FARSTAD SUPPLY AS V ENVIROCO LTD

[2010] UKSC 18, United Kingdom Supreme Court, Lord Phillips, Lord Hope, Lord Rodger, Lord Mance, Lord Clarke, 5 May 2010

Charterparty (time) - Ship under charterparty negligently damaged by subcontractor hired by charterer - Owners suing subcontractor - Whether subcontractor entitled to contribution from charterer - Law Reform (Miscellaneous Provisions) Act 1940, section 3(2)

On 7 July 2002 the oil rig supply vessel Far Service ("the vessel") was damaged while berthed in Peterhead harbour by a fire inadvertently caused by an employee of E, the defender. She was owned by F, the pursuer, and was under charter to a third party, A. A had engaged E to clean out some of the tanks on board the vessel. In this action, E argued that if it was liable to F, it would be entitled to contribution from A. If A was liable to E, it would in turn be entitled to contribution from F under the charterparty, clause 33(5). F had therefore made the submissions in the trial that A would have made. On appeal, it had been held that E was entitled to contribution from A. F appealed to the Supreme Court.