| Archives: January 2012

Award 1191 – Rice in bags under B/L to order – Surrogate insurer – Loss payee clause – Admissibility (yes) – Assessment of loss. Despite some clerical errors in documents produced by the claimant, it appears from the facts that the seller received the indemnity on behalf of the buyer to whom he transferred it. Therefore, by virtue of the deed of subrogation delivered by the receiver, the insurer is entitled to claim. The carrier’s liability being undisputed, in the absence of official market prices, the arbitrators assessed the damages on the basis of the CIF price invoiced plus 5 %.

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.