John Habergham, Myton Law, Hull U.K.
This matter reached our highest appellate court, The Supreme Court.
I discussed the Court of Appeal decision in July 2023 – see the previous article on this website for the background.
In short, the Supreme Court upheld the core decision of the Court of Appeal that the one-year limitation period under the Hague Visby Rules applies to misdelivery by the carrier which takes place after after discharge, but disagreed with the Court Appeal decision that this only applied to the Hague Visby Rules, not the Hague Rules. It applies to both sets of rules.
Why?
See para 108 which neatly explains the thinking:
“This conclusion is supported, in particular, by the wide wording of article III, rule 6 and its application to breaches of obligation arising otherwise than under the Rules; the immediate context of article III, rule 6 which concerns matters occurring after discharge and focuses on the time and importance of delivery; the wider context of the Hague Rules containing rules which apply outside the period of responsibility; the purpose of the time bar of ensuring finality and enabling accounts and books to be closed; the English authorities on the width of the wording, the purpose of the time bar and on its application outside the period of responsibility; and the fact that if it is intended to apply to misdelivery, as the wording and the English authorities make clear, one would reasonably expect it to apply to the paradigm case of misdelivery – ie after discharge.”
The Supreme Court also indicated that the time bar may apply to breaches of duty occurring before loading – although it must be the case that the guillotine date is the date of delivery or when the goods should have been delivered.”