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MARITIME LAW – BILLS OF LADING – NO BILL, NO CARGO – SHIPOWNERS HELD LIABLE FOR MISDELIVERY WITHOUT ORIGINAL BL

1. Summary and Facts

The Doric Valour [2025] 1 Lloyd’s Rep 401 involves a dispute regarding the alleged misdelivery of cargo without the presentation of original bills of lading (“BL”). Cargo interests claimed damages for misdelivery, asserting that the cargo had been released at the discharge port without proper surrender of the original bills of lading. The shipowners contended they were entitled to deliver the cargo under specific contractual arrangements and indemnities without the original BL being presented. The cargo interests, relying on the principles of maritime law, insisted on strict compliance with the requirement for presentation of the original BL. The High Court ruled in favour of the cargo interests, finding shipowners liable for wrongful delivery without the original bills of lading. Dissatisfied, the shipowners appealed.

2. Legal Issues

• Whether delivery of cargo without the presentation of original bills of lading constituted misdelivery.
• Whether shipowners were entitled to deliver cargo under contractual indemnities and instructions without presentation of original bills of lading.
• Whether the High Court was correct in finding the shipowners liable for misdelivery.

3. Court’s Findings

• The Court of Appeal dismissed the shipowners’ appeal and upheld the decision of the High Court.
• Delivery of cargo without surrender of original bills of lading constituted clear misdelivery, breaching the fundamental contractual obligation under maritime law.
• Indemnities or contractual instructions could not override the strict requirement to deliver cargo only upon presentation of the original bills of lading, which served as the key document of title and security.
• Shipowners’ reliance on indemnities to justify misdelivery was not valid, as indemnities could not supersede the fundamental principles governing delivery obligations in maritime contracts evidenced by bills of lading.

4. Practical Implications

This significant ruling reaffirms critical points regarding maritime carriage of goods:
• The sanctity of bills of lading as documents of title is strictly enforced; cargo delivery without their production constitutes misdelivery and potential liability.
• Shipowners and carriers must ensure original bills of lading are surrendered before releasing cargo, irrespective of any indemnities or other contractual instructions provided by parties.
• Parties involved in international shipping must maintain rigorous compliance with maritime protocols to prevent costly misdelivery claims and legal consequences.

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