A Study on the Rights by Subrogation of the Cargo Insurer in the Intermediate Trade Used Switch B/L and Validity B/L

Abstract

Purpose This study analyzes the Supreme Court precedent and research the relationship of subrogation rights of cargo insurers to sea carriers based on responsibility for issuing bills of lading and responsibility for transporting, unloading, storing, and delivery of cargo. Design/Methodology/Approach This study performed a literature review and analysis of Korean Supreme Court Decision 2018Da249018 decided on June 11, 2020. Findings The results of this study are as follows. First, if the sea carrier is the employer or agent of the sea carrier who issued the first bill of lading or is entrusted with the authority to issue the bill of lading, he is subject to the subrogation right of the cargo insurer. Second, the issuer of the validity bill of lading is not responsible for transporting, unloading, loading, storage, and delivery of the transport cargo and is not subject to the subrogation right of the cargo insurer. Third, if the issuer of the validity bill of lading is liable for unloading, loading, storage, and delivery from the time the ship enters the port of arrival due to the employer, agent, subcontractor, or shipper of the first bill of lading, he is subject to the subrogation right of the cargo insurer. Research Implications T he party to the claim for subrogation of the cargo insurer means all parties, including sea transport, except the insured, policy holder, and insurer, who are liable for damages to the insured in the same manner as the shipper’s right to claim damages to the sea carrier. In transit trade transactions in which a single cargo is transported on a single route, switch bills of lading cannot be issued due to the trade transaction structure. Nevertheless, when a switch bill of lading is issued, it becomes a validity bill of lading and becomes an illegally issued bill of lading. When a bill of lading is issued, the party to the claim for subrogation of the cargo insurer shall determine whether the party in charge of unloading, loading, storage, and delivery of cargo after its arrival at port is subject to thell of lading should not be regarded as a bill of lading, but as a cargo reimbursement certificate necessary for land transportation in the area where the ship arrives.