SAN FRANCISCO CRASH CONTAINER SHIPOWNERS, INSURERS, SUED

The US government has filed suit against Hong Kong-based Regal Stone Ltd, owner of the Cosco Butan container ship, which ran into the San Francisco Bay Bridge on November 7 2007. Suits have also been filed against Shipowners’ Insurance & Guaranty and against pilot John Cota. The suit seeks compensation for the cleanup costs and arm to natural resources caused by the spillage of 58,000 gallons of heavy bunker fuel oil. The shipowner has also been sued by crab fishermen and others claiming economic loss as a result of the spillage. Both suits also seek punitive damages. A Supreme Court decision is still awaited on whether the owners of a ship can be required to pay punitive damages as a result of a crew’s malfeasance. That case involves the $2.5bn punitive damages award against Exxon/Mobil for he 1989 Exxon Valdez disaster.