Shipping firms fire broadsidesA war of words has broken out between two top shipping law firms after Ince & Co accused Lawrence Graham of an 'oversight' in disclosure which ultimately led to Inces winning a landmark case.The High Court last week ruled that a parent company - the Latvian Shipping Company (Latco), represented by Lawrence Graham - was liable for damages because it induced its offshore subsidiary to breach contracts to build reefer vessels with the Gdansk Shipyard, represented by City firm Ince & Co.The $60 million (41 million) claim against Latco and its Liberian subsidiary, Latreefers, related to a contract between Latreefers and the shipyard to build six reefer vessels.

After the High Court hearing in May 2000, according to Ince & Co, it became aware of the existence of what turned out to be a crucial contract between Latco and Capco, the manager of Latreefers.'Although it had been in the possession of Latco's solicitors for some years,' an Ince & Co press release said last week, 'this contract had not been disclosed in the Gdansk litigation due to an "oversight".' Mr Justice Thomas allowed the document in post-trial, saying: 'There was in my view a breach of thediscovery/disclosure obligations.'Lawrence Graham partner Michael Lax said he 'took exception' to the suggestion that there had been an oversight, especially as it implied impropriety.The document was referred to in the trial bundles, he said.

'If the hearing hadn't gone so badly for Inces, they wouldn't have asked for it,' Mr Lax said.

'They were desperately searching around afterwards for something to rescue their case.'It was only an oversight once the document became relevant, he argued, and it only became relevant after the hearing.Ince & Co partner Steven Fox said he had a specific discovery order on the funding of Latreefers; 'this document related to the funding of Latreefers but it wasn't disclosed', he said.

He thought the oversight 'unfortunate but not deliberate'.

Mr Lax denied that that the document related to funding.

A decision on costs and assessment of damages is expected later this month.Neil Rose