Dardani Studio Legale
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Shipping & Transport
The Italian International Registry provides a number of substantial fiscal advantages to shipowners. However, the European Commission recently established an EU pilot procedure against Italy to enquire into the nature of the advantages that Italy has made available to ships registered in the registry. The European Commission's message was taken on board and measures are now being discussed to amend national legislation so that it conforms to EU principles.
The Milan Court of Appeal recently addressed a demurrage claim under a voyage charterparty. The decision dealt with the issue of contract formation and focused on the choice of law provision contained in the charterparty. This case has confirmed that, when so called, the Italian courts are keen and ready to pronounce judgments in line with commercial shipping practice.
In an important decision, the Supreme Court recently established the validity of a forum selection clause contained in a multimodal bill of lading. The judgment is notable as it overturns the main trend in Italian case law on this subject. Before the issuance of the Supreme Court judgment, many lower courts had denied the validity of jurisdiction clauses contained in multimodal bills of lading.
As of January 1 2017, the EU Passenger Liability Regulation applies to Class A ships sailing Italian domestic voyages, as defined under the EU Directive on Safety Rules and Standards for Passenger Ships. Accordingly, such ships can limit their liability, pursuant to the Athens Convention relating to the Carriage of Passengers and their Luggage by Sea 1974, and must fulfil the relevant compulsory insurance duties.
With Parliament's recent passage of Act 230, the long-awaited reform of the Italian legal regime regulating maritime pilots' liability has now come to fruition. The amendments introduced to the Code of Navigation establish a system based on limitation of liability and compulsory insurance. Pilots' representatives have welcomed the reform.
The Tribunal of Genoa recently issued two decisions dealing with the legal nature of sea waybills. In both decisions the tribunal considered the extent to which the content of a sea waybill is relevant when identifying the parties to the contract of carriage and, consequently, when deciding on the defence of title to be sued.
A recent Supreme Court judgment addressed the issue of maritime liens and the remuneration of shipping companies' court-appointed managers by adopting a strict interpretation of the maritime liens rules. The judgment provides an idea of which credits are assisted by liens and highlights the difference between the rules of law regarding liens and those regarding managers' duties and rights.
Bareboat-in registration in the Italian International Ship Registry has recently been made available to ships from EU registries and ships owned by EU persons or entities, to which access was previously denied. After almost two decades of silence regarding this crucial matter regulating ship registration, the government and legislature are again concentrating their efforts on a strategically important area.
The Tribunal of Genoa recently issued a judgment regarding the corporate structure of a group of shipping companies. In particular, the court considered the liability of a local shipping agent where it was established as a subsidiary of the line carrier and alternatively where it was merely a branch office of the line carrier.
The Supreme Court recently issued a decision concerning the interpretation of Article 3.2 of the Brussels Convention and a free in liner out clause contained in a bill of lading. The case concerned compensation for the loss of and damage to cargo and focused on whether a terminal operator had acted as a servant of the carrier or the shipper and, as a consequence, on the limitation period applicable to the action brought against the terminal operator.
The OW Bunker group collapse continues to affect the wider shipowning community, with a number of physical bunker suppliers not receiving payment. A recent Tribunal of Venice decision addressed whether a physical bunker supplier was entitled to arrest the vessel to which it supplied fuel where it had received no payment from the insolvent contractual bunker supplier.
The Tribunal of Genoa recently issued an interesting judgment addressing the applicability of fair competition principles to certain contractual provisions generally used by most major line carriers. The dispute regarded a claim filed by a group of freight forwarders which held that certain surcharges – particularly the 'LO-LO' charge – should be declared null and void.
The Genoa Court of Appeal recently issued its decision in Redwood, which concerned the liability of classification societies. The appeal court quashed the first-instance decision, which had found Lloyd's Register liable for damages suffered by the time charterers of the vessel Redwood. The decision will undoubtedly attract the attention of maritime lawyers around the world.
The European Court of Justice recently issued an interesting decision regarding marine fuel emissions in response to a preliminary question submitted by the Court of Genoa. The case involved a vessel found to have been burning marine fuel with a sulphur content exceeding that permissible under the Environmental Code while in the port of Genoa.
The Messina Court of Appeal recently issued an interesting judgment in which it addressed the qualification of a vessel's sale and purchase as a 'transfer of business assets'. The decision was issued in regards to a claim by the Italian social security agency against the purchaser of a vessel for the payment of crew members' social contributions, which the former shipowner had failed to pay.
In a recent decision of the Tribunal of Genoa, the court applied established principles on the liability of sub-carriers towards cargo claimants in circumstances where a freight forwarder is charged with the transport of goods and thereafter instructs the sub-carrier. In particular, the court addressed potential direct liabilities towards the cargo interests of the sub-carriers involved.
An Italian court was recently asked to decide on an interesting issue relating to cross-border insolvency and ship arrests. Although few authorities are available in Italy in this respect, the question as to which effects of insolvency proceedings are recognised across jurisdictions has generated increasing interest in light of the financial distress that many shipowners face in the present economic climate.
The Cagliari Court of Appeal recently issued a judgment in which it addressed and clarified the nature of the two-year time limit for claims stipulated in Article 23 of the Salvage Convention 1989. The court confirmed the two-year limit in this case, holding that in circumstances where salvage operations have been carried out, numerous interests are often involved and the need for certainty is crucial.
The recent decision in Chuang's China Treasury Ltd v Euronavi srl addressed the application of the 1952 Arrest Convention to circumstances where the credit for which security is sought is that of a subcontractor towards a shipyard for works performed when building a vessel. The judgment is of practical application and is relevant to most cases of shipyard insolvency.
The Court of Genoa has issued a decision regarding interpretation of both contracts for the supply of food to ship crew members and of the applicable rules in the related collective bargaining agreement. It is the first time that an Italian court has taken a view on the construction of such a contract. The decision shows that food quantity and quality provisions should be taken as general guidance, not as strict parameters.
The Genoa Court of Appeal recently issued an interesting decision on the scope of application of the Hague-Visby rules. In particular, the court was asked to decide on the application of the limit of liability set down by the rules in circumstances where the cargo to be carried suffered damages during loading operations and before the relevant bill of lading was issued.
A Tribunal of Genoa decision has affirmed that damage claims against carriers for full liability must prove not only that the carrier's behaviour had been grossly negligent, but also that the carrier or its agents acted recklessly and foresaw that damage would result from their act or omission.
A judgment issued by the Court of Ravenna poses complex legal questions about the application of the concept of 'undue hardship' to charterparties and the obligation to renegotiate. It also raises significant problems about the relationship between English and Italian jurisdiction.
A recent Supreme Court decision has refocused attention on the issue of incorporating arbitration clauses by reference to common charterparty forms contained within fixture recaps. This has been a point of contention for many years within the shipping industry, giving rise to numerous disputes and great uncertainty in the interpretation of charterparties and fixture recaps.
The interpretation of Article 3(4) of the Brussels Convention 1952 has given rise to much debate in the convention's contracting states. In Italy, a number of arrests have been granted in respect of claims against a demise charterer or a time charterer, even where the maritime claim is not secured by a maritime lien on the vessel. A decision of the Court of Genoa on this issue seems certain to provoke further debate.
Two decisions represent the Italian courts' only interpretations of the wording of the Institute Classification Clause. The notion that the cargo classification clause requires full classification of a vessel without recommendations is controversial - it takes no account of the evolution of the clause or the differences between its literal formulation and that of the corresponding classification clause for hull and machinery insurance cover.
The Court of Genoa has considered the problematic issue of the liability of classification societies, holding Lloyd's Register liable for damages caused to time charterers as a result of the detention of their vessel. This is the first time that an Italian court has specifically addressed the issue.
The Rome Court of Appeal recently set an important precedent on the distinction between a charterparty contract and a contract of carriage of goods by sea. The case involved an Italian tank vessel which sank. After rejecting the allegation that the owner had been negligent, the court examined the terms of the time charterparty to decide whether it amounted to a contract of carriage of goods by sea.