China Airlines v Philips Hong Kong: Warsaw Convention, Article 22 & Liability Limits for Damaged Air Cargo
In China Airlines Limited v Philips Hong Kong Limited, the High Court of Singapore addressed the proper construction of Article 22 of the Warsaw Convention, as amended by the Hague Protocol, concerning the limit of liability for damaged or lost cargo during international air carriage. Philips Hong Kong Ltd shipped goods via China Airlines, and some items were lost. The dispute centered on whether the liability limit should be computed based on the entire package or the sub-packages within. The High Court dismissed the appeal, ruling that the computation should be based on the package as a whole.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Appeal dismissed with costs.
1.3 Case Type
Civil
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
China Airlines Limited v Philips Hong Kong Limited addresses the computation of liability limits under Article 22 of the Warsaw Convention.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| China Airlines Limited | Appellant | Corporation | Appeal dismissed | Lost | Lok Vi Ming, Ng Hwee Chong, Foong Chi Yuen, Joanna |
| Philips Hong Kong Limited | Respondent | Corporation | Appeal Allowed | Won | Yap Yin Soon, Kok Tsung-Hao |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Chao Hick Tin | Judge of Appeal | Yes |
| Tan Lee Meng | Judge | No |
| Yong Pung How | Chief Justice | No |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Lok Vi Ming | Rodyk & Davidson |
| Ng Hwee Chong | Rodyk & Davidson |
| Foong Chi Yuen, Joanna | Rodyk & Davidson |
| Yap Yin Soon | Allen & Gledhill |
| Kok Tsung-Hao | Allen & Gledhill |
4. Facts
- Philips Hong Kong Ltd shipped 1000 transceivers from Singapore to Hong Kong via China Airlines.
- The transceivers were packed in nine cartons, which were then packed as one pallet weighing 154 kg.
- The air waybill indicated one piece with a gross weight of 154 kg, without mentioning the nine cartons.
- Upon arrival in Hong Kong, four cartons containing 440 transceivers were missing.
- The total value of the missing transceivers was US$74,360.
- The dispute arose over how to compute the limit of liability under Article 22(2)(b) of the amended Warsaw Convention.
5. Formal Citations
- China Airlines Limited v Philips Hong Kong Limited, CA 600119/2001, [2002] SGHC 131
6. Timeline
| Date | Event |
|---|---|
| Decision Date |
7. Legal Issues
- Limitation of Liability
- Outcome: The court held that the computation of the limit of liability should be based on the package as a whole, not sub-packages.
- Category: Substantive
- Sub-Issues:
- Computation of liability limit
- Definition of 'package'
- Related Cases:
- [1998] 1 Lloyd’s Rep 225
- Interpretation of Warsaw Convention
- Outcome: The court applied both literal and purposive interpretations to Article 22(2)(b) of the Warsaw Convention.
- Category: Substantive
- Sub-Issues:
- Purposive interpretation
- Literal interpretation
- Related Cases:
- [1999] 4 SLR 135
8. Remedies Sought
- Monetary Compensation
9. Cause of Actions
- Breach of Contract
- Loss of Goods
10. Practice Areas
- Commercial Litigation
11. Industries
- Aviation
- Logistics
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| The "River Gurara" | N/A | Yes | [1998] 1 Lloyd’s Rep 225 | N/A | Discusses the application of the Hague Rules and the definition of 'package' in the context of containerized cargo. |
| The Kulmerland | N/A | Yes | [1973] 2 Lloyd’s Rep 428 | N/A | Cited in the context of the 'functional economics test' for determining what constitutes a 'package' under the Hague Rules. |
| Hayes Leger Associates Inc v M.V. Oriental Knights | N/A | Yes | 765 F 2d 1076 (1985) | N/A | Discusses how the number of packages listed on a bill of lading affects the limit of liability under the Hague Rules. |
| Standard Electrica S.A. v Hamburg Sudamerikanische Dampfschiffahrts-Gesellschaft | N/A | Yes | [1967] 2 Lloyd’s Rep 193 | N/A | Deals with whether pallets or cartons constitute 'packages' for limitation purposes under the Hague Rules. |
| Yusen Air & Sea Services (S) Pte Ltd v Changi International Airport Services Pte Ltd | Court of Appeal | Yes | [1999] 4 SLR 135 | Singapore | Cited for the principle that the Warsaw Convention should be given a purposive interpretation to protect air carriers from claims beyond prescribed limits. |
| Singapore Airlines Ltd v Fujitsu Microelectronics (Malaysia) Sdn Bhd | N/A | Yes | [2002] 1 SLR 241 | Singapore | Cited to support the principle that the Warsaw Convention seeks to protect the carrier by setting limits as to its liability. |
| Data Card Corporation v Air Express International Corporation | N/A | Yes | [1983] 2 Lloyd’s Rep 81 | N/A | Deals with the calculation of damage limits based on the weight of one package versus the total consignment under the original Warsaw Convention. |
13. Applicable Rules
| Rule Name |
|---|
| No applicable rules |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Article 22 of the Warsaw Convention | International |
| Article 11(2) of the amended Convention | International |
15. Key Terms and Keywords
15.1 Key Terms
- Warsaw Convention
- Hague Protocol
- Air waybill
- Package
- Sub-package
- Limit of liability
- Consignor
- Consignee
- Air cargo
15.2 Keywords
- Warsaw Convention
- Air Cargo
- Liability
- Package
- China Airlines
- Philips
16. Subjects
- Aviation
- Shipping
- International Trade
- Liability
17. Areas of Law
- Aviation Law
- Contract Law
- International Law
- Transportation Law