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MARITIME LAW

 

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The Task 

O voyage-charted their vessel The Costa Lotta to VC, to carry a consignment of crude oil from Piraeus (Greece) to Southampton (the UK). VC own The Jolly Roger.  VC are domiciled and have their place of registered business in  Piraeus. VC have no agents, nor any business activity in England at all.

During the voyage to carry the oil, The Costa Lotta got into  difficulties due to especially bad weather conditions that arose whilst  she was in the Mediterranean going towards the Italian coastline. The  master of the vessel, Captain Hook, ordered the vessel close into the  shoreline and gave a “mayday” call to the Italian Coastguard. A salvage  company agreed to assist The Costa Lotta, which was at this  initial stage refused refuge at any Italian port. By the time salvage  terms were agreed, a considerable amount of the cargo of crude oil had  escaped from The Costa Lotta into the surrounding seawater. The salvage company sent their vessel, Thunderbird, to assist The Costa Lotta, and Captain Hook signed a LOF 2000 with the SCOPIC provisions. The salvage operation succeeded in rescuing The Costa Lotta and  stopping further oil from escaping. The salvors also provided an  effective clean up procedure, which greatly minimised the impact to the  environment of the oil that had escaped into the sea. That damage to the  environment was minimised was due not only to the specialist skills in  oil pollution control of the master of Thunderbird, but also to the considerable efforts made by Captain Hook and his crew.

The Costa Lotta was eventually given refuge by the Italian  authorities, and towed into the Ligurian Sea and into the Port of Genoa.  Much of her cargo had been lost. Although the clean-up operation  appeared to have successfully contained the oil, the neighbouring French  authorities were concerned to monitor the arrival of The Costa Lotta into Genoa. When The Costa Lotta arrived  within the jurisdiction of the Port, Captain Hook was detained by the  Port Authorities to give a detailed report of the incident. The  Authorities have now refused to release him and there are suggestions  that he might be prosecuted for his part in the occurrence of the  incident. The French authorities have also threatened to prosecute the  owners of the vessel for the perceived threat of oil damage to the  French Rivera coastline (such damage would be most detrimental to the  tourist industry there).

The salvors are now pressing O for remuneration for the salvage operation, but O are avoiding them. O have now in fact sold The Costa Lotta to  Sergio’s Ltd, a company owned by Bruno, who has been interested in this  vessel for some time. Bruno knows nothing about the salvage matter  between O and the salvors.

VC have failed to complete payment of agreed freight for the above charter of The Costa Lotta,  which was due when the vessel sailed from Piraeus. VC are of the view  that the vessel encountered difficulties and lost her cargo because of  the master’s incompetence. VC argues that this entitles them to set-off  the freight owed against damages that will arise for loss and damage to  the cargo.

O have just been informed by their agent that The Jolly Roger is due to berth in Liverpool (UK) within the next few days.

Answer ALL three parts of this question: 

The marks for this question will be awarded for overall merit and will not be divided equally between each part.

(a) Will O be successful in a claim against VC for the outstanding  freight, and if so, what procedural steps could they take in order to  bring the claim?

(b) Critically consider the issues arising in any salvage claim in the above scenario.

(c) Critically evaluate the modern determination to use criminal law in the regulation of ship-source pollution.

PART B (Word limit: 1, 000 words) 

Critically evaluate the approach adopted by the English courts in  their determination of the “proximate cause” element in a marine  insurance claim.

 

CARRIAGE OF GOODS BY SEA ACT 1 OF 1986

To amend the law with respect to the carriage of goods by sea and to provide for matters connected therewith.

Application of Hague Rules.—(1) Those  Rules contained in the International Convention for the Unification of  Certain Rules of Law Relating to Bills of Lading signed at Brussels on  25 August 1924, as amended by the Protocol signed at Brussels on 23  February 1968, which are set out in the Schedule (hereinafter referred  to as the Rules) shall, subject to the provisions of this Act, have the  force of law and apply in respect of the Republic in relation to and in  connection with:

(a) the carriage of goods by sea in ships  where the port of shipment is a port in the Republic, whether or not  the carriage is between ports in two different States within the meaning  of Article X of the Rules; As in the current case between The Theatre  of Wine the claimant and the shipowner Carry Carefully from South Africa  to Greenwich London UK.

(b) any bill of lading if the contract  contained in or evidenced by it expressly provides that the Rules shall  govern the contract; In this case the bill of lading has no detail as to  weigh and description of the consignment that were shipped.

(c)any receipt which is a non-negotiable  document marked as such if the contract contained in it or evidenced by  it or pursuant to which it is issued is a contract for the carriage of  goods by sea which expressly provides that the Rules are to govern the  contract as if the receipt were a bill of lading, but subject to any  necessary modifications and in particular with the omission in Article  III of the Rules of the second sentence of paragraph 4 and paragraph 7;

Seaworthiness not to be implied. There  shall not be implied in any contract for the carriage of goods by sea to  which the Rules apply by virtue of this Act, any absolute undertaking  by the carrier of the goods to provide a seaworthy ship.

  Maritime law  is a distinct body of law that governs maritime questions  and offenses. It is a body of both domestic law governing maritime  activities, and private international law governing the relationships  between private entities that operate vessels on the oceans. It deals  with matters including marine commerce, marine navigation, marine  salvaging, shipping, sailors, and the transportation of passengers and  goods by sea. 

 

 

 

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