Pacific Carriers Limited v BNP Paribas [2004] HCA 35

HIGH COURT OF AUSTRALIA

GLEESON CJ,

GUMMOW, HAYNE, CALLINAN AND HEYDON JJ

PACIFIC CARRIERS LIMITED APPELLANT

AND

BNP PARIBAS RESPONDENT

Pacific Carriers Limited v BNP Paribas [2004] HCA 35

5 August 2004

S585/2003

ORDER

1. Appeal allowed with costs. 2. Set aside the orders of the New South Wales Court of Appeal made on 29 November 2002. 3. Remit the matter to the New South Wales Court of Appeal to deal with outstanding issues in conformity with the reasoning of this Court and to make orders disposing of the costs of the appeal to the Court of Appeal.

On appeal from Supreme Court of New South Wales

Representation:

D F Jackson QC with A W Street SC and G J Nell for the appellant (instructed by Norton White)

B W Rayment QC with I E Davidson for the respondent (instructed by Corrs Chambers Westgarth)

Notice: This copy of the Court's Reasons for Judgment is subject to formal revision prior to publication in the Commonwealth Law Reports.

CATCHWORDS

Pacific Carriers Limited v BNP Paribas

Contract – Carriage of goods – Carriage by sea – Delivery of goods without surrendering bills of lading – Indemnity to carrier.

Contract – Construction and interpretation – Relevant principles – Objective interpretation of commercial documents – Letters of indemnity executed by trader in favour of carrier relating to unloading cargo without bills of lading – Where documents also signed by officer of the respondent bank – Whether letters of indemnity purported to bind the respondent as an indemnifying party.

Contract – Agency – Ostensible authority – Documents of the kind commonly relied upon and intended to be relied upon by third parties – Whether the assumption made by the appellant that the respondent was party to the letters of indemnity was induced or assisted by the respondent's conduct in such a way that it would be unjust to permit the respondent to depart from the assumption.