Glencore Energy UK Ltd & Anor v Freeport Holdings Ltd

Glencore Energy UK Ltd & Anor v Freeport Holdings Ltd

On the agreed and assumed facts, the conduct of the chief engineer may or may not constitute barratry, depending on further facts as to his state of mind. However, Article IV Rule 2(b) is capable of exempting the Owners from liability even if the fire was deliberately or barratrously caused, and the Owners are not exempt from liability under Article IV Rule 2(q) because the chief engineer was acting within the scope of his employment as a servant of the Owners.

Parties
Claimant: Glencore Energy UK Ltd; Claimant: Glencore Ltd; Defendant: Freeport Holdings Ltd
Jurisdiction
England and Wales
Judgment Date
21 December 2017
Procedural Posture
Commercial Court Admiralty/carriage of Goods by Sea / Judgment on Preliminary Issues
Outcome
Preliminary issues determined; no final disposition on liability; directions for trial of further facts if necessary.
Legal Topics
Hague Visby Rules, Barratry, Fire Exception, Vicarious Liability, General Average
Admiralty Carriage of Goods by Sea Marine Insurance Hague Visby Rules Barratry Fire Exception Vicarious Liability General Average

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Parties

Glencore Energy UK Ltd

Claimant

Glencore Ltd

Claimant

Freeport Holdings Ltd

Defendant

Procedural Posture

Commercial Court Admiralty/carriage of Goods by Sea / Judgment on Preliminary Issues

Legal Issues

  1. 1 Did the conduct of the chief engineer constitute barratry?
  2. 2 Is Article IV Rule 2(b) capable of exempting the Owners from liability if the fire was deliberately or barratrously caused?
  3. 3 Are the Owners exempt from liability under the 'any other cause' exception in Article IV Rule 2(q)?

Ratio Decidendi

On the agreed and assumed facts, the conduct of the chief engineer may or may not constitute barratry, depending on further facts as to his state of mind. However, Article IV Rule 2(b) is capable of exempting the Owners from liability even if the fire was deliberately or barratrously caused, and the Owners are not exempt from liability under Article IV Rule 2(q) because the chief engineer was acting within the scope of his employment as a servant of the Owners.

Court Disposition

Preliminary issues determined; no final disposition on liability; directions for trial of further facts if necessary.