The owners of the ship “Ariela” v The owners and/or demise charterers of the dredger “Kamal XXVI” and the barge “Kamal XXIV” – QBD (Com Ct) (Burton J) – 10 December 2009

Collision action – Costs – Fraud – Losing party ordered to pay successful party’s costs of liability trial – Losing party alleging that successful party had fraudulently and massively exaggerated its claim for damages – Whether losing party entitled to have costs order set aside

The owners and/or demise charterers of the dredger Kamal XXVI and the barge Kamal XXIV (“Kamal”) brought proceedings against the owners of the ship Ariela (Ariela) arising out of a collision on 30 April 2004 between the Ariela and the barge, said to have caused the barge itself to collide with the dredger, with the alleged result of causing substantial damage to both barge and dredger, leading to very considerable consequential loss. Kamal made a claim for US$1,296,583 consisting of US$681,423 repair costs and US$484,584 for loss of use, in respect of the dredger and US$65,139 repair costs and US$62,600 towage and loss of use, in respect of the barge plus 1% “business disruption” or “agency”, plus interest and costs.