Charterers Can Still Not Limit Their Liability Vis-À-Vis Owners

In CMA CGM S.A. v Classica Shipping Co. Ltd [2003] 2 Lloyd's Rep. 50 charterers sought to run an argument to the effect that they were entitled to limit any liability they may have had to owners pursuant to the 1976 Convention on Limitation of Liability for Maritime Claims (the "1976 Convention"), but Mr Justice Steel, rejected their arguments. CMA CGM S.A. (the "Charterers") had chartered the container vessel "CMA Djakarata" (the "Vessel") from Classica Shipping Co. Ltd (the "Owners"). During the charter there was an explosion and fire on the Vessel leading to her abandonment and later salvage. The Owners contended that the fire was attributable to the shipment of two containers containing bleaching powder in breach of the charterparty terms which forbade the carriage of dangerous cargo. Owners claimed damages in the sum of US$26,638.032 together with an indemnity for their exposure to cargo claims and general average contributions. The dispute was referred to arbitration and the arbitrators found in favour of the Owners. The...