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ARTICLE · 08 JUNE 2009

Indemnity Clauses v Exclusion Clauses

This recent case concerned an oil rig supply vessel that was badly damaged while berthed in Peterhead Harbour.

United KingdomLitigation, Mediation & Arbitration

This recent case concerned an oil rig supply vessel that was badly damaged while berthed in Peterhead Harbour.

The charterers of the vessel (ASCO) instructed Enviroco to clean out some holding tanks.  While they were finishing the cleaning, ASCO spoke to the master of the vessel about moving it to another location in the harbour and the engines were switched on in preparation for the move.  At the same time, employees of Enviroco had disconnected their hosepipes, allowing oil to flow through the pipes used in the cleaning process and into the now hot engine room.  A fire broke out - tragically resulting in a fatality and badly damaging the vessel. 

The vessel owner (Farstad) subsequently brought an action against Enviroco in respect of the damage caused to their vessel on the basis that their employees had acted negligently in carrying out their cleaning duties.  Enviroco sought to bring ASCO into the action on the basis that they were partly responsible for

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