In the case of the “Polar”, which concerned whether cargo interests could rely on the terms of the voyage charterparty incorporated into the bills of lading to refuse to contribute to general average. The UK Supreme Court ruled that the holders of the bills of lading were liable to make general average contributions. Please find the article on this judgment written by our senior legal adviser William Turner.

(Summary)
The vessel was hijacked by pirates in the Gulf of Aden and released in exchange for the payment of a ransom of SU$7.7 million. The Owners declared a general average and claimed the general average contribution of US$5 million from the cargo interests. The cargo interests refused the Owners' claim for the contribution, which led to a dispute. The ransom was paid by K&R (kidnap and ransom) insurance and additional war insurance. Under the terms of the voyage charterparty, these additional insurance premiums were borne by the charterers. As the bills of lading extensively incorporated the voyage charterparty, the cargo interests relied on the terms of the voyage charterparty to reject the general average contributions.