Himalaya Clause

Himalaya Clause which is incorporated into the charter party or bill of lading contract to provide to agents, servants, subcontractors … (etc) of the carrier the benefits of all the exclusions and limitations enjoyed by the actual carrier under the B/L which protects them against consignees or endorsees for claims in contract or in tort. The Himalaya clause arose from a case – Adler –v- Dickson (The Himalaya) [1955] where a Master and bosun were held liable to a passenger who fell due to faulty rigging of the gang-plank. The injured lady discovered she could not claim damages from the shipping line by virtue of the wording of the passenger ticket.  She then successfully sued the Captain and the errant bosun in tort.  This sent a frisson of fear throughout the shipping world and shipowners quickly included a clause, worded in the form of today’s Himalaya Clause, in all passenger tickets and bills of lading. Actually adding a Himalaya clause to a B/L drawn under the Hague Visby Rules is superfluous because a form of Himalaya Clause is contained in Article IV bis of the Rules. If the carrier contracts as an agent for a third party, for example a stevedore, the third party can enforce the terms of the bill of lading against the shipper if (a) the bill of lading makes it clear that the stevedore is entitled to be protected by the provisions in it which limit liability; (b) the bill of lading makes it clear that the carrier, in addition to contracting for these provisions on his own behalf is also contracting as agent for the third party that those provisions should apply to the third party; (c) the carrier has authority from the third party to do that and (d) any difficulties about consideration moving from the third party would be overcome.