Smit International (Deutschland) GmbH v Josef Mobius Bau-Gesellschaft (GmbH & Co) (The “Janus”) - QBD (Com Ct)(Morison J) - 7 June 2001

Towage contract on TOWHIRE terms - Towed vessel colliding with vessel owned by third party - Tugowner seeking indemnity from hirer - Whether tugowner can rely on “knock for knock” provisions if tug unseaworthy - Whether hirer entitled to limit amount claimed by tugowner by reference to tonnage of tug

By a contract on the BIMCO TOWHIRE conditions the claimant tug owners agreed to hire their tug Janus to the defendants for a 6 month charter in the Kiel Canal. On 17 March 2000, while the Janus was towing one of the defendants’ barges, the tow came into contact with another vessel, a dredger, owned by a third party. The third party made a claim against the tug, which was compromised by the claimants. The claimants now sought an indemnity from the defendants. They sought a declaration to that effect. Following the accident, the defendants submitted a claim to the claimants for the direct and consequential damage they said they had suffered as a result of the damage to their Tow, and their loss of its use whilst repaired. The claimants said that by reason of the wording of the TOWHIRE conditions there was no liability upon them, and they sought a second declaration accordingly.