Ratio Decidendi

Per Musdapher, JSC, in Owners of M/V Gongola Hope & Anor v. Smurfit Cases Nigeria Ltd & Anor (2007) NLC-123-121-2002(SC) at p. 9; Paras B–D:

"When a contract of carriage is breached in such a manner and when no explanation is offered as to how the loss occurred and where the shipper pleads and proves fraud, misrepresentation and negligence, the Hague Rules and the per package limitation will not apply."

Explanation / Scope

This principle establishes that the Hague Rules limitation on liability does not apply where there is a fundamental breach of the contract of carriage. Where the carrier offers no explanation for the loss and the shipper proves fraud, misrepresentation, or negligence, the carrier cannot rely on the per package limitation. The principle prevents carriers from escaping liability through technical limitations where they have fundamentally breached their obligations. It applies in carriage of goods by sea cases. The shipper must plead and prove the misconduct. The principle ensures accountability in maritime transport.

Cases Applying This Principle