American Trading & Prof. Corp. v. Shell Int’l
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?
Conclusion: The opinion of the trial court is affirmed.
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