LOSS OF VESSEL

New Zealand Herald, Volume LXXV, Issue 22975, 1 March 1938, Page 14

LOSS OF VESSEL

CLAIM FOR DAMAGES POINT OF LAW RAISED LIMITATION OF LIABILITY [by telegraph—rrtF.ss association] IXVE RC.\ R(JILL, Monday A point of law unique in Now Zealand was raised by Mr. H. J. Marlister in the Supreme Court to-day when a case in which the Direct Fish and Oyster Supply Company claimed £'2905 from Urwin and Company, Limited, ior damages arising out of thu sinking of the trawler Black Cat after a collision with the trawler Rita on August 11, was called Lefore Mr. Justice Kennedy. Mr. Macalistcr, who appeared for Urwin and Company, filed an application to have t-lw liability of his client limited to £2ll. Under section 290 of the Shipping and Seamen Act. 1908, he claimed a declaration that the company was not answerable in damages arising out of the loss of the Black Cat beyond the aggregate amount of £8 for each ton of tonnage of the Rita; a declaration that the tonnage, of the Rita was 26.81 tons, and that his client was liable (in the event of liability being established) in respect of loss or damage arising out ol the collision between the Rita and the Black Cat. for £214 9s 7d, together with interest at 4 per cent per annum from the date of collision until payment; that Urwin and Company be at liberty to pay that sum into Court; that alf further proceedings be stayed, and that the company may be declared entitled to relief against any other action in respect of the collision; that a 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 thcsum named be rateably distributed among them.

Mr. J. S. Sinclair, who appeared for the plaintiff company, said that the point raised was new to him. Jt 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 bn held if there is no settlement in the meantime.-

Section 293 of the Shipping ami Scanioii Act, 1908, Niiltswtiun (1), provides inter alia that the owners of a ship shall not, where without their actual fault or privity any loss or damage is caused to any other ship by reason of the improper navigation of their ship, be liable to damages beyond an aggregate amount not exceeding for each ton of their ship's tonnage. The Court of Inquiry found that the master' of the Black Cat was guilty of negligence in not keeping « proper look-out and in failing to give way. as required bv the regulations for the prevention of collisions at sea; and that the master of the T?ita was guilty of an error of judgment in that be did not appreciate sooner the possible dancer of a collision, and reduce his speed. The degree of culpability of each master was: Tllack Cat, twothirds; I?ita. one-third.