Keane v Australian Steamships Pty Ltd

This case involved an appeal to the High Court of Australia concerning a dispute over lost goods. The appellant, Thomas Joseph Keane, trading as Zylo Manufacturers, had shipped a package of goods from Melbourne to Sydney on the respondent's vessel, Australian Steamships Pty Ltd. The goods were lost after being discharged from the ship in Sydney, and the appellant sued for damages. The core of the dispute lay in the interpretation of the bill of lading, specifically clauses relating to the cessation of the shipowner's liability upon discharge of the goods and the practice of delivery at the port.

The legal issues before the High Court were whether the respondent's liability ceased as provided by the bill of lading, or if the established practice of storing goods and delivering them from a store, rather than directly from the ship's tackles, created a new contractual obligation or varied the terms of the bill of lading. The court was required to determine if the respondent, by taking possession of the goods and storing them, assumed a new role as a bailee for reward, thereby retaining liability for their loss, or if the contractual provisions for the cessation of liability remained paramount.

A majority of the High Court, comprising Isaacs, Rich, and Starke JJ., held that the appellant was not entitled to succeed. Their reasoning centred on the interpretation of the bill of lading, particularly the clause stating that "all liability of the Company to cease as soon as the goods are free from the ship's tackles." The majority considered this clause to be a clear exemption from liability once the goods were discharged, irrespective of whether actual delivery to the consignee had occurred. They found that the established practice of storing goods did not, in itself, create a new contract of bailment that superseded the express terms of the bill of lading, and that the goods were stored at the owner's sole risk and expense as permitted by the contract. This decision affirmed the judgment of the Full Court of the Supreme Court of Victoria.