Definitions
In these Rules, the following words are used with the meaning set out
below:
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“Vessel” |
means any ship, craft, machine, rig or platform whether capable
of navigation or not, which is involved in a collision. |
| “Collision” |
means any accident involving two or more
vessels which causes loss or damage even if no actual contact has
taken place. |
| “Claimant” |
means any person, corporate body or legal
entity to whom damages are due in respect of loss or damage
(excluding death and personal injury) as a result of a
collision. |
| “Damages” |
means the financial compensation payable to
the Claimant. |
| “Total Loss” |
means an actual total loss of the vessel or
such damage to the vessel that the cost of saving and repairing her
would exceed her market value at the time of the collision. |
| “Property” |
means cargo, goods and other thing on board
a vessel. |
| “Freight” |
means the remuneration payable for the
carriage by the vessel of property or passengers or for the use of
the vessel. |
| “Detention” |
means the period of time during which the Claimant is
deprived of the use of the vessel. |
RULE A
These Rules are available for adoption in cases where damages are
claimed following a collision. Their adoption does not imply an admission
of liability.
When a vessel is involved in a collision, these Rules shall apply to
the assessment of the damages. These Rules shall not extend to the
determination of liability or affect rights of limitation of
liability.
Subject to the application of the numbered rules the Claimant shall be
entitled to recover only such damages as may reasonably be considered to
be the direct and immediate consequence of the collision.
Subject to the application of Rule C and of the numbered Rules, damages
shall place the Claimant in the same financial position as he would have
occupied had the collision not occurred.
The burden of proving the loss or damage sustained in accordance with
these Rules shall be upon the Claimant. Damages shall not be recoverable
to the extent that the person against whom the claim is made is able to
show that the Claimant could have avoided or mitigated the loss or damage
by the exercise of reasonable diligence.
1. In the event of a vessel being a total loss, the Claimant
shall be entitled to damages equal to the cost of purchasing a similar
vessel in the market at the date of the collision. Where no similar vessel
is available, the Claimant shall be entitled to recover as damages the
value of the vessel at the date of the collision calculated by reference
to the type, age, condition, nature of operation of the vessel and any
other relevant factors.
2. Damages recoverable in the event
of a total loss shall also include:
- (a) Reimbursement of salvage, general average and other charges and
expenses reasonably incurred as a result of the collision.
(b)
Reimbursement of sums for which the Claimant has become legally liable
and has paid to third parties in respect of such liability, arising out
of the collision by reason of contractual, statutory or other legal
obligations.
(c) Reimbursement for the net freight lost and the value
of bunkers and ship’s gear lost as a result of the collision and not
included in the value of the vessel ascertained in accordance with Rule
1 above.
(d) Subject to reimbursement for any claim for loss of
freight under paragraph (c) above, compensation for the loss of use of
the vessel for the period reasonably necessary to find a replacement
whether the vessel is actually replaced or not. Such compensation to be
calculated in accordance with Rule II, less any interest which the
Claimant may be entitled to receive under Rule IV in respect of the said
period.
1. In the event of a vessel being damaged but not being a total
loss as defined in these Rules, the Claimant shall be entitled to recover
as damages:
- (a) The cost of temporary repairs reasonably effected, and the
reasonable cost of permanent repairs.
The cost of those repairs shall
include but not be limited to the cost of any necessary drydocking,
gasfreeing or tank cleaning, port charges, supervision and
classification surveys, together with drydock dues and/or wharfage, for
the time occupied in carrying out such repairs.
However, when the
collision damage repairs are carried out in conjunction with Owners’
work which is essential to the seaworthiness of the vessel or with
essential repair work arising out of another incident or are deferred to
and carried out at a routine docking, the damages shall include but not
be limited to drydock dues, wharfage and/or other time-based charges
only to the extent that the period to which such charges relate has been
extended by reason of the collision damage repairs.
(b) Reimbursement
of salvage, general average and other charges and expenses reasonably
incurred as a result of the collision.
(c) Reimbursement of sums, for
which the Claimant has become legally liable and has paid to third
parties in respect of such liability, arising out of the collision by
reason of contractual, statutory or other legal obligations.
(d)
Reimbursement for the net freight lost and the cost of replacing bunkers
and vessel’s gear lost as a result of the collision and not included in
the cost of repairs under Rule II 1(a).
2. Damages recoverable shall also include:
- (a) Subject to reimbursement for any claim for loss of freight under
Rule II 1(d), compensation for the net loss of earnings arising from the
collision. This compensation shall be assessed by establishing the gross
earnings of the vessel lost during detention, calculated by reference to
the vessel’s earnings or by reference to the earnings of comparable
vessels in the same trade and then deducting from the gross earnings the
operating costs which would normally have been incurred in order to
achieve the gross earnings, such as hire payable, crew and bunker costs,
port disbursements and insurance.
(b) Operating costs and expenses
actually incurred during detention, other than those included under Rule
II 1.
3. In the interpretation of Rule II 2, the following particular
provisions will also apply:
- (a) When detention occurs during the performance of a voyage
charterparty and such detention does not entail cancellation of the
charterparty, compensation shall be calculated by applying the average
net earnings on the two voyages prior to and the two voyages subsequent
to the detention.
When no reference to two prior and two subsequent
voyages is possible, the net earnings on other relevant voyages or if
there are no other relevant voyages on the voyage during which the
collision took place shall form the basis of compensation.
If in
consequence of such detention the charterparty is cancelled, and freight
remains unearned compensation shall include the net freight lost.
(b)
When detention occurs while the vessel is being operated on a liner
service, compensation for detention shall be assessed as follows:
i.
when detention occurs during the voyage which the vessel is performing
at the time of the collision by applying to the detention the net daily
earnings for that voyage, computed for the time the voyage would have
taken had the collision not occurred,
ii. when detention occurs other
than during the voyage which the vessel is performing at the time of the
collision, by applying to the detention the average net earnings on the
two voyages prior to and the two voyages subsequent to the detention.
When reference to two prior and two subsequent voyages is not possible,
the basis of the computation will be the net earnings on other relevant
voyages. If there are no other relevant voyages the compensation will be
assessed by reference to the net earnings of a similar vessel operating
in a similar trade.
(c) When detention occurs while the vessel is
performing under a time charter, compensation shall include the net loss
of hire during the detention. If in consequence of such detention the
charterparty is cancelled, compensation shall include the net hire which
would have been paid during the unperformed portion of the charter,
allowance being made for any actual net earnings during that
portion.
4. When collision damage repairs are carried out in conjunction
with Owners’ work which is essential to the seaworthiness of the vessel or
with essential repair work arising out of another incident or are deferred
to and carried out at a routine docking, damages shall include
compensation for detention only to the extent that the period under repair
is extended by reason of the collision damage repairs.
RULE III
Property on board
1. The Claimant shall be entitled to recover damages when
property has been lost or damaged in consequence of the collision.
2. In the case of property having a commercial value such
damages shall be calculated as follows:
- (a) If such property is lost, the Claimant shall be entitled to
reimbursement of the market value at the port of destination at the time
when it should have arrived, less any expenses saved.
When such
market value cannot be determined, the value of the property shall be
the shipped value plus freight and the cost of insurance if incurred by
the Claimant, plus a margin for profit assessed at no more than 10% of
the value of the property calculated as above.
(b) If such property
is damaged, the Claimant shall be entitled to damages equal to the
difference between the value of the property in sound condition at
destination and its value in damaged condition.
Where physical damage
to such property arises from the prolongation of the voyage following
the collision, the compensation shall be fixed on the same basis.
However, where the loss arises from a fall in the market during such
prolongation there shall be no right to damages.
3. In the case of
any other property the Claimant shall be entitled to recover:
(a)
Where the property has been lost or is irreparable: its value or the
reasonable cost of its replacement;
(b) Where the property is damaged
and can be repaired: the reasonable cost of repairs, but not exceeding
its value or the reasonable cost of its replacement.
1. Interest on damages is recoverable in addition to the
principal sum.
2. For claims under Rule I 1, interest shall
run from the date of the collision to the date of payment.
For all
other claims, interest shall run from the date the loss was sustained or
the expense was incurred to the date of payment.
3. Where
under Rule V the damages are to be calculated in Special Drawing Rights
(SDR), the rate of interest shall be the average London rate for three
months SDR linked deposits in the period that interest runs; otherwise the
rate of interest shall be ten per cent per annum.
Unless the parties have agreed to apply a specific currency in the
calculation of their damages the following procedure shall be
adopted:
- - losses or expenses shall be converted from the currency in which
they are incurred into Special Drawing Rights (SDR) at the rate of
exchange prevailing on the day the losses or expenses were
incurred;
- the final amounts due shall be calculated in SDR and the
balance due shall be paid to the Claimant in the currency of his choice
at the rate of exchange prevailing on the date of payment;
- where no
official SDR exchange rate is quoted for the currency, conversions to
and from SDR shall be made by reference to U.S. dollars.
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