CMA CGM SA v Classica Shipping Co Ltd (The "CMA Djakarta") - Court of Appeal (Waller, Longmore and Neuberger LJJ) - 12 February 2004

Limitation - Explosion on vessel caused by time-charterers' breach of charter in shipping dangerous cargo - Shipowners claiming against time-charterers damages for cost of repairs to vessel and salvage costs and claiming an indemnity in respect of shipowners' liability for general average and in respect of claims brought against shipowners by cargo-owners

The vessel CMA Djakarta was chartered on an amended NYPE form. During the currency of the charter there was an explosion on the vessel, leading to her abandonment. The shipowners claimed against the charterers damages in the sum of US$26,638,032 comprising the cost of repairing the vessel, and salvage remuneration paid to salvors. The shipowners also claimed to be indemnified in respect of (1) their liability to contribute to general average, and (2) their liability to the cargo owners for loss or damage to cargo. The shipowners alleged that the explosion was attributable to the shipment of dangerous cargo in breach of the express terms of the charterparty.