| Award 1189

Award 1189 – Cargo of rice in bags – Surrogate insurer – Admissibility (yes) – Brussels Convention of 1924 – English law – Shortage – Breach by carrier (yes) – Application of FIOS clause – Rebate on amount of damages caused by wetting. The action of an insurer subrogated into the rights of the receiver who paid the seller the indemnity is admissible since it was consistent with the insurance contract. The carrier who issued clean B/Ls is fully liable for the shortage ascertained when opening the holds. However, in respect of the shortage resulting from discharging operations arranged by the receiver, he is protected, according to English law, by the FIOS clause of the charter-party. The carrier is responsible for the damages caused by wetting due to improper stowage but a long waiting time on roads played a part in the worsening of the mould process and causes the arbitral Tribunal to grant the carrier a rebate on their amount.