This case arose out of a collision between the M/V Anangel Courage, owned by Alize Navigation Corp (the defendant), and the Min Jin Yu 05891, owned by Chen Maota and Zhan Yuren (the plaintiffs), near Diaoyu Island, China. The plaintiffs argued that the defendant was 100% responsible for the collision and demanded full compensation for their losses. The defendant submitted that it was not liable for more than 60% of the plaintiffs' losses.

Held: Liability apportioned between the M/V Anangel Courage and the Min Jin Yu 05891 at 70% and 30% respectively.

Alize Navigation Corp is registered in Liberia and the M/V Anangel Courage is flagged in Greece, so this case involves a civil dispute with foreign elements. Article 44 of the Law of the Application of Laws for Foreign-related Civil Relations of the PRC states that tort liability is governed by the lex loci delicti. Here, the collision took place in Chinese territorial waters and the parties chose the laws of the PRC. The court therefore held that the laws of the PRC governed.

Assessing the evidence and applying the COLREGS, the court found that both vessels were at fault​, but that the M/V Anangel Courage as the give-way vessel was primarily to blame. 

Articles 169(1) and 169(2) of the Maritime Code of the PRC (based on arts 4.1 and 4.2 of the Convention for the Unification of Certain Rules of Law with respect to Collisions between Vessels​ 1910 (the Collision Convention 1910), to which China acceded on 28 September 1994) provide that, if the colliding ships are all at fault, each ship shall be liable in proportion to the extent of its fault; if the respective faults are equal in proportion or it is impossible to determine the extent of the proportion of the respective faults, the liability of the colliding ships shall be apportioned equally. The ships at fault shall be liable for the damage to the ship, the goods and other property on board pursuant to the proportions prescribed in the preceding paragraph. Where damage is caused to the property of a third party, the liability for compensation of any of the colliding ships shall not exceed the proportion it shall bear.