Henrik Krogh Larsen (Larsen) was the owner of the Danish-flagged fishing boat Stjerne. Sealion Enterprises Ltd (Sealion) was a Liberian shipping line which owned the Maltese-flagged tanker Seaqueen. On 27 September 2017, the Stjerne collided with the Seaqueen off the northern coast of Denmark, where the Seaqueen lay at anchor with a cargo of crude oil.

After the collision, both the Seaqueen and the Stjerne sailed to port for repairs. In connection with the repairs, all of the Seaqueen’s tanks were cleaned except for one slop tank. Later, the slop tank was emptied, and all tanks were ventilated. In addition to the repairs, the Seaqueen underwent several intermediate surveys. Sealion initiated proceedings against Larsen regarding the damage caused to the Seaqueen as a result of the collision.

Sealion claimed that the collision was a result of faults committed by the master or crew of the Stjerne. Consequently, the Stjerne was solely liable for the damage caused by the collision of the ships. Furthermore, all incurred costs and losses were a direct, adequate and causal result of the collision, and therefore damage for which compensation was payable.

Larsen claimed that the collision was caused by the fault of both ships. Consequently, both ships were liable to make good the damages. Additionally, the Stjerne was not liable for the Seaqueen’s expenses for the intermediate survey, since they were a usual operational cost which the shipping line would have incurred regardless of the collision.

Held: Judgment against Larsen for DKK 191,917.70 within 14 days and the equivalent in DKK on the payment date of USD 277,309.29 or EUR 102,665.52, with a deduction of DKK 366,634, plus costs.

The Danish Merchant Shipping Act (the Act), s 161(2), which corresponds to art 4 of the Collision Convention 1910, provides that if two or more vessels are at fault, the liability of each vessel is in proportion to the degree of the faults respectively committed; provided that if, having regard to the circumstances, it is not possible to establish the degree of the respective faults, or if it appears that the faults are equal, the liability is apportioned equally.

The Maritime and Commercial High Court found that in this case the collision was solely caused by the fact that the watchman on the Stjerne fell asleep and that the warning alarm on Stjerne was switched off. Consequently, the Court did not find grounds to apportion liability for the damages caused to the Seaqueen according to art 4 of the Convention. The collision was exclusively caused by the fault of the Stjerne, and consequently Larsen was liable to make good all the damage caused by the collision under s 161(1) of the Act, which corresponds to art 3 of the Convention in providing that when damage is caused to a ship, goods or persons by collision between ships and the fault lies exclusively on the one side alone, the one who has committed the fault shall pay compensation for all the damage caused.

Concerning quantification of the harm, the Court found that the repair and ventilation of the tanks was entirely a result of the collision and that it was within the foreseeable consequences of such damage. Regarding the additional costs of the intermediate survey, the Court found that the Seaqueen would have incurred the costs of emptying the ship's slop tank in conjunction with the intermediate survey in any event. The costs related hereto should therefore be deducted from the total loss, as the Seaqueen would otherwise gain an enrichment due to the collision.