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The Legal Aspects of Seaworthiness: Current Law and Development

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The Legal Aspects of Seaworthiness: Current Law and Development The Legal Aspects of Seaworthiness: Current Law and Development Ahmad Hussam Kassem Submitted to the University of Wales in fulfilment of the requirement for the Degree of Doctor of Philosophy of Law Swansea University Year: 2006 The Legal Aspects of Seaworthiness Summary Current Law and Development Summary The thesis aims to analyse the current legal approach to the carrier’s obligation of seaworthiness under Carriage of Goods by Sea due to the impact of such an obligation on the stability of the shipping industry and its effect on reducing marine casualties. In addition, recent developments in the industry have had an affect on the carrier’s obligation. Therefore, it seems necessary to deal with the carrier’s obligation of seaworthiness under the current law and in the light of recent development. In order to achieve the aim of this study, a library-based research project will be conducted and most of the courts’ decisions, recent or old, will be considered in order to find out how they have dealt with this issue in the past and whether their attitude has changed to reflect the development in the shipping industry. The opinions and thoughts of scholars on this matter will also be examined in order to ascertain their opinion on the law and its development. The final chapter of this thesis will deal with the conclusions arrived at by this study. These can be summarised by the following: - The carrier’s obligation to make the vessel seaworthy should be extended to cover the whole voyage instead of just limiting it to the beginning of the voyage. - The burden of proof in case of seaworthiness should be based on presumed fault, not proved fault. - The burden of proving unseaworthiness/seaworthiness should shift to the carrier, and should be exercised before seeking the protections of the law or carriage contract. - There is also a need to depart from the use of detailed articles with regard to Seaworthiness to a more general article which deals with carriers’ duties and obligations in general. - Finally, it is necessary to highlight the need to establish that the ISM Code, and to a lesser extent the ISPS, should be considered as good practice with regard to seaworthiness. i The Legal Aspects of Seaworthiness Contents Current Law and Development Contents Table of Cases…………………………………………………………………….vi Preface…………………………………………………………………………….xii Acknoledgment……………………………………………………………………xiv Chapter One: Introduction……………………………………………1 - Historical Development………………………………………………………..2 - Laws Governing the Carriage of Goods by Sea in General, and Seaworthiness in Particular………………………………………………………………………3 - Relevance of seaworthiness……………………………………………………5 - Importance of the duty under Carriage of Goods by Sea………………….5 - Importance of the duty under Marine Insurance Law……………………..6 -Importance of Seaworthiness in Case of Safety Marine Pollution………..10 - Conclusion…………………………………………………………………….11 Chapter Two: Seaworthiness Definition and Meaning….13 Definition of seaworthiness……………………………………………….14 - Definition of seaworthiness Under Carriage of Goods by Sea……………….14 - Definition of seaworthiness under Marine Insurance Law……………….......19 Vessel seaworthiness and Cargo-worthiness…………………….......24 - Vessel seaworthiness………………………………………………………...25 1- Physical seaworthiness………………………………………………….25 a. Seaworthiness and the time of the voyage…………………………….26 b. Seaworthiness and different types of navigational water……………..28 c. Seaworthiness and the type of vessel………………………………….29 d. Seaworthiness and existing state of knowledge……………………….31 e. Seaworthiness of the vessel and its equipment………………..………34 f. The ISM Code…………………………………………………………35 2_Human seaworthiness…………………………………………………..35 a. Seaworthiness and competence of the crew………………………….36 b. Seaworthiness and sufficient number of crew………………………...38 c. Ignorance of the crew…………………………………………………39 d. Negligence of the crew or incompetence……………………………..40 e. Mismanagement or incompetence…………………………………….43 f. The ISM Code and Human Seaworthiness…………………………….44 3_ Documentary factor……………………………………………………45 a. Navigational documents………………………………………………46 b. Ship plans………………………………………………………………47 c. Other necessary documents indirectly related to vessel seaworthines……………………………………………………………48 d. Other documents not related to vessel seaworthiness…………………49 -Conclusion………………………………………………………………...51 i The Legal Aspects of Seaworthiness Contents Current Law and Development - Cargo-worthiness…………………………………………………………….52 1_General cargo-worthinessi……………………………………………..53 2_ Special cargoes……………………………………………………...…57 3_Unseaworthiness or bad stowage………………………………………58 a. Bad stowage which affect the safety of the vessel…………………….59 b. Bad stowage and the safety of the goods…………………………..…60 c. Bad stowage caused by shipper/charterer/cargo-owner and the safety of the vessel………………………………………………………………62 d. Time at which the responsibility for the cargo passes to the carrier……..66 - Conclusion………………………………………………………………….…68 Chapter Three: Nature of Duty, Implied and Express Duty, and Time of Exercising the Duty…………...69 Introduction…………………………………………………………………..70 Nature of the duty……………………………………………………….….71 - Absolute Obligation………………………………………………………….71 - Due Diligence………………………………………………………………...73 - Definition of Due Diligence……………………………………………….…75 - Relevance of exercising Due Diligence………………………………………76 1- Due Diligence and Latent defect…………………………………….…78 2- Delegation of the Duty………………………………………………….81 3- Shipowner and supervision system……………………………………..83 4- Standard of Due Diligence……………………………………………..85 Express and implied duty………………………………………………..88 - Introduction………………………………………………………………….88 - The expressed duty of Seaworthiness……………………………………….89 1- Express duty and Charterparties………………………………………91 2- Maintenance Clause……………………………………………………93 a- The maintenance clause is part of the expressed seaworthiness clause………………………………………………………………….93 b- The maintenance clause is a separate clause…………………………95 - Conclusion…………………………………………………………….96 3- Express Seaworthiness Clause and Clauses Paramount………………97 - The Implied duty of Seaworthiness…………………………………………102 1- The Implied Duty of Seaworthiness in case of Bills of Lading and Voyage Chart……………………………………………………………………102 2- The Implied Duty of Seaworthiness in case of Time Charterparties….105 Time of exercising the duty to provide a seaworthy vessel………107 - Time to exercise the obligation of seaworthiness with regard to the cargo...............................................................................................................107 - The Time at which to exercise obligation of seaworthiness with regard to the vessel………………………………………………………………………110 1- Bill of lading and Voyage charterparty………………………………110 ii The Legal Aspects of Seaworthiness Contents Current Law and Development a. Remedying unseaworthiness after starting the voyage……………...111 b. Seaworthiness before a vessel’s arrival at the loading port…………114 c. Consecutive voyages under charterparty……………………………117 2- Time Charters…………………………………………………………117 3- Charterparties and the implied obligation of seaworthiness and time of duty…………………………………………………………………….120 4- Carrier’s Liability before Taking Responsibility of the Vessel……….122 5-Doctrine of Stages……………………………………………………..126 a. The old doctrine of stages……………………………………………126 b. The current doctrine of stages……………………………………….128 c. Bunkering…………………………………………………………….130 - Conclusion………………………………………………………………….135 Chapter Four: Basis of Liability, Classification, Effect of Breach Immunities and Limitation……………….138 - Introduction…………………………………………………………………139 Basis of Liability……………………………………………………………141 - Types of Basis of Liability………………………………………………….141 1- Presumed Fault Based Liability System………………………………141 2- Proved Fault Based Liability System………………………………….143 3- New development on the Basis of Liability……………………………144 - Burden of Proof and Order of Proof………………………………………..146 1- Burden of Proof……………………………………………………….146 2- Order of Proof…………………………………………………………152 - Causation……………………………………………………………………158 1- Where unseaworthiness was not the cause of loss…………………..159 2- Where there was more than one cause………………………………161 3- Where the cause of the loss was unknown…………………………..164 Classification of the obligation of seaworthiness………………..…166 - What is a Condition?......................................................................................166 - What is a Warranty?.......................................................................................168 - Is Seaworthiness a Condition or Warranty?...................................................169 - The result of classifying the carrier’s obligation as Innominate……………172 1- Frustration of the Contract of Carriage………………………………172 2- Right to Claim Damages………………………………………………174 Carrier’s Immunities for the Breach of his obligation of seaworthiness…………………………………………………………………………….177 -Exclusion from the carrier’s Liability for failing to exercise his duty………177 1- Efficiency of the Exclusion Clause……………………………………178 a. The obligation of seaworthiness is expressed……………………….178 b. The obligation of seaworthiness is implied………………………….179 2- Conflict between the exemption clause and other clauses in the carriage contract…………………………………………………………………180 3-Conflicts between statutory exemptions and another exclusion clause…………………………………………………………………...182 4- Interpretation of the exception clause…………………………………184 iii The Legal Aspects of Seaworthiness Contents Current Law and Development 5- Construction of the exemption clause…………………………………186 a. Language of the Exemption Clause………………………………….187
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