This page contains a Flash digital edition of a book.
A case in point is a naval architect who


entered into an agreement in 2007 to design a jet-boat to be operated in Australia. Te company which built the boat did not have insurance. The vessel was delivered in 2008 and in early 2009 the engine mounts collapsed and various other problems occurred which rendered the vessel unable to operate. In 2010, proceedings were issued against


the boat builder and the naval architect. Te principal allegation involving the design related to the number of engine mounts installed. However, a comprehensive survey report found that the cause of the collapse was excessive use of the engine by the operator, rather than the mounts installed. Te report further stated that the cost of rectifying the mistakes attributed to the design was A$20,000 (US$20,800). It later transpired that the total claim was for A$673,000 (US$ 700,000).


Mediation took place but the matter


was not resolved. The builder advised that it could only contribute A$40,000 (US$41,000) towards the claim. Te case went to trial and, as legal costs continued to rise A$150,000 (US$156,000) (at this point) the decision was taken to make an offer to settle. The naval architect, with the support of ITIC, made an offer of A$100,000 (US$104,000) which was not accepted and eventually a figure of A$300,000 (US$312,000) was agreed and settled, along with legal costs which totalled A$230,000 (US$239,000) . Te case is an example of an instance


where, even though the architect was not negligent, as the builder did not have sufficient cover, the architect was forced to contribute more in settlement. Another example was a naval architect who was contracted to carry out


the external design of a yacht newbuilding. Aſter the


yacht was completed and set sail, a guest fell down a small flight of internal stairs during the course of an onboard party, sustaining back and hip injuries as a result. The guest sued, among others, the


yacht owner, builder, surveyor and two naval architects. Legal counsel was appointed to defend the Australian naval architect. Despite the fact that any design fault involving the interior of the vessel bore no relation to the work carried out by the insured architect, the parties were jointly sued in the amount of US$1 million. Lawyers spent over US$150,000 - and seven years - trying to obtain a judgment removing the naval architect from proceedings, a costly event for something that was not even the architect’s fault. Te moral of the story is that you don’t


have to make a mistake to be sued. In such cases, insurance can help. NA


TANABE Marine Compressors Superior Compressor Design & Development


Strict Quality Control Attentive Service Strict Quality Control


Attentive Service


LPG Cargo Compressor


info@tanacomp.co.jp The Naval Architect October 2012 www.tanacomp.co.jp 23





In-depth


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68  |  Page 69  |  Page 70  |  Page 71  |  Page 72