LEGAL PRINCIPLE: CIVIL PROCEDURE – Demurrer Proceedings – Effect of Endorsement of Bill of Lading – Need for Evidence
PRINCIPLE STATEMENT
The obvious implication of the mere endorsement of a Bill of Lading is that a court should be slow to reach a decision in limine as to what the result or consequence of that endorsement is. Such an endorsement without more cannot lead inexorably to a conclusion that property in the goods has thereby passed to the endorsee or that the consignee or endorser has ceased to have a right to institute action upon the bill of lading. It may be necessary to examine the pleadings to see what indeed might have transpired between the parties particularly if there are admissions that could clearly indicate that; or it may be expedient or even requisite that evidence be allowed to guide the course of event. The intention of the parties may be quite crucial.
RATIO DECIDENDI (SOURCE)
Per Uwaifo, JSC, in Brawal Shipping (Nigeria) Ltd. v. F.I. Onwadike Co. Ltd. (2000) 11 NWLR (Pt. 678) 387 at p. 410, cited with approval in Global Transport Oceanico S.A. & Anor v. Free Enterprises Nig. Ltd. (2001) NLC-128331998(SC) at p. 17; Paras A–C.
"The obvious implication of the mere endorsement of a Bill of Lading is that a court should be slow to reach a decision in limine as to what the result or consequence of that endorsement is. Such an endorsement without more cannot lead inexorably to a conclusion that property in the goods has thereby passed to the endorsee or that the consignee or endorser has ceased to have a right to institute action upon the bill of lading. It may be necessary to examine the pleadings to see what indeed might have transpired between the parties particularly if there are admissions that could clearly indicate that; or it may be expedient or even requisite that evidence be allowed to guide the course of event. The intention of the parties may be quite crucial."
EXPLANATION / SCOPE
Courts should be slow to decide demurrer proceedings solely on the effect of a bill of lading endorsement. Endorsement alone does not conclusively determine passage of property or right to sue. The court may need to examine pleadings, admissions between parties, or allow evidence to determine the parties’ intention. The legal effect of endorsement may depend on surrounding circumstances not apparent from the document alone. Summary determination at the demurrer stage may be inappropriate where extrinsic evidence is needed. The intention of the parties is crucial. This prevents premature dismissal of claims based on incomplete documentary analysis. The principle favours allowing cases to proceed to trial where factual issues exist.
