THE "TORNI."

(1932) 43 Ll L Rep 78

COURT OF APPEAL.

Before Lord Justice Scrutton, Lord Justice Greer and Lord Justice Slesser.

Bill of lading-Conflict of laws-Damage to and short delivery of cargo (oranges) - Unseaworthiness - Bills of lading issued and signed by residents in Palestine, cargo being shipped by regular service from Palestine to England - Claims by plaintiff cargo-owners against shipowners: (1) as indorsees suing under Bills of Lading Act, 1855; (2) upon implied contract arising from presentation of, taking of delivery and payment of freight under, bills of lading - "This bill of lading wherever signed, is to be construed in accordance with English law" - Whether contract governed by English law or by implied clause paramount (Government of Palestine Carriage of Goods by Sea Ordinance, No. 43 of 1926) providing that "every bill of lading . . . issued in Palestine which contains or is evidence of any contract to which the rules [in effect the Hague Rules] apply shall contain an express statement that it is to have effect subject to the provisions of the said rules as applied by this Ordinance, and shall be deemed to have effect subject thereto, notwithstanding the omission of such express statement"- Intention of parties - Illegality - -Held, by Langton, J., that the bill of lading contract was governed by the Palestine Ordinance and that the laws of Palestine applied, and that therefore the indorsees as such were entitled to rely upon such Ordinance; as to the plaintiffs suing upon implied contract, held, that, although their position was not regulated by the Bills of Lading Act, 1855, the shipowners had not shown that anything had occurred to alter the original contract in the hands of the new holders, and that therefore that contract also was governed by the Ordinance.