Elder Dempster & Co Ltd v Paterson Zochonis & Co Ltd
[1924] AC 522
Ratio Decidendi
Stevedores employed by a carrier may be entitled to rely on the exceptions and limitations in the bill of lading contract, even though they are not parties to it, where there is an implied bailment on terms.
Ffeithiau
Cargo (palm oil) was damaged due to improper stowage. The goods were loaded by stevedores who were not parties to the contract of carriage. The cargo owners sued the stevedores directly in tort.
Crynodeb o'r dyfarniad
The House of Lords held that the stevedores could rely on the bill of lading exceptions. When the goods were handed to the ship's servants for loading, an implied bailment arose on the terms of the bill of lading, allowing the stevedores to invoke the same protections as the carrier.
Dyfyniadau allweddol
"The obligations to be inferred from the receipt of the goods for carriage may embrace the whole contract of carriage."
— Lord Sumner
Triniaeth ddilynol
The precise ratio has been debated, but the case remains important for Himalaya clause jurisprudence.
The modern approach is found in The Eurymedon and The Mahkutai.