General Principles

Conventions and national implementing rules

Scotland

Landcatch Ltd. v. International Oil Pollution Compensation Fund.–Landcatch Ltd. v. Braer Corporation and Others.–The “Braer” (Outer House of the Court of Session, 11 November 1997) ([1998] 2 Lloyd’s Rep. 552 and 1999 Dir. Mar. 931)

          On January 5, 1993 the tanker Braer grounded off Shetland and 84.700 tons of crude oil and 1600 tons of bulk fuel oil escaped or were discharged from the vessel. Landcatch Ltd. brought an action against the Braer Corporation, the owners of the Braer and a separate action against the International Oil Pollution Compensation Fund. In the action against the Fund the pursuers claimed that the Fund was liable in terms of s. 4 of the Merchant Shipping Act 1974 which gave effect to the Fund Convention. Different views were expressed in respect of the interpretation of the statutory provisions and, in particular, as to whether the words “shall be liable” in s. 1 of the Merchant Shipping (Oil Pollution) Act 1971 and in s. 4 of the Merchant Shipping Act 1974 displaced the limitations upon the recoverability of economic loss in the general law.

          Held, by the Outer House of the Court of Session, that:

          (1) The Court should start from the assumption that Parliament has accurately implemented the treaty obligations. It is only if the statutory provisions are obscure or ambiguous that there is a need to resort to the Conventions themselves.

Conventions self-executing and non self-executing

Italy

Corte di Cassazione 6 February 1999, No. 1062, Raffaele Iacomino v. Tirrenia di Navigazione S.p.A. (2001 Dir. Mar. 694)

Raffaele Iacomino sued before the Magistrate of Naples Tirrenia di Navigazione S.p.A. stating that he had been employed by Tirrenia on a date prior to 1982 and that, as from 29 July 1982, when Law 10 April 1981, no. 159 by which ratification by Italy of the International Convention no. 146 adopted on 29 October 1976 by the General Conference of the International Labour Organization had been authorized, he had not been granted, contrary to the provisions of art. 6 of the Convention, the right to enjoy 30 days paid holidays per year of service. The claimant therefore asked that Tirrenia be found liable to pay to him the aforesaid holiday periods. By judgment of 23 December 1993 the Magistrate granted the application. The decision was reversed by the Tribunal of Naples and the claimant applied to the Court of Cassation.

          Held, by the Corte di Cassazione, that:

          (1) The law by which the ratification and execution of an international convention is authorized has the effect of making the provisions of such convention, when ratified, automatically applicable in Italy, when the convention is self-executing, while if the convention is not self-executing they have a function similar to that of norms of principle.

ILO Convention No. 146 of 1976

Italy

Corte di Cassazione 6 February 1999, No. 1062, Raffaele Iacomino v. Tirrenia di Navigazione S.p.A. (2001 Dir. Mar. 694)*
(See the Summary of facts in the section "Conventions self-executing and not self-executing")

          Held, by the Corte di Cassazione, that:

          (1) ILO Convention No. 146 is not self-executing.

Rules of interpretation

Australia

Great China Metal Industries Co. Ltd. v. Malaysian International Shipping Corp. – The “Bunga Seroja” (High Court, 22 October 1998, 1999 AMC 427):

          A consignment of 40 cases of aluminium can body in coils loaded in Sydney on board the m/v Bunga Seroja was partly damaged during the passage from Sydney to Keelung, Taiwan on account of heavy weather. Great China Metal Industries Co. Ltd., to which the property in the goods had passed, claimed damages from the carrier, Malaysian International Shipping Corp. but the claim was rejected by the trial Judge whose decision was affirmed by the New South Wales Court of Appeal. The claimant appealed to the High Court of Australia contending that the exception of perils of the sea did not apply because damage to the cargo resulted from sea weather conditions which could reasonably be foreseen and guarded against. The question to which the submission primarily was directed was the meaning and effect of art. IV r. 2(c) of the Hague Rules.

          Held, by the High Court of Australia, that:

          (1) The interpretation of uniform rules must take into consideration their international origin and must be conducted in such a way as to be consistent with that generally adopted in other countries.

El Greco (Australia) Pty Ltd. v. Mediterranean Shipping Company S.A., Federal Court of Australia, Queensland District Registry, 10 August 2004 (2004 AMC 2886)

          A cargo of posters and prints was shipped in one twenty foot general purpose container on board the MSC Melbourne at Port Botany, Sydney. The bill of lading in the column headed "Marks and Numbers" stated: "Container No. IEAU 2626980" and in the column headed "Description of Goods" so stated: "X20ft FCL/FCL general purpose container said to contain 200945 pieces - posters and prints".
When packed into the container the goods had been made up into about 2.000 packages.
          The goods arrived at their destination in Greece, after transhipment in Antwerp on board the Aquitania, in damaged conditions and the owners of the goods, El Greco (Australia) Pty Ltd., brought an action against the carrier, Mediterranean Shipping Co. S.A., in the Federal Court of Australia. By a decision of a single judge of the Federal Court the liability of the carrier was assessed on the basis of the value of the goods at destination, that was found to have been $ 63,750. The claimants appealed and contended that judgment should have been given in the sum of $ 883,390. The carrier cross-appealed stating that pursuant to article 4.5(c) of the Carriage of Goods by Sea Act 1991, identical to article 4.5(c) of the Hague-Visby Rules, the limit should be applied with reference to the container.

Held, by the Federal Court, that:

          [1] Subject to any contrary intention revealed by the domestic statute making an international instrument part of domestic law, the meaning of, and obligations within, an international instrument that is made part of domestic law is to be ascertained by giving primacy to the text of the international instrument, but also by considering the context, objects and purposes of the instrument.

          [2] The broad principles of general acceptation on the basis of which an international instrument are those enshrined in article 31 and 32 of the Vienna Convention on the Law of Treaties of 1969 and therefore regard must be given to the preparatory work of such international instrument.

          [3] To the extent that there exist persuasive and considered authorities in jurisdictions administering cognate laws based on internationally accepted conventions, it is appropriate to give weight to such decisions in order to strive for international uniformity.

England

R. J. Tilbury & Sons (Devon) Ltd. v. Alegrete Shipping Co. Inc., Assuranceforeningen Skuld, International Oil Pollution Compensation Fund 1971 and Others - The "Sea Empress" (C.A.) [2003] 1 Lloyd's Rep. 327.

          The Sea Empress grounded at St Ann's Head, Milford Haven on 15th February 1996, leading to the escape of some 72,000 tonnes of crude oil into the sea. There followed a fishing ban in an area of sea around Wales extending from St David's Head in the west to the Gower Peninsula in the east.
          At the material time R. J. Tilbury & Sons (Devon) Ltd. (Tilbury) had a business which included the processing of whelks in Devon, at Exmouth which is some 200 miles by road from Milford Haven. They had a long term contract for the supply of Welsh whelks to a Korean buyer, Yusung Mulsan Co. Ltd. and had contracted with 8 fishing vessels (based in the South Wales area) to take such whelks as it would catch for the 6 month period ending 31st July 1996. The ban brought an immediate end to the catching of Welsh whelks, and destroyed Tilbury's business with its Korean buyers.
          Tilbury commenced proceedings against the Owners of the Sea Empress, Alegrete Shipping Co. Inc., its P&I Club, Assuranceforeningen Skuld, and the International Oil Pollution Compensation Fund 1971 at the Admiralty Court claiming a loss of gross profits totalling £746,632, less avoided expenses of £103,075 which it accepted would have been incurred but for the contamination of the fisheries.
          By judgment dated 29th May 2002 given on the trial of a preliminary issue, David Steel J determined against the claimants that their claim for loss of profits did not constitute "damage caused … by contamination resulting from the discharge or escape of oil from the Sea Empress within the meaning of section 153 of Schedule 4 to the Merchant Shipping Act 1995". The claimants appealed.

Held, by the Court of Appeal, that:

(1) Although the terms of CLC 1969 and of the Fund Convention 1971 have not been enacted in the United Kingdom, nevertheless in construing the legislation passed to give effect to the United Kingdom's international obligations under these Conventions it should be borne in mind that it is concerned to implement international conventions and, therefore, it should be given a liberal and broad rather than a restricted construction, and so construed, if reasonably possible, to conform to the language of the conventions.

New Zealand

Tasman Orient Line CV v. Alliance Group Limited, Comalco New Zealand Limited and Others - The "Tasman Pioneer" (The High Court of New Zealand, Auckland Registry, [2003] 2 Lloyd's Rep. 713; [2004] 1 NZLR 650

          At about 0255 hours on 3 May 2001 (local time) the ship Tasman Pioneer grounded in the Inland Sea of Japan. Salvors pulled her free and beached her. The cargo was unloaded, but much was damaged and as a result, claims totalling over $NZ21m have been commenced. The vessel was on a voyage for the account of Tasman Orient (Cyprus) Ltd.
          Tasman Orient Line sought a decree pursuant to the Maritime Transport Act 1994 Part VII limiting its liability to the claimants and fixing the amount.
          In the judgment of the Japan Maritime Safety Authority the cause of the casualty was described as follows:
          "The grounding in this case was caused by inappropriate selection of the sailing course when sailing towards east of Okinoshima under the stormy weather at night. The ship was sailing westward off the south coast of Shikoku. The radar No. 2 was turned off because of failure and the radar No. 1 in operation despite unstable condition. With the intention to save the sailing distance, the ship was heading towards the east end of the narrow water route, where no navigational aid such as a light beacon was available, in between Biroushima Island and Murobae in the north of Okinoshima. The occasional shower reduced the visibility. Instead of taking the originally planned course in broad waters on the south side of Okinoshima, the ship turned to the narrow water route and proceeded toward northwest, during which time the echo of Biroushima Island on the radar screen was lost by the influence of shower, or some other reason. Without knowing the relative position of the ship against Biroushima Island, the ship swung hard port toward south of Okinoshima, then made hard starboard, headed to the shallows very close to the north of Biroushima Island and ran aground".

Held, by the High Court of New Zealand, Auckland Registry, that:

[1] The interpretation of s85(2) of the New Zealand Maritime Transport Act, 1994 on conduct barring limitation is assisted by authorities under article 4 of the LLMC 1989, which is similarly worded and of the corresponding provisions of other maritime conventions.

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