In the New South Wales Supreme Court in The Mikhail Lermontov,1 Carruthers, J., awarded damages to one of the passengers who travelled on board the Mikhail Lermontov, which was wrecked off the New Zealand coast on 16 February 1986. The judgment is of interest not because the owners were found liable (since, during the course of a lengthy hearing, the owners had admitted liability) but because Carruthers, J., did not permit the owners to rely upon a deed of release which had been entered into by the plaintiff in settlement of her claim prior to the commencement of proceedings; a number of other interesting matters were also considered.

The first matter dealt with by Carruthers, J., relates to the question which he posed: “When was the contract of carriage made?” This is a matter which has exercised courts both in the United Kingdom and Australia for many years. His Honour referred to the English decisions in Hood v. Anchor Line (Henderson Bros.) Ltd.,2 Hollingworth v. Southern Ferries Ltd. (The Eagle)3 and Daly v. General Steam