Court Blocks Shipowner’s Bid to Cap Liability for Tugboat Sinking
The High Court of Australia has ruled against CSL Australia, preventing it from using international maritime law to limit its financial liability for a collision that sank two tugboats in Tasmania.
The Incident
In January 2022, the bulk cement carrier MV Goliath, owned by CSL Australia, collided with two tugboats in Devonport, Tasmania. The impact caused both vessels—the York Cove and the Campbell Cove—to sink.
The Legal Dispute
CSL Australia sought to cap its liability for the wreck removal costs under the International Convention on Limitation of Liability for Maritime Claims. However, the High Court found that because Australia had opted out of a specific section of that convention, CSL cannot rely on it to limit its payout.
This decision clears the way for TasPorts, the state-owned port authority, to pursue full compensation. TasPorts is seeking over $20 million to cover cleanup and salvage operations.
What Happens Next
The case will now return to the Federal Court to determine the exact amount owed to TasPorts. Separately, a criminal case against CSL Australia for environmental harm remains pending in the Devonport Magistrates Court.