Ever Lucky Shipping Co Ltd v Sunlight Mercantile Pte Ltd and Another

Ever Lucky Shipping Co Ltd v Sunlight Mercantile Pte Ltd and Another

The court found on balance that the vessel was unseaworthy at the commencement of the voyage and the shipowners failed to exercise due diligence to make it seaworthy; the bolt defect was discoverable by non-destructive testing and therefore not a latent excusing defect as to under-deck cargo; however, express exemption clauses in the bills of lading excluded owner liability for deck cargo, so shipowners cannot recover contribution from under-deck cargo but are entitled to recover the deck cargo's share of general average; the general average expenditures were reasonable.

Citation
[2003] SGHC 80
Parties
Plaintiff / Shipowner: Ever Lucky Shipping Co Ltd; First Defendant / Cargo Owner: Sunlight Mercantile Pte Ltd; Second Defendant / Cargo Insurer: Liberty Citystate Insurance Pte Ltd
Court
General Division of the High Court
Jurisdiction
Singapore
Judgment Date
15 April 2003
Case Number
Suit 1266/2001
Procedural Posture
Admiralty and Shipping / High Court Judgment (trial)
Outcome
Plaintiff shipowners entitled to recover deck cargo's share of the general average expenses; claim for contribution in respect of under-deck cargo dismissed.
Legal Topics
General Average, York Antwerp Rules 1974, Seaworthiness, Due Diligence, Hague Rules Articles 1(c), 3 and 4, Deck Cargo Exemption Clauses, Latent Defect, Causation, Reasonableness of Salvage/towage Expenses
Source Language
English
Admiralty and Shipping Carriage of Goods by Sea Maritime Insurance / General Average Seaworthiness / Liability General Average York Antwerp Rules 1974 Seaworthiness Due Diligence +5 more

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Parties

Ever Lucky Shipping Co Ltd

Plaintiff / Shipowner

Sunlight Mercantile Pte Ltd

First Defendant / Cargo Owner

Liberty Citystate Insurance Pte Ltd

Second Defendant / Cargo Insurer

Procedural Posture

Admiralty and Shipping / High Court Judgment (trial)

Legal Issues

  1. 1 Was the vessel seaworthy at commencement of voyage?
  2. 2 Did shipowners exercise due diligence to make vessel seaworthy?
  3. 3 What was the cause of the main engine failure (bolt fracture v lube oil starvation)?

Ratio Decidendi

The court found on balance that the vessel was unseaworthy at the commencement of the voyage and the shipowners failed to exercise due diligence to make it seaworthy; the bolt defect was discoverable by non-destructive testing and therefore not a latent excusing defect as to under-deck cargo; however, express exemption clauses in the bills of lading excluded owner liability for deck cargo, so shipowners cannot recover contribution from under-deck cargo but are entitled to recover the deck cargo's share of general average; the general average expenditures were reasonable.

Court Disposition

Plaintiff shipowners entitled to recover deck cargo's share of the general average expenses; claim for contribution in respect of under-deck cargo dismissed.

Orders

  • Shipowners entitled to recover deck cargo share of general average expenses (deck cargo not excluded from contribution by actionable fault due to express bill of lading clauses)
  • No general average contribution recoverable from under-deck cargo (owners failed to exercise due diligence; vessel unseaworthy)