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The Bill of Lading in South African Law

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The Bill of Lading in South African Law Flo THE BILL OF LADING IN SOUTH AFRICAN LAW by SAREL FRANCOIS DU TOIT THESIS submitted in partial fulfilment of the requirements for the degree DOCTOR LEGUM in the FACULTY OF LAW at the RAND AFRIKAANS UNIVERSITY PROMOTER: JUDGE FR MALAN SEPTEMBER 2000 Aan my ouers I hereby declare that the thesis submitted for the LL.D. degree to the Rand Afrikaans University, apart from the help recognised, is my own work and has not been formerly submitted to another university for a degree A ) V-c- SF du Toit Preface iV Preface I wish to express my appreciation to Judge Malan, my former professor, for his support, advice and encouragement, as well as his friendship, during the completion of this thesis. He was willing to be involved in this project until long after exchanging his Chair for the Bench. I also want to thank the National Research Foundation for a bursary that enabled me to do research at the Institute of Advanced Legal Studies in London, and at the Max-Planck-Institut fur auslandisches and internationales Privatrecht in Hamburg. To the Rand Afrikaans University, the Faculty of Law and the Dean, I express my appreciation for support, financial and otherwise, during my studies. Johannesburg September 2000 The financial assistance of the National Research Foundation towards this research is hereby acknowledged. Opinions expressed in this thesis and conclusions arrived at, are those of the author and are not necessarily to be attributed to the National Research Foundation. Abstract V Abstract The bill of lading in South African law is the theme of this study. In the first part of the thesis, the bill of lading in its traditional paper form is examined. The aim of the first part of the study is to reconcile the bill of lading that is based on English law with the principles of South African law, especially regarding concepts such as possession and ownership. A plea is made for the application of South African law to bills of lading rather than English law exclusively. Even though English law undoubtedly forms the basis of the law governing bills of lading, such law should be applied in a way that is consistent with the general principles of South African law. The functions of the bill of lading are considered in detail, particularly the bill of lading as a document of title. A submission is made of five characteristics of a document of title. The conclusion is that the bill of lading, though based on English law concepts, can be integrated into South African law without difficulty. The subsequent examination of the transfer of contractual rights and the imposition of liabilities will show that there is a dire need for new legislation in South Africa to replace an English Act of 1855. The current proposals for such legislation are, however, in need of extensive revision. The fact that the traditional bill of lading only arrives at the port of destination after the goods, leads to a multitude of problems. The carrier may only deliver the goods in exchange for a bill of lading. Letters of indemnity are therefore used to protect the carrier that delivers the goods without receiving a bill of lading. Such indemnities will be enforceable in South African law if the carrier has no reason to suspect that the receiver of the goods is not entitled to delivery. The consideration of the nature and functions of the traditional bill of lading, enables the study to progress to an examination of an electronic bill of lading. The use of an electronic bill of lading means that many problems facing the traditional bill of lading can be avoided. The continuing evolution of the bill of lading will be examined against the background of electronic commerce. Writing and signature requirements should not inhibit the development of an electronic bill of lading. The difficulty facing the dematerialisation of the bill of lading is providing for negotiability in an electronic environment, and ensuring that an electronic bill of lading is the equivalent of an original and unique paper bill of lading. It is possible to create an Abstract Vi electronic bill of lading that performs all the functions of a traditional bill of lading, and there are examples of the use of such electronic bills of lading in practice. Delivery of the goods can take place by way of attomment rather than the usual symbolical delivery following the transfer of a paper bill of lading. It is submitted that there is currently no need for legislative intervention to provide for electronic bills of lading in South Africa. Opsomming Vii Opsomming Die onderwerp van hierdie studie is die konnossement in die Suid-Afrikaanse reg. In die eerste deel van die proefskrif word die tradisionele konnossement op papier ondersoek. Die doel van die eerste deel van die studie is om die konnossement wat gebaseer is op Engelse reg te versoen met die beginsels van die Suid-Afrikaanse reg, veral met betrekking tot begrippe soos besit en eiendomsreg. Die toepassing van Suid-Afrikaanse reg op die konnossement word bepleit eerder as die eensydige toepassing van die Engelse reg. Alhoewel die Engelse reg sonder twyfel die basis vorm van die reg wat konnossemente beheers, moet sodanige reg toegepas word op 'n Wyse wat versoenbaar is met die algemene beginsels van die Suid-Afrikaanse reg. Die funksies van die konnossement word deeglik ondersoek, veral die konnossement as 'n titelbewys. 'n Voorstel word aan die hand gedoen waarin vyf kenmerke van 'n titelbewys gedentifiseer word. Die gevolgtrekking is dat alhoewel die konnossement gebaseer is op die Engelse reg, dit met gemak by die Suid-Afrikaanse reg kan inskakel. Die daaropvolgende ondersoek na die oordrag van kontraktuele regte en die oplegging van verpligtinge sal aandui dat daar 'n dringende behoefte is aan nuwe wetgewing in Suid-Afrika om 'n ou Engelse wet van 1855 te vervang. Die huidige voorstelle vir nuwe wetgewing moet egter nog grondig hersien word. Die feit dat die tradisionele konnossement dikwels eers by die bestemmmingshawe aankom na die goedere, lei tot 'n magdom probleme. Die goedere mag slegs gelewer word in ruil vir die konnossement. Praktyke soos die gebruik van vrywarings is daarom nodig om die vervoerder te beskerm wanneer die goedere gelewer word sonder om 'n konnossement te ontvang. Sulke vrywarin2s is afdwingbaar in die Suid-Afrikaanse reg solank die vervoerder nie rede het om te glo dat die ontvanger nie geregtig is op die lewering van die goerdere nie. Die ondersoek na die aard en funksies van die tradisionele konnossement, maak die daaropvolgende ondersoek na 'n elektroniese konnossement moontlik. Die gebruik van 'n elektroniese konnossement sal lei tot die vermyding van baie probleme wat 'n tradisionale konnossement tans in die gesig staar. Hierdie verdere evolusie van die konnossement sal ondersoek word teen die agtergrond van elektroniese handel. Die ontwikkeling van 'n elektroniese konnossement behoort nie verhinder te word deur vereistes van skrif en Opsomming Viii handtekening nie. Die grootste struikelblok wat oorkom moet word indien die dematerialisasie van die konnossement sou plaasvind, is om voorsiening te maak vir verhandelbaarheid of oordraagbaarheid in 'n elektroniese milieu. Verder moet verseker word dat 'n elektroniese konnossement gelykstaande is aan 'n oorspronklike en unieke konnossement op papier. Dit is moontlik om 'n elektroniese konnossement te skep wat al die funksies van 'n tradisionele konnossement kan vervul, en daar is voorbeelde van die gebruik van elektroniese konnossemente in die praktyk. Lewering van die goedere kan plaasvind deur middel van attornment eerder as die normale simboliese lewering wat gebruik word in die geval van 'n konnossement op papier. Daar word aan die hand gedoen dat daar tans geen behoefte bestaan aan wetgewing wat spesifiek voorsiening maak vir elektroniese konnossemente nie. Table of Contents iX Table of Contents Preface iv Abstract v Opsomming vii Chapter 1: Introduction 1 1.1 Introductory Remarks 1 1.2 Aim and Scope of Study 2 1.3 Some Remarks about Terminology 3 1.4 Overview of Study 5 Chapter 2: The History and Evolution of the Bill of Lading 12 2.1 Introduction 12 2.2 Earliest Origins 13 2.3 Birthplace in Italy 16 2.4 The Book of Lading 18 2.5 The Bill of Lading 21 2.6 Some Further Developments in Italy 22 2.7 Northern Europe 24 2.7.1 France 24 2.7.2 The Netherlands 25 2.8 English Law: The Admiralty Court 27 2.9 Three Bills of Lading 30 2.10 Advantages of a Document of Title 31 2.11 Common Law Courts 32 2.12 Conclusion 33 Chapter 3: Jurisdiction and Applicable Law 34 3.1 Introduction 34 3.2 Brief Historical Perspective 34 3.3 Nature of Admiralty Law 36 3.4 Admiralty Jurisdiction of the High Court 37 3.5 Section 6: Applicable Law 38 3.6 Extent of English Law to be Applied 42 3.7 Determination if Jurisdiction Existed at the Commencement of the Act 44 3.8 Bills of Lading 48 Table of Contents X 3.9 English, Roman-Dutch or South African Law? 50 3.10 Electronic Bills of Lading 52 3.11 Conclusion 53 Chapter 4: The Nature of the Bill of Lading 55 4.1 Introduction 55 4.2 Wertpapier: German Concepts 56 4.3 Commercial Paper in South African Law 62 4.4 Cowen and Gering's Criticism 64 4.5 Conclusion: Commercial Paper 67 4.6 The Relevance of Commercial Paper in the Twenty-First Century 67 4.7 Nature: Negotiable Instrument? 68 4.8 Should the Bill of Lading be a Negotiable Instrument? 73 Chapter 5: The Functions of the Bill of Lading 75 5.1 Introduction 75 5.2 Evidence of Contract of Carriage 76 5.2.1 Introduction 76 5.2.2 Bill of Lading
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