The Benarty - Court of Appeal (Ackner, Dunn & Dillon L.JJ.) - 15 June 1984

Exclusive jurisdiction clause effectively reducing carrier’s liability - Whether void under Hague-Visby Rules

The vessel Benarty was under charter to the appellants. A cargo was loaded in London for carriage to Indonesia under the terms of a bill of lading issued by the charterers. The Hague-Visby Rules were not expressly incorporated in the bill of lading but they were deemed to be included in the contract of carriage under English law. The cargo was damaged in the course of carriage. The cargo-owners brought proceedings against the charterers in England in respect of the damaged cargo. Jurisdiction was founded by arresting another ship in the ownership of the charterers. The charterers wanted to stay the English action on the ground that the bill of lading contained an exclusive jurisdiction clause providing that all actions under the bill of lading should be brought before the court of Djakarta, Indonesia.