When Can A Marina Limit Its Liability?

• Published date: 03 August 2020
• Subject Matter: Litigation, Mediation & Arbitration, Transport, Marine/ Shipping, Trials & Appeals & Compensation
• Law Firm: Quadrant Chambers
• Author: Mr Benjamin Coffer

In his judgment in Holyhead Marina v Peter Farrer [2020] EWHC 1750 (Admlty), handed down today, Mr Justice Teare considers the circumstances in which the owners of a dock or marina can limit their liability for damage to ships and other property. Benjamin Coffer appeared for the Claimant, instructed by Emma Rice of Clyde & Co.

The decision concerns section 191 of the Merchant Shipping Act 1995. Section 191 grants "the owners of any dock or canal" a right to limit their liability which is similar to the right of a shipowner under the 1976 Limitation Convention. The liability of the dock or canal owner is limited by reference to the tonnage of the largest UK ship which has been within "the area over which the authority or person discharges any functions" at any time within the last five years. "Dock" is given a wide meaning by section 191(9) to include "wet docks and basins, tidal docks and basins, locks, cuts, entrances, dry docks, graving docks, gridirons, slips, quays, wharves, piers, stages, landing places and jetties."

The right to limit under section 191 can be lost in the same way as the shipowner's right to limit under the 1976 Convention.

Section 191(4) applies Article 4 of the 1976 Convention, which provides that a person will lose the right to limit where "it is proved that the loss resulted from his personal act or omission, committed with the intent to cause such loss, or recklessly and with knowledge that such loss would probably result". As was common ground before the Judge, the knowledge referred to in Article 4 is actual knowledge: what is required is "actual knowledge, in the sense of, appreciation or awareness at the time of the conduct in question, that it will probably result in the type of damage caused. Nothing less will do."

The Claimant was the manager and operator of Holyhead Marina. On 1 and 2 March 2018, a severe storm known as 'Storm Emma' caused very substantial damage to the Marina, including the break-up and detachment of the floating elements of the Marina itself. The storm, and the resulting break-up of the Marina, caused loss and damage to a number of yachts and other ships which were present in and around the Marina at the time. The owners of the Marina sought a general decree that they were entitled to limit their liability by reference to the tonnage of the largest UK ship to have been within the Marina in the preceding 5 years.

The Defendants were the owners of yachts which were damaged by Storm Emma. They resisted the...