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Summary and Facts
Unity Ship Group SA v Euroins Insurance JSC (The Happy Aras”) [2026] 1 Lloyd’s Rep 151 concerns on the vessel grounded in the Mediterranean Sea on 20.3.2023 sailing from Ukraine to Turkey carrying soya beans. The master took over the watch at 20:00 and deviated from the passage plan. At the time of grounding, he was alone on the bridge after sending the lookout away. AIS data recorded the grounding at 20:58 at sailing speed, which was inconsistent with the deck and engine logs suggesting earlier avoiding action. General average was declared, and salvage, lightering and transshipment were completed in June 2023, with the adjustment finalized on 3.11.2023 in London. The owners then sought contribution from the cargo insurers, who refused payment based on unseaworthiness, alleging an incompetent master and failure to exercise due diligence in passage planning.
Legal Issues
- Whether the shipowner is entitled to recover general average contributions where the loss was caused by its own actionable fault (unseaworthiness).
- Whether the master’s conduct amounted to incompetence rather than mere negligence.
- Whether the cargo insurers were liable to pay general average contributions under the Average Guarantee.
Court’s Findings
- The shipowner cannot recover general average if the loss was caused by its own breach of duty.
- The court held that the master was incompetent because his actions were serious and repeated failure including;
- Deviating from passage plan
- Failing to keep proper lookout
- Ignoring warnings
- The loss was included breached of the seaworthiness duty.
- The loss was caused by the shipowner’s actionable faulty namely;
- Unseaworthiness due to incompetent master
- Failure to prove diligence.
- Therefore, the General average claim failed, and the cargo insurers were not liable to contribute as it caused by the shipowner’s fault.
Practical Implications
This judgment affirms the several principle of laws including:
- Shipowners must ensure masters are genuinely competent, not just certified.
- The navigational failures can amount to unseaworthiness and not just errors at the sea.
- The general average is failed if the loss caused by actionable fault.
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