July 23, 2008

Grounding of Alaskan Vessel Fault of Captain

1011527_cruise_ship_3.jpgThe National Transportation Safety Board ("NTSB") has determined that the reason that the Empress of the North ran aground on July 23, 2008 was the negligence of the captain. The captain allowed an inexperienced, newly licensed junior third mate to the bridge watch from midnight to 4 a.m.. The NTSB commented that the decision of leadership on the vessel failed to consider every option as critical decisions were made. The NTSB recommended that the Passenger Vessel Association ("PVA") inform its members about the accident and the circumstances giving rise to the casualty.

July 18, 2008

Department of Transportation Offers Salvage Bonus

On Friday, the Department of Transportation and Communications (DOTC) offered a bonus to a salvage contractor to retrieve industrial fuel and dangerous chemicals inside the sunken M/V Princess of the Stars. The ship sank somewhere near Roblon Province. The company Titan Salvage, is owned by Crowley Maritime Corporation. Crowley Maritime Corporation is the largest maritime service corporation in the world with its headquarters in Florida. Government officials are concerned that the sunken vessel could cause considerable environmental damages owing to the toxic chemicals aboard. Because of the potential harm the DOTC is considering tightening regulatory controls on freight forwarders.

July 14, 2008

Factory Trawler Owner Seeks Limitation of Liability

The owners of the ill fated fishing vessel the Alaska Ranger have begun legal maneuvering to avoid liability for the deadly sinking in March. The lawyers for the Fishing Company of Alaska ("FCA") have invoked an archaic piece of maritime law that limits the amount of money that can be sought by survivors or the families of the dead. In order to prevail, the owner of the vessel must show that the vessel was seaworthy, properly manned and equipped, and that the owner had no prior knowledge of the problems that ultimately sunk the ship. Crew members have related stories of drunk officers, power struggles, water below deck and leaking watertight doors. Given these facts, it appears unlikely that the defendant will be successful in its efforts to limit liability.

July 13, 2008

Punitive Damages in Maritime Law

The United States Supreme Court ruled recently on several issues related to maritime casualty. The opinion, Baker v. Exxon Shipping Co., deals with the availability of punitive damages under maritime law. Prior to this decision, the Supreme Court had yet to directly rule on whether punitive damages are appropriate under some circumstances. Before this ruling, it was generally believed that punitive damages can be awarded for tort damage to property. Exxon v. Baker looked also to studies of punitive damage awards in civil matters and found that there was a median ratio of 1:1. The Court held that the conduct of Exxon Shipping Co. was not one of "exceptional blameworthiness." Under these circumstances a 1:1 ratio is a fair upper limit in such maritime cases.