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CaseLaw

Basinco Motors Ltd Vs. Woermann-Line (2009) CLR 6(g) (SC)

Judgement delivered on June 19th 2009

Brief

  • Privity of contract
  • Interpretation of statute
  • Reply brief

Facts

This appeal is against the judgment of the Court of Appeal, Lagos Division delivered on the 5th day of March 2001. The Appellant Basinco Motors Limited as Plaintiff instituted an action before the Federal High Court, Lagos, against the Respondents, Woermann-Line and Umarco (Nigeria) Plc as 1st and 2nd Defendants jointly and severally for the under mentioned claims:-

  • a
    The sum of 38, Deustch Marks or its equivalent in Naira being the value of the Plaintiff's consignment of good short landed by the Defendants
  • b
    The sum of N388,116.12 being incidental expenses incurred by the Plaintiff as a result of the Defendants negligence and loss of profits on the goods.

The case of the Plaintiff before the trial Court in a nutshell was that the Appellant a limited liability company engaged in the business of automobile spare parts and vehicle accessories ordered for 2 pallets and one carton of car spare parts from Terramem GMBH of Hamburg Germany. Woermann-Line a shipping company based in Hamburg Germany conveyed the items down to Nigeria on board the ship M.V. Fiona in the container LCL 1X2ONOEACU484035-1 to be delivered to the warehouse of the 2nd Respondent Umarco (Nigeria) Plc, an agent of the 1st Respondent. The particulars of the consignment are:-

  • 1
    15 pieces of cylinder head 1150102621.
  • 2
    15 pieces of cylinder head 1150102821.
  • 3
    100 set of ignition cable Ml 02 Engine ZEF 466.
  • 4
    2000 sets Gasket for Hengst filter.

A certificate of value dated 11th day of May, 1992 was issued by the shippers to the Appellants. On arrival at the Apapa Port Warehouse of the 2nd Respondent a routine check of the container was conducted. It was discovered that the container landed with part of the contents missing. The Respondents acknowledged the short delivery of the consignment and accepted liability in their letter of the 4th of November 1992 to the Appellant. The Appellant went to Court because the 1st Respondent owed it a duty of care to deliver the consignment as contained in the bill of lading Ref. No. W013 of 21st of May 1992. When it became apparent at the trial Court that the Appellant was not a party to the contract of carriage, the Respondents filed a motion on notice dated the 30th of May 1994 pursuant to Order 27 Rules 1, 2 and 3 of the Federal High Court Civil Procedure Rules 1976, Section 375(1) of the Merchant Shipping Act Cap.224, Laws of the Federation 1990 and under the inherent jurisdiction of the Court seeking the following reliefs:-

  • 1
    "An order dismissing/striking out this suit on the ground that the Plaintiff is not a proper party, not having bee named either as consignee or endorsee on the bill of lading and or if so named, having, in turn, endorsed the said bill of Lading to other parties, has no locus standi to institute and maintain the suit.
  • 2
    An order striking out the name of the 2nd Defendant from the substantive suit on the ground that the 2nd Defendant is an agent of a disclosed principal."

The presiding Judge took arguments of Counsel in respect of the application. In a considered ruling delivered on the 26th of July 1996 the trial Court dismissed the suit in limine for lack of locus standi by the Plaintiff/Appellant.

Dissatisfied with the ruling the Appellant filed a Notice of Appeal to the Court of Appeal urging the Court to reverse the decision of the trial Court. On the 15th of March 2001 the Court of Appeal dismissed the appeal and affirmed the judgment of the trial Court. Aggrieved by the decision of the Court of Appeal, the Appellant further filed an appeal in this Court.

Issues

  • 1
    "Whether the Appellant even though described in the bill of lading as...
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