WSCO Advokatpartnerselskab updates

Does the EU directive regarding 'large risks' include vessels bought for private use?
WSCO Advokatpartnerselskab
  • Insurance
  • Denmark
  • 23 February 2021

In two previous verdicts a district court found that prorogation of jurisdiction can be validly agreed in a yacht insurance contract, even where consumer interests are concerned and the contract requires that legal proceedings be brought in a court in the insurer's home country. In a recent decision, a high court found that the European Court of Justice (ECJ) should be asked for a preliminary ruling. The question for the ECJ is does the EU directive regarding 'large risks' include vessels bought for private use?

Court rules that parking of goods trailer on lit roadside constitutes gross negligence
WSCO Advokatpartnerselskab
  • Shipping & Transport
  • Denmark
  • 27 January 2021

The Maritime and Commercial Court recently determined whether a Danish carrier was liable for the theft of €172,000 worth of toys which had been stolen from a subcarrier's trailer while it was parked at night. In its decision, the court considered whether the parking spot complied with the safety arrangements set out in the transport agreement.

Court finds that charter agreement was binding despite failure to perform conditional test of vessel
WSCO Advokatpartnerselskab
  • Shipping & Transport
  • Denmark
  • 20 January 2021

The Maritime and Commercial Court recently ruled that a charter agreement was binding on a charter even though a conditional test of the vessel was not performed. This decision shows that a party which wishes to enter into a conditional chartering agreement must formulate the condition clearly and, in negotiations on the conclusion of the agreement, maintain the reservation in question.

Time limitation for recourse claim against sea carrier cannot be more than two years from cargo delivery date
WSCO Advokatpartnerselskab
  • Shipping & Transport
  • Denmark
  • 23 December 2020

The Maritime and Commercial Court recently held that there is no basis for an interpretation that the time limit for a recourse claim can be extended beyond the total time limit of two years. Thus, the time limit for a recourse claim between sea carriers for damage to cargo which falls under the Merchant Shipping Act is, as a general rule, a maximum of two years from the date on which the damaged cargo was delivered.

Claim for unlawful arrest could not be heard before court at creditor's domicile
WSCO Advokatpartnerselskab
  • Shipping & Transport
  • Denmark
  • 07 October 2020

The Danish Maritime and Commercial Court recently rejected a jurisdictional claim in a dispute between a Danish shipowner and a Spanish shipyard. It follows from the judgment that a jurisdiction clause in a repair contract in some instances requires that the party which receives the other party's general terms and conditions must accept the jurisdiction clause in writing in order for it to be binding between the parties.

Recharge of sum insured: whose duty and what are the consequences of failing to do so?
WSCO Advokatpartnerselskab
  • Insurance
  • Denmark
  • 06 October 2020

In a recent ruling on the recharge of the sum insured in a project liability insurance policy, the Danish Building and Construction Arbitration Board ruled that the obligation to recharge was incumbent on the policyholder (adviser), regardless of whether the client had requested it or not. This article examines the ruling and highlights the conditions that parties should be aware of when refilling.

Court decides whether CMR carrier was grossly negligent for theft of branded champagne during carriage
WSCO Advokatpartnerselskab
  • Shipping & Transport
  • Denmark
  • 30 September 2020

The Maritime and Commercial Court recently examined a compensation claim for stolen champagne. The customer argued that the carrier should have taken precautions to protect the goods against theft. However, the court decided that the carrier could limit its liability for the theft. The judgment is in line with Danish court practice concerning liability for the theft of high-value and exposed goods.

Freight forwarder liable for depriving cargo interest possibility to declare general average
WSCO Advokatpartnerselskab
  • Shipping & Transport
  • Denmark
  • 23 September 2020

A Danish court recently found a freight forwarder to be vicariously liable to a Danish company for fire damage caused to cargo carried by a subcontractor. The judgment suggests that a contracting carrier may incur liability where a general average situation is deemed to have occurred if it fails to provide information to its customer about the concrete circumstances that give rise to the general average situation, even when the contracting carrier holds no information about said circumstances.

What should companies do if they have claims against a bankrupt tortfeasor?
WSCO Advokatpartnerselskab
  • Insurance
  • Denmark
  • 18 August 2020

This article provides options for companies which have a claim against a bankrupt tortfeasor and discusses Section 95 of the Insurance Contracts Act, which gives creditors the right to raise a claim directly against a tortfeasor's insurer. However, this right is forfeited if the applicable deadlines are not met.

Putting out fires: hot work and insurance coverage for fire damage
WSCO Advokatpartnerselskab
  • Insurance
  • Denmark
  • 30 June 2020

The execution of 'hot work' (ie, work which carries the risk of fire) often results in fires. Therefore, anyone who executes or arranges for the execution of hot work should be aware of how damages and possible liability for damages can be avoided. Hot work insurance policies should also be thoroughly examined. This article highlights the rules that craftspeople, contractors and clients must consider before and during the execution of hot work, as well as the associated liability issues.

Smooth sailing? Jurisdiction agreements in yacht insurance contracts
WSCO Advokatpartnerselskab
  • Insurance
  • Denmark
  • 23 June 2020

A new ruling determines that prorogation of jurisdiction can be validly agreed in a yacht insurance contract, even where consumer interests are concerned and the contract requires that legal proceedings be brought in a court in the insurer's home country. Pursuant to the ruling, a private policyholder who is an EU citizen and purchases boat insurance in another EU country is bound by the jurisdiction agreement in the insurance contract.

Unloading trailers: who bears responsibility under CMR?
WSCO Advokatpartnerselskab
  • Shipping & Transport
  • Denmark
  • 20 May 2020

A recent Maritime and Commercial Court case examined a claim for damage to goods during unloading under the Convention on the Contract for the International Carriage of Goods by Road (CMR). The court found that a CMR carrier is not liable for damage in connection with the unloading of goods irrespective of whether the unloading was performed by a driver, as drivers in such instances may be deemed to act on behalf of consignees.

Cargo claim heard in Denmark despite exclusive jurisdiction agreement referring to High Court in London
WSCO Advokatpartnerselskab
  • Shipping & Transport
  • Denmark
  • 08 April 2020

The Danish High Court recently addressed whether legal proceedings against a Danish shipping company, which had contracted to carry containers from China to Copenhagen, could proceed in Denmark irrespective of the fact that the claimant and the shipping company had agreed that the dispute should be heard exclusively by the UK High Court. The Danish High Court decided that the case could nevertheless be heard in the substance by the Danish courts.

Theft of tobacco from trailer not covered under cargo insurance as transport had not commenced
WSCO Advokatpartnerselskab
  • Shipping & Transport
  • Denmark
  • 22 January 2020

The Maritime and Commercial Court recently examined whether the theft of tobacco products was covered under the cargo policy agreed between a wholesaler and a carrier and whether the wholesaler's insurer was liable. It is clear from the judgment that cargo insurance coverage under the Danish Extended Conditions requires that the transport of insured goods commences immediately after loading onto the means of transport has taken place.

Temperature deviation and gross negligence under CMR
WSCO Advokatpartnerselskab
  • Shipping & Transport
  • Denmark
  • 08 January 2020

A recent Maritime and Commercial Court decision concerned carrier liability for temperature damage to a consignment of pharmaceuticals. The court's judgment signals that carriers must make quick decisions and implement actions to respond to temperature alarms in order to avoid unlimited liability.

Direct action, choice of law and time limitation
WSCO Advokatpartnerselskab
  • Shipping & Transport
  • Denmark
  • 31 July 2019

The Maritime and Commercial High Court recently examined a direct action claim against a Dutch freight liability insurer in a carriage of goods by road dispute involving a bankrupt carrier and a Danish manufacturer of cigarettes. The premise relied on by the court in this matter, if not appealed, may seem ripe to undermine some insurance policies between liability insurers and international carriers, including proper law provisions and time limitation under a policy.

Sign on the dotted line – importance of signing transport documents
WSCO Advokatpartnerselskab
  • Shipping & Transport
  • Denmark
  • 29 May 2019

A recent Maritime and Commercial Court decision in which a carrier was found liable for a missing delivery underlines the importance of getting transport documents signed as a receipt for goods delivered. A signed transport document is the carrier's proof of delivery. Hence, in case of doubt as to whether delivery has taken place, the transport document serves as compelling evidence.

Carrier subject to unlimited liability for theft of products from trailer
WSCO Advokatpartnerselskab
  • Shipping & Transport
  • Denmark
  • 20 March 2019

A recent Maritime and Commercial Court ruling highlights that a carrier may be exposed to unlimited liability for loss resulting from a failure to adhere to a shipper's demands regarding special precautions, even when these demands do not follow from the parties overall cooperation agreement. The case concerned PS4 consoles which were stolen during transportation after the exporter failed to inform the carrier that the consignment was theft sensitive.

Commercial manager not responsible for bunker oil pollution damage under bunker convention
WSCO Advokatpartnerselskab
  • Shipping & Transport
  • Denmark
  • 20 February 2019

The International Convention on Civil Liability for Bunker Oil Pollution Damage introduced a strict liability regime for bunker oil pollution damage. However, the Maritime and Commercial Court recently ruled that shipbrokers, chartering brokers and commercial managers that provide cargo, commercial contracts or commercial agreements but are not involved with a ship's technical operation may fall outside the scope of liable parties under the convention.

Carrier not liable for release of consignment without bill of lading
WSCO Advokatpartnerselskab
  • Shipping & Transport
  • Denmark
  • 30 January 2019

A recent Maritime and Commercial Court decision demonstrates that in order to obtain compensation after cargo has been delivered without the presentation of a bill of lading, it must be proven that the release of said cargo resulted in financial loss. Therefore, in order to pursue compensation from a carrier or agent, a seller that has received no payment from the buyer for the delivery of a consignment may need to prove that the buyer had not already obtained title to the goods delivered before their release.

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