Case 3 Third Party Liability

During berthing at a port terminal a ship's engines failed. The ship struck a wharf and a crane leg, causing substantial damage. The owners sought to establish that the Member, a port authority, was in some way negligent, and thereby claimed indemnity for the ship's liability to the terminal operator. In particular, since the ship had a history of engine problems, the owners may bring a test case against the Member and the pilot, on the basis that they were aware of these problems and did not make adequate provisions.