Contship Containerlines Limited v. PPG Industries, Inc.

Contship Containerlines Limited (Contship) (plaintiff) chartered a vessel, the Contship France, owned by Conti Zweite Cristallo Schiffarhrts GMBH & Co (Zweite) to transport combustible goods manufactured by PPG Industries, Inc. (PPG) (defendant). PPG loaded four containers of the goods on the Contship France. The containers containing the goods were in drums that were placed in the vessel’s cargo hold. The Contship France then set sail for its destination. While the ship was docked in Tahiti, an explosion occurred in the area where the goods containers were placed. Contship and Zweite filed claims against each other concerning their respective losses before an arbitration panel in London pursuant to their charter agreement. Contship and Zweite also filed claims against PPG claiming that the goods manufactured by PPG caused or contributed to the explosion and fire. In response to PPG’s request for production of documents, Contship and Zweite produced some but not all documents requested, citing confidentiality attached to the arbitration and work-product protection in withholding the rest of the documents. The documents PPG requested included documents generated during the arbitration involving Contship and Zweite. Neither Contship nor Zweite produced an express confidentiality agreement covering the arbitration, but both contended that the arbitral obligation of confidentiality was implied under English law as part of their agreement to arbitrate. PPG sought an order to compel production of the withheld documents.