MV “Gloria Confidence”-judgement 22 December 2023

Oslo, 16 January 2024:

On 22 December 2023, Oslo District Court ruled in favour of a fertilizer producer and its cargo insurers in a NOK 80 million claim arising out of the MV "Gloria Confidence" incident.

Gjelsten Herlofsen Law, by partners Frithjof Herlofsen and Børge Alsvik, successfully argued the case on behalf of the cargo interests.

The MV "Gloria Confidence" was en route from Norway to Thailand with a cargo of abt. 40,000 MT fertilizers when she encountered severe weather conditions off Denmark in January 2022. A hole in the hull, caused by the port anchor striking the ship's side, led to significant water ingress in the foremost cargo hold. This resulted in damage to 8,000 tons of the cargo.

The Court held that the Owners had failed to substantiate why the anchor was not safely secured in the home position and therefore held the Owners liable for the cargo damage in accordance with the Norwegian Maritime Code Section 275.

The Court made several noteworthy observations concerning the stringent burden of proof resting on shipowners when claiming exemption from liability for cargo damage under Sections 275 and 276 of the Norwegian Maritime Code, which aligns with the provisions of the Hamburg and Hague Visby Rules. The judgment reaffirms that this stringent burden of proof is coupled with a risk-based obligation for shipowners to secure evidence, and that Norwegian courts will place great emphasis on the shipowners' failure to take reasonable measures that could clarify the cause of damage.

The cargo interests were awarded approx. USD 8 million, inclusive of interests and legal costs. The deadline for filing an appeal has not yet expired.

You can read the judgement here.