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Hague-Visby, fire, damage, general average Home Publications Articles To what Extent are Owners Liable for a Crew Member’s Wrongful and Reckless Acts? To what Extent are Owners Liable for a Crew Member’s Wrongful and Reckless Acts? Publications Steamship Mutual Published: June 15, 2018 Contact author Download article pdf Image In Glencore Energy UK Ltd and Another v Freeport Holdings Ltd (The “Lady M”) [2017] EWHC 3348 (Comm) the High Court has decided that a shipowner can rely on the fire defence in the Hague-Visby rules even in a case where the fire was started deliberately by a ship’s officer. Background While on a voyage from the Black Sea to the U.S. Gulf with a cargo of fuel oil, the “Lady M” suffered an engine room fire, and her Owners entered into a Lloyds Open Form salvage contract to have the ship towed to Las Palmas for repairs. It was discovered that the fire had been started deliberately by the chief engineer, who was said to be suffering from stress. Owners declared general average. The cargo owners, Glencore, incurred a liability towards the salvors, and they commenced proceedings against Owners for an indemnity. This was on the grounds of an alleged breach of the contracts of carriage evidenced by the bills of lading, alternatively in bailment. Owners counter-claimed for General Average contributions. The Court considered two preliminary issues, based on facts that were agreed between the parties: whether the conduct of the chief engineer constituted barratry, and; whether Owners could rely on Hague-Visby Rules Article IV Rule 2(b) (the fire defence) when the fire was started deliberately, or Rule 2 (q) (any other cause arising without the actual fault or privity of the owner or the without the fault or neglect of the agents or servants of the carrier) in defence to cargo’s claim. Decision First Issue – did the conduct of the chief engineer constitute barratry? The Court considered the Marine Insurance Act 1906 definition of bar
To what Extent are Owners Liable for a Crew Member’s Wrongful and Reckless Acts?
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