GLENCORE ENERGY UK LTD AND ANOTHER V FREEPORT HOLDINGS LTD (THE “"LADY M")

[2017] EWHC 3348 (Comm), Queen's Bench Division, Commercial Court, Mr Justice Popplewell, 21 December 2017

Carriage (goods) - Bill of lading - Chief engineer setting fire on board vessel - Barratry - Owners' liability where fire deliberately or barratrously caused - Hague-Visby Rules article IV r 2(b) and (q) - Meaning of "any other cause" exception in article IV r 2(q)

A fire on board the vessel Lady M had immobilised her. Salvors were hired to tow her to Las Palmas. General average was declared. This was the claimant cargo owners' (Glencore) claim against the shipowner under the bills of lading, and the shipowner's claim for a contribution in general average. It was common ground that the fire had been set by the chief engineer and as yet undetermined what his state of mind was at the time. Preliminary issues arose as to the scope of article IV r 2(b) (fire) and (q) (fault or neglect of agents or servants) of the Hague-Visby Rules. Notably, while article IV r 2(b) exempted owners from liability for fire, the question was if a barratrously set fire qualified.