The liability of a carrier’s agent under Maltese law with a particular focus on cargo claims

Abstract

When a shipper of goods wishes to transport cargo by sea, it is very common that rather than liaise with the actual carrier, all the necessary arrangements are made through the carrier’s local agent. Indeed, it is established practice in Malta that each vessel entering its ports must have a local agent representing her. The introduction of this key player into commercial contracts, acting solely on behalf of his principal, has necessarily created an alternative target for an injured third party seeking damages in contentious cargo claims. Although generally, the law of agency completely protects the agent from liability insofar as the latter acts within the authority granted by his principal, Maltese judgements have allowed for the ship agent to be sued, even when he may not be legitimately-suited. The lack of an Act which caters for ship agency has arguably led to situation whereby certain judgements are inconsistent and at times contradictory in the understanding of the nature of the ship agent. This thesis will seek to firstly discuss the current legal framework in place regulating the law of agency and that of mandate, together with the few references to ship agency found in the Ports and Shipping Act. Maltese case law will be discussed in detail, showing how judges have interpreted the existing laws in order to determine the nature of the ship agent. The final chapter will include the ways in which ship agents are protecting themselves from liability, seeing that most injured third parties in Malta are directly suing the agent and not the principal. The conclusion will put forward a few suggestions that could help create more certainty and uniformity vis-à-vis the position of the ship agent under Maltese law: providing a clear and adequate delineation of his responsibility vis-à-vis his principal as well as third parties.