AN IMPORTANT JUDGMENT.

Taranaki Daily News, 25 February 1916, Page 2

AN IMPORTANT JUDGMENT.

SHIPOWNERS' LIABILITY RESPECT-! ■ING DAMAGED GOODS. .•■ i (Frem Our Own Correspondent). Wellington, Februu-.-y 23. A reserved judgment of considerable importance to shipowners and shippers was delivered in the Magistrate's Court yesterday by Mr. W. G. Riddell, S.M. The judgment was in respect to a claim •for damages arising out of the stranding of the Corinna on Barrett's Reef on August 5 last, and the main point at issue was whether a shipowner had the right to dispose of damaged cargo without first notifying the consignee. The plaintill' was James Smith Fox, storekeeper, of Okato, New Plymouth, and the defendants the 'Union Steamship Company, Ltd. When the ease came before the Court, Mr. H. F. von Haast, who represented the plaintiff, stated that thirty sacks of grass seed—twenty of rye and ten cocksfoot—were shipped in good order and condition at Lyttelton by the Corinna for conveyance to New Plymonth, and only one sack of seed reached its destination. The remainder was sold by'auction by defendants without the consent of the plaintiff being obtained, and at a price considerably below the real value. In consequence of this file, the consignee claimed by way of damages the sum of £9O 3s sd. The Tacts were that when the Corinna struck the reef at Wellington Heads, a leak was caused iu the fore part of the vessel, which necessitated the Corinna's return to the Glasgow wharf. No. 1 hold, which was found to be flooded, was pumped out, and the cargo discharged, as well as from other holds, in order to allow the ship to be placed on the Patent >Sli)j. The discharged ca:'go was slacked on the wharf, examined by Lloyd's surveyor, and on Ids advice the perishable portion was sold at as early a date as possible. Among the goods disposed of were 29 sacks of plaintiff's grass seed, which realised the sum of 30s at auction. .Plaintiff was not advised of the intended sale, but it was admitted that defendants had acted in what they considered were the best interests of all the consignees of damaged cargo. Iu Hie judgment, Mr. Riddell said that it seemed clear from the evidence that if wet seed is not quickly spread out and dried the heating that follows its removal from the water seriously affects its germination. No steps were taken by the shipping company to improve the condition »f the seed after it was discharged from the steamer.

Mr.-P. Levi, who appeared for the Union Company, contended that defendants diil all that could reasonably be expected in the circumstances; that the condition of the cargo did not warrant them attempting to dry it; and that the only course left open was to sell it as quickly as possible. He further stated that there were difficulties in communicating with the consignee. His Worship said that the law relating to the sale of damaged goods, under similar circumstances, was laid down in the ease rif the Australian Steam Navigation company, against Morse. Tn that case it was held that in order to justify a sale, the captain n fthe vessel had to establish (I) the necessity for the sale; (•>) inability to communicate with the owner and obtain his direction'. Tn the ease under review, the circumstances warranted the sale of the damaged goods, with some urgency, ) )u t it was also considered that with reasonable expedition defeudnnts had sufficient time to communicate by telegram with plaintiff and advise him of the position. Tt was doubtful, continued the judgment, if plaintifT could have improved the condition of the seed had the ooportunity been given him to do so, and it was also doubtful what proportion could have been saved. The fact that plaintiff was not advised deprived him of an opportunity of acquiescing in the sale, er the making of other arrangements for dealing with his property. * The Court was of opinion that defendants were liable for damages, hut the correct estimate was not easy to ascertain. The amount was fixed at £2l 10s finrln.liiie 30s, paid into Court), for which UhWment was given, with costs £lO 17s. °