Acergy Shipping Ltd v Société Bretonne De Reparation Navale SAS (The “Acergy Falcon”) – QBD (Com Ct)(David Steel J) – 5 October 2011

Contract – Indemnity – Ship repair contract allocating responsibility for property damage – Vessel suffering fire damage during course of repair works – Whether repairer liable to indemnify shipowner

The claimant owner of the vessel Acergy Falcon agreed with the defendant ship repair yard for the provision of dry-docking services to the vessel. The vessel had a “carousel”, a large hollow drum around a hub from around which pipes were unwound, in Hold No 3 aft (“the carousel hold”). The work to be undertaken by the defendant included deck plating work on the deck above the carousel hold. In the early morning of 13 January 2009 a fire started when welding material residue or melted steel from the deck plating work dropped down to the bottom of the carousel and ignited combustible materials.