A.Turtle Offshore SA Assuranceforeningen Gard-Gjensidig v Superior Trading Inc

A.Turtle Offshore SA Assuranceforeningen Gard-Gjensidig v Superior Trading Inc

The tug owners breached their contractual obligations to exercise due diligence to make the tug seaworthy and ready for the towage and to use best endeavours to perform the towage. However, clause 18 of TOWCON, properly construed, exempted the tug owners from liability for the loss of the rig and associated expenses, as these losses were for the sole account of the rig owner. The tug owners were not entitled to the balance of the lump sum freight as tug and tow never arrived at the destination.

Parties
Claimant: A. Turtle Offshore SA; Claimant: Assuranceforeningen Gard-Gjensidig; Defendant: Superior Trading Inc
Jurisdiction
England and Wales
Judgment Date
11 December 2008
Procedural Posture
Admiralty (towage Contract Dispute) / Judgment After Trial
Outcome
Claim and counterclaim dismissed
Legal Topics
Towage Contracts, Seaworthiness, Exemption Clauses, Limitation of Liability, Freight Entitlement
Admiralty Contract Towage Contracts Seaworthiness Exemption Clauses Limitation of Liability Freight Entitlement

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Parties

A. Turtle Offshore SA

Claimant

Assuranceforeningen Gard-Gjensidig

Claimant

Superior Trading Inc

Defendant

Procedural Posture

Admiralty (towage Contract Dispute) / Judgment After Trial

Legal Issues

  1. 1 Whether the tug owners exercised due diligence to make the tug seaworthy and ready for towage under TOWCON
  2. 2 Whether the tug owners exercised best endeavours to perform the towage
  3. 3 Whether clause 18 of TOWCON exempted the tug owners from liability for the loss of the rig

Ratio Decidendi

The tug owners breached their contractual obligations to exercise due diligence to make the tug seaworthy and ready for the towage and to use best endeavours to perform the towage. However, clause 18 of TOWCON, properly construed, exempted the tug owners from liability for the loss of the rig and associated expenses, as these losses were for the sole account of the rig owner. The tug owners were not entitled to the balance of the lump sum freight as tug and tow never arrived at the destination.

Court Disposition

Claim and counterclaim dismissed

Orders

  • The claim by the rig owners is dismissed.
  • The counterclaim by the tug owners for 95% of the lump sum freight is dismissed.