UK Supreme Court Confirms No Breach of the Safe Port Warranty in the Ocean Victory Case
The Supreme Court has dismissed the Ocean Victory appeal because there was no breach of the safe port warranty.
The combination of long waves and northerly gales at Kashima port were an “abnormal occurrence” and not a characteristic of the port. “Abnormal occurrence” is something rare and unexpected that a charterer would not have in mind. The Court also decided on two other issues assuming, contrary to their view, there had been a breach of the safe port warranty. Firstly, because the charter provided for charterers to arrange insurance to protect both their and owners’ interests, it precluded a right of recovery or subrogation by the owners from the charterers in the event of a total loss. Secondly, that the charterer could not limit liability under the 1976 LLMC Convention. To view the full judgment please click here.