Lennard's Carrying Co Ltd v Asiatic Petroleum Co Ltd

Facts

A ship owned by a company was unseaworthy and its cargo was lost. The company relied on a statutory defence available if the loss happened without its 'actual fault or privity'. The managing director of the managing company knew of the defects.

Issue

Was the fault of the managing director the company's own fault?

Held

Yes. He was the directing mind and will of the company, so his fault was the company's.

Principle

The state of mind of a company's directing mind is attributed to the company.

Why it matters

It founded the identification doctrine.

For study only. By lanbuk.com. Always check current sources and consult a qualified professional.