Newsletter 16 SEA VENTURE Time for Change? U.S. Maritime Law Amendments Deck Carriage - Exclusion and Indemnity Clauses Through Transport - Another U.S. Train Wreck Decision Change at the Top Remoteness of Damage - “Achilleas”and “Sylvia” Loss Prevention Materials SeaVenture16_AW13_approved:Layout 1 21/9/10 11:15 Page 2 CONTENTS 4Singapore Arrest – A Tale of Two Vessels 4Time for Change? U.S. Maritime Law Amendments 5Piercing the Corporate Veil – More Liberal U.S. Test 5Deck Carriage – Exclusion and Indemnity Clauses 6Chilean Earthquake – Wreck Removal 6To Mingle or not to Mingle – Co-Mingling/Blending Cargoes 7Through Transport – Another U.S. Train Wreck Decision 8Change at the Top 9Piracy – an Off-Hire Event? 9Alleged Oral Variation of Charter and Misdescription 10Master's Behaviour – Hague-Visby Defence? 11Steamship Board members honoured at Seatrade Awards 2010 12Maintenance and Cure – Punitive Damages To be Capped? 12Sampling – A Guide to Reducing Contamination Claims 13Convention Update 14Contractual Negotiations – Caution Required 14Remoteness of Damage - “Achilleas” and “Sylvia” 15Piracy – Is Cargo Lost? 15U.S. Coast Guard Investigations – “Parties-in-Interest” 16Loss Prevention Update 16Withdrawal – Remuneration for Continuing Service? 17Consecutive Voyage Charter - Termination Damages 17Payment for Bunkers – Are Owners Responsible? 18Profiting from Breach 18The Philippines – The Amended Migrant Workers Act 19SIMSL News 20Steamship Three Peaks Team Support Sailors’ Society 2 EDITORIAL TEAM Naomi Cohen Malcolm Shelmerdine Richard Allen Paul Amos Sea Venture is available in electronic format. If you would like to receive additional copies of this issue or future issues in electronic format only please send your name and email address to seaventure@simsl.com. Feedback and suggestions for future topics should also be sent to this address. CONTACT For further information, please contact: Steamship Insurance Management Services Limited Aquatical House 39 Bell Lane London E1 7LU Telephone: +44 (0)20 7247 5490 and +44 (0)20 7895 8490 Website: www.simsl.com 4 6 6 7 SeaVenture16_AW13_approved:Layout 1 21/9/10 11:15 Page 3 3 INTRODUCTION In this issue we welcome the Club’s new Chairman, Mr Heinrich Schoeller, and also recognise the contribution of Mr Otto Fritzner who has been the Club’s longest serving Chairman. Change at the helm has come at a time when Steamship’s free reserves are at a record high, placing the Club in the strongest financial position in its history. The enormous contribution that the Chairmen and Club Directors make to the good governance and running of the Club deserves proper recognition and we are very grateful to the Board for their commitment to the Association’s future. Previous editions of Sea Venture have identified the wider industry role of the Clubs beyond the “normal” underwriting and claims services they provide. Topical examples since the last issue of Sea Venture include developments surrounding the Deepwater Horizon, sanctions now affecting trade with Iran and Iranian interests and problematic amendments to the Filipino Migrant Workers Act. As to the Deepwater Horizon, the initial political response to this major oil spill was that Congress would require a complete overhaul of the U.S. Oil Pollution Act with fundamental changes to its structure and liability provisions. However, apart from requiring legislative reviews every three years the draft bills all now appear to leave existing limits for vessel