CMA CGM S.A. v Classica Shipping Co Ltd.

CMA CGM S.A. v Classica Shipping Co Ltd.

A charterer’s right to limit liability under the 1976 Convention does not depend on acting qua owner, but limitation does not extend to claims for loss of or damage to the ship itself; such claims are not within Article 2.1(a). Charterers may only limit liability for indemnity claims relating to cargo claims, not for damage to the vessel or consequential losses.

Parties
Appellant: CMA CGM S. A.; Respondent: CLASSICA SHIPPING Co Ltd
Jurisdiction
England and Wales
Judgment Date
12 February 2004
Procedural Posture
Civil Appeal (commercial/maritime) / Appeal From Queen’s Bench Division, Commercial Court
Outcome
Appeal dismissed
Legal Topics
Limitation of Liability, Charterparty, Interpretation of International Conventions
Maritime Law Commercial Law Limitation of Liability Charterparty Interpretation of International Conventions

Case Brief

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Parties

CMA CGM S. A.

Appellant

CLASSICA SHIPPING Co Ltd

Respondent

Procedural Posture

Civil Appeal (commercial/maritime) / Appeal From Queen’s Bench Division, Commercial Court

Legal Issues

  1. 1 Whether a charterer may limit liability under the Merchant Shipping Act 1995 and the 1976 Convention for claims brought by shipowners for damage to the vessel.
  2. 2 Whether claims for damage to the ship itself fall within Article 2.1(a) of the 1976 Convention.

Ratio Decidendi

A charterer’s right to limit liability under the 1976 Convention does not depend on acting qua owner, but limitation does not extend to claims for loss of or damage to the ship itself; such claims are not within Article 2.1(a). Charterers may only limit liability for indemnity claims relating to cargo claims, not for damage to the vessel or consequential losses.

Court Disposition

Appeal dismissed

Orders

  • Owners to receive 25% of their costs of the appeal.
  • Costs of arbitration are not limitable and will not be remitted.