Counsel, Lara Hicks, successfully represents cargo interests’ insurers in defending a claim brought by the Owners of the “Happy Aras” for a general average contribution of US$1,271,095.89, following a four day High Court trial before Admiralty Registrar Davison.
Case Summary
The “Happy Aras” grounded off the Datca Peninsula in southern Turkey at 20:58 on
20 March 2023. She was laden with a cargo of soya beans, on the eighth day of her voyage from Reni, Ukraine to Mersin, Turkey.
The vessel was seriously damaged and salvage, lightering and transshipment operations ensued for nearly three months, until 13 June 2023. Claimant Owners declared General Average and following a Final Adjustment on 3 November 2023 sought a contribution from cargo interests’ insurers, Euroins, pursuant to an Average Guarantee dated 30 March 2023.
Insurers vehemently defended the claim – against liability and quantum – on the basis that the sums were not “reasonably properly and legally due” pursuant to the Guarantee, as the Happy Aras was unseaworthy, not being manned with competent crew, to include a competent Master and/or on account of deficiencies in passage planning.
Whilst the latter defence failed, as deficiencies in the passage plan - conceded by both parties’ experts - did not cause the grounding, the former defence succeeded resoundingly.
The Admiralty Registrar found the Master’s entries in the Deck and Engine logbooks were false, intended to deflect blame (regarding the latter) and entries in the vessel’s records inaccurate and misleading.
Further, he found the Master made multiple, serious errors and in circumstances where he had removed many of the checks and balances intended to maintain the safety of the Vessel. Both experts found systematic failings.
The test of unseaworthiness was made out; a prudent owner would have required the competence of the Master to be made good, had he known of it, before sending the ship to sea. Further, it was incumbent on the carrier to prove “due diligence” which they failed to do.
Astonishingly, neither the Master nor beneficial Owner and manager of the Claimant ship owning company attended trial to give evidence.
The general average claim thus failed on liability, however had it succeeded on the same the quantum of Owners’ claim would have been awarded in full.
The Defendant was awarded its costs and interest, together with a substantial payment on account.
The reported judgment can be found at the following link: https://www.bailii.org/ew/cases/EWHC/Admlty/2026/7.html