SUNDKROGSGADE 5, DK-2100 KØBENHAVN ØCVR. NR: DK TH INTERNATIONAL CARGO CONFERENCE PRACTICAL ASPECTS OF DANISH AND SCANDINAVIAN RECOVERY LAW AN OVERVIEW June 2016 by/attorney Henrik Thal Jantzen of the law firm Kromann Reumert, Copenhagen

SIDE SIDE 2 DENMARK – HIGHLIGHTS Small country – 5.5m citizens The Kingdom of Denmark was established in the 8 th century What to know about Denmark?

SIDE SIDE 3 CARLSBERG ​ Carlsberg Group – one of the largest breweries in the World

SIDE SIDE 4 LEGO ​ The famous toy brand

SIDE SIDE 5 A.P. MOELLER - MAERSK ​ One of the World’s largest shipping companies - includes Maersk Line

SIDE SIDE 6 DENMARK – FROM A LEGAL PERSPECTIVE Part of Scandinavia (Sweden, Norway, Finland and Denmark) Historically, uniform legislation among the Scandinavian countries, in particular in relation to Maritime and transport legislation Insurance legislation Inter Scandinavian procedural convention

SIDE SIDE 7 PROCEDURAL REGULATION ​ Member of the European Community (EEC) – together with Sweden and Finland EEC Convention on Jurisdiction and Enforcement of Judgment (Brussels I Treaty)

SIDE SIDE 8 CARGO RECOVERY – AVIATION ​ Aviation – claim Scandinavian countries have ratified the Montreal Convention (limitation at present SDR 19 per kg) Air carrier’s liability as per these provisions applies from the period when the goods are in the custody of the air carrier (in or outside the airport)

SIDE SIDE 9 CARGO RECOVERY – MARITIME CLAIM ​ The Danish Merchant Shipping Act applies and incorporates The Hague Visby Rules The Brussels Convention 1952 on arrest of vessels Part of the Hamburg Convention not in conflict with the Hague Visby Rules The Brussels Convention 1910 on Collisions between Vessels etc. N.B. - Rotterdam Rules have not been ratified

SIDE SIDE 10 CARGO RECOVERY UNDER BILLS OF LADING The cargo interests generally hold a strong position in Denmark Danish jurisdiction applies mandatorily, if place of receipt or place of delivery is within Danish territories, despite unfavourable jurisdiction clauses in Bs/L The carrier is not entitled to exempt liability in general for deck cargo The period of the carrier’s liability is from the carrier in the port of loading takes the goods into custody for carriage until delivery at the destination (i.e. not tackle-to-tackle)

SIDE SIDE 11 WHEN ARE THE GOODS CONSIDERED IN THE CUSTODY OF THE LINER CARRIER? ​ In port of receipt: ​ Supreme Court judgment (ref. U ): ​ Container not to be considered in the custody of the carrier (liner company) upon the shipper’s placing of the container in the container terminal, before the receipt of the container has been confirmed by the carrier. ​ Conclusion: ​ The carrier is not liable for theft of container from the terminal

SIDE SIDE 12 WHEN ARE THE GOODS CONSIDERED IN THE CUSTODY OF THE LINER CARRIER? ​ In the port of delivery: ​ Supreme Court judgment (ref. U ): ​ Containers not to be considered delivered to the consignee when placed at the container terminal in order to be picked up by the B/L holder. ​ Conclusion: ​ The carrier is liable for theft of the container from the terminal

SIDE SIDE 13 CARGO RECOVERY UNDER BILLS OF LADING Performing carrier and contractual carrier (i.e. a NVOCC) are jointly and severally liable vis-à-vis the cargo interests Court surveyors can be appointed and court survey carried out within short notice in order to establish verified evidence as to the cause and extent of cargo damage Bs/L issued pursuant to a charter party will be considered as Bs/L claims, provide the Bs/L have been negotiated

SIDE SIDE 14 CARGO RECOVERY – LEGAL PROCEEDINGS Danish Maritime and Commercial Court has specific experience in handling disputes on maritime and transport matters The judges consist of one legal judge and two judges with specific skills and experience on maritime and transport matters The period for a court trial from the time the proceedings have been instituted until final judgment has been delivered, is approx months, depending on the complexity of the matter

SIDE SIDE 15 CARGO RECOVERY – LEGAL PROCEEDINGS In order to institute proceedings, a copy of the most relevant documents suffice (B/L, commercial invoice, claims adjustment, survey report) Proceedings are considered instituted and claim protected against time-bar as from the day the claim form has been submitted to the court (and does not depend on service of the claim form) A court fee of 1.2%, capped to DKK 75,000(approx. USD 12,000) of the claim amount is due when claim form is submitted

SIDE SIDE 16 SECURITY FOR CARGO CLAIMS ​ A. Arrest of vessels (in Danish jurisdictions) Arrest requires that the registered owner of the vessel is liable (demise charter creates problems) The performing carrier is, under Danish law, liable towards the cargo claimant Counter security required for arresting a vessel is limited to an amount equivalent to five days’ loss of hire of the vessel (based on an estimated T/C rate) A court fee of 0.5% of the claim amount is due upon submitting application for arrest

SIDE SIDE 17 SECURITY FOR CARGO CLAIMS ​ B. P&I Undertaking P&I undertaking acceptable and prevents arrest actions, if provided by a reputable P&I club The Danish Merchant Shipping Act recognises direct action claims against the liability underwriters (P&I Club), either (1) provided the owners are in bankruptcy or (2) provided the claim has been established in form of a written settlement or a final judgment

SIDE SIDE 18 FEE CALCULATION Assessment of legal fee mainly based on time spent and fixed hourly rates Contingency arrangement not allowed in Denmark Fixed fee, blended rate or other fee arrangement can – when deemed appropriate – be arranged

SIDE SIDE 19 FEE CALCULATION The hourly rate is merely a guidance as we always seek to find a commercial balance fee amount, taking all aspects into consideration, including Complexity Outcome Volume involved (in particular reduced fee in case of small claims)

SIDE SIDE 20 OUR TEAM Henrik Thal Jantzen Partner Tel Mobile Jakob Rosing Partner Tel Mobile Morten Schou Kierulff Attorney Tel Mobile

SIDE SIDE 21 OUR TEAM Johan Lønberg Attorney Tel Mobile Thomas Åkerstrøm Nielsen Assistant attorney Tel Mobile Rudi Skjødt Jensen Assistant attorney Tel Mobile