This was an appeal and cross-appeal against the judgment of the Paris Court of Appeal, 21 May 1999. GEC-Alsthom Électromécanique and GEC Alsthom, who became Alsthom Energy and Alsthom France (the GEC group), entrusted Someport Walon, a freight forwarder, with the transport of several crates of cargo from France to India. The crates were transported to Antwerp and after port formalities had been carried out by Steinmann, were loaded on the deck of the Ethnos, chartered by Ahlron Maritime Transports Enterprise (the maritime carrier). The ship suffered a very strong storm and damage was noted on arrival. The GEC group, as well as its insurer, Compagnie d'Assurances Aériennes, Maritimes et Terrestres (CAMAT), sued Someport Walon, the maritime carrier, and Navitainer, the signatory of the bill of lading, for compensation for the damage. The Court of Appeal declared Someport Walon and the maritime carrier liable for the entire damage, and condemned them in solidum, in addition to Lloyd's of London and 36 other insurance companies.

Held: Partial reversal.

Having regard to art 4.5.e of the Hague-Visby Rules, the maritime carrier is deprived of the benefit of the compensation ceiling established by the Convention only if it is proved that the damage results from an act or an omission of the carrier which took place either with the intention of causing the damage, or recklessly and with awareness that damage would probably result.

In holding that the maritime carrier committed an inexcusable fault, the Court of Appeal found that the carrier loaded the cargo on deck, at the start of a long voyage subject to possible storms, without obtaining the authorisation of the shipper, or even notifying the shipper, without mentioning the mode of transport on the bill of lading, and while the cargo clearly bore the distinctive marks of water-sensitive material.

In so ruling, it was insufficient to establish that the carrier had acted recklessly and with awareness that damage would probably result from it. The Court of Appeal did not give a legal basis for its decision.

For these reasons, the Court of Appeal judgment is struck down and annulled, but only in that it declared Ahlron Maritime Transports Enterprise fully liable for the loss. The case and parties are consequently returned to the position in which they were before the judgment, and are referred to the Orleans Court of Appeal for the matter to be decided correctly.