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Deutsche Shell Tanker Gesellschaft MBH v. Placid Refining Co.

United States Court of Appeals for the Fifth Circuit
993 F.2d 466 (1993)

Written by Alex Ruskell, JD

Facts

A vessel owned by Deutsche Shell Tanker Gesellschaft MBH (Deutsche) (plaintiff) was transporting oil for Placid Refining Co. (Placid) (defendant) when it ran aground due to the failure of its radar system. The radar system failed because Deutsche had failed to keep it in working order. Even so, Deutsche brought a general-average claim against Placid, arguing that under a clause in its contract, Placid was still liable for contribution even if Deutsche had been negligent. Placid refused to pay, arguing that even if the contract had such a clause, as stated by Deutsche, Deutsche could not recover because the Carriage of Goods by Sea Act did not allow a vessel owner to bring a general-average claim if it failed to keep the vessel seaworthy. Deutsche sued, and the court ruled in Placid’s favor. Placid appealed.

Rule of Law

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Issue

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Holding and Reasoning (Politz, C.J.)

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A "yes" or "no" answer to the question framed in the issue section;
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The procedural disposition (e.g., reversed and remanded, affirmed, etc.).

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