Court Notes on Pyrene Co. Ltd. V. Scindia Steam Navagation Co.

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PYRENE CO., LTD. V. SCINDIA STEAM NAVIGATION CO., LTD QUEEN'S BENCH DIVISION [1954] 2 QB 402, [1954] 2 All ER 158, [1954] 2 WLR 1005, [1954] 1 Lloyd's Rep 321 HEARING-DATES: 15, 16, 17 March, 14 April 1954 HEADNOTE: By the Carriage of Goods by Sea Act, 1924 , Schedule, Article I (b): "'Contract of carriage' applies only to contracts of carriage covered by a bill of lading... In so far as such document relates to the carriage of goods by sea, including any bill of lading... Issued under or pursuant to a charter party from the moment at which such bill of lading... Regulates the relations between a carrier and a holder of the same". By Article I (e): "'Carriage of goods' covers the period from the time when the goods are loaded on to the time when they are discharged from the ship", and by Article II: "... Under every contract of carriage of goods by sea the carrier in relation to the loading, handling, stowage, carriage, custody, care, and discharge of such goods, shall be subject to the responsibilities and liabilities, and entitled to the rights and immunities hereinafter set forth". In August, 1948, the plaintiffs entered into a contract with the Government of India, through a department of the government ("I.S.D.") by which they agreed to sell to the Indian government a number of airfield crash tenders, F.O.B. London. All arrangements for the carriage of the goods were made by I.S.D. through their agents, who were also freight brokers for the plaintiffs and nominated one of the defendants' ships for loading under the contract. In April, 1951, the plaintiffs, in accordance with instructions issued by I.S.D., delivered one of the tenders to the Port of London for loading on board the ship. In the course of loading by the ... ... middle of paper ... ...oyd's Rep 240, the seller would appear to have performed the last act necessary to appropriate the goods to the contract - surely he could not realistically have recalled them at the time of the accident? But the conversion argument assumes that property was still vested in the seller, and indeed the seller's claim in tort also assumes this. The case may therefore suggest a strong reluctance of the courts to hold that property in an F.O.B. contract passes before shipment. 16. On the Hague Rules, Devlin J. did not care for the idea of rights and duties transferring back and forth as the cargo swung on the crane to and from over the ship's rail. Though these remarks are not addressed to the question of risk, they appear to be equally applicable. It has not been decided whether risk passes F.O.B. at the ship's rail, or at the end (or beginning) of the loading process.

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