Zhejiang Branch of People's Insurance Company of China v. China Consolidation Services Ltd. of Shanghai
(Case of Dispute over Subrogation for the Loss of Goods under the Contract for Carriage of Goods by Sea)
[Judgment Abstract]
1. Under Article 51 of the Maritime Law, a carrier under a contract of carriage of goods by sea shall not be liable for loss of and damage to the goods caused by fire during its responsible time period. ¨Carrier〃 here refers to a person who, by itself or by authorizing another person, enters into a contract of carriage of goods by sea with a shipper under its name.
2. Under Article 46 of the Maritime Law, the carrier's responsible time period for goods carried in containers starts from the receiving of goods at the loading port and ends at the delivery of goods at the discharging port in which period the goods is under the control of the carrier. The fire in the subject case occurred during the carrier's responsibility time period for goods carried in containers and the occurrence of the fire was not caused by the carrier's own negligence. Hence, the carrier was exempted from the liabilities.
BASIC FACTS
Plaintiff: Zhejiang Branch of People's Insurance Company of China, located at Middle Zhonghe Road of Hangzhou City, Zhejiang Province.
Person in Charge: Zhu Shouzhong, general manager of the company.
Defendant: China Consolidation Services Ltd. of Shanghai, located at Shanghai Bund International Building, No.99 of Huangpu Road, Shanghai Municipality.
Legal Representative: Feng Chen, general manager of the company.
PROCEDURAL POSTURE
For the dispute over subrogation for the loss of goods under the contract for carriage of goods by sea, Zhejiang Branch of the People's Insurance Company of China (hereinafter referred to as Zhengjiang Branch of PICC) filed a lawsuit with Shanghai Maritime Court against China Consolidation Services Ltd. (hereinafter referred to as Hanhang Company).
The plaintiff claimed that: in August 2004, Zhejiang G&F Foreign Trading Co., Ltd. (hereinafter referred to as Huilong Company) entrusted Hanhang Company to ship a batch of goods to Calcutta, India. Before the goods were delivered to the consignee, namely, when the goods were still under the charge of the carrier, a fire disaster broke out, which caused the loss of the goods. Huilong Company had taken all-risk insurance of carriage of goods by sea for these goods before they were shipped, so the plaintiff made an insurance claim against Huilong Company in accordance with the terms of the all-risk insurance contract and obtained the right of subrogation according to law. The plaintiff requests the court to order the defendant to pay USD 13962.85 for the plaintiff's loss and pay the legal cost of this case.
Hanhang Company argued that: it is true that the goods involved in this case were lost in a fire disaster as claimed by the plaintiff, but the plaintiff can't prove that it has properly fulfilled the obligation of paying insurance indemnities and that it has obtained the right of subrogation according to law. According to law, the defendant, as the carrier of the goods involved in this case, shall be exempted from liability for the loss of the goods due to a fire disaster. The defendant requests the court to dismiss the plaintiff's claim.
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