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New Jason Clause

C1. Commercial shipping, chartering, economics and finance

Definition

Charter clause preserving general average rights in jurisdictions like the United States.

The New Jason Clause is a charter party and bill of lading clause that secures the carrier’s right to a general average contribution from cargo even where the casualty arose from negligent navigation or management of the ship. It exists because US law diverges from the general position: the Harter Act 1893, carried into COGSA, bars an owner from claiming general average if its servants’ negligence caused the loss. The Supreme Court in The Jason (1912) upheld a clause restoring that right where the owner is otherwise exempt from liability for the fault. The clause is standard on US-trade bills and adjustments follow the York-Antwerp Rules.

Source: The Jason, 225 U.S. 32 (1912); US Harter Act 1893; COGSA