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Re The Pioneer Container [1994] 2 All ER 250

Country:
United Kingdom
By Oxbridge Law Team
General Propositions

  • Plaintiffs contracted the bailee to convey their goods and allowed them to sub-bail under any terms.

  • The bailee sub-bailed to Defendant with an exclusive jurisdiction to Taiwan.

  • When Defendant’s ship sunk, Plaintiff wanted to sue them in Hong Kong.

  • Privy Council ruled that the action in HK would be stayed since Plaintiff was bound by the terms of the sub-bailment.

General Propositions

  • A sub-bailee owes the same duty to take care as does a bailee for reward and when sub-bailee is in breach of this, the bailor can pursue him directly.

  • However, where sub-bailment agreement is agreed to by bailor, the terms of it can be invoked by the sub-bailee and bailor is bound by them.

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