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Classification societies’ liability to third party

In a judgment rendered on 25 June 2014, the Court of Appeal of Genoa ruled on the complex issue of liability in tort of classification societies. The case involved a claim brought against the classification society by the charterers of a ship stated to be in class in the charterparty.  The ship, after completing the loading of the goods, was arrested and detained as part of a Port State Control which had shown serious deficiencies. The charterers were forced to discharge and tranship the goods on another vessel. In the first instance case, the Tribunal of Genoa (the judgment is published in Dir. Mar. 2011) found the classification society liable on the ground that the charterers had relied on the classification of the ship to enter into the charterparty. The Court of Appeal agreed with the first instance judge that classification societies may in principle be liable to third parties who relied on certifications later proved to be erroneous; however the Court reversed the first instance judgment holding that no evidence was available that prior to the conclusion of the charterparty, the charterers had made inquiries about the status of the ship’s class.

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