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The Yangtze Xing Hua: Court of Appeal upholds LMAA decision that the term “act” in the phrase “act or neglect” in clause 8(d) of the ICA does not require fault, breach or neglect.

Letters of Indemnity – Best Practice | BDM Blog | BDM LawThis was a further appeal to the Court of Appeal concerning the decision of an LMAA tribunal that the term “act” in the phrase “act or neglect” in clause 8(d) of the ICA does not require fault, breach or neglect. The Court of Appeal agreed with both the Tribunal and the High Court that the term “act” in the phrase “act or neglect” in clause 8(d) of the ICA is to be given its broader meaning and is not confined to culpable conduct. This decision also confirms the role of the ICA as a rough and ready mechanism to apportion liability, where determination of the cause of the underlying cargo claim is key and where fault is not a requirement.

Please click here to read our article on the underlying LMAA arbitration award and High Court judgment.

The full case citation is: Transgrain Shipping (Singapore) Pte Ltd V Yangtze Navigation (Hong Kong) Co Ltd [2017] EWCA Civ 2107.

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