Nautical Challenge Ltd v Evergreen Marine (UK) Ltd [2019] EWHC 163 (Admlty) (29 January 2019)

Nautical Challenge Ltd v Evergreen Marine (UK) Ltd [2019] EWHC 163 (Admlty) (29 January 2019)

Recoverable damages are limited to the reasonable cost of repairs and loss of use for the reasonable repair period. Claims for extended losses due to the owner's impecuniosity or subsequent market collapse are not recoverable as they were not caused by the collision or were too remote. The decision to repair at DDW Dubai was reasonable. The reasonable repair period was 220 days. The customary 1% agency fee is recoverable. No permanent diminution in value was proven.

Citation
[2019] EWHC 163 (Admlty)
Parties
Claimant/defendant: Nautical Challenge Ltd; Defendant/claimant: Evergreen Marine (UK) Limited
Jurisdiction
England and Wales
Judgment Date
29 January 2019
Procedural Posture
Collision Action (admiralty) / Damages Assessment After Liability and Apportionment Determined
Outcome
Damages assessed for both parties; extended loss claims dismissed; parties to assist with form of order; damages to be apportioned 80:20 in favour of Alexandra I.
Legal Topics
Collision at Sea, Apportionment of Liability, Assessment of Damages, Impecuniosity, Loss of Use, Causation, Remoteness of Damage
Admiralty Tort Damages Collision at Sea Apportionment of Liability Assessment of Damages Impecuniosity Loss of Use +2 more

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Parties

Nautical Challenge Ltd

Claimant/defendant

Evergreen Marine (UK) Limited

Defendant/claimant

Procedural Posture

Collision Action (admiralty) / Damages Assessment After Liability and Apportionment Determined

Legal Issues

  1. 1 What is the recoverable loss for each vessel resulting from the collision?
  2. 2 How should damages be assessed, including loss of use and claims arising from impecuniosity?
  3. 3 Are extended losses (beyond basic repair and loss of use) recoverable?

Ratio Decidendi

Recoverable damages are limited to the reasonable cost of repairs and loss of use for the reasonable repair period. Claims for extended losses due to the owner's impecuniosity or subsequent market collapse are not recoverable as they were not caused by the collision or were too remote. The decision to repair at DDW Dubai was reasonable. The reasonable repair period was 220 days. The customary 1% agency fee is recoverable. No permanent diminution in value was proven.

Court Disposition

Damages assessed for both parties; extended loss claims dismissed; parties to assist with form of order; damages to be apportioned 80:20 in favour of Alexandra I.

Orders

  • Ever Smart's recoverable loss assessed at US$2,531,373.71 (inclusive of agency).
  • Alexandra I's recoverable loss assessed at US$9,308,594.71 (inclusive of agency).