Legal Definitions - Himalaya clause

A Himalaya clause is a provision in a bill of lading that extends the carrier's defenses and limitations under the Carriage of Goods by Sea Act to third parties, such as employees, agents, and independent contractors. This means that if a third party is sued for damages related to the carriage of goods, they can use the same defenses and limitations as the carrier.

For example, if a cargo owner sues a stevedore for damage to their goods during loading, the stevedore can use the carrier's defenses and limitations to limit their liability. However, Himalaya clauses must be strictly construed, meaning that they are interpreted narrowly and only apply to the specific third parties named in the clause.

In the case of Robert C. Herd & Co. v. Krawill Machinery Corp., the Supreme Court held that a Himalaya clause must be strictly construed. In this case, a passenger on a cruise ship named The Himalaya sued the master and boatswain for negligence because the carrier was contractually exempt from all liability. However, because the contract did not have a Himalaya clause, the plaintiff succeeded in their lawsuit.