Law (International Business) - Problem Question Essay

Law (International Business) - Problem Question - Essay Example In the case of Shipping Corporation of India Ltd v Gamlen Chemical Co (A/Asia) Pty Ltd (1980)147CLR 142 (High Court of Australia, 1980), the facts of the case was that the carrier – Shipping Corporation of India Ltd was contracted to transport goods to Gamlen from Sydney in Australia. During the ship’s passage it encountered heavy weather and rough seas in Australian waters. On arrival the goods were found to be in damaged. The shipper sued the carrier for breach of article 3(2) of the Hague-Visby Rules which requires that the goods be carefully loaded, handed, cared for and discharged. The court of Australia found that the damage to the goods was the result of a combination of factors involving perils at sea and improper stowage. Therefore the carrier was not allowed to invoke the Article 4 exceptions which allows for perils at sea. This was due to the carrier’s failure to exercise due diligence which was considered to be a concurrent or dominant cause of the da mage sustained. The carrier could not therefore deny responsibility for the losses suffered by the shipper in circumstances where the carrier’s failure to exercise due diligence was one of the causes of the losses incurred.