LIMITED LIABILITY

Evening Star, Issue 22895, 1 March 1938, Page 7

LIMITED LIABILITY

TONNAGE BASIS CLAIM UMIfIUE ADMIRALTY LAW CASE INVERCARGILL, February 23. A point of law unique in New Zealand was raised by Mr H. J. Macalister in the Supremo Court to-day, when a case in which the Direct Fish and Oyster Supply Company claimed £2,905 from Urwin and Co. Ltd. for damages arising out of the sinking of the trawler Black Cat on August 11, 1937, was called before Mr Justice Kennedy. Mr Macalister, who appeared for Drwin and- Co., hied an application to have the liability of his client limited to £214 under section 296 of the Shipping and Seamen Act, 1908. He claimed a declaration that the company was not answerable in damage arising out of the Joss of the Black Cat beyond an aggregate amount of £8 a ton for each ton, of tonnage of the Rita, that the tonnage of the Rita was 26.81 tons, and that she was liable (in the event of liability being established) in respect- of Joss or damage arising out of the collision between the Rita and the Black Cat for damages of £214 9s 7d, together with interest at 4 per cent, per annum from the date of the collision until payment; that Ur.win and Co. be at liberty to pay that sum into court; that all further proceedings be stayed, and that the company be declared entitled to relief against any other action in respect, of the collision; that direction be given by the court to ascertain those who . had any just claim arising out of the loss of the Black Cat, and that the sum named be patently distributed among them. Mr Jj S. Sinclair, who appeared for the plaintiff company, said that the point raised was new to him. It was difficult to pick up the threads of Admiralty law in New Zealand and there was no New Zealand precedent covering the point. The case was adjourned until next session, but a special session may be held if there is no settlement in the meantime.