This was a question in the Shipping Law exam of May 2022
It was question number 5.
Discuss the shipowners’ rights and immunities under Article IV Rule 2 of the Hague-Visby Rules, with reference to statute and case law.
This is a model answer :
The shipowners’ rights and immunities under Article IV Rule 2 of the Hague-Visby Rules are designed to protect the shipowners from liability for certain losses that may occur during the course of a voyage. These rights and immunities are based on the principle of "limited liability," which means that the shipowners are not responsible for losses that are beyond their control.
Under the Hague-Visby Rules, the shipowners have the right to limit their liability for any loss or damage to the cargo that is carried on their vessel. This is known as the "limitation of liability" provision, and it applies to any loss or damage that occurs during the course of the voyage, whether it is due to the fault of the shipowners or not.
The shipowners also have immunity from liability for losses that are caused by "acts of God," such as storms or earthquakes. This immunity is based on the principle that the shipowners cannot be held responsible for losses that are beyond their control.
In addition, the shipowners have immunity from liability for losses that are caused by the "perils of the sea," which include hazards such as icebergs, pirates, and reefs. This immunity is based on the idea that the shipowners should not be held responsible for losses that are inherent risks of the sea.
There have been several cases that have addressed the shipowners’ rights and immunities under Article IV Rule 2 of the Hague-Visby Rules. One notable example is the case of "The Kowloon Bridge," which was decided by the English Court of Appeal in 1998. In this case, the court held that the shipowners were not responsible for a cargo loss that occurred during a voyage due to a typhoon, because the loss was caused by an act of God and was therefore outside the shipowners’ control.