Lloyd's Maritime and Commercial Law Quarterly
GENERAL AVERAGE—THE FUTURE OF NON-SEPARATION AGREEMENTS
Ellerman Lines Ltd. v. Gibbs, Nathaniel (Canada) Ltd.
A recent Canadian Federal Court of Appeal decision on the interpretation of the York-Antwerp Rules, 1974 and the application of Non-Separation Agreements (“NSA”) has clarified the legal relationship between vessel and cargo interests at an interim port where delivery of cargo is demanded in a general average matter. While the court did not break entirely new ground it certainly trod in an area where few had previously ventured. Not surprisingly, in so doing it may have raised more questions than it answered.
In Ellerman Lines Ltd. v. Gibbs Nathaniel (Canada) Ltd. et al
1 the Federal Court of Appeal found that cargo owners could demand delivery of their cargo at an interim port upon payment of full freight without entering into a NSA where the vessel was delayed in completing her voyage as a result of an act of general average. As the general average expenses were incurred after the delivery of the cargo at the interim port, the court further held that such cargo interests were not liable to contribute in general average.
The case involved a shipment of cashew nuts under several bills of lading from Cochin, India on board the vessel City of Colombo for the port of Toronto,
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