Savannah Bank Of Nigeria Ltd. V. Pan Atlantic Shipping & Transport Agencies Ltd & Anor. (1987)

LawGlobal-Hub Lead Judgment Report

COKER, J.S.C.

This appeal raises two important issues of constitutional importance. The first concerns the nature or cause of action before the Lagos State High Court and the Competence of that Court to hear and determine it. The second is whether the respondent is entitled to the protection provided under the third paragraph of Article III Rule 6 of Hague Rules in the Schedule Carriage of Goods by Sea Act, Cap. 29, Laws of the Federation, 1958 .

The Appellant, a commercial banker, initiated the action leading to this appeal in the Lagos High Court. The sum claimed as loss is in respect of an amount paid to an overseas seller of a consignment of rice covered by an irrevocable commercial letter of credit issued by the plaintiff for and on behalf of its customer, the 2nd defendant.

The entire consignment of rice was shipped by the seller on a vessel called ARETI and landed safely in Lagos Port. In compliance with the terms of the credit all the original negotiable bill of lading and other documents of title were transmitted to the plaintiff bank as security for the amount paid to the seller. The particular facts stated in the bill of lading material to this appeal are as follows and is headed:

“IGNES CENTRAFRICAINES OCEANS INTERNATIONAL CORP.”

1. The Carrier: 5. Also Notify: OCEANS International
2. Shipper/Exporter: 3. Consignee: Senrenolla Enterprises Inc.
3. Notify Party: OCEANS “Order of the Shipper”
4. Also Notify: Nicannar Food Company Limited

Domestic Routing/Export

SAVANNAH NIGERIA LTD

6. Exporting Carrier/Vessel ARETI
7. Per Credit No.- L-8729
8. No. of Pkgs. 57,900
9. Description of Goods-Bags (2895) Metric Tons U. S. Long-Grain Parboiled Rice

As per Proforma Invoice dated 23rd May, 1978.

10. Stamped at the bottom in bold character are the following:

“NOT TO BE RELEASED UNLESS ENDORSED

BY SAVANNAH BANK OF NIGERIA LIMITED

LAGOS BRANCH”

11. Printed above the signature of the Master of the ship are the following words:

IN ACCEPTING THIS BILL OF LADING, any local customs or privileges to the contrary notwithstanding, the shipper, consignee and owner of the goods agree to be bound by all of its stipulations, exceptions, and conditions, whether written, printed or stamped on the front or back hereof, as fully as if they were all signed by said shipper, consignee and owner of the goods, such stipulations exceptions and conditions to apply in every contingency, wheresoever and whensoever occuring, and also in the event of deviation, or of unseaworthiness of the ship at the time of loading or inception of the voyage or subsequently. ”

12. Dated at HOUSTON TEXAS

OCTOBER 20, 1978

Sgd.