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Admiralty Law Keyed to Maraist
Mediterranean Shipping Co. Geneva v. Pol-Atlantic
Citation:
229 F.3d 397, 2001 A.M.C. 1 (2000)Facts
In November 1997, the M/V MSC Carla, operated by MSC under a bareboat charter, departed from Le Havre, France bound for the United States. POL and ACL, as slot charterers, had placed containerized cargo on board under a Vessel Sharing Agreement (VSA) with MSC. During the voyage, the vessel encountered heavy weather and broke in half. The bow section sank with all its cargo, while the stern section was towed to safety. Following the casualty, MSC filed a petition for limitation of liability. Cargo owners filed claims against POL and ACL, who then filed third-party indemnity claims against MSC based on the VSA, which contained both a warranty of seaworthiness by MSC and an arbitration clause requiring disputes to be arbitrated in London under English law. MSC moved to stay these third-party claims pending arbitration, but the district court denied the motion, holding that the federal policy favoring concursus in limitation proceedings took precedence over arbitration.
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