Strong Wise Ltd v Esso Australia Resources Pty Ltd and Ors (The “APL Sydney”) – Federal Court of Australia (Rares J) – 18 March 2010

Dr G Griffith QC, Mr S Horgan SC and Mr M Scott (Holman Fenwick & Willan) for shipowner; Mr P Murdoch QC and Dr AP Trichardt (Blake Dawson) for the pipeline owners.

Limitation of liability – Ship dragging anchor and fouling submarine gas pipeline – Ship’s movements then causing further damage to pipeline and loss of gas - Whether one or more “distinct occasions” on which damage arose - 1976 Limitation Convention

On 13 December 2008 the container ship APL Sydney dragged at anchor during a gale in Port Phillip Bay, Melbourne. Between 1544 and 1545 the vessel’s starboard anchor fouled a submarine gas pipeline. At about 1546 the vessel’s engine was put astern and then stopped. The vessel then yawed from side to side for about 35 minutes before her engine was put ahead at about 1620. Soon after that, the pipeline ruptured. The engine was stopped and at about 1628 was put astern. One end of the ruptured pipeline was dragged further out of its trench and was severely bent. A piece of the pipe broke off, freeing the anchor.