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ARTICLE · 24 MAY 2011

Cargo Damage Claims – The Angeliki B

Who has the burden of proving the cause of cargo damage when the shipowner relies on a defence to avoid liability?

United KingdomTransport

Milan Nigeria Ltd v Angeliki B Maritime Company [2011] EWHC 892 (Comm)

Who has the burden of proving the cause of cargo damage when the shipowner relies on a defence to avoid liability? What is the effect of a Tribunal's order that certain arguments be shut out? And should cargo damage should be paid for in the claimant's local currency or U.S. dollars? These questions were considered in The Angeliki B.

Facts

The Court was asked to consider issues arising from an Award of the London arbitration Tribunal in favour of Milan Nigeria Ltd for damage to cargo carried on the Angeliki B. The English law bills of lading were subject to the Hague Rules. Milan said the ship-owner carriers had breached Article III rule 2 of the Rules by failing to "properly and carefully load, handle, stow, carry, keep, care for, and discharge the goods carried". The shipowners sought to avoid liability under Article IV rule 2(m) on the basis that the cargo damage was due to an "inherent de

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