#CaseSTUDY

In May 2012, a significant incident unfolded during the discharge of a steel coil shipment from Italy to the US at Houston, Texas. The cargo, insured by a global renowned firm, suffered considerable damage, resulting in a substantial financial loss.

Facing this challenge, our clients, acting as cargo underwriters, approached the situation strategically. The catch was that if a claim were made against the sea carriers, a strict limitation of USD 500 per coil, dictated by the US COGSA limitation, would severely limit the recovery. Adding to the complexity, as the loss occurred post ship’s rail passage, the carriers technically ceased to be liable.

The focus was shifted towards the Stevedores. However, they cleverly shielded themselves with a “Himalayan Clause,” aligning themselves with COGSA’s limitationand cappingtheir liability at USD 500 per coil.

We then chose an alternative route, pursuing the Stevedores through a local breachof contract/tort claim, side stepping maritime law.

The outcome was a success. We not only recovered the entire amount but also secured a majority of the expenses incurredin courtduring the second instance.

The journey, however, was no easy. The legal proceedings stretched over a decade, bringing with it considerable expenses on experts , and also having lost the first instance. The pressure to abandon the case was big.

Had the case concluded in 2012, the recovery would have been insufficient to cover the procedural costs. Despite the setbacks, our clients-maintained trust in our approach and decision to pursue a recovery at the second instance. Staying true to our strategy proved pivotal, ultimately leading to a settlement and vindicating our belief in BARBUSS’s recoveryplan.