Classic Maritime Inc. v Limbungan Makmur SDN BHD & Anor [2018]

Commercial Court
Written By Louise Glover

Classic Maritime Inc. v Limbungan Makmur SDN BHD & Anor [2018] EWHC 2389 — 13 September 2018 (Teare J)

“After the collapse of a dam in Brazil, charterers were unable to supply cargoes from a flooded iron ore mine for shipment under a COA and relied on the force majeure or exception clause to excuse their failure. The Court found that in fact chartere…

“After the collapse of a dam in Brazil, charterers were unable to supply cargoes from a flooded iron ore mine for shipment under a COA and relied on the force majeure or exception clause to excuse their failure. The Court found that in fact charterers would not have shipped cargoes in any event, so there was no causative effect between the dam burst and the failure and the clause was inapplicable. However, owners were unable to recover substantial damages as the dam burst would have prevented the shipment of any iron ore and the compensatory principle operated to prevent owners being placed in a better position than they would otherwise have been.”

Antonino Cordopatri
E. G. Arghyrakis & Co.
19th September 2018

Louise Glover
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