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[2022] FCA 1101
Federal Court of Australia
2022-09-19
Burley J
Original judgment source is linked above.
Counsel for the Plaintiff: Mr E G H Cox
Solicitor for the Plaintiff: Mills Oakley
Counsel for the First and Third Defendants: Mr G Nell SC
Solicitor for the First and Third Defendants: Thynne + Macartney
BETWEEN: IXOM OPERATIONS PTY LTD Plaintiff
AND: BLUE ONE SHIPPING SA First Defendant
order made by: BURLEY J DATE OF ORDER: 19 September 2022
REASONS FOR JUDGMENT 1 INTRODUCTION [1] 1.1 The proceedings [2] 1.2 The pleaded case [5] 1.3 The separate questions [12] 2 THE ORAL EVIDENCE IN CHIEF [16] 2.1 The evidence on behalf of IXOM [17] 2.2 The evidence on behalf of Blue One Shipping and CS Marine [31] 3 THE ESTOPPEL AND ACL CLAIMS [41] 4 RELEVANT FACTUAL BACKGROUND [49] 5 THE SUBMISSIONS [109] 5.1 IXOM [109] 5.2 The defendants [121] 6 CONSIDERATION [124] 7 CONCLUSION AND DISPOSITION [174]
1.1 The proceedings 2 IXOM was the purchaser and consignee of a cargo of approximately 25,300 metric tonnes of sulphuric acid being shipped in bulk from Korea to Australia. The vendor and consignor was Trammo Pty Ltd. Pursuant to the terms of sale, Trammo arranged for the carriage of the consignment pursuant to the charter of the CS Onsan under a Tanker Voyage Charter Party. IXOM was not a party to the Charter Party but was named as the consignee on a non-negotiable tanker Bill of Lading dated 22 May 2017. Upon arrival on 6 June 2017 at Gladstone, Queensland, discolouration of the cargo was observed. 3 A dispute arose as to whether IXOM would take delivery of the consignment. After some negotiations in June 2017, the parties agreed to vary the arrangements for the discharge of the cargo, and IXOM reserved its rights to pursue a claim. On the approach of the first anniversary of the discharge, IXOM sought an extension of the limitation period under the Hague Visby Rules. The terms of the grant of that extension, given on 25 May 2018, give rise to the present dispute. 4 On 25 November 2020, IXOM commenced proceedings against the first defendant, Blue One Shipping. Somewhat later, in circumstances that are set out below, IXOM joined the third defendant, CS Marine. The second defendant, LS Nikko Copper Inc, was never served with the proceedings and it is not necessary to refer to it further. In these reasons, references to "the defendants" mean Blue One Shipping and CS Marine.
1.2 The pleaded case 5 It is convenient to summarise the course of the pleadings by reference to the following steps. 6 First, in its Originating Application IXOM claimed damages in the amount of $1,751,709, interest and costs, alleging that Blue One Shipping, by delivering contaminated cargo, failed in its duty to deliver the consignment in good order and condition in breach of (the primary claims): (1) its duty as a carrier and/or bailee for reward under the contract of carriage; (2) an implied term of the contract of carriage; (3) its duties under the Hague Visby Rules; (4) its duty owed to the plaintiff to exercise all due care and skill in the handling of the consignment. 7 In its defence, Blue One Shipping accepted that IXOM purchased the consignment from Trammo but otherwise denied the claims made. It denied that it was a party to a contract as evidenced by the Bill of Lading with IXOM and contended that at all material times it had demise chartered the CS Onsan to CS Marine. It further denied that the consignment was damaged or that it was otherwise liable. 8 Secondly, upon receiving Blue One Shipping's defence, on 9 November 2021, IXOM amended its pleadings to join CS Marine and plead the same causes of action against CS Marine. In its amended statement of claim IXOM added a further claim against both defendants, namely that they had engaged in misleading or deceptive conduct in breach of s 18 of the Australian Consumer Law in Schedule 2 of the Competition and Consumer Act 2010 (Cth) (ACL) in their response on 25 May 2018 to an email dated 23 May 2018 from Collin Biggers & Paisley Solicitors (CBP) to Thynne + Macartney solicitors (T&M), requesting an extension of the limitation period which applied to the contract of carriage evidenced by the Bill of Lading. It contended that T&M, as agent for Blue One Shipping and/or CS Marine, misrepresented that Blue One Shipping was the vessel owner and/or a party to the contract of carriage and that the consent of Blue One Shipping was sufficient to provide an extension to the Hague Visby Rules. As a result, IXOM did not seek an extension from CS Marine, with the consequence that IXOM suffered the loss of each of causes of action (1)-(4) at [6] above (ACL allegations). 9 Upon being joined, CS Marine admitted that it was the carrier of the consignment under the Bill of Lading and/or the contract of carriage evidenced by the Bill of Lading. It also admitted that it was a bailee for reward of the consignment pursuant to the terms of the Bill of Lading and the contract of carriage evidence by it, and also pursuant to the provisions of the Hague Visby Rules. However, it contended that IXOM failed to commence proceedings against it within the limitation period pursuant to Article 3 rule 6 of those Rules (the time bar). It also otherwise denied that the consignment was damaged and denied liability under any of the causes of action pleaded. 10 Thirdly, in its reply to the defences of Blue One Shipping and CS Marine, IXOM pleaded that, by reason of the exchange of correspondence on 23 and 25 May 2018 between CBP and T&M, Blue One Shipping is estopped from denying that it was a party to the contract of carriage evidenced by the Bill of Lading. It made an equivalent claim against CS Marine. The scope of the estoppel claim is explained further below. 11 Fourthly, Blue One Shipping and CS Marine further pleaded, in answer to the ACL allegations, that prior to the exchanges of emails between CBP and T&M in May 2018 (the prior communications), IXOM or its solicitors knew or ought to have known that CS Marine was the carrier, the bailee, the proper defendant and the person from whom an extension of time was required under the Hague Visby Rules in respect of the consignment. They pleaded that, if IXOM suffered loss, it was as a result of the failure of IXOM or its solicitors to exercise reasonable care in obtaining extensions of the limitation period and that, as a consequence, if IXOM suffered loss and damage as set out in the ACL allegations, it was a consequence of IXOM's failure to exercise reasonable care in commencing proceedings within the limitation period. Any damages to which IXOM may be entitled to recover should be reduced pursuant to s 137B of the Competition and Consumer Act 2010 (Cth) or IXOM's claim is apportionable within the meaning of s 87CB of that Act and any damages should be limited to an amount reflecting the portion of the loss and damage that the Court considers just and equitable having regard to the extent of the responsibility that Blue One Shipping and/or CS Marine (the apportionment issue).
1.3 The separate questions 12 During the course of the case management of the proceedings, the parties agreed that it was appropriate that the questions arising from the estoppel claim, ACL allegations and apportionment issue be determined separately and before the substantive issues of liability on the part of either the first or third defendant. 13 The separate questions for determination are as follows: (1) Whether Blue One Shipping is estopped from denying that it was and is a party to the contract of carriage evidenced by the Bill of Lading dated 22 May 2017 by reason of the matters pleaded in paragraph 2 of the IXOM's reply to Blue One Shipping's defence to the amended statement of claim dated 1 December 2021; (2) Whether CS Marine is estopped from relying on Article 3 rule 6 of the Australian Amended Hague Visby Rules in response to IXOM's claim against CS Marine in paragraphs 12 to 22 of IXOM's further amended statement of claim dated 9 November 2021 by reason of the matters pleaded in paragraphs 2 and 3 of IXOM's reply to CS Marine's defence to the amended statement of claim; (3) Whether Blue One Shipping and/or CS Marine engaged in conduct in contravention of s 18 of the ACL by reason of the matters pleaded in paragraphs 25 to 33 of IXOM's amended statement of claim dated 9 November 2021; and (4) Whether Blue One Shipping and CS Marine's allegations of contributory negligence and concurrent wrongdoers in paragraphs 56 to 61 of the defence of Blue One Shipping to the amended statement of claim dated 24 November 2021 and paragraphs 37 to 42 of the defence of CS Marine to the amended statement of claim dated 24 November 2021 apply to reduce any damages that IXOM may be entitled to by reason of Blue One Shipping and/or CS Marine's alleged contravention of s 18 of the ACL. 14 The questions raised in the separate questions arise from the same factual matrix, which is summarised in section 4 below. 15 For the reasons set out in more detail below, the answer to questions (1), (2) and (3) is "no" Accordingly, it is unnecessary to determine the answer to question (4).
2.1 The evidence on behalf of IXOM 17 Nicholas John Andersen has since February 2015 been the general counsel and company secretary of IXOM. He is a legal practitioner, and was first admitted to practice in 2001. He began working as a solicitor for Orica in February 2007. In February 2015 IXOM was divested from Orica. Mr Andersen gave evidence that he had never worked in a shipping law capacity and that he relied heavily on IXOM's external shipping lawyer, Andrew Tulloch of CBP, to assist in ascertaining the plaintiff's legal rights. 18 IXOM entered into a long term contract with Transammonia (as Trammo was then called) for the procurement of sulphuric acid for its operations, which was managed within IXOM by Michael Grant, who reported to Todd Martin, the person within IXOM who ran the sulphuric acid side of the business. Before commencing proceedings, Mr Andersen sought instructions from Mr Martin and IXOM's chief financial officer and, in the present case because an insurance underwriter was involved, that underwriter. 19 Mr Andersen gave evidence in chief about first being involved in the present dispute on about 14 June 2017, when he was informed that there was a cargo of about 25,000 tonnes of sulphuric acid sitting in a vessel off the coast of Queensland that was non-conforming. He gave evidence of his knowledge of negotiations being conducted between relevant parties about whether the plaintiff could reject the cargo. Mr Andersen retained Mr Tulloch on behalf of IXOM on 15 June 2017 and thereafter did not turn his mind to the identity of the party with whom the plaintiff had contracted, or the proper defendant to any later proceedings, because he considered that this was Mr Tulloch's job, as the shipping law expert. He gave evidence that he was given instructions by Mr Grant and Mr Martin concerning operational matters that in particular related to where the cargo might be discharged and the security that was sought in lieu of any arrest of the CS Onsan. As far as he was concerned, the provision of security by an underwriter (the Club) and arrangements for the discharge of the cargo in Port Kembla, NSW, were made by the end of June 2017, after which the dispute went quiet until 10 August 2017 when Trammo Navigation Pty Ltd sent an invoice for demurrage rendered to it by CS Marine in the amount of USD311,200. Mr Anderson was involved in preparing a deed of release in relation to that invoice, which was never signed. 20 Mr Andersen gave evidence that on 22 May 2018 he was informed by Mr Tulloch that the claim in respect of the consignment would become time barred by 6 June 2018 unless an extension of time was secured. By that time, IXOM had secured confirmation from its insurer (Vero) that it indemnified part, but not the entirety, of its claim in respect of the consignment and negotiations with it were continuing. He gave instructions to Mr Tulloch to seek an extension. 21 Mr Andersen's other evidence in chief addressed the email correspondence to which he was a party. He was cross examined. 22 Andrew Dean Tulloch, is a solicitor at CBP who has practised in the area of maritime and trade disputes since 1978. He has acted for IXOM since about 2015, taking instructions principally from Mr Andersen. He was first instructed by Mr Andersen in the present case by email on 15 June 2022 and provided written advice to him on the same day. He gave evidence about his involvement in sending and receiving correspondence in relation to the dispute and certain aspects of the advice that he gave IXOM. 23 Mr Tulloch gave evidence that from his review of the Bill of Lading and the Charter Party he had formed the view on 15 June 2017 that, because the Bill of Lading had been signed for the master, that ordinarily evidences a contract made with the vessel's owner. He noted that the Charter Party indicated that CS Marine was named as the owner of the vessel. 24 On 15 June 2017, Mr Tulloch prepared a request for an undertaking from the Club in the amount of USD2 million from "the owner and/or demise charterer of MV 'CS Onsan'" (emphasis added). He provided "and/or", because he was uncertain at the time as to whether the vessel was under demise charter. He gave evidence in chief that, on 16 June 2017, he received a telephone call from Matthew Hockaday. Mr Tulloch referred to a file note of that conversation in which he notes that Mr Hockaday informed him that he "acts for owners" of the vessel. He and Mr Hockaday had a without prejudice discussion concerning the provision of security by Mr Hockaday's client, the provision of an undertaking for the vessel not to depart Australia without adequate prior notice, and the possible rejection of the cargo by IXOM. 25 Mr Tulloch's evidence in chief otherwise addressed the correspondence to which he was a party. He was cross examined. 26 Timothy Corbett has worked as a recoveries officer employed by AAI Insurance, which is otherwise known as Vero, for about 10 years. Vero is IXOM's insurer and Mr Corbett became involved in a claim made by IXOM in relation to the consignment in February 2019. Mills Oakley had been engaged to advise Vero from before that time. Mr Corbett gave evidence that Mills Oakley was proactive in seeking time extensions in respect of potential claims against third parties and would report to him after an extension had been sought or granted rather than waiting for Vero to give specific instructions to them to do so. He gave evidence about the process by which Vero gave instructions to commence the present proceedings. Mr Corbett was cross examined. 27 Frazer Hunt is an experienced solicitor at Mills Oakley who has acted for almost 35 years in relation to maritime and transport matters, and has acted for Vero for about 25 years. He gave evidence in chief that he had been retained to act for Vero in the matter shortly before 7 July 2017 and of the steps that he had taken to ascertain the identity of the parties to the contract of carriage. In this regard, he gave evidence that he initially pursued enquiries with T&M in relation to the provision of security in respect of the claim, but that it proved to be unnecessary because Mr Tulloch had on 22 June 2017 secured such security in the form of a letter of undertaking from the Club "on behalf of the owners or demise charterers of the Vessel". 28 Mr Hunt gave evidence that he had at no time before the filing by Blue One Shipping of its defence been provided with the email sent by Mr Hockaday to Mr Tulloch dated 20 June 2017, which stated that the letter of undertaking was provided "by CS Marine, the demise charterers of the vessel". Mr Hunt also gave evidence that he was involved in the steps taken by Vero prior to it agreeing to indemnify IXOM in respect of its claim. Whilst an agreement was being finalised, Vero could not progress the claim in respect of the consignment and it was necessary to seek extensions of the time bar until the claim was quantified. It was for this reason that it was Mr Tulloch, acting for IXOM, rather than Mr Hunt, who requested the first extension by email on 23 May 2018. Mr Hunt understood from that email that the request for a time extension was being made from the registered owners of the vessel and that the reply of 25 May 2018, referred to at [38] below, was given by the registered owner only. 29 Shortly after 25 May 2018, the indemnity issue between IXOM and Vero was resolved and Mills Oakley took over conduct of the claim. Thereafter, Mills Oakley sought nine further extensions from T&M, adopting substantially the same language in each request as that set out in the email from CBP of 23 May 2018. Mr Hunt did not give further consideration of the identity of the likely defendant or owner. By the time that he prepared the statement of claim in the proceedings, he probably had the Charter Party and the results of an Equasis search. The latter showed that there were two registered owners of the vessel, Blue One Shipping and the second defendant. The search showed that by 2019 the ownership had been transferred to CS Marine, but by that time Mr Hunt considered that Vero had obtained security for the claim from the owner of the vessel (Blue One Shipping) and so Vero issued proceedings against the registered owners at the time of the damage. He considered that CS Marine was the disponent owner under the Charter Party, but because the Bill of Lading had been issued and signed by the master, the registered owner was the proper defendant to the proceedings. Mr Hunt gave evidence that had he been informed before the commencement of the proceedings that CS Marine was a demise charterer of the vessel, he would have sued it as the contractual carrier under the Bill of Lading. 30 Mr Hunt was cross examined.
2.2 The evidence on behalf of Blue One Shipping and CS Marine 31 Matthew Hockaday is a solicitor of over 20 years of experience in the admiralty and maritime field of law who has been a partner of T&M for over 10 years. He gave evidence that he was first instructed by an email dated 8 June 2017 received from Mr Kaichi Takata of the Japan P&I Club, Tokyo. The email was copied to Guangdon Choi of Aon Risk Solutions, the broker for CS Marine responsible for the cargo claim. The email noted that the CS Onsan had called at Gladstone to discharge sulphuric acid in bulk, but that the cargo receiver had refused discharge of the cargo until it was analysed by an independent lab in Sydney. It requested that a surveyor be appointed to investigate the incident and negotiate for the consignee to receive the cargo. 32 Mr Hockaday at first thought that he was representing the owners, which he understood to be CS Marine, but some days later he read a document that indicated that Blue One Shipping was the registered owner of the vessel, and so on 13 June 2017 he sought clarification from Mr Choi. On the same day he received a response, attaching the Club Certificate of Entry that recorded the "Members" as Blue One Shipping as owner, CS Marine as bareboat charterer and Korea Shipmanagers Co Ltd as the technical manager of the CS Onsan, and confirming that T&M acted for Blue One Shipping and CS Marine. 33 Mr Hockaday gave evidence about a conversation that he had with Mr Grant of IXOM on 16 June 2017 and a subsequent conversation and email exchange on the same day with Mr Tulloch concerning the provision of security by his clients in order to enable the vessel to leave port without the threat of arrest. He gave evidence of his email correspondence with Mr Tulloch following the initial exchanges, including an email of 20 June 2017 where the provision of a letter of undertaking was being negotiated, subject to IXOM taking delivery of the cargo. The email stated (emphasis added): Our client agrees to give 24 hours' notice to your client of any intended departure. We attach a letter of undertaking provided by CS Marine Co Ltd, the demise charterers of the vessel, to this effect. 34 Mr Hockaday gave evidence that apart from his initial conversation on 16 June 2017, all of his communications with Mr Tulloch until 22 June 2017 were in writing. He said that in that time the vessel interest and the cargo interest agreed that the consignment was to be discharged at ports other than Gladstone, which was the port of discharge under the Bill of Lading. Mr Hockaday reduced that agreement to writing in an email of 22 June 2017, which attached a letter of undertaking from the Club to IXOM of the same date. Following the provision of the letter of undertaking, Mr Hockaday had a further email exchange with Mr Tulloch in relation to the issue of demurrage. 35 Mr Hockaday gave evidence that in July 2017 he began communicating with Mr Hunt from Mills Oakley, who represented Vero, the cargo insurers. Mr Hunt arranged for the inspection of the vessel by a surveyor and then sought documents from T&M's clients. At one point Mr Hunt also sought security for the cargo claim, before becoming aware that it had already been agreed. 36 On 23 May 2018, Mr Hockaday received an email request from Mr Tulloch indicating his client's concern about the approaching time bar (under the Hague Visby Rules), and sought confirmation "that owners are prepared to grant a three month extension" (emphasis added). Mr Hockaday gave evidence that he understood that this request was made on the basis that T&M acted for both the registered owner (Blue One Shipping) and also the demise charterer (CS Marine) and that "owners" meant the party that would be liable as the owning entity under the Bill of Lading. 37 Mr Hockaday sent the request to the Club and also to Aon. On 24 May 2018, Mr Choi sent an internal email within Aon indicating that if a time extension were not to be agreed, IXOM would have no choice but to commence proceedings "against CS Marine" in order to preserve the claim. Agreement was reached and Mr Choi sent an email to Mr Hockaday on the same afternoon indicating that the Members agreed to the time extension. 38 On 25 May 2018, Mr Hockday sent an email to Mr Tulloch where he advised that "our client agrees" to provide the extension sought until 31 August 2018 "for any claims for damage and/or demurrage" under the Bill of Lading. 39 On 17 August 2018, Mr Hunt from Mills Oakley sent an email that indicated that his client had been instructed to pursue a subrogated claim against carriers. He sought confirmation that a further time extension on the same terms as the 25 May 2018 email would be granted. Mr Hockaday gives evidence that that request was granted by email of 27 August 2018, as was a series of subsequent requests for three month extensions made through until 2020. 40 Mr Hockaday was cross examined.
5.1 IXOM 109 IXOM contends that, as consignee to a non-negotiable bill of lading, it is entitled to sue on the Bill of Lading as if it were an original party, pursuant to s 8 of the Sea-Carriage Documents Act 1997 (NSW), because the Bill of Lading is within the definition of "contract of carriage" provided for in s 5. Accordingly, although Trammo was the initial party of the Charter Party and shipper on the Bill of Lading, IXOM is entitled to sue on the contract of carriage as if it were an original party. 110 IXOM submits that ordinarily only a party to the contract of carriage, or its subcontractor, can agree to extend or waive the Hague Visby limitation defence. The availability of extensions is necessarily limited to the carrier, citing Article 3 rule 6. Limitation extensions are strictly construed and an extension by owners does not ordinarily extend to charterers. 111 In the present case, IXOM contends that the Bill of Lading reasonably appeared to be one where the owner of the CS Onsan was the party to the contract of carriage and the contractual carrier. It was signed by the ship's master, and the presence of the CS Marine stamp on it would indicate no more than a manager or agent. There was no indication that CS Marine was either the carrier or employed the master. Nor did the Charter Party make clear, for example through an identity of carrier clause or demise clause, that there was a demise charter. 112 IXOM submits that the first critical finding must be to identify who are the parties to the extension contract. It contends that Mr Andersen, as the relevant primary decision maker within IXOM, relied upon and delegated the consideration of who may be the contracting party for any future claim to Mr Tulloch. The identification of the parties to the extension agreement depends on the objective circumstances known to the parties at the time that the first extension was sought. 113 IXOM relies on the decisions in The "Stolt Loyalty" [1995] 1 Lloyds Rep 598 (CA) (Stolt Loyalty, appeal) and Tritton Resources Pty Ltd v Ever Rock Navigation S.A. [2019] FCA 276; 369 ALR 205 as demonstrating, on facts analogous to the present, that the correct legal approach is to ascertain the meaning of words used by the parties to an agreement by considering them in a business-like manner in the context in which they are used. In the present case, IXOM submits the result is that the word "owners" in the emails on 23 and 25 May 2018 had its ordinary meaning, being the registered owners of the ship and not, as the defendants contend, "vessel interests". Accordingly, the parties to the agreement for the extension were the owners (being Blue One Shipping) on the one hand, and IXOM on the other. 114 Although in its submissions the ground shifted somewhat as to precisely how the pleaded estoppel case was put, the arguments in closing submissions may be summarised as follows. 115 In relation to its first estoppel claim, IXOM contends that the defendants knew that IXOM's representatives were operating under an incorrect assumption as to the identity of the carrier but, rather than correct that assumption, simply agreed to the extension request from owners who are not a party to the contract of carriage. It submits that it would be unconscionable for the defendants to depart from the assumption which their 25 May 2018 email perpetuated, citing Commonwealth v Verwayen [1990] HCA 39; 170 CLR 394 at 444-445 (Deane J) and The "Stolt Loyalty" [1993] 2 Lloyds Rep 281 at 290-291 (Clarke J) (Stolt Loyalty, first instance). 116 In relation to its second estoppel claim, IXOM submits that that the email communications show that IXOM, via its solicitors, shared a common assumption with the defendants that the Bill of Lading was issued by the owner as the contractual carrier. By their mutual dealings when varying the carriage arrangements on 22 June 2017 the parties proceeded on the basis that the owner was the carrier under the Bill of Lading. That mutual basis for their dealings was communicated to both parties through the language in their emails and it would be unjust to permit the defendants to depart from the mutual assumption, citing Con-Stan Industries of Australia Pty Ltd v Norwich Winterthur Insurance (Australia) Ltd [1986] HCA 14; 160 CLR 226 at 244 (the Court). 117 In relation to its third estoppel claim, IXOM submits that the 25 May 2018 extension email involved a misrepresentation as to the identity of the carrier and a representation that an extension of time had in fact been granted, without qualifying who granted it, or clarifying the identity of the carrier. It submits that it would be unconscionable for the defendants to resile from the representation by denying the grant of the extensions, citing Pacol Ltd v Trade Line Ltd (The "Henrik Sif") [1982] 1 Lloyds Rep 456 at 463 (Webster J), Air Tahiti Nui Pty Ltd v McKenzie [2009] NSWCA 429; 77 NSWLR 299 at 310-311 (Allsop P and Handley AJA, Hodgson JA agreeing) (referring to Verwayen at 444 (Deane J)) and Stolt Loyalty, first instance at 289-291 (Clarke J). 118 For each estoppel claim, IXOM contends that the question turns first on what finding is made as to the effect of the grant of the extension on 25 May 2018. If, as it contends in its primary case, the extension was by the registered owner, then the relevant reliance arises on 31 August 2018, after the three-month period expired. 119 In the alternative, if an extension was granted, as the defendants contend, by CS Marine, then there was still a claim that could have been brought against CS Marine in 2020. IXOM submits that a "contributory cause", or "significant factor" for the decision made by Mr Hunt on behalf of IXOM (via its insurer) to sue only Blue One Shipping was that the terms of the 25 May 2018 email and subsequent extensions were granted on equivalent terms: Sidhu v van Dyke [2014] HCA 19; 251 CLR 505 at [71]-[73] (French CJ, Kiefel, Bell and Keane JJ). 120 In relation to the ACL claim, IXOM submits that the same facts give rise to a conclusion that the defendants have, by the email of 25 May 2018 and subsequent extension emails, engaged in conduct in breach of s 18 of the ACL. It submits that by their failure to identify the party granting the extension, or clarify the identity of the carrier, the defendants impliedly represented that the owner was the carrier or alternatively, failed to correct an assumption as to the carrier under the contract. In support of these propositions IXOM cites Butcher v Lachlan Elder Reality Pty Ltd [2004] HCA 60; 218 CLR 592 at [102] (McHugh J) and Miller & Associates Insurance Broking Pty Ltd v BMW Australia Finance Ltd [2010] HCA 31; 241 CLR 357 at [16], [20], [22] (French CJ and Kiefel J). By reason of this conduct, IXOM submits it is entitled to damages equal to those that it is entitled to recover against the carrier under the Bill of Lading for the alleged damage to the consignment.
5.2 The defendants 121 The defendants deny T&M's email of 25 May 2018 contained the representations alleged both in IXOM's reply and in it submissions. They contend that there were no express representations to the effect alleged and that none should be implied from the text of the email, particularly having regard to the parties' previous communications and the knowledge of IXOM of the role of CS Marine. The defendants submit that it was clear, as a matter of fact, that the carrier of the consignment under the Bill of Lading was CS Marine and that the circumstances of the demise charter displaced both the usual assumption that a Bill of Lading signed by the master of a vessel is the agent for the registered owner and any suggestion that the reference to "CS Marine" on the Bill of Lading indicated no more than that CS Marine was a manager or agent. At all material times, T&M was retained on behalf of both Blue One Shipping as registered owner and CS Marine as the bareboat charterer on instructions from the Club and Aon. The defendants submit that the communications between the parties from 16 June 2017 until 22 June 2017 demonstrate that T&M made clear that it acted for "the owners", which was communicated in its email of 16 June 2017 which said that they acted for "vessel interests", meaning both Blue One Shipping as registered owner and CS Marine as bareboat charterer. Accordingly, the defendants dispute the contention that the reference to "owners" in the CBP email of 23 May 2018 was a reference only to the registered owner of the vessel or that the response on 25 May 2018, in referring to "our client", meant only the registered owner. 122 The defendants further deny that the T&M email of 25 May 2018 induced any belief in IXOM or its solicitor that Blue One Shipping was the carrier under the Bill of Lading or could reasonably have induced that belief. Any misapprehension could only have been based on a misapprehension as to the identity of the carrier, which was not induced by any earlier communication by the defendants, but due to a lack of reasonable care taken by IXOM and its solicitors in considering the available material, which clearly indicated that CS Marine was the carrier. Furthermore, the defendants submit that if IXOM or its solicitors were under any such misapprehension, the defendants were not aware of that fact, and were under no obligation to correct it. They submit that there is no evidence to support IXOM's contention that the defendants had knowledge of any misapprehension, and they dispute that any inference may be drawn (as IXOM contends) from the fact that no evidence was given regarding the defendants' state of mind when considering giving instructions to Mr Hockaday concerning the extension request. Nor, they submit, does any conventional estoppel arise, because there was no common assumption by the parties or their solicitors that the registered owner of CS Onsan was the carrier under the Bill of Lading. 123 The defendants finally submit that even if the representations alleged had been made by T&M's email of 25 May 2018, there was no prejudice to IXOM at that time, because CS Marine had also agreed to the extension of the limitation period sought, and IXOM had not lost its cause of action against CS Marine.
Ixom Operations Pty Ltd
Blue One Shipping SA