Litigation Letter

Commercial Court interprets limitation in Hague Rules

Vinnlustodin HF and Another v Sea Tank Shipping AS (The “Aquasia”) [2016] 1 Lloyd’s Law Rep Plus 75, [2016] EWHC 2514 (Comm), 14 October 2016

This was a dispute between the claimant owners/insurers of the cargo and defendant shipowner of the vessel known as the “Aquasia”. The vessel was carrying fishoil, and on arrival at the discharge port, about 547 mt of the cargo was found to have suffered damage. The shipowner accepted liability, but contended that it was entitled to a limitation of its liability to £54,730.90 i.e. £100 per mt of cargo damaged, pursuant to article IV rule 5 of the Hague Rules (limitation of liability to £100 “per package or unit”) which was scheduled to the Carriage of Goods by Sea Act 1924.

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