UK: Hague Rules Time Limit Applies To Misdelivery Claims

Last Updated: 19 October 2018
Article by Fionna Gavin and Eleanor Dickens

Deep Sea Maritime Ltd v Monjasa A/S (The Alhani) [2018] EWHC 1495 (Comm)

The Court has held that a ship-owner, who had delivered the shipper's cargo to a third party without production of the relevant bill of lading, could nonetheless rely on the one-year time limit in Article III Rule 6 of the Hague Rules to defeat the shipper's claim for misdelivery.

The background facts

The dispute arose in relation to a shipment of bunker fuel oil on board the Owners' oil product tanker from Lome, Togo and destined for Cotonou, Benin. The bill of lading incorporated an exclusive English law and jurisdiction clause from the relevant charterparty, as well as the Hague Rules, which took effect as a matter of contract.

In the event, the cargo was discharged via ship-to-ship transfer off-shore Lome. The cargo was delivered, but without production of the bill of lading, to the buyer under the sale contract. The seller/shipper subsequently contended that it had not received payment for the bunker fuel and that it remained the owner of the cargo. It sought to claim against the Owners for non-delivery of the cargo.

The shipper commenced a number of proceedings in different jurisdictions, including arresting the vessel in Tunisia and subsequently commencing substantive proceedings there in order to determine the merits of the claims. Those proceedings were later dismissed, but remained subject to appeal. The Tunisian proceedings were commenced within 12 months of the misdelivery.

The Owners commenced English proceedings, seeking summary judgment and/or a declaration of non-liability in respect of the shipper's claims on the ground that these were time-barred pursuant to Article III Rule 6 of the Hague Rules. This provides that:

"In any event the carrier and the ship shall be discharged from all liability in respect of loss or damage unless suit is brought within one year after delivery of the goods or the date when the goods should have been delivered."

The Commercial Court decision

The Court found in favour of the Owners. It considered that the words used in Article III Rule 6 ("in any event" and "all liability") were wide enough to encompass any breach of a ship-owner's obligations under the bill of lading, including liability for delivering the goods to someone not entitled to take delivery of them. The object of finality (allowing a ship-owner to close its books) that the time bar was intended to achieve would be undermined if it did not apply to misdelivery claims. 

The Court's view was that the time bar was not limited to breaches of the Hague Rules, but would apply to any breach of the contract of carriage, including misdelivery, where that breach occurred during the Hague Rules period of responsibility and where it had a sufficient connection with the cargo that was carried or to be carried. The Court added that the misdelivery claim could in any event have been pleaded as a breach of the Hague Rules because it amounted to a failure to properly and carefully load, stow, carry, keep, care for and discharge the cargo under Article III Rule 2. The Court also rejected the argument that there was any settled understanding that the time bar did not apply to misdelivery claims.        

The Court then considered whether the Tunisian proceedings were effective to interrupt time running for the purposes of the one-year time bar. It decided that they did not. In circumstances where the Tunisian proceedings were brought in breach of the parties' contractual agreement to bring their claims in the English courts, the Tunisian proceedings did not constitute proceedings before a competent court that satisfied the requirements of Article III Rule 6. It would require exceptional circumstances, which were not present here, for foreign proceedings brought in breach of an exclusive English jurisdiction clause to constitute the bringing of suit for the purposes of Article III Rule 6. Among other considerations highlighted by the Court, the shipper was aware that there was a charterparty to which the Owners were party, and the bill of lading referred to it. Therefore, had the shipper asked for a copy of the Charterparty, it would have known about the exclusive jurisdiction clause. It could not, therefore, rely on any argument that it was unaware of that clause.

In conclusion, therefore, the shipper's claim for misdelivery was time-barred.


This decision provides important and welcome clarification on the application of the Hague Rules time limit to misdelivery claims. Further, given that the wording of the time bar under the Hague-Visby Rules is even wider in ambit ("all liability whatsoever..."), it is to be expected that the position would be the same under those Rules.

The shipper is appealing this decision.


The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on

Click to Login as an existing user or Register so you can print this article.

In association with
Related Topics
Related Articles
Up-coming Events Search
Font Size:
Mondaq on Twitter
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of

To Use you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.


The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.


Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions