BMT Marine and Offshore Survey Ltd v Lloyd Werft Bremerhaven GmbH

BMT Marine and Offshore Survey Ltd v Lloyd Werft Bremerhaven GmbH

On the proper construction of the Conversion Contract under German law, the Owners contractually waived any right to claim against LWB for loss or damage to the vessel, except where insurance cover was withdrawn due to LWB management's fault. Therefore, LWB has no liability to Owners for the fire damage, and BMT cannot claim contribution or indemnity from LWB under the Civil Liability (Contribution) Act 1978. LWB owed contractual and statutory duties of skill and care, but these are irrelevant given the waiver of liability.

Parties
Part 20 Claimant: BMT Marine and Offshore Survey Ltd; Part 20 Defendant: Lloyd Werft Bremerhaven GmbH
Jurisdiction
England and Wales
Judgment Date
24 January 2011
Procedural Posture
Commercial Contract/contribution Claim / Judgment on Preliminary Issues
Outcome
Preliminary issues determined in favour of LWB; BMT's claim for contribution/indemnity fails.
Legal Topics
Contribution and Indemnity, Exclusion of Liability, Interpretation of Contracts, Co Assurance, German Law Application, Civil Liability (contribution) Act 1978
Contract Law Insurance Law Conflict of Laws Contribution and Indemnity Exclusion of Liability Interpretation of Contracts Co Assurance German Law Application +1 more

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Parties

BMT Marine and Offshore Survey Ltd

Part 20 Claimant

Lloyd Werft Bremerhaven GmbH

Part 20 Defendant

Procedural Posture

Commercial Contract/contribution Claim / Judgment on Preliminary Issues

Legal Issues

  1. 1 Whether Owners contractually waived or surrendered rights to claim against LWB under German law and the Conversion Contract
  2. 2 Whether LWB can have any liability to Owners for fire damage under German law
  3. 3 Whether BMT can claim contribution/indemnity against LWB under the Civil Liability (Contribution) Act 1978

Ratio Decidendi

On the proper construction of the Conversion Contract under German law, the Owners contractually waived any right to claim against LWB for loss or damage to the vessel, except where insurance cover was withdrawn due to LWB management's fault. Therefore, LWB has no liability to Owners for the fire damage, and BMT cannot claim contribution or indemnity from LWB under the Civil Liability (Contribution) Act 1978. LWB owed contractual and statutory duties of skill and care, but these are irrelevant given the waiver of liability.

Court Disposition

Preliminary issues determined in favour of LWB; BMT's claim for contribution/indemnity fails.

Orders

  • Issue (a): Yes, Owners waived/surrendered right to claim against LWB except as per Article XI.7.
  • Issue (b): No, LWB has no liability to Owners for the fire damage under German law.