Feng Hang: COSCO Breached Contract by Issuing Second Bill of Lading, Causation Dispute
In Feng Hang, the High Court of Singapore addressed a claim by Tata Iron & Steel Co Ltd, MMTC Ltd, and MMTC Transnational Pte Ltd against COSCO Container Lines for breach of contract and negligence related to the issuance of a second bill of lading for chrome ore. The court, presided over by Justice Kan Ting Chiu, dismissed the plaintiffs' claim, finding that the defendant's actions were not the effective cause of the plaintiffs' loss, which stemmed from a dispute with the port authority over the quantity of ore.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Claim dismissed.
1.3 Case Type
Admiralty
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
COSCO Container Lines breached contract by issuing a second bill of lading. The court dismissed the claim, disputing causation of the plaintiffs' loss.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Tata Iron & Steel Co Ltd | Plaintiff | Corporation | Claim Dismissed | Lost | |
| MMTC Ltd | Plaintiff | Corporation | Claim Dismissed | Lost | |
| MMTC Transnational Pte Ltd | Plaintiff | Corporation | Claim Dismissed | Lost | |
| COSCO Container Lines | Defendant | Corporation | Claim Dismissed | Won |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Kan Ting Chiu | Judge | Yes |
4. Counsels
4. Facts
- The plaintiffs contracted with the defendant to ship chrome ore from India to China.
- The defendant issued a second set of bills of lading for the same cargo without the plaintiffs' consent.
- A Chinese claimant obtained a detention order preventing the release of the cargo.
- The detention order was later lifted.
- The port authority insisted on its own quantification of the cargo, which was unacceptable to the plaintiffs.
- The plaintiffs abandoned the cargo due to the port authority's condition and increasing storage costs.
5. Formal Citations
- Feng Hang and Others, Adm in Rem 496/1998, [2001] SGHC 378
6. Timeline
| Date | Event |
|---|---|
| Bill of lading issued by defendant's agents in India | |
| Ore discharged from Feng Hang at Huangpu | |
| Letter of credit expired without payment | |
| Second set of bills of lading issued by defendant's agents in Singapore | |
| Hunan corporation obtained detention order | |
| Detention order lifted | |
| Plaintiffs' solicitors set out agreement terms | |
| Defendant confirmed agreement terms | |
| Plaintiffs presented original bill of lading | |
| Plaintiffs received two delivery orders | |
| Interest penalty for port charges resolved | |
| Demand for letter of indemnity withdrawn | |
| Port authority insisted on quantity of remaining ore | |
| Plaintiffs abandoned cargo to port authority | |
| Guangdong High Court held in favor of Hunan corporation | |
| Plaintiffs obtained judgment in respect of the loss of 4,500mt | |
| Defendant made an offer to settle | |
| Decision date |
7. Legal Issues
- Breach of Contract
- Outcome: The defendant accepted that it breached its contract of carriage.
- Category: Substantive
- Negligence
- Outcome: The defendant accepted that it was negligent as a carrier.
- Category: Substantive
- Causation
- Outcome: The court found that the plaintiffs failed to prove that their loss was caused by the defendant's breach of contract and negligence.
- Category: Substantive
8. Remedies Sought
- Monetary Damages
9. Cause of Actions
- Breach of Contract
- Negligence
10. Practice Areas
- Commercial Litigation
- Breach of Contract
- Negligence
11. Industries
- Shipping
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| No cited cases | |||||
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| No applicable statutes | |
15. Key Terms and Keywords
15.1 Key Terms
- Bill of Lading
- Detention Order
- Contract of Carriage
- Chrome Ore
- Port Authority
- Causation
15.2 Keywords
- Admiralty
- Shipping
- Breach of Contract
- Negligence
- Causation
- Bill of Lading
- COSCO
- Feng Hang
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Admiralty and Maritime Law | 90 |
| Bills of Lading Act | 90 |
| Contract Law | 75 |
| Breach of Contract | 70 |
| Causation | 60 |
| Negligence | 60 |
| Damages | 50 |
| Misrepresentation | 40 |
| Commercial Disputes | 30 |
| Fraud and Deceit | 20 |
16. Subjects
- Admiralty
- Shipping
- Breach of Contract
- Negligence
- Causation