Glencore Energy UK Ltd and Anor v Freeport Holdings Ltd [2017]

Glencore Energy UK Ltd and Anor v Freeport Holdings Ltd [2017] EWHC 3348 (Comm) - 21 December 2017

“Following a fire on board a laden tanker (possibly started deliberately by the Chief Engineer), cargo owners Glencore sought recovery from shipowners for their proportion of salvage (and costs) and challenged shipowners' entitlement to GA contribution. The Court ruled on preliminary issues as to barratry and Article IV r2(b) (fire) and (q) (other cause) of the Hague Visby Rules. Barratry required a deliberate and wrongful act prejudicing owners or cargo; the wrongful element must involve something generally recognised as a crime or a deliberate or reckless breach of duty to shipowners; if therefore the C/E was suffering from a clinical mental disorder, the act would not be barratrous. However, Art IV r2(b) can still apply to a deliberately started or barratrous fire, although not r2(q).”

Louise Glover
E. G. Arghyrakis & Co.
27th December 2017