Nautical Challenge Ltd v Evergreen Marine (UK) Ltd

Nautical Challenge Ltd v Evergreen Marine (UK) Ltd

Only losses directly caused by the collision, including reasonable repair costs and loss of use, are recoverable. Extended losses due to owner's impecuniosity and market collapse are too remote and not caused by the collision. The decision to repair at DDW Dubai was reasonable, and the reasonable repair period is 220 days. Permanent diminution in vessel value was not proved.

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 / Damages Assessment After Liability and Apportionment Determined
Outcome
Damages assessed for both parties; extended loss claims dismissed.
Legal Topics
Ship Collision, Damages Assessment, Impecuniosity, Loss of Use, Apportionment of Liability
Maritime Law Tort Law Ship Collision Damages Assessment Impecuniosity Loss of Use Apportionment of Liability

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Parties

Nautical Challenge Ltd

Claimant/defendant

Evergreen Marine (UK) Limited

Defendant/claimant

Procedural Posture

Collision Action / Damages Assessment After Liability and Apportionment Determined

Legal Issues

  1. 1 Assessment of recoverable damages following ship collision
  2. 2 Impact of owner's impecuniosity on damages
  3. 3 Causation and remoteness of extended losses

Ratio Decidendi

Only losses directly caused by the collision, including reasonable repair costs and loss of use, are recoverable. Extended losses due to owner's impecuniosity and market collapse are too remote and not caused by the collision. The decision to repair at DDW Dubai was reasonable, and the reasonable repair period is 220 days. Permanent diminution in vessel value was not proved.

Court Disposition

Damages assessed for both parties; extended loss claims dismissed.

Orders

  • Ever Smart recoverable loss: US$2,531,373.71 inclusive of agency at 1%.
  • Alexandra I recoverable loss: US$9,308,594.71 inclusive of agency at 1%.