Fujitsu v Singapore Airlines: Warsaw Convention & Liability for Lost Cargo
Fujitsu Microelectronics (Malaysia) Sdn Bhd and others sued Singapore Airlines Ltd (SIA) and Malaysia Airline System (MAS) in the High Court of Singapore, regarding the loss of one of seven packages of integrated circuit dies during air carriage from Tokyo to Kuala Lumpur via Singapore. The plaintiffs claimed damages for breach of contract and/or duty as bailee against SIA, and for breach of duty as bailee, negligence, and/or conversion against MAS. Lim Teong Qwee JC gave judgment for the plaintiffs, finding that the Warsaw (Hague) Convention applied but that the defendants could not limit their liability due to recklessness and knowledge that damage would probably result.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Judgment for Plaintiffs
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
Consignment of integrated circuit dies lost during air carriage. Court held carrier and agent liable, denying limitation of liability under Warsaw Convention.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Fujitsu Microelectronics (Malaysia) Sdn Bhd | Plaintiff | Corporation | Judgment for Plaintiff | Won | Belinda Ang Fong, Gerald Yee |
| Singapore Airlines Ltd | Defendant | Corporation | Judgment against Defendant | Lost | Lok Vi Ming, Ng Hwee Chong |
| Malaysia Airline System | Defendant | Corporation | Judgment against Defendant | Lost | Lok Vi Ming, Ng Hwee Chong |
| Fujitsu Japan | Plaintiff | Corporation | Judgment for Plaintiff | Won | Belinda Ang Fong, Gerald Yee |
| Kintetsu Japan | Plaintiff | Corporation | Judgment for Plaintiff | Won | Belinda Ang Fong, Gerald Yee |
| Kintetsu Malaysia | Plaintiff | Corporation | Judgment for Plaintiff | Won | Belinda Ang Fong, Gerald Yee |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Lim Teong Qwee | Judicial Commissioner | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Belinda Ang Fong | Ang & Partners |
| Gerald Yee | Ang & Partners |
| Lok Vi Ming | Rodyk & Davidson |
| Ng Hwee Chong | Rodyk & Davidson |
4. Facts
- Seven packages of integrated circuit dies were shipped from Tokyo to Kuala Lumpur via Singapore.
- Singapore Airlines (SIA) carried the goods on flight 011 to Singapore and then on flight 100 to Kuala Lumpur.
- Malaysia Airline System (MAS) was SIA's ground handling agent at the Kuala Lumpur airport.
- MAS received all seven packages but only delivered six to Kintetsu Malaysia.
- A cargo/mail survey report was issued by MAS indicating a missing package.
- No special declaration of interest was made for the shipment.
- The practice at MAS was to leave packages found in the wrong location without taking immediate action unless the cargo was marked valuable or vulnerable.
5. Formal Citations
- Fujitsu Microelectronics (Malaysia) Sdn Bhd and Others v Singapore Airlines Ltd and Others, Suit 566/1998, [2000] SGHC 72
6. Timeline
| Date | Event |
|---|---|
| Flight 011 departed from Tokyo | |
| Flight 100 arrived at Kuala Lumpur | |
| MAS delivered six packages to Kintetsu Malaysia | |
| MAS issued a cargo/mail survey report | |
| Action commenced by writ | |
| Judgment delivered |
7. Legal Issues
- Limitation of Liability under Warsaw Convention
- Outcome: Court held that the defendants were not entitled to limit their liability under Article 22 due to recklessness and knowledge that damage would probably result.
- Category: Substantive
- Sub-Issues:
- Applicability of Article 22
- Effect of special declaration of interest
- Recklessness and knowledge of probable damage
- Liability of Carrier's Agent
- Outcome: Court held that the agent, MAS, was not entitled to limit its liability under Article 22 as it acted recklessly with knowledge that damage would probably result.
- Category: Substantive
- Sub-Issues:
- Scope of employment
- Intent to cause damage
- Recklessness and knowledge of probable damage
8. Remedies Sought
- Damages
9. Cause of Actions
- Breach of Contract
- Breach of Duty as Bailee
- Negligence
- Conversion
10. Practice Areas
- Commercial Litigation
11. Industries
- Aviation
- Logistics
- Semiconductors
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Swiss Bank Corp v Air Canada | Court of Appeal | Yes | [1987] 44 DLR (4d) 680 | Canada | Cited regarding intent to cause damage under Article 25 of the Warsaw Convention where employees of the carrier stole the package. |
| Goldman v Thai Airways International Ltd | Court of Appeal | Yes | [1983] 1 WLR 1186 | England and Wales | Cited for the interpretation of 'recklessly' and 'probable' in Article 25 of the Warsaw Convention. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Warsaw Convention 1929 as amended by Hague Protocol 1955 | International |
| Article 22 Warsaw Convention 1929 as amended by Hague Protocol 1955 | International |
| Article 25 Warsaw Convention 1929 as amended by Hague Protocol 1955 | International |
| Article 25A Warsaw Convention 1929 as amended by Hague Protocol 1955 | International |
| Carriage by Air Act | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Warsaw Convention
- Air Waybill
- Cargo/Mail Survey Report
- Ground Handling Agent
- Integrated Circuit Dies
- Special Declaration of Interest
- Recklessness
- Intent to Cause Damage
- Short Delivery
15.2 Keywords
- Warsaw Convention
- Singapore Airlines
- Malaysia Airline System
- Air Carriage
- Lost Cargo
- Limitation of Liability
- Recklessness
- Integrated Circuit Dies
16. Subjects
- Aviation Law
- International Trade
- Transportation Law
17. Areas of Law
- Carriage of Goods by Air
- Contract Law
- Agency Law
- Bailment