UK Law and Practice Contributed by: Quentin Bargate and Elliot Bishop, Bargate Murray
using the vessel’s gross tonnage and the SDR-based formula, with interest (where ordered) from the rel- evant date. The court will usually require security to be provided in a form acceptable to it, which may be by payment into court or by the provision of an acceptable guarantee/undertaking (the acceptability of which will depend on the circumstances and the parties’ positions). 3.6 Seafarers’ Safety and Owners’ Liability The UK has ratified the Maritime Labour Convention 2006 (MLC), and it is implemented through domes - tic regulations enforced by the MCA. Domestic law on seafarers’ rights and safety includes the MLC implementing regulations, the Merchant Shipping Act 1995 and extensive secondary legislation on maritime health and safety, hours of work and rest, training and certification. General employment and safety legislation may also apply depending on the individual’s status and the ship’s operations, including the Employment Rights Act 1996 (as modified for seafarers), the Equality Act 2010 and the Health and Safety at Work etc. Act 1974 (as applied offshore/at sea through specific maritime regulations). The Hague-Visby Rules apply in the UK by virtue of the Carriage of Goods by Sea Act 1971 (COGSA 1971). The UK is not a party to the Hamburg Rules or the Rotterdam Rules. Domestic carriage and bill of lad - ing issues are also governed by English common law and (in relation to contractual rights under bills, sea waybills and delivery orders) the Carriage of Goods by Sea Act 1992 (COGSA 1992). Charterparty disputes are determined by the appli - cable contract law principles (and any contractual incorporation of the Hague-Visby Rules), with London 4. Cargo Claims 4.1 Bills of Lading
holder” of the bill of lading (and, in the case of a sea waybill, the person entitled to delivery) acquires the carrier’s contractual obligations and the correspond - ing rights of suit, provided the statutory conditions are met. COGSA 1992 effects a statutory transfer of rights of suit (rather than a conventional assignment), but English law also recognises assignment of contrac - tual rights in principle. In practice, however, COGSA 1992 is the primary mechanism relied on for transfer of rights and liabilities under bills of lading in the ordinary course of trade. 4.3 Ship-Owners’ Liability and Limitation of Liability for Cargo Damages Where the Hague-Visby Rules apply, the carrier’s lia - bility is subject to the standard defences and limits in the Rules, including the package/kilogram limitation (currently 666.67 SDR per package or unit, or 2 SDR per kilogram of gross weight of the goods lost or dam - aged, whichever is higher), subject to any declaration of value and subject to the loss of limitation in cases of intent/recklessness within the Rules’ meaning. The position can differ depending on whether the shipowner is the contractual carrier or the actual car - rier. The contractual carrier is liable on the bill of lading contract; the actual carrier (including the shipowner where it is not the contractual carrier) may be liable in tort/bailment, but is commonly protected by Hima - laya clauses and contractual defences/limits extended to servants, agents and subcontractors. In addition, shipowners and other limiters may seek to rely on global limitation under the LLMC regime, where appli - cable, as a further cap on overall exposure. 4.4 Misdeclaration of Cargo English law generally permits a carrier to pursue the shipper for misdeclaration or misdescription of car - go, depending on the legal basis and facts. Under the Hague-Visby Rules, the shipper gives a statutory guarantee as to the accuracy of marks, number, quan - tity and weight as furnished by it (Article III rule 5), and the shipper may be liable to indemnify the carrier for losses arising from inaccuracy. There are also spe - cific provisions concerning dangerous goods (Article IV rule 6) and corresponding common law rights.
arbitration remaining a common forum. 4.2 Title to Sue on a Bill of Lading
Title to sue under a bill of lading is principally deter - mined by COGSA 1992. In broad terms, the “lawful
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