Issues of Authority.

Welcome to this edition of the Claims Review. The claims examples in this edition are all loosely linked by the theme of authority and we hope that they will prove informative and help reduce the risk of claims against your business. In many cases this is simply the need to stay within the instructions given. However, there are occasions when the issue is whether any authority at all was given. Ship brokers should be aware of the potential liability for breach of warranty of authority and the circumstances described in the claims example “No Principals”. The claim “Wrong Terms” highlights the attempts of some shippers to impose their own terms and conditions and illustrates that agents dealing with bookings should be on their guard. Please circulate the Claims Review widely within your firm and should you require further copies these are available on the Club’s website or can be sent to you by email or fax.

Claims Review 12

31/08/2004
A ship broker received an approach from a Chinese broker regarding the possibility of fixing ships to carry steel cargoes on behalf of a well-known local steel mill. The ship brokers approached the representatives of a Greek...

01/02/2013
In many trade contracts, where the specification of the product is important, buyers and sellers will often agree that the quality will be determined by an independent expert and that the expert's findings shall be "final...

31/08/2004
A forwarder included "all shipments subject to the CMR Convention” in a written booking with a ship agent for line haulage. The agent failed to spot this note and appointed a haulier who contracted under his normal road...

31/08/2004
The principal of a ship manager had taken delivery of a number of new buildings. Some of the ships were subject to a “sale and charter back” agreement. The principal had indicated he would consider an offer for any of the ships...

31/08/2004
An English port agent was nominated by a charterer with whom they did significant amounts of business. The agent was instructed by the charterer to release a steel cargo without production of the original bill of lading. The...

01/03/2004
A surveying company recruited a senior staff member from a rival who brought a major client to his new firm. The surveyor used an existing reporting format. Shortly after the surveyor started his new job his employers received a...

31/08/2004
A Turkish liner agent was requested by the receiver of 12 containers of frozen meat shipped from Denmark to deliver them without original bills of lading. The carrier's bills of lading were consigned "to order" of the...

31/08/2004
A port agent in the Middle East appointed stevedores on behalf of the shipowner. It was only when he sent the invoice to the shipowner that the agent discovered that the cargo had been booked on a “free out” basis (i.e. the...

31/08/2004
A P&I Club correspondent was requested to attend on board a ship to survey a cargo of 2,000 metrictonnes of bulk fertilizer, which had been contaminated by residues from a previous cargo. The correspondent, having...

31/08/2004
Scandinavian ship managers were appointed as technical managers of a tanker owned by a K/S limited partnership. The management agreement was originally between the ship managers and the shipowning company but was subsequently...

31/08/2004
While berthing at a UK port, a Turkish owned ship struck the jetty. The agents passed the port’s repair bill of GBP37,850 to the owners. Nothing further was heard from the owners for a period of months. The port repeatedly...

31/08/2004
A commercial manager in Germany was instructed by the owners of a ship under management not to fix cargo for this ship for voyages up the River Rhone. This followed previous bad experience of a sister ship having been delayed in...

31/08/2004
A German agent for Chinese shipping company received an enquiry regarding the shipment of steel rails in three consignments from Hamburg to Huangpu. The agent’s principal quoted a price of US$65 per tonne and this was passed to...

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