Requirements for an Effective Switch B/L: Focusing on The KSC Docket No.2018Da249018

Abstract

Purpose : A Switch B/L refers to a bill that is issued as a substitute for an original B/L but which is not identical in all respects to the bill that it is replacing. In Docket No.2018Da204018, there was a dispute as to the validity of switch B/L which was issued by the freight forwarder at the request of the intermediary without authority from the original B/L’issuer as the carrier. The supreme court of Korea ruled that this B/L can not be regarded as valid B/L under the Korean Law. This article analyses Docket No.2018Da204018 according to the English law, and proposes some recommendations for the carrier, when he issues the switch B/L. Research design, data, methodology : This article adopts the legal methodology which utilizes textbooks, journal articles, electronic resources, UK COGSA(1992), and several cases from the English court. Results : This article finds that, under the English law, three requirements for an effective switch B/L are a proper requester, a proper issuer, and a legitimacy reason for issuing the switch B/L. Thus, this article concludes that the switch B/L in Docket No.2018da204018 shall not be recognized as a valid B/L, because it clearly lacked the second requirement naming a proper issuer. Conclusions : The carrier potentially has greater liability over issuing the switch B/L than the requester. Therefore, when issuing the switch B/L, it is crucial for the carrier to verify the requester, obtain a legitimacy reason for issuing the switch B/L, and to insist upon surrendering the original B/L..