Appeals court reverses æCarlaÆ decision
The U.S. Court of Appeals for the Second Circuit has overturned a lower court ruling that found Hyundai Corp. and Hyundai Mipo Dockyard in South Korea liable after the break-up of the containership 'MSC Carla' in November 1997, a decision likely to cost cargo interests and a protection & indemnity club at least $65 million.
The Hyundai shipyard had installed a mid-body section in the 'Carla' in 1984, work that had been monitored by the Lloyd's Register classification society.
While crossing the Atlantic 13 years later, the vessel broke up allegedly along the weld lines.
'We do not consider the law of the flag (state) a determinative factor ' we have held that the place of the wrongful act is not where the vessel sinks, but where the negligence occurs. The place of the alleged wrongful act is Korea, where the welding was performed,' the appeals court said in its ruling.
'Taking these factors together, we find Korean law applies. Because Korean law bars the cargo interests and (the P&I club) from recovery against Hyundai due to statutes of repose, we reverse the district court's finding of liability,' the appellate panel concluded.
The title of the case is 'Rationis Enterprises Inc. of Panama, Mediterranean Shipping Co. S.A. of Geneva, and North of England Protection and Indemnity Association v. Hyundai Mipo Dockyard Co. Ltd. and Hyundai Corp.'
Appeals court reverses ?Carla? decision
