Farstad Supply AS v Enviroco Ltd and Anr (The “Far Service”) – Supreme Court (Lord Phillips P, Lord Hope DP, Lord Rodger, Lord Mance and Lord Clarke) – 5 May 2010

Alistair Clark QC and Paul O’Brien (HBJ Gateley Wareing LLP) for Farstad; Robert Howie QC and Almira Delibegovic-Broome (Paull & Williamsons) for Enviroco.

Tort – Joint tortfeasors – Apportionment – Vessel sustained fire damage whilst in harbour – Shipowners bringing negligence claim against service company which caused fire – Service company seeking apportionment of damages and contribution on basis that vessel’s charterers were also to blame – Whether service company entitled to apportionment and contribution – Whether charterparty contained exclusion or indemnity clause – Law Reform (Miscellaneous Provisions) (Scotland) Act 1940

Farstad owned the oil rig supply vessel Far Service. The vessel was chartered to ASCO UK Ltd. While the vessel was in harbour ASCO instructed Enviroco Ltd, a service company, to clean out the holding tanks. An employee of Enviroco inadvertently opened a valve, releasing oil into the engine room near hot machinery. The oil ignited, causing a fire, badly damaging the vessel. Farstad brought a negligence action against Enviroco.