On 7 December 2005, the M/V Ziemia Lodzka (Ziemia) collided with M/V Vertigo (Vertigo) in the Great Belt of Denmark. Denmark has enacted the Brussels Convention for the Unification of Certain Rules of Law with respect to Collisions between Vessels 1910 (Collision Convention 1910). The Ziemia was owned by Ziemia One Ltd and managed by Polish Steamship Co, while the Vertigo was owned by Vertigo Maritime Inc and managed by Primal Shipmanagement Inc. Both ships sustained damage and the Vertigo ultimately sank. The cargo on board the Vertigo at the time of the collision was hot-rolled steel. The beneficial owners of that cargo, Magellan International Trading Co (Magellan), MAN Ferrostaal Inc (Ferrostaal) and Ranger Steel Supply Co (Ranger Steel) filed suit against both the Vertigo and the Ziemia and their respective owners and managers (collectively the defendant), to recover their damages.

The defendant then moved for partial summary judgment for a determination that the Collision Convention 1910 should apply entirely to the pending cargo damage actions. Ferrostaal and Ranger Steel argued that the application of the Collision Convention 1910 was improper and would work a manifest injustice insofar as it conflicted with US law concerning recovery by cargo claimants in maritime actions.

The court was asked to decide which law should apply: the Collision Convention 1910 or US law? The determination is critical because the Collision Convention 1910 provides for proportionate liability, while US law provides for joint and several liability. This difference may have a direct impact on the scope and manner of recovery allowed by the cargo claimants.

Held: The Collision Convention 1910 applies.

A determination of whether the Collision Convention 1910 or US law should apply requires a careful balancing of the interests implicated by the instant litigation including an analysis of the US law and public policy. The essential question is which body of law ‘has the most significant contacts with the matter in dispute’. After balancing several relevant interests of Denmark and the US, the court found that the interests of Denmark in the outcome of this litigation predominate. Thus, the court granted the motions by the Vertigo and the Ziemia for partial summary judgment and held that the Collision Convention 1910 applies in its entirety to the pending dispute.