Case Study 4

RE: EXCELLENT RICE LIMITED

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INSTRUCTIONS TO COUNSEL
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Counsel has herewith:

(a) Extract of Bill of Lading containing a carriage contract with XYZ Sea Carriers Ltd;

(b) Draft Statement of Ms Erin Eccles, manager of Excellent Rice Limited;

(c) Copy of the radio transmission from the National Shipping Office (United Kingdom) at
Bristol to “The Princess”; and

(d) Copy of the radio transmission from “The Princess” to Excellent Rice Limited.

Counsel is instructed by Hops Solicitors of West House, Small Street, Bristol BS1 on behalf of
Excellent Rice Limited, 1 Cheltenham Road, Bristol BS1, United Kingdom, in relation to a
carriage contract with XYZ Sea Carriers Limited for the carriage by sea on board “The
Princess” (a shipping vessel) of two loads of 5,000 tonnes each of rice, each load to be
carried in a separate cargohold. The carriage was to be from New York (USA) to Bristol
Avonmouth (UK).

The facts of this matter appear from the statements of Ms Erin Eccles enclosed with these
instructions. Counsel is asked to advise Excellent Rice Limited as to whether it can bring an
action in the English courts and its chances of recovery for the damage to the cargo of rice.

Counsel will please inform Instructing Solicitors if there is any further information he
requires.

Henry Hops
Hops Solicitors
West House
Small Street
Bristol BS1

1/ (one month ago)/ (this year)

© UWE 1
Extract of BILL OF LADING

Shipper: Foggles Grains Ltd B/L No. 001

1 Horatio Street Booking ref: 002
New York 10013 Shipper’s ref: 003
USA

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Delivery of goods to Consignee:
Sea Carrier: XYZ SEA CARRIERS LTD

Notify Party/Address Place of Receipt

it is agreed that no responsibility shall attach to the Carrier (Applicable only when this document is used as a
or his Agents for failure to notify the Consignee of the arrival Bill of Lading)
of the goods (see Clause 20 attached)

Ocean Vessel and Voyage Number Place of Receipt

(Applicable only when this document is used as a
The Princess Combined Transport Bill of Lading)
001
Port of Loading
New York, USA

Port of Discharge: Bristol Avonmouth, United Kingdom

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Marks and Nos: Number and kind of Packages: Gross Weight (kg) Measurement (cbm)
Container Nos: description of Goods

111 Cargohold 1:
5,000 tonnes of Grade 1 American 10,000
long grain rice tonnes

Cargohold 2
5,000 tonnes of Grade 1 American
long grain rice

Total No. of Containers/Packages
Movement
Freight and Charges (prepaid or collect): prepaid
Origin Inland Haulage Charge ... ... ... ... ... ... ...
Origin Terminal Handling/LCL Service Charge ...
Ocean Freight ... ... ... ... ... ... ... ... ... ... ... ...
Destination Terminal Handling/LCL Service Charge
Destination Inland Haulage Charge ... ... ... ... ... ...
Received by the Carrier from the Shipper in apparent good order
and condition (unless otherwise noted herein) the total numbers
or quantity
of Containers or packages or units indicated *, stated by the
Shipper to comprise the Goods specified above, for Carriage
subject to
all the terms hereof (INCLUDING THE TERMS ON THE
REVERSE HEREOF AND THE TERMS OF THE
CARRIER’S APPLICABLE TARIFF) from the Place of
Receipt or the Port of Loading, whichever is applicable, to the
Port of Discharge or the Place of Delivery, whichever is
applicable. In accepting this Bill of Lading the Merchant
expressly accepts and agrees to all its terms, conditions and
exceptions, whether printed, stamped or written, or otherwise
incorporated, notwithstanding the non-signing of this Bill of
Lading by the Merchant.

Place and Date of Issue

New York (USA); 20/ (two months ago)/ (this year)

Number of Original Bills of Lading IN WITNESS of the contract herein contained the number of originals
1 stated opposite has been issued, one of which being accomplished
the other(s) to be void.
For the Carrier: AN Othe

© UWE 2
CLAUSE 15 - OPTIONAL STOWAGE AND DECK CARGO
(1) The Goods may be packed by the Carrier in Containers
(2) The Carrier is at liberty to store goods on deck.
(3) General Average applicable according to the usual rules.

CLAUSE 25 - LAW AND JURISDICTION

This Bill of Lading shall be governed by English Law. The Hague Visby Rules apply to the contract.

© UWE 3
I, ERIN ECCLES, manager of Excellent Rice Limited, 1 Cheltenham Road, Bristol, BS1, United
Kingdom, will say:

I have been the manager of Excellent Rice Limited since (3 years ago). On the 1 st (two
months ago) (this year), I met with Mr Fred Foggles of Foggles Grains, 1 Horatio Street,
New York 10013, United States, at my office in Bristol. We entered into a c.i.f. (Bristol -
Avonmouth) contract on behalf of our respective companies. The agreement was that
Foggles Grains would supply Excellent Rice two loads of 5,000 tonnes each of Grade 1 Long
Grain American Rice for £100,000. The contract was expressed to be governed by English
Law and the goods were to be shipped from New York (United States) to Bristol Avonmouth
(United Kingdom) in (two months ago) (this year).

Foggles Grains tendered the shipping documents on the 22nd (two months ago) (this year),
and Excellent Rice accepted the documents on that day.

On 26th (two months ago) (this year), Excellent Rice receive a radio transmission from The
Princess stating that it was approaching Lundy Island, off the Bristol Channel, and
continuing its journey as planned. It would arrive at Bristol on the 27 th (two months ago)
(this year) as planned.

When the Princess arrived at Bristol Avonmouth on the 27 th (two months ago) (this year),
the goods were unloaded. I was present at the unloading. I noticed that the hatch covers
of Cargohold Number 1 were missing and that the rice in that hold was contaminated with
sea water. A ship-hand, from the ship, informed me that the hatch covers had been blown
off during a storm near Lundy Island, the previous day.

I also noticed that the rice in Cargohold Number 2 had been badly damaged by rats.

I returned to my Bristol Office that afternoon and contacted the National Shipping Office
(UK) at Bristol to enquire whether it had known about The Princess sailing near Lundy
Island on the 26th (two months ago) (this year) and the weather conditions around the
island on that day. The office informed me that it had known about The Princess and that it
had sent the ship a radio warning. Upon my request The National Shipping Office has since
sent me a copy of the recorded message it sent to The Princess. It seems as if the ship
ignored the warning given in the radio message and continued on its course regardless.

© UWE 4
Radio Transmission Copy of Recorded Message

From: Contact No:............ Date: 26/ (two months ago)/ (this year)
Time: 1030 hours

The National Shipping Office (UK)

at Bristol,
1 Avonmouth Road
Bristol BS20.
United Kingdom

To: Contact No:............

“The Princess” (Vessel No.:.............)

of XYZ Shippers Limited
10 Avonmouth Road
Bristol BS20.
United Kingdom

Message

Extreme weather warning. You will encounter very severe storm with wind speed of 120
knots near Lundy Island at about 1430 hours today if you continue on your present course
at your present speed. You are advised to avoid the storm.

© UWE 5
Radio Transmission Copy of Recorded Message

From: Contact No.:............ Date: 26/ (two months ago)/ (this year)
Time: 1330 hours

“The Princess” (Vessel No:.......)

of XYZ Shippers Limited
10 Avonmouth Road
Bristol BS20
United Kingdom

To: Contact No.:............

Excellent Rice Limited

1 Cheltenham Road
Bristol BS1
United Kingdom

Message:

Approaching Lundy Island. Continuing as planned. Will arrive at Bristol Avonmouth on

27/ (two months ago)/ (this year) as anticipated.

© UWE 6