M.V. “ZHONG RAN 39” owned by Applicant shipowner Zhongran and the North Korean M.V. “KUMSAN” collided in the waters of Lianyungang, causing loss to all parties concerned. In respect of all maritime claims for non-personal injury or death caused by collision of ships which could limit the liability for compensation, Zhongran should apply to the court for the establishment of a limitation fund for maritime claims liability. The amount of the fund should be the RMB amount converted by 254,508 Special Drawing Rights and the interest on such amount. Dissenters Ouya and Kumsan raised objections. Ouya was the owner of the goods carried by M.V. “KUMSAN”, which held that the collision between M.V. “ZHONG RAN 39” and the anchor ship was obviously caused by its “reckless act or omission, knowing that it may cause damage”, and was not entitled to limitation of liability, and according to the law, the limitation of liability for maritime claims of M.V. “ZHONG RAN 39” should be applied to the Maritime Code Article 210 like that of M.V. “KUMSAN”, and the amount of maritime liability fund advocated by Zhongran was wrong. Kumsan also held that the accident caused the sinking of M.V. “KUMSAN”, and involved the floating, removal and demolition of M.V. “KUMSAN” wreckage. According to the Provisions of the Supreme People’s Court on Several Issues concerning the Trial of the Cases of Ship Collision Disputes Article 9 and the Maritime Code Article 207, the fee of salvage of shipwrecks should be handled separately from the fund established by Zhongran. The court held that (1) the application for the establishment of a limitation fund for maritime claims proposed by Zhongran was established, because the claims covered by the fund were not all claims caused by collision accidents, but non-personal casualty maritime claims that “can limit liability” according to the law, and the nature of the claims was qualified; According to the Several Provisions of the Supreme People’s Court on the Trial of Cases of Disputes over the Limitation of Liability for Maritime Claims Article 17, the limitation fund for maritime claims applied for by Zhongran could not cover maritime claims such as salvage of shipwrecks. However, it might cover the claim for recovery brought by the responsible person against Zhongran for the loss arising from maritime claims such as salvage of shipwrecks; in addition, the case did not involve substantive disputes ruling, it did not hear whether Zhongran could enjoy limitation of liability for specific maritime claims. (2) The limitation of maritime claims applied for by Zhongran should be governed by the Maritime Code Article 210 and should be the amount of RMB converted by the Special Drawing Rights of 509,016. Because according to the Regulations of the Ministry of Communications Article 5, “the maritime compensation limits of the ships involved in the same accident are applicable to the Maritime Code of the People’s Republic of China Article 210 or Article 3 of the regulation, the maritime compensation limits of other ships involved shall be equally applicable.” M.V. “KUMSAN” was Korean ship, not ship engaged in the port of transport or coastal operations in the People’s Republic of China, its maritime compensation limits should be applicable to the Maritime Code Article 210, therefore, the maritime compensation limits of M.V. “ZHONG RAN 39” should also be applicable to the Maritime Code Article 210.

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Shipping Subsidiary of China Marine Bunker Supply (Dalian) Co., Ltd. v. Dalian Ouya Trade Co., Ltd. et al.

  • Martin Davies,
  • Jiang Lin

摘要

M.V. “ZHONG RAN 39” owned by Applicant shipowner Zhongran and the North Korean M.V. “KUMSAN” collided in the waters of Lianyungang, causing loss to all parties concerned. In respect of all maritime claims for non-personal injury or death caused by collision of ships which could limit the liability for compensation, Zhongran should apply to the court for the establishment of a limitation fund for maritime claims liability. The amount of the fund should be the RMB amount converted by 254,508 Special Drawing Rights and the interest on such amount. Dissenters Ouya and Kumsan raised objections. Ouya was the owner of the goods carried by M.V. “KUMSAN”, which held that the collision between M.V. “ZHONG RAN 39” and the anchor ship was obviously caused by its “reckless act or omission, knowing that it may cause damage”, and was not entitled to limitation of liability, and according to the law, the limitation of liability for maritime claims of M.V. “ZHONG RAN 39” should be applied to the Maritime Code Article 210 like that of M.V. “KUMSAN”, and the amount of maritime liability fund advocated by Zhongran was wrong. Kumsan also held that the accident caused the sinking of M.V. “KUMSAN”, and involved the floating, removal and demolition of M.V. “KUMSAN” wreckage. According to the Provisions of the Supreme People’s Court on Several Issues concerning the Trial of the Cases of Ship Collision Disputes Article 9 and the Maritime Code Article 207, the fee of salvage of shipwrecks should be handled separately from the fund established by Zhongran. The court held that (1) the application for the establishment of a limitation fund for maritime claims proposed by Zhongran was established, because the claims covered by the fund were not all claims caused by collision accidents, but non-personal casualty maritime claims that “can limit liability” according to the law, and the nature of the claims was qualified; According to the Several Provisions of the Supreme People’s Court on the Trial of Cases of Disputes over the Limitation of Liability for Maritime Claims Article 17, the limitation fund for maritime claims applied for by Zhongran could not cover maritime claims such as salvage of shipwrecks. However, it might cover the claim for recovery brought by the responsible person against Zhongran for the loss arising from maritime claims such as salvage of shipwrecks; in addition, the case did not involve substantive disputes ruling, it did not hear whether Zhongran could enjoy limitation of liability for specific maritime claims. (2) The limitation of maritime claims applied for by Zhongran should be governed by the Maritime Code Article 210 and should be the amount of RMB converted by the Special Drawing Rights of 509,016. Because according to the Regulations of the Ministry of Communications Article 5, “the maritime compensation limits of the ships involved in the same accident are applicable to the Maritime Code of the People’s Republic of China Article 210 or Article 3 of the regulation, the maritime compensation limits of other ships involved shall be equally applicable.” M.V. “KUMSAN” was Korean ship, not ship engaged in the port of transport or coastal operations in the People’s Republic of China, its maritime compensation limits should be applicable to the Maritime Code Article 210, therefore, the maritime compensation limits of M.V. “ZHONG RAN 39” should also be applicable to the Maritime Code Article 210.