A/B KARLSHAMNS OLJEFABRIKER AND ANOTHER v. MONARCH STEAMSHIP COMPANY, LTD.

(1948) 82 Ll.L.Rep. 137

HOUSE OF LORDS.

Before Lord Porter, Lord Wright, Lord Uthwatt, Lord du Parcq and Lord Morton.

Bill of lading - Unseaworthiness - Prolongation of voyage-Outbreak of war -Nominated port of discharge not reached - Ship ordered by British authorities to proceed to different port of discharge - Cargo transhipped to nominated port-Cost of transhipment -Damages-Remoteness-War clause- Illegality-Cargo of beans purchased by pursuers from M. & Co. on c.i.f. terms -Defenders' ship chartered by M. & Co. for carriage of beans from Rashin to range of European ports-Serious delay on voyage due to boiler trouble- Unseaworthy condition of boilers at commencement of voyage-Karlshamn nominated by M. & Co. during voyage as port of discharge-Outbreak of war before arrival in European waters- Evidence that voyage would normally have been completed weeks before outbreak of war-Ship directed by British authorities to discharge at Glasgow- Bills of lading indorsed to pursuers after arrival at Glasgow-Cargo transhipped from Glasgow to Karlshamn- Claim by pursuers against defenders for cost of transhipment-War clause: (2) The ship shall have liberty to comply with any orders or directions as to departure, arrival, routes, ports of call, stoppages, destination, delivery or otherwise howsoever given by the government of the nation under whose flag the vessel sails or any department thereof, or any person acting or purporting to act with the authority of such government or of any department thereof, or by any committee or person having, under the terms of the war risks insurance on the ship, the right to give such orders or directions and if by reason of and in compliance with any such orders or directions anything is done or is not done, the same shall not be deemed a deviation, and delivery in accordance with such orders or directions shall be a fulfilment of the contract voyage and the freight shall be payable accordingly.

Effective cause of diversion - Ship bound to proceed to Glasgow in compliance with Admiralty orders-Risk of outbreak of war within reasonable contemplation of parties - Measure of damages.