A tanker flying the flag of the Republic of Azerbaijan came into contact with a breakwater in Neka, Iran, on 12 October 1995. The owner of the breakwater, the Ministry of Petroleum of Iran, brought an action demanding IRR 430,200,000 for the damage caused to the breakwater. The plaintiff claimed that the damage was caused due to the negligence of the tanker's master and officer of the watch.

The first instance Court found for the plaintiff. Relying on arts 331 and 335 of the Civil Code and arts 162 [based on art 1 of the Collision Convention 1910], 168, and 169 of the Maritime Code, the Court ordered the defendant to pay IRR 430,200,000.

The judgment of the first instance Court was in the absence of the defendant (Raye-e Ghiaby), ie the defendant did not appear for the proceedings, did not submit a written defence, and did not actually know about the proceedings. The defendant subsequently filed an objection to the judgment. The Court, holding that the main cause of the damage was the fault and negligence of the defendant's tanker, rejected the defendant's claim.

The defendant appealed to the Court of Appeal of Tehran Province.

Held: The amount of the damages is decreased by 30 per cent.

According to the expert opinion announced in the first instance hearing, the tanker's master made a valiant effort to prevent damage to the breakwater during the dangerous storm inside the basin, but it was unsuccessful. This effort reduced the master's fault by 30 per cent.

The first instance Court did not consider the expert opinion in its decision despite its being invoked by the parties. The appeal is upheld as to 30 per cent of the damage sustained by the breakwater. The amount of damages is thus reduced to 70 per cent of the amount stated in the first instance judgment.