Cause and (no) effect | Case by Case (Ep. 65)

This week Luke and Calum discuss the English Court of Appeal case of Unicredit Bank AG v Euronav NV [2023] EWCA Civ 471.

This is a fascinating case that gets into the heart of the status of paper bills of lading. It highlights the dangers for banks in relying on paper bills, where the charterparty allows for novation of the charterparty and delivery against a letter of indemnity from charterers. This sets up a convincing argument for the adoption of e-bills of lading for banks. We explore the limits of the principle that the bill of lading in the hands of a charterer/cargo interest is a mere receipt. There is also a practical dimension to this case. That relates to causation and whether the bank could make out that it would have insisted upon delivery upon presentation of an original bill of lading. The findings here are instructive. Banks should take note. It’s a critical decision, highlighting inherent risks in tacitly allowing delivery without presentation of original bills of lading.

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