New Jason clause

Why a US-touching voyage needs the clause to recover general average contributions where the loss followed a negligent navigation error.

The New Jason clause entitles a carrier to claim general average and salvage contributions from cargo even where the casualty resulted from negligent navigation or management of the ship, provided the carrier exercised due diligence to make the ship seaworthy.

The clause exists because United States law, following The Jason, does not otherwise allow a carrier to recover a general average contribution where its own negligence contributed to the loss, even though the carriage regime exempts the carrier from liability for that same negligence. Without the clause a carrier can be exempt from cargo’s claim yet unable to claim cargo’s contribution, which is the asymmetry the clause corrects. It is standard in bills of lading and charter parties on any voyage touching the United States.

The full article will cover the origin of the clause and the decision behind it, the due diligence precondition, its relationship with the York-Antwerp Rules and the general average adjustment, its interaction with the Both-to-Blame Collision Clause, and the drafting in current standard forms.