Siemens v Schenker

The Federal Court of Australia considered an appeal by Siemens Australia against a decision of the New South Wales Supreme Court. The dispute arose from the damage to cargo during the carriage by air of goods from Singapore to Sydney. The key issue was the extent of liability of Schenker, the carrier, under the Warsaw Convention for the damage that occurred after the goods had been delivered to the bonded warehouse at Sydney Airport. The case also involved questions about the interpretation of the Warsaw Convention and the common law principles of liability for breach of contract, negligence, and bailment.

The court examined whether the damage to the cargo occurred "in an aerodrome" as defined by the Commonwealth law, which would limit the carrier's liability under the Warsaw Convention. The court considered whether the bonded warehouse was constructively within the airport boundary and thus part of the aerodrome. The court also analysed the construction of the house air waybill and whether the limitation of liability clause applied to the entire transportation process, including the period after the air carriage had been completed. The court held that the warehouse was outside the airport boundary and therefore not within the aerodrome for the purposes of the Warsaw Convention. The carrier's liability under the common law for breach of contract, negligence, and bailment was found to apply. The court determined that the undamaged portion of the cargo was not so dependent on the damaged portion as to be reduced to salvage value only. Consequently, the carrier was held liable for the full value of the damaged cargo.

The final orders of the court were that Siemens Australia was entitled to recover the full value of the damaged cargo from Schenker, and the matter of the currency in which the judgment should be entered was to be argued before the court.