MT "CAPE BONNY" TANKSCHIFFAHRTS GMBH & CO KG V PING AN PROPERTY AND CASUALTY INSURANCE CO OF CHINA LTD, BEIJING BRANCH

[2017] EWHC 3036 (Comm), Queen's Bench Division, Commercial Court, Mr Justice Teare, 4 December 2017

General average - Guarantee - Unseaworthiness - Due diligence - Reasonable expenses - York-Antwerp Rules - Hague-Visby Rules

On 14 July 2011 the oil tanker Cape Bonny had suffered engine breakdown while on a laden voyage from Argentina to China. The vessel was taken under tow to Korea for a ship-to-ship transfer of the cargo, having been rejected by ports in Japan and China. An average adjustment was prepared. Cargo's contribution in general average was assessed at approximately US$2.1 million. The claimant shipowners sought contribution from the defendant insurers who had issued a guarantee on behalf of the cargo interests. The defendants declined to pay based on Rule D of the York-Antwerp Rules, alleging that the casualty was caused by a fault on the part of the shipowners, namely a failure to exercise due diligence to make the ship seaworthy before the commencement of the voyage. There was also a question as to whether the towage expenses were reasonably incurred.