#CaseSTUDY

A shipment of peas from Peru to the Netherlands encountered a series of setbacks, caused by a fire incident leading to a total back-out of the ship and an 11-day delay. Legal conflicts emerged when opponents raised a “fire defense” and further disclaimed any potential liability arising from delay. The case ultimately saw a successful resolution, setting a precedent for intricate international conventions and leveraging local knowledge to achieve a favorable outcome.

In a recent case that had the global shipping community on edge, a shipment
of peas originating from Peru and destined for the Netherlands faced unprecedented challenges. The incident unfolded as a liner cargo vessel caught fire whilst moored at Cristobal, Panamá. As consequence of the fire, the ship suffered a sudden blackout, leaving all refrigerated containers with a power outage. This unexpected event cast doubts on the fate of the valuable cargo.

In an attempt to mitigate the existing losses owners decided to transship part
of the cargo. This process was further complicated by a harrowing two-day
period during which the containers lacked proper cooling, putting the entire
cargo at risk. In addition, the entire voyage was further delayed 11 days.

A legal dispute ensued, with the opposing parties raising a “fire defense” exception on the grounds of absolving the carrier from liability. Furthermore, the contractual provisions under the Bills of Lading ruled out any liability for delay. As negotiations progressed, the carriers raised further arguments in relation with the actions undertaken to mitigate losses: It was further claimed that transshipments were conducted promptly and with the utmost due diligence.

The BARBUSS legal team challenged Carrier’s “fire defense” based on ship’s
pre-existent unseaworthiness: A preliminary onboard investigation by BARBUSS appointed experts suggested that the cause of fire was related with an unexpected ignition of fuel released on a high-pressure line, which according to the standard safety requirements should be properly maintained / inspected prior from sailing from any port of call. Furthermore, relying on local Peruvian legislation, we were able to place owners / carriers in a position of being forced to disclose all material evidence as to the event giving raise to the fire. The carrier was unable to disclose evidence to the contrary, leaving all possible defenses under the Bill of Lading, including any argument in relation with delay, in the backdrop.

A successful resolution was reached through intense negotiations, ending up with an amicable settlement in the range of 25-30%.

This case highlights the strategic use of local knowledge from regional offices. What initially appeared to be a complex case was resolved to the satisfaction of the client, showcasing the power of determination and expertise in the global shipping industry.