Singapore Airlines Cargo Pte Limited v Principle International Pty Ltd

Singapore Airlines Cargo Pte Limited (the appellant) appealed to the Court of Appeal of New South Wales against a decision concerning the carriage of goods by air. The dispute arose from damage to a consignment of computer equipment transported from Singapore to Sydney. Principle International Pty Ltd (the respondent), the consignee and owner of the goods, had sued Singapore Airlines Cargo for damages. The primary judge had found in favour of the respondent, awarding damages of $43,296.

The Court of Appeal was required to determine the meaning of "event" in Article 18(1) of the Montreal Convention, specifically whether it encompassed damage caused by an inherent defect in the goods or their packaging, or if it required an external, unusual, or unexpected occurrence. The court also considered the meaning of "defective packing" under Article 18(2) and how liability should be apportioned under Article 20 of the Convention.

The Court of Appeal reasoned that the term "event" in Article 18(1) should be interpreted broadly to include any occurrence that causes damage, not limited to external or unexpected incidents. However, the court found that the damage in this case was primarily attributable to defective packing, which fell within the scope of Article 18(2). Applying Article 20, the court determined that the appellant was not liable for the full amount awarded by the primary judge, as the defective packing contributed to the loss.

Consequently, the Court of Appeal granted leave to appeal and cross-appeal, allowing both in part. The judgment in favour of the respondent was set aside and replaced with a judgment for a reduced amount of $14,432, plus interest. The respondent was ordered to pay the appellant's costs of the appeal.