Question

HK Shipper loaded 10 tons of construction steel bars on board of the vessel in Hong Kong. The steel bars will send to the U.S. The BL wrote “in apparent good order and condition, 10 tons of construction steel bars”

On July 2017, the U.S. Consignee discovered all the steel bars were rusted during the ocean transportation, and he immediately told the Ocean Carrier about the damaged condition. He then transported the steel bars to the warehouse. Then the U.S. consignee sent a written notice about the loss to the Ocean Carrier within 3 days.

The U.S. consignee filed the lawsuit in the U.S. on May 2018, and he eventually lost the case in the U.S.

On December 2018, U.S. Consignee filed a lawsuit in Hong Kong.

Question 9 (5 marks)

Ocean Carrier asserted in court that all the steel bars were rusted when received. Comment whether this is a strong argument.

Answer 1

Yes this is a strong argument as the BL wrote"in apparent good order and condition,10 tons of construction steel bars".But when the consignment reached the destination it was found that steel bars were rusted.This is a sheer breach of contract as the consignee reported the matter within the stipulated time frame he must be compensated for the same.