Eagle Terminal Tankers v. Insurance Co. of the U.S.S.R. - Judge Knapp - U.S. District Court, SDNY - May 22, 1980

General Average - Cargo insurer not liable for contribution to vessel repair during voyage where no sea peril existed at time of discovery

The U.S. flag, Eagle Courier , under charter to carry grain to the U.S.S.R. sailed from Port Arthur, Texas on Dec. 30, 1975 on a voyage intended to terminate in Leningrad but with a planned refuelling stop at Rotterdam. On arrival at Rotterdam in mid-January the ship’s propeller appeared to be badly damaged so the ship went into dry dock there, part of the cargo being off loaded. Repairs were completed on Jan. 31, 1976 and the ship, with cargo reloaded, arrived in Leningrad on Feb. 6, but the shipowner would not allow discharge of the cargo until the cargo interest had agreed to make a contribution in general average in the amount of $126,952 of the total cost of $219,747. The cargo owners and their insurers eventually refused to pay and the shipowner brought an action to enforce the general average contribution from the cargo insurer.