Royal & Sun Alliance Seguros Uruguay SA, an insurance company acting under an assignment of rights, claimed for a missing cargo of perfumes carried from Barcelona, Spain, to Montevideo, Uruguay, in three containers. The cargo was received by Marzcargo FSL, a freight forwarder, which in turn delivered the cargo to ZIM Ltda for carriage on board the MV CMA CGM Rodin, operated by CMA CGM. When the ship arrived at Santos, Brazil, the master noted that one of the containers did not have a seal and ordered its discharge for inspection. The survey revealed that three boxes were missing. This container was sealed again and carried on board the MV Libra New York, owned by CSAV SA. At Montevideo, it was reported that the cargo was replaced by bags of sand. The lawsuit was filed against Marzcargo FSL, ZIM Ltda, and the actual carriers, CMA CGM and CSAV SA.

ZIM Ltda claimed the benefit of limitation of liability of 666.67 units of account per package established in art 4.5.a of the Hague Rules, as modified by the 1968 and 1979 Protocols (the Hague-Visby Rules and SDR Protocol). The first instance Court rejected this defence, stating that the clauses establishing limitation did not apply to the plaintiff, who acted under an assignment of rights. The Court also applied the estoppel doctrine, observing that ZIM Ltda had affirmed that it did not have any contractual relationship with the insured/assignors. Hence, the limitation clause applied only to ZIM Ltda and the co-defendants. The Court ordered the defendants, jointly and severally, to pay compensation for the value of the cargo at origin and interest only, but not for loss of profits, according to art 171 of the Code of Commerce (CCom). The plaintiff, as well as ZIM Ltda, CMA CGM, and CSAV SA, appealed.

Held: The Court of Appeal (CA) modified the decision. The CA agreed with the lower Court regarding the inapplicability of limitation of liability. On the plaintiff's appeal, the CA increased the quantum of the compensation. It considered that, in addition to the value of the cargo, the freight and a proportional price of the insurance premium must also be compensated. The plaintiff had claimed the CIF value of the cargo at the destination (art 4.5.b of the Hague-Visby Rules), which supposed a higher value than the CA considered as the expected profits. The CA observed that arts 222 and 223 of the CCom contain general principles of compensation, which also require compensation for loss of profits. Therefore, the CA ordered ZIM Ltda to pay for the full amount that the plaintiff had paid to the insured.