Board disputes liability for ship

Press, 19 April 1989, Page 3

Board disputes liability for ship

NZPA Sydney The Marlborough Harbour Board is seeking to overturn a judgment that it will be liable to pay for the Mikhail Lermontov if it is found the board’s negligence caused the Soviet liner to sink in February, 1986. The case is being heard in the New South Wales Court of Appeal. Earlier this month, Judge Kenneth Carruthers in the N.S.W. Supreme Court allowed the ship’s owner, the Baltic Shipping Company, and charterer, C.T.C. Cruises, to increase their cross-claim against the board to include the value of the ship. About 150 Australians who were among the 410 passengers and crew rescued when the ship sank in the Marlborough Sounds are, suing the Baltic Shipping Company and C.T.C., who are in turn claiming damages from the board. The primary claim for liability involves about $197,000 in baggage losses. But if that claim succeeds in the Supreme Court hearing due to start on Monday, other claims for personal injuries are expected to follow. Parties involved in the case have so far declined to put a value on the vessel. Judge Carruthers ruled on Monday that the Marlborough Harbour Board would not be considered responsible for events after the Mikhail Lermontov struck the rocks.