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 July 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Legal

DryShips Reaches Agreement with Ocean Rig

DryShips Inc. (NASDAQ: DRYS), a global provider of marine transportation services for drybulk and petroleum cargoes, and through its subsidiary, Ocean Rig UDW Inc.

Cruise Industry Wins Key Norovirus Judgment

In what is being seen as a landmark decision, Hill Dickinson is the first law firm to have successfully defended a UK class action case involving a Norovirus outbreak onboard a cruise liner.

South China Sea Hotline in the Works

China and Southeast Asian nations have agreed to set up a foreign ministers' hotline to tackle emergencies in the disputed South China Sea, a senior official of

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Naval Architecture Navigation Offshore Oil Port Authority Salvage Ship Simulators Shipbuilding / Vessel Construction
rss | archive | history | articles | privacy | 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: 0.2709 sec (4 req/sec)