Singapore Airlines v Fujitsu: Warsaw Convention & Liability for Lost Cargo
Singapore Airlines Ltd (SIA) and Malaysian Airlines System (MAS) appealed against the High Court's decision that they could not limit liability under the Warsaw Convention for a lost package of integrated circuit dies. Fujitsu Microelectronics (Malaysia) Sdn Bhd, the respondent, claimed for the loss of one of seven packages shipped from Tokyo to Kuala Lumpur. The Court of Appeal allowed the appeal, finding that the respondents had not proven that MAS, acting as SIA's agent, acted recklessly with knowledge that damage would probably result, as required by Article 25A(3) of the amended Warsaw Convention.
1. Case Overview
1.1 Court
Court of Appeal1.2 Outcome
Appeal allowed.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Singapore Airlines appeals a decision denying liability limits under the Warsaw Convention for a lost package of integrated circuits. Appeal allowed.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Singapore Airlines Ltd | Appellant | Corporation | Appeal allowed | Won | P Selvadurai, Lok Vi Ming, Lawrence Teh |
| Fujitsu Microelectronics (Malaysia) Sdn Bhd | Respondent | Corporation | Appeal dismissed | Lost | Belinda Ang Fong, Gerald Yee |
| Malaysian Airlines System Bhd | Appellant | Corporation | Appeal allowed | Won | P Selvadurai, Lok Vi Ming, Lawrence Teh |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Chao Hick Tin | Justice of the Court of Appeal | Yes |
| L P Thean | Justice of the Court of Appeal | No |
| Yong Pung How | Chief Justice | No |
4. Counsels
| Counsel Name | Organization |
|---|---|
| P Selvadurai | Rodyk & Davidson |
| Lok Vi Ming | Rodyk & Davidson |
| Lawrence Teh | Rodyk & Davidson |
| Belinda Ang Fong | Ang & Partners |
| Gerald Yee | Ang & Partners |
4. Facts
- Seven packages of integrated circuit dies were shipped from Tokyo to Kuala Lumpur via Singapore.
- Singapore Airlines (SIA) was the carrier, and Malaysian Airlines System (MAS) was the ground handling agent in Kuala Lumpur.
- One of the seven packages was lost after arriving at the MAS Cargo Centre.
- The respondents claimed for the loss, but SIA and MAS sought to limit their liability under the Warsaw Convention.
- The trial judge ruled that MAS acted recklessly and with knowledge that damage would probably result, thus losing the right to limit liability.
- The computer system at the Cargo Centre maintained by MAS showed that as at 10.47am on the same day, the seven packages, after being unloaded from the aircraft, were placed in bin No H031/C-6.
- About two hours later, a cargo clerk at the warehouse, Mr Nordin bin Abdullah (`Nordin`), found a package bearing airway bill AWB 8994 at bin F095/B-2.
5. Formal Citations
- Singapore Airlines Ltd and Another v Fujitsu Microelectronics (Malaysia) Sdn Bhd, CA 21/ 2000, [2000] SGCA 66
6. Timeline
| Date | Event |
|---|---|
| Seven packages of flash memory integrated circuit dies were shipped from Tokyo to Kuala Lumpur. | |
| Consignment arrived at Kuala Lumpur and placed into the custody of the Malaysian Airlines System Bhd`s Cargo Centre. | |
| Only six packages could be found and delivered to the consignee. | |
| The respondents made a written request regarding the loss. | |
| The respondents sent a reminder regarding the loss. | |
| Decision Date |
7. Legal Issues
- Limitation of Liability under Warsaw Convention
- Outcome: The court held that the appellants were entitled to the limitation of liability under Article 22 of the amended Warsaw Convention because the respondents failed to prove recklessness and knowledge of probable damage.
- Category: Substantive
- Sub-Issues:
- Recklessness
- Knowledge of probable damage
8. Remedies Sought
- Monetary Damages
9. Cause of Actions
- Breach of Contract
- Breach of Duty as Carrier
- Breach of Common Law Duty of Care
- Bailment
10. Practice Areas
- Commercial Litigation
- Aviation Law
11. Industries
- Aviation
- Semiconductors
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Singapore Airlines Ltd v Fujitsu Microelectronics (Malaysia) Sdn Bhd | High Court | Yes | [2000] 3 SLR 69 | Singapore | The High Court ruled that the appellants were not entitled to the protection of the limitation of liability provided in the amended Convention, which led to the present appeal. |
| Goldman v Thai Airways International Ltd | English Court of Appeal | Yes | [1983] 3 All ER 693 | England and Wales | Cited as a leading case on the interpretation of recklessness and knowledge under Article 25 of the Warsaw Convention. |
| Goldman v Thai Airways International Ltd | English Court of Appeal | Yes | [1983] 1 WLR 1186 | England and Wales | Cited as a leading case on the interpretation of recklessness and knowledge under Article 25 of the Warsaw Convention. |
| SS Pharmaceutical Co Ltd v Qantas Airways Ltd | Court of Appeal in New South Wales | Yes | [1991] 1 Lloyd`s Rep 288 | Australia | Cited for the principle that proof of actual knowledge on the part of the carrier, its servants or agents, is essential under Article 25. |
| Meridian Global Funds Management Asia Ltd v Securities Commission | N/A | Yes | [1995] 2 AC 500 | N/A | Cited for the principle of how to determine whose act or knowledge counts as the act of the company. |
| Caswell v Powell Duffryn Associated Collieries Ltd | N/A | Yes | [1940] AC 152 | N/A | Cited for the principle that the claimant must prove such knowledge or prove objective facts upon which the court could reasonably infer that the carrier or its agent knew that damage would probably be caused. |
| Seagate Technology International v Changi International Airport Services Pte Ltd | High Court | Yes | [1997] 3 SLR 1 | Singapore | Discusses the liabilities of a carrier and its agents under the amended convention. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Carriage by Air Act (Cap 32A) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Warsaw Convention
- Limitation of Liability
- Recklessness
- Actual Knowledge
- Cargo
- Air Waybill
- Consignment
- Carrier
- Agent
- Bailment
15.2 Keywords
- Warsaw Convention
- Singapore Airlines
- Fujitsu
- Liability
- Cargo Loss
- Air Carriage
- Recklessness
- Actual Knowledge
16. Subjects
- Aviation
- Contract
- Agency
17. Areas of Law
- Carriage of Goods by Air
- Contract Law
- Agency Law