
Case Summaries
Holyhead Marina Ltd v Farrer & Ors (Emma) [2020]
“Further to the destruction of Holyhead Marina by Storm "Emma" in 2018, the claimant lessee in anticipation of claims totalling some f 5M by owners of the damaged craft sought a limitation of its liability to f 550k pursuant to s.191 of the Merchant Shipping Act. The defendant owners (i) denied the claimant's right to limit its liability not being the owner of a "dock" and (ii) alleged that in any event such right would be lost because the loss and damage resulted from a personal act or omission of the claimant committed recklessly and with knowledge that such damage would probably result pursuant to Art.4 of the Limitation Convention. The claimant was successful in striking out item (i) in the Defence, as the Court held that the pontoons forming the Marina may be described as "landing places", "jetties" or "stages" thus falling within the extended statutory definition of "dock". Despite finding it improbable that the requisite "actual knowledge" could be established because this demands a high hurdle, the Court did not strike out (ii) prior to trial as it had "just a real prospect of success".”
Splitt Chartering APS & Ors v Saga Shipholding Norway AS & Ors [2020]
“Further to €55 M damage caused to RTE's underwater electricity cable by the anchor of the barge STEMA BARGE II, three related companies, respectively her Owners, Charterers and Operators, claimed to limit their liabilities to £5.5 M based on tonnage. Disputes arose as to Stema UK's qualification as "operator of the ship" and its entitlement to limitation pursuant to the Limitation Convention 1976. in the absence of authority on the meaning of operator or manager and taking into account the difference between conventional merchant ships and dumb barges, the Court was satisfied with the evidence that the limited services (typical of managers) offered by Stema UK were sufficient to make it appropriate to describe it as the "operator" of the barge. The company was therefore entitled to limit its liability.”
Qatar National Bank (QPSC) v Force India, The Owners of the Yacht [2020]
“In January the Court ordered sale of the vessel "Force India" in respect of sums secured by a mortgage. Shortly afterwards, despite the advanced state of the sale procedure, the Claimant applied to set aside the sale Order, in light of an agreement with a third party who had committed to repay the loan. The Court held that in the circumstances, the sale was no longer required and reluctantly rescinded the Order, overcoming its concerns for the reputation of the Admiralty Marshal's sales in the market, only because of the "unusual and perhaps exceptional circumstances".”
Qatar National Bank QPSC v Yacht Force India, Owner of the [2020]
“To enforce a mortgage on the superyacht "Force India", the Claimant bank commenced in rem proceedings and arrested the Vessel at Southampton. The Owners acknowledged service and defended the claim. A trial of the action was fixed for January 2020. The Owners did not attend and the Court in those circumstances was entitled to and did, strike out the Defence. Nevertheless, the Court required the Claimant bank to prove its claim, given the risk that others having in rem claims against the Vessel might otherwise be prejudiced. In the event the Claimant bank did prove its claim and obtained judgment, following which ancillary orders, such as appraisal and sale, might be made.”
Alize 1954 & Anor v Allianz Elementar Versicherungs AG & Ors [2019]
“Following a grounding on leaving a port, cargo interests contested Owners' claim for GA and salvage contribution. The Court found that Owners' passage plan was defective and the Master's decision to leave the fairway was imprudent. The former was held to be the operative cause, such that the Vessel was unseaworthy pursuant to Art. III r.1., depriving the Owners of an Art. IV r. 2 (a) defence and their claim to contribution. Although irrelevant to the outcome, the Judge dismissed cargo interests' argument that following "Volcafe", the burden of dis-proving causative unseaworthiness under Art. III r.1 lay on the carrier, stating that in his judgment, that decision was restricted to Art. III r.2.”
Nautical Challenge Ltd v Evergreen Marine (UK) Ltd [2019]
“Last year the Court of Appeal ruled that responsibility for the collision between Alexandra I (container ship) and Eversmart (tanker) was to be apportioned 80:20. The claims totalled some USD36m. The Admiralty Court recently assessed recoverable damages at USD9.3m for Alexandra I and USD2.53 for Eversmart. The Court declined to award extended loss to Alexandra I on the basis of "impecuniosity" of her Owners (said to cause delay to repairs, causing loss of market and eventual judicial sale). The owners had failed on the facts to establish the necessary causation between collision and delay/market collapse.”