Are shipowners entitled to recover part of the ransom paid to pirates as general average contribution from the holders of the bill of lading? That was the principal question before the English Court of Appeal in Herculito Maritime Limited v Gunvor International [2021] EWCA Civ 1828. The Court of Appeal answered the question in the affirmative, arriving at its conclusion by interpreting the terms of the bills of lading and the terms of the voyage charter to the extent they were germane to the contract of carriage evidenced by the bills.
In this Update, we provide a summary of the decision and its implications on the right to contribution for ransoms, as well as the issue of incorporation of provisions into bills of lading.
For more information, click here to read the full Legal Update.
