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Settlement agreed for ship designer in hull cracking case

Owners were suffering from financial difficulties International Transport Intermediaries Club (ITIC), managed by Thomas Miller, has highlighted the level of exposure to liability which naval architects can face, especially in today's financially troubled shipping industry.ITIC cites the case of a firm of naval architects instructed to design a vessel to be used for a new ferry service. When the vessel was completed, the owners alleged that it suffered from structural inadequacies, which included continued cracking of the hull. As a result, they claimed, it could not perform in certain weather conditions as they had requested it should do, even following repeated repairs.At one point, the local maritime authority had to reduce the number of passengers which the vessel could safely carry. Eventually, the ferry service was completely suspended and the owners started legal action against the naval architects in the sum of $600,000. This covered the cost of repairs, loss of use, loss of profits and diminution of value of the vessel. Expert evidence was obtained on behalf of the naval architects, but it was not particularly helpful to the defence.It became apparent that the owners were suffering from financial difficulties, in part due to the fact that the ferry ...

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