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.
If you need more information on our legal updates, our Knowledge and Law News Division at lawnews@yhalaw.com.my would be pleased to assist.
Yew Huoi, How & Associates (Law Firm)
Advocates & Solicitors
No. 1, Jalan Riangria 6
Taman Desa Tiara, Off Jalan Klang Lama
58200 Kuala Lumpur
Tel: +603-7971 3191
Fax: +603-7972 9131
Email: enquiry@yhalaw.com.my
Website: https://yhalaw.com.my
©2026. YEW HUOI, HOW & ASSOCIATES. ALL RIGHTS RESERVED. The contents of this legal update are intended for general information only and should not be construed as legal advice or legal opinion. If you need further advice or explanation on the subject, please contact our firm. Please do not reproduce, transmit or distribute the contents therein in any form, or by any means as Legal Profession (Publicity) Rules 2001 restrict such circulation.
Note: This material is intended for general information with regard to the practice of YHA. This profile is not intended to create, and does not create a solicitor-client relationship. If you are interested in having YHA represent you, you must call or visit our office to enable us to discuss the legal matter with you. YHA reserves our right to decline any representation which is in contravention of the Legal Profession Act 1976 and/or the regulations therein.