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.