The Mekhanik Evgrafov and Ivan Derbenev - Q.B.D. (Adm.Ct.) (Sheen J.) - 3 December 1987

Limiting shipowners’ liability where only one cargo claim is brought - Merchant Shipping Act 1894

Cargo owners brought separate proceedings against shipowners for damage to their cargo. The actions were consolidated. The shipowners served a defence which included inter alia the plea that the damage had been caused without the actual fault or privity of the shipowners. Less than two weeks before the trial, the shipowners informed the cargo owners that in the event that the shipowners were held liable, they would commence separate limitation proceedings to limit their liability under the Merchant Shipping Acts, and “in particular section 503 of the Act of 1894 as amended”. [The provisions of the Merchant Shipping Act 1979 relating to limitation of liability did not affect the present claims.]