Limited Liability Regime For New Zealand Domestic Carriers: Supreme Court Decision

The strict liability/package limitation regime for domestic carriage in New Zealand limits liability to NZ$1,500 per 'unit of goods'. In Ports of Auckland Limited v Southpac Trucks Ltd [2009] NZSC 112 the Supreme Court has considered the application of the regime under the Carriage of Goods Act 1979 and overturned an earlier decision by the Court of Appeal. As a result, Southpac's recovery of some NZ$60,000 was reversed, to be replaced by the NZ$1,500 package limit.

The decision recognises that the Carriage of Goods Act 1979 (Act) is a comprehensive code which protects carriers not only when actually carrying the cargo, but when acting as a 'carrier' (as defined by the Act) of the damaged goods at the time they are damaged. The decision provides greater certainty of risk allocation for domestic carriers, cargo interests, and their respective insurers. It will be of particular interest for parties that undertake different functions while performing the carriage contract (eg port and warehouse users).

Background Kenworth Trucks and Southpac Trucks Limited (Southpac) entered into a tripartite agreement with CP Ships (UK) Limited (CP Ships) for the carriage of six Kenworth trucks from Melbourne to Auckland. Under the sea waybill CP Ships had a responsibility to discharge the trucks from the carrying vessel Rotoiti, to a corner of the wharf so that the consignee, Southpac, could collect the goods. It was this short domestic part of the carriage within Ports of Auckland that was the subject matter of the current dispute.

The Contract Of...

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