LAWS20062: International Commercial Law - European Spirits - Law Assignment Help

Assignment Task:

Task description:

This task will require students to apply law, rules and contractual clauses to a fictitious set of facts, and make a conclusion based on legal analysis. 

Problem and questions 

European Spirits is a retailer of alcoholic beverages which is based in Paris, France. There has been an increase in demand for Tasmanian whisky in France. European Spirits purchased 2,000 bottles of whisky under Cost, Insurance and Freight (CIF) terms from the Rebel distillery in Hobart, Tasmania. Rebel distillery loaded the 2,000 bottles of whisky into wooden boxes but they did not put the bottles in individual cylinder tubes. 

Rebal distillery entered into a contract of carriage with Speedy Couriers to deliver the whisky to European Spirits in France. The contract of carriage contains a limitation of liability clause which Speedy Couriers inserted, and the clause states that Speedy Couriers is not liable for any loss, damage or destruction to the goods during transit at sea. Under the contract of carriage, Speedy Couriers loaded the 2,000 bottles of wine onto its vessel in Hobart on 7 January 2020 and this was noted on a clean bill of lading. The vessel began its voyage to France to deliver the whisky to European Spirits. 

The 2,000 bottles of whisky were securely stored on the deck of the vessel and they were exposed to extreme heat over the course of the voyage. On its way to France, the vessel docked in mainland China. The vessel then continued on its journey to France but on 20 January 2020 it was held by officials in India for fears that its crew may have picked up a new virus called “H2-N26” whilst they were in mainland China. The vessel was quarantined for 3 weeks. The vessel was allowed to leave India on 9 February 2020. Due to fears over H2-N26, the vessel was delayed at each port it visited. Over the course of the journey, the vessel was battered by storms and waves. The bottles of whisky got wet from the sea spray and their corks were damaged from the pronged exposure to sea water. 

On 13 May 2020 the whisky arrived in France. The general manager of European Spirits, Jean Claude, found that sea water had seeped into half of the bottles of whisky, 50 bottles of whisky had suffered from ordinary leakage and 950 bottles had shattered. 

Jean Claude telephoned Rebel distillery. The distillery’s master distiller, John Rebel, told Jean Claude that Rebel distillery had entered into a contract of insurance with Sleep Easy Insurers to cover European Spirits against any risk of loss or damage to the wine during its carriage by sea. The contract of insurance incorporated the Institute Marine Cargo Clauses (A). 

European Spirits wants to know if it can recover against the carrier (Speedy Couriers) and whether it can claim under the insurance policy. Sleep Easy insurers wants to know whether, if it does decide to indemnity an insured for all or part of the losses, can it recover what it paid to the insured? 

Please answer ALL of the following questions: 

1. Who was responsible for the whisky during its transit by sea?

2. What are the duties of the carrier in storing the whisky on the vessel?

3. Are there any exceptions to liability and do any exceptions apply in this case?

4. Who can claim under the insurance policy and why?

5. Explain whether a claim can be made under the insurance policy. If you think a claim can be made under the insurance policy, explain why. If you do not think a claim can be made, explain why not.

6. If the insurer decides to indemnity the insured for all or part of the losses, can it recover what it paid to the insured? What is this right called? How does this right work? Who can the insurer potentially recover from and why? 

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