American Trading & Prof. Corp. v. Shell Int’l Marine, Ltd.

United States Court of Appeals, Second Circuit, 1972.

453 F.2d 939.

Dawson, pp. 669-672

 

Facts: The plaintiff and defendant contracted to ship some oil from Texas to India.  They both knew there might be war in the Middle East soon and the Suez Canal might be closed.  The plaintiff’s ship made it into the Mediterranean when the Suez Canal did close.  Then the plaintiff’s ship had to turn around and go all the way around Africa by way of the Cape of Good Hope to make the delivery.  The plaintiff sued for extra compensation based on the extra length of the trip.  The defendant won at trial and the plaintiff appealed.

 

Issue: Who took on the risk that the ship might have to go around the Cape of Good Hope instead of through the Suez Canal?

 

Rule:

 

Analysis:

 

Conclusion: The opinion of the trial court is affirmed.

 

Back to Changed Circumstances Justifying Nonperformance

Back to Casebook Notes