Oil Spill – Shipbuilder and oil company’s liability revisit



Oil company and shipbuilder held jointly and severally liable for pollution damages and clean up costs due to an oil spill.

Extract

Astilleros may have been a reputable shipbuilder, but the fact remains that it built the AMOCO CADIZ with certain defects. Fully aware of these deficiencies, Amoco failed to correct them purely for economic advantage. The fact that the ABS repeatedly vouched for the AMOCO CADIZ's seaworthiness does not relieve Amoco of liability either. When a shipowner has prior knowledge of its vessel's defects, certification by a classification society does not establish the seaworthiness of a ship or the lack of negligence on the part of a shipowner.”

The evidence establishes that the grounding of the AMOCO CADIZ was a disaster waiting to happen. Amoco was aware of the ship's various problems -- any one of which could have led to the failure of the steering system -- yet chose to do nothing. The ship's high pressure hydraulic system needed to be kept fully-charged, free of contamination, and properly maintained. Amoco ignored manufacturers' instructions and failed to maintain the system in a reasonable manner, thus creating a foreseeable risk that the disaster would occur. If that were not enough, the oil giant allowed the AMOCO CADIZ to sail without a backup [**62] means of controlling the rudder in the event of a complete failure of the steering system. Apart from the initial failure of the steering gear system, the failure to train and instruct the crew in emergency procedures and to keep the isolation valves in working order are sufficient to hold Amoco liable for the damages caused by the Oil spill. Cf. Cerro Sales Corp. v. Atlantic Marine Enterprises Inc., 403 F. Supp. 562, 567 (S.D.N.Y. 1975) (Although equipment functioned properly, ship unseaworthy because crew inadequately trained to handle an emergency.)

Further reading: Amococadiz





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