The matter involved a significant damage claim
With help from MinterEllison, Tasmanian Ports Corporation (TasPorts) has secured a win in Federal Court in a case involving the Convention on Limitation of Liability for Maritime Claims.
The case examined a significant damages claim resulting from an allision between the MV Goliath, a CSL-owned and operated cement carrier, and two TasPorts tugs at berth in the Port of Devonport.
Primary judge Stewart J had initially decided that CSL was entitled to limit its liability to TasPorts for costs incurred in the raising, removal and destruction of the wrecked tugs under the proper construction of article 2 of the Convention, even though Australia had exercised its right of reservation under article 18 of the Convention to disapply article 2 insofar as it applied to limitation of claims for wreck removal. The full Federal Court overturned this ruling in a judgment delivered on 29 April.
The court determined that in Australia, shipowners are not entitled to limit liability for wreck removal expenses.
“The judgment comes at the end of a very significant month for Limitation Convention jurisprudence, following the UK Supreme Court’s decision in the MSC Flaminia. It is welcome news for Australian port and terminal operators and other potential claimants pursuing shipowners for negligent acts and omissions necessitating the raising, removal and destruction of wrecks,” MinterEllison lead partner Chris Keane said. “The judgment also provides clarity as to the likely approach of Australian courts on an important aspect of limitation of liability for maritime claims. It remains to be seen whether the approach of the Full Court will be followed by the courts of other key maritime nations.”
Keane, who leads the firm’s Australian shipping and maritime practice, headed up the team on the transaction alongside senior associate Joshua McKersey. They received assistance from senior associate Emily Miers, lawyer Jesper Choi and law clerk Simaima Gordon.
Shane Doyle KC, Matthew Harvey KC and Charles Street made up the counsel team.
