New Jason Clause

Summary of New Jason Clause

A stipulation in ocean bills of lading subject to the U.S. carriage of goods by Sea Act (read this and related legal terms for further details). Prior to the adoption of the Harter Act of 1893, American law recognized no right of participation in general average for losses sustained by the vessel through whose fault the averageable expenses and sacrifices had been sustained. Because the Harter Act provided shipowners with broad relief from responsibility for loss or damage of cargo, it was presumed by some that the act also relieved the proscription on contributions in general average to a negligent vessel. In the Irrawaddy case, however, the United States Supreme Court rejected a claim of general average by a vessel that had contributed to the marine peril.

To establish a basis by which a negligent vessel could recover in general average, shipowners inserted into their bills of lading a condition that permitted recovery whenever the ship would have been exonerated from claims to cargo under the Harter Act and the shipowner exercised due diligence to make the ship seaworthy. In the case of the ship Jason, the Supreme Court held the clause valid in 1912.

The carrier immunities incorporated in the original Jason clause were refined by the Carriage of Goods by Sea Act of 1936. The following constitutes the “new”Jason clause:

In the event of accident, danger, damage, or disaster, before or after commencement of the voyage resulting from any cause whatsoever, whether due to negligence or not, for which, or for the consequence of which, the Carrier is not responsible by statute, contract, or otherwise, the goods, shippers, consignees, or owners of the goods shall contribute with the Carrier in general average to the payment of any sacrifices, losses, or expenses of a general average nature that may be made or incurred, and shall pay salvage and special charges incurred in respect of the goods.

This statement is incorporated by reference into every ocean bill of lading subject to the U.S. Carriage of Goods by Sea Act of 1936.

(Main Author: William J. Miller)