Can a B/L holder, as receiver of damaged goods claim against shipowners (the carrier), even though the voyage charterers (as CIF sellers) may have already partially compensated the receivers? and if YES then is the partial compensation to be taken into account? In short – “do courts have to take into account settlement made under the sale contract for a claim under B/L?”
This interesting bit of question came up in The Baltic Strait [2018]. Receiver assigned its rights of recovery to the seller/charterer and the cargo insurers. The damage was estimated at $4.5m. Receiver was claiming for balance loss of $2m (being $4.5m minus $2.5m, which they had received as compensation from sellers) and seller’s loss of $2.5m.
It was held that under common law, receivers were entitled to $4.5m, irrespective of the recovery made from their CIF sellers. Reference was made to a century old case (R&W Paul) and the court saw no reason to depart from that.
The court then indulged in a discussion on COGSA, as to what the situation would have been under the act. Can receivers, as B/L holders, claim on behalf of charterers against the carrier? The B/L is nothing more than a receipt in the hands of charterer & therefore charterer would have to bring a claim against owners under the C/P.
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