Ship operators successfully limit their liability to £100 per package

In a recent judgment handed down by the Federal Court of Australia, it was held that the owners and operator of the M.V. "Dijksgracht", could rely on a limitation of liability clause in their standard terms and conditions and limit their liability to £100 per package. The implication of this decision is that, if the owners and operators are ultimately liable for the alleged damage, they will be able to limit their liability to £300 (for three packages), rather than approximately EUR1.2 million, being the full amount of the claim.

The facts

This case concerned a shipment of pontoons (or "breakwater units") from Cork, Ireland to Geelong, Australia where they were to be installed at the Royal Geelong Yacht Club. The consignee, Poralu Marine Australia, alleged that the cargo was loaded on board the vessel in sound condition and that three pontoons were found to be damaged when the cargo was discharged.