SHIPPING

Owner's statutory liability to undertakers - 'owner' not including chartererBP Exploration Operating Co Ltd v Chevron Shipping Co; Same v Chevron Tankers (Bermuda) Ltd; Same v Chevron Transport Corpn (conjoined appeals): HL (Lord Slynn of Hadley, Lord Hope of Craighead, Lord Clyde, Lord Hobhouse of Woodborough and Lord Millett): 18 October 2001The pursuer's terminal was damaged when an oil tanker moved off its berth in bad weather.

BP averred that it had subsequently been led to believe by the defender in the first action, Chevron Shipping, that it owned and operated the vessel.BP accordingly raised an action against Chevron Shipping, alleging breach of contract, negligence and liability under the Zetland County Council Act 1974 (c viii) applying section 74 of the Harbours, Docks, and Piers Clauses Act 1847.Subsequently, BP was told that the vessel was owned by another company in the same group, Chevron Tankers, and accordingly raised the second action against it.Chevron Tankers averred that the vessel had been the subject of a bareboat charterparty in favour of a third company in the group, Chevron Transport, and, further, that any obligation on the part of Tankers had prescribed under section 6(4) of the Prescription and Limitation (Scotland) Act 1973.

In a third action against Transport, Transport similarly claimed that any obligation on its part had prescribed.

The Lord Ordinary (2000 SLT 201) allowed a proof before answer in each action.

The First Division of the Inner House of the Court of Session (2000 SLT 1374) allowed reclaiming motions by the defenders.

The pursuers appealed.Colin Campbell QC and James Wolffe (both of the Scots bar) (instructed by Maclay Murray & Spens, Edinburgh) for the pursuers.

Angus Glennie QC (of the English and Scots bars) and Gerald Hanretty (of the Scots bar) (instructed by Henderson Boyd Jackson WS, Edinburgh) for the defenders.Held, allowing the appeals, that in terms of section 6(4)(a)(ii) of the 1973 Act a creditor 'refrained' from making a claim by reason of error induced by words or conduct of the creditor if he did nothing to enforce the obligation, whether as the result of a conscious decision not to do so or not; that he did not need to identify the date on which he would have made the claim but for the error; that once the error was removed the prescriptive period continued to run notwithstanding any difficulty the creditor might then find himself in in making the claim; that 'owner' in section 74 of the1847 Act meant 'proprietor' and did not include any charterer, including a bareboat charterer; and that nothing in the 1974 Act amended that meaning.

(WLR)