Consideration
59 The problem at the heart of Ixom's case is its reliance on the subjective understanding, and recollection, of Mr Tulloch and Mr Hunt as informing the construction and nature of what was represented by the relevant emails. That approach is incorrect.
60 A representation must be clear and unambiguous in order to found an estoppel: Legione v Hateley [1983] HCA 11; 152 CLR 406 at 435-6 per Mason and Deane JJ. That requires that the representation be of such a nature that it would have misled any reasonable person in the position of the person to whom it is addressed and that the representee was in fact misled by it: Western Australian Insurance Co Ltd v Dayton [1924] HCA 58; 35 CLR 355 at 375 per Isaacs ACJ, citing Low v Bouverie [1891] 3 Ch 82. Identifying the content of a representation is an objective task that is informed by the context in which the alleged representation takes place as well as the "known characteristics of the actual representee": MCI WorldCom International Inc v Primus Telecommunications Inc [2004] EWCA Civ 957; [2004] 2 All ER (Comm) 833 at [30] per Mance LJ (Ward LJ and Sir Martin Nourse agreeing). Contrary to Ixom's submissions in reliance on this passage, the "known characteristics of the actual representee" do not, and cannot, include the subjective understanding, belief or memory of the representee unknown to the representor; "known" here must mean known to the representor, not subsequently known to the court.
61 The purpose underlying the common law principle of estoppel by representation (a form of estoppel in pais) is to avoid or prevent the representee suffering a detriment if the representor were allowed to depart from the assumption conveyed by the representation on which the representee acted: Grundt v Great Boulder Pty Gold Mines Ltd [1937] HCA 58; 59 CLR 641 at 674 per Dixon J. That is why the representation must be so clear and unambiguous that a reasonable person in the position of the parties would have understood it in the sense that, subjectively, the representee asserts that he or she did. It is only if a reasonable person in the representee's position could have understood the clear and unambiguous representation in the sense that the representee claims that the law will hold the representor bound to adhere to the assumption. Thus, the sense in which a representation is actually understood by the representee is only relevant to the question whether the representation induced the representee to act upon it. That point was made in Krakowski v Eurolynx Properties Ltd [1995] HCA 68; 183 CLR 563 at 576-577 per Brennan, Deane, Gaudron and McHugh JJ in the context of a fraudulent representation, but it applies equally in the case of an estoppel by representation where there is no suggestion of fraud. That is to say, the representee's subjective state of mind goes to the question of whether they were misled, not to the content of the representation. It is therefore not to the point what Mr Tulloch or Mr Hunt actually understood or remembered in determining what, if any, representation was made by the exchange of emails separate from the terms of the contract that was thereby concluded.
62 In any event, insofar as Ixom sought to challenge the primary judge's findings regarding Mr Tulloch's understanding, it is quite clear that those findings are correct. Mr Tulloch's evidence includes the following:
(1) Before preparing his request for an extension of time on 23 May 2018, he reviewed the bill of lading and the voyage charterparty. It will be recalled that those documents identified that CS Marine was the "owner" (ie, disponent owner) which voyage-chartered the vessel to Trammo and that the Master signed the bill of lading on behalf of CS Marine.
(2) At that time, he considered that CS Marine was likely to be the contracting carrier under the bill of lading.
(3) Also at that time, he did not know whether CS Marine was the registered owner, and used the terminology "owners" in his correspondence to refer to the carrier under the bill of lading contract.
(4) He was satisfied on receipt of the email of 25 May 2018 that he had obtained from the contracting carrier (whom he thought was likely to be CS Marine) an extension of time to bring any claim under the contract of carriage.
(5) Whether CS Marine or the vessel's owner was the party liable under the bill of lading was not something that particularly concerned him at that time - it was an issue that ultimately needed to be resolved if proceedings were commenced but in his view he had been granted an extension of time by the carrier under the bill of lading.
(6) He was seeking an extension of time from the carrier under bill of lading, but had no recollection at that time of having been told that CS Marine was the demise charterer.
63 In the light of that evidence, there is no foundation at all to the submission that Mr Tulloch understood that he had secured an extension of time only from the registered owner which was the carrier. Even though he had forgotten that he had been told that CS Marine was the demise charterer, he still did not understand that he had been given an extension of time only from the registered owner or that the registered owner was the carrier. Ixom's case in that regard must fail, making it unnecessary to consider its application to amend the notice of appeal.
64 Turning then to the contention that it is Mr Hunt's understanding of the representation that is relevant, rather than Mr Tulloch's, on the primary judge's findings Mr Hunt's (mis)understanding was not "known", and could not have been expected to be known, to Mr Hockaday. It is therefore irrelevant to the question of what was represented.
65 Mr Hunt's actual (mis)understanding, as explained, does not go to the content of the representation or any role that Mr Hockaday or CS Marine played in making it but to Mr Hunt's reliance on his understanding. It was unreasonable for him to construe the representation as being a representation that only the registered owner had granted an extension (and thus that it was the carrier) in circumstances where he failed to ascertain the proper context in which the representation was made by obtaining copies of the prior communications between Mr Tulloch and Mr Hockaday.
66 But more to the point, Ixom submits that it (through Mr Hunt) understood the 23 and 25 May 2018 emails to say not only that the extension was granted only by the registered owner, but that the registered owner was the carrier. It is immediately to be observed that that is an implication that it is said that Mr Hunt drew and not something that was stated clearly and unambiguously. Further, in circumstances where he had in his possession the other relevant contractual documents, namely the bill of lading on which he intended to sue, the LOU and the agreement to keep information confidential, all of which gave clear indications to the contrary, that understanding was unreasonable and could not be expected to be the understanding of a reasonable representee. As mentioned, the bill of lading indicated that "CS Marine" was the carrier, and the confidentiality agreement, which Mr Hunt had himself struck, recorded "owners" to be CS Marine. The LOU spoke of both the registered owner and the demise charterer and it was given by Japan P&I, which explains the reference in Mr Hockaday's email of 25 May 2018 to "our client" (in the singular) agreeing to the extension of time.
67 There is therefore no sense in which the exchange of correspondence on 23 and 25 May 2018 by which an extension of time was agreed, judged objectively according to the impact that what was said may be expected to have on a reasonable representee in the position and with the known characteristics of the actual representee, could be reasonably understood to say that the registered owner was the contractual carrier. Nor was Mr Hunt's understanding of it reasonable.
68 Turning now to the authorities on which Ixom relies in its contention that there is some principle of law that necessitates that implication, neither The Henrik Sif nor Air Tahiti assist. In each case, unlike in the present case, the plaintiff had assumed that one entity was the relevant party liable under a contract of carriage and the defendant's conduct served to only encourage that assumption and induce the plaintiff into believing that the entity was a proper party. The findings in each case were based upon the defendant's conduct construed in the particular circumstances, and from which representations were conveyed that the relevant defendant was the proper party: see The Henrik Sif at 463-466 and Air Tahiti at [88]-[91]. Neither case purports to assert any legal principle that a person who agrees to extend a time-bar to bring proceedings for breach of contract necessarily represents that they are a party to the contract. Indeed, even a cursory review of those cases reveals that their factual circumstances are very different.
69 The passage in Handley at [2-017] referred to by Ixom deals with representations made by the exercise or assertion of rights. It cites Grundt at 676 where Dixon J explained that a person may be required to abide an assumption "because he has exercised against the other party rights which would exist only if the assumption were correct". Neither that case, nor any other cases in the passage, support the proposition contended for by Ixom. That is because there is nothing in granting an extension of time to bring a claim in the circumstances of the present case which makes any representation as to the identity of the carrier. Indeed, as found by the primary judge, the extension of time was sought and granted in order to preserve the status quo and avoid the need at that time to identify the carrier. There was no assertion or reliance on any right by Blue One in granting the extension, and in doing so it did not mislead; for a prospective defendant to agree to extend time is not to assert or rely on a right, it is to disclaim any such reliance for the agreed period of time.
70 Finally, there is the contention by Ixom that by both Blue One and CS Marine granting the extension they represented that they were both carriers under the bill of lading. That contention fails for the same reason as already dealt with on the hypothesis that the extension was given only for the registered owner. Further, just because it is theoretically possible to have two contractual carriers on the same contract of carriage does not mean that that representation was made in the present case. It is such an unusual, and only really a theoretical, possibility that there could have been no representation to that effect, and Mr Hunt did not say that he understood there to be one. Aside from anything else, there is no evidence of reliance on it.
71 With regard to the authorities relied on by Ixom, Air Tahiti at [29] does no more than refer to the discussion by Rix LJ in The Starsin at [70]-[76]. There it was said that although the possibility of both the charterer and the owner being liable on a bill of lading had been recognised, no case had so decided. In any event, the basis of that hypothesised liability was not that both were carriers; rather it was on the basis of an owner issuing bills of lading as agent for the charterer (which is common under a time charter but is hard to image under a demise charter) but doing so without identifying the charterer. In those circumstances, the owner could become liable on the bills of lading as agent for an undisclosed principal. That circumstance is far removed from the present and offers no support to Ixom's case.
72 The academic commentary relied on by Ixom for the proposition that both the owner and the charterer can, as a legal possibility, together have obligations to the bill of lading holder as carrier are based on United States cases in its unique statutory context and deal with the time charterer and the owner (or demise charterer), not the demise charterer and the owner. See Davies M and Dickey A, Shipping Law (4th ed, LawBook, 2016) at [12.810] and Rose F and Reynolds FMB, Carver on Bills of Lading (5th ed, Sweet & Maxwell, 2022) at [4-033].
73 Ixom also relies on a passage in The Stolt Loyalty at first instance. In that case, the facts were remarkably similar to the present in that the plaintiff sought and was granted an extension of time from "owners" even though in prior correspondence it had been made aware that there was a demise charterer that was almost certainly the carrier and the proper defendant. As in the present case, it was held by Clarke J that the extension of time was given by both the demise charterer and the owner. There were a number of considerations that led to that conclusion including the common usage of the word "owners" as covering both demise charterer and owner and because it would have made no commercial sense for the plaintiff to have sought an extension of time only from the registered owner in circumstances where it had information which showed that the likely proper defendant was the demise charterer (at 286-288).
74 Because of that conclusion, it was unnecessary to consider the plaintiff's alternative estoppel claims which would have arisen only if the defendants' contention that the extension of time had been given only by the registered owner had been upheld. The claimed estoppels were, first, that the demise charterer was estopped from relying on the time bar and, second, that the registered owner was estopped from denying that it was the proper defendant. The critical difference between that case and the present is that there the plaintiff commenced proceedings against both the demise charterer and the registered owner but was met with the defence that the claim against the demise charterer was out of time because the extension had been granted only on behalf of the owner.
75 Clarke J nevertheless considered the first estoppel claim in case he was found to be wrong on the construction of "owners". The estoppel case therefore proceeded on the premise, which his Lordship had rejected, that "owners" (in the telex exchanges construed objectively in their context and against surrounding circumstances - at 284 and 288) had conveyed that only the registered owners had granted an extension of time (at 288). The reason why Clarke J would have upheld the case was that the P&I Club that granted the extension of time was "virtually certain" that the plaintiff's solicitor, in seeking an extension from "owners", had made a mistake and overlooked the existence of the demise charterer and framed its response deliberately in such a way as to maintain the plaintiff's solicitor's error; the relevant person at the Club "decided to take advantage of that mistake" (at 289). Not only is that element lacking in the present case, the plaintiff in that case had also commenced proceedings against the demise charterer within the time extension granted, on the hypothesis there under consideration, only by the registered owner.
76 In relation to the second estoppel, which only arose for determination if the demise charterer had not been found to have granted an extension and was not estopped from relying on the time bar, Clarke J would have held that the registered owner was not estopped from denying that it was the proper party to be sued. That is essentially because the owner did not represent that it was a party to the bill of lading contract, notwithstanding that only it had granted an extension of time (at 291). That conclusion is therefore against Ixom's case.
77 The appeal against the decision of Clarke J on the contractual point was dismissed: The Stolt Loyalty [1995] 1 Lloyd's Rep 598 (CA) (Hoffmann LJ, Hirst and Glidewell LLJ agreeing). The estoppel claims were not considered. There is nothing in Hoffmann LJ's judgment that supports Ixom's case. Indeed, it is hard to understand why Ixom sought to rely on The Stolt Loyalty in support of its case when in truth that case is against it. Also, there is nothing in the passage that it specifically refers to (ie, 287-288 at first instance) in support of its contention that there can be two carriers that deals with that question.
78 Finally, there is the misleading and deceptive conduct claim. It rests on the contention that the 25 May 2018 email represented that the registered owner was the carrier. That has already been disposed of. The primary judge was correct to dismiss that claim.