Vita Food Products Inc. v. Unus Shipping Co. Ltd.

"Vita Food Products Inc. v. Unus Shipping Co. Ltd.", [1939] A.C. 277 (P.C.) is a leading conflict of laws decision of the Judicial Committee of the Privy Council on appeal from Nova Scotia. The case stands for the proposition that an express choice of law clause in a contract should be honoured as long as the agreement was "bona fide" and not against public policy. The case was a landmark point for contract law as it greatly expanded the ability of parties to choose the jurisdiction of their contacts.

Background

A shipment of herring was sent from Nova Scotia to Newfoundland, which was separate from Canada at the time. The bill of lading did not, however, conform to the "Newfoundland Carriage of Goods by Sea Act 1932" which required that it "contain an express statement that it is to have effect subject to the provisions of the Hague Rules as expressed in this Act." The bill contained a clause exempting the carrier from liability for the master's negligence. Under the Hague Rules such clauses were considered void. The bills stated that it was subject to the Canadian Water Carriage of Goods Act 1910 and stated that "This contract shall be governed by English law."

During the voyage, the ship sank off Nova Scotia due to negligence. The issue was, which law applied to the bills of lading.

Decision of the Council

Lord Wright, writing for the Council, held that the proper law of the contract was England and so the Newfoundland Act did not apply and the contract was upheld. He stated the test for determining the choice of law in such circumstances.

ee also

* List of Judicial Committee of the Privy Council cases

External links

* [http://www.singaporelaw.sg/rss/judg/10032.html case summary (see paras. 28-40)]