LIABILITY CLAIMS

There are a number of Parties involved in the carriage of goods by sea. Direct or indirect relationships exist between the Parties. These relationships carry obligations, governed by contract, tort or statute.

Example: A Shipper buys cargo and arranges for its carriage. The Shipper informs the Carrier that the cargo is harmless, based on information provided by his Supplier. The cargo is not what it was supposed to be. The cargo catches fire due to its dangerous nature but through no fault of the Carrier. Extensive damage is caused to the ship and cargo. A crewmember is also injured. The Carrier, the crewmember and the Cargo Owner have all suffered losses. Who is responsible?

An incident may occur which results in the Parties incurring liabilities. Each Party may face liabilities to others. They may also have rights of recourse against others.

In this case, the Carrier may claim against the Shipper for shipping dangerous cargo, without notice, in breach of their obligations. The Carrier may also be able to claim against the Supplier. The Carrier may claim for damage to the ship and for any amounts they have to pay to the crewmember. The crewmember may have a claim against the Carrier in contract and in tort. He may also claim against the Shipper and the Supplier of the goods in tort. The Shipper in turn may claim against the Supplier of the goods in contract and potentially in tort. Even though the Carrier and the Shipper may not know that the cargo could be dangerous, they could both face extensive liabilities which they would then seek to recover from the Parties responsible to them.

You may be liable even if you are not to blame.

HOW DO WE HELP?

• Initial Investigation
  

  What happened

  Why did it happen

  Who is responsible

  
  
• Basis of Liability
  

  Contractual chain	Tort	Statute
  Relationship of Parties	Relevant law	Forum

  
  
• Financial Considerations
  

  Who pays

  Assets

  Security

  
  
• Negotiation with Opponents
  

  Basis of liability

  Defences

  Commercial considerations

  
  
• Settlement
  

  Amicable settlement

  Cost effectiveness

  Recovery

  
  
• Litigation
  

  Mediation

  Arbitration/Court

  Enforcement