Clause 18 of the bill of lading provides that the owner should not be liable for loss or damage of cargo unless written notice thereof was given to the carrier within 30 days after receipt of the goods. However, Section 3 of the Carriage of Goods by Sea Act provides that even if a notice of loss or damage is not given as required, "that fact shall not affect or prejudice the right of the shipper to bring suit within one year after the delivery of the goods." Which of these two provisions should prevail?
Clause 18 must of necessity yield to the provisions of the Carriage of Goods by Sea Act in view of the proviso contained in the same Act which says: "Any clause, covenant, or agreement in a contract of carriage relieving the carrier or the ship from liability for loss or damage to or in connection with the goods or lessening such liability otherwise than as provided in this Act, shall be null and void and of no effect." (Sec. 3) This means that a carrier cannot limit its liability in a manner contrary to what is provided for in said Act, and so clause 18 of the bill of lading must of necessity be null and void. (E. E. Elser, Inc. v. CA, G.R. No. L-6517, Nov. 29, 1954)
