Seadrill Management Services Ltd & Anor v OAO Gazprom [2010] EWCA Civ 691 (17 June 2010)

Seadrill Management Services Ltd & Anor v OAO Gazprom [2010] EWCA Civ 691 (17 June 2010)

The contractor's obligation to operate the rig with reasonable skill and care was not excluded by the risk allocation and indemnity clauses in the contract. The contract did not allocate all losses to the operator regardless of cause; the indemnity provisions applied only to specific classes of loss. The losses in question resulted from Seadrill's negligence and were not covered by the indemnity or risk allocation clauses. Therefore, Seadrill was liable for breach of contract.

Citation
[2010] EWCA Civ 691
Parties
Claimant/appellant: Seadrill Management Services Limited; Claimant/appellant: Seadrill Larissa Limited; Defendant/respondent: OAO Gazprom
Jurisdiction
England and Wales
Judgment Date
17 June 2010
Procedural Posture
Appeal (civil) / Appeal From High Court (commercial Court) to Court of Appeal
Outcome
Appeal dismissed
Legal Topics
Interpretation of Risk Allocation Clauses, Implied Terms of Reasonable Skill and Care, Indemnity Provisions, Liability for Negligence, Construction of Standard Form Contracts
Contract Law Commercial Law Maritime Law Interpretation of Risk Allocation Clauses Implied Terms of Reasonable Skill and Care Indemnity Provisions Liability for Negligence Construction of Standard Form Contracts

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 3 Authorities cited 3 Party arguments 2
Sign in to unlock

Parties

Seadrill Management Services Limited

Claimant/appellant

Seadrill Larissa Limited

Claimant/appellant

OAO Gazprom

Defendant/respondent

Procedural Posture

Appeal (civil) / Appeal From High Court (commercial Court) to Court of Appeal

Legal Issues

  1. 1 Whether the contractor (Seadrill) was liable for losses caused by its own negligence under the IDDCO contract form
  2. 2 Whether the contract excluded or limited the contractor's obligation to exercise reasonable skill and care
  3. 3 Whether risk allocation and indemnity clauses precluded liability for negligence

Ratio Decidendi

The contractor's obligation to operate the rig with reasonable skill and care was not excluded by the risk allocation and indemnity clauses in the contract. The contract did not allocate all losses to the operator regardless of cause; the indemnity provisions applied only to specific classes of loss. The losses in question resulted from Seadrill's negligence and were not covered by the indemnity or risk allocation clauses. Therefore, Seadrill was liable for breach of contract.

Court Disposition

Appeal dismissed

Orders

  • The appeal by Seadrill is dismissed.