BP Exploration Operating Company Ltd v Chevron Shipping Company ; Same v Chevron Tankers (Bermuda) Ltd ; Same v Chevron Transport Corporation

JurisdictionScotland
Judgment Date26 January 1999
Date26 January 1999
CourtCourt of Session (Outer House)

Outer House of the Court of Session

Before Lord Dawson

BP Exploration Operating Company Ltd
and
Chevron Shipping Company Same v Chevron Tankers (Bermuda) Ltd Same v Chevron Transport Corporation

Scots law - prescription - expiry of prescriptive period - error induced by party sued

Error over prescriptive period

Where an action of damages for breach of contract, negligence and breach of statutory duty was raised after the five-year prescriptive period had expired because of an error induced by a party sued, the prescriptive period did not start to run again until the pursuers were disabused of their error and had had an opportunity to raise proceedings.

Lord Dawson, sitting in the Outer House of the Court of Session, so held, putting an action by BP Exploration Operating Co Ltd against Chevron Shipping Company and others out by order for a hearing on further procedure and making no order with regard to the parties' pleas in law.

Mr Colin Campbell, QC and Mr Calum McNeill for the pursuers; Mr Angus Glennie for the defenders.

LORD DAWSON said that the three actions before him arose out of an incident when a ship, the Chevron North America had sought to berth at a jetty at Sullom Voe on February 28, 1990.

The terminal was operated and maintained by a consortium of which the pursuers were a member. The pursuers sought relief for damage done to the jetty.

The defenders in the first action, Chevron Shipping Company were the vessel's managers. The defenders in the second action, Chevron Tankers (Bermuda) Ltd were its registered owners. The defenders in the third action, Chevron Transport Corporation were its charterers under a bareboat charter.

In each action the loss and damage and grounds of fault or liability averred were identical. The defenders submitted the correct defender was Transport, who had had possession of the vessel and had employed the crew.

The first action against Shipping had been raised on February 21, 1995, the five-year prescriptive period expiring on February 28, 1995. In June 1995 the written defences were adjusted and an averment was for the first time made that Tankers not Shipping were the owners.

In consequence a second action had been raised against Tankers which averred, correctly, that they were the owners. In August 1995 it became apparent to the pursuers that Transport were the charterers of the vessel. the charterparty had been lodged in the first action, and the defences in the Tankers action then so identified...

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