In The “Tai Prize” [2021] 2 Lloyd’s Rep 36, the Court of Appeal was faced with important issues concerning whether or not a voyage charterer was liable on the basis of an implied warranty or indemnity against inaccuracy in respect of a statement in a bill of lading that cargo was shipped “in apparent good order and condition”, in circumstances where the shippers ought to have noticed pre-shipment defects.
The Court had to consider the meaning of those words in a bill of lading, whether or not they would be inaccurate, and if so whether or not any such warranty or indemnity should be implied in particular given the regime set out in the Hague Rules. The decision of the Court was that there was no implied warranty or indemnity given, affirming the judgment of HHJ Pelling QC who had in turn allowed charterers’ appeal against an LMAA arbitrator. An application for permission to appeal was dismissed by the Supreme Court in April 2022, so the Court of Appeal’s judgment is (at least for now) the last word on the topic.