Admiralty Law: The North Star Case - Essay Example

? Admiralty Law Admiralty Law Facts On February an oil tanker known as The North Star operated and owned by Poseidon Ltd, is grounded a mile near the port of Swansea. The tanker broke up and started leaking crude oil into the sea. The leak is then washed up on the beaches surrounding Swansea. The tankers’ grounding was wholly caused by Jeremy’s negligence, a pilot employed by SHA, Swansea Harbor Authority. Due to heavy seas, salvage attempts for the vessel became difficult. As a result of this, it took The Ocean Salvation crew about four days to reach the grounded tanker. At this point, more than 10,000 tonnes of crude oil had spilled into the sea. The Ocean Salvation is operated by Seamorgan Salvage Solutions Ltd. Under terms of LOF 2011, the representatives of Seamorgan Salvage Solutions agreed to salvage The North Star oil tanker on 5 February 2012. Interestingly, Seamorgan Salvage Solutions Ltd is a company that specializes in matters related to environmental protection; therefore, it could not salvage any property from the tanker – The North Star, which ultimately sinks on 15 February 2012. However, the salvage company is able to ensure that the remaining 40,000 tonnes did not escape the tanker and spill over to the sea. The residents of the port of Swansea are significantly affected by the substantial damage caused by the oil spillage. The owner of the Tawe Hotel, Osian suffers substantial damages and losses in the days following the oil spill. All the guests in his hotel cancel their holidays in February and March. The losses he suffered in terms of revenue amounted to ?50,000. A local cockle angler – Huw, suffers substantial losses following the step by the UK government to enact the Emergency Restrictions Act in 2012, which banned the harvesting and sale of cockles within the area of the oil spill. This ban lasted close to 18 months and Huw having no other alternative source of income suffered significantly. Another local resident, the owner of Fantastic Fauna Ltd – Dewi who runs boat trips to observe the harbor seals found in Swansea. Due to the oil spills, scientist observed that the seals had been permanently displaced from Swansea and had instead settled in Cardiff. Due to the oil spills and consequent closure of hotels in Swansea area such as Tawe, which was the biggest client of Swansea Suds – a company that makes soap – closes down. Aled, the owner of that company suffers substantial losses of over ?35,000 per annum. In addition, the Ocean Salvation collides with Net Gain a few days later on its way to Portsmouth. This collision is attributed to the excessive speed of the Ocean Salvation. However, the Ocean Salvation has left the UK waters, is in Brazil for another rescue operation, and has been there since 28 February 2012. Seamorgan Salvage Solutions was consequently sued by Tony and Steve, former crewmembers of the Ocean Salvation, for unpaid wages. Seamorgan Salvage Solutions fails to appear in court to contest the claim. It is subsequently ordered to compensate Tony and Steve a sum of ?10,000 each on March 1, 2012. Ocean Savior, a vessel owned and operated by Seamorgan Shipping Solutions, docks at the Swansea port on March 12, 2012. According to Gareth, Seamorgan Shipping and Seamorgan Salvage Solutions are essentially owned and operated by the same directors. Issue The grounding of the North Star in the waters a few miles away from the Swansea port lead to oil spillage into the sea that caused a substantial damage and significantly affected the lives of the locals and their businesses. From the facts discussed above, it is evident that several parties suffered due to the oil spillage that resulted from the grounding of the tanker – The North Star – owned and operated by Poseidon Ltd. The issue in this case is whether the affected parties, in this case, Osian – the owner of Tawe Hotel, Huw – a local cockler, Dewi – the owner of Fantastic Fauna Ltd, and owners of other hotels in Swansea that were closed down, should file legal claims of damages. If yes, whom should they sue or file the claims against, given that the grounding of the tanker was solely a mistake of Jeremy an employee of Swansea Harbor Authority, the tanker was owned by Poseidon Ltd, Rescue operations was done by Seamorgan Salvage Solutions, and the ban was enacted by the UK government. Under what maritime or admiralty laws and grounds should these claims be filed and what procedures should the aforementioned parties follow. Another issue that arises concerns the Steve and Tony case against the Seamorgan Salvage Solutions. Given that Seamorgan Salvage Solutions and Seamorgan Shipping according to Gareth are operated by similar directors, should they be held responsible for the wage cases and any other cases filed against Seamorgan Salvage Solutions. Finally, how should Net Gain proceed in filing damages claims against Seamorgan Salvage Solutions for the collision caused by over speeding of one of its vessels – The Ocean Salvation? Rules Given that this case revolves around events and happenings that occurred in the sea, most of the rules that would be followed will be Maritime, or admiralty laws of the United Kingdom. Maritime or Admiralty law refers to distinct laws both procedural and substantive that govern shipping and navigation. These laws are concerned with waters, shipping, commerce, seamen, navigation, wharves, docks, towage, and piers; maritime liens; insurance; recreation and canals as well as piracy. These laws provide various remedies and rights to those who suffer injuries within its jurisdiction. However, these remedies and rights may be applicable differently depending on the status of whoever is making the claim. Normally, the rights and remedies for a crewmember are quite different from those applicable to a passenger. For this reason, it is important that a good understanding of the admiralty law is required before any claims can be filed. There are statutes that put forward the available damages for those that suffered both economic and physical injury resulting from the oil spillage and govern the steps and regulations that claimants must follow in order to recover damages. Oil Pollution Act of 1971 is one of the most significant of these statutes and is concerned with economic damages. In this case, it is applicable with respect to the economic damages experienced by the locals of port Swansea1. This act was designed to ensure that adequate resources for expansion of extent compensable damages and response to spillages are available to the victims of the spillage. This acts sets forth very strict liability for several damages that are as a result of the oil spill. These are damages such as the costs incurred on complete removal of the spill by either an individual or the government. In addition, damages associated with natural resource, which includes the restoration costs, replacement costs, or the acquisition of the equivalent of the affected natural resource2. Other damages set forth by this act include property damages including direct economic loss due to destruction of property, and direct injury, loss of use for survival (subsistence use), loss of government revenue, and impairment of capacity to earn or loss of profits. Another rule or statute applicable in this case includes the Limitation Liability Act, which defines that damages that are there against the owner of a vessel3. The other admiralty rule or statute that applicable to this scenario is the Merchant Shipping Act 1894, which is concerned with protecting oil spillage acts done under certain powers and relates to salvage and removal of wrecks by conservancy, lighthouse, or harbor authorities4. It protects such persons from being convicted for damages if and when the purpose of their actions were either to prevent danger or obstruction to navigation of any stranded, abandoned or ground vessel5. If their acts were not aimed at prevention of danger or obstruction of navigation, they may be liable for conviction for damages. Another admiralty law that is enforceable in this case scenario is the Merchant Shipping Act 1995 section 59 that is concerned with the concerted neglect and disobedience of duty by a crewmember or a seaman. Under this act, a seaman or a crewmember who is under employment of a UK ship disobeys lawful commands or neglects his or her duty while at sea suffers the risk of being discharged and is subsequently liable to a fine not more that the statutory maximum or summary conviction and imprisonment for a term not more than two years6. It is worth noting that, in the absence of any governing rules, general admiralty laws will and shall prevails over any other claims. Analysis and Advice It is evident that admiralty laws provide a wide range of procedural and substantive, which governs shipping and navigation. These laws are concerned with waters, shipping, commerce, seamen, navigation, wharves, docks, towage, and piers; maritime liens; insurance; recreation and canals as well as piracy. With regard to the facts provided and the rules discussed herein, all the parties affected by and the events that followed the grounding of the North Star have a legal framework and basis in which claims can be made. For instance, owner of the Tawe Hotel, Osian and all the other hoteliers within the port of Swansea who were affected by the oil spillage can sue the owners of the North Star, Poseidon Ltd for economic damages. Subsequently, Huw – a local cockler, Dewi – the owner of Fantastic Fauna Ltd that runs boat trips to observe the harbor seals found in Swansea, under the Oil Pollution Act of 1971 can sue Poseidon Ltd for impairment of capacity to earn or loss of profits and loss of use for survival (subsistence use) respectively. Given that the grounding of the tanker was solely a mistake of Jeremy an employee of Swansea Harbor Authority, he can be sued by the government under the Merchant Shipping Act 1995 for neglect of duty and could face up to two years imprisonment or a fine of not more that the set maximum or both7. However, being an employee of the Swansea Harbor Authority, he can defend himself under the Merchant Shipping Act 1894, which is concerned with protecting oil spillage acts done under certain powers and relates to salvage and removal of wrecks by conservancy, lighthouse, or harbor authorities8. However, he will suffer the burden of proving beyond any reasonable doubts that his actions that led to the grounding of the North Star were purely for the prevention of damage or obstruction of navigation. Under the same act, Merchant Shipping Act 1995, the Seamorgan Salvage Solutions can file claims against Poseidon with regard to compensation based on their efforts of salvaging the North Star. At the same time, Net Gain can also file damage claims against Seamorgan Salvage solutions as regards to the collision caused by the over speeding Ocean Salvation. Conclusion There are several enacted statutes that offer remedies for damages resulting from admiralty problems such as oil spill, sea accidents, piracy, and insurance, etc. In this case scenario that involved very many parties suing and being sued, a comprehensive legal framework has been established that ensures that almost all the claims have been addressed. However, some claims may fall short of the provided statutes. In such scenario or case, the general maritime laws come into play. All the parties affected in this scenario can go ahead and file legal claims against the responsible parties. Reference D. Rhidian Thomas, F.J.J.C., 1996. The modern law of marine insurance. Virginia: The University of Virginia. Elihu Lauterpacht, C.J. & Greenwood, A.G.O., 1998. International Law Reports. Cambridge University Press. Force, R. & Davies, M., 2005. Jurisdiction and forum selection in international maritime law: essays in honor of Robert Force. Illustrated ed. Kluwer Law International. Hill, C.J.S., 1984. Maritime Law. Virginia: Oceana Publications. Jackson, D.C., 1985. Enforcement of maritime claims. London: Lloyd's of London Press, Legal Pub. & Conferences Division. Lucas, J.D., 2003. Admiralty: cases and materials. 5th ed. Foundation Press. Mandaraka-Sheppard, A., 2001. Modern Admiralty Law:With Risk Management Aspects. Reprint ed. Cavendish. Maraist, F.L., 1988. Admiralty in a nutshell. West Pub. Co. Maritime Information, n.d. The Basics of Admiralty Law. [Online] Available at: HYPERLINK "http://www.maritimeinformation.co.uk/maritme-law/the-basics-of-admiralty-law/" http://www.maritimeinformation.co.uk/maritme-law/the-basics-of-admiralty-law/ [Accessed 26 March 2012]. Meeson, N., 1986. The practice and procedure of the Admiralty Court: forms and precedents. London: Lloyd's of London Press. Meeson, N., 1993. Admiralty jurisdiction and practice. London: Lloyd's of London Press. Nicholas J. Healy, D.J.S., 2007. Handbook of Maritime Laws and Forms. 4th ed. California: Thomson/West. The National Archives, n.d. Merchant Shipping Act 1995. [Online] Available at: HYPERLINK "http://www.legislation.gov.uk/ukpga/1995/21/section/270" http://www.legislation.gov.uk/ukpga/1995/21/section/270 [Accessed 26 March 2012]. The National Archives, n.d. Prevention of Oil Pollution Act 1971. [Online] Available at: HYPERLINK "http://www.legislation.gov.uk/ukpga/1971/60/crossheading/general-provisions-for-preventing-oil-pollution" http://www.legislation.gov.uk/ukpga/1971/60/crossheading/general-provisions-for-preventing-oil-pollution [Accessed 26 March 2012]. Read More