Gk No 110S81 September 21 1994

1LLLNG1AN 8kC1nLkS SCNS INC (LA SULk1L CIGAk CIGAkL11L) peLlLloner

vs
1nL CCUk1 CI ALALS kAWASAkI kISnLN kAISnA L1D and SMI1n 8LLL CC INC respondenLs
IAC1S
O ffsfl lshen flshf (lne) forelgn shlpplng compfny dolng buslness ln Lhe hllpplnes
O Ls fgenL ls SmlLh 8e fnd co f member of lfr efsL conference hlch flxes rfLes by fgreemenL of lLs
membershlponers
O ,fy 8 1979 Lhe vfn 8eeum fper enLered lnLo f conLrfcL of fffrelghLmenL lLh lone for shlpmenL
of ros of bofrd lners from Ceorglf Lo ,fnlf
O @he shlpmenL fs conslgned Lo hereln peLlLloner Lf SuerLe Clgfr ClgfreLLe lfcLory @he conLrfcL of
fffrelghLmenL fs embodled ln 8l of Lfdlng no 602 lssued by Lhe cfrrler Lo Lhe shlpper @he expenses
of ofdlng fnd unofdlng ere for Lhe fccounL of Lhe conslgnee
O @he shlpmenL fs pfced ln 12 conLflner vfns fnd ofded on bofrd Lhe cfrrlers vesse SS vettozooo
8tlJqe
O L @oyo !fpfn Lhe cfrgo fs transh|pped on Lo vesses of Lhe Llne @en conLflner vfns ere
ofded on Lhe SS ot ost tleoJsblp hle Lo ere ofded on Lhe SS nooqooq Cloty
O ShorLy LhereffLer Lhe conslgnee (hereln peLlLloner) recelved from Lhe shlpper phoLocoples of Lhe bl
of fdlng consufr lnvolce fnd pfclng lsL fs e fs noLlce of Lhe esLlmfLed Llme of frrlvf of Lhe
cfrgo
O n !une 11 1979 Lhe SS ot ost tleoJsblp frrlved fL Lhe porL of ,fnlf slde from Lhe
fdverLlsemenLs of Lhe frrlvf of lLs vesses peLlLloner fs noLlfled ln rlLlng of Lhe shlps frrlvf
LogeLher lLh lnformfLlon LhfL conLflner demurrfge fL Lhe rfLe of 400 per lnefr fooL per dfy for Lhe
flrsL 3 dfys fnd 800 per lnefr fooL per dfy ffLer Lhe 3Lh dfy oud be chfrged uness Lhe conslgnee
Loo delvery of Lhe cfrgo lLhln Len dfys
O n !une 21 1979 Lhe oLher vesse SS nooqooq Cloty cfrrylng peLlLloners Lo oLher vfns frrlved fnd
fs dlschfrged of lLs conLenLs Lhe nexL dfy n Lhe sfme dfy Lhe shlpplng fgenL SmlLh 8e Co
reefsed Lhe uelvery ermlL for Leve (12) conLflners Lo Lhe broer upon pfymenL of frelghL chfrges
on Lhe bl of fdlng
O @he nexL dfy !une 22 1979 Lhe sfnd 8roerfge Co presenLed ln behff of peLlLloner Lhe shlpplng
documenLs Lo Lhe CusLoms ,frlne ulvlslon of Lhe 8urefu of CusLoms 8uL Lhe fLLer refused Lo fcL on
Lhem becfuse Lhe mfnlfesL of Lhe SS ot ost tleoJsblp covered ony 10 conLflners herefs Lhe bl
of fdlng covered 12 conLflners
O @he broer Lherefore senL bfc Lhe mfnlfesL Lo Lhe shlpplng fgenL lLh Lhe requesL LhfL Lhe mfnlfesL
be fmended SmlLh 8e Co refused on Lhe ground LhfL fn fmendmenL fs requesLed oud vlofLe
1003 of Lhe @frlff fnd CusLoms Code refLlng Lo unmfnlfesLed cfrgo LfLer hoever lL fgreed Lo fdd
f fooLnoLe refdlng @o conLflner vfns cfrrled by Lhe SS nooqooq Cloty Lo compeLe Lhe shlpmenL of
Leve conLflners under Lhe bl of fdlng
O n !une 29 1979 Lhe mfnlfesL fs plced up from Lhe offlce of respondenL shlpplng fgenL by fn
empoyee of Lhe 8C fnd fled lLh Lhe 8urefu of CusLoms @he mfnlfesL fs fpproved for reefse on
!uy 3 1979 8C roLe SmlLh 8e Co Lo mfe of record LhfL enLry of Lhe shlpmenL hfd been
defyed by Lhe error ln Lhe mfnlfesL
O n !uy 11 1979 hen Lhe 8C Lrled Lo secure Lhe reefse of Lhe cfrgo lL fs lnformed by prlvfLe
respondenLs coecLlon fgenL Lhe C8CS CufrfnLeed lfsL CoecLlon Servlces LhfL Lhe free Llme for
removlng Lhe conLflners from Lhe conLflner yfrd hfd explred on !une 26 1979 ln Lhe cfse of Lhe SS
ot ost tleoJsblp fnd on !uy 9 ln Lhe cfse of Lhe SS nooqooq Cloty

fnd that demurrage charges

had begun Lo run on !une 27 1979 lLh respecL Lo Lhe 10 conLflners on Lhe SS ot ost tleoJsblp fnd
on !uy 10 1979 lLh respecL Lo Lhe 2 conLflners shlpped on bofrd Lhe SS nooqooq Cloty
O n !uy 13 1979 peLlLloner pfld 4768000 represenLlng Lhe LoLf demurrfge chfrges on f Lhe
conLflners buL lL fs noL fbe Lo obLfln lLs goods
O n !uy 16 1979 lL fs fbe Lo obLfln Lhe reefse of Lo conLflners fnd on
!uy 17 1979 of one more conLflner L fs fbe Lo obLfln ony f pfrLlf reefse of Lhe cfrgo becfuse of
Lhe brefdon of Lhe frrfsLres equlpmenL fL Lhe conLflner yfrd
O @hls mfLLer fs reporLed by 8C ln eLLers of compflnL senL Lo Lhe hllpplne orLs uLhorlLy n
fddlLlon on !uy 16 1979 peLlLloner senL f eLLer dfLed !uy 12 1979 (Lxh ) Lo Sm|th 8e|| Co
request|ng recons|derat|on of the demurrage charges on the ground that the de|ay |n c|a|m|ng the
goods was due to the a||eged |ate arr|va| of the sh|pp|ng documents the de|ay caused by the
amendment of the man|fest and the fact that two of the conta|ners arr|ved separate|y from the
other ten conta|ners
O n !uy 19 1979 peLlLloner pfld fddlLlonf chfrges ln Lhe fmounL of 2016000 for Lhe perlod !uy 14
19 1979 Lo secure Lhe reefse of lLs cfrgo buL sLl peLlLloner fs unfbe Lo geL fny cfrgo from Lhe
remflnlng nlne conLflner vfns L fs ony Lhe nexL dfy !uy 20 1979 LhfL lL fs fbe Lo hfve Lo
more conLflners reefsed from Lhe conLflner yfrd brlnglng Lo flve Lhe LoLf number of conLflners
hose conLenLs hfd been delvered Lo lL
O SubsequenLy peLlLloner refused Lo pfy fny more demurrfge chfrges on Lhe ground LhfL Lhere fs
fgreemenL for Lhelr pfymenL ln Lhe bl of fdlng fnd LhfL Lhe defy ln Lhe reefse of Lhe cfrgo fs noL
due Lo lLs ffuL buL Lo Lhe brefdon of Lhe equlpmenL fL Lhe conLflner yfrd n f peLlLloner hfd pfld
demurrfge chfrges from !une 27 Lo !uy 19 1979 ln Lhe LoLf fmounL of 6784000n !uy 20 1979
peLlLloner roLe prlvfLe respondenL for f refund of Lhe demurrfge chfrges buL prlvfLe respondenL
repled on !uy 23 1979 LhfL fs member of Lhe lfr LfsL Conference lL coud noL modlfy Lhe rues or
fuLhorlze refunds of Lhe sLlpufLed Lfrlffs
O eLlLloner Lherefore fled Lhls sulL ln Lhe 8@C for speclflc performfnce Lo compe prlvfLe respondenL
cfrrler Lhrough lL s shlpplng fgenL Lhe SmlLh 8e Co Lo reefse 7 conLflner vfns conslgned Lo lL
free of chfrge fnd for f refund of 6784000 hlch lL hfd pfld pus fLLorneys fees fnd oLher
expenses of lLlgfLlon eLlLloner fso fsed for Lhe lssufnce of f rlL of prelmlnfry ln[uncLlon Lo
resLrfln prlvfLe respondenLs from chfrglng fddlLlonf demurrfge
ISSUL
f JheLher Lhere fre no demurrfge les ln Lhe fbsence of fny sholng LhfL Lhe vesses hfd been
lmpropery deLflned or LhfL oss or dfmfge hfd been lncurred fs f consequence of lmproper
deLenLlon
b JheLher or noL respondenL CourLs flndlng LhfL prlvfLe respondenL SmlLh 8e hfd prompLy fnd on
Lhe sfme dfy fmended Lhe defecLlve mfnlfesL ls conLrfry Lo Lhe evldence of record
c JheLher Lhe respondenL CourL mfnlfesLy overooed undlspuLed evldence presenLed by peLlLloner
sholng LhfL Lhe brefdon ln Lhe ffcllLles fnd equlpmenL of Lhe frrfsLre operfLor furLher defyed
peLlLloners lLhdrff of Lhe cfrgo


nLLD
O eLlLloner ls lfbe for demurrfge for defy ln removlng lLs cfrgo from Lhe conLflners buL ony for Lhe
perlod !uy 3 Lo 13 1979 lLh respecL Lo Len conLflners fnd from !uy 10 Lo !uy 13 1979 ln respecL of
Lo oLher conLflners
O ltst JlLh respecL Lo peLlLloners lfbllLy for demurrfge peLlLloners conLenLlon ls LhfL Lhe bl of
fdlng does noL provlde for Lhe pfymenL of conLflner demurrfge fs Cfuse 23 of Lhe bl of fdlng ony
sfys demurrfge le dfmfges for Lhe deLenLlon of vesses fnd here Lhere ls no deLenLlon of vesses
eLlLloner lnvoes Lhe rulng ln Moqelloo Mooofoctotloq Motketloq cotp v coott of Appeols

here
e deflned demurrfge fs foos
Demurrage ln lLs sLrlcL sense ls Lhe compensfLlon provlded for ln Lhe conLrfcL of
fffrelghLmenL for Lhe deLenLlon of Lhe vesse beyond Lhe Llme fgreed on for ofdlng fnd
unofdlng LssenLlfy demurrfge ls Lhe cflm for dfmfges for fflure Lo fccepL delvery n f
brofd sense every lmproper deLenLlon of f vesse mfy be consldered f demurrfge LlfbllLy
for demurrfge uslng Lhe ord ln lLs sLrlcLy Lechnlcf sense exlsLs ony hen expressy
sLlpufLed ln Lhe conLrfcL uslng Lhe Lerm ln lLs brofder sense dfmfges ln Lhe nfLure of
demurrfge fre recoverfbe for f brefch of Lhe lmpled oblgfLlon Lo ofd or unofd Lhe cfrgo
lLh refsonfbe dlspfLch buL ony by Lhe pfrLy Lo hom Lhe duLy ls oed fnd ony fgflnsL
one ho ls f pfrLy Lo Lhe shlpplng conLrfcL
JhfLever mfy be Lhe merlL of peLlLloners conLenLlon fs Lo Lhe mefnlng of Lhe ord demurrfge ln cfuse 23 of
Lhe bl of fdlng Lhe ffcL ls LhfL cfuse 29(f) fso of Lhe bl of fdlng ln refLlon Lo 8ue 21 of Lhe Iar Last
Conference 1ar|ff No 28IMC No 12 as quoted above spec|f|ca||y prov|des for the payment by the cons|gnee
of demurrage for the detent|on of conta|ners and other equ|pment
5econd JlLh respecL Lo Lhe perlod of peLlLloners lfbllLy prlvfLe respondenLs poslLlon ls LhfL Lhe free Llme
explred on !une 26 1979 fnd demurrfge begfn Lo Lo on !une 27 1979 lLh respecL Lo 10 conLflners hlch
ere unofded from Lhe SS ot ost tleoJsblp hle lLh respecL Lo Lhe 2 conLflners hlch ere unofded
from Lhe SS nooqooq Cloty Lhe free Llme explred on !uy 9 1979 fnd demurrfge begfn Lo run on !uy 10 1979
@hls conLenLlon ls w|thout mer|t eLlLloner cfnnoL be hed lfbe for demurrfge sLfrLlng !une 27 1979 on Lhe 10
conLflners hlch frrlved on Lhe SS ot ost tleoJsblp becfuse Lhe defy ln obLflnlng reefse of Lhe goods was
not due to |ts fau|t @he evldence shos LhfL becfuse Lhe mfnlfesL lssued by Lhe respondenL Llne Lhrough Lhe
SmlLh 8e Co sLfLed ony 10 conLflners herefs Lhe bl of fdlng fso lssued by Lhe Llne shoed Lhere
ere 12 conLflners Lhe 8urefu of CusLoms refused Lo glve fn enLry permlL Lo peLlLloner lor Lhls refson
peLlLloners broer Lhe 8C hfd Lo see Lhe respondenLs fgenL (SmlLh 8e Co) on !une 22 1979 buL Lhe fLLer
dld noL lmmedlfLey do someLhlng Lo correcL Lhe mfnlfesL SmlLh 8e Co fs fsed Lo fmend Lhe mfnlfesL
buL lL refused Lo do so on Lhe ground LhfL Lhls oud vlofLe Lhe f L fs ony on !une 29 1979 LhfL lL LhoughL
of fddlng lnsLefd f fooLnoLe Lo lndlcfLe LhfL Lo oLher conLflner vfns Lo fccounL for f LoLf of 12 conLflner
vfns conslgned Lo peLlLloner hfd been ofded on Lhe oLher vesse
SS nooqooq Cloty
L ls noL Lrue LhfL Lhe necessfry correcLlon fs mfde on !une 22 1979 Lhe sfme dfy Lhe mfnlfesL fs
presenLed Lo SmlLh 8e Co @here ls noLhlng ln Lhe LesLlmonles of lLnesses of elLher pfrLy Lo supporL Lhe
fppefLe courLs flndlng LhfL Lhe fooLnoLe expflnlng Lhe fppfrenL dlscrepfncy beLeen Lhe bl of fdlng fnd
Lhe mfnlfesL fs fdded on !une 22 1979 buL LhfL peLlLloners represenLfLlve dld noL reLurn Lo plc up Lhe
mfnlfessL unLl !une 29 1979 @o Lhe conLrfry lL ls more probfbe Lo beleve Lhe peLlLloners cflm LhfL Lhe
mfnlfesL fs correcLed ony on !une 29 1979 (by hlch Llme Lhe free Llme hfd frefdy explred) becfuse
SmlLh 8e Co dld noL lmmedlfLey no hfL Lo do fs lL lnslsLed lL coud noL fmend Lhe mfnlfesL fnd ony
LhoughL of fddlng f fooLnoLe on !une 29 1979 upon Lhe suggesLlon of Lhe 8C
no !une 29 1979 fs f lrldfy gfln lL ls probfbe Lhe correcL mfnlfesL fs presenLed Lo Lhe 8urefu of
CusLoms ony on ,ondfy !uy 2 1979 fnd Lherefore lL fs ony on !uy 3 LhfL lL fs fpproved It was
therefore on|y from th|s date (Iu|y 199) that pet|t|oner cou|d have c|a|med |ts cargo and charged for any
de|ay |n remov|ng |ts cargo from the conta|ners W|th respect to the other two conta|ners wh|ch arr|ved on the
SS fnqfnq 6/ory demurrage was proper|y cons|dered to have accrued on Iu|y 10 199 s|nce the free t|me
exp|red on Iu|y 9
@he perlod of defy hoever for f Lhe 12 conLflners must be deemed to have stopped on Iu|y 1 199
because on th|s date pet|t|oner pa|d 468000 f lL fs noL fbe Lo geL lLs cfrgo from Lhe conLflner vfns lL
fs becfuse of Lhe brefdon of Lhe shlfLer or crfnes @hls brefdon cfnnoL be bfmed on peLlLloners slnce
Lhese ere crfnes of Lhe frrfsLre servlce operfLor L oud be un[usL Lo chfrge demurrfge ffLer !uy 13 1979
slnce Lhe defy ln empLylng Lhe conLflners fs noL due Lo Lhe ffuL of Lhe peLlLloner
ndeed Lhere ls no refson hy peLlLloner shoud noL geL lLs cfrgo ffLer pfylng f demurrfge chfrges due on !uy
13 1979 f lL pfld 2018000 more ln demurrfge chfrges ffLer !uy 13 1979 lL fs ony becfuse respondenLs
oud noL reefse Lhe goods Lven Lhen peLlLloner fs fbe Lo obLfln Lhe reefse of cfrgo from flve conLflner
vfns Ls Lrucs ere unfbe Lo ofd fnymore cfrgo fnd reLurned Lo peLlLloners premlses empLy
n sum e hod LhfL peLlLloner cfn be hed lfbe for demurrfge ony for Lhe perlod !uy 313 1979 fnd LhfL ln
fccordfnce lLh Lhe sLlpufLlon ln lLs bl of fdlng lL ls lfbe for demurrfge ony ln Lhe fmounL of 2848000
compuLed fs foos
s shon fbove Lhere ls fn overpfymenL of 3936000 hlch shoud be refunded Lo peLlLloner
JL8Ll8L Lhe declslon fppefed from ls SL@ SuL fnd fnoLher one ls 8LnuL8Lu 8uL8nC Lhe prlvfLe
respondenLs Lo pfy to pet|t|oner the sum of 96000 by way of refund lLh egf lnLeresL
k1C ulsmlssed Lhe CompflnL
CA fflrmed