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World Insurance Report

Marine

15.5, negligence suit

Singapore: fv Chian Horng No1, undergoing repairs in a shipyard, was damaged badly in a fire and sank in 1996. Now her owner, Chian Horng Fishery, is suing the ship repairer and its subcontractor for negligence. It is also asking for between S$2mn and $3mn in damages. Chian Horng No 1 docked at the shipyard of Dundee Marine & Industrial Services for repairs and maintenance work in December 1996. According to its owner, there was an oral contract between it and the repair company for the work to be done on the vessel. This included replacing her airconditioning unit and installing automatic line-throwing apparatus. Ship repairer Dundee Marine said in its defence that it was not responsible for any loss or damage to the shipowner because it did not carry out the work on the airconditioner. Dundee Marine is making a counterclaim of $290,700 for wharfage charges and oil pollution costs. It is also claiming another $99,118 for the rest of the work it carried out on the vessel, which it said has yet to be paid.

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