Pirelli v PSA: Hague-Visby Rules & Weight Limitation for Damaged Goods

In Pirelli General PLC and Others v PSA Corp Ltd and Another, the Singapore High Court addressed the calculation of weight limitation under Article IV Rule 5(a) of the Hague-Visby Rules. The plaintiffs, owners of damaged electric cables, argued for using the total weight of the drums, while the defendants, terminal operators, advocated for using the actual weight of the damaged cable. The court ruled in favor of the defendants, determining that the limitation quantum should be based on the actual weight of the damaged goods, yielding a limitation quantum of $151,814.97.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Judgment for the defendants; the limitation quantum is based on the actual weight damaged.

1.3 Case Type

Admiralty

1.4 Judgment Type

Judgment

1.5 Jurisdiction

Singapore

1.6 Description

Singapore High Court determines that the weight limitation under Hague-Visby Rules should be based on the actual weight of damaged goods.

1.7 Decision Date

2. Parties and Outcomes

Party NameRoleTypeOutcomeOutcome TypeCounsels
PSA Corp LtdDefendantCorporationJudgment for DefendantWon
Pirelli General PLCPlaintiffCorporationClaim DismissedLost
Pirelli Cables LtdPlaintiffCorporationClaim DismissedLost
The Metopolitan Electricity AuthorityPlaintiffGovernment AgencyClaim DismissedLost
United Thai Shipping Corp LtdDefendantCorporationJudgment for DefendantWon

3. Judges

Judge NameTitleDelivered Judgment
Belinda Ang Saw EanJudgeYes

4. Counsels

Counsel NameOrganization
Tan Hui TsingJoseph Tan Jude Benny
Danny ChuaJoseph Tan Jude Benny
Joseph TanKenneth Tan Partnership

4. Facts

  1. Plaintiffs owned a cargo of 7 drums of oil-filled electric cables.
  2. Each drum contained a single cable measuring 526 metres and weighed approximately 22,916 kg.
  3. First defendants operated the terminal at the port of Singapore.
  4. Cargo was shipped on board the vessel "LA LOIRE" from Southampton to Singapore for transshipment to Bangkok.
  5. A bill of lading was issued by the second defendants for "7 x 20 foot flat rack containers said to contain 7 drums electric cable".
  6. Cargo was discharged in Singapore on 27 April 1999 in good order and condition.
  7. Prior to loading onto the connecting vessel, three drums were found to be damaged.

5. Formal Citations

  1. Pirelli General PLC and Others v PSA Corp Ltd and Another, Adm in Rem 158/2000, [2003] SGHC 31

6. Timeline

DateEvent
Cargo discharged in Singapore
Judgment delivered

7. Legal Issues

  1. Interpretation of Hague-Visby Rules Article IV Rule 5(a)
    • Outcome: The court held that the weight limitation should be calculated based on the actual weight of the goods lost or damaged, not the total weight of such goods.
    • Category: Substantive
    • Sub-Issues:
      • Calculation of weight limitation
      • Definition of 'gross weight of the goods lost or damaged'

8. Remedies Sought

  1. Monetary damages

9. Cause of Actions

  • Breach of contract of carriage

10. Practice Areas

  • Shipping
  • Commercial Litigation

11. Industries

  • Shipping
  • Logistics

12. Cited Cases

Case NameCourtAffirmedCitationJurisdictionSignificance
Data Card Cocporation v Air Express International CorporationN/AYes[1983] 2 Lloyd’s Rep 81N/ACompared the position with that of air carriage found in the pre-amended Warsaw Convention.
China Airlines Ltd v Philips Hong Kong LtdN/AYes[2002] 3 SLR 367N/ADeclined to draw a parallel between the Warsaw Convention and the Hague / Hague-Visby Rules due to the different features of both regimes.
Stag Line Ltd v Foscolo, Mango & Zco LtdN/AYes[1932] AC 328N/ACited for the principle that the primary canon of interpretation of such Rules is to achieve uniformity with the views taken in other jurisdictions.
The MorvikenN/AYes[1983] 1 Lloyd’s Rep 1N/ACited for the principle that the Hague Visby-Rules should be given a purposive rather than a narrow literalistic construction.

13. Applicable Rules

Rule Name
Order 14 rule 12 of the Rules of Court

14. Applicable Statutes

Statute NameJurisdiction
Carriage of Goods by Sea Act (Cap 33), s 3Singapore

15. Key Terms and Keywords

15.1 Key Terms

  • Hague-Visby Rules
  • Weight limitation
  • Gross weight
  • Goods lost or damaged
  • Bill of lading
  • Limitation quantum
  • Actual weight
  • Package limitation

15.2 Keywords

  • Hague-Visby Rules
  • weight limitation
  • damaged goods
  • Singapore
  • shipping law
  • admiralty law

17. Areas of Law

Area NameRelevance Score
Admiralty and Maritime Law90
Shipping Law90
Bills of Lading Act80
Admiralty Jurisdiction and Arrest70
Contract Law60

16. Subjects

  • Shipping
  • Admiralty
  • Contract Law
  • International Trade Law