The laden “Happy Aras” grounded off Turkey causing damage to ship and cargo. A subsequent GA Adjustment found cargo’s contribution to be some USD1.2m, which Owners sought from the Defendant Average Guarantors. The Court found that the Master made multiple serious errors on the voyage, removed safety checks and kept misleading records, constituting systemic failings and unseaworthiness. Owners failed to show proper research before assigning command to the Master and could not demonstrate the necessary due diligence in compliance with the B/L and applicable Hague Rules. Consequently their claim under the Average Guarantee failed.

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The dispute arose from delay caused by rejected holds after NOR, with owners asserting an implied obligation on charterers to arrange reinspection, while charterers argued laytime remained suspended until acceptance. The tribunal held that inspection and acceptance lay on charterers’ side of the fence and that an implied term was necessary for commercial coherence, requiring charterers to exercise due diligence to arrange reinspection within a reasonable time. Although immediate reinspection was not required (regardless of practical constraints), charterers were found in breach for failing to take reasonable steps once the vessel was ready, and laytime resumed after a reasonable period had elapsed.

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