TasPorts suffers blow in $22m claim after Goliath crash at Devonport that sunk two tugs
A multimillion-dollar battle continues to wage on between TasPorts and the owner of the Goliath, a ship that crashed in the port of Devonport and sank two tug boats.
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A multimillion-dollar battle continues to wage on between TasPorts and the owner of a ship that crashed in the port of Devonport, with TasPorts now suffering a key loss in its $22 million claim.
On January 28, 2022, the Goliath, a cement carrier, crashed into the wharf and two tug boats, the York Cove and the Campbell Cove.
The tugs sank and emitted diesel fuel and other hydrocarbons into the Mersey River.
TasPorts lodged legal proceedings in the Federal Court of Australia against CSL, the owner of the Goliath, alleging breach of the contract under which the Goliath entered the port, plus negligence and public nuisance.
A newly-published Federal Court judgment has revealed the total amount TasPorts was suing CSL came to more than $22 million, plus interest – but the court has also dealt a huge blow to the amount TasPorts could ultimately be able to fight for.
The amount TasPorts has been suing for includes a wreck removal claim for about $17,245,743 – for the costs of removing and disposing of the hydrocarbons and the tugs, which had to be raised, removed, destroyed and delivered to a disposal contractor in Brisbane.
The amount also includes $2.17 million for the loss of the tugs, $114,869 for the loss of hydrocarbons, $2,958,595 for the hire of replacement tugs, and $117,152 for damage caused to the wharf.
The judgment reveals the spilt oil was not cargo – it was bunker fuel and lubricant for the operation of the tugs.
The proceedings have been held up because CSL started a limitation proceeding – a court action to limit its liability under maritime laws.
TasPorts filed a cross-claim arguing CSL had no right to limit any of its claims, or at least could not limit its wreck-removal claims.
Justice Angus Stewart noted Viva Energy was also suing CSL for $2,458,043 over economic loss for interruption of its business caused by the allision.
He said neither the quantum or the liability of the TasPorts or Viva claims had yet been determined, but found CSL had the right to use maritime laws to limit its liability for wreck removal.
The ruling could hugely affect the dollar payout TasPorts can sue the ship owner for.
“The right of shipowners to limit their liability with reference to the size of their ship has a very long history,” Justice Stewart said, noting the concept dated back to 14th century Spain.
“ … the Limitation Act and its antecedents have offered significant rights to shipowners in Australia for a very long time. Parties such as TasPorts and its customers for port services can be expected to know that shipowners have that important right.”
The limitation rules are intended to encourage international trade by way of sea carriage.
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Originally published as TasPorts suffers blow in $22m claim after Goliath crash at Devonport that sunk two tugs
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