Valuing Shore-Side Damage After An Allision: Key Principles For Owners, Charterers, And Underwriters

When a vessel strikes a dock, dolphin, or other structure, the first question clients ask is "How much is this going to cost?" General maritime law answers by aiming for restitutio in integrum—placing the owner in the position it would have occupied but for the casualty. This principle underpins the assessment of damages in allision cases, ensuring that compensation is neither punitive nor a windfall but rather a fair restoration. Recent decisions and established case law provide a framework for how courts approach these calculations, balancing the interests of property owners, vessel operators, and insurers.

Several issues are essential considerations in valuing allision damages, including: (1) whether a structure is a total or partial loss; (2) the pre-allision condition of the property compared to the post-repair condition; and (3) the extent of loss of use and mitigation costs.