When An English Jurisdiction Clause In A Bill Of Lading Will Be Deemed Exclusive

Compania Sud Americana de Vapores SA v. Hin-Pro International Logistics [2014] EWHC 3632 (Comm)

The facts of the underlying dispute in this case are less interesting than the Court's findings that the English law and jurisdiction clause in the bills of lading was an exclusive jurisdiction clause and consequently that a permanent anti-suit injunction should be granted in relation to proceedings brought by cargo interests in China under the bills. Of particular relevance in the Court's opinion was the fact that, in agreeing to English law as the governing law of the bills, the parties should also be taken to have intended that the English courts should have exclusive jurisdiction. This is a particularly interesting decision, given that the jurisdiction clause in question provided for other courts to have jurisdiction in certain circumstances.

The background facts

The original claim was one for mis-delivery of goods. Hin-Pro, a Hong Kong freight forwarder, alleged that the carrier, CSAV, wrongly delivered cargo without production of original bills of lading in various ports in Venezuela. The shipments in question were all from China to Venezuela and on CSAV bills. The bills were straight bills naming CSAV's Venezuelan agents, Raselca, as consignee. Only some, not all, the bills named Hin-Pro asshippers. Nonetheless, Hin-Pro claimed to be an original party to the contract of carriage contained in each bill (which numbered about 70 in total).

In Chinese proceedings brought by Hin-Pro, CSAV contended that, under Venezuelan law, cargo had to be delivered to the storage provider authorised by the Venezuelan Government in almost all cases and that CSAV were therefore legally obliged under Venezuelan law to deliver the goods to the authority which then had sole control over the goods. The bills they issued specifically provided for this eventuality and CSAV said that the goods had all eventually been on-delivered to the buyers by their local agents. Indeed, no claim had been brought by any of those buyers.

CSAV subsequently sought and obtained both an anti-suit injunction and a worldwide freezing order against Hin-Pro from the English Commercial Court. The matter then came back before the Court, which was asked to make the anti-suit injunction permanent and to award CSAV damages in respect of Hin-Pro's breaches of the jurisdiction clause in the bills.

Clause 23 of the CSAV bills provided as follows:

"Law and jurisdiction.

This Bill of Lading and any...