Unreasonable exemption clause can still apply
An English High Court has ruled that just because an exemption clause in a bill of lading appears unreasonable, that does not mean that it would be automatically rejected.
Instead, the clause could still apply even if it exempted a carrier from liability for negligence or unseaworthiness, reports The Business Times. The case concerned the shipment of almost 156 000 cartons of frozen chicken parts from Brazil to Japan. It was not disputed that the goods were in good order and condition when shipped. The claimants, who were the lawful holders of 19 bills of lading under which the goods were shipped, sued the carrier for damage to 110 000 cartons caused by insufficient refrigeration during the voyage. The defendant carrier relied on Clause 4 of the bill of lading, which stated that the carrier was not responsible for any loss or damage to the goods \'however caused\'. The clause also specifically exempted the carrier for loss or damage to goods caused by unseaworthiness or negligence. Full report in The Business Times