Serena Navigation Ltd & Anor v Dera Commercial Establishment Standard Chartered Plc

Serena Navigation Ltd & Anor v Dera Commercial Establishment Standard Chartered Plc

The limitation of liability under Article IV Rule 5(a) of the Hague-Visby Rules is to be calculated by reference to the gross weight of the goods physically lost or damaged while in the custody of the carrier. Economic and consequential losses are recoverable but are subject to this limit. The phrase 'goods lost or damaged' does not include goods that are only economically affected or depreciated in value. The limit does not extend to the gross weight of all goods affected by economic loss, but only to those physically lost or damaged.

Parties
Claimant: Serena Navigation Ltd; Claimant: The London Steamship Owners Mutual Insurance Association Ltd; Defendant: Dera Commercial Establishment; Defendant: Standard Chartered plc
Jurisdiction
England and Wales
Judgment Date
15 May 2008
Procedural Posture
Commercial Shipping Dispute / Preliminary Issue Hearing
Outcome
Preliminary issue resolved in favour of the Claimant Owner/Carrier.
Legal Topics
Limitation of Liability, Interpretation of Hague Visby Rules, Economic Loss, Mitigation of Loss
Carriage of Goods by Sea International Trade Law Limitation of Liability Interpretation of Hague Visby Rules Economic Loss Mitigation of Loss

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Parties

Serena Navigation Ltd

Claimant

The London Steamship Owners Mutual Insurance Association Ltd

Claimant

Dera Commercial Establishment

Defendant

Standard Chartered plc

Defendant

Procedural Posture

Commercial Shipping Dispute / Preliminary Issue Hearing

Legal Issues

  1. 1 How is the limitation of liability under Article IV Rule 5(a) of the Hague-Visby Rules to be calculated: by reference to the gross weight of physically damaged goods only, or by reference to the gross weight of all goods affected by economic loss?
  2. 2 Does 'goods lost or damaged' in Article IV Rule 5(a) include goods economically damaged or only physically lost or damaged goods?

Ratio Decidendi

The limitation of liability under Article IV Rule 5(a) of the Hague-Visby Rules is to be calculated by reference to the gross weight of the goods physically lost or damaged while in the custody of the carrier. Economic and consequential losses are recoverable but are subject to this limit. The phrase 'goods lost or damaged' does not include goods that are only economically affected or depreciated in value. The limit does not extend to the gross weight of all goods affected by economic loss, but only to those physically lost or damaged.

Court Disposition

Preliminary issue resolved in favour of the Claimant Owner/Carrier.

Orders

  • The counterclaim is limited to the gross weight of the physically damaged goods (conceded tonnage).
  • The precise amount of the conceded tonnage (7, 12, or up to 262 tons) is to be determined at a subsequent trial.