Case

   Xiamen Lipeng Shipping Co., Ltd. and China Continent Property & Casualty Insurance Co., Ltd. Ningbo Branch vs. China Shipping Development Co., Ltd. Tramp Co.

   -Dispute over ship collision 

  Case No. & Date of Judgment

   1. First Instance: (2012) XiaHaiFaShiChuZi No.61; 20 June 2014

   2. Second Instance: (2014) MinMinZhongZi No.1103; 16 March 2015

   3. Retrial: (2017) ZuiGaoFaMinZai No.62; 17 August 2017 

  Summary of Judgment

   The case concerns with a dispute arising from the collision between M/V "LI PENG 1" and M/V "BI HUASHAN". The Court comprehensively analyzed the causation of the sinking of "LI PENG 1" and found that one of the causing factors was the increased angle of list to starboard due to improper securing of containers, and thereby distinguished the liability of "BI HUASHAN" for the collision from her liability for the sinking of "LI PING 1" and determined different apportionments. Based on the facts that both parties were at fault and liable in the collision , and that each party had established a limitation fund of liability for maritime claims , the Court held that the principle of "offset before compensation" should apply, and hence determined that each party's losses should be offset first before compensated from the fund established by the other party. 

  Note

   Full text of the first instance judgment could be referred to on the official website of Xiamen Maritime Court (Chinese version) (http://www.xmhsfy.gov.cn/); Full texts of the second instance and the retrial judgments could be referred to on the China Judgements Online website (http://wenshu.court.gov.cn/).