Liability of Classification Society for Negligent Misrepresentation

Tuesday, September 23, 2003
The U.S. Court of Appeals for the Fifth Circuit ruled that a classification society may be liable to a third party for negligent misrepresentation of a ship’s condition. In the instant case, plaintiff agreed to purchase a ship if, among other things, the ship possessed a current class certificate free from any outstanding recommendations. At the direction of the owner, defendant class society surveyed the ship and issued the necessary certificate. After purchasing the ship, plaintiff discovered numerous deficiencies. Plaintiff sued defendant class society to recover the costs of repairs. On appeal, the court held that liability of class societies must be carefully considered. In this case, though, the class society knew that plaintiff would rely on the results of its survey. Thus, the class society owed a legal duty to plaintiff to perform its obligations in a professional manner. Otto Candies, LLC v. Nippon Kaiji Kyokai Cor
Maritime Reporter March 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Legal

'Run to Remember' by USCG Foundation

The Coast Guard Foundation, a non-profit organization committed to the education and welfare of Coast Guard members and their families, announced this year’s

Salvage, Wreck Removal Beset with Chronic Problems

The basic nature of maritime casualties, salvage and wreck removal has evolved rapidly over the last few years. Ships and offshore constructions have become more technologically elaborate,

JIT Transit Slots Reduced at Panama Canal

The Panama Canal has experienced an unusual increase in the number of vessels awaiting transit during the past few weeks. Several measures have been implemented to reduce the backlog,

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Navigation Offshore Oil Salvage Ship Electronics Ship Simulators Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1228 sec (8 req/sec)