Philips Hong Kong Ltd v China Airlines Ltd: Warsaw Convention & Carrier Liability for Lost Goods

In Philips Hong Kong Ltd v China Airlines Ltd, the High Court of Singapore heard an appeal regarding the limitation of a carrier's liability under the Warsaw Convention as amended by the Hague Protocol. Philips Hong Kong Ltd, the plaintiff, sued China Airlines Ltd, the defendant, for the loss of 440 transceivers during shipment from Singapore to Hong Kong. The air waybill stated one package (pallet) weighing 154kg. The court allowed the appeal, determining that compensation should be calculated based on one package, not the nine cartons within the pallet.

1. Case Overview

1.1 Court

High Court

1.2 Outcome

Appeal allowed.

1.3 Case Type

Civil

1.4 Judgment Type

Grounds of Decision

1.5 Jurisdiction

Singapore

1.6 Description

Appeal regarding carrier's liability under the Warsaw Convention for lost transceivers. The court determined the compensation based on the number of packages.

1.7 Decision Date

5 December 2001

2. Parties and Outcomes

Party Name	Role	Type	Outcome	Outcome Type	Counsels
Philips Hong Kong Ltd	Plaintiff, Appellant	Corporation	Appeal Allowed	Won	Yap Yin Soon
China Airlines Ltd	Defendant, Respondent	Corporation	Appeal Dismissed	Lost	Robert Wee

3. Judges

Judge Name	Title	Delivered Judgment
Kan Ting Chiu	Judge	Yes

4. Counsels

Counsel Name	Organization
Yap Yin Soon	Allen & Gledhill
Robert Wee	Ho & Wee

4. Facts

Philips Singapore shipped 1,000 transceivers to Philips Hong Kong via China Airlines.
The air waybill stated '1 pallet' with a gross weight of 154kg.
The pallet arrived in Hong Kong damaged, with 440 transceivers missing.
The missing transceivers were valued at US$74,360.
The parties disputed whether compensation should be based on one package (pallet) or nine packages (cartons).

5. Formal Citations

Philips Hong Kong Ltd v China Airlines Ltd, MC Suit 21209/1999, [2001] SGHC 362

6. Timeline

Date	Event
1999-01-01	Lawsuit filed (MC Suit 21209/1999)
2001-12-06	Judgment issued

7. Legal Issues

Limitation of Carrier's Liability
- Outcome: The court held that the consignment should be regarded as one package (the pallet), not nine packages (the cartons within the pallet), for the purpose of limiting the carrier's liability under Article 22(2) of the Warsaw Convention.
- Category: Substantive
- Sub-Issues:
  - Computation of number of packages lost or damaged

8. Remedies Sought

Monetary Damages

9. Cause of Actions

Breach of Contract
Negligence

10. Practice Areas

Commercial Litigation
Aviation Law

11. Industries

Aviation
Logistics
Electronics

12. Cited Cases

Case Name	Court	Affirmed	Citation	Jurisdiction	Significance
The River Gurara	N/A	Yes	[1997] 1 Lloyd`s Rep 225	N/A	Cited for its comprehensive review of issues related to the Hague Rules in connection with carriage by sea, relevant to the interpretation of 'package' in the context of the Warsaw Convention.
Yusen Air & Sea Service (S) v Changi International Airport Services	Court of Appeal	Yes	[1999] 4 SLR 135	Singapore	Cited to support the argument that the weight on a waybill can be rebutted with proper evidence.
Bland v British Airways Board	N/A	Yes	[1981] 1 Lloyd`s Rep 289	N/A	Cited for Lord Denning's discussion on the application of Article 22(2) of the Warsaw Convention regarding baggage loss.

13. Applicable Rules

Rule Name
No applicable rules

14. Applicable Statutes

Statute Name	Jurisdiction
Warsaw Convention as amended by the Hague Protocol art 22(2)	N/A
Carriage by Air Act (Cap 32A, 1989 Ed)	Singapore
Carriage by Air (Singapore Currency Equivalents) Order (Cap 32A, O 2, 1990 Ed)	Singapore

15. Key Terms and Keywords

15.1 Key Terms

Warsaw Convention
Hague Protocol
Air waybill
Consignment
Package
Limitation of liability
Transceivers
Pallet

15.2 Keywords

Warsaw Convention
China Airlines
Philips
Air Carriage
Liability
Lost Goods

16. Subjects

Transportation Law
International Law
Commercial Law

17. Areas of Law

Carriage of Goods by Air
International Treaties and Conventions
Limitation of Liability
Contract Law