Virgo Steamship Co. S.A. v. Skaarup Shipping Corporation (The Kapitan Georgis) - Q.B.D. (Com.Ct.) (Hirst J.) - 15 October 1987

Whether defendant entitled to serve third party proceedings out of jurisdiction - Whether third party claim based merely on economic loss

Skaarup were the time charterers of the vessel Kapitan Georgis, which was owned by the plaintiffs. A cargo of coal was shipped on board the vessel by Cape Breton Development Corporation (“Devco”), a Canadian company. An explosion occurred on board the vessel during the carriage. The shipowners brought proceedings against the time charterers for loading a dangerous cargo. The time charterers subsequently issued a third party notice against Devco, the shippers of the coal.