High Court sides with TasPorts over 2022 Mersey River tugboats sinking by Goliath

TasPorts is trying to sue the owner of the Goliath for $22 million in compensation to cover the salvage, clean up and damage. (ABC News: Monte Bovill)

A shipping company’s attempt to avoid paying millions of dollars to Tasmania’s port authority over an incident that resulted in the sinking of two tugboats in Devonport has been overturned by Australia’s High Court.

In January 2022, the bulk cement carrier MV Goliath arrived at the port in north-west Tasmania and subsequently crashed into the docked tugboats York Cove and Campbell Cove, causing them to sink.

The Goliath was travelling from Melbourne to Devonport when it hit the docked tugboats. (Supplied: TasPorts)

The subsequent clean-up of diesel and other pollutants that spilled into the river was extensive, and the salvage of the tugs took more than six months.

State-owned TasPorts sued the ship’s owner CSL Australia for more than $20 million in compensation over the incident.

Today’s High Court ruling means that case will now continue before the Federal Court.

Ship company seeks to limit cost

The incident unfolded as Goliath attempted to make a tight turn in Devonport’s Mersey River.

In May 2022, an Australian Transport Safety Bureau (ATSB) review into the event found an incorrect steering setting had been used by the ship, which caused it to unexpectedly speed up before it made contact with the tugs.

Around the same time, TasPorts began legal action against CSL Australia in the Federal Court, seeking around $22 million, which included more than $17 million in costs for the river clean-up and salvage and disposal of the tugs.

Tugboats York Cove and Campbell Cove were docked at the time of the incident. (Supplied: ATSB)

However, a judge in the Federal Court sided with the shipping company, which argued that its liability for wreck removal costs could be limited under an international maritime convention.

The convention on the Limitation of Liability for Maritime Claims allows claims to be limited in certain circumstances, and this case was affected by an Australian decision to not adopt a section of the convention that limits liability for the raising, removal and destruction of a sunk or wrecked ship.

TasPorts won an appeal before the Full Court against the single Federal Court judge’s ruling, which CSL then appealed to the High Court.

Today, the High Court ruled in TasPorts favour, saying that as Australia had opted out of the relevant parts of the convention, CSL Australia was not able to rely on them in arguing for limited liability.

“The High Court unanimously dismissed the appeal,” it said in a statement.

CSL was not trying to avoid liability entirely but limit it to a figure of around $15 million.

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The moment the cement carrier Goliath crashed into the tugboats was captured on video.

Maritime lawyer Chris Keane, who acted for TasPorts, said today’s ruling on limited liability means his client’s initial claims will return to the Federal Court.

“The proceedings continue because there’s a dispute as to precisely how much is owed,” he said.

“The rest of the proceeding has been sort of in a holding pattern while (the limit liability) was resolved.”

Mr Keane said today’s ruling would have no bearing on whether TasPorts is ultimately successful in its pursuit of compensation.

But, he said, this ruling would provide greater certainty for port authorities and insurance companies in the future.

“We can now feel pretty confident that claims for wreck removal, certainly under Australian law, will fall outside the limitation fund.”

Environmental charges in local court

In a separate case, CSL Australia has been charged with unlawfully causing serious environmental harm and causing environmental nuisance over the incident.

The charges were listed in the Devonport Magistrates Court for the first time in April.

The prosecution has alleged the crash caused the tugs to sink and release hydrocarbons into the Mersey River.

The York Cove out of the water after being sunk. (ABC News)

The ATSB report said an estimated 69,000 litres of diesel and other oil were on board the tugs when they were hit.

It is also alleged that the release of hydrocarbon pollutants into the river unreasonably interfered with, or was likely to interfere with, a person’s enjoyment of the environment.

That case has been adjourned for plea in June.