STRATHLORNE STEAMSHIP COMPANY, LTD. v. ANDREW WEIR & CO.
(1934) 50 Ll L Rep 185
COURT OF APPEAL.
Before Lord Hanworth (Master of the Rolls), Lord Justice Slesser and Lord Justice Romer.
Charter-party-Bill of lading-Conversion -Delivery by master without production of bills of lading-Liability of shipowners-Claim by shipowners to be indemnified by time charterers- Time charter by S Co. to W Co.-No demise-Sub-charter to T for carriage of rice from Rangoon to Chinese ports -Arrival of vessel before bills of lading-Bills of lading pledged by shipper to Dutch Bank, which had discounted bills of exchange drawn by shipper on consignee-Delivery without production of bills of lading permitted by captain upon instruction of J M Co., agents appointed by W Co. (or their agents)-No knowledge of pledge to Dutch Bank-Delivery made against letter of guarantee indorsed by native bank-Bills of exchange dishonoured -No recoupment under letter of guarantee-Action successfully brought by Dutch Bank against S Co. for conversion-Right of S Co. to indemnity by W Co. both at common law and under time charter-Position of J M Co. considered-Ambiguous instructions-Award that S Co. were entitled to be indemnified under both heads-Case stated.