Sidmar N.V. v. Fednav International Ltd.
T-1260-96 / T-1378-96 / T-1379-96
Tremblay-Lamer J.
11/10/96
15 pp.
Motions for summary judgment declaring plaintiffs' action against defendant Fednav International Ltd. not barred by limitation and validly brought in Federal Court of Canada-Plaintiffs submitting brought action in Canada pursuant to bills of lading, clause 4, as amended by letters of extension-Bills of lading at issue involving carriage of goods from Belgium to United States-Clause 4, appearing on back of bills, providing any action arising out of goods carried under this Bill of Lading shall be brought in courts of Canada within one year after delivery of goods at port of discharge or date when goods should have been delivered there-In each of files in instant case, plaintiffs seeking extension of time for bringing action prior to expiration of initial one-year period in bills of lading, clause 4-Defendant Fednav granting plaintiffs extension of time for bringing action but specifying actions should be brought not in Federal Court of Canada but in United States, in Chicago or Detroit-Actions brought in Canada-Whether actions validly brought in Federal Court-Carriage of Goods by Water Act, s. 7(1) providing Hague-Visby Rules have force of law in Canada-Whether Rules applicable notwithstanding Paramount Clause appearing in bills of lading-More than one argument in favour of mandatory nature of Rules-HagueVisby Rules alone apply to each of shipments at issue-Rules, art. III(8) apply to letters of extension, which do not constitute contract separate and distinct from contract of carriage by sea-Bills of lading, clause 4 constituting contractual clause from which letters of extension directly derived-Letters of extension should be considered rider to initial contracts of carriage by sea and integral part of those contracts-To degree that plaintiffs required by letters of extension, clause 4 to pursue remedy in jurisdiction with lower limit of liability than one in force under Hague-Visby Rules, clause void and of no effect under art. III(8)-Plaintiffs' motions allowed-Carriage of Goods by Water Act, S.C. 1993, c. 21, s. 7-Hague-Visby Rules, S.C. 1993, c. 21, Sch. I, art. III(8).