The CMA CGM LIBRA – leave to appeal to UK Supreme Court granted
At a Glance…
On 30 July 2020, the UK Supreme Court granted Owners of the CMA CGM Libra leave to appeal to the UK Supreme Court from the decision of the Court of Appeal in The CMA CGM LIBRA (“Alize 1954 and another (Appellants) v Allianz Elementar Versicherungs AG and others (Respondents)” ).
Authors: Richard Gunn, Konstantinos Bachxevanis
This was in response to the Appeal Application filed on behalf of the Owners of the CMA CGM LIBRA which was supported by the International Group of P&I Clubs as an Intervening Party. The Supreme Court hearing dates are yet to be set down.
Leave to appeal to the Supreme Court was the first step by Owners in their effort to reverse the ruling of the two Courts below to the effect that a defective Passage Plan can render a vessel unseaworthy. In those earlier rulings it was held that any such error, is attributable to the carrier or owner, and constitutes a failure to exercise ‘due diligence’ before and at the commencement of the voyage to make the vessel seaworthy under the Hague/Hague-Visby Rules. As the lower Courts’ ruling also represents a significant shift of the risk of loss caused by navigational mistakes (for which owners have a defence) on to owners’ Mutual Insurers, this has given rise to the interest of the International Group.
The final decision is of general interest to the shipping industry as a whole: the case raises interesting issues on seaworthiness, error in navigation and the owner’s/carrier’s ‘due diligence’ obligation under the Hague/ Hague-Visby Rules. These will now be put before the UK Supreme Court and will, as a result, be resolved at the highest level of authority.
Reed Smith have been acting for the Owners. For further details on the Court of Appeal ruling please see our earlier Client Alerts through the following links. The ‘CMA CGM Libra’ – where is the line drawn? The live streaming of the Court of Appeal hearing, and the Court of Appeal decision.
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If you have questions or would like additional information on the material covered in this Alert, please contact one of the authors – listed below – or the Reed Smith lawyer with whom you regularly work. |
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