Grant v Norway
A master has no authority to sign bills of lading for goods which have not been shipped, so the shipowner was not bound by a bill issued for goods which were never put on board.
Facts
The master of a ship signed a bill of lading acknowledging that 12 bales of silk had been shipped, although in fact they had never been put on board. The bill was transferred to the claimants, who advanced money on the faith of it. When the goods were not delivered, they sued the shipowners.
Legal principle
The Court of Common Pleas held that the shipowners were not liable. Jervis CJ said that the master of a ship has no authority, as agent of the owners, to sign bills of lading for goods which have not been shipped, and that persons taking bills of lading must be taken to know the extent of his authority. The shipowners were therefore not bound by the bill. The rule was much criticised, and it has been largely reversed by section 4 of the Carriage of Goods by Sea Act 1992, which provides that a bill of lading representing goods to have been shipped is conclusive evidence of shipment in favour of a lawful holder.
Related cases on bills of lading and carriage of goods by sea
- Alize 1954 v Allianz Elementar Versicherungs AG (The CMA CGM Libra) [2021] UKSC 51
- Comptoir d'Achat et de Vente du Boerenbond Belge SA v Luis de Ridder Limitada (The Julia) [1949] AC 293
- Homburg Houtimport BV v Agrosin Private Ltd (The Starsin) [2003] UKHL 12, [2004] 1 AC 715
- JI MacWilliam Co Inc v Mediterranean Shipping Co SA (The Rafaela S) [2005] UKHL 11, [2005] 2 AC 423
- Maxine Footwear Co Ltd v Canadian Government Merchant Marine Ltd [1959] AC 589
- New Zealand Shipping Co Ltd v AM Satterthwaite & Co Ltd (The Eurymedon) [1975] AC 154
- Pyrene Co Ltd v Scindia Steam Navigation Co Ltd [1954] 2 QB 402
- Riverstone Meat Co Pty Ltd v Lancashire Shipping Co Ltd (The Muncaster Castle) [1961] AC 807
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