Scruttons Ltd V Midland Silicones Ltd - Judgment

Judgment

At first blush, it was clear to the Court that the stevedores could not be exempted by the exemption clause as there was no privity of contract. The Court looked at whether there was a bailment relationship but found none. The case turned on the application of the Elder, Dempster case which suggested that privity could be circumvented. Lord Reid proposed that the stevedores could be covered under the contractual clause through agency if certain pre-conditions were satisfied.

I can see a possibility of success of the agency argument if (first) the bill of lading makes it clear that the stevedore is intended to be protected by the provisions in it which limit liability, (secondly) the bill of lading makes it clear that the carrier, in addition to contracting for these provisions on his own behalf, is also contracting as agent for the stevedore that these provisions should apply to the stevedore, (thirdly) the carrier has authority from the stevedore to do that, or perhaps later ratification by the stevedore would suffice, and (fourthly) that any difficulties about consideration moving from the stevedore were overcome. And then to affect the consignee it would be necessary to show that the provisions of the Bills of Lading Act 1855 apply.


All these conditions were satisfied in the subsequent case of New Zealand Shipping v Satterthwaite (The Eurymedon) AC 154.

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Famous quotes containing the word judgment:

    A judgment about life has no meaning except the truth of the one who speaks last, and the mind is at ease only at the moment when everyone is shouting at once and no one can hear a thing.
    Georges Bataille (1897–1962)

    The order of the world is always right—such is the judgment of God. For God has departed, but he has left his judgment behind, the way the Cheshire Cat left his grin.
    Jean Baudrillard (b. 1929)

    Why, all the souls that were were forfeit once,
    And He that might the vantage best have took
    Found out the remedy. How would you be
    If He which is the top of judgment should
    But judge you as you are? O, think on that,
    And mercy then will breathe within your lips,
    Like man new made.
    William Shakespeare (1564–1616)