MSC MEDITERRANEAN SHIPPING CO SA V STOLT TANK CONTAINERS BV AND OTHERS (THE “MSC FLAMINIA”)

[2022] EWHC 2746 (Admlty), King’s Bench Division, Admiralty Court, Mr Justice Andrew Baker, 2 November 2022

Admiralty – Limitation of liability – Tonnage limitation – Meaning of shipowner – Charterer – Limitation fund – Consequential losses – Convention on Limitation of Liability for Maritime Claims 1976 as amended, article 2

As a result of an explosion on the vessel MSC Flaminia on 14 July 2012, hundreds of containers were destroyed or damaged and the vessel itself suffered serious damage. The explosion was caused by auto-polymerisation of the contents of one or more of three tank containers loaded at New Orleans. At the time, MSC Flaminia was under a time charter between MSC as charterer and Conti as registered owner. The time charter provided for arbitration in London. Conti commenced arbitration and in 2021 obtained three awards under which it was awarded damages of some US$200 million. The awards held that MSC was in breach of the charterparty by failing to inform Conti of the dangers from the cargo, but declared that there had been no negligence by MSC in the shipping itself. On 5 October 2021, MSC’s limitation fund was established. The limitation figure was some £28.2 million.