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IN THE HIGH COURT OF PEE 2
NEW SOUTH WALES REGISTRY.
CAM _& SONS PTY. LIMITED.
ve
SARGENT.
ORAL REASONS FOR JUDGMENT DELIVERED
BY DIXON J. AT SYDNEY ON 1st AUGUST,
1940.
CAM & SONS PTY. LTD. ve SARGENT
ORAL JUDGMENT DIXON J.
I agree. The proceedings are based upon an
award of the Commonwealth Court of Cénciliation and
Arbitration, but the award was not put in evidence. We
have not, therefore, the advantage of knowing its exact terms.
We are told, however, that in the view of the parties the
liability of the defendant depends upon the existence between
it and the plaintiff of the relationship of master and
servant. The course of business between the parties,
viewed from the outside, would appear to suggest that the
plaintiff was no more than the master of the ship ownegby
the defendant, occupying the ordinary positién of a master.
But an agreement is relied upon by the defendant in order to
show that xxak the true relationship was something else.
That agreement purports to demise the ship to a partnerskip
consisting of the master and fers; of the ship, all
apparently being treated as jointly suntributing constituting
the charterers or hirers of the ship and in that respect as
standing on an equality. The clause in which that is done
merely speaks of the partnership hiring the ship. There is
no hire specified and there are no words which expressly put
the possession of the ship in the partnership. The agreement
shows that the ship was to be loaded and discharged by the
CR eS ee a ree ne ee cra
owners and it may be doubted whether on the whole agreement,
notwithstanding the use of the word "hire", an intention
appears of completely depriving the owners of control and
placing the exclusive possession of the ship in the master
and crew forming the so-called partnership.
An examination of the provisions of the agreemmnt
discloses that in truth the remuneration of the crew is a
fixed sum of money per trip of voyage, a sum which cannot
increase, although conceivably it might dimimish, if the so-
called earnings of the partnership were insufficient to
provide it. The use of the ship is strictly limited to
voyages between two specified ports, Sydney and Swansea,
and it is limbted to the carriage of cargoes provided or
found by the ship-owner.
In a matter of this sort we are to look at the
substance of the transaction and not to treat a writ_ten
agreement , which is designed to disghise its real nature,
as succeeding in doing so if it amounts merely to a cloud
of words amd, without really altering the substantial
relations between the parties, describes them by elaborate
appropriate to
provisions expressed in terms sf/some other relation.
In my opinion this agreement, whilst it
contains many clauses and seeks to elaborate many ideas
which look towards a relationship of hire or demise, when
it is analysed does nothing more than provide for a lump
sum payment per trip to a number of people who are to conduct
the operations of the defendants in an ordinary normal manner.
operations which are carried out by means of the ship. All
moneys arising from the ship a_re to wome to the hands of
the owners, though under the description of "agents." They
are to provide the ship in all respects except food and they
are not accountable to the "partnership" who receive nothing
but a fixed sum per trip. No new member of the ship's
company is to be signed on without the approval of the owners
Nothing is said as ta the position of the original members
who leave the ship and in fact two did so and were replaced
by two new members whose status must have been that of
employee. Like all the others they signed articles opened
in the ordinary form. I think the learned judge was
perfectly right in treating the substance of the relation of
maséér and servant as subsisting between the parties to the
litigation before him.
In my opinion the appeal should be dismissed.