Offshore Marine Services Alliance Pty Ltd v Leighton Contractors Pty Ltd [2017] FCA 333

Offshore Marine Services Alliance Pty Ltd v Leighton Contractors Pty Ltd [2017] FCA 333

Liability to contribute in general average under s 72(3) Marine Insurance Act 1909 (Cth), and at common law, attaches to persons who are owners of the relevant property at the time of sacrifice or extraordinary expenditure, or those contractually bound to contribute to general average. Mere assumption of contractual risk, responsibility for care, custody or preservation of cargo, without ownership or direct contract, does not attract liability for general average contribution.

Parties
Applicant: Offshore Marine Services Alliance Pty Ltd; Third Respondent: Leighton Contractors Pty Ltd; Fourth Respondent: Thiess Pty Ltd
Jurisdiction
Australia
Judgment Date
30 March 2017
Procedural Posture
Admiralty General Division / Preliminary Question Determination Judgment
Outcome
Preliminary question answered. Applicant's claim for general average contribution rejected. Costs awarded to respondents.
Legal Topics
General Average, Marine Insurance, Contractual Risk Allocation, Liability to Contribute in General Average
Admiralty and Maritime Law General Average Marine Insurance Contractual Risk Allocation Liability to Contribute in General Average

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Parties

Offshore Marine Services Alliance Pty Ltd

Applicant

Leighton Contractors Pty Ltd

Third Respondent

Thiess Pty Ltd

Fourth Respondent

Procedural Posture

Admiralty General Division / Preliminary Question Determination Judgment

Legal Issues

  1. 1 Whether liability to contribute in general average under s 72(3) Marine Insurance Act 1909 (Cth) attaches to parties responsible for care, custody, control, safekeeping and preservation of cargo (but not owners)
  2. 2 Whether contractual assumption of risk produces liability for general average contribution at common law or statute

Ratio Decidendi

Liability to contribute in general average under s 72(3) Marine Insurance Act 1909 (Cth), and at common law, attaches to persons who are owners of the relevant property at the time of sacrifice or extraordinary expenditure, or those contractually bound to contribute to general average. Mere assumption of contractual risk, responsibility for care, custody or preservation of cargo, without ownership or direct contract, does not attract liability for general average contribution.

Court Disposition

Preliminary question answered. Applicant's claim for general average contribution rejected. Costs awarded to respondents.

Orders

  • Answer to preliminary question 'A' is No.
  • Preliminary question 'B' does not arise.