SOUTH AMERICAN SHIP ARREST
Following a voyage to South America, cargo receivers commenced an action against the ship owner for damage to cargo.
The ship owner’s P&I Club appointed its local correspondent (a Member of ITIC) to arrange and monitor defence proceedings. After eight years the receivers won the action and the local courts provided for the arrest of four named ships from the owner’s fleet. Two years later, a ship which belonged to the same owner but was not on the cour t’s list called in the jurisdiction, and at the request of the cargo receivers the por t authorities detained her.
Following the arrest, it emerged that the P&I Club correspondent had not notified the owner’s P&I Club of the original judgement, which the owner claimed they would have appealed or settled had they known about it.
It was decided that the member would fund 50% of the owner’s losses.