STRONG WISE LTD V ESSO AUSTRALIA RESOURCES PTY LTD (THE "APL SYDNEY")

[2010] FCA 240, Federal Court of Australia, Rares J, 18 March 2010

Admiralty - Limitation of liability - Ship's anchor fouling submarine gas pipeline - Meaning of "claims arising on any distinct occasion" - Claims by pipeline's owners for repairs, loss of gas and economic loss - Consumers of gas claiming economic losses - Whether the different events causing damage to the pipeline on one or more distinct occasions - Admiralty Act 1988 (Cth), section 25 - Limitation of Liability for Maritime Claims Act 1989 (Cth) - Articles 2(1)(a), 6(1) and 11 of the Convention on Limitation of Liability for Maritime Claims 1976 and 1996 Protocol

A pipeline was fouled by the container vessel APL Sydney and was then further destroyed by the vessel's subsequent movements. On 19 December 2008, the owner of APL Sydney, Strong Wise Ltd, began proceedings claiming that it was entitled to limit its liability pursuant to the Convention on Limitation of Liability for Maritime Claims 1976 as amended by the 1996 Protocol, given the force of law in Australia by the Limitation of Liability for Maritime Claims Act 1989 (Cth). The issue arose that depending on how many "occasions" there had been, the shipowner would have to establish additional limitation funds.