Mediterranean Shipping Company SA v Trafigura Beheer BV & Anor, Court of Appeal - Civil Division, July 27, 2007, [2007] EWCA Civ 794,[2007] 2 Lloyd's Rep 622

Extract

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Mediterranean Shipping Company SA v Trafigura Beheer BV & Anor, Court of Appeal - Civil Division, July 27, 2007, [2007] EWCA Civ 794,[2007] 2 Lloyd's Rep 622

Neutral Citation Number: [2007] EWCA Civ 794

Case No: 2007 0997 A3

IN THE SUPREME COURT OF JUDICATURE

COURT OF APPEAL (CIVIL DIVISION)

ON APPEAL FROM THE HIGH COURT OF JUSTICE

QUEEN'S BENCH DIVISION (COMMERCIAL COURT)

Hon Mr Justice Aikens

[2007] EWHC 944 (Comm)

Royal Courts of Justice

Strand, London, WC2A 2LL

Date: 27 July 2007

Before :

LORD JUSTICE TUCKEY

LORD JUSTICE LONGMORE

and

LORD JUSTICE LLOYD

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Between :

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(Transcript of the Handed Down Judgment of

Smith Bernal Wordwave Limited, 190 Fleet Street

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Luke Parsons Q.C. and Chirag Karia (instructed by Messrs Hill Dickinson LLP) for the Appellant

Dominic Kendrick Q.C. and Charles Holroyd (instructed by Reed Smith Richards Butler LLP) for the Respondents

Hearing dates : 4th, 5th July 2007

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JudgementLord Justice Longmore:

1. Introduction

This is a case in which cargo-owners have sued shipowners for conversion and breach of contract in relation to a consignment of copper stowed in 18 containers shipped at Durban for delivery in Shanghai. Fraudsters arranged to create and present a false bill of lading against which the shipowners gave a delivery order entitling the fraudsters to delivery from the Hudong Container Terminal warehouse, in which the goods had been stored after arrival. Customs at Shanghai will not permit cargo to be taken out of the container terminal in the port without payment of customs duty and VAT and production of a delivery order stating that payment has been so made. The fraudsters have paid the customs duty and their delivery order has been endorsed by Customs to that effect. Only a day later the cargo-owners presented their (genuine) bill of lading and the shipowners were able to ensure that delivery to the fraudster did not take place. Although the shipowners gave another delivery order to the cargo-owners, that delivery order has not been stamped with any record of duty having been paid and the cargo-owners cannot therefore obtain delivery from the warehouse. This impasse has continued and still exists. In these circumstances the cargo-owners have sued the shipowners and have obtained an order from Aikens J ordering the shipowner to deliver the cargo or pay the full value of the cargo. From that order the shipowners now appeal contending that t...

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