Amoco Transport Co. v. Bugsier Reederei & Bergungs A.G. - U.S. Court of Appeals (7th Circuit) (Swygert S.C.J., Bauer C.J. and Crabb D.J.) - 15 September 1981

Allegations of negligence by salvor prior to signing of Lloyd’s Open Form to be arbitrated in London

This appeal arose out of the Amoco Cadiz oil spill off the coast of France on 16 March 1978. Amoco were the owners of the Amoco Cadiz. Bugsier were the owners of the salvage tug Pacific. On 16 March 1978 the Amoco Cadiz suffered a complete steering gear breakdown north of Ushant. The Pacific offered salvage assistance under Lloyd’s Open Form (LOF). Although the Master of the Amoco Cadiz declined this offer, the Pacific proceeded to prepare a tow line and attach it to the tanker. After about 4 hours of towing attempts the Amoco Cadiz advised the Pacific that it would enter into the LOF agreement. The tanker’s drift could not be stopped and the tow line parted. Although another line was attached, the tanker ran aground while under tow. Subsequently, the tow connection parted again, the Amoco Cadiz floated free briefly, grounded again and broke apart.