Marida Ltd v Oswal Steel (The “Bijela”) - House of Lords (Lord Templeman, Lord Jauncey, Lord Slynn, Lord Woolf and Lord Lloyd) - 21 April 1994

Whether shipowners can recover cost of temporary repairs as general average expenditure

The vessel Bijela was in the course of carrying a cargo of shredded scrap from Providence, Rhode Island to Kandla in India. Shortly after leaving Providence, the vessel grounded and damaged her bottom plating. She put into Jamestown, the nearest anchorage. She could not proceed on her voyage without repairs. There were two alternatives. Either she could discharge part of her cargo into barges, return to Providence, and there discharge the rest of her cargo. She would then be able to proceed under her own power to New York, where she could undergo permanent repairs in dry-dock. The alternative was to carry out temporary repairs where she lay anchored at Jamestown, in the hope that they would be sufficient to enable her to complete the voyage to India. The temporary repairs cost $282,606. The vessel was able to complete the contract of carriage without further incident, and after completing discharge of cargo in India she proceeded to Singapore for permanent repairs.