Caspian Basin Specialised Emergency Salvage Administration and Another v Bouygues Offshore SA and Others ; Ultisol Transport Contractors Ltd v Bouygues Offshore SA and Others
| Jurisdiction | England & Wales |
| Judge | Rix J |
| Judgment Date | 30 April 1997 |
| Court | Queen's Bench Division (Admiralty) |
| Date | 30 April 1997 |
Admiralty Court, Queen's Bench Division
Before Mr Justice Rix
Merchant shipping - limitation of damages - prior fixing of liability not required
It was not necessary for liability to be established or admitted before a limitation action under the Merchant Shipping Act 1995 could be commenced, or a declaration of limitation obtained.
Mr Justice Rix so held in the Admiralty Court of the Queen's Bench Division in a reserved judgment, inter alia, granting the plaintiffs' applications for declarations limiting their liability, if any, in connection with the loss of a barge owned by the first defendant, Bouygues Offshore SA.
The barge was being towed to Cape Town, South Africa, pursuant to a charterparty between Bouygues and Ultisol. The tug was owned by Caspian and chartered by Ultisol. The barge was lost off the coast of South Africa.
Bouygues had commenced proceedings against Caspian and Ultisol in South Africa and in England, alleging, inter alia, misrepresentation and claiming damages in excess of £50 million. Both Caspian and Ultisol had commenced limitation actions in England under what became the Merchant Shipping Act 1995, and had made applications for declarations limiting their liability to a limitation fund constituted by Ultisol in the amount of £573,717. Liability had not been admitted or established.
Among the issues raised was whether a declaration of limitation could be obtained without liability first being admitted or established; and whether there was a right to limit in respect of a claim in misrepresentation.
Mr Nicholas Hamblen, QC, for Caspian; Mr Angus Glennie, QC and Miss Clare Ambrose for Ultisol; Mr David Steel, QC and Mr Simon Gault for Bouygues.
MR JUSTICE RIX reviewed the relevant authorities, starting with Hill v AudusENR ((1855) 1 K & J 263), which appeared to establish that the determination of liability was a condition precedent to the commencement of a limitation action.
In his Lordship's judgment no authority survived with unbroken force because the decisions were based on jurisdictional issues which were not now relevant and were pursuant to statutory provisions which were no longer in force.
It was true that among the reasons given in Hill v Audus for the construction placed upon the...
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