An insurance company, Tryg Forsikring A/S (Tryg), commenced legal proceedings against two contracting carriers, Kuehne + Nagel A/S and Blue Anchor Line Transpac Container System Ltd. Tryg was subrogated to the consignor’s claim for damages regarding loss of goods due to the shipwreck of the container vessel MOL Comfort in 2013. The goods were transported from Singapore to Jeddah in Saudi Arabia when the vessel broke in half and sank at a depth of 3-4,000 metres.

In 2013 the Tokyo District Court in Japan constituted a limitation fund. The Danish Maritime and Commercial High Court found that this did not prevent legal proceedings concerning claims caused by the shipwreck from being initiated in Denmark.

Held: During the legal proceedings different reports were exhibited, including class inspection reports, stability reports and reports by the Japanese Accident Commission. The Court found that, despite of the production of these reports, the cause of the shipwreck and the carriers’ potential fault and neglect were still subject to uncertainty. The Court referred to the Danish Merchant Shipping Act, s 275(1), corresponding to the Hague-Visby Rules, art 4.2.q, according to which the carrier is responsible for loss and damages if the carrier cannot prove that loss and damages are caused without fault or neglect either by the carrier or its agents and servants. Since the cause of the shipwreck and the carriers’ potential fault and neglect were uncertain, the Court found that the carriers had not satisfied the burden of proof regarding their lack of fault or neglect. Kuehne + Nagel and Blue Anchor Line were thus obliged to pay damages regarding the loss of goods to Tryg.

The damages amounted to DKK 1,171,968.25, consistent with the invoice value at the loading port plus freight charges. The Court found that Tryg had not proven that the value at the port of discharge was higher than this uncontested loss. Damages therefore amounted to the abovementioned sum in accordance with the Danish Merchant Shipping Act, s 279. The Danish Merchant Shipping Act, s 279 corresponds to the Hague-Visby Rules, art 4.5.b, according to which the total amount recoverable shall be calculated by reference to the value of such goods at the place and time at which the goods are discharged from the ship in accordance with the contract or should have been so discharged.