Stolt-Nielsen loses appeal on MSC Flaminia fire

The Court of Appeals upheld the ruling on all aspects of liability the US District Court for the Southern District of New York on the MSC Flaminia with Stolt Tank Containers and Deltech found 45% and 55% at fault respectively. The Court of Appeals affirmed the ruling by two to one.

Stolt-Nielsen said it was “disappointed” with the decision of the appeal court and noted it included a dissenting opinion. The company said it was considering further appeals and mitigations.

In the meantime, the company has made a loss provision of $155 million, which net of tax will have a $115 million impact on profit for its second quarter financials.

Stolt Tank Containers had 29 tank containers on board the MSC Flaminia when a fire broke out in the cargo hold number four while on 14 July 2012. Three of the containers from Stolt Tank Containers, of which Deltech was the shipper, were stored in hold number four.

The fire resulted in an explosion which left two crew members dead and a third one missing. The remaining crew were forced to abandon ship in the middle of the Atlantic Ocean some 1,000 nm from the nearest land.

In 2013 the owner, manager and operator the vessel filed counter and cross claims that the three tank containers were the cause of the fire and that Stolt Tank Containers “did not adequately warn of the inherently dangerous nature of the cargo”.

Related:MSC Flaminia fire exposure warning for tank container operators

The US District Court for the Southern District of New York ruled against Stolt-Nielsen and Deltech, and this ruling has now been upheld.