ITIC reimburses surveyor accused of negligence leading to ferry damage

International Transport Intermediaries Club (ITIC) has reimbursed a marine surveyor accused of negligence by the owner of a ferry which sustained significant machinery damage while being towed to a shipyard.

The ferry, which operated in North American waters, was due to be towed to a shipyard to undergo a refit. A marine surveyor was engaged by the shipyard to undertake a ‘fit for tow’ survey and to provide a certificate of approval confirming that the towage arrangements between the tug and the ferry were satisfactory.

The surveyor completed his survey and issued the certificate of approval. Three days later, however, the ferry took on water during the course of the tow and sustained considerable damage to its main machinery compartment. The owner of the vessel brought proceedings against the shipyard, the tug company and the marine surveyor for repair costs of US$750,000.

The owner alleged that the surveyor had been negligent in confirming that all watertight openings were closed, whereas expert evidence suggested that water had entered the vessel via open air vents. The surveyor maintained that these air vents were a rarity, that it was outside the scope of the survey to inspect them, and that liability should fall on the company undertaking the tow.

Mediation proceedings took place at which the owner acknowledged contributory negligence on its part and agreed to reduce its claim to US$500,000. All three defendants, including the marine surveyor, contributed to a settlement in this amount.


ITIC is managed by Thomas Miller. More details about the club and the services it offers can be found on ITIC’s website at www.itic-insure.com



For more information:
Charlotte Kirk
ITIC
Tel. +44 (0)20 7338 0150
Fax. +44 (0)20 7338 0151
charlotte.kirk@thomasmiller.com

Court rejects €1.56m claim against marine surveyor accused of poor stowage

International Transport Intermediaries Club (ITIC) has warned that the wording of instructions can potentially widen the scope of liability for marine service providers, citing the recent case of a marine surveyor sued for €1.56m for alleged poor onboard stowage of a cargo.

The marine surveyor in Germany was engaged by charterers to attend the loading of a cargo and to report on any damage caused by the stevedores. The emailed instructions from the charterer contained the following provisions:

“We hereby order the following: supervision of the loading/preloading survey; reporting of eventual damages to the coating or the material - and time of damage; reporting of negligence while handling the material and loading; detailed documentation, with photos, of the loading operations; no continuous supervision will be necessary, only during the important moments (commencement of loading operations - change of shift – securing of the cargo).”

Loading and lashing of the cargo was completed and the vessel sailed. Three days later there was a loud noise from the cargo hold and the ship developed a 30-degree list. The master reduced the list by ballasting and diverted to a port of refuge. The cargo was discharged, sorted on the quay, reloaded, lashed and secured. About 600 tonnes of damaged cargo was left behind. Over ten days later, the ship resumed its voyage.

The owners alleged that the cargo had shifted due to poor stowage, and ultimately obtained an arbitration award against the charterers for €1.56m. The charterers subsequently held the surveyor and the stevedores who had loaded the cargo jointly liable for this amount.

Lawyers appointed by ITIC represented the surveyor at court, where the claim was subsequently rejected on the basis that the stevedores were responsible for the loading and stowage, and that the surveyor’s instructions were limited to reporting on stevedoring damage caused during loading.

ITIC director Charlotte Kirk says, “The potential difficulty with this defence was that the charterer’s email instructions could have been interpreted as conferring a wider obligation. In the circumstances, it was agreed that the surveyor would make a contribution of approximately ten per cent to the settlement of the claim.

“While this contribution was relatively modest in percentage terms, the claim is an example of how the wording of instructions can potentially widen the scope of a surveyor’s liabilities. If the brief is understood to be restricted to a specific task, it is important to make sure that this is clearly recorded.”

ITIC is managed by Thomas Miller. More details about the club and the services it offers can be found on ITIC’s website at www.itic-insure.com



For more information:
Charlotte Kirk
ITIC
Tel. +44 (0)20 7338 0150
Fax. +44 (0)20 7338 0151
charlotte.kirk@thomasmiller.com