The Breydon Merchant - Q.B.D. (Adm.Ct.) (Sheen J.) - 21 November 1991

Limitation of liability - Whether shipowners entitled to limit liability in respect of claims by cargo owners arising out of salvage services provided to shipowners

The vessel Breydon Merchant suffered a serious fire in the engine room in the English Channel. Salvage services were provided by Alexandra Towing Ltd. under Lloyd’s Standard Form. In order to make it unnecessary for the salvors to exercise their salvage lien, the insurers of the cargo provided a guarantee to secure a salvage award up to £195,000.