7 Jun 2022
Arc-En-Ciel Produce Inc. v. BF Leticia (Ship)
The history of maritime law reflects the search for stability and security in relations between those who entrust themselves and their belongings to the unpredictable sea. The parties seek clarity on the legal regime applicable to the shipment of damaged goods. The Carrier argued for a stay based on a forum selection clause, while the Cargo Claimant argued that the Marine Liability Act permits them to proceed in Canada.
The issues to be determined are the nature of contractual arrangements between the Carrier and the Cargo Claimant, the applicability of section 46 of the Act, and whether the forum selection clause should be set aside. The analysis focuses on bills of lading, which serve as receipts, evidence of the contract of carriage, and documents of title. The historical development of bills of lading is discussed, highlighting their functions and form. Bills of lading can be transferable, and their format typically includes shipper and cargo details on the front and carrier's terms on the back.
The Court concluded that Shipping Documents and Service Contract are not covered by section 46 of the Act, as they are not contracts for the carriage of goods by water. The Cargo Claimant failed to show strong cause against enforcing the forum selection clause, so the Carrier's motions for a stay of the proceedings in favor of the United States District Court are granted. The Carrier has agreed to waive the contractual time-bar, and the stay is conditional upon the written waiver being provided within 60 days.