The plaintiff, the Iran Insurance Joint-Stock Co, brought a subrogated action against two defendants, demanding IRR 10,948,888 for damage to cargo. The plaintiff claimed that the first defendant, which was a shipping company, was the carrier, and the cargo was damaged during carriage by the carrier.

The first defendant argued that it was a voyage charterer and thus was not liable for the cargo damage.

The first instance Court rejected the first defendant's argument, holding that the first defendant had the obligation to carry the cargo and thus was the carrier under the definitions in art 377 of the Commercial Code and art 52(1) of the Maritime Code (based on art 1.a of the Hague Rules). Nevertheless, the Judge found that the carrier was not liable. It was held that the carrier and the cargo owner had agreed on 'Free In Free Out' terms, according to which the owner of the cargo was responsible for loading and discharge of the goods. The cargo was damaged during discharge, and thus, the carrier was not liable. The expert opinion dated 8 October 2001 was consistent with this conclusion. Therefore, invoking art 55(2)(i) (based on art 4.2.i of the Hague Rules), the claim was rejected.

The plaintiff appealed to the Court of Appeal of Tehran Province.

Held: Appeal dismissed.

The appellant failed to provide any reason that would have resulted in the first instance Court's judgment being struck down. The appealed judgment is affirmed.