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MARITIME LAW

Carriage of Goods

Nova Steel Ltd. v. Kapitonas Gudin (The)

T-958-95

2002 FCT 100, Lemieux J.

29/1/02

53 pp.

Central issue herein whether sea water caused damage to shipment of 240 hot-rolled steel coils weighing 4,510 metric tons purchased by Nova Steel Ltd. through J. B. Multi-National Trade Inc., Canadian steel broker, from Unibros Steel Co., international steel broker based in Cyprus for $1,668,700--Cargo manufactured in Russia, railed to Riga, Latvia, where off-loaded on dock in port--Loaded on board Kapitonas Gudin January 27, 1995, arrived in Montréal February 20/21, 1995--Parties agree applicable law found in Hague-Visby Rules--Action allowed--Plaintiff's evidence has not established, on preponderance of probabilities, coils tendered in good condition to Kapitonas Gudin for delivery--Nevertheless, plaintiffs established liability by demonstrating Kapitonas Gudin proximate cause of damage sustained--Evidence overwhelming pitting damage to coils occurred while in custody of Kapitonas Gudin due to exposure to sea water or sea salt during voyage--Allowances arrived at represented loss experienced by Nova Steel and proof of such loss--Salvage sale appropriate discovery mechanism to find highest and best use for damaged coils--No undue delay in realizing salvage--Hague-Visby Rules, being Schedule of Carriage of Goods by Water Act, R.S.C., 1985, c. C-27.

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