 ; The Princess, 70 L. T. 388 ; Eay- Cf. Lea D. Whitaker, L. E., 8 0. P. 70. ner v. Eederiaktieholaget Condor, (1895) . (k) Dimech v. Corlett, 12 Moo. P. C. 2 Q. B. 289. 199. See Betts ■„. Burch, 28 L. J., Ex. (Z) 12 Moo. P. 0. 199. 267 ; Godard v. Gray, L. R., 6 Q. B. {m) 12 Moo. P. C. p. 230. But of. 828 THE DELIVERY. Sect. 728. The claim to the penalty, there, was considered to comprehend the whole of the shipowner's claims under the charter party, so that an additional demand of ten days' demurrage, for waiting for a cargo as required by the charter party, was disallowed. Where a charter party contained a guarantee hy the shipowner that the ship should sail with, if not before, any other vessel in the berth for Havana on a certain date, " under penalty of forfeiting one-half of the freight," it was held that the shipper might, on default, sue for the amount of the half freight, without proving any actual damages (n). "It is a sum payable on one event. It is not a sum to secure the performance of several matters." Failure to 723. Turning now to breaches of the contract by the shipowner, take in goods. "^^ have to consider, first, what damages are payable where he fails to supply a ship, or to take in goods as agreed. The freighter loses the benefit of the agreed means of convey- ance. He can, however, ordinarily obtain other means ; but that may involve delay, and also increased freight. If so, he is entitled to recover the amount of the extra freight and charges to which he may be put, and also compensation for the delay in the transit. Where the goods are waiting for shipment the cost of ware- housing, or otherwise preserving them, is an ordinary consequence of the breach, and forms part of the extra cost of the substituted mode of sending them. In Eeatherston v. Wilkinson (o). The Edith Emily was chartered to take a cargo of 1,300 tons of coal in the Northumberland Dock on the Tyne, during the first or second week of January, 1872, and carry it to Havre. The charterer then agreed with the Beb- side Colliery to take 1,300 tons at 10s. 6d. a ton in the first or second week of January ; and The Edith Emily was put on the turn-book for that time. She failed to take her turn, and the charterer had to substitute two other vessels for her at an increased rate of freight. Also, by the custom of the Tyne he could not obtain his coal until he had substituted the vessels which were to carry it ; consequently, as the price of coal had risen at Newcastle, he had to pay an increased price for the coal. It did not appear whether the price he could realise at Havre had increased corre- spondingly. And, in the absence of such evidence, it was held per Blaokburn, J., in Grodard -v. Gray, («) Sparrow i/. Paris, 31 L. J., Er. L. E., 6 Q. B. 139, p. 147; Abtott 137. (6th), p. 170. (o) L. R., 8 Ex. 122. THE MEASURE OF DAMAGES. 829 that lie was entitled to recover in respect both of the extra freight Sect. 723. and the extra price paid for the coal. Where a ship's husband had failed to carry (as he had cove- nanted) certain brandy for the freighters outwards, to the port at which they were to load a cargo of fruit, in consequence of which the freighters could not obtain the homeward cargo, and were com- pelled to pay damages for not loading it, it was held that they could not claim to recover the amount of those damages for the breach of the covenant (p). If the charterer cannot get a ship of the same kind or size, he is Engaging entitled to take the best reasonable substitute which is available to '^^"^ ^ ^' him (q). If necessary he may properly charter a larger vessel. The damages in that case will be the difference between the freight on the whole cargo of the substituted ship, and that which would have been payable for the agreed ship ; but giving credit for any profit made on the surplus cargo carried to fill up the larger ship (r) . In Irvine v. Midland Great Western Eail. Co. (s), the defendants had failed to provide wagons of a particular kind, as agreed, for the carriage of a quantity of hay to a place at which the plaintiff might have sold it to advantage. He consequently sold it where it lay, at a loss. It was held that he could not recover the amount he would have realised had the hay been carried to the place in- tended ; that the measure of damages, if the hay had been con- veyed to the market in some other reasonable manner (as might have been done), would have been the extra cost of doing so ; but that, as it was, the plaintiff was entitled to no damages, except in respect of a small portion of the hay which had been actually sent in other wagons. The judgment in that case turned on the fact that there were wtere no other reasonable means of carrying the hay. What the result i^jj^ge would have been had that not been the case was left doubtful. In avaiiaoie. a case decided in Pennsylvania, in which the defendant had failed to carry some wheat from Pittsburg to Philadelphia by canal, and it did not appear that any other conveyance was practicable, it was held that the measure of damages was the difference between the value of the wheat in Pittsburg, with the freight added, and the (p) Walton V. FothergiU, 7 C. & P. (r) MitoheU v. Kahl, 2 F. & F. 709, 392. per Cookburn, C. J. (?) Hinde v. LiddeU, L. E., 10 Q. B. («) 6 L. E., Ir. • S5. Of. WaUer v. 265. Mid. a. W. EaU. Co., i L. E., Ir. 376. 830 THE DELIVEEY. Sect. 723. Delay iu carrying and deliyering goods. Loss of the use of the goods. Special use. market price at Philadelphia at the time it should have arrived {t). Such cases seem a,nalogous to those in which the shipowner has failed to bring goods which have been shipped to their destination (as to which, see below, s. 727). 724. Next, as to improper delay in carryiag the goods, and delivering them at their destination. The losses to the freighter, of frequent occurrence in such cases, may be divided as follows : — (1) Loss by being deprived of the use of the goods, or their value ; (2) Loss by their deterioration or wasting, owing to the delay; (3) Loss by a fall in the market value of the goods at their destination ; (4) Loss of profits, and liabilities incurred upon a sale or contract for the use of the goods which the delay has frustrated ; (5) Loss by beiag prevented from usiag other property through want of the delayed goods. Of these, (4) and (5) have been already dealt with (m). With regard to (1), the loss of the ordinary use of the goods themselves, or of the price they would have realized, is clearly a matter for compensation. That is the necessary consequence of the delay, and the measure of it which has been adopted, in some cases, has been the amount of interest at a fair rate, for the time lost, upon the value of the goods («). The matter becomes more difficult when the use to which the goods would have been put was of a special kind. The question then is, as we have seen above, whether the carrier has received and accepted notice of that special object, so that the proper inference to drtw is that he contracted with reference to it. If there was no such notice, the special use to which the goods might have been put cannot be properly taken into account. Thus, in Wilson v. L. & T. Rail. Co. {y), it was held that the plaintiff could not recover the profits he would have made by manufacturing the goods (cloth) into caps, had they been de- livered within the proper time ; though the depreciation in value of the cloth, due to the season having passed, might be taken into account. In Simpson v. L. & N. W. Eail. Co. (s), the plaintiff delivered [t) O'CoBnor v. Foster, 10 "Watts, 418, cited Sedgwick, Damages, 357. And see Nourse v. Snow, 6 Greenl. 208, cited Angell, Carr. s. 485. («() Supra, Bs. 714—716. [x) See British Columhia Saw Mill Co. V. Nettleship, L. R., 3 0. P. 499, {y) 30 L. J., 0. P. 232. {z) 1 Q. B. D. 274. THE MEASURE OF DAMAGES. 831 some samples of goods, with a show tent, &c., to the defendants, Sect. 734. to be carried to a show ground at Newcastle, where he meant to exhibit the samples. They arrived too late for the show, owing to improper delay ; and the plaintiff thereby sustained expenses and wasted time to no purpose at Newcastle, and failed to make the sales at the show which he might have made had he had the samples. The Court considered that the plaiatiff's object in sending the goods was known to the defendants; and held that he was entitled to a sum which had been agreed upon as com- pensation for his loss of profit and loss of time (a) . Oookbum, C. J.; said : " The principle is now settled that when- ever the object of. the sender is specially brought to the notice of the carrier, or circumstances are known to the carrier from which the object ought in reason to be inferred, so that the object may be taken to have been within the contemplation of both parties, damages may be recovered for the natural consequences of the failure of that object " {b) . The description of the goods may itself notify the carrier that delay will diminish their value. Thus, in Schulze v. Gr. E. Eail. Co. (c), where a parcel deKvered to the defendants with notice that it contained samples had been delayed until the samples were of no use, the plaintiEPs were allowed to recover the special value they would have had if delivered within a reasonable time. 725. A loss by the physical deterioration or wasting of the Deterioration ,,,,1. ■,. Ill ^"^ wasting goods owing to the delay is an ordinary probable consequence, so of the goods, far as it is such as might be expected to happen to such goods in their ordiaary condition (d). If, however, the deterioration has been the result of some specially sensitive condition of the goods, which has not been brought to the notice of the carriers, the rule excludes a claim for damages for that special loss. In Baldwin ». L. C. & D. EaU. Go (e), some bales of rags were (a) Cf. Gr. W. Rail. Co. v. Redmayne, ately," on the goods, was held not to he L. R., 1 0. P. 329 ; Woodger v. Gr. W. a suffioient notice of a special purpose to Rail. Co., L. R., 2 C. P. 318 ; and Watson the carriers. V. Amhergate Rail. Co., 16 Jur. 448, {d) The Parana, lP.D.452; 2 P. D. where the plaintiff lost the chance of a 118 ; Hawes v. S. E. Rail. Co., 52 Xi. T. prize owing to delay in the carriage of a 614. Damage to cattle hy shortness of model. food, owing to delay on the voyage due (5) See Smeed v. Poord, 28 L. J., Q. B. to unseaworthiness of the ship, has been 178, cited stipra, s. 716. allowed in the U. S. ; The Caledonia, {«) 19 Q. B. D. 30. In Candyi-. Mid. 157 U. S. 124 (1896). Rail. Co., 38 L. T. 226, the marking (e) 9 Q. B. D. 582. Cf. Waller v. "Traveller's goods; deliver immedi- Mid. G. W. EaU. Co., 4 L. B. Ir. 376. 832 THE DELIVEEY. Sect. 725. delayed more tlian a fortnight, over a transit whicli would ordi- narily have occupied only twenty-four hours. The rags had been packed in a damp state, and they consequently heated and rotted, and became worthless. Had they been packed dry they would not have suffered. It was held that the defendants were not liable for the loss, as they had no notice of the condition of the rags. Loss of 726. Loss of market value is in some respects analogous to ty delay. deterioration of the goods; but from the point of view of the present discussion there is an essential difference between them. The fall in the market is not a consequence of the improper delay ; and where it is due to a fluctuation which is not of a periodical, regularly recurrent kind, so that it would not be antici- pated as a matter of common expectation, it is not one of those ordinary circumstances by which the carrier's liability may be increased (/). In The Parana {g), hemp and sugar had been shipped at Manilla and Ilo-Ilo for London. Owing to the defective con- dition of the ship's boilers the voyage occupied 127 days, which was thirty- seven days more than a reasonable allowance. The plaintifis claimed damages for loss of weight of sugar by drainage during this delay, for loss of interest upon the value of the cargo, and for loss of market on the hemp ; the price of hemp having fallen 20s. a ton during the last thirty-seven days of the voyage. The first two items of damage were allowed ; the third was dis- allowed by the Court of Appeal, reversing the judgment of Sir E. Phillimore. In giving judgment, Mellish, L. J., said : " There is no case, I believe, in which it has ever been held that damages can be recovered for delay in the carriage of goods on a long voyage by sea, where there has been what may be called a merely accidental fall in price between the time when the goods ought to have arrived, and the time when they did arrive — no case that I can discover where such damages have been recovered ; and the ques- tion is, whether we ought to hold that they ought to be recovered. If goods are sent by a carrier to be sold at a particular market— if , for instance, beasts are sent by railway to be sold at Smithfield, or fish is sent to be sold at Billingsgate — and, by reason of delay on (/) See per Cave, J., Hawes v. S. E. of. The Caledonia, 137 U. S. 124 (1895). KaU. Co., 52 L. T. 614, p. 516. But (y) 1 P. D. 452; 2 P. D. 113. THE MEASURE OF DAMAGES. 833 the part of the carrier, they -have not arrived in time for the Sect. 726. market, no doubt damages for the loss of market may he recovered. So if goods are sent for the purpose of being sold in a particular season when they are sold at a higher price than they are at other times, and if, by reason of breach of contract, they do not arrrive in time, damages for loss of market may be recovered. Or if it is known to both parties that the goods will sell at a better price if they arrive at one time than if they arrive at a later time, that may be a ground for giving damages for their arriving too late and selling for a lower sum. But there is in this case no evidence of anything of that kind.- As far as I can discover it is merely said that when the goods arrived in November they were likely to sell for less than if they had arrived in October, for the market was lower." And after referring to cases of carriage by railway (Ji), and suggesting a diilerence between those and cases of carriage by sea, he continued : — " The diiierenee between cases of that kind and cases of the carriage of goods for a long distance by sea seems to me to be very obvious. In order that damages may be recovered, we must come to two conclusions — first, that it was reasonably certain that the goods would not be sold until they did arrive ; and, secondly, that it was reasonably certain that they would be sold immediately after they arrived, and that that was known to the carrier at the time when the bills of lading were signed. It appears to me that nothing could be more uncertain than either of those two assumptions in this case. Groods imported by sea may be, and are every day, sold whilst they are at sea. If the man who is importing the goods finds the market high, and is afraid that the price may fall, he is not usually prevented from selling Ms goods because they are at sea. The sale of goods to arrive, the sale ^ of goods on transfer of bill of lading, with cost bills and insurances, is a common mercantile contract made every day. It may be that, from not having samples of the goods, or from not knowing what is the particular quality of his goods, the consignee may have a difliculty in selling them until they arrive, but that would not affect the question. Nor would it signify that the goods no longer belonged to the original consignee, but to a man who had acquired them by the assignment of the biU of lading whilst the (A) See Collard V. S. B. Rail. Co., 30 Co., 30 L. J., 0. P. 232. Butof.Hawea L. J., Ex. 393 ; Wilson v. L. & T. Kail, 4-. S. E. Rail. Co., 52 L. T. 514. c— C. 3 H 834 THE DELIVERY. Sect. 7Z6. Goods lost or damaged, value to be estimated as at the time and place for delivery. goods were at sea,. We were told that in this case the plaintiff was a person who had advanced money on the security of the hills of lading. That possibly may be the case ; but whether he has done that, or is the purchaser, would make no difference. It was said that the goods were sold, and that if the person who sells them does not suffer the damage, then the purchaser would suffer the damage. But that is pure speculation. If a man purchases goods while they are at -sea, no- person can say for what purpose he pur- chases them. He may purchase them because he thinks that if he keeps them for six months they will sell for a better sum, or he may want to use them in his trade. It is pure speculation to enter into the question for what purpose he purchases them. In this particular case the plaintiff did not sell the goods when they arrived, for he sold them some months afterwards, when a further fall had taken place in the market. Of course, he does not seek to recover from the defendant that additional loss, but it serves to iUustrata how uncertain it is whether he would have sold them. If he did not sell them when they did arrive, but kept them because he thought the market would rise, how can we tell that he would not have done exactly the same thing if the goods had arrived in time ? Therefore it seems to me that to give these damages would be to give speculative damages — to give damages when we cannot he certain that the plaintiff would not have suffered just as much if the goods had arrived in time. According to the principles on which the Courts have acted in all such speculative and uncertain cases, damages ought not to be recovered " (i). 727. It remains to consider cases in which the carrier has wholly failed to deliver the goods; or has delivered them damaged. Apart from special circumstances, which may affect the case in such ways as we have been considering, the value of the goods for which compensation must be made, when they have been lost, or damaged, is that which they would have had at the time, and place, at which they ought to have been delivered (Ji). And this is (j) This decision was followed in The Hotting Hill, 9 P. D. 105, where tie claim was for damages owing to a colli- sion. Cf. Smith y. Tregarthen, 57 L. T. 68, where the goods were brought for- ward in the wrong steamer, and so were delayed. {k) Brandt v. Bowlby, 2 B. & Ad. 932 ; Rico v. Baxeudale, 30 L. J., Ex. 371 : O'Hanlan v. Or. W. Rail. Co., 34 L. J., Q. B. 154 ; TheThyatira, 8 P. D. 155 ; Gt. Indian Pen. Rail. Co. v. Turn- bull, 63 L. T. 325 ; Gillingham v. Demp- sey, 12 S. & R. 188 (U. S.), cited Ang. Carr. s. 482. Cf. Parker v. James, 4 Camp. 112; Sedgwick, Damages, II., 96 ; Aug. Carr. ss. 482 — 485. The same measure of damages was adopted in an THE MEASURE OF DAMAGES. 835 true although the freighter who is claiming may have contracted Sect. 7S7. to sell the goods at a less price than they would have realised on arrival (/). The value is ordinarily estimated by reference to the market price at the place. But if there is no market at the desti- nation in which such goods can be replaced, so that they could only be bought there, if at all, at a fancy price, that would not be the proper measure of their value. In O'Hanlan v. Great "Western Eail. Co. (m), it was held that the value in such a case must be ascertained by considering their cost at the place of manufacture, and the expenses of transit, and adding a reasonable sum for profit to the importer. Any freight or charges which the freighter would have had to pay in order to get the goods must be deducted from the estimated value. But freight paid in advance is not to be deducted, although the shipowner may have made an allowance to the freighter for insurance of the advance (m). Where the goods have been sold at a port of refuge to pay for Sale at port repairs to the ship, the freighter, as we have seen (o), is entitled to claim the amount of the proceeds, or, if the ship arrives, the amount they would have realised at the port of destination, after deducting freight and charges. The same is true where the sale has been wrongful. But if the goods were sold in a damaged, or perishing, condition, and the shipowner was not responsible for that, their condition must be taken into account. The amount to be ascertained is what the goods would have been worth to their owners, had they not been sold, as they lay, and paying regard to the obligations of the carrier under the contract (p). 728. Where the claim for damages is apart from contract, as for Wrongful a wrongful act done to the goods, the rule which excludes losses goods, that arise from special circumstances, not anticipated beforehand, does not apply. If the plaintifE has been wrongfully deprived of goods which he could not replace, and if they had a peculiar value to him, or if through want of them he has sustained a special action against the master, who signed (m) 34 L. J., Q. B. 154. the hill of lading although the goods (k) Bodocanaohi v. Milburn, 18 Q. B. came forward later in another ship. D. 67 ; reversing 17 Q. B. T>, 316, cited Smith n. Tregarthen, 57 L. T. 58. supra, s. 566. (I) Eodooanaohi v. Milburn, 18 Q. B. (o) Supra, 6. 320. D. 67 ; reversing 17 Q. B. D. 316. Of. [p) See Ewhank v. Nutting, 7 0. B. Magnln v. Dismore, 62 N. T. Rep. 35. 797 ; Aoatos v. Bums, 3 Ex. D. 282. 3h2 836 THE DELIVERY. Sect. 728. detriment, he is entitled to compensation for the loss of that value, or for that detriment, although the wrongdoer may have had no notice of the circumstances which caused it(g'). "The actual value is fixed by circumstances at the time of the demand, and no notice of the special circumstances could then affect the actual value of the goods withheld from their rightful owner, who thereby sustains an 'actual present loss,' which appears to us to be a convertible term with ' actual value'" (r). If, however, the wrong be a continuing one, as an improper detention of goods, it may be that a special loss sufEered in conse- quence will not be recoverable unless the wrongdoer was aware of the special injury he was causing (s). Losses by In cases of collision it has been held that compensation must be paid for loss of the business on which the ship was engaged at the time (t). And where a ship was prevented by a colKsion from proceeding to take in cargo under a profitable charter, so that the charterers were entitled to cancel the charter, and did so, that was held to be a matter to be taken into account (m). Presumably the same principle would apply with regard to cargo damaged by a collision. But it has been held that a loss by a fall in the market price during a delay caused by a collision is not to be taken into account («). Effect of mis- 729^ ^ question of some difficulty arises where the goods have descnption 01 -^ " ^ ° goods in. bill been shipped under a wrong description. If that' has been done fraudulently, and the carrier has been deceived as to their quality and value, it has been held in several cases that he is not responsible in damages for them (y). (j) Bodley v. Eeynolds, 8 Q. B. 779 ; plation of the parties. Wood V. Bell, 25 L. J., Q. B. 148 ; (»•) Per MeUor, J., delivering the Trance v. Gaudet, L. E., 6 Q. B. 199. judgment in France v. Gaudet, L. E., 6 "The rule with regard to remoteness of Q. B. 199, p. 205. damage is precisely the same whether (») Per Mellor, J., ibid. the damages are claimed in actions of {i) The Betsey Gaines, 2 Hagg. 28 ; contract or of tort." Per Brett, M. E.^ The Eisoluto, 8 P. D. 109. The Notting HiU, 9 P. D. 105. I would («) The Star of India, 1 P. D. 466 ; suggest that there is this difBerence, that The Gonsett, 5 P. D. 229 ; The Kate, in cases of tort the inquiry is whether (1899) P. 165. Gf. The Argentine, 13 the damage was the natural consequence P. D. 61, 191 ; 14 A. 0. 519. of the circumstances in fact existing ; {xj The Notting TTill, 9 p. D. 105. whUe in oases of contract only those (y) Gibbon v. Paynton, 4 Burr. 2298 ; circumstances are to be taken into Batson v. Donovan, 4 B. & Aid. 21. account which may reasonably be sup- And see per Parke, B., in Walker v. posed to have been within the oontem? Jackson, 10 M. & W. 161, p. 168. THE MEASUEE OP DAMAGES. 837 Thus, in Belfast and Ballymena Eail. Co. v. Keys(z), it was Sect. 729. held that the company were not responsible for merchandise which the plaintifE had taken as personal luggage when he knew that they required all merchandise carried to he paid for. Lord "West- hury said (a) : " Under these circumstances there could not exist, in law or in reason, any contract whatever between the plaintiff and the company touching these goods, upon the breach of the perform- ance of which contract the plaintiff could have a right against the company." Where a misdescription has occurred by mistake, there has been some difference of opinion as to whether the shipowner is respon- sible at all under the contract ; and if he is responsible it is, it seems, doubtful for what (b). The better opinion appears to be that, though the thing delivered and received to be carried may have been misdescribed, the contract to carry has in fact been made with reference to it, and to nothing else. And if so, the carrier's liability would appear to extend to the whole value of that ; unless the shipper is precluded from saying that there has been a mis- description. ' When there has been no mistake, but the contract and the rate of freight have been based upon an assumed fictitious state of values of the things carried, the shipper will be bound by that (c). But it has not been decided whether the same holds good in a case of mistake. 730. It is no defence to a claim for a loss of goods that another Effect of person is liable to give them up, or to pay their value. But the tMrd^pCTsons. right of recovery against the other may be taken into account in estimating the amount of damage suffered {d). The shipowner is not, however, entitled to any benefit from the insurancea . fact that insurers have paid, or are liable to pay, in respect of the ^^^ account, loss (e). Where the goods are not the property of the person who is LiabUity for claiming under the contract in respect of them, he may still be ^ ^°° ^ (z) 9 H. L. C. 556. pp. 205, 206. See Hiort v. L. & N. W. (a) 9 H. L. 0. p. 873. Eail. Co., 4 Ex. D. 188. Cf. Mayne, (J) See the judgments in Lebeau v. Damages, p. 102. Gen. Steam Nav. Co., L. E. 8 0. P. (e) Tatesv.Wbyte, 4Bing. N. C. 272 ; 88 ; cited supra, s. 72. Bradbum v. G. W. EaU. Co., L. E., 10 if) M'Canoeji. L. feN. W. Eail. Co., Ex. 1. And see Jebsen v. East and 34 L. J., Ex. 39. West India Dock Co., L. E., 10 0. P. M Per Bayley and Holroyd, JJ., 300; Hill i;. Scott, (1895) 2 Q. B. 371 ; Morris v. Eobinson, 3 B. & C. 196, 713. 838 THE DELIVERY. Sect. 730. entitled to their value, if he is Kable for that to another (e) ; or is entitles plain- Suing on behalf of the owner (/). tiff to claim. i- j. Costs incurred 731. Where, in consequence of a breach by one of the parties to ttird*^°erson^ a contract actions have been brought against the other by third o-wiug to tke persons, the question arises whether he can recover the costs he has thus incurred, or has become liable to pay, as being part oi his damages by the breach. In Mors-le-Blanch v. Wilson (g), charterers brought their "action against sub-shippers for detaining the ship at the port of discharge, and claimed to recover costs which they had incurred in defending an action for the same matter brought against them by the ship- owner. It was held that they were entitled to these costs ; the jury having found that it was a reasonable thing for the charterers to defend the action. But this decision was disapproved of by the majority of the Exchequer Chamber, in Baxendale t". L. C. & D. Eail. Co. {h), on the ground that the two contracts were inde- pendent of one another. Lush, J., however, distinguished Mors- le-Blanch V. Wilson on the grounds that the amount of demurrage ascertained in the first action would necessarily be the measure of damages in the second, and that the jury had expressly found that the charterer's course had been reasonable. And the subsequent decision of the Court of Appeal in Ham- mond v. Bussey («) shows that the question in each case is, whether the costs which have been incurred were damages which may reasonably be supposed to have been in the contemplation of both parties, at the time they made the contract, as a probable result of the breach of it. In that case the defendant had con- tracted to supply the plaintiffs with " steam coal " for use on steamships, knowing that the plaintiffs were buying to resell the coal as fit for that purpose. The coal supplied was not fit for the purpose, and the defect in it was one which could not be ascertained by inspection. Claims were in consequence made on the plaintiffs (c) Randall v. Koper, 27 L. J., Q. B. v. Smith, 12 L. J., C. P. 203, where 266; Crouch )). L. & N. W. Rail. Co., charterers who had been sued by shippers 2 C. & E!. 789. Cf. Wilson v. Car- recovered the loss from the shipowner, miohael, 21 Sess. Ca. (4th), 732, where (A) L. R., 10 Ex. 36. Cf. Fisher v. the claim based on liability to another Val de Travers Asphalte Co., 1 C. P. D. was disallowed because it might hare 611 ; Evans v. Bullock, 38 L. T. 34 ; been avoided if skill had been used. CoUen v. Wright, 27 L. J., Q. B. 215 ; {/) See Lloyds v. Harper, 16 Ch. D. Godwin v. Francis, L. R., 6 C. P. 295. 290 ; Robertson v. Wait, 8 Ex. 299. (i) 20 Q. B. D. 79. Cf. Bramley v. is) L. R., 8 C. P. 227 ; and see Blyth Chesterton, 27 "h. J„ 0, P. 23. THE MEASURE OF DAMAGES. 839 by their sub-purchasers ; and as the defendant repudiated liability Sect. 731. and declined to interfere, the plaintiffs defended the action brought for those claims and thus incurred costs as well as damages. It •was held by the Court of Appeal, aflfirming the ruling of Field, J., that the plaintiffs, under the circumstances, acted reasonably in defending the action, and that the costs consequently incurred •were recoverable by them from the defendant as damages under the rule in Hadley v. Baxendale. Lord Esher said (k) : " To my mind it is perfectly clear that, according to a reasonable business view of the reasonably probable course of business, the parties may be supposed to have contem- plated at the time when the contract was made, as the inevitable or at any rate the highly probable result of a breach of it, that there would be a law suit between the plaintiffs and their sub- vendees, in which it would be reasonable for the plaintiffs to defend, and in which, if it turned out that there was a breach of the warranty, the plaintiffs would lose, and that they would thereby necessarily incur costs." This was followed in Agius v. Great Western Colliery Co. (l), where the plaintiff was allowed his costs of defending the former action taxed as betweep. solicitor and client ; giving credit for so much of them as he had recovered from the plaintiffs in that action, under a successful plea of payment into court. (i) 20 Q. B. D. at p. 93. {I) (1899) 1 Q. B. 413 (C. A.). 841 APPENDIX A. The following are tlie forms of bills of lading approved by the Asso- ciation for the Eeform and Codification of the Law of Nations at their Conferences at Liverpool, in 1882, and at Hamburg, in 1885 : — 1. LiTEEPOOL Bill of Lading, 1882. Shipped, in apparent good order and condition, by , in and upon the good steam ship called the , now lying in the port of ; and bound for , with liberty to call at any ports, in any order, to sail without pilots, and to tow and assist vessels in distress, and to deviate for the purpose of saving life or property; also with liberty, in case the ship sbaJl put iato a port of refuge for repair, to tranship the goods to their desti- nation by any other steamer (vessel) ; and with liberty to convey goods in Hghters to and from the ship, at shipper's risk. Such lighterage to be at ship's expense, except that if the cargo is necessarily landed in lighters, the ship being unable to reach the port of destination, the cost of such hghterage shall fall on the cargo being marked and numbered as per margin, and to be delivered in the like good order and condition at the aforesaid port of The act of God, perils of the sea, fire, barratry of the master and crew, enemies, pirates, and thieves_, arrest and restraint of princes, rulers, and people, collisions, stranding, and other accidents of navigation excepted, even when occasioned by the negligence, default, or error in judgment of the pilot, master, mariners, or other servants of the shipowners. Ship not answerable for losses through explosion, bursting: of boilers, breakag:e of shafts, or any latent defect in the machinery or hull, not resulting from want of due (Uligence by the owneiB of the ship, or any of them, or by the ship's husband or manager ; nor for decay, putrefaction, rust, sweat, atiange of character, drainage, or leakage arising from the nature of the goods shipped or the insufficiency of the packages ; nor for any damage or loss occasioned by the prolongation of the voyage, nor for obliteration or absence of marks, numbers, addresses, or descriptions of goods shipped unto , or to his or their assigns, freight, primage and charges lor the said goods, as per margiu, to be paid on delivery by . Preight to be paid in cash, without discount, at the rate of exchange lor bankers' bills at sight, current on the day of the ship's entry inwards at the custom- house. General average payable according to York-Antwerp Eules. In witness whereof, the master or agent of the said ship hath affirmed to three bills of lading, all of this tenor and date (drawn as first, second, and third), the first of which bills being accomplished, the others to stand void. 1. — Quality -marks, if wny, to he of the same size as and contiguous to the leading marhs ; and if inserted in the shipping notes accepted hy the mate, the •master is hound to sign hills of lading conformahle thereto. 2. — Ship not liable for breakage of glass, earthenware, or china. 3. — Not accountable for goods of any description which are above the value of 100?. per package, unless the value he herein expressed and a special agreement 842 APPENDIX A. Appendix A. made; nor for gold, silver, bullion, specie, docv/ments, jewellery , pictures, emhroi- deries, or works of art, silJcs, furs, china, watches, or clocks, unless iills of lading are signed therefor, with the value therein expressed, and a special agreement be made. 4. — Shippers accountahle for any loss or damage to ship or cargo caused hy inflammable, explosive, or dangerous goods, shipped without full disclosure of their nature, whether such shipper shall have been aware of it or not, and whether such shipper be principal or agent; such goods may be thrown over- board or destroyed hy the master or owner of the ship at any time without compensation. 0. — All fines or damages which the ship or cargo may incur or suffer by reason of incorrect or insufficient marking of packages or description of their contents, shall be paid by the shipper or consignee, and the ship shall have a lien on the goods of such shipper or consignee for the amount thereof. 6. — Goods delivered to the ship, whilst on quay awaiting shipment, to be at shipper's risk, as regards all the perils excepted in this bill of lading. 7.- — Goods once shipped cannot be taken aivay by the shipper except upon pay- ment of full freight, together with the expenses of landing them, and compensation for any damages sustained by the owners through such taking away. 8. — In case the ship shall be prevented from reaching her destination by quarantine, blockade, ice, or the hostile act of any power, the master or owners may discharge the goods into any depot or lazaretto, or at any near available port ; all expenses thereby incurred upon the goods to be borne by the owners or receivers thereof. 9.- — Ship to have a lien on all goods for payment of freight and charges, including back freight, demurrage, forwarding charges, and charges for carriage to port of shipment, whether payable in advance or not. 10. — Jf the ship is able to carry the goods to their destination, but the goods, by reason of damage sustained or of their own nature, are not fit to be carried all the way, and if such goods have received an enhancement of value hy reason of their partial carriage, the ship shall be entitled to a pro rata freight in proportion to the distance performed, which freight is in no case to exceed the amount of such enhancement of value. Pro rata freight is admissible in no other case than that dealt with in the preceding sentence, unices there be an acceptance of the goods hy the shipper or owner of the goods. 11. — When the goods are fit to be carried to their destination, but the ship is unable to carry them, the shipowner may earn full freight by sending the goods to their destination at his own expense ivithin reasonable time in another bottom ; this right is not affected by an abandonment of the ship by her crew, or to the underwriters, and the ship is to be, for this purpose, deemed unable to carry the goods to their destination, if she either cannot he repaired at all, or cannot he repaired except at an expense exceeding her value when repaired. 12. — Full freight is due on damaged goods. 13. — No freight is due on any increase in bulk or weight caused by the absorp- tion of water during the voyage. 14. — To the extent of the value of the lien, freight which, by the terms of the hill of lading, is made payable by the consignee, cannot he demanded from the shipper after the master has parted with his lien on the goods. 15. — The goods, if not taken by the consignee immediately on landing, or within such further time as is provided hy the regulations of the port of dis- charge, may he stored by the master, at the expense and risk of the owner of the goods. The master shall be entitled to recover from the shipper the difference betiveen the amount of freight stipulated in the hill of lading and the proceeds of the goods, should the consignee neglect or refuse to receive the same. 16. — In the event of claims for short delivery, when the ship reaches her destination, the price to he the market price at the port of destination on the day of the ship's reporting at the custom-house, less all charges saved. Notice. — In accepting tMs bill of lading, tie owner of the goods and the shipper expresBly accept and agree to all its stipulations and conditions, ■whether -written or printed. Dated in , this day of , 188 . Weight, quality, and contents unkiwwn. APPENDIX A. 843 2. HAMBUEGt Bill of Ladino, 1885. Appendix A. Shipped in apparent good order and condition on board the sUp , whereof is master for the present voyage , now lying in the port of and hound for , being marked and numbered as per margin, to be carried and delivered at the port of unto or order on his paying freight for the said goods at the rate of Subject to all the conditions of the Hamburg Rules of Affreightment. In witness whereof the master of the said ship has signed bills of lading, all of this tenor and date, one of which being accomplished the others to stand void. Dated at , 188 . Signed, , Master. And "The Hamburg Eules of Affreightment," which are thus incorporated, are as follows : — I. — The shipowner shall be responsible that his vessel is properly equipped, manned, provisioned, and fitted out, and in all respects seaworthy and capable of performing her intended voyage, and for the stowage and right dehvery of the goods. He shall also be responsible for the barratry, faults, and negligence, but not for errors in judgment of the master, officers, and crew. n. — The shipowner shall not be responsible for loss or damages arising from vis major, public enemies, civil commotions, pirates, robbers, fire, explosion, bursting of boilers, breakage of shafts or screws, nor for any latent defect in hull or machinery, not resulting from want of due diligence by the owner, husband, or manager of the ship, nor for the cargo's decay, putrefaction, rust, sweat, change of character, drainage, leakage, breakage, or any damage arising from the nature of the goods shipped, or such defective packing as could not be noticed externally, nor for the obliteration of marks, numbers, addresses, or descriptions of goods shipped, nor for any damage or loss caused by accidental prolongation of the voyage, nor for other accidents of the seas, unless it is proved that such exception comes under Eule I. m. — Steamship to be at liberty to call at any intermediate ports, to sail without pilots, provided such sailing does not constitute a fault of negligence, to tow and assist vessels in distress, and to deviate for the purpose of saving life or property ; also at liberty, in case the ship shall put into a port of refuge for repairs, to tranship the goods to their destination by other vessels, and at liberty to convey goods in lighters to and from the ship at shipper's risk, but at ship's expense. IV. — Quality-marks, if any, to be of the same size as and contiguous to the leading marks ; and if inserted in the shipping notes accepted by the mate, the master is bound to sign bills of lading conformable thereto. V. — Ship not accountable for gold, silver, bullion, specie, documents, jewellery, works of art, or other precious articles, unless bills of lading are signed therefor with the value therein expressed, and a special agreement be made. "VI. — Shipper accountable for any loss or damage to ship or cargo caused by inflammable, explosive, or dangerous goods, shipped without full dis- closure of their nature, whether such shipper shall have been aware of it or not, and whether such shipper be principal or agent; such goods may be thrown overboard or destroyed by the master or owner of the ship at any time without compensation. VII. — Shipper and consignee to be responsible for all fines or damages which the ship or cargo may incur or suffer by reason of incorrect or insuffi- cient marking of packages or description of their contents. VIII. — Goods delivered to the ship while on quay awaiting shipment to be considered as taken on board as far as the shipowner's responsibihty is concerned. IX. — Goods once shipped cannot be taken away by the shipper except upon payment of full freight and compensation for any damages sustained by the shipowners through such taking away. X. — In case the ship shall be prevented from reaching her destination by quarantine, blockade, ice, or the hostile act of any power, the master or 844 APPENDIX A. Appendix A. owners may disoharge the goods into any depot or lazaretto, or at the nearest ' convenient port ; the shippers and consignees to be responsible for all expenses thereby incurred upon the goods. XI. — No goods can be abandoned for freight. This rule does not apply to liquids. XII. — If the goods be not taken by the consignee -without delay or ■within such time as is provided by the regjulations of the port of discharge, they may be stored or discharged into hulks or lighters by the master at the expense and risk of their owners ; provided always, that due notice is given of the arrival of the ship and the commencement of the discharge, and that the same does not begin at night or at any unreasonable hour. XIII. — Ship to have a lien on all goods for payment of freights and charges, including dead freight, demurrage at the port of destination, forwarding charges, charges for carriage to port of shipment, and the fines, damages, and expenses mentioned in Eules VII. and X., and for general average claims, and to be entitled to recover from the shipper the difference between the amount of freight stipulated in the bill of lading and the pro- ceeds of the goods should the freight not be paid otherwise. XIV. — To the extent of the value of the Hen, freight, which by the terms of the bill of lading is made payable by the consignee, cannot be demanded from the shipper after the master has parted with his lien on the goods. XV. — In the event of claims for short delivery when the ship reaches her destination, the price to be the market price at the port of destination on the day of the ship's entry at the custom-house, less freight and charges saved. XVI. — Weight, measure, quality, contents, and value, although mentioned in the biU of lading, to be considered as unknown to the master unless expressly recognized and agreed to the contrary. Simple subscription not to be considered as such agreement. XVII. — General average to be paid according to York and Antwerp Eules. XVIII. — Freight, if payable at port of destination, to be paid immediately on delivery in cash, without discount, and in the currency stipulated in the bill of lading or at consignee's option, at the rate of exchange of bankers' bills at sight current on the day of the ship's entry at the custom-house. XIX. — Nothing contained in these rules is to be construed so as to authorize an agreement in respect to anything not expressed in these rules. Neither of these bills of lad^g seems to have met with any practical success. And one main principle of the 1885 bill of lading was dis- sented from by the Conference of the same Association which met in London in 1887, when the following resolution was passed : — ' ' That the following principle adopted by the Conference of this Association, held at Liverpool in 1882, be now confirmed and adopted as the basis of discussion : That the principle of the common form of bill should be this — that the shipowner, whether by steam or sailing ship, should be liable for the faults of his servants in aU matters relating to the ordinary course of the voyage, such as the stowage and right delivery of the cargo, and other matters of this kind ; but on the other hand, the shipowner should be exempt from liability for everything which comes under the head of accidents of navigation, even though the loss from these may be indirectly attributable to some fault or neglect of the crew." In 1893, at a Conference of the same Association held at the Guild- hall in London, and attended by representatives from many associations of merchants, shipowners, and insurers, a fresh attempt was made to formulate rules for general adoption, to be embodied in bills of lading. This resulted in the "London Conference Eules of Affreightment, 1893," which were as follows : — 1. The shipowner shall not be responsible for loss or damage arising APPENDIX A. 845 from the act of God, perils of tlie seas, or otKer navigable waters, barratry Appendix A. of the master or crew, enemies, pirates, civil commotions, robbers, thieves, arrest or restraint of princes, rulers, or people, riots, strikes, or stoppage of labour, capture or seizure or arrest under civil process ; nor from fire on board, in hulk or craft or on shore, collisions, strandings, explosions, break- down of machinery or tackle, or other accidents at sea, in other navigable waters, or in port, even when occasioned by negligence, default, or error in judgment of the pilot, master, crew, or other servants of the shipowner ; nor from heating, decay, putrefaction, rust, sweat, change of character, drainage, leakage, breakage, or any loss or damage arising from the nature of the goods, or the insufficiency of packages, or vermin ; nor for land damage ; nor for the obliteration, errors, instifficiency or absence of marks, numbers, address, or description ; nor for risk of hulk, craft, or transhipment. 2. The shipowner shall be responsible for loss or damage arising from any unfit state of the vessel to receive the goods, or any unseaworthiness of the vessel when she sails on the voyage. But any latent defect in hull, machinery, equipment, or fittings shall not be considered unfitness or un- seaworthiness, provided the same do not result from want of due diligence of the shipowner or of the ship's husband or manager. 3. The shipowner shall be responsible for loss or damage arising from want of reasonable care and skill in the loading, stowage, or discharge of the goods. Shipowners' responsibility to cease on delivery from the ship's tackle. 4. The ship to be at liberty to call at any port in order, to sail without pilots, and to tow and assist vessels in distress, and to deviate for the purpose of saving life or property. 5. General average payable according to York- Antwerp Eules. N.B. — Tlie above rules are proposed for those trades where no form of bill of lading has been already settled by mutual agreement between shipowner and merchant. The following forms have been adopted in the " Mediterranean, Black Sea, and Baltic trades, and in the New Tork trade, respec- tively ; in each case after long negotiations, in which both merchants and shipowners took part : — 1. Geneeal Pbodtjcb, Mediteeeanean, Black Sea, ajtd Baltic Steamee Bill of LADisra, 1885. Shipped, in good order and condition, by in and upon the good steamship , now lying in the port of , and bound for , with hberty to call at any ports on the way for coaling or other necessary purposes, being marked and numbered as per margin, and to be delivered in like good order ajid condition at the port of , unto , or to his or their assigns, he or they paying freight on the said goods on delivery at the rate of , and charges as per margin. It is mutvAxlly agreed that the ship shall have liberty to sail without pilots ; to tow and assist vessels in distress ; to deviate for the purpose of saving life; to convey goods in lighters to and from tlie ship at the risk of the owners of the goods but at ship's expense ; and in case the ship shall put into a port of refuse for repairs, to tranship the goods to their destination by any other The act of God, perils of the sea, fire, barratry of the master and crew, enemies, pirates, and robbers, arrests and restraints of princes, rulers, and people, and other accidents of navigation excepted. Strandings and collisions,^ and all losses and damages caused thereby, are also excepted, even when occasioned by negligence, default, or error in judgment of the pilot, master, mariners, or other servants of the shipowners, hut nothing herein contained shall exempt 846 APPENDIX A. Appendix A. the shipowner from liahility to pay for damage to cargo occasioned ly lad stowage, hy improper or inaufflcient dunnage or ventilation, or by improper opening of valves, sluices, and ports, or hy causes other than those above excepted, and all the above exceptions are conditional on the vessel being sea- worthy when she sails on the voyage, but any latent defects in the machinery shall not be considered unseaworthiness, provided the same do not result from want of due diligence of the owners, or any of them, or of the ship's husband or manager. The shipowner is not liable for loss or damage occasioned ly decay, putrefaction, rust, sweat, change of character, drainage, leakage, breakage, or any loss or damage arising from the nature of the goods or the insufficiency of packages ; nor for land damage; nor for the obliteration or absence of marks or numbers ; nor for any loss or damage caused hy the prolongation of the voyage. The steamer, while detained at any port for the purpose of coaling, is at lilerfy to discharge and receive goods and passengers. The goods are to be applied for within twenty-four hours of ship's arrival and reporting at the Custom JSou^e, otherwise the master or agent is to be at liberty to put into lighters or land the same at the risk and expense of the owners of the goods. In case of quarantine at any port, the goods destined for that port may be dis- charged into quarantine depot, hulk, or other vessel, as required for the ship's despatch. Quarantine expenses upon the said goods, of whatever nature or kind, shall be borne by the owners thereof. The master or agent shall have a lien on the goods for freight and payments made, if any, or liabilities incurred in respect of any charges stipulated herein to be borne by the owners of the goods. In case any part of the within goods cannot be found during the ship's stay at the port of their destination, they are to be sent back by first steamer, at the ship's risk and expense, and subject to any proved claim for loss of market. The ship shall not be liable for incorrect delivery of packages unless each of them shall have been distinctly marked by the shippers before shipment. Should grain or seed be delivered in a heated or damaged condition, and the receivers claim to deduct half-freight upon such damaged or heated portion, it shall be at the master's option either to allow the same, or to be paid full freight upon the quantity shipped according to the bill of lading, provided always that no portion of the same has been jettisoned or otherwise disposed of on the voyage and the quantity delivered exceeds the quantity named in the bill of lading. General average pay able .according to York- Antwerp Bules. The owner and consignee of the goods, and shipowner mutually agree to be bound by all of the above stipulations, exceptions, and conditions, notwithstanding any custom of the ports of loading and discharging to the contrary. In Witness whereof tlie master or duly authorized agent of the said ship hath affirmed to three bills of lading, all of this tenor and date, one of ■which bills being accomplished, the others to stand void. Dated in this day of , 188 . Weiglit, quality, and contents unknown. 2. Meditekeanean, Black Sea, and Baltic Grain Caeqo Steamee Bill op Lading, 1885. Shipped, in good order and condition, by in and upon the good steam vessel called the now lying in , and bound for , with liberty to call at any ports on the way for coaling or other necessary pur- poses, to sail without pilots, and to tow and assist vessels in distress, and to deviate for the purpose of saving life ; and to be delivered in the like good order and condition at the aforesaid port of unto - or to his or their assigns, he or they paying freight, and/or demurrage, if any, for the said goods. All conditions as per charter party, dated . The act of God, perils of the sea, fire, barratry of the master APPENDIX A. 847 and cre-w, enemies, pirates, and robbers, arrests and restraints of princes, Appendix A rulers, and people, and other accidents of navigation excepted. Strandings 1 and collisions and all losses and damages caused thereby, are also excepted, even when occasioned by negKgence, default, or error in judgment of the Edot, master, mariners, or other servants of the shipowners, but nothing erein contained shall exempt the shipowner from liability to pay for damage to ca,rgo occasioned by bad stowage, by improper or insufficient dunnage or ventilation, or by improper opening of valves, sluices and ports, or by causes other than those above excepted, and aU the above exceptions are conditional on the vessel being seaworthy when she sails on the voyage, but any latent defects in the machinery shall not be considered unseaworthiness, provided the same do not result from want of due diligence of the owners, or any of them, or of the ship's husband or manager. General average payable according to York- Antwerp Eules. laying days have been used at the ports of loading. In witaess whereof, the master of the said ship hath affirmed to three bills of lading, all of this tenor and date, one of which biUs being accomplished, the others to stand void. Dated in , this day of 188 . Quantity and quality unknown. Eeceived of Messrs. on account of freight the sum of which is to be deducted therefrom at port of discharge with cost of insurance. 3. New Toek Produce Exchange Bill op LADiira. Eeceived, in apparent good order and condition, by from , to be transported by the good steamship , now lying in the port of , and bound for , with liberty to call at , being marked and numbered as per margin (weight, quality, contents, and value unknown), and to be delivered in like good order and condition at the port of (or so near thereto as she may safely get) unto or to his or their assigns, he or they paying freight and primage (if customary) in cash, without dis- count, on the said goods on discharge, at the rate of , with primage and charges as per margin. General average payable according to York- Antwerp Eules. It is iviii'rii AT.T. v AGREED that the ship shall have liberty to sail without pilots ; to tow and assist vessels in distress ; to deviate for the purpose of saving life or property ; that the carrier shall have liberty to convey goods in lighters to and from the ship at the risk of the owners of the goods ; and, in case the ship shall put into a port of refuge or be prevented from any cause from proceeding in the ordinary course of her voyage, to tranship the goods to their destination by any other steamship. It is also mutually agreed that the car:^er shall not be liable for loss or damage occasioned by causes beyond his control, the perils of the sea, or other waters; by fire from any cause and wheresoever occurring ; by barratry of the master or crew ; by enemies, pirates, or robbers ; by arrest aaid restraint of princes, rulers or people, riots, strikes, or stoppage of labour ; by explosion, bursting of boilers, breakage of shafts, or any latent defect in hull, machiaery or appurtenances ; by collisions, stranding or other accidents of navigation, of whatsoever kind (even when occasioned by the negligence, default, or error in judgment of the pilot, master, mariners, or other servants of the shipowner, not resulting, however, in any case, from want of due diligence by the owners of the ship or any of them, or by the ship's husband or manager) ; nor by heating, decay, putrefaction, rust, sweat, change of character, drainage, leakage, breakage, or any loss or damage arising from the nature of the goods or the insufficiency of packages ; nor for land damage; nor for the obliteration, errors, insufficiency, or absence of marks or numbers, address or description ; nor for risk of craft, hulk or transhipment; or any loss or damage caused by the prolongation of the voyage. 1. — It is also mutually agreed that the carrier shall not he liable for gold, silver, lullion, specie, documents, jewellery, pictures, emiroideries, perfumeries, 848 APPENDIX A. Appendix A. works of art, silks, furs, china , porcelain, watcTics or clocks, in any respect, or for ' goods of any description whatever above the value of |20 per cubic foot, and in no case is the carrier to be liable beyond |500 per package, unless bills of lading are signed therefor, with the value therein expressed, and a special agreement is made. 2. — Also, that shippers shall be liable for any loss or damage to ship or cargo caused by inflammable, explosive or dangerous goods, shipped without full disclosure of their nature, whether such shipper he principal or agent ; and such goods may be thrown overboard or destroyed at any time without com- pensation. 3. — Also, that the carrier shall have a lien on the goods for all freights, primages and charges, and also for fines or damages vihich the ship or cargo may incur or suffer by reason of the incorrect or insufficient marking, numbering or addressing of packages or description of their contents. 4. — Also, that in case the ship shall be prevented from reaching her destination by quarantine, the carrier may discharge the goods into any depot or lazaretto, and such discharge shall be deemed a final delivery under this contract, and all the expenses thereby incurred on the goods shall be a lien thereon. 0. — Also, that the ship may commence discharge immediately on arrival and discharge continuously, the collector of the port being hereby authorized to grant a general order for discharge immediately on arrival, and upon discharge the goods shall be at the risk of the consignee, and if not taken by him ivithin such time as is provided by the regulations of the port of discharge, they may be stored by the carrier at the expense and risk of their owners. Note. — After Clause 5 all con- ditions relating to delivery at different ports {also ice and lighterage, blockade and special quarantine clauses, &c,), to be inserted as agreed upon by shippers and carriers in various trades, 6. — Also, that full freight is payable on damaged or unsound goods ; but no freight is due on any increase in bulk or weight caused by the absorption of water during the voyage. 7. — Also, in the event of claims for short delivery when the ship reaches her destination, the price shall be the market price at the port of destination on the day of the ship's entry at the Custom House, less all charges saved. 8. — Freight payable on weight is to be paid on gross weight landed from ocean steamship unless otherwise agreed. 9. — Parcels for different consignees collected or made up in single packages addressed to one consignee to pay full freight on each parcel. And finally, in accepting tliis bill of lading, tlie shipper, owner and consignee of the goods, and tlie holder of the bill of lading, agree to be bound by all of its stipulations, exceptions and conditions, -whether -written or printed, as fully as if they -were all signed by such shipper, o-wner, con- simee, or holder. In -witness -wheeeof the master or agent of the said ship hath affirmed to bills of lading, aU. of this tenor and date, numbered consecutively, one of -which being accomplished and given up to the carrier, the others to stand void. Dated in , this day of , 188 . APPENDIX B. POEM OP TIME-CHAETEE. It is this day nmtually agreed between owners of the good steam-Bhip called the of tons gross register, and tons net register, horse-power, provided with steam winches and Board of Trade certificates for hull and machinery, classed of tons dead weight, and tons cubic capacity or thereabouts, exclusive of bunkers, which contain tons of coals and of merchants and charterers, as follows, yiz. : — The said agree to let, and the said agree to hire the said steam-ship for the term of calendar months, commencing she then being placed at the disposal of the charterers, at in such dock, or at such wharf or place (where she may always safely he afloat) as the charterers may direct, she being then tight, staunch, strong, and every way fitted for the service (and with full complement of officers, seamen, engineers and firemen for a vessel of her tonnage) ; to be employed in any lawful trades, between as the charterers, or their agents shall direct : — The owners shall provide and pay for all oils, paints, and stores for the vessel, and for all the provisions and wages of the captain, officers, engineers, firemen, and crew ; shall pay for the insurance on the vessel (a) ; also for aU engine-room stores, and maintain her in a thoroughly efficient state in hull and machinery for the service. The charterers shall provide and pay for all the coals and fuel (J), port charges (c), pilotages, agencies, commissions, and all other charges whatsoever not appertaining to the working or efficiency of the steamer. The charterers shall pay for the use and hire of the said vessel at (a) This will not exonerate the char- 25 Seas. Ca. (4tli) 528. But lie cannot terer from liability for damage to the pledge the owners' credit for coals, and ship caused by neghgenoe of his serpants, he has no lien on the ship for his own although covered by the insurance. Aira disbursements, or liabilities, in respect Force S.S. Co. v. Christie, 9 T. L. K. of coal. The Tuxgot, 11 P. D. 21; The 104. Durham City, 14 P. D. 85 ; Morgan v. (i) Itstillremainsthedutyof themaster Castlegate S.S. Co., (1893) A. C. 38. to Bee that sufficient coals are taken on {c) Newman v. Lamport, (1896) 1 board for the voyage. Park v. Duncan, Q. B. 20. C. — c. 3 I 850 APPENDIX B. Appendix B. the rate of per gross register ton per calendar month, and at and after the same rate for any part of a month (d) : the hire to continue from the time specified for terminating the charter until her delivery to the owners (unless lost) at payment whereof shall be made in cash. and in default of such payment or payments as herein specified, the owners shall have the right of withdrawing the said steamer from the service of the charterers {e), without prejudice to any claim the owners may otherwise have on the charterers in pursuance of this charter. The cargo or cargoes shall be loaded and/or discharged in any dock or at any wharf or place that the charterers may direct, where the vessel can always safely lie afloat. The whole reach, burthen, and passenger accommodation of the ship (not being more than she can reasonably stow and carry) shall be at the charterers' disposal, reserving only proper and sufficient space for ship's officers, crew, tacHe, apparel, furniture, provisions and stores. Cargo and/or coals may be taken on deck at the charterers' risk, so far as the same do not endanger the safety of the vessel. The expense of loading and discharging shall be borne by the charterers, but the stowage shall be under the control of the master, and the owners shall be responsible for same. Ballast and dunnage, as required, shall be found by the charterers (/). The charterers shall have the right of keeping a supercargo on board during the continuance of this charter, the owners finding him with provisions and accommodation on the same scale as the ship's officers, free of expense to the charterers. The charterers shall have liberty to send passengers by the vessel upon any voyage made under this charter, the owners finding pro- visions and all requisites, except liquors, the charterers paying at the rate of shillings per diem for each first-class passenger, and at the rate of shillings per diem for each second-class passenger, during the time such passengers are on board the steamer. The master shall prosecute his voyage with the utmost despatch, and shall render all customary assistance with ship's crew and boats. The master (although appointed by the owners) shall be under the orders and direction of the charterers as regards employment, agency, {d) Where payment for a voyage is to (higher) rate during the time beyond- he made monthJy in advance, the pay- the agreed period. Gray v. Christie, 5 ment for the last month must he in full, T. L. E.. 577. though it may he prohable that the ship , \ i , ■ » ., . . , , , , , . wm only he employed for part of the <") ^i'° ^■17^'' °! '^^ right hy talang month. TonneUer v. Smith, 77 L. T. 9^''^° ^^^, *^'1"^« ^° P"*? *^ ^^"■e (-i™ 277. Where the charter party was for f advance) punctually, see Nova Scotia, a period, towards the end of which the *•=• f °; "• Sutherland, &o. Co., 5 Com. ship was sent on a voyage which could not he completed within the period, it (/) In the absence of such special was held that the shipowner could not term, see Weir v. Union S.S. Co., (1900) claim damages, or freight at the ciirrent 1 Q. B. 28. APPENDIX B, 851 or other arrangements ; and the charterers hereby agree to indemnify Appendix B. the owners from all consequences or liahilitiea that may arise from the master signing bills of lading by their orders or those of their agents, providing the master does not sign usual steam bill of lading or in otherwise complying with the same (g). The act of God, the Queen's enemies, pirates, robbers, risk of lighterage to and from the vessel or craft or hulk, or transhipment, explosion, heat, fire, at any time and place whatever, boilers, steam or machinery, and the conse- quence of any damage to or defect in boilers or machinery, collision, stranding, steaming, jettison, or any other peril of the sea, rivers, navigation, or of land transit of whatsoever nature or kind, and whether any of the perils, causes, or things above mentioned, or the loss or injury arising therefrom be occasioned by the wrongful act, default, negligence, or error in judgment of the owners, pilot, master, officers, crew, stevedores, or other persons whomsoever in the service of the ship, or for whose acts the shipowner would otherwise be liable, or by unseaworthiness of the ship- at the commencement of the voyage (provided all reasonable means have been taken to provide against such unseaworthiness) or otherwise howsoever excepted, If the charterers shall have reason to be dissatisfi-Bd with the conduct of the master, officers or engineers, the owners shall, on receiving par- ticulars of the complaint, investigate the same and, if necessary, make a change in the appointments. The master shall be furnished from time to time with all requisite instructions and sailing directions, and shall keep a full and correct log of the voyage or voyages, which are to be open to the charterers or their agents. The master shaU take every advantage of the wind by using the sails, with a view to economising the expenditure of fuel. The charterers shall have the option of continuing the charter for a further period of on giving notice thereof to the owners before the first-named term shall expire. In the event of loss of time from the deficiency of men or stores, collision, want of repairs, breakdown of machinery, or other causes appertaining to the duties of the owners, preventing the working of the vessel for more than twenty-four working hours, the payment of hire shall cease until she be again in an efficient state to resume her service (A) ; and if, in consequence of such deficiency, collision, want of repairs, breakdown or other causes, the vessel puts into any port or ports other than those to which she is bound, port charges, pilotages, and other expenses (?) at those ports shall be borne by the owners. But should the vessel be driven into port or to anchorage by stress of weather, such detention or loss of time shall fall on the charterers (A), (i?) See Milburu v. Jamaica, &o. Co., (i) The Durham City, 14 P. D. 85. 4 Com. Ca. 331 ; Park v. Duncan, 26 (A) In Howdeni;. S.S. Nutfield Co. (3 Seas. Ca. (4th) 528. Com. Ca. 56), the vessel put into a port (A) Hogarth v. Miller, (1891) A. C. of refuge under such circumstances that 48 ; supra, s. 672. the hire ran on. Under Tork- Antwerp 3i2 852 APPENDIX B. Appendix B. providing the time is reasonable and other vessels of same size, power and class put in, from same cause. Should it be found that the vessel has put in from any other cause aU payment to be stopped, and any loss to charterers from this unreasonable delay to be made good by the owners. Should the vessel be lost, any freight paid in advance and not earned (reckoning from the date of loss) shall be returned to the charterers. Should any dispute arise between the owners and the charterers, the matters in dispute shall be referred to three persons at one to be appointed by each of the parties hereto, and the third by the two so chosen, whose decision, or that of any two of them, shall be final : and for the purpose of enforcing any award this agreement may be made a rule of Court. The owners shall have a lien upon all cargoes, and all sub-freights, for freight or charter-money due under this charter; and the charterers shall have a lien on the ship for all moneys paid in advance and not earned. All salvage and derelicts shall be for the joint and equal benefit (Z) of the owners and the charterers. The charterers shall have the option of sub-letting the steamer, on obtaining owners' consent in writing. Five per cent, commission on the estimated amount of freight is due from the owners on the execution of this charterparty to rules the owners obtained contribution (I) Held to mean equal division, sub- froiu the cargo to the cost of wages and jeot to deduction of losses and expenses provisions while in the port. The time- incurred in earning the salvage. Booker charterers sought to recover from them v. PockUngton S.S. Co., (1899) 2 Q. B. the money so received, but failed. 690. 853 APPENDIX C. GENERAL AVERAGE. YOEK-ANTWEEP EULES (a). EuLE I. — Jettison of Deck Oaego. No jettison of deck cargo shall be made good as general average. Every structure not built in with, tbe frame of the vessel shall be considered to be a part of the deck of the vessel. EuiiE II. — Damage by Jettison and Sacritice eoe, the Common Safety. Damage done to a ship and cargo, or either of them, by or in con- sec[uence of a sacrifice made for the common safety, and by water which goes down a ship's hatches opened, or other opening made for the purpose of making a jettison for the common safety, shall be made good as general average. Etile m. — Extinguishing Piee on Shipboabd. Damage done to a ship and cargo, or either of them, by water or otherwise, including damage by beaching or scuttling a burning ship, ia extinguishing a fire on board the ship, shall be made good as general average ; except that no compensation shall be made for damage to such portions of the ship and bulk cargo, or to such separate packages of cargo, as have been on fire. EcLE IV. — Cutting away "Wreck. Loss or damage caused by cutting away the wreck or remains of spars, or of other things which have previously been carried away by sea-peril, shaU not be made good as general average. (a) The name "York and Antwerp" of Nations, held at Genoa, it was for- or " York- Antwerp " was first given to mally declared that the only interua- the rules formulated in 1877. The rules tional rules of general average having as revised in 1890 (given above) were at the sanction of the Association were the first called "The York- Antwerp Rules, York- Antwerp Rules as revised in 1890; 1890." But they quickly displaced the and that theoriginal rules wererescinded. rules of 1877 in practice ; and in 1892, It is thus the later body of rules which at a conference of the Association for is now known as " The York- Antwerp the Reform and Codification of the Law Rules." 854 APPENDIX C. Appandiz c. jj^^j, y._YoLTjNTAEY SiBAiroiNa. "Wlien a sMp is intentionally run on shore, and the circumstances are such that if that course were not adopted she would inevitably sink, or drive on shore or on rocks, no loss or damage caused to the ship, cargo, and freight, or any of them, hy such intentional running on shore, shall he made good as general average. But in all other cases where a ship is intentionally run on shore for the common safety, the consequent loss or damage shall be allowed as general average. EuLB YI. — Caerting Peess of Sail. — DAMAaa to oe Loss of Salls. Damage to or loss of sails and spars, or either of them, caused by forcing a ship off the ground or by driving her higher up the ground, for the common safety, shall be made good as general average ; but where a ship is afloat, no loss or damage caused to the ship, cargo, and freight, or any of them, by carrying a press of sail, shaU be made good as general average. EuLE VII. — Damage to Engines in Eeploating a Ship. Damage caused to machinery and boilers of a ship, which is ashore and in a position of peril, in endeavouring to refloat, shall be allowed in general average, when shown to have arisen from an actual inten- tion to float the ship for the common safety at the risk of such damage. Etjle YIII. — Expenses Lightening a Ship when Ashore, and Consequent Damage. When a ship is ashore, and, in order to float her, cargo, bunker coals, and ship's stores, or any of them, are discharged, the extra cost of lightening, lighter hire, and re-shipping (if incurred), and the loss or damage sustained thereby, shall be admitted as general average. EuLE IX. — Cargo, Ship's Materials, and Stores Buent for Fuel. Cargo, ship's materials, and stores, or any of them, necessarily burnt for fuel for the common safety at a time of peril, shall be admitted as general average, when and only when an ample supply of fuel had been provided ; but the estimated quantity of coals that would have been consumed, calculated at the price current at the ship's last port of departure at the date of her leaving, shall be charged to the shipowner and credited to the general average. EuLE X. — Expenses at Poet of Eefuge, &o. (a). — When a ship shall have entered a port or place of refuge, or shall have returned to her port or place of loading, in consequence of accident, sacrifice, or other extraordinary circumstances, which render that necessary for the common safety, the expenses of entering such APPENDIX C. 855 port or place shall be admitted as general average ; and when she Appendix C. shall have sailed thence with her original cargo, or a part of it, the corresponding expenses of leaving such port or place, consequent upon such entry or return, shall likewise be admitted as general average. (b).— The cost of discharging cargo from a ship, whether at a port or place of loading, call, or refuge, shall be admitted as general average, when the discharge was necessary for the common safety or to enable damage to the ship, caused by sacrifice or accident during the voyage, to be repau-ed, if the repairs were necessary for the safe prosecution of the voyage. (c). — Whenever the cost of discharging cargo from a ship is admissible as general average, the cost of reloading and storing such cargo on board the said ship, together with all storage charges on such cargo, shall likewise be so admitted. But when the ship is condemned or does not proceed on her original voyage, no storage expenses incurred after the date of the ship's condemnation or of the abandonment of the voyage shall be admitted as general average. (d). — If a ship under average be in a port or place at which it is practicable to repair her, so as to enable her to carry on the whole cargo, and if, in order to save expenses, either she is towed thence to some other port or place of repair or to her destination, or the cargo or a portion of it is transhipped by another ship, or otherwise forwarded, then the extra cost of such towage, transhipment, and forwarding, or any of them (up to the amount of the extra expense saved) shall be payable by the several parties to the adventure in proportion to the extraordiaary expense saved. Etjle XI. — Wages ahd Maihtenance op Chew in Poet of EEFtroE, &o. When a ship shall have entered or been^ detained in any port or place under the circumstances, or for the purposes of the repairs, mentioned in Eule X., the wages payable to the master, officers, and crew, together with the cost of maintenance of the same, during the extra period of detention in such port or place until the ship shall or should have been made ready to proceed upon her voyage, shall be admitted as general average. But when the ship is condemned or does not proceed on her original voyage, the wages and maintenance of the master, officers, and crew, incurred after the date of the ship's condemnation or of the abandonment of the voyage, shall not be admitted as general average. ExTLB XII. — Damage to Cargo m Dischaeging, &c. Damage done to or loss of cargo necessarily caused in the act of discharging, storing, reloading, and stowing, shall be made good as general average, when and only when the cost of those measures respectively is admitted as general average. 856 APPENDIX C. Appendix C. Etjle XIII. — ^Deductions prom Cost of Eepaibs. In adjusting claims for general average, repairs to be allowed in general average shall be subject to tbe following deductions in respect of "new for old," viz. : — In the case of iron or steel ships, from date of original register to the date of accident, — Up to 1 year old (A.) Between 1 and 3 years (B.) Between 3 and 6 years (C.) Between 6 and 10 years (D). Between 10 & 15 years (E.)^ Over 15 years (F.) All repairs to be allowed in full, except painting or coating of bottom, from which one-third is to be deducted. One-third to be deducted off repairs to and renewal of woodwork of hull masts and spars, furniture, upholstery, crockery, metal and glassware, also sails, rigging, ropes, sheets, and hawsers (other than wire and chain), awnings, covers, and painting. One-sixth to be deducted off wire rigging, wire ropes and wire hawsers, chain cables and chains, donkey engines, steam winches and connexions, steam cranes and connexions ; other repairs in full. r Deductions as above under clause B, except that one-sixth be deducted off ironwork of masts and spars, and machinery (inclusive of boilers and their L mountings). Deductions as above under clause C, except that one-third be deducted off ironwork of masts and spars, repairs to and renewal of all machinery (inclusive of boilers and their mountings), and all hawsers, ropes, . sheets, and rigging. One-third to be deducted off all repairs and re- newals, except ironwork of huU and cementing and chain cables, from which one-sixth to be deducted. Anchors to be allowed in full. One-third to be deducted off all repairs and re- newals. Anchors to be allowed in full. One-sixth to be deducted off chain cables. Generally (G.) r The deductions (except as to provisions and stores, machinery, and boilers) to be regulated by the age of the ship, and not the age of the particxilar part of her to which they apply. No painting bottom to be allowed if the bottom has not been painted within six months previous to the date of accident. No deduc- tion to be made in respect of old material which is repaired without being replaced by new, and provi- sions and stores which have not been in use. APPENDIX C. 857 In the case of wooden or composite ships : — Appendix c. When a ship is under one year old from date of original register, at ~ the time of accident, no deduction new for old shall be made. After that period a deduction of one-third shall be made, with the following exceptions : — Anchors shaU be allowed in full. Chain cables shall be sub- ject to a deduction of one- sixth only. No deduction shall be made in respect of provisions and stores which had not been in use. Metal sheathing shall be dealt with, by allowing in full the cost of a weight equal to the gross weight of metal sheathing stripped off, minus the proceeds of the old metal. Nails, felt, and labour metalling are subject to a deduction of one-third. In the case of ships generally : — In the case of all ships, the expense of straightening bent ironwork, including labour of taking out and replacing it, shall be allowed infulL Graving dock dues, including expenses of removals, cartages, use of shears, stages, and graving dock materials, shall ,be allowed in full. Eiri.E XrV. — Tempoeaet Eepaies, "No deductions "new for old " shall be made from the cost of tem- porary repairs of damage allowable as general average. Etjle XY. — Loss OF Febight. Loss of freight arising from damage to or loss of cargo shall be made good as general average, either when caused by a general average act, or when the damage to or loss of cargo is so made good. Etile XVI. — ^Amount to be made good eoe Oaeqo lost oe damaged BY Saceifice. The amount to be made good as general average for damage or loss of goods sacrificed shaU. be the loss which the owner of the goods has sustained thereby, based on the market values at the date of the arrival of the vessel or at the termination of the adventure. Exile XVII. — Contributoet Values. The contribution to a general average shall be made upon the actual values of the property at the termination of the adventure, to which shall be added the amount made good as general average for property sacrificed ; deduction being made from the shipowner's freight and passage-money at risk, of such port charges and crew's wages as would not have been incurred had the ship and cargo been totally lost at the 858 APPENDIX C. Appendix C. date of the general average act or sacrifice, and have not been allowed as general average ; deduction being also made from the value of the property of all charges incurred in respect thereof subsequently to the general average act, except such charges as are allowed in general average. Passengers' luggage and personal effects, not shipped under biU of lading, shall not contribute to general average. Rule XVIII. — Adjustment. Except as provided in the foregoing rules, the adjustment shall be drawn up in accordance with the law and practice that would have governed the adjustment had the contract of affreightment not con- tained a clause to pay general average according to these rules. YOEK-ANTWEEP EULES, 1877. The original rules, formulated in 1877, were as follows : — EuLE I. — Jettison of Cargo. No jettison of deck cargo shall be made good as general average. Every structure not built in with the frame of the vessel shall be considered to be a part of the deck of the vessel. EuiE n. — Damaoe by Jettison. Damage -done to goods or merchandise by water which unavoidably goes down a ship's hatches opened, or other opening made, for the purpose of making a jettison, shall be made good as general average, in case the loss by jettison is so made good. Damage done by breakage and chafing, or otherwise from derange- ment of stowage consequent upon a jettison, shall be made good as general average, in case the loss by jettison is so made good. EULE III. — ExTIHGUISHINd ElEE ON ShIPBOAED. Damage done to a ship and cargo, or either of them, by water or otherwise, in extinguishing a fire on board the ship, shall be general average, except that no compensation be made for damage done by water to packages which have been on fire. APPENDIX C. 859 EULE IV.— CuTTim AWAY WeEOK. ^PP'°^'' °- Loss or damage caused by cutting away the wreck or remains of spars, or of other things which have previously been carried away by sea-perU, shall not be made good as general average. EULE V. — VOLUNTAEY StEANDIB-G. When a ship is intentionally run on shore because she is sinking or driving on shore or rocks, no damage caused to the ship, the cargo and the freight, or any or either of them, by such intentional running on shore, shall be good as general average. Etjle VI. — OABEYma Press op Sail. Damage occasioned to a ship or cargo by carrying a press of sail shall not be made good as general average. EuLE VII. — Poet op Eefuge Expenses. When a ship shall have entered a port of refuge under such circum- stances that the expenses of entering the port are admissible as general average, and when she shall have sailed thence with her original cargo, or a part of it, the corresponding expenses of leaving such port shall likewise be admitted as general average ; and whenever the cost of discharging cargo at such port is admissible as general average, the cost of reloading and stowing such cargo on board the said ship, together with all storage charges on such cargo, shall like- wise be so admitted. EuLE VIII. — Wages and Maihtenance of Oeew in Poet op Eepuqe. When a ship shall have entered a port of refuge under the circum- stances defined in Eule VTI., the wages and cost of maintenance of the master and mariners, from the time of entering such port until the ship shall have been made ready to proceed upon her voyage, shaU be made good as general average. Eule IX. — Damage to Caego in Dischaeging. Damage done to cargo by discharging it at a port of refuge shall not be admissible as general average, in case such cargo shall have been discharged at the place, and in the manner customary at that port with ships not in distress. 860 APPENDIX C. Appendix C. Eule X. — CoNTEDBrTOET Valtjes. The contribution to a general average shall be made upon the actual values of the property at the termination of the adventure, to which shall be added the amount made good as general average for property sacrificed ; deduction being made from the shipowner's freight and passage-money at risk, of such port charges and crew's wages as would not have been incurred had the ship and cargo been totally lost at the date of the general average act or sacrifice ; deduction being also made from the value of the property of all charges incurred in respect thereof subsequently to the arising of the claim to general cargo. EuLE XI. — Loss OF Feeiqht. In every case in which a sacrifice of cargo is made good as general average, the loss of freight (if any), which is caused by such loss of cargo shall likewise be so made good. Ettle XH. — Amount to be made good toe Caego. The value to be allowed for goods sacrificed shall be that value which the owner would have received if such goods had not been sacrificed, 861 APPENDIX D. The following article, by tlie present author, bearing upon tbe changes introduced by the York- Antwerp Rules, appeared in the " Law Quarterly Eeview" for July, 1892 :— EXPENSES AT A PORT OF EEPUGE. In th6 autumn of 1890, at Liverpool, the Conference of the Associa- tion for the Eeform and Codification of the Law of Nations, revised the York- Antwerp Rules of general average, and adopted unanimously "the new partial Code of general average which is known as the York- Antwerp Rules, 1890. In these later Rules the provisions with regard to port of refuge expenses were stated with greater fullness ; and were widened, so as to carry further the important departure from English law which appeared in the earlier Rules, formulated in 1877. Views prevalent on the Continent, and in the United States, have been again preferred tcf the doctrines of our law ; and as the Conference was largely attended by Englishmen practically concerned with the subject, ship-- owners, shippers, underwriters, average adjusters, and lawyers, it may be supposed that the conclusions they adopted are nearer to the business ideas of what is right than the law is. And this supposition is confirmed by the fact that the York- Antwerp Rules, and now the York-Antwerp Rules, 1890, have been very widely adopted in contracts of affreightment and insurance. These facts seem to justify an inquiry into the position of the law of England on this subject, with a view to considering whether it may not be desirable that the law itself should be amended, and if so, in what manner. Without attempting to consider all the various cases which occur of putting into a port of refuge, I propose to discuss the law, and the practice of English adjusters, with reference to the frequent case of a ship which has put into port for repairs, necessary for the safe prosecution of the voyage, where the repairs cannot be effected with- out first discharging the cargo. And then to contrast these with the rules which prevail abroad on the subject; and also with the York- Antwerp Rules, 1890, of wHch the short effect is that the expenses of 862 APPENDIX D. Appendix D. discharging the cargo to enable such repairs to be done, and the suhseqiient expenses of storing that cargo and reshipping it, are to Tbe treated as general average. "When a ship deviates to a port of refuge, because it is unsafe to remain at sea, whether on account of some immediate danger, such as a storm or an enemy's cruiser, or because the ship is so damaged, or her equipment so impaired, that she cannot safely continue on her voyage, in either case the putting in to port is a general average act. It is an act done voluntarily for the common safety under the pressure of a common risk. Hence the extraordinary expenses incurred in getting into the port of refuge, and the necessary harbour dues, are always general average expenses. Where repairs are needed, and the need has been caused by a general average sacrifice, as by cutting away masts, or rigging, the law as to consequential expenses is sufficiently clear. The Court of Appeal, in Atwood v. SeUar (a), decided that the expenses of ware- housing cargo which had been necessarily discharged in order to repair damage of that kind, and also the expenses of reshipping that cargo, and the outward expenses, pilotage, &c., incurred in leaving the port, were all chargeable to general average. The cost of dis- charging the cargo from the ship was there admitted to be general average, so that no decision on that point was called for ; but the reasoning of the Court plainly covered the expenses of that work. The necessity for repairing at a port of refuge is an immediate conse- quence of cutting away the mast, &c., and the expense of effecting the repairs, which involve the discharge of cargo, is all general average expenditure. We pass then to the more difficult group of cases in which the ship puts into port in consequence of having sustained accidental damage, which must be repaired before she can safely proceed on her voyage, and which cannot be effected without first discharging all or part of the cargo. In such a case, the cost of the repairs falls wholly upon the shipowner; the accident has befallen his property, and if he decides to repair it he must pay the cost. That is well established (5). The trouble arises with regard to the expenses of discharging, storing, and reloading the cargo incurred in consequence of doing the repairs. The law on this sub] ect was much discussed in Svendsen v. Wallace (c), and BO far as it can be considered as settled, was settled by that case. The Court of Appeal there decided that, in the circumstances we are considering, the expenses of warehousing the discharged cargo and reloading it are not general average; also that the expenses of pilotage, &c., in putting out to sea again, are not general average. The House of Lords affirmed this judgment with regard to the expenses of reloading the cargo, but left the other points undeter- U) 5 Q. B. D. 286. [e) 11 Q. B. D. 616; 13 Q. B. D. 69 ; (J) HaUett V. Wigram, 9 C. B. 680. 10 A. C. 404. APPENDIX D. 863 mined as being unnecessary to the decision then called for. Lord Appendix D. Blackburn, who gave the leading opinion in the House of Lords, did not state his reason for deciding that the reloading expenses were not general average {d). But in the Court of Appeal, the grounds of the judgments of the majority (Lord Esher, M. E., and Bowen, L. J.) are very clear. It was held that such expenditure is not general average, because it is not incurred to save the ship and cargo from a common peril threatening their physical safety ; nor is it expenditure "caused or rendered necessary" by any sacrifice made for that purpose and under those conditions. " A general average sacrifice is an extraordinary sacrifice voluntarily made in the hour of peril for the common preservation of ship and cargo "(e). "The reloading of the cargo and the outward expenses, are expenses of acts done when both ship and cargo are safe from existing danger, and are therefore not within the rule " (_/ ), The opposing view, contended for in that case, that an expenditure is general average if made for the benefit of ship and cargo, io enable the common adventure to be completed, was distinctly rejected by both judges. Bowen, L. J., said (jr) : "Exceptional cases apart, it is not sufficient, according to English law, that an expenditure should have been made to benefit both cargo-owner and shipowner. The idea of a common commercial adventure as distinguished from the criterion of common safety from the sea, would lead to the inclusion in general average of, at all events, temporary repairs of the ship caused by particular average loss, and would enable the shipowner to complete his part of the contract of affreightment by means of a money con- tribution levied perforce upon the cargo-owner." Let us now compare the practice of adjusters on these points with the law there laid down : — (1) With regard to the cost of unloading, there has been a re- markable steadiness of practice among adjusters ; it has been the uniform rule to charge it to general average, whether the repairs to be done have been necessitated by accident or by sacrifice. ■ And thus it has come about that the question has not been raised in the Courts. Even in Svendsen v. Wallace it was not disputed. But it is, I believe, quite impossible to reconcile this practice with the leading principle definitely adopted in Svendsen v. Wallace. Where the condition of the ship after arrival in the port of refuge is such that both ship and cargo are in danger, say of sinking, untU the cargo is discharged, the operation of unloading is no doubt done for the common safety " in the hour of peril," or, perhaps more accurately, under pressure of a common danger ; and is therefore itself a general average act. But the cases which I put for con- sideration are those in which the ship and cargo are safe within the (d) 10 A. C.p. 417. (/) PerBowen,L.J.,13Q.B.D.p.84. (e) Per Lord Esher, 13 Q. B. D. p. 78. is) 13 Q- B. T). at p. 86. 864 APPENDIX D. Appendix D. port of refuge, but in whicli tie ship cannot be repaired, and the voyage consequently cannot be proceeded with, unless the cargo, or part of it, be discharged. In such a case it is for the shipowner to determine whether he wiH, or will not repair. Generally he is bound to repair, unless the damage sustained has been caused by perils excepted in the contract of carriage, and is of such & character that it prevents, in a business sense, the completion of the voyage (A). But, whether bound or not, if the owner elects to repair he must discharge the cargo for that purpose ; the operation is an incident of the repairs ; it is not a general average act in the sense above defined, for it is not done under the pressure of danger or for the safety of the cargo ; and it is not an operation " caused or rendered necessary" (i) by the act of putting into the port for safety. On the theory of the - law, then, it seems plain that the cost of discharging should properly fall, with the cost of repairs, upon the shipowner. Hallett V. Wigram (9 C. B. 680) was to that effect. A shipper sued for the value of goods which had been sold by the master at a port of refuge. The shipowner pleaded that the goods were sold to defray expenses of unloading at the port and repairing damage caused by a storm, to enable the ship to prosecute her voyage, and to prevent her and her cargo from being wholly lost, and for the common benefit of all interested. The plea further alleged that the expenses so incurred in unloading and repairing had exceeded the value of the ship, and contended that the shipowners were only liable to contribute to the amount as general average. On demurrer the Court held that this was not a good defence ; no case for general average contribution being disclosed. The damage being accidental the cost of the repairs fell on the shipowner. No distinction was suggested between the expenses of unloading and the expenses of repairs. In Svendsen v. "Wallace the question did not arise, as the adjusters on both sides agreed in treating the expenses of unloading as general average. But the view of Bowen, L. J., may be gathered from the following passage {k) : — " In practice, it has in recent times become common to carry these unloading expenses to general average, both where the repairs of the vessel have been rendered necessary by a general average act, and where they are rendered necessary by a particular average loss. Nor is it necessary to discuss a practice which may have become inveterate and which is found adequate. Still, if strict theory were to be in each case relied upon, such unloading ought, as it seems to me, to be dealt with specifically in every instance by applying to it the two tests I have named. If necessary for the common preservation of both ship and cargo, the Unloading will be in itself a general average sacrifice ; see The (A) See per CoUinB, J., Assiourazioni (i) Per Bowen, L. J., 13 Q. B. D. Generali v. Bessie Morris Co., (1892) 1 p. 86. Q. B. 571. (*) 13 Q. B. D. p. 87. APPENDIX D. Copenhagen (/). If not so neceseai-y, it -will not in itself amount to Appendix D. a general average sacrifice at all, but it may nevertheless be properly included as a subject-matter of contribution whenever the expenditure is directly caused by some antecedent act of general sacrifice." It is true that the Master of the Rolls, in the same case, endeavoured to reconcile this practice of treating the expenses of discharge as general average with the law, by suggesting that the general average act of putting into the port of refuge was a "going in to repair"; and that the unloading was a part of that act " done in order to put the ship into such a position that she can be repaired." But, as already said, an act to be a general average sacrifice must be done for the common safety. That is the doctrine insisted on throughout this and other cases. And, on the hypothesis, after arrival in the port nothing more was necessary for the purpose of securing physical safety. If, then, the putting in was for repair, it was still only a general average sacrifice so far as it was a putting in /or safety. Moreover, if the whole act of going in to repair is to be regarded as a general average act, it seems almost impossible to say that the other incidental expenses of repair, such as storage of cargo, are not also general average, as being parts of that act, or consequences of it. Mr. Lowndes, in the last edition of his work on general average, accepted the suggestion of the Master of the Rolls as the true explana- tion of the adjusters' practice. But he at once (p. 218) proceeded, to deduce from it that the expenses of warehousing and reloading ought ~ also to be general average. We have then, as it seems to me, in this uniform practice of charging the expenses of unloading to general average, a plain instance of conflict between the business view and the theory of the law. (2) I proceed to the next head of expenditure, the warehousing charges on cargo discharged to enable the repairs to be done. The practice of adjusters is to charge these expenses to the owners of the cargo. And that practice has been judicially approved. Bowen, L. J. (to), in Svendsen v. Wallace, said that "warehousing the cargo is a charge that ought to be borne by the cargo which benefits exclusively by it." There may at first sight be some difficulty in seeing why these charges for protecting the cargo should not be borne by the shipowner, on the ground that they save him from responsi- bility for the damage which the cargo might otherwise sustain. It might be argued that the shipowner has by his contract undertaken to deliver the goods at their destination in good order, unless he is excused by the express or implied exceptions. And that the loss or damage which might happen to the goods after landing (say by theft, or exposure to rain) would not be a loss proximately by the perils of the sea which had rendered the unloading necessary. Also that it (/) 1 Chris. Rob. 289. (m) 13 Q- B. D. p. 89. C— c. 3 K APPENDIX D. Appendix D. would not be covered by other exceptions in the contract if means of protecting the goods had been available. The explanation, however, seems to be that the shipowner has been prevented by the perils of the sea from completing the voyage, unless he first discharges the cargo ; and as the contract contemplates that the voyage shall be completed, and indeed rec[uires the shipowner to complete it, it foUows that, having regard to that contract, the discharge is a necessary conse- quence of the accident by perils of the sea («). That being so, the shipowner is not liable under the contract for the consequences to the cargo of the discharge; and though bound to do his best to mitigate the effects of the misfortune which has thus befallen the cargo, he only has to do so on behalf of the owner of the cargo, and at his own cost (o). The rule as to the expenses of storage adopted in practice, therefore, seems to be consistent with the law. But is that rule a fair rule, as between the owners of diSerent parts of the cargo ? It frequently happens that only part of the ship's cargo need be discharged to enable the repairs to be done. In such a case the risks and expenses consequent upon the discharge fall wholly Upon those goods ; while the benefit of continuing the voyage, which has been thus procured, is shared by the owners of the other parts of the cargo, without risk or expense. Moreover, it may be a matter of choice with the master as to which goods he will discharge ; he may have it in his power to put the risk and expense upon one part of the cargo, or upon another part, arbitrarily. The case is in these respects very analogous to that of a jettison, or to an exposure of part of the cargo on the shore, or in lighters. A benefit to the whole is procured at the expense of a part. Do not the grounds of justice and policy, which in those cases require that all. shall be put upon a footing of equality, apply also to the case we are considering ? It would seem that these expenses should either be treated as general average, or should be at least contributed to by all the cargo-owners. And as the shipowner is also interested in the safe arrival of the cargo, in respect of his freight, there would be no hardship iu making him contribute also, at any rate in respect of the freight. But though considerations of policy and justice lead us to that conclusion, the legal theory does not. Here, as before, the fact which prevents the warehousing expenses being treated as general average is the absence of any common danger. The expense is not incurred for the common safety, it can at most only be said to be in furtherance of the common voyage. And that is not, with us, a sufficient ground. (3) Now as to the third group of expenses, those of reloading the [n) See Montoya v. London Assurance (o) See Notaia v. Henderson, L K Co., 20 L. J., Ex. 254 ; of. Pink v. 7 Q. B. 226, p. 235 ; Cargo et Argos! Fleming, 25 Q. B. D. 396. L. E., 5 P. C. 134 ; Kingston v. Wendt 1 Q. B. D. 367. APPENDIX D. 867 cargo after the ship has heen repaired. These are in practice Appendix D. charged to freight. The view taken being that they are incurred for the purpose of earning the freight by completing the voyage. That they cannot be charged to general average was finally deter- mined by the House of Lords in Svendsen v. Wallace ; although the view was taken that the discharge of the cargo had there been necessary for its safety. The Court of Appeal had already come to the same conclusion on the view that the unloading was merely for repairs. The question who ought to- bear the reshipping expenses did not there arise, except in that limited manner, that is to say, whether or not they were general average ; but Bowen, L. J., expressed the opinion that the " charges of reloading ought in principle to fall upon the freight, or else upon the freight and the ship together, if the two interests are severed." These expenses, as the same judge pointed out, are "a loss caused by the captain's decision to repair his ship, and to unload and reload the cargo for that purpose " (13 Q. B. D. p. 89). They are expenses incident to the repairs which the shipowner, as carrier, was bound to undertake ; and which he has undertaken in order to perform his contract of carriage. Having repaired the ship, he is by his contract bound to put the goods on board and carry them forward. Where, indeed, as in Atwood v. SeUar, the repairs have been necessitated by a general average sacrifice, so that the cost of repairing at the port of refuge is a consequence of that act, these incidental expenses are chargeable to general average. But where the cost of repairing falls on the shipowner only, so too should the expenses naturally incident to that. The only alternative, that they should be treated as general average, has been negatived. Whether the shipowner can claim indemnity against these charges from his underwriters on freight is another question ; a question which cannot properly be determined until after the inquiry upon whom, independently of insurance, the expenses ought to fall. But the practice of adjusters has been to debit the charges to freight directly; not to the shipowner first, and through him to his underwriters on freight. And thus it has come about that, where some of the freight has been paid in advance, part of these charges is debited to the cargo-owners (or their underwriters), as being in- terested in that prepaid freight. A result which will be seen to be wrong if the primary liability of the shipowner be recognised. Freight is at the present day very commonly paid in advance, either wholly or in part, so that this treatment of the matter is of serious importance. That the practice is erroneous is clear, if the above statement of the law is right. This point has not come very distinctly before the Courts ; but in Svendsen v. Wallace the judgment of the House of Lords pro- ceeded upon the assumption that the whole of the reloading ex- 3k2 APPENDIX D. Appendix D. penses would be borne by the shipowner, although part of the freight had there been paid in advance. Lord Blackburn, though fuUy aware of that fact, said: "If the 460Z. which is the cost of re-shipping is properly charged to freight, the defendants (the mer- chants) are not liable to pay any portion of it." The difSculty which has apparently given rise to the prevailing practice is that the shipowner who has received part of the freight in advance, and therefore has insured with respect to part of the freight only, viz., that which remains at risk, is not in a position to charge the underwriters on that remaining freight with the whole of the reloading and outward expenses. Those underwriters may well claim that these extraordinary expenses have been partly incurred by the shipowner in order to perform the service for which he received the prepaid freight ; and on that he has paid no insurance premium. But this is no sufficient reason for putting that part of the expenses upon the cargo-owner. He has not by paying the freight in advance undertaken to bear any part of the cost of bringing the goods to their destination. And the accident which gave rise to the expenses has not altered his right to have the voyage completed. If, however, the view were taken (as I would think erroneously) that the accident has altered the rights of shippers, then though it is no doubt true that a shipper who has paid freight in advance has, to that extent, a greater interest in the completion of the voyage than another shipper of similar goods who has not paid in advance (for he is entitled to have them at the destination upon making a pro tatito smaller payment), stUl his interest is greater only to that extent. The justice of the case therefore would require that all the cargo-owners should contribute ; the difference in interest being allowed for by adding the freight advanced upon any goods to the value of those goods. On this view the contribution by cargo should not depend upon whether any freight has been advanced or not. If the cargo- owners are not entitled to have their goods carried on, they are aU interested, as well as the shipowner, in making some sacrifice in order to get the voyage completed with the goods on board. In short, we are led, on this view, to the conclusion that the reloading and outward expenses should always be borne by a contribution among the cargo-owners in respect of their goods, and the shipowner in respect of his freight still at risk. Summing up, then, with regard to these three groups of expenses, we find : — (1) That the adjusters' practice of making the expenses of unloading general average is not justified by the law. (2) That their practice of charging storage expenses to the owners of the cargo discharged agrees with the law ; but that there are strong reasons for considering the law and the practice to be unjust, and for requiring contribution to those expenses by all the cargo-owners, if not also by the shipowner. APPENDIX D. 869 (3) Ttat the practice of charging the reloading expenses to freight Appendix D. agrees with the law so far as they are thus charged to the shipowner. But that the practice of making those who have paid advanced freight contribute is not justified by the law ; and can only be justified by a view which requires that all the cargo-owners should contribute. These results seem to me very remarkable. As to (1) and (3) English law and English practice are in conflict ; whUe the practice as to (1) agrees with, and as to (3) points towards, the foreign rules, which I shall presently discuss. As to (2) the law and the practice agree, but are both unjust, and seem to require alteration in the direction of the foreign view. II. If we now turn to the rules which obtain on this subject abroad, it win be found that they are practically uniform, and that they every- where difEer both from English law and English practice. Lowndes, in his book on general average (4th ed. 1888), compared and tabulated the rules in seventeen European and American States ; and his table shows that in all those States, with the doubtful exceptions of Spain, Peru, and Chili, substantially one view has been adopted. The expenses of putting into and coming out of a necessary port of refuge, including the cost of unloading, warehousing, and reloading the cargo, are aU treated as general average. And, except in Erance, so also are the wages and keep of the crew during the stay at the port. No distinctions are made between cases in which the putting into port, or the need of repairs, has been necessitated by accident and those in which it has been the result of a sacrifice. Some minor distinctions occur; e.g., in the law of Norway, putting in owing to "pursuit of an enemy, contrary wind, ice, falling short of provisions, or other similar cause," is treated differently from a putting in owing to damage which renders the ship unseaworthy ; and in the Dutch Code, damage done to the cargo by discharging is only treated as general average when the discharge takes place in a manner unusual at the port. But apart from such smaller points, there is in practice a broad agreement in the rule I have stated. I say in practice, because when one examines the Codes in which in most countries the law is expressed they do not seem always to bear out the rules actually adopted.' Despite the formal expression of the law in the Codes, practice often departs from the law abroad as much as or more than it does in England. Eor example, the Erench Code (s. 400) includes in general average, " damage voluntarily sustained and expenses incurred after express deliberation for the common good and safety of the ship and cargo." But it is expressly declared by s. 403 (3) that " expenses resulting from the putting into a port of refuge, if occasioned by the accidental loss of such articles " (cables, anchors, sails, masts or cordage) " or by the need of victualling 870 APPENDIX D. Appendix B. or to repair a leak," are to belong to particular average. Notwith.- standing tMs, Lowndes (p. 377) found that the practice in France is to charge all the expenses consequent on putting into a port of refuge to general average, as already described, when the putting in has been to repair damage which has rendered the ship unnavigalle. And I gather that this practice has sometimes, if not always, had the support of the French Courts. Similarly, in Spain the expenses of putting into a port are, it is said (Lowndes, p. 561), treated as general average when the putting in is necessitated by general average damage, though by s. 821 of the last Code (1805) it is provided that " the expenses of the putting into a port of refuge are always to the shipowner's or lessor's account : " while 8. 822 puts the cost of discharging for repairs on the shipowner ; and s. 823 makes him responsible for the custody and care of the discharged cargo, except as against fuerza mayor. And in Portugal the practice is apparently even more contrary to the Code ; which contains a provision (s. 1612), similar to that of the Spanish Code, charging the expenses of entering a port of refuge to the owner (Lowndes, 3rd ed. p. 96). The discrepancy between theoretical law and practice appears to be of old standing in France. Emerigon, writing in 1783, treated the subject with his usual conciseness and clearness. Summing up the authorities, from the Roman law down to the Ordinance of Louis XrV., of 1681, he said (^) : "It results from these texts (1) That expense incurred and damage suffered are not general average, except in the case where they have been incurred volun- tarily for the common safety. It is necessary that the act of man should have concurred with the accident ; there must have been a forced will. (2) It must have been a question of shunning an immiaent danger. A panic would not excuse a captain in making a jettison without being forced to it by a real danger. Still prudence does not allow him to wait the last extremity." An exact statement of the doctrine which has led to our English position. Later (yD.{q) he treats of expenses at a port of refuge. After showing that the Eoman law and other authorities did not allow contributions to the cost of repairs, he cites the following passage from Eicard (negoce d' Amsterdam) : " When a vessel is forced by tempest to enter a port to repair damages, if she cannot continue her voyage without risk of being entirely lost, the wages and subsistence of the crew from the day it has been resolved to seek a port for repairs to that of her departure therefrom are carried into general average, together with all the expenses of discharging and reloading, anchorage and pilot dues, and all other charges and expenses caused by this necessity." To this Emerigon adds : " Such is pretty nearly the jurisprudence (i)) Chap. XII. 39. 6. (j) Chap. XII. 41. 6. APPENDIX D. 871 of our Admiralty But the expenses and cost of the repairs, ^PP^^^^^P- the price of the masts, sails and other rigging it has been necessary to purchase are not so admitted. Still, if there has been an excessive value in all these objects either from a scarcity of workmen or from dearness of timber, rigging and other materials, this surplus of price would enter into general average." He goes on : "It is true the law above cited is contrary to our Juris- prudence. But if the vessel injured by tempest were not repaired in the port of repose she would remain unnavigable ; this would bring the most serious prejudice to the cargo. It is then a question of expense incurred for the common good and safety." This persistence of practice, in spite of inconsistent theory, and in spite of contrary enactments, is very significant to show how strong has been the opinion that justice, or convenience, require a treatment of the matter different from that required by the legal view. More- over, we not only have examples of this conflict between Code and Practice, but in some of the modern Codes we find a corresponding conflict within the Code itself. The practical view seems to have been grafted upon the legal theory, with perhaps some sacrifice of logic. Thus the German Code (adopted in 1862) defines (Art. 702) general average as, "all damage intentionally done to ship or cargo, or both, by the master or by his orders, /"or the purpose of rescuing loth from a common danger, together with any further damage caused by such measures, and also expenses incurred for the same purpose." Theu by Art. 708 (4) it provides that "When the ship, in order to avoid a common danger, threatening ship and cargo in case of con- tinuing the voyage, is run into a harbour of refuge, particularly where the running in is for the necessary repairing of a damage which the ship has suffered during the voyage," the cost of dis- charging, warehousing, and reloading shall belong to general average, if the cargo has to be discharged "on account of the motive which led to the putting into port." That position, if I rightly understand it, is exactly the one which our Courts held to be untenable, in Svendsen v. Wallace {r). For it adopts the " common danger " principle as essential, and yet makes the expenses at a port for repairs general average, though incurred after ship and cargo are in safety. In the United States also the law appears to differ from our law in the same way, though professedly based on the same principle of " common safety " («). In England we have parted company from other maritime com- munities; but our Text Books and Law Eeports show that what we may caU the Continental view has only been dissented from by our judges in quite modern times, and after very remarkable fluctuations W 13 Q. B. D. 69 ; 10 A. C. 404. „ _„ .^. («) Phillips, Insur. of. ss. 1270, 1320, 1326 ; Lowndes, pp. 606, 620, citing Gonrlie. ^'^^ APPENDIX D. Appendix D. ^^ opinion^ j^ j)^ Oosta «. Newnham(0 (a.d. 1788), Buller, J., cited a passage from Beawes^ showing the law in foreign countries with regard to expenses at a port for repairs, in the sense ahready stated, and added, "I do not know that this point has ever been settled in England." In The Copenhagen (m) (a.d. 1799), and The Gratitudine (a;) (a.d. 1801), Lord Stowell's judgments seem to show that he was of opinion that expenses incurred for the common benefit at a port of refuge should be treated as general average. In 1802 the first edition of Abbott on Shipping was published; and the view there expressed was that, where the cost of repairs at a port of refuge falls on the shipowners, they ought also to bear all the expenses accessory to those repairs ; it being their duty, so far as in them lies, to keep the ship in good conditipn during the voyage (y). On the other hand Stevens, who first published his book on Average in 1813, laid it down (p. 25) that " all extra charges incurred for the general good on putting into a foreign port in distress (y), ought by the common law to be made good by 'a general contribution." He cited Da Costa v. Newnham, which is, however, no authority for the point, and referred to the foreign laws. But he further spoke of a "practice of Lloyds," and of "the cus- tomary decision of the Registrar and merchants in such cases, that all the charges incurred expressly for the general benefit are to be placed to the general average ; those incurred for the preservation of the goods to the cargo ; and the outward charges whereby the ship is again set forward on her voyage, to the freight" (z). We here evidently have traces of the practice which has ever since prevailed in England. And in Benecke's Principles of Indemnity, published in London in 1824, the practice as it at present exists is described and spoken of as "so far sanctioned by custom that an attempt to correct it would meet with great opposition " (p. 198). Benecke did not, however, regard the practice as correct. In January, 1815, the matter camB before the Queen's Bench in the case of Plummer v. Wildman (a), and Lord EUenborough and Le Blanc and Bayley, JJ., decided that the expenses of putting in to a port of refuge, and of landing and storing the goods during repairs, and of reloading them afterwards, were all chargeable to general average. And not only these incidental expenses, but also the cost of the repairs was allowed in general average ; the only limitation being that any benefit resulting to the ship from the repairs, beyond the prosecution of the voyage, was to be deducted. (t) L T. R. 407. {z} See also The Copenhagen, 1 C. r ^ 9,- 5°^ ^®^' P- ^^*- ^^- 289. ■K'Jiere it was referred to the (x) 3 C. Eoh. 240, p. 264. Registrar and merchants to inquire as to («/) See the passage set out in Shee's the existence of a rule of practice pote, Abbott, nth ed., p. 533. (a) 3 M, (^ S 482, APPENDIX D. 873 The damage there had been caused by a collision, by which the Appendix D. ship's "false stern and knees were broken, and the master was in consequence obliged to cut away part of the rigging of her bow- sprit, and to return to Kingston (the port of departure) to repair the damage sustained by the accident and the cutting away." The decision went to the fullest extent of the Continental view. And it was based on the ground that, as all were equally benefited by the removal of the ship's incapacity to continue her voyage, it was reasonable that all should contribute towards the expenses of it. But, within four months, the authority of the case was qualified by a reference made to it in Power v. Whitmore (J), which came before the same three judges in May, 1815. Lord EUenborough is reported to have spoken of it as a case in which " the master was compelled to cut away his rigging in order to preserve the ship and afterwards to put into port to repair that which he sacrificed." And this has in recent years been taken as the explanation of the decision. It is, however, impossible to read the judgments in Plumnier v. 'Wildman(c) as depending upon the fact of an original voluntary sacrifice. The language, especially of Lord EUenborough, is too clear. And the decision was that all the expenses necessary to enable the ship to prosecute the voyage, including the accidental repairs, were to be general average. And though the case is now of no authority, it was evidently treated as an authority by Lord Tenterden, who had been counsel in Power v. Whitmore, when the fifth edition of his book was brought out in 1837, under the editor- ship of his son. The passage in the earlier editions to which I have referred above was then omitted, and a new passage was inserted (p. 347) giving the effect of the decision in Plummer v. Wildman, so far as it related to the expenses of unloading, ware- housing, and reshipping, without any suggestion that the ruling had been qualified. Lord Tenterden was then alive, and it is quite improbable that these changes were made without his sanction. Again, a few years later (1848), Amould published his work on Insurance, and cited (c?) Plummer v. "Wildman as an authority for the proposition which he then laid down, generally, that "when in order to repair the ship it becomes absolutely necessary to discharge the cargo, all the expenses of unloading, warehousing, and reloading it come into general average, because incurred for the joint benefit both of the ship and of the cargo : of the ship, that she may be repaired, and of the cargo that it may be preserved." To this we may add that Plummer v. Wildman has been treated as an authority in the United States, where the law seems to be in accord with that decision (e). fM ATjr .R-s 141 W 2naed., 921, s. 335. (*)4M-&S. 1". W Phjll. Insur., ss. 1300, 1320; 3 (c) 3 M. & S. 482. Kent, 188. 874 APPENDIX D. Appendix D. j^ 1355^ again, Hall t». Janson (/) is another decision that "the expenses necessarilj' incurred in unloading and reloading for the purpose of repairing the ship that she may be made capable of pro- ceeding on the voyage" are general average; being "deliberately done for the joint benefit of those who are interested in the ship and cargo and the freight." But meanwhile it had been definitely made clear in HaUett v. Wigram (y) (a.d. 1850), that the actual cost of accidental repairs must be borne by the shipowner, although the repairs may have been done for the common benefit at a cost exceeding the repaired value of the ship. And in that and the later cases it has been steadily insisted on that a sacrifice or expense to be general average, must have been incurred under circumstances of impending peril. , Finally, as we have already seen, this essential condition was re-stated with great distinctness in Svendsen v. "Wallace ; and the idea of a " common commercial adventure as distinguished from the criterion of common safety from the sea" was expressly said to be inadmissible. III. It is difficult to resist the conclusion that the expenditures we have been considering cannot logically be treated as general average, if imminent peril, threatening the physical existence of ship and cargo, is to be regarded as an essential condition of a general average sacrifice or expenditure. But we find that while that theoretical view has been repeatedly asserted, here and elsewhere, practical men nearly every- where, indeed we may say everywhere, have agreed in ignoring it in relation to some or all of those expenditures. And the tendency of this practical opinion is rather in the direction away from the legal theory than towards it. The York-Antwerp Eules of 1877 (VII.), brought the warehousing and reloading expenses at a port of refuge within general average ; and, (VIII.) also the wages and maintenance of the crew during the stay at the port. The corresponding Tork- Antwerp Eules of 1890 go further. Eule X. allows as general average the cost of discharging, storing, and reload- ing, whenever cargo is discharged for repairs which have accidentally become necessary, although the repairs be done, not at a port of refuge, but at one of the ordinary ports of loading or caU on the voyage. It is enough that the damage to be repaired shall have been caused by sacrifice or accident during the voyage, so that the repairs shall have been necessary for the safe prosecution of the voyage. And Eule XI. makes the wages and maintenance of the crew general average during any detention for such repairs. These rules are un- mistakably based on the view that an expenditure for the sake of if) 24 L. J., a B. 97. (y) 19 L. J., C. P. 281. APPENDIX D. 875 accomplishing the voyage, necessitated by an accident, should be treated Appendix D. as general average. The idea seems to be that, while the actual cost of repairing acci- dental damage which has befallen one of the interests concerned should be borne by that interest alone, the incidental expenses neces- sary to prevent the frustration of the voyage by that accident should be borne by all. The conclusion seems forced upon us that the legal theory of general average recLuires expansion. A broader statement of the principle is wanted, extending it to cover extraordinary expenditures which may be incurred to prevent the frustration of the voyage by accidental perUs. Accidental damage and losses must lie where they fall; but if we are to be guided by the views of business men, expenses which have become necessary, owing to accident, to enable the safe prosecution of the voyage, ought to be made good by general average contribution, if the prosecution of the voyage is in the interest of both ship and cargo. And the only satisfactory way of altering the rules on this subject is by legislation. The method of the York- Antwerp Eules has been by contract. They have no effect except where they have been expressly adopted in contracts of carriage, and of insurance. Their effect in that way is very large, but it is only partial ; and the wider their operation, the more does it become unsatisfactory that cases in which no contract has been made should be dealt with under rules which are condemned by the best practical opinions. Moreover the method of contract is apt to fail. The contracts may not agree. Some bills of lading may adopt the York-Antwerp Eules while others do not. There may be a charter party relating to the voyage which adopts the new rules, while biUs of lading for goods shipped under the charter may fail to do so. Or, again the contracts of insurance may not agree with the contracts of carriage. And even where a particular set of rules is adopted in aU the biUs of lading, Btni questions of general average affect the shippers among themselves, and their bOls of lading are contracts with the shipowner, not with other shippers. The law of general average governs the right of persons, co-adventurers, who are not aU under contractual relations with one another ; and the rules of that law must apply where they have not been modified by contract. Other considerations also point to the desirability of legislation on the subject of general average. More especially the Hi-defined state of the law on many points. The cases decided in the Courts have been too few to enable the legal principles to be worked out in that detail which business requires. The matters discussed in this paper afford illustrations, which might easily be added to, of the want of certainty which exists. An uncertainty which sheds no lustre on our juris- prudence, and is unworthy of our position as leaders in maritime commerce. 877 INDEX. ABANDONMENT OP VOTAOE, At port of refuge, shipowner's rights and obligations, 302 — 309. Effect on freight, 307, 547. By abandoning ship at sea, 308. Question of fact, 424. Freighter may regard contract as at an end, 555. No lien for freight where voyage abandoned, 664. Jurisdiction of Admiralty Court over claim in respect of, 689. ABANDONMENT TO UNDERWEITBKS, Right of underwriters to freight, cargo on owner's account, 575, 600. Whole freight goes to underwriters, if voyage completed by ship after, 600. Not so if goods carried on ia another ship, 600. Claims for loss of freight do not pass, 600. " ABOUT," 142. ACCIDENT, In navigating, not an act of God, 8. Exception of, does not cover negligent collision, 77. An element in "perils of the sea," 87. Snow, not an " accident," 257. ACT OF GOD, Carrier not liable for, 2, 74. Meaning, 7. Must be independent of human action, 8. And beyond control, 9. What are natural causes ? 10. Does not excuse performance of an absolute undertaking, 74. Express exception, 81. Distinction from perils of the sea, 84. HarterAct, 103g. "ACTUAL FAULT OR PRIVITY," Absence of, condition of limited liability, 24, 26. Of one part-owner, co-owners' right to limit liability not lost, 26. ADMIRALTY COURT. [See In Rem.] ADVANCED FREIGHT. \_See Febtoht.] ADVANCES BY CHARTERER, Distinction between freight and, S64. Shipowner's option, 664. Effect of " subject to insurance," 566. Rights of charterer to deduct, from freight, as against mortgagee of ship, 593. As against lender on bottomry, and assignee of freight, 598, ADVERTISEMENT, General ship, shipment under, 50, 56. [The references are to the Sections.^ 878 INDEX. AGENTS. \_See Pactoes, FoBWAEDiira Aobnts.] , Consigmnent of ship to charterers, 123, 124, 168, 173. Right to collect freights, 124. Power to compromise claims, 124. Charter by, ratification, 126. Charterer's agent may not not alter charter party, 126. Undisclosed principal, 127. Described as " owner," 127. Contracting for principal not liable on contract, 128. Unless no principal exists, 128. Where agent's liability to cease when cargo shipped, 128. Warranty of authority, 129. Signature "by telegraphic authority," 129. Contracting personally, 130. Liability by custom, 131. Authority by custom, 184. Principal not suable after judgment against, 132. Deposit by, under Merchant Shipping Act, s. 495. ,476. Mercantile, Factors Act, 604. Authority to, to stop goods in transit, 629, Eatificatiou after transit ended insufficient, 529. Liability for freight, 605. For demurrage, 639. Lien as against charterers, 672. "ALONGSIDE," Cargo to be brought, meaning, 250. Cost of lighterage, 250. Cargo to be taken from, 463. "ALWAYS AFLOAT," Generally a condition of safety, 449. Condition of obligation as to delivery, 455. AMBIGUITY, Parties not ad idem, 162. Ambiguous guarantees, 141a. In words, cansiinio^oiL contra proferentem, 172. ANIMALS, Inherent Tice, 10, 12. Fitness of ship for, 20, 51. Declaration of value under EaUway and Canal Traffic Act, 1854 , , 29. Eestiveness through negligence, 77. " Not accountable for mortality," 103. Dying on voyage, no freight payable, 548. Loss of value by entering prohibited port, 419. ARBITRATION CLAUSE, Not imported into biU of lading, from charter, by " other conditions," &c., 160. ARREST. \_See Resteainis op PetnceS, &C.] In rem, effect of, 700. ARRIVAL, Custom as to, when ship has arrived, 199. Master not bound to notify, to consignees at port of discharge, 465, But must not mislead consignees, 465. " AS CUSTOMARY," 250, 614, 619a. "AS FAST AS SHIP CAN DELIVER," 614a. ASSIGNEE. {_See Bm. of Ladino, FBBiaHT.] " ASSIGNS," 486. [The references are to the SecMons.'] INDEX. 879 ASSORTMENT OP CARaO, Where damaged, at destination, 293. Shipments should be separated on delivery, 462. Goods of different kinds shipped in one Tbulk, 462. Expenses of, Merchant Shipping Act, s. 493 (4) . .476, 478. "AT ALL TIMES OP TIDE," 4S5. "AT SHIP'S RISK," 251a. AUTHORITY, Warranty of, by agent, 129. AVERAG-E. [See Genbeai, Aveeaob.] AVERAGE ACCUSTOMED, Meaning of, 587. AVERAGE BOND, 442. BALES, Meaning of, 169. BALLAST, Duty and right of shipowner to provide, 262. May bear freight, 262. Charterer's right to ship, instead of cargo, 265. BAR-HARBOUR, Charterer's duty to complete loading outside, 226. Cargo discharged to cross bar, charterer not bound to load again, 260. Ship loading inside, must cross on highest tides if necessary, 271. When not safe, 449 et sej. BARRATRY, Meaning, 99, 100. Distinction between polioies and contracts of carriage, 100. BERTH. ISee DEMtJEKAaB.] Who may determine, 249, 459, 460. Control of port authority, ^eot, 254a. Option of charterer, 624b, 628. BERTH-NOTE, Liability of maker, 130a. BILL OF EXCHANGE, Effect of buyer'ft on stoppage in transit, 527. Payment of freight by, 584, 585. Effect on lien, 665. BILL OP LADING. \_See Indoeseb oi' Bill oe Lading ; Indobsbment op Bill of Ladino.] Nature of, 60, 59, 486. Porm of, how to be determined, 53. Forms, 54. Liverpool Conference, 1882, bill of lading, App. A. Hamburg Conference, 1885, bill of lading, App. A. Mediterranean, Black Sea and Baltic steamer bills of lading, for grain cargoes and for general produce, App. A. New York Produce Exchange biU of lading, App. A. Stamp on, 55. Drawn in sets, 55, 602, 503. Does it conclusively show the contract ? 56. Where incomplete, 67. Relates back to what has been done, 58. PaUure to give, 58, 59. Signature by master, 59. [The references are to the Sections.} 880 INDEX. BILL OP IjABING—contimted. To wlioin to be given, 60. Contract with shipper, under, 61. Transfer of contract contained in, 62 et acq. Statement of cargo in, not conclusive against shipowTier, 69, 681. Although conclusive hy the law of the flag, 69, 206. Statement of marks on cargo, not conclusive, 69a. Agreement that statement in, shall be conclusive, 69b. Conclusive against person signing, unless caused by fraud, 70. Misstatement of date by master, owner not liable, 69a. Misdescription of goods in, 72, 729. Are common law exceptions implied in? 74. Statutory exemptions are, 76. Exceptions construed against shipowner, 77. Greneral exceptions do not protect against negligence, 77. Onus of proof as to loss apparently within exception, 78. Exceptions do not generally alter liability for unseaworthiness, 79. Exceptions do not affect liability to general average, 80, 103, 104. Exceptions in, 81 «< seq. LiabiKty for effects of stowage under, 95. Dangerous goods, 97. Limit of time for claiming under, 106. Through bills of lading, 106, 108, 470. For passenger's luggage, 110. For goods shipped by charterer, 151. Does not alter the charter party contract, 151, 587. Charterer cannot alter destination after, 151, 268. Effect of, after assignment by charterer, 152. Shipments by strangers, for whom does master sign ? 153, 154, 155, 156. Charter party terms not preserved by, unless so expressed, 160. "Other conditions as per charter party," 160, 637, 669. Master's authority to give, where charter party terms not preserved, 161, 161a. Given by charterer, 158. " Clean bills of lading," meaning, 161. Change of consignee in, after signature, 485. A symbol of the goods ; constructive transfer of possession by, 486. " Assigns" in, means assigns of biU of lading, 486. Essentials of negotiability of, 487. "Order or assigns," 487. Indorsement of, 487. Special verdict in Liokbarrow i>. Mason, 487. Shipping notes, 487, 634. Conditional indorsement, 488. Failure to accept accompanying drafts, 488. Mere possession of, does not enable holder to convey, 489, 490. Differs from bill of exchange, 489. Shipper without title cannot negotiate, 491. Shipment imder bill of lading to shipper's order, reservation of disposal of the goods, 492—494. Shipment by agent who has paid for goods, 495. Indorsement obtained by fraud, 496. Effect of transfer in passing the property, 497. Transfer to bankers ; pledge or mortgage ? 498. Intention the test, 499. Effect of transfer of, after goods assigned, 500. Continues in force as document of title untU delivery, 601. Drawn in a set, delivery on one "part" without notice of other claims, 502. Indorsement of one part to assignee sufficient, 503. Purchaser cannot require more, 603. Effect of Factors Acts on assignment by, 504, 536. Effect of assignment of, in defeating the right to stop in transit, 532—539. Assignment of goods without bill of lading, effect, 534. Liability for demurrage under, 636 — 642. Charter party liens, when preserved by, 668 et seq. Exceptions in, protect shipowner against claims in tort, 705. [The references are to the Sections.] INDEX* 88i BILLS OF LADING ACT, 1855, Clauses, 62. Inaoouraoy of, 500. Position of shipper after indorsement under, 65. What property must pass, to pass the contract, 66. Effect of, as to statements of quantity in bill of lading, 70. Application to through bill of lading, 107. Terms implied by custom, how affected by indorsement under, 200. Liability for freight under, 606. LiabUiiy for demurrage under, 638, 639. BLOCKADE, At port of discharge, may excuse charterer, 82. Breach of, maybe barratry, 99. Eestraiut of princes, charter party terminated by subsequent blockade of agreed port of discharge, 233. Liability to capture by running, 244. Contracts to run a foreign blockade not illegal, 244, 246. Does not excuse non-performance where contract made with notice, 246. BOATS, Bisk of, 92. BOND, General average, obligation of shipowner, 442. BOTTOMRY AND EfeSPGNDENTIA, Power of master to hypothecate cargo for repairs, &o., 310. He must resort first to ship and freight, 310. Must he prudent in interests of cargo, 311. Hypothecation must be conditioiial on arrival, 312. The property in the goods does not pass, 312. Where part of cargo charged not at risk, 313. Hypothecation for necessaries, 314. Cargo not chargeable before shipment, 315. Master must first communicate if possible, 316. Law of flag, Italian law, 211. Enforcement of bottomry bonds in rem, 317 ■Order of priorities, competition with other liens, 317. Cargo not resorted to till ship and freight exhausted, 318. Though bond does not expressly include them, 318. Prior charges on cargo, 319. Shipowner's liability to indemnify cargo owner, 320. Right to deduct advances from freight, as against, 698. Right to sub-freights under, 599. "BREAKAGE AND LEAKAGE," Does not cover negUgenoe of crew, 77, 95. Effect of exception, 98. Does not cover leakage from other goods, 98. BROKEN STOWAGE, 265. BROKER, . Employment to find cargo displaces master s authority, 42. Commission, 121. Not dependent on freight being earned, 121. When earned, usage, 121. Several brokers employed, 121. Effect of clause in charter party, 122. Payable to charterer, 122. Jurisdiction of County Court in Admiralty, 122, 695. Undertaking by, to procure a ship, 121. Liability under bert£-note, 130a. Cannot vary a charter party, 126. Custom as to insurance, right of set off, 189. Custom as to produce, selling own goods, 190. Custom as to liability of, 196. IThe references are to the Sections.} C— C. 3 L 882 INDEX. BYE-LAW POWERS, Harbours ClauBes Act, 1847 ; lumpers, 464. CABINS, Charterer not 'bound, or entitled, to put cargo in, 262. Nor to require owner to carry passengers in, 262. CANAL, Liability of carriers by, 3. CANCELLATION OP CHARTER PARTT, For not sailing or arriving by agreed date, 149, 219 — 221. Effect of exceptions, 149. For not being " ready to load," 221. Ship should proceed notwithstanding charterer's right, 222. Where delay frustrates adventure, 231, 232, 233. "In case of war," 236. On "non-arrival" of another vessel, 236. By performance becoming illegal, 237, 238. Effect of war by nation to which one party belongs, 237 et seq. Acts of foreign governments, 238, 247. Voyage partly performed, 240. Temporary restraint of voyage, 242. CAPACITY, Statement of ship's, when material, 141. Guarantee of, fresh water draught, 141a. Specified cargo, 141a. " Say about 1,100 tons," meaning, 142. CAPTURE, For smuggling by master, 99. Capture followed by re-capture or liberation does not necessarily terminate contract, 242. Salvage upon re-capture, 332. Whole freight payable on captured goods, 656. On goods imloaded after a re-capture, 656, 660. CARGO. [See Deok-Caeso.] Declaration of value, Merchant Shipping Act, 24. Railway and Canal Traffic Act, 1854. .29. Owner of, liability on contract, 61. may sue for wrongful damage apart from contract, 67, 702. may claim goods shipped in fraud of him, 67, 483, 652. Statement of, in bill of lading, effect, 69, 70, 71, 152, 581. Quality marks on, 69a. Misdescription of goods in bill of lading, 72, 729. When is charterer excused from loading, 136 et seq., 174, 177, 219, 221. 230, 232. Full and complete cargo, custom, 169, 182, 196, 265, 266. Delivery of outward cargo not a condition of loading return, 175. Cargo must be ready at the loading place, 252, 257, 617. Specific cargo, 141a, 254, 256. Exceptions as to, 257b. Charterer not generally excused by impossibility, 266. Exceptions as to loading, 257 — 259. Obligation to complete loading though part destroyed, 259. Quantity to be loaded, 261, 262. " Say about 1,100 tons," 261. "Merchandize," "produce," 263, 264. Measure of damages for short loading, 263, 711, 720, 721. "FuU and complete cargo," broken stowage, 266, 266. Frozen cargo, 266. [^The referencei are to the SecHona.'] INDEX. 883 CAE60 — continued. Customary modes of preparing, 266. Cost of preparing, 267. Eelanding after loading, 58, 268, 269. SMp must take a full cargo, 271. Short cargo through unskilful stowage, 271. Unsafe goods, 277 et seq. No contribution to jettison of dangerous goods improperly shipped, 366, 373b. Statutes as to-dangerous goods, 280. Duty to declare, 280. Stowage of cargo on deck, 281. Statutes as to timber cargoes, 282. Statutes as to grain in bulk, 283. Duty to prevent damage to cargo from spreading, 291, 293. Assortment of damaged cargo, 293. Expenses of preserTing cargo, 295, 296. Sale of damaged cargo by master, 297 et seq. Improper sale of, by master, 300, 301. Transhipment of, 304 — 306. Hypothecation of, for repairs, &o., 310 et seq. Shipowner's liability for proceeds of sale ; and to indemnify, 320. liiability of cargo for life-salvage, 330. Contribution by, to pilotage and towage in some oases, 341. Contribution to salvage by, 350 — 364. Liability of cargo to expenses of removing wreck, 359, 360. Sacrifices of cargo. [See Geneeai, Aveeaqe.] Expenses of discharging cargo at port of refuge, 408, 409, 411. Expenses of reloading cargo at port of refuge, 410, 412. Expenses of warehousing cargo at port of refuge, 413. Valuation of cargo for purposes of contribution, 419. "Where freight has been paid in advance, 440. Assortment of goods shipped in bulk, 462. Delivery of different portions of, similarly marked, 469. Mixture of different portions of, loss of identity, 505. Consignees tenants in common, 505. What cargo must be delivered to entitle to lump freight? 550. Liability of cargo to be arrested in action in rem against freight, 601. Eemedy in rem against, under County Courts Act, 1869 . . 694. Collision, both ships to blame ; claim for half the loss, 704. Substituted, freight upon, reduces damage, 721. Damages for delay in deUveriag, 724 — 727. deterioration, 725. deprivation, 728. CAEEIER OF GOODS, Liability at common law, 2 et seq. Meaning of common carrier, 4. Insurance of goods by, 105. Liability after warehousing, 472 — 475. When agent for buyer, to defeat stoppage in transit, 613. CARRIEIIS ACT, 1830.. 29. Application to bill of lading, 76. CATTLE. \_See AmiiAxs.] CAUSA CAUSANS; CAXTSA PSOXIMA, 88. Rules of construction as to causes, 89. Co-operating causes, onus of proof, 78. CAUSES BEYOND CONTROL, 258a. CESSER CLAUSE. [See Fbeight ; Dbmubeaob.] In charter by agent, 128. Where apparent agent is really principal, liability continues, 128. Not incorporated in biU of lading by " other conditions, &c.," 160, 651. Charterer may remain liable as biU of lading holder, 607, 651. Liability for freight payable before cargo loaded, 607. ITTie references are to the Sections.'} 3l2 884 INDEX. CESSER GIjAJJSE— continued. Ambiguity of, 645 ; construed by reference to other remedies given, 645, 647. Effect of clause as to demlirrage at port of loading, 646, 647, 649. Effect of clause as to detention at port of lading, 648, 649. Default of charterer at port of caU, 650, CHARTER PARTY, Liability of shipoTpner at common law, 5. Objepts of the contract, 33. Performance not specifically enforced, 39. Owners must not use ship inconsistently with ; injunction, 39. Sometimes not a contract of carriage, 112, 113. ' Transfer of possession under, 114, 115, 116. Government charters, 115. Charter to master, 116. Three classes of charter party, 117 ; forms of, 118 ; time charter, App. B. Effect of seal, 119. Stamp on, 120 Effected through shipbroker, 121. Clause as to broker's commission, 122. Consignment of ship under, 123. Agency in making, 125. Charterer's agent cannot alter, 126. Made by agent for undisclosed principal, 127. for a principal, 128. Where agent's liability to cease on cargo being shipped, 128. Warranty of authority to make, 129. Personal Kability of agent, 130. i By custom, failure to name principal in reasonable time, 131. Representations in, 133 — 136. Representation amounting to promise generally a condition precedent, 136. Existence of ship — implied condition, 136. Statement of nationality, 138. Description, steamship, 139. Statement of class — relates to time of chartering, 140. of capacity, 141, 141a. of vessel's position, 143. " Tight, staunch and strong, &o.," 144. Warranty of seaworthiness on sailing with cargo, 144. Fitness for cargo, condition precedent, 145. Time charter, when must ship be fit? 146. Absolute character of contract in, 147. When do exceptions apply? 148, 251a. Right to cancel, for non-arrival by agreed date, 149, 221. Do exceptions apply to charterer's undertakings ? 150. Exceptions do not qualify freight clause, 150, 686a. Bill of lading given for goods shipped under, 151, 152. Effect when not authorized by shipowner, 152. Master signing biUs of lading, HabUity of charterer, 153. Liability of owner, 154, 155, 156, 157. Charterer's right to freights under bOls of lading to shippers, 155, 158. Effect of clause " master to sign bills of lading, &c.," 156, 161, 161a. Terms of, not preserved in biUs of lading unless so expressed, 160. "Without prejudice to the charter party," 156', 161. Lidemnity by charterer, 161b, Sub-charters, 161, 162. Delivery of outward cargo, not a condition of loading, 175. Time fixed for sailing to or arriving at loading port, condition precedent, 219, 221. Meaning of "ready to load," 221. Loading port to be named before saUing and without delay, 224. "So near thereto as she can safely get," 196, 225, 226, 453 458, 628. Does shipowner xmdertake to bring ship to loading port ? 227 228. Joint inability to load, 229. ' Delay in proceeding does not excuse loading, 230. Unless adventure frustrated, 231, 232. [The references are to the Sections.] INDEX. 885 CHARTER FAUTZ— continued. Shipo-vmer disohaiged if performance impoBsible -within a reasonable time owing to aooepted perils, 233. Series of voyages, 234. Express agreements for cancellation, 236. Effect of (performance becoming illegal — war, 237 — 240. Foreign law, 238, 247. Loading under charter party, 249 et seq. Charterer must have cargo ready, 252. Usual storing places, 252. Readiness in turn, 254a. Exceptions excusing delay in loading, 257 — 258o. Excusing delay in having cargo ready to load, 257a. Charterer's particular cargo, 257b. Erost; accidents, 257. Civil commotion, 258. Political disturbances ; strikes ; detention by railways ; causes bevond control, 258. ■ ^ Right to have cargo rdanded, 268. Time charters, hire imder, 570—673. Form of, App. B. Transfers of charters, 607, 676. Liens under. [&e Lien.] CITY OF LONDON COURT, Jurisdiction in rem, 692. CIVIL COMMOTION, Exception in charter of, onus of proof, 258. CLASS, Representation as to, material, 140. Relates to time of contract, 140. "CLEAN BILLS OF LADINa," 161. CLEARANCE, Shipowner's duty to effect, 284. Meaning of, 284. COAL, Unseaworthiness by insufficiency of , 79, 384, 385. Contribution for coal used in working off a, strand, 383, 386. COCKROACHES, Damage by, not a " peril of the sea," 86. COLLATERAL AGREEMENT, 164. COLLIERY, Usages as to turn, 620. COLLIERY GUARANTEE, Relation to charter party, 258c, 627a, 648. Exceptions under, 258o. " CoUiery working days," 258c. Usual form at Grimsby, 258c. Commencement of lay days under, 627a. COLLISION, Not excepted by " accidents of the sea," when negligent, 77, 85, 87, 88. Where both vessels belong to same owner, 77, 93, 101. Exception of, 93 ; meaning of, 672, 692. Effect of Harter Act on liability for, 103f. Jurisdiction of County Courts, in cases of, 692. Claim for, by assignees of bOl of lading, 702. Claim on behalf of underwriters, 702. [The references are to the Sections.} 886 INDEX. COLLISION— co^iiMMei?. Accidental, incidence of loss, 703. Both ships to blame ; claim in respect of cargo ; half damages, 704. Efieot of limitation of Hahility, 704. Adjustment between ships, 704. Claim against carrier not affected by right against other ship, 705. Exceptions protect carrier against claims in tort, 706. Cargo owners have a maritime lien on colliding ship, 706 Proceedings in rem, 706. Must owner be personally liable, 707. Foreign ship, jurisdiction over, 708. Liability, how determined, 709. In British waters, foreign ship must observe the regulations for preventing collisions; M. S. Act, 1862, s. 57.. 709. In foreign jurisdiction, rule as to liability, 710. Damages for loss of charter party ; loss of market by delay, 728. COMMISSION, Shipbroker's,.121 ; several brokers, 121. Clause in charter party, 122 ; who may enforce, 122. When ship lost, 122. CONDITION, Representation when a, 136, 144, 145. Interdependence of contract terms, 1 74 et seq. Waiver of, 177 ; failure of, attributable to party relying on, 178. CONELICT OF LAW. [/See Eoeeiqn Law.] CONSIGNEE. \_See Indoesee op Bill oe Lading.] When a party to the contract, 61. Bills of Lading Act, 1855 . . 62. Liability for general average, 444. Not entitled to notice of arrival, 465. Default of, in receiving cargo, 466, 474. Liability for landing expenses, 466. Eefusal of goods by, 473. Effect of M. S. Act, 476—482. Change of, 485. Advances by, to shipper. Factors Act, 1824, .604. LiabUity for freight, 603—606. Liability for demurrage, 636 — 639. Forcible taking by, trespass, 652. Effect of charter liens, as against, 668 — 676. Action in rem by, A. 0. Act, 1861. .690, CONSIGNMENT OF SHIP, Charterer may sue on agreement for, 123. Bight to procure homeward freight, 123. Custom as to procuring freight, 123, 195. Collection of freight, 124. Failure to consign ship to charterer's agents, charterer not liable for conse- quent demurrage, 612. CONSIGNOR. {See Shippeb ; Foewaeiiing Agent.] CONSTRUCTION OF THE CONTRACT, Effect of representations in, 133 — 137. Intention to be arrived at, 164. Document not to be altered by parol, 164. Ambiguous or indefinite words, probable meaning, 165 ; ejusdem generis, 165. Construction is for the Court, 166. Technical expressions for jury, 166, 168. Evidence where terms ambiguous or indefinite, 167. Previous course of business, 167. Ordinary meanings of words taken, 168. Special trade meanings, 169. Geographical terms, 169. {The references are to the Seciiona.^ INDEX. 887 CONSTRUCTION 0¥ THE COWVRA.Cn:— continued. Presumption in favour of special meaning;, 170. Opinions as to meaning irrelevant, 171, 188. Contra proferentem, 172. Effect to te given to the wliole document, 173. Inapplicable printed clauses, 173. Greater effect of written clauses, 173. Conditions precedent, 174 — ^176. Not available after part performance, 177. Nor if failure due to party relying on the condition, 178. Implied terms, 179 — 182. Overridden by custom, 183. Meaning of " reasonable time," 180. Trade practices, effect of, 181. Trade customs, 183 et seq. Opinions of business men, wben relevant, 188, 193, 194. Application of foreign law, 202 et seq. CONTRABAND, Fear of seizure, restraint of princes, 82. Discharging short of destination, 82, 293. Meaning of, 244. Contract to carry, in foreign war, not illegal, 245. Freight not allowed on, 556. CONVOY, Sailing with convoy, 284. Demurrage waiting for convoy, 635. CO-OWNERS. [_See Paet Ottoebs.] COSTS, Added to shipowner's statutory liability, 27. In actions by third persons, when recoverable as damages, 731. Extra costs of defence, as between solicitor and client, 731. OOtTNTT COURTS, Admiralty jurisdiction over contracts of carriage, &c., 692 et seq. {See In Reh.] COURSE OF BUSINESS, Evidence of, 167. CREW, Competent, condition of seaworthiness, 18. Thefts by, 77, 94. Their effects do not contribute in general average, 420. CUSTOM-HOUSE, Contract is with reference to regulations of, 207._ Effect of contract contrary to regulations of foreign, 216. Clearance at, 284. Entry at, by shipowner, 475. Goods in transit while in, 517. Delays at, 612, 630. CUSTOM OF TRADE, Customary meanings of words, &c., 169 — 171. Distinction of trade practices, 181, 182, 186. Custom may add a term to contract, 183. Overriding term implied by law, 183. Practice of single merchant insufficient, 183. May bind persons ignorant of it, 184. Employment of agent in a general market, 184. Must be known outside trade to bind persons ignorant, 185. To annex term, must be definite and uniform, 186. Unless some implied term is necessary, 187. Opinions of business men, 188, 193, 194. Must be reasonable, 189, 190. [The references are to the Sedimu.'] 888 JNDEX. CUSTOM OP TRAD^— continued. As to broker's commission, 121, 123. Meaning of, " by telegraphic authority," 129. As to disclosure of principal, 131, 196. Uniyersal custom, invalid if in conflict ■withla'W, 191, 586. Establishing lien, 192. Judicial recognition of, 192. Deductions new for old, 192, 423. Must relate to the subject of the contract, 195. Must be consistent with contract, 196, 458, 463, 466. As to place of discharge, 196, 458, 460, 463. payment of freight, 196, 684. stowage on deck, 281. negotiability of documents, 194, 487. Custom at Grlouoester as to discharge, 196, 628. London (Victoria Docks), 461, 468 ; (lighters), 462. Local customs, effect on outside contracts, 197 ot seq., 462. Local customs, effect on transferees, 200. Foreign usage, 207. Custom of whalers to render assistance without salvage, 335. Kxcosiug personal delivery, 468. Measurement of cargo for freight, 579. DAMAGES, MEASURE OP, Eor improperly breaking up voyage, 561. For detention beyond demurrage days, 609. On failure to ship goods, 711. General principles, 712. Hadley v. Baxendale, 713. " In the usual course of things ; " illustrations, 714. Loss of profits through delay in delivery by carrier ; and by vendor, 714. Notice of special circumstances ; illustrations, 715. Loss of profits, &c. by vendee, 715. Mere knowledge of special circumstances not always sufficient, 716. Home V. Midland Eail. Co., 716. Does the rule in Hadley v. Baxendale express the whole limitation as to remoteness? 717. The plaintiff must not aggravate the loss, 718. Unnecessary detention of ship by shipowner, 718. Substitution of another ship by freighter must be prudent, 718. The plaintiff must mitigate the loss where he can, 719. Expenses of, 719. Goods left behind at port of loading, 719. Shipowner must seek other cargo on charterer's failure to load, 720. Freight earned on substituted cargo to be taken into account, 721. Not so collateral benefits to shipowner, 721. Penalty clause in charter, 722. On failure to supply ship, or to take in goods ; extra cost of shipping, 723. Extra cost of procuring cargo owing to delay, 723. Where charterer engages a larger ship in substitution, 129, 723. Where no other ship available, 723. For delay in carrying and delivering, 724. Loss of the use of the goods ; special use, 724. Samples, 724. Deterioration and wasting of the goods by delay, 726. Loss of market value by delay, 726, 728. Failure to deliver ; value estimated at destination, 727. Where no market at the destination, 727. Deduction of freight, 666, 727. Wrongful sale at port of refuge, 727. Wrongful deprivation ; special value, 728. Losses by collision, 728. Liability to general average contribution, 728. Effect of misdescription of goods in bill of lading, 729. Effect of rights against third persons, 730. Insurances, 730. Liability for goods entitles plaintiff to sue, 730. posts incurred in actions by strangers consequent upon breach, 731. as between solicitor and client, 731. ^The references are to the Sections.} INDEX. 889 DANGEROUS GOODS. [&e Oaeqo.] "DAJSTGERS AND ACCIDENTS OF THE SEAS, &o." Humidity of ship, 13. Effect of exception, 84. The sources of danger, 85. Dangers not peculiar to the sea, 86. Arrest of goods as contraband or under bottomry bond, not, 86. Must be beyond human foresight and resistance, 87.- Co-operation of causes not sea perils, 88. Distinction from insurance cases, 89. Spread of sea-damage in cargo, 90. Ship iu dock, 91. " During the navigation," 91, 101. "Save risk of boats," 92. Under Harter Act, 103g. Temporary impediment, does not excuse performance, 226. DATS, " "Working days," 197, 613. " Colliery working days," 258o. Part of a day reckoned as a whole, 671a, 631. Meaning of, 613. "Running days," 613, 629. "Weather working days," 613, 631. " Working day of 24 hours," 631. DEAD FREIGHT, Calculation of, 263. No lien for, at common law, 658. Meaning of ; express lien for, 666. When binding on assignees of bill of lading, 671. " DEAD WEIGHT CAPACITY," 141a, 583a. DECK-CARGO, Responsibility for cargo improperly on deck, 16. WaiTanty of seaworthiness in relation to, 19. Implied term in bill of lading to carry below deck, 66. "At merchant's risk," general average contribution, 80. Usage as to, 182. Charterer not entitled to carry goods on deck, 262. Stowage on deck, when allowable, 281. Deck-houses, 281. Statute as to timber cargoes, 282. Jettison of, when a general average sacrifice, 370, 379 — 381. York- Antwerp Rules as to, 379, App. C. Contributes to general average, 420. "DEFAULT," does not cover crime, 94, 101. DEFECTS IN MACHINERY, 79. DELAY. [See Deviation ; DBkuBEAaE.] To avoid enemies, 1 1 . Deterioration of goods by, 13, 16, 89, 726. In reaching port of loading, 144—149, 218 et seq. In being ready at port of loading, 145, 146, 221. Frustration of adventure by, 231 — 233. In having cargo ready, 262. Knovra sources of, 264. In proceeding on voyage, 284, &o. Justifiable to avoid danger, 289. At port of call to preserve cargo, 291, 293. Master may delay reasonably before abandoning voyage, 309. In taking delivery, expenses, 466. Damages for, 724—726. Loss of market value not allowed, 726. [The references are to the Sections.'] 890 INDEX. DELIVERT BY SHIPOWNER. [See DisoHlEaE OS CAEftO.] Where goods wrongfully shipped, 67, 483. Effect of, at port of refuge, 307, 567—661. Manner of, 461. " Prom the ship's tackles," 461. Generally delivery at ship's side sufficient, 462. Into lighters, Uability of shipowner, 462. "Alongside," 463. Obligation to take "immediately," "directly," &o., 466, 479. Where consignee faOs to appear, expenses, 466. Generally there must be personal delivery to consignee, 467. Usage as to delivery, Victoria Docks, London, 468. Delivery to harbour porters, Dundee, 468 ; to master porter, Liverpool, 468. Delivery must be to the right claimant, 469. And of the right goods, 469. Delivery to named consignee, without biLl of lading, 469, 485. Delivery to holder of bill of lading without notice of other claims, 469, 502. Delivery to another carrier ; duty to forward, 470. Liability of shipowners when consignee fails to take delivery, 471, 473, 474. Distinction between hability for saifety and for right delivery, 471. Liability after warehousing, 472, 480, 481. Where consignee refuses or fails to take delivery, 473. Power to land and warehouse: Merchant Shipping Act, 1862," s. 67.. 476—479. Position of warehouseman as to delivery, 482. Delivery under contract, subject to superior claims, 483. To vendor who stops goods in transit, 483. Eight of unpaid vendor to, 483, 506. Where no bUl of ladiug ; shipper's directions, 484. Instructions of consignee, 484. Shipper may alter instructions, 485. Unless bill of lading taken and transferred, 486. Effect on stoppage in transitu, 614 et seq. Freight due upon, 544 — 546, 651. Implied contract arising from, 603 — 605. Joint operation, 616. Damages for failure to deliver, 727 — 729. DELIVERY ORDER. Symbol of the goods, 601. A document of title imder Factors Act, 604. Effect of order to buyer upon right to stop, 510, 517. by buyer in defeating right to stop, 634. DELIVERT TO SHIPOWNER. \_See Loadwq.] What is sufficient, 68, 251. DEMURRAGE. Principle of joint inability, 228, 229, 616. " Colliery working days," 268c. The undertaking as to time of loading or discharge is by the freighter, 608 Meaning of " demurrage," 609, 648. Damages for detention beyond demurrage days, how calculated, 609. Where time for loading or unloading is fixed, charterer's obligation is absolute, 611. Immaterial that shipowner cannot put cargo out, unless he is in default 611. Defaults of shipowner ; refusal to deliver properly ; failure to address the charterer's agents, 612, 644. Insufficient men ; overtime, 612. Delay in getting papers, 612, 630. Quarantine, 612. Shipowner must take all reasonable steps to get work done, 612a. Strike of shipovmer's labourers, 612a. Meaning of "days," "running days," "working days," " holidavs " "per day," "per hour," 613, 629, 631. """ays, " Weather working days," 613. " Usual despatch," " usual and customary time," 614, " Usual and customary manner," " as fast as ship can deliver," 614a. Where no time fixed ; meaning of reasonable time, 615. [The references are to the Sediom.} INDEX. 891 DEMURRAGE— coMiJMtMf?. Notice to charterer of arrival at port of loading required ; not so at port of discharge, 249, 465, 621. Cargo must be ready at the loading place, 252 — 254a, 617. Exceptions, 257 — 258a. Do not generally apply to time on demurrage, 258b. Ship should wait for cargo throughout demurrage days, 270, 720. No claim for subsequent delay after failure to load, 270, 718. Part day counted, 571a, 631. Appliances for taking cargo to or from alongside, must generally be ready, 618, 619. Where controlled by port authority, 619a. Railway trucks, 619a. " In regular turn " — usage, 620. If ship not ready for her turn charterer not liable, 620. Loss of turn by charterer's fault, subsequent detention by weather, 620. When do the lay days commence ? 621 — 629. Where must the ship be lying ? 623. Where dock named, 624. Where place of wide extent named, 624a. Effect of right to select berth or dock, 624b, 628. Charterer does not generally undertake that ship shall get to the agreed place without delay, 625. Agreement for "ready quay berth," 625. Delay in getting to usual place due to charterer's business, 626, 628. Where lay days not fixed, ship must be in agreed, or in a usual berth, 628. Is freighter liable for delay caused by his choice of berth or dock ? 628. Effect of " so near thereto, &o.," in determining the commencement of lay days, 629. Where ship is lightened ; do lay days run continuously ?— custom, 629. Detention after loading completed, charterer not liable, 630. Delay in obtaining clearances, 630. Detention for dues payable by charterer ; not demurrage, 630, 718. Ship frozen up owing to charterer's delay, 630. Loading and discharging at fixed rate ; separate operations, 632. Liberty to average time, 632. Despatch money "per hour," how calculated, 633. Construction of demurrage clauses, 634, 635. Waiting for convoy, 635. Liability for, under bills of lading, 636 — 642. When are charter terms as to, incorporated in bill of lading ? 637. When is biU of lading holder liable for demurrage at port of loading ? 637. Shipper primarily liable : quaere, not after assignment of bill of lading, 638. Liability of consignees or indorsees, 639. Agents, 639. Delivery of cargo sufficient to bind promise to pay, 639. Where several bills of lading, each with demurrage clause, 640. Detention through non-removal of goods lying above, 640. Distinction between shipments in a general diip, and under a charter, 641, 642. Is each biU of lading holder liable though demurrage paid by others ? 642. Master's right to sue for, 643. Charterer responsible for demurrage under charter party, 644. Though delivery to him, without bill of lading, refused, 644. Cesser clauses, 645 — 651. " Loading excepted," charterer liable for delay in loading, 646. Cesser clause explained by lien clause, 647. Delay in supply of stiffening, 648. Does " demurrage " include detention in the lien clause? 648, 667. Where no Uen given charterer continues liable for demurrage, &c. at port of loading, 649. But not for breaches after cargo loaded, 650. Failure to give orders at port of call, 650. Charterer may still be liable as holder of biU of lading, 651. No lien for, at common law, 658. Express lien for, 659, 667, 671. Delay in discharging, to preserve lien, 683. [The references are to the Sections.'] 892 INDEX. DEPOSIT, Of money under M. S. Act, 1894, s. 495. .475. Of till of lading witli banker, efleot, 498. DERELICT, Effect of abandoning ship on freight oontraot, 308, 556. Salyage in case of, 344. Ownership of, 36S. DESCRIPTION OE GOODS, Effect of, in bUl of lading, 69, 729. DESPATCH MOKEY, 633. DETENTION, Damages for, distinguished from demurrage, 609. Calculation of, 631. When covered by lien clause, 648. At port of call, 660. "DETENTION BY RAILWAYS," 258. DEVIATION, To avoid enemies, 11, 82. Exceptions do not apply after improper, 16, 287. Duty to deviate -where necessary for safety, 82, 289. Temporary obstacle, 290. Danger to ship, or to cargo, only, 291. Cargo owners need not be consulted, 291. May be barratry, 99. Liberty to deviate under Harter Act, 103g. In proceeding to port of loading, effect, 230, 231. Order of ports, 285. Liberty to call at ports, 286. Loss during, 287. Loss after, 288. To save life justified, 292. " Liberty to tow and assist," 292a. Delay to dry cargo, 293. To port of refuge, when a general average act, 402, 403. "DIRECTLY," 466. DISCHARGE OF CARGO. [See Poet op DisoHAEaB ; DEUCEBiaB.] Customs as to, 182, 461. Custom as to place of, 199, 458, 459. Expenses of, at port of refuge, 408, 409, 411. From sunk or stranded ship, 397 — 401. Must owner discharge cargo, to lighten ship, in order to reach port, 457. Cost of lightening, 457, 458. Option as to place of, 460. Custom to discharge at more than one place, 460. Mode of, follows practice of port, 461. Where consignee requires delivery into lighters, wharfage rates, 461. Shipowner's duty in putting goods out of ship, 462, 608. Separation of cargo, 462. Charterer's duty to provide men and appliances for receiving, 462, 618, 619 Responsibility for lighters used, 462. Effect of customs as to, 462, 463, 468. " Alongside," 463. By-laws ; lumpers ; validity, 464. Where consignee fails to appear, landing expenses, 466. Loss of cargo after discharge, 467, 468. Liability of shipowner where consignee fails to appear, 471 — 474. Power to land and warehouse ; M. S. Act, 1894. .475. Landing for assortment ; consignee ready ; expenses, 476, 477. Landing after entry by consignee ; twenty-four hours' notice, 475. Power to land though consignee not to blame, 476. [The references are to the Sections.'} INDEX. 898 DISCHARGE OP GXRGcO—continueil. Power must he used with fairness, 476.' ■Wtere consignee ready to take part of cargo, 477. Consignee cannot claim delivery contrary to custom, 477. Delivery must be taken in reasonable time though notice not given, 478. Shipowner may contract himself out of the statute, 479. DISEASE, Loss by, when an act of God, 10. Inherent defect, 12. Unfitness of ship, iufeotion, 20, 79. DOCK, Delivery to dock company, when suflcient, 468. Dock warrant, 501, 504. Effect of regulations of, 614, 619a, 623. Effect of naming, 624, 627. Selection of, by charterer, 624b, 627, 628. DOCUMENT OP TITLE, Definition in Factors Act, 504. Transfer of, effect on right to stop, 532, 535. "DEOUGHT," 257. « DUE DILIGENCE," Harter Act, 1893, s. 3. .103a. Meaning, 103d. DUNNAGE, Duty of shipowner to provide, 273. EMBARGO, Pear of, shipowner not excused from taking cargo, 82, 271. Is a restraint of princes, 82. Temporary embargo does not dissolve charter party, 242, 255. ENEMY, Carrier not liable for acts of, 11, 22. Harter Act, 103g. Effect of war on trade with, 243. EXCEPTIONS. [See Bell op Lading ; Chabtee Pabtt.] At common law, 7, 11, 12, 22. Do not excuse when carrier is niegligent, or deviates improperly, 16, 22. Or if ship unseaworthy, 17, 22. In bill of lading, relate to the stowage, &c., 58. Express exceptions construed against shipowner, 77. General exceptions construed not to excuse negligence, 77. Onus of proof, 78. In charter party, when do they apply, 148, 149, 251a, 686a. Do not affect right to cancel for not arriving by agreed date, 149. Do they apply to charterer's undertakings ? 150. In charter party, do not quaUfy freight clause, 150, 586a. As to delay in loading, 257 — 258c. In charter party, not incorporated in bill of lading by " other conditions as per charter party," 160. Effect of, after goods warehoused, 474. Protect shipowner against claims in tort, 705. "EXPECTED TO BE AT," &c., 143. EXPLOSIVES, 280. [TAe references are to the Sections,'] 894 INDEX. FACTORS, Consignment to, stoppage before delivery, 528. Effect of transfer of bill of lading to, in defeating'riglit to stop in transit, 637. Liens valid against charterer's factor, 672. EACTOES ACTS, 504. Position at common law apart from, 489, 490. EEERTMAN', Liability of, 3. Obligation to land, practice, 187. "EINAL SAILING," 220, 567. EIRE, Not generally an act of Grod, 8. Not a "peril of the sea," 86. Statutory exemption, 24. Exception in bill of lading, 77, 83. General average not affected by, 80. Damage done in extinguishing, general average, 390. where done by port authority, 374a. Loss by, after discharge on to wharf, 467. before completion of loading, 259, 562. EITNESS EOR CARGO. [See Seawoethinebs.] ELOTSAM, 355. FLUIDS, Wasting, 12. FOREIGN GOVERNMENT, Prevention of performance by, 23, 247, 255. Foreign revenue laws not recognized, 247. FOREIGN JUDGMENTS, 697. Sale of ship under, in rem, 697. FOREIGN LAW, Law of the flag determines master's authority to contract, 42, 204. Also the shipowner's total liability, 206. And the general effect of contract, 206. But not its effect as evidence, 206. Express agreement to adopt negligence clause, 103a. Conflict of laws, 201. Law of place of contracting, 202. Law of place of performance, 203, 207, 208. Intention governs, 203. Law of place of delivery, 209. Intention not to adopt the law of the flag, 210. Law of flag determines master's authority on voyage, 211, 301. Through carriage, 212. Validity of conteact in form, 213. Stamps, 213. Legality of contract, how determined, 214, 215, 216. Effect of stipulations void by foreign law, 217. Illegal, 247. The remedy and procedure determined by the lex fori, 697. Collisions on high seas, 709. In foreign jurisdiction, 710. FOREIGN SHIP, Meaning of Queen's enemies, 11. Effect of acts of ship's government, 23. Authority of master of, 42. Effect of war by nation of, 238. Lavf of the flag. [See Foebion Lav.] {The refermcei are to the Sections.} INDEX. 895 FOREIGN snip— cmtinued. Wreck of, 358. Jurisdiction, im rem over, 68S, 697, 708. liiability of, for ooUision, how determined, 709. . Must conform to the regulations for preventing collisions when in. British waters, 709. "FORTHWITH," 218, 466. FORWARDIN-Q- AGENT, Contracts for shipment by, 51. Power to sue, 61. Delivery by vendor to, when does it end the transit? 520—522. liiability for demurrage, 639. FRAUD, Goods shipped in fraud of owner, 67, 483, 662. BiU. of lading obtained twice over by, 69. In describing gopds in biU of lading, no damages for a loss, 69b, 72, 729. Defence under s. 3, Bill of Lading Act, 70. Avoidance of charter party on account of, 133. Of master, liability of owner, 300. Title of assignee where biU of lading obtained by, 496. Effect on stoppage in transitu, 536. "FREE OF COMMISSION," Consignment of ship to charterer's agent, 123. FREIGHT, Shipper's liability for, preserved by Bills of Lading Act, 1855 , . 62. Collection of, by consignees of ship, 124. Charterer's right to freights under biUs of lading, 155, 158, 599. Shipowner's right to sue for those freights, 156. Payable " as per charter party," ambiguity of charter party, 162. No right to set off damages against, by general custom, 191. Deduction of discount from, by custom, 196, 584. Shipowner's right to freight on cattle carried on deek, ship chartered for lump sum, 262. Loss of, failure to ship cargo of "merchandise," 262, 264. Cannot be made good by shipping passengers, 264. Must be paid on goods demanded back by shipper, 268, 269. Freight earned by transhipment, 304, 547. Liability of cargo owner for, on transhipment, 306. Efieot of abandoning voyage, 307, 308. Hypothecation of, 310, 317. Must be exhausted before cargo applied in payment of bottomry bond, 318. On transhipment, priority to bottomry bond, 319. Lien on, for salvage, 324. Contribution to salvage in respect of, 351. Though not yet completely earned, 351. Contribution to general average by, 410, 433 et aeq. Advanced freight should not contribute to reloading at port of refuge, 410, Contribution to general average loss of, 433 et aeq. Contribution by, to general average, 433 et aeq. Deductions from, for general average, 436. Contribution by charter freight payable on completion of return voyage, 438. Contribution by freight to be subsequently earned, 439. Contribution by cargo-owner where freight paid in advance, 440. Advances under charter for round voyage, 441. Eight to hold cargo for, when ship unable to go to port of discharge, 451. Stop for, on goods in warehouse, 475. Position of agent making deposit, 475. When payaih, 542 — 573. Meanings of "freight," 542, 663. Generally payable on delivery, 543. Readiness to deliver entitles sldpowner to, 543. Failure to reach usual discharging place, 643. {The references are to the Sections.'] 896 INDEX. PEEIGHT— c, When payable — continued. Illegal voyage, deliTery does not entitle to, 644. How long must owner remain ready to deliver, 545. Consignee should pay oonourrently with delivery, 546. Need of tender may be waived hy inconsistent claim, 546. No freight earned if completion of voyage prevented, 547. Nor if goods sold or left at port of refuge, 647, 661. Loss of part does not affect right to freight on remainder, 547. Completion by transhipment, 647. Failure to complete voyage owing to inherent infirmity, 548. Animals dying on voyage, 548. !Preight payable though goods damaged, 549. If they have not lost their identity ; test as to this, 549. Cement solidified ; bricks crushed, 549. Hides, damaged outside skins, 649. Lump freight payable on delivery of cargo ; what cargo must be delivered? 660. Payable though shipowner makes default in delivery, 660. Delivery of part cargo by another ship, 651. Lump sum payable on default of return cargo ; no deduction of freight earned from other shippers, 552. Lump freight payable on complete delivery, 553, 681. Prevention of voyage by freighters, full freights payable, 654. Failure of freighter to appear in legal proceedings, 664. Abandonment of ship at sea, freighter may treat contract as ended, 665. Whole freight payable on captured goods, 656. On goods unloaded after re-capture, 556, 560. Fro raid freight, 567, 659. Full freight upon part delivered, 658. The shipowner must have been able to carry the goods on, 660. Acceptance of proceeds of sale under order of Court, 561. Sale of perishing cargo ; sale for repairs, 561. Freight payable in advance ; not recoverable though ship lost, 662. To be advanced " if required," ship lost before requirement, 662. Cargo destroyed at port of loading, 562. Construction of contracts as to payment in advance, 563, 564, 565. Payable " on signing bill of lading," voyage given up after cargo shipped, 663. Distinction between freight and advances, 564. Effect of " subject to insurance," 664, 566. Where deficiency of bill of lading freight to be paid in cash, 665. Guarantee of freight, 565. Payable on "sailing," or "final sailing," 667. Not payable if ship lost, unless she sailed seaworthy, 568. Payment of freight on cargo in advance ; loss of part of cargo ; advance to be deducted on settlement, 569. Time freights, when payable, 570. App. B. When dependent on arrival, 570. " Monthly in advance," 670. Outward and homeward voyage, 671. Where payable on " final discharge," 671. Kefusal by charterer to give instructions for voyage, freight not pay- able, 671. Time occupied in repairs not generally deducted, 672. " Collision," " breakdown of machinery," 572. Government charters : " inability to execute or proceed," 673. How calculated and paid, 674 — 587. Ambiguous reference to charter, 162. Calculation of, where no rate stated, 574. Shipment by shipowner " freight free," 676. Mortgagee cannot claim more than is reserved, 675, 692. Transfer of ship before shipment ; authority of master to take goods " free," 575. Unpaid vendor stopping goods not liable for, where free on owner's account, 576. {The references are to the Sediom.l INDEX. 897 FKEIGBT— continued. How calculated and paid — oontimied. Express clause as to deductions, not qualified by exceptions in charter party, 150, 586a. Custom at port of discharge to allow discount, 196, 684 Measurement of goods for ; lowest to be taken, 576. Absorption of water by wheat ; expansion of cotton, 576. Agreements as to, "nett weight delivered," "invoiced quantity," 577. Intake measure of quantity delivered," 578. Usages as to measurement, 579. Ambiguity as to mode of measurement, 580, 581. Bai of lading quantity not generally conclusive, 581. Expenses of measuring, 582. Grain trade, 582. Scales of freight for different goods, 583. Payment by bills, how made, 584. Lien for, where consignee elects to pay in cash, 584. Bin while running suspends claim for freight, 585. Master has authority to take biU, 585. _ Effect of taking bill on liability of shippers, 585, 602. Claims for damage cannot be deducted from, 586. Universal custom to deduct invalid, 586. Eight to counter-claim for damage, 686. To whom payable, 588 — 601. Master's authority to collect, and sue for, 589, 590. Master cannot claim possession of, as against owner, 689. Several part-owners ; expenses to be deducted from, 590. Managing owner ; cannot assign freight, 590. Mortgagee of shares and ship, subject to expenses, 590. Bight to, passes to purchaser ; not to legatee, 591. Contract to pay does not pass to purchaser, 591. Payment to person beneficially entitled sufficient, 591. Mortgagee only acquires right to, on taking possession, 592. Succeeds to lien for freight accrued, 592. Charterer's right to deduct advances as against mortgagee, 593. Where several mortgagees, 594. What is sufficient possession to entitle mortgagee to ? 595. Assignees of freight ; priorities, 596. Euture freights, 596. Effect of notice of assignment, 696, 697, 598. Assignee of mortgagor, 41, 597. Priorities as between assignees of freight and assignees of ship, 597. Eight of freighter to set off against assignee of freight, 598. Effect of stop by assignee of freight, 598. Charterer's right to deduct advances, as against as.signee of freight, 698. Is owner or charterer entitled to bill of lading freights ? 599. Owner may retain them to satisfy his lien, 599. Underwriters entitled to whole freight if ship completes voyage after abandonment to them, 576, 600. Not if cargo carried on in another ship, 600. Claims for loss of, do not pass to underwriters, 600. Proceedings in rem against ; cargo may be arrested, 601. Maritime lien upon, attaches to sub-freights due to charterer, 601. By whom payaile, 602 — 607. Primarily by shipper when no charter party, 602. Right to claim from shipper after delivery to consignee, 602. Liability of one who receives, under bill of lading, 603. Liability by course of business, 604. Effect of notice that receiver is agent only, 605. Effect of BOls of Lading Act, 606. Is consignee liable for freight payable in advance? 606. Not where bill of lading represents that freight has been paid, 606. Liability for charter-party freight, 607. Transfers of charters, 607. Effect of cesser clauses, 607, 645—650. Charterer may be liable as bill of lading holder, notwithstanding cesser clause, 607, 651. [The references are to the Sections.} C. C. 3 M 898 INDEX. inXElGrH-T— continued. Zien for freight, 653—682. ShipowBer's lien for, at common law, 653. Not lost by making express contract, 654. Lien is confined to freight on the particular shipment, eflect ofTisage^ 654. Extends to charter freights, 665. QucBre, where charterer may use the ship as a general ship, 656. No lien for difference between charter and bill of lading freights, made payable in advance, 656. On what goods may the lien be enforced ? several bills of lading, 657. Lien clause in charter covers freight on outward cargo, 660. Where payment to be after delivery, inconsistent with lien, though freighter insolvent, 661. Charter giving possession to charterer, inconsistent with lien, unless express, 662. Is there a Uen for freight payable in advance ? 663. Not if voyage given up, or ship abandoned, 664. Nor if acceptance in advance running, 665. Lien for charter freight, when preserved against holder of bill of lading, 668, 669. Shipper put on enquiry, 673. Collusion between shipper and charterer, 674. Where goods shipped under agreement with charterer, without bill of lading from ship, 676. Lien for, lost by taking bills, 679. When is tender of freight waived? 680. Lien for charter freight attaoh,es to bill of lading freights collected by shipowner, 681. Lien for, when performance of charter impossible, 682. FREIGHT NOTE, 66. ■ Railway, 109. FROST, Effect of, may be by act of Ood, 9. Delaying cargo, 262, 253. Exception of detention by, 257. Frozen cargo, preventing full loading, 265. Delaying loading or discharge, charterer liable if time fixed, 611 . FRUSTRATION OF ADVENTURE, By delay, 231—233. " FULL AND COMPLETE CARGO," 265, 266. GENERAL AVERAGE, Exceptions in bUl of lading do not affect contribution to, 80, 103, 104, 373b. Unseaworthiness of ship does not excuse cargo from contribution, 177. Customary practices of adjusters, effect, 191. Customs limiting the liability of underwriters for, 196. Law of the place of adjustment governs, 207, 427. Lien for, priority to bottomry bond, 319. Meaning of general average sacrifice, 361, 366. expenditure, 362, 391. Origin of the rule, 363. Does the contribution depend on contract P 364. Stipulations as to general average rules in bills of lading, 364. York- Antwerp Rules, 364, App. B. Meanings of " general average," 366. Derivations, 365. General average sacrifices, 366 et seq. Definition, 366. Consequences of act, tests, 366. [Tlie references are to the Sections,'] INDEX. 899 GENERAL XTERAGr'E—conHmecl General average sacrifices — continued The danger must be to whole adventure still at risk, 367. Fire on board after cargo partly discharged, 367. The danger must be imminent, 368. Burning spare spars in order to pump, 368, 384, 385. Precautionary jettison of deck cargo, 368. Damage to cargo during repairs, 368, 378, 413. No saoriece where thing abandoned was already in effect lost, 369 Cutting away hopeless wreck, 369, 370. SUpping fouled anchor, 369. Scuttling vessel with lime on fire, 369, 390. Jettison of goods on fire, 369. Abandonment of impossible voyage, 369. Sacrifice of things in peculiar peril, 370, 371. Cargo adrift on deck, 370. Spaia, sails, &c. on mast virtually lost, 370. Sacrifice without alternative, 371. Success of sacrifice not necessary, 372. Mistaken sacrifice by master, 372. Goods saved from wreck, 372. Benefit to property meant to be sacrificed, 373. Goods put into lighters, 373. Exception, fault of person claiming contribution, 373a. Innocent claimants not affected, 373a. Not founded on circuity of action, 373b. Is it dependent on terms of contract of carriage ? 373b. Effect of negUgenoe clause in bill of lading, 373b, 373o. Effect of Harter Act, 373o. Sacrifice shoidd generally be by person in command, 374. Must be made prudently, 374. Sacrifice by port authority, 374a. Extinguishing fire on board, 374a, 390. Common maritime adventure, separate ships, 374b. Jettison to save lives from another ship, 374b. Separation of interests a condition of general average, 374o. Jettison of cargo, 375. Putting out cargo on rafts, &c., damage by exposure, 376. Distinction between acts for the general safety and acts for benefit of cargo, 376. Exposure of other cargo in making jettison, 377. Derangement of stowage, 377. Loss of marks, mixture of goods, 377, 505. Bulk cargo pumped or baled out, 378. Damage to cargo at port of refuge, 378, 413a. Jettison of deck cargo not generally contributed to, 379, 381. Exception where carried according to custom, 379. And where stowed on deck under charter party, 380. " General contribution" by shipowner & owners of deck load, 381. Sacrifices of ship's material, 382. PoKcy of requiring contribution by cargo, 382. . Exposure to extraordinary risk, 383. Unusual press of canvas, not a sacrifice, 383. Expenditure of gunpowder, &o. in fight, 383. Working engines on strand, consumption of coal, 383. The use must have been one not intended, 383, 384. Auxiliary steam, extraordinary expenditure on coal, 384. Stores must have been reasonably sufficient at starting, 385. Rules of average adjusters, jury rig, stranded ship, 386. Losses by voluntary stranding, 387, 388, 434. Rule in the United States, 389. Extinguishing fire on board, 390, 374a. Burden of distinguishing sacrifice from accident, 390. [^The references are to the Sections,'] 3m2 900 INDEX. GENERAL AyEBAGrS— continued. General average expenditure, 391 et seq. Mast be under oiroumstanoes of common peril, 391, 392. Salvage not generally a general average expenditure, 393, 394. Although whole salvage paid by shipowner to liberate ship and cargo, 395. A ransom may be a general average payment, 395. Payment of employed salvors may be a general average expenditure, 396. Expenditure must have been reasonably necessary, 396. Expenses of saving stranded ship and cargo, 397. When does ship contribute to discharge of cargo ? 398. When does cargo contribute to getting ship ofi? 399. The two operations should be treated distinctly, or else as one whole, 400. Can the shipowner charge for his services ? 401. Deviation to port of refuge owing to defects at starting, 402. Deviation in distress, or to avoid danger, a general average act, 403. Expenses of going in and coming out, 404. Wages and maintenance of crew at port of refuge, 405. cattlemen, 405. Putting in to repair, 406. Cost of repairs when damage accidental, 407. Common benefit not sufficient to make the cost a general average expenditure, 407. Expenses of discharging cargo, 408 — 411. Practice, 409. Where motives for discharging mixed, 409. Expenses of reloading, 410 — 412. Liability of freight to contribute, 410. Advanced freight should not contribute to reloading unless as a general average expense, 410. Expense of warehousing cargo, 412, 413. Cattle fodder at port of refuge, 413. Resolutions as to port of refuge expenses of Average Adjustment Association, App. C. Expenses substituted for general average expenditure, 414. Rules of Average Adjustment Association, 414. Contributions, 415 et seq. Principle of general average contributions, 415, 417. Sacrifices and contributing values adjusted on completion of voyage, 416, 418, 419. Goods sold or left at intermediate port contribute, 416. Valuation of goods, 419. Loss of value by entering port of refuge, 419. Ereight and expenses at destination deducted, 419. No contribution for lives saved, 420. Nor for provisions, wearing apparel, &c., 420. Valuation of sacrifice of ship's material, 421. Where ship condemned, 421. Deductions for new work, 422. No deductions on first voyage, 422. Valuation of ship for contribution, 423. Valuation of general average damage repaired on voyage, 423. Adjustment when voyage broken up at intermediate port, 424. When the voyage is to several destinations, 425, 426. Law of place governs adjustment, 427. Voyage must not be broken up unnecessarily, 427. Preparation of average statement, 427, 442. Supposed distinction as to adjustment of general average expenditure, 428. Repayment should not be dependent upon arrival, 428, 429. General average expenditure not analogous to salvage, 430. Should the expense of repairing general average damage to ship be repaid in any event? 431. Expense of raising money, 432. Contribution to goods sold to pay general average expenses, 432. l_The references are to the Sections."] INDEX. 901 GENERAL AY'ERA.Gr'E—contmuea. Freight contributions, 433 et seq. Contribution to loss of freight, 433, 434, 437. Contribution by freight of goods saved, 433. Where bill of lading freight differs from charter party, 435. Deductions in valuing freight, 436. Freight payable on arrival of ship, 437. Contribution by freight payable on completion of homeward voyage, to sacrifice on outward voyage, 438. Contribution by freights to be earned on subsequent voyages, 439. Contribution by owner of goods where freight paid in advance, 440. Advances under charter for round voyage, 441. Remedies, 442 — 445. Specimen of average adjustment, 423 — 425. Shipowner has a Hen for general average contributions, 442. He must exercise it for the cargo owner, 442. Average bond, 442. Eemedy personal only, not in rem, 442, 445. Who may be sued for contribution where cargo has changed hands ? 443. Liability of consignee, 444. Owner of goods may sue for contribution, 445. Counter-claim for, in Admiralty Court, 445. GEOGRAPHICAL TERMS, Construction of, 169. " GOOD ORDER AJSTD CONDITION," Meaning, 73 — 75. Inherent defects, 75. GOVERNMENT, Prohibitions by, 23, 150. Acts of, "restraints," 82. Preventing loading, 236, 237, 247, 255. Preventing discharge, 241, 611. Effect on demurrage, 611. GOVERNMENT CHARTERS, 114, 573. GRAIN CARGO, Statute as to loading, 283. Board of Trade notices as to, 283. Custom as to expenses of weighing and measuring, 582. HARBOUR PORTERS (DUNDEE), Effect of delivery to, 468. HARTER ACT, U.S., 1893.. 17, 103a— 103f, 373b, 704. "HINDRANCES," 258a. HIRE, Liability of hirer of chattel, 112. Charter parties amounting to contracts of, 114 — 116. HOLIDATS, 613. HOYMAN, Liability of, at law, 3. HYPOTHECATION. {_See Bottomey.] Powers of master, 2U, 310, 320. [The references are to iJie SecUons,] 902 INDEX. ILLEaALITY Of contract, or of performance, effect, 23,' 237. Acts of foreign governments, 23. By what law is legality determined ? 214 et seq. Where legal at place of performance, 214, 217. Contracts illegal abroad, 216. Effect of war with country of loading, 238. War of the country to wluch the ship belongs, 239. Where carriage partly performed, 240, 241. Temporary restraint of voyage, 242. Policy on cargo illegally stowed, when void, 282. Freight not recoverable when voyage illegal, 544. "IMMEDIATELY," 466. IMPOSSIBILITY Does not excuse if contract absolute, 23, 74, 255, 612. INDOESEE OE BILL OE LADING, Transfer of contract to, 62. May sue for breaches prior to indorsement, 62. Liability for prior breaches, 62. Holds free of shipper's collateral engagements, 63. Claim for bad stowage by, where shipper estopped, 63, 275. Claim of, confined to goods actually put on board, 63a. Effect of re-indorsement by, 64. Effect of sale without indorsement, 64, 66a. What property must pass in order to transfer contract, 66. Where property belonging to indorsee before shipment, no transfer, 66a. Holding by indorsement from charterer, 152. Where bill of lading given wrongfully by master, 152. How affected by implied customary terms, 200. Possession of goods constructively transferred to, 486. Conditional indorsement, 488. Title of, depends on that of iudorser, 489, 490. Liability of, for freight, 606. Is he liable for freight payable in advance ? 606, Liability of, for demurrage, 636 — 639. Charter party liens not preserved against, unless incorporated in bill of lading, 668. When is Ken for charter freight incorporated P 669 — 676. Notice of charter party not sufficient, 670. Liens for dead freight and demurrage, 671. Action in rem hj, Admiralty Court Act, 1861 . . 690. INDORSEMENT OE BILL OF LADINa, Effect of, on contract, 62 et seq. Constructive transfer of possession of, 486. Manner of, 487. Special verdict in Lickbarrow v. Mason as to, 487. Essentials of negotiability of bill of lading, 487, 489. When conditional, 488. Subject to acceptance of draft, 488. Possesion of bill of lading, vrithout title, does not enable holder to indorse vaUdly, 489—491. Where owner of goods has obtained bill of lading by fraud, 496. Effect of, on property in the goods, 497. To banliers ; pledge or mortgage ? 498. Intention the test, 499. Effect of, after goods assigned, 500. BiU of lading in force imtU goods delivered under, 501. Indorsement of one "part " to assignee sufficient, 503. Purchaser cannot require more, 503. Effect of Factors Acts on validity of, 604. Effect of, in defeating right to stop in transit, 632, 633. [The references are to the Sections.'} INDEX. 903 INHEEENT DEFECTS, Damage arising from, liability for, 10, 12 — 14, 75, 97.. Carrier liable for, when he has been negligent, 13, 77. Harter Act, 103g. Sacrifice owing to, no contribution, 366. Failure to complete voyage owing to, no freight payable, 548. Damages for deterioration by delay, 726. "IN EEGULAB TURN," 620. IN REM, REMEDY, For broker's commission on charter, 122, 695. Against ship and freight ; bottomry holders, 317. Damage to the cargo not essential ; improper abandonment, 35i, 689. Cargo may be arrested to secure freight, 601. Not unless freight has been earned, 601. Collision on outward voyage, arrest of return cargo, 601. The part arrested may be retained for the whole freight, 601. Jurisdiction over, 684. Remedies in rem, and in personam, cumulative, 684. For defaults in carriage of goods, 685. Admiralty Court Act, 1861, s. 6. .685. The goods must have been brought into an English port by the ship, 685, 686. No jurisdiction where goods have been properly transhipped, 686. Non-delivery, jurisdiction if ship puts into English port, 686. The port in England may be a port of call only, 687. If the jurisdiction once attaches it continues, 687. Where the voyage has ended at a port of refuge in England, 687. The breach must relate to goods which were or should have been carried into the port, 688. Claim against ship for not loading at the agreed place ; no jurisdic- tion, 688. For refusal to deliver to vendor claiming to stop goods, 689. " Consignee or assignee of any bfll of lading," claims on contract, 690. Any person beneficially interested may sue in rem for torts for which the diipowner is answerable, 691. Jurisdiction of County Courts, &o., in rem, 692. Ordinary jurisdictions not interfered with, 692. County Courts Admiralty Jurisdiction Act, 1868, confined to cases within the powers of the Admiralty Court, 693. Not so the County Courts Admiralty Jurisdiction Act, 1869 . . 693, 694. Remedy given by the Act of 1869, though goods not carried into an English port, and though owners domiciled in England, 694. Remedy in rem against cargo given to shipowner, 694. Effect of sect. 2 of County Courts Act, 1869 . . 695. Passenger's luggage not " goods " within the section, 695. Queere, as to a claim for the shipbroker's commission, 696. Qutere, as to claims against the ship where the owners are not liable, 696, . 701, 707. Where charterer in possession is liable, 696, 707. Where one part owner is liable, 696. Jurisdiction exercised over foreign ships, 697, 708. Foreign judgments against the ship enforced, 697. Originally based on a maritime lien, 698. Statutory remedy does not generally confer a maritime Uen, 699. Distinction from maritime lien, 700. Charge given by, is, subject to charges existing at time of arrest, 700. Remedy only available so far as property continues to belong to the person liable, 701. Cargo owners may proceed in rem against colliding ship, 706. Provided that the ovraers or those ia control of her are personally responsible, 707. Foreign ship, 708, 709. Where collision within foreign jurisdiction, 710. IThe references are to the Sections.] 904 INDEX, INSUEANCE, Exception of "-loBS capable of being coTcred by," 80, 105. Rule as to proximate cause, 88, 89. Carrier not relieved by insurance for shipper, 105. " Insurance risks," 105. Advances of freight " subject to inaiirance," effect, 664, 566. Claims on behalf of underwriters, 702. Not a ground for diminiBhing damages, 730. INTERPLEADER, By master, conflicting claims to cargo, 469, 502. By consignee, as to freight, 588. "IN TURN," 620. Duty of charterer to have cargo ready, 254a. But not for a mere chance opportunity, 254a. JETTISON. [See aKNEBAi Atebage.]- Shipowner not liable for, when done for safety, 15. Meaning of " jettison " in bill of lading, 77. Does not affect ship's liability to contribute, 373b. Dangerous goods, 366. Jettison of deck cargo, 370, 379—381. Uncertainty as to which goods jettisoned, proportional distribution, 505. JEWELLERY, Declaration as to, 24. JOINT INABILITY, Loading, 228. Difficulty as to the principle, 229, 616. Discharging, 616. JURISDICTION, Admiralty. [See In Rem ; Remedy.] Collision within foreign, remedy in England, 710. jm DISPOKENBI, Reservation of, by shipper, 492 — 495. LANDING CARGO. {See Disohaegb op Caeqo.J LATENT DEFECTS, Shipowner liable for, in ship, 17. Exception of, 79, 102a. LAY DAYS. ISee Demtoeaue.] LEAKAGE, Carrier's liability for, 12. Exception of, 77, 95, 98. Result of ignorant stowage, 96, 97. Exception covers excessive leakage, 98. But not leakage from other goods, 98. "LIBERTY TO CALL AT PORTS IN ANY ORDER," 286. "LIBERTY TO TOW AND ASSIST," 292a. Under Harter Act, 103g. [The references are to the Sections,'] INDEX. 905 LIEN FOR EEEIGHT, &o., Charter liens not preserved against bill of lading holder, unless expressly incorporated, 160, 161, 668, When is lien for charter freight incorporated P 669. Notice of charter party not suflSoient, 670. Liens for dead freight and demurrage, when incorporated, 671. Liens valid against charterer's factor, 072. Against shipper where bill of lading not authorized, and shipper put on inquiry, 673. Collusion by shipper with charterer, 674. Is there a lien for freight payable in advance ? 200, 663. No lien if the voyage is abandoned, 664. No lien if acceptance in advance running, 665. Where completion of voyage prevented, 240, 682. Upon cargo, for expenses of preserving it, 295. for general average contributions, 319, 442. Freight on transhipment, priority over bottomry, 319. Lieu for general, average contributions ; particular charges, 442, 658. Obligation to exercise, 442, 445. Eespousibility of owner while exercising, 473. Eetention of, by stop under M. S. Act, 475. Where carrier becomes warehouseman, 513. For freight where consignee elects to pay cash instead of in bills, 584. Mortgagee taking possession succeeds to lien for freight accrued, 592. Assignee of freight placing stop on cargo, obtains lien, 698. not defeated by set-off, 598. Ovmer with hen for charter freight may retain the bill of lading freights, 599. Lien for " demurrage " includes detention at port of loading, where charter contains cesser clause, 648, 667. Lien for demurrage ; does it cover detention ? 648, 667. Nature of Ken for freight, &o., 652. Not enforceable on goods wrongfully shipped, 652. Lien for freight at common law, 653. Not lost by making express contract, 654. Is confined to freight on the particular shipment ; effect of usage, 654; Extends to charter freights, 655. Qutere, where charterer may use the ship as a general ship, 656. How enforced, 657, 677. No lien for dead freight ; or demurrage ; or charges ; at common law, 658. Early form of lien clause, inoperative, 659. Modern form ; attaches to outward cargo, 660. Inconsistent terms ; payment to be after delivery, 661. Payment by bills, not inconsistent, 661. Charter giving possession to charterer inconsistent, unless lien express, 116. 662. Lien for dead freight, 666, 671. Validity of charter party liens against goods under agreement with char- terer, without bill of lading from ship, 676. Where cargo received under sub-charter, 676. Shipowner must keep possession of goods, 677. When required to warehouse in particular place, lien preserved, 677. Lien will revive, on re-taking possession after warehousing ; on dis- honour of bill, 678, 679. May be lost by inconsistent conduct ; taking bills, 679. When is tender of freight waived ? 680. Lien for charter freight attaches to bill of lading freights collected by ship- owner, 681. Expenses of preserving, not recoverable ; except as damages, 683. Shipowner cannot claim for detention of ship to preserve, when goods might be landed, 683, 718. LIFE SALVAGE, Deviation for, justifiable, 292. Under Harter Act, 103g. M.S. Act, 1894.. 329— 331. IThe references are to the Sections.'] 906 INDEX. LIGHTENING SHIP, Port not a " safe port " if ship must be lightened, 449. Do lay days run where ship lightened ? 457, 629. "So near thereto, &c.," obligation to lighten and proceed, 457. Custom at Gloucester, 629. LIGHTER, Liabilily of carrier by, 5. Eire on, not excepted by statute, 24, 83. Cost of lighterage, loading, 250. DeUvery into, wharfage rates, 461. Seaworthiness of, responsibility, 462. Delay through scarcity of, 618, 619. LIMITATION OP LIABILITY, Eormer acts, 25. Merchant Shipping Act, 1894. .26. Waiver of, by contract, 26. Procedure for, 27. Losses on distinct occasions, 27. EflEect of, where both ships to blame for a coUision, 27, 704. Extension to railway companies, 28, 29, 108. Contract with foreign ship, law of the flag, 205. LOADING. [&eCAEOo; Poet oe Loabino.] Expenses of, 68, 250, 251. Customary methods of, 182, 265—267. Series of voyages, failure to load as agreed, 235. Notice of readiness for, 249, 621. "As customary," 250, 614, 619a. Manner of loading, alongside, 250, 608. Cargo how delivered to shipowner, 251. Agreement to bring cargo alongside by ship's boats, " at ship's risk," 261a. Cargo to be in readiness, 252, 257, 617. Cargo from agreed place, known sources of delay, 254. Readiness " in turn," 254a, 620. Loading not excused by impossibility, 255. Specific cargoes, 256. Exceptions protecting charterer, 257 — 258. Proof of civil commotion, 258. Causes beyond control, 268a. Colliery guarantees, 268c. When loading interrupted, charterer must complete, 259. Charterer discharged when loading once completed, 260. Whole carrying space to be loaded, 261. Not decks, nor ballast, 262. Description of cargoes, "merchandise," "produce," 263, 264. Broken stowage ; usage, 265. Customary modes of preparing goods for, 266. Shipper's right to have goods landed, after, 268, 269. Ship should wait for cargo the whole agreed time, 270, 720. Ship must take a full cargo, 271. Obligation to be ready with applianoes for, 618, 619. Where controlled by port authority, 619a. " In regular turn," 620. Damages for not taking cargo, 723. LONDON, Victoria Docks, custom as to delivering, 461, 468. LONDON CLAUSE, Discharging, 466, 479. LONDON CONFERENCE, Rules of AfEreightment, 1893, App. A. MACHINERY, Defects in, 79. IThe refermces are to the Sections.] INDEX. 907 " MANAGEMENT," 101, 103e. MANAGING OWNER, Appalntment and authority, 36. Effect of registration, 37. Can generally give discharge for freight, 590. MARITIME LIEN, Eor bottomry claims, competition of Hens, 312, 317, 318. Per salvage, 324. On freight, 601. Nature of, 698, 700. Only enforceable by process, 698. Not generally conferred by statutes giving a remedy in rem, 699. Admiralty Court Act, 1840, a. 6 ; necessaries to foreign ship; no lien, 699 Admiralty Court Act, 1861, o. 6 ; County Courts Acts, 699. Distinction from remedy in rem, 700. For damage to cargo by collision, 706. MARKS ON GOODS, Quality marks in biU of lading do not bind shipowners, 69a. Express clause as to quality marts, 69a. Destination mark in bill of lading, shipowner estopped, 69a. Incorrect, but immaterial marks, 70, 71. Delivery of different portions of goods similarly marked, 469. Obliteration of, mixture of goods, consignees tenants in common, 505. MARSHALLING, Bottomry claims, 318. MASTER, Duty when ship in charge of a pUot, 32. Authority to contract, 42, 43. Law of the flag, 42, 204. Mate succeeds, on death of, 42. No authority to alter charter party, 44, Authority at foreign port where charter party broken, 44, 720. Authority to settle claim for detention, 44. Effect of change of ownership, 46, 575. Liability on contracts, 47. Liability for torts, 48, 707. Working vessel for joint benefit of himself and owner, 49. Goods delivered on board under private arrangements with, 68. No authority to sign bUl of lading for goods not shipped, 69. Nor to bind owners by description of quality, 69a. Nor to misdate the bill of lading, 69a. Statement of quantity in bill of lading conclusive against master siguipg it, 70. Unless caused by fraud of shipper, &c., 70. Incompetent, owner's responsibility, 102. Negligence of, when part owner, 102. Charter to master, 116. Chartered ship, for whom does master sign bill of lading f 153 — 156. Authority as to signing bills of lading under charter, 161. Has he authority to give bill of lading not preserving charter party terms ? 161, 673, 674. "Clean bills of lading," 161a. Indemnity by charterer, 161b. Authority of, determined by law of flag, 204, 211. Custom to ship goods on own account, 262. Must be competent stevedore, 272. Duty as to stowage, 274, 276. No authority to stow cargo illegally, 282. Misconduct of, outside his duty, 287, 707. Duty to check deterioration of cargo after damage, 293. To save goods of high value, 293. [rSe ref fences are to the Sections.'] 908 INDEX. MASTER— c, Eepresents cargo owner in case of need, 294, 305, 661. Liability of shipowner for improper sale by, 294, 300. Power to incur expenses in preserving cargo, 295. Power to sell perishing goods, 297. Duty to salve, 298. Duty to communicate, 299, 306. Improper sale by, does not pass property, 301. Unless valid by the law of the place, 301. Duty at port of refuge, 302. Duty to tranship, 304. After voyage abandoned by shipowner, 305, 306. Power to hypothecate or sell cargo for repairs, &o., 310 — 316. Duty to communicate first if possible, 316. Competition of wages with bottomry bond, 317. Salvage agreement by master of salving vessel binds crew, 348. Power of master to bind owners of salved ship and cargo by salvage agree- ment, 349, 396. Notice to stop cargo in transit must generally reach master, 530. Quare, whether shipowner must forward notice to him, 630. Liable for delivering contrary to valid notice to stop, 531. May not withhold goods from vendor, 531. Authority to take goods "free on owner's account," efEect of change of ownership before shipment, 575. Has authority to take bill for freight, 585. Eights to primage, how defeated, 587. Authority to collect freight, 689, 590. No right to possession of freight as against owner, 589. Power to sue for freight on contracts made with himself, 589. Defendant could not set off debt due from shipowner, 589. Right to collect freight, 590. Power to sue for demurrage expressly reserved in bill of lading, 643. MASTER PORTER (LIVERPOOL), EfEect of delivery to, 468. MATE'S RECEIPT, How given, 50. Effect of possession of, 60. Custom as to, 60, 185. Statement of (Quantity in, 69. MATS, Duty of shipowner to provide, for dunnage, 273. MEANINGS OF WORDS, Evidence as to technical words, 169. Evidence of customary meanings, 169. Geographical terms, 169. MEASUREMENT OP GOODS, 576—582. \_See Fbeiqht.] Expense of measuring, 582. Grain trade, 582. "MERCHANDISE," Meaning, 263, 264. "MERCHANT'S RISK," Does not relate to general average contributions, 80, 103, 380. Shipowner must perform his contract, 103. MISDESCRIPTION OF GOODS. [&e Bili, of Labinq ; Caeqo.] MONTH, Usually means calendar month, 571a. Calendar month, how computed, 671a. " MORTALITY," 103. [The references are to thi Sections.] INDEX. 909 MORTG-AGEE OF SHIP, Mortgagee of shares not in possession cannot bring action of restraint, 38. Cannot generally interfere witli voyage, 39, 40. Not deemed owner except as to security, 40. Not personally liable on charter party, 40. Charter party by mortgagor in possession should be consistent with the security, 40, 41. Position of second mortgagee, 41a, 597. Barratry against, 100. Cannot claim more freight than reserved by bill of lading, 575, 592. Shipowner in possession may carry "freight free," 575, 592. Mortgagee of shares takes freight subject to deduction of expenses, 590. Only acquires right to freight on taking possession, 592. Succeeds to lien for freight accrued, 592. Charterer cannot deduct advances outside charter party, as against, 593. Eight of second mortgagee to freight, 594, 697. What is sufficient possession to entitle to freight ? 595. Entitled to freight on taking possession as against assignee of freight, 596. Unless assignment prior to mortgage, and notice given, 596. NATIONALITY, Eepresentation of, when material, 135, 138. Effect of, on contracts, 204—210. on master's authority, 204, 211. " NAVIGATION, " Meaning of " improper navigation," 26, 101. Ship in discharging dock, 91. Landing goods in boats, 92. .Negligent navigation not barratry, 99. Stowage not an act of, 101. Bnder Harter Act, 103d. NECESSARIES, Bottomry for, 314. Unsecured claims for, priority, 317. "NECESSITY," Meaning of, 297. "NEGLECT OR DEFAULT," Does not cover theft, 94. NEGLIGENCE, Common law exceptions do not excuse, 10, 11, 13, 16. Nor do express exceptions, unless it is clearly stated, 77. Otherwise as to negligence of servants not engaged in performing the contract, 77. Onus of proof, 78. Effect on operation of excepted peril, 87, 95. Effect of ignorance, 96, 97. . Exception of negligence of servants, 101. In " navigating, 101. Effect on warranty of seaworthiness, 79. Does not relate to servants of shipowner on another ship, 101, 705. Validity abroad, 101. Shipowner's personal negligence, 77, 102. Negligence of master part owner, 102. Exception generally relates to acts after shipment, 102. Effect on shipowner's right to claim salvage, 342. Effect on his right to general average, 366, 373b, 373c. Effect of Harter Act, 103a, 103f. Railway company cannot generally except, 108, 110. NEGOTIABLE INSTRUMENTS, 194. Negotiability of biU of lading, 487—491. IThe references are to the Sections.'] 910 INDEX. NEUTEAIiITT, Effect of, upon contracts, 244 — 246. OBLITERATION OP MAEKS, 505. ONUS OP PROOF, As to bill of lading statements of quantity, 69. Condition of goods, " quality unknown," 73. Tliat a loss is within an exception, 78. As to absence of notice of dangerous character of goods, 279. OPTION, Charterer's option as to discharging place, 460. Delay due to charterer's exercise of option, 624b, 628. " OR OTHERWISE," 101, 102b. " OTHER CONDITIONS AS PER CHARTER PARTY," 160, 637, 669. OVERSIDE, Custom in London as to delivery, 466. Presentation of overside order, subsequent notice to stop, 614. " OWNER'S RISK." {See Meeohabt'b Risk.] PACKAGES, Loss from defective, 14. Duty to remedy defects in, 14. Usages as to modes of packing, 182. Dangerous goods, 278. PAPERS, Shipowner to provide, for safe prosecution of voyage, 284. Production of, for calculation of freight, 680. PAHT-DATS, 631. PART OWNERS IN SHIP, Tenants in common ; not generally partners, 34, 590. Power to settle claims, 34. Bound by contracts of managing owner, 36. Liability to be sued, 35. Joinder of, 35. Effect of judgment against one, 35. Right to sue, 35. Rights of majority, 38. Power of minority to restrain ship, 38. Barratry against, 100. Jointly entitled to freight, 590. Position of mortgagee or assignee of freight, from a part owner, 590, 596. Remedy in rem against ship where only one part owner liable, 696. PAUT PERFORMANCE, Effect upon conditions of contract, 177. Illegality supervening upon, 237 — 239. Rights when completion prevented, 240, 241. PASSAGE COURT, LIVERPOOL, Jurisdiction in rem, 692. ITJie references are to the Sections.^ INDEX. 911 PASSENGERS, liability of carrier by land, 17. DistresBed seamen not, 30. Harter Act not applicable to, 103f . Forms of contract prescribed. 111. Right of charterer to ship, 262. "Freight " does not relate to, 264. Claim for salvage by, 336. PASSENGER'S LUGGAGE, Carrier's liability for, 6, 111. Harter Act not applicable, 103f. Conditions on passage ticket, 111. M. S. Act, 1894.. 111. Salvage contribution by, 350. General contribution by, and to, 420. Not "goods " -within County Courts Admiralty Jur. Act, 1869 . , 695. No damages recoverable for merchandise fraudulently carried as, 729. PENALTY CLAUSES, In charter parties, 659, 722. PERILS OF THE SEA. [See Danaeeb of the Seas, &c.] PERISHABLE GOODS, Carrier not liable for ordinary -wasting or decay, 12. Otherwise where loss caused by him, 13. Effect of absence of notice of nature, 13. Law of flag, German la-w, 211. Master's authority to seU, in case of need, 297 — 301. Transhipment of, 305, 309. No freight payable on perishing goods sold at port of refuge, 547, 561. Damages for deterioration by delay, 725. Damages for wrongful sale of, 727. PILOT, Ship may be unsea-worthy -without, 18, 284. Responsibility -where pilotage compulsory, 30 — 32, 707. Foreign ports, 31. Duties of, 32.. Duty to employ, 284. Claims for pilotage, paid in priority to bottomry bond, 317. Claims for salvage by, 337, 338. Liability of cargo to contribute to pilotage, 341. No Hen for pilotage payable by charterer, 658. PIRATES, Meaning, 11, 94. Included in " dangers of the sea," 86. Exception of, 94. Ransom paid to, general average, 392. PLEDGE, Rights and liabilities of pledgee, 66. Power of master to pledge ship, 312. By deposit of bm of lading, 498, 499. Effect of Factors Act, 504. "POLITICAL DISTURBANCES," 262. PORT, Meaning of, 448. Extent of, 448, 567. "Safe loading place," 449. Admiralty Court Act, 1861 . . 687. PORT-CHARGES, Liability of charterer, time charter. App. B. Usually payable by shipowner, 284. When general average, 404. No lien for, -where payable by charterer, 658. IThe references are to the Bectiona.'] 912 INDEX, POET-HOLE, Damage to cargo by insecure, 18, 103d. PORT OF CALL, Orders at, for port of discharge, to Ibe given in reasonable time, 447. Where no orders given at, 447. Charterer's liability for not giving orders at ; cesser clause, 650. Charterer may be liable as bill of lading holder, 651. Jurisdiction of Admiralty Court, ship at English port of call, 687. PORT OF DISCHARGE, How determined, 446 et seq. Orders for port of, to be given in reasonable time, 447. Where orders not given, 447. Meaning of "port," 448. Port must be physically safe for the loaded ship, 449. She must generally be able to lie afloat, 449. Shipowner must generally wait for favourable tide, 450. Orders to a dock "if sufficient water," 450. Port must be politically safe, 451. Not unsafe because war will probably be declared, 451. Effect of accepting orders, and signing bills of lading for unsafe port, 452. " So near thereto," &c., 453 et seq. Must owner lighten, if feasible, in order to reach ? 457. Place for discharging, selection, 459, 460. Mode of discharge, 461. Notice to consignees of arrival at, not requisite, 465, 621. POET OF LOADING, Voyage to, is part of the ' ' voyage " in the charter party, 148. Effect of delay in reaching, 175. Customs of, 195, 198, 250, 265—267. Duty to proceed to, with diHgenoe, 218. Where time fixed for sailing to, 219. arrival, 221. Meaning of "ready to load," 221. Duty to proceed to, notwithstanding charterer's option to cancel, 222. Delay not excused by a limit of time being fixed, 223. Port to be named before sailing, and without delay, 224. Orders to more than one port, 224. Expenses of moving from one place to another, 224, 249 . " So near thereto as she can safely get," 225, 453, 454, 625, 629. Relates to leaving as well as entering port, 226. Does shipowner absolutely engage to bring ship to ? 227. Arrival prevented by government of place, 228. Joint inability to load, 229. Loading not generally excused by delay in proceeding, 230. Unless adventure frustrated, 231, 232. Blockade of port of discharge, 233, 238. Refusal of charterer to load at agreed place, 235. Loading excused if it becomes illegal — war, 237 . Several usual places of loading — charterer's option, 249. Notice of readiness to load to be given, 249, 621. Duty to procure cargo at, 252, 617. Destruction of cargo at, 259, 662. How long must ship wait for cargo ? 270, 720. Meaning of port, 448—451. " Safe loading place," 449. Must be physically safe, 449, 450. Must be politically safe, 451. PORT OF REFUGE. [_See Eottomey ; Teanshipment ; Geiteeal Aveeage.] Master's authority for cargo owner at, 294 et seq. Expenses for preservation of cargo at, 295, 296. Sale of perishing goods at, 297 — 301. Obligation to repair at, 302, 303. Abandonment of voyage at, 307, 309. {The references are to the Sections.} INDEX. 913 PORT OP REFUGE— co« 30 STEVENS AND SONS, LIMTTED, TRADE MARKS. — Sebastian on the Law of Trade Marks and their Registration, and matters connected therewith, including a chapter on Good-will ; the Patents, Designs and Trade Marks Acts, 1883-8, and the Trade Marks Kules and Instructions thereunder ; with Forms and Precedents; the Merchandize Marks Acts, 1887-94, and other Statutory Enactments; the United States Statutes, 1870-82, and the Rules and Forms thereunder ; and the Treaty with the United States, 1877. By Lewis Botd Sebastian, Esq., Barrister-at-Law. Fourth Edition. By the Author and Haeet Baied Hemminq, Esq., Barrister-at-Law. Royal 8vo. 1899. 1?. 10». *[ Stands alone as an authority upon the law of trade-marks and their regis- tration," — Law Journal, " It is rarely we come across a lawbook which embodies the results of years of careful investigation and practical experience in a branch of law, or that can be unhesitatingly appealed to as a st^dard authority. This is what can be said of Mr. Sebastian's hook."— Solicitors* Journal. Sebastian's Digest of Cases of Trade Mark, Trade Name, Trade Secret, Goodwill, &c., decided in the Courts of the United Kingdom, India, the Colonies, and the United States of America. By Lewis Botd Sebastiak, Esq., Barrister-at-Law. Bvo. 1879. 11. U. " Will be of very great value to all practitioners who have to advise on matters connected with trade marks." — Solicitors' Journal. TRAMWAYS.— Sutton's Tramway Acts of the United Kingdom! with Notes on the Law and Practice, an Introduction, including the Proceedings before the Committees, Decisions of the Referees with respect to Locus Standi, and a Summary of the Priuoiplos of Tramway Rating, and an Appendix containing the Standing Orders of Par- liament. Rules of the Board of Trade relating to Tramways, &c. Second Edition. By Henet Sutton, assisted by Robeet A. Ben- nett, Barristers-at-Law. Demy 8to. 1883. 15«. TRUSTS AND TRUSTEES.— Ellis' Trustee Act, 1893, including ii Guide for Trustees to Investments. By Aethtte Lee Ems, Esq., Barrister-at-Law. Fifth Edit. Roy. 12mo. 1894. 6*. " The entire Act is annotated, 'and the way in which this is done is satis- factory." — Law Journal. *' Mr. Arthur Lee Ellis gives many valuable hints to trustees, not only with regard to tiie interpretation of the measure, but also with regard to inyest- ments." Godefroi's Law Relating to Trusts and Trustees.— Second Edit. By Henet Godefeoi, of Lincoln's Inn, Esq., Barrister-at-Law. Royal 8vo. 1891. 11. I2s. '* The second edition of this work which lies before us is a model of what a legal text-book ou^ht to be. It is clear in style and clear in axrangemeut." — Law Times. VENDORS AND PURCHASERS Dart's Vendors and Pur- chasers, — A Treatise on the Law and Practice relating to Vendors and Purchasers of Real Estate. By the late J. Henet Daet, Esq., one of the Six Conveyancing Counsel of the High Court of Justice, Chancery Division. Sixth Edition. By Wimjam Baebee, Esq., Q.C., RicHAED BuBDON Haldane, and William Robbbt Sheldon, Esqrs., Barristers-at-Law. 2 vols. Royal 8vo. 1888. 3/. 15s. "The extensive changes and numerous improvements which have been intro- duced are the result of assiduous labour, combined with critical acumen, sound knowledge, and practical experience Eor the copious and excellent index we have nothing but praise. We have been informed that an authority of the highest eminence has pronounced it to be the best in any existmg law book, and we humbly concur in iiiat opinion." — Law Quarterly Review. Turner's Dutiesof Solicitor to Client as to Sales, Purchases, and Mortgages of Land,— Second Edition. By "W. L. Haoon, Esq., Barrister-at-Law. Demy8vo. 1893. 10s. 6rf. " The most skilled in practical conveyancing would gain many useful hints from a perusal of the book, and we recommend it in all confidence." — Law Notes. %* All standard Law Works are kept in Stock, in Imo calf and other bindings.'' 119 & 120, CHANCER Y LANE, LONDON, W.O. 31 VENDORS AND PURCHASERS— continued. Webster's Law Relating to Particulars and Conditions of Sale on a Sale of Land,— -With Appendix of Forma. Second Edition. By ■WrmAK Eeedeeiok Webstbe, Esq., Barrister-at-Law. Eoyal 8vo. 1896. 25»; " This is the Second Edition of a well arraneed and useful book; and the use- fulness will not be impaired by the fact that the authority for each proposition and the reference to such authority are dted in the text itself instead of being relegated to a footnote." — Law JoumaU Webster's Conditions of Sale under the Land Transfer Acts, 1875 and 1897. Being a Supplement to aboye. Eoyal 8vo. 1899. 2fet 2s. WAR, DECLARATION OF,— Owen's Declaration of War,— A Survey of the Position of Belligerents and Neutrals, with relative considerations of Shipping and Marine Insurance during War. By DoxroLAS OwBN, Esq., Barrister-at-Law. Demy 8vo. 1889. 21s. Owen's Maritime Warfare and Merchant Shipping.— A Summary of the Rights of Capture at Sea. By DouaiAS Owen, Esq., Bar- rister-at-Law. Demy 8vo. 1898. iv«< 2». WILLS. — Theobald's Concise Treatise on the Law of Wills, — Fourth Edition. By H. S. Theobat.t), Esq., Bairister-at-Law. Royal 8vo. 1895. 30». " Comprehensive though easy to use, and we advise all conveyancers to get a copy of it without loss of time." — Lam Journal. ** Of great ability and value. It bears on every page traces of care and sound judgment." — Solicitors' Journal, *' The work is, in our opinion, an excellent one, and of very great value, not only as a work of reference, but also for those who can afford to give special time to the study of the subject with which it deals." — Law Student's Journal. Weaver's Precedents of Wills, — ^A Collection of Concise Freoedenta of WiUs, with Introduction, Notea, and an Appendix of Statutes. By CHAEuaa Wbatee, B.A. Post 8to. 1882. 6». Wl N Dl NG U P. — Palmer's Company Precedents. — For use in rela- tion to Companies, subject to the Companies Acts, 1862 — 1890. Part II. WiNDDra-XJp FoKMS AHi) Peaotice. Arranged as follows: — Compulsory Winding-Up, Voluntary Winding-XJp, Winding- Up under Supervision, Arrangements and Compromises, with copious Notea, and an Appendix of Acts and Rvdes. Eighth Edition. By Feahois Bbattfoet Paimee, assisted by Feakk Evans, Eaqrs., Barristers-at-Law. Royal 8to. 1900. 32s. " Palmer's * Company Precedents * is the book par excellence for practitioners. It is needless to recommend lV£r. Palmer's book to the profession, for it is already known and appreciated. We advise those who have any doubts to con- sult it, and they will be in agreement with us." — Law Journal. " Simply invaluable, not only to company lawyers, but to everybody con- nected with companies." — BKnanddl News, WORKMEN'S COMPENSATION ACT.— Fi