4 CMA CGM Libra: The Case
On May 18th, 2011, the post-Panamax container vessel, CMA CGM Libra grounded when leaving the port of Xiamen. Following the grounding, owners of CMA CGM Libra declared General Average for salvage costs. 92% percent of the cargo interests paid their contribution in GA. Approximately 8% of cargo interest refused to pay their share, claiming that the vessel was unseaworthy by reason of owner’s actionable fault. This disagreement led to a legal dispute between the vessel’s owners (the claimants) and the cargo interests (the defendants). The case was initially heard in the UK Admiralty Court, subsequently appealed to the Court of Appeal, and ultimately brought before the Supreme Court. This paper focuses on the Supreme Court's judgment, but to provide context, the decisions of both the Admiralty Court and the Court of Appeal will also be briefly reviewed.